Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 29, 2015 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | RGEN | |
Entity Registrant Name | REPLIGEN CORP | |
Entity Central Index Key | 730,272 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 32,943,553 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 48,084 | $ 35,363 |
Marketable securities | 20,790 | 23,090 |
Accounts receivable, less reserve for doubtful accounts of $52 and $41, respectively | 10,321 | 7,760 |
Other receivables | 57 | 240 |
Inventories | 15,899 | 12,384 |
Deferred tax asset, net | 5 | 5 |
Prepaid expenses and other current assets | 1,123 | 2,104 |
Total current assets | 96,279 | 80,946 |
Property, plant and equipment, at cost: | ||
Leasehold improvements | 13,258 | 9,108 |
Equipment | 13,513 | 13,116 |
Furniture and fixtures | 2,722 | 2,270 |
Construction in progress | 228 | 3,848 |
Total property, plant and equipment, at cost | 29,721 | 28,342 |
Less: Accumulated depreciation | (15,748) | (13,816) |
Property, plant and equipment, net | 13,973 | 14,526 |
Long-term marketable securities | 1,651 | 3,550 |
Intangible assets, net | 13,154 | 14,636 |
Goodwill | 14,346 | 14,185 |
Restricted cash | 450 | 450 |
Total assets | 139,853 | 128,293 |
Current liabilities: | ||
Accounts payable | 2,951 | 3,863 |
Accrued liabilities | 12,758 | 6,819 |
Total current liabilities | 15,709 | 10,682 |
Other long-term liabilities | $ 2,693 | $ 5,879 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Preferred stock, $.01 par value, 5,000,000 shares authorized, no shares issued or outstanding | ||
Common stock, $.01 par value, 80,000,000 shares authorized, 32,943,553 shares at September 30, 2015 and 32,774,374 shares at December 31, 2014 issued and outstanding | $ 329 | $ 328 |
Additional paid-in capital | 201,657 | 198,064 |
Accumulated other comprehensive income (loss) | (8,728) | (5,773) |
Accumulated deficit | (71,807) | (80,887) |
Total stockholders' equity | 121,451 | 111,732 |
Total liabilities and stockholders' equity | $ 139,853 | $ 128,293 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts receivable, reserve for doubtful accounts | $ 52 | $ 41 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 32,943,553 | 32,774,374 |
Common stock, shares outstanding | 32,943,553 | 32,774,374 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue: | ||||
Product revenue | $ 19,814 | $ 15,152 | $ 62,088 | $ 45,038 |
Royalty and other revenue | 126 | 2,117 | ||
Total revenue | 19,814 | 15,278 | 62,088 | 47,155 |
Operating expenses: | ||||
Cost of product revenue | 8,444 | 6,931 | 25,103 | 19,938 |
Cost of royalty revenue | 0 | 0 | 0 | 0 |
Research and development | 1,490 | 1,650 | 4,309 | 4,281 |
Selling, general and administrative | 5,959 | 4,471 | 18,226 | 12,180 |
Contingent consideration - fair value adjustments | 233 | 10 | 2,114 | 126 |
Total operating expenses | 16,126 | 13,062 | 49,752 | 36,525 |
Income from operations | 3,688 | 2,216 | 12,336 | 10,630 |
Investment income | 37 | 64 | 92 | 250 |
Interest expense | (8) | (12) | (24) | (38) |
Other income (expense) | (38) | (14) | (175) | 54 |
Income before income taxes | 3,679 | 2,254 | 12,229 | 10,896 |
Income tax provision | 1,141 | 788 | 3,149 | 2,327 |
Net income | $ 2,538 | $ 1,466 | $ 9,080 | $ 8,569 |
Earnings per share: | ||||
Basic | $ 0.08 | $ 0.04 | $ 0.28 | $ 0.27 |
Diluted | $ 0.08 | $ 0.04 | $ 0.27 | $ 0.26 |
Weighted average shares outstanding: | ||||
Basic | 32,925,004 | 32,677,003 | 32,860,382 | 32,292,588 |
Diluted | 33,689,560 | 33,327,377 | 33,617,999 | 33,099,599 |
Other comprehensive income: | ||||
Unrealized gain on investments | $ 65 | $ 34 | $ 43 | $ 46 |
Foreign currency translation loss | (596) | (3,157) | (2,998) | (4,763) |
Comprehensive income (loss) | $ 2,007 | $ (1,657) | $ 6,125 | $ 3,852 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 9,080 | $ 8,569 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,449 | 2,965 |
Stock-based compensation expense | 2,668 | 1,386 |
Deferred tax expense | 218 | 261 |
Loss on revaluation of contingent consideration | 2,114 | 126 |
Loss on disposal of assets | 1 | 3 |
Bad debt reserve | 11 | |
Changes in assets and liabilities: | ||
Accounts receivable | (2,767) | (763) |
Other receivables | 183 | 6,678 |
Inventories | (4,051) | (1,347) |
Prepaid expenses and other current assets | 699 | 88 |
Accounts payable | (749) | 921 |
Accrued liabilities | 1,085 | (1,984) |
Long-term liabilities | (240) | (255) |
Net cash provided by operating activities | 11,701 | 16,648 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (14,090) | (24,236) |
Redemptions of marketable securities | 18,264 | 30,117 |
Acquisition of assets of Refine Technology, LLC | (21,236) | |
Increase in restricted cash | (250) | |
Purchases of property, plant and equipment | (2,055) | (2,964) |
Net cash provided by (used in) investing activities | 2,119 | (18,569) |
Cash flows from financing activities: | ||
Exercise of stock options | 927 | 1,486 |
Payment of contingent considerations | (99) | (604) |
Net cash provided by financing activities | 828 | 882 |
Effect of exchange rate changes on cash and cash equivalents | (1,927) | (2,884) |
Net increase (decrease) in cash and cash equivalents | 12,721 | (3,923) |
Cash and cash equivalents, beginning of period | 35,363 | 39,830 |
Cash and cash equivalents, end of period | 48,084 | 35,907 |
Supplemental disclosure of non-cash investing activities: | ||
Income taxes paid | $ 2,671 | $ 671 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
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, 2014. 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. Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, which amends the guidance for accounting for revenue from contracts with customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition Revenue from Contracts with Customers In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” (“ASU 2015-11”). ASU 2015-11 requires inventory be measured at the lower of cost and net realizable value and options that currently exist for market value be eliminated. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective prospectively for reporting periods beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. The Company does not expect the adoption of ASU 2015-11 to have a material impact on its consolidated financial statements. |
Acquisitions, Goodwill and Othe
Acquisitions, Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2015 | |
Acquisitions, Goodwill and Other Intangible Assets | 2. Acquisitions, Goodwill and Other Intangible Assets Acquisition of Refine Technology, LLC On June 2, 2014, pursuant to the terms of the Asset Purchase Agreement, dated as of June 2, 2014 (the “Asset Purchase Agreement”), by and among the Company, Refine Technology, LLC (a limited liability company formed under the laws of the State of New Jersey) (“Refine”), the members of Refine, Jerry Shevitz, Refine Technology Sales LLC (a limited liability company formed under the laws of the State of New Jersey) and Refine Technology Sales Asia PTE. LTD. (a limited private company organized in the Republic of Singapore), the Company acquired the business of Refine, including Refine’s Alternating Tangential Flow (“ATF”) System, a market-leading device used to significantly increase product yield during the fermentation step of the biologic drug manufacturing process (the “Refine Business” and the acquisition of the Refine Business, the “Refine Acquisition”). Pursuant to the Asset Purchase Agreement, Repligen purchased all of the assets related to Refine’s ATF system and assumed certain specified liabilities related to Refine’s ATF system. This acquisition strengthened Repligen’s bioprocessing business by adding a complementary product line while expanding its direct sales presence worldwide. The transaction was accounted for as a purchase of a business under Accounting Standards Codification (“ASC”) 805, Business Combinations. The terms of the acquisition included an upfront cash payment of $21,236,000 less $66,000 as a result of the final determination of working capital, issuance of 215,285 shares of the Company’s $0.01 par value common stock valued at $4,000,000, potential milestone payments totaling up to $10,900,000 for the achievement of specific sales targets in the years 2014, 2015 and 2016, and future potential payments up to $7,500,000 out of any amounts that might be received in connection with the resolution, withdrawal or settlement of certain patent disputes with a third party. During the nine months ended September 30, 2015, the Company paid Refine a $1,000,000 milestone payment for achievement of the 2014 sales target under the Asset Purchase Agreement. The $10,900,000 contingent consideration had an initial probability weighted fair value at acquisition of $1,370,000. The $7,500,000 contingent consideration had only a nominal probability weighted fair value at acquisition. In addition to the initial consideration, approximately $774,000 was paid to Refine following the acquisition under a Transition Services Agreement under which certain employees of Refine provided services to the Company for up to six months in support of the Refine Business. As these payments were contingent upon future service, they were recognized ratably as operating expense while the services were provided. Consideration Transferred The Company accounted for the Refine Acquisition as the purchase of a business under U.S. GAAP. Under the acquisition method of accounting, the assets of the Refine Business were recorded as of the acquisition date, at their respective fair values, and consolidated with those of Repligen. The fair value of the net assets acquired was approximately $26,540,000. The preparation of the valuation required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and the applicable discount rates. These estimates were based on assumptions that the Company believes to be reasonable. However, actual results may differ from these estimates. The total consideration transferred follows (in thousands): Cash consideration, $ 21,170 Value of common stock issued 4,000 Estimated fair value of contingent consideration 1,370 Total consideration transferred $ 26,540 The fair value of contingent consideration was determined based upon a probability weighted analysis of expected future payments to be made to Refine. The Company paid to Refine $1,000,000 during the nine months ended September 30, 2015 for achievements of sales targets met in 2014, and could make payments of up to $9,900,000 if specific sales targets are met for years 2015 and 2016. In addition, the Company could pay Refine up to $7,500,000 out of any receipts that might be received in connection with the resolution, withdrawal or settlement of certain patent disputes with a third party. The liability for contingent consideration is included in current and long-term liabilities on the consolidated balance sheets and will be remeasured at each reporting period until the contingency is resolved. Please see Note 8—Fair Value Measurement for further details. Acquisition related costs are not included as a component of consideration transferred, but are expensed in the periods in which the costs are incurred. The Company incurred approximately $818,000 in transaction costs related to the Refine Acquisition. The transaction costs are included in 2014 selling, general and administrative expenses in the consolidated statements of comprehensive income. Fair Value of Net Assets Acquired The allocation of purchase price was based on the fair value of assets acquired and liabilities assumed as of June 2, 2014. The components and allocation of the purchase price consists of the following amounts (in thousands): Accounts receivable $ 1,647 Inventory 1,003 Other current assets 184 Fixed assets 85 Customer relationships 6,400 Developed technology 2,000 In process research and development (“IPR&D”) 1,600 Trademark and trade name 700 Accounts payable and other liabilities assumed (431 ) Goodwill 13,352 Net assets acquired $ 26,540 Of the consideration paid, $6,400,000 represents the fair value of customer relationships that will be amortized over the determined useful life of 10 years, and $2,000,000 represents the fair value of developed technology that will be amortized over a determined useful life of 15 years. $700,000 represents the fair value of trademark and trade name determined to have an indefinite useful life and is not subject to amortization. $1,600,000 of the consideration paid represents the fair value of acquired IPR&D projects that are considered identifiable assets as of the acquisition date. Those assets are considered indefinite lived until efforts associated with the projects are completed or abandoned. The major acquired technology IPR&D relates to the development of a single use system product extension to the ATF system business. The IPR&D project assets are not currently amortized and are reviewed for impairment at least annually. There was no evidence of impairment to IPR&D as of September 30, 2015. The excess of the purchase price over the fair value of tangible and intangible assets acquired was recorded to goodwill. The goodwill recognized is attributable to expected synergies that the Company will realize from this acquisition. This goodwill is deductible for tax purposes over 15 years from the date of acquisition. Revenue, Net Income and Pro Forma Presentation The Company recorded revenue from Refine of $466,000 from June 2, 2014 through June 30, 2014. For the three months ended September 30, 2015 and 2014, the Company recorded revenue of approximately $3.8 million and $2.2 million, respectively. For the nine months ended September 30, 2015 and 2014, the Company recorded revenue of approximately $9.2 million and $2.6 million, respectively. The Company has included the operating results of Refine in its consolidated statements of operations since the June 2, 2014 acquisition date. The following table presents unaudited supplemental pro forma information for the three- and nine-month periods ended September 30, 2014, as if the Refine Acquisition had occurred as of January 1, 2013. (in thousands, except per share amounts) Three months ended Nine months ended Total revenue $ 15,278 $ 50,937 Net income 1,848 9,890 Earnings per share: Basic $ 0.04 $ 0.29 Diluted $ 0.04 $ 0.28 The unaudited pro forma information for the three- and nine-month periods ended September 30, 2015 and 2014 was calculated after applying the Company’s accounting policies and the impact of acquisition date fair value adjustments. Other Intangible Assets Intangible assets, except for the Refine Technology, LLC tradename and in-process research and development, 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. The Refine Technology, LLC tradename and in-process research and development are not amortized. The Company reviews its indefinite-lived intangible assets not subject to amortization to determine if adverse conditions exist or a change in circumstances exists that would indicate an impairment. 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 Company’s 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 its products or changes in the size of the market for its 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 September 30, 2015. Other intangible assets consisted of the following at September 30, 2015: (In thousands) Gross Carrying Accumulated Weighted Technology – developed $ 3,295 $ (953 ) 12 In process research and development 1,600 — — Patents 240 (170 ) 8 Customer relationships 11,804 (3,362 ) 9 Trademark/ tradename 700 — — Total other intangible assets $ 17,639 $ (4,485 ) 10 Other intangible assets consisted of the following at December 31, 2014: (In thousands) Gross Carrying Accumulated Weighted Technology – developed $ 3,338 $ (750 ) 12 In process research and development 1,600 — — Patents 240 (148 ) 8 Customer relationships 12,202 (2,546 ) 9 Trademark/ tradename 700 — — Total other intangible assets $ 18,080 $ (3,444 ) 10 Amortization expense for amortized intangible assets was approximately $1,201,000 for the nine-month period ended September 30, 2015. In each of the next five years, the Company expects to record amortization expense (in thousands) of: Years Ending Amortization Expense December 31, 2015 (three months remaining) $ 443 December 31, 2016 1,703 December 31, 2017 1,703 December 31, 2018 1,539 December 31, 2019 1,524 December 31, 2020 1,202 |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2015 | |
Revenue Recognition | 3. Revenue Recognition Product Sales The Company’s revenue recognition policy is to recognize revenues from product sales and services in accordance with ASC 605, Revenue Recognition The Company’s product revenues are from the sale of bioprocessing products, equipment devices, and related consumables used with these equipment devices to customers in the life science and biopharmaceutical industries. For product sales to end customers, revenue is recognized, net of discounts, when both the title and risk of loss have transferred to the customer, as determined by the shipping terms, provided there are no uncertainties regarding acceptance, and all obligations have been completed. Generally, the Company’s product arrangements for equipment sales are multiple element arrangements, and may include services, such as installation and training, and multiple products, such as consumables and spare parts. In accordance with ASC 605-25, based on the terms and conditions of the product arrangements, the Company believes that these services and undelivered products can be accounted for separately from the delivered product element, as the delivered products have value to the Company’s customers on a stand-alone basis. Accordingly, revenue for services not yet performed at the time of product shipment are deferred and recognized as such services are performed. The relative selling price of any undelivered products is also deferred at the time of shipment and recognized as revenue when these products are delivered. For product sales to distributors, the Company recognizes revenue for both equipment and consumables upon delivery to the distributor unless direct shipment to the end user is requested. In this case, revenue is recognized upon delivery to the end user’s location. In general, distributors are responsible for shipment to the end customer along with installation, training and acceptance of the equipment by the end customer. Sales to distributors are not contingent upon resale of the product. 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 returns, warranty or other issues is largely diminished. Furthermore, there is no customer right of return in the Company’s sales agreements. Sales returns and warranty issues are infrequent and have had nominal impact on the Company’s financial statements historically. Therapeutics Licensing Agreements Activities under licensing agreements are evaluated in accordance with ASC 605-25 to determine if they represent a multiple element revenue arrangement. The Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. The Company accounts for those components as separate units of accounting if the following two criteria are met: • The delivered item or items have value to the customer on a stand-alone basis. • If there is a general right of return relative to the delivered items, delivery or performance of the undelivered items is considered probable and within the Company’s control. Factors considered in this determination include, among other things, whether any other vendors sell the items separately and if the licensee 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 Company allocates 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. Revenue is recognized for each unit of accounting when the appropriate revenue recognition criteria are met. Future milestone payments, if any, under a license agreement will be recognized under the provisions of ASC 605-28, which the Company adopted on January 1, 2011. The Company has elected 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. A milestone is substantive if: • It can only be achieved based in whole or in part on either the Company’s performance or the occurrence of a specific outcome resulting from the Company’s performance; • There is substantive uncertainty at the date an arrangement is entered into that the event will be achieved; and • It would result in additional payments being due to the entity. The commercial milestone payments and royalty payments received under license agreements, if any, will be recognized as revenue when they are earned. Sale of Intellectual Property to BioMarin In January 2014, the Company entered into an asset purchase agreement (the “BioMarin Asset Purchase Agreement”) with BioMarin Pharmaceutical Inc. (“BioMarin”) to sell the Company’s histone deacetylase inhibitor (HDACi) portfolio. Pursuant to the terms of the BioMarin Asset Purchase Agreement, the Company received $2 million from BioMarin as an upfront payment on January 30, 2014 and a payment of approximately $126,000 on September 3, 2014 upon completion of the Technology Transfer. 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, the Company 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 BioMarin Asset Purchase Agreement. The Company’s receipt of these royalties is subject to customary offsets and deductions. There are no refund provisions in this agreement. The Company recognized $2.1 million of revenue in the nine-month period ended September 30, 2014, related to the transfer of the HDACi technology under the BioMarin Asset Purchase Agreement. The Company did not recognize any revenue in the three- and nine-month periods ended September 30, 2015. Any milestones earned upon specified clinical development or commercial sales events or future royalty payments under the BioMarin 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. The Company identified the following deliverables in the BioMarin Asset Purchase Agreement: • The assignment by the Company 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 the Company’s 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 BioMarin 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. The Company identified the arrangement consideration to allocate among the units of accounting as the $2.0 million non-refundable up-front payment and the $126,000 payment to be received upon completion of the Technology Transfer. The Company excluded the potential milestone payments provided for in the BioMarin Asset Purchase Agreement from the arrangement consideration, as they were not considered fixed or determinable at the time the BioMarin Asset Purchase Agreement was signed. Because the Company had not sold these items on a stand-alone basis previously, it had no vendor-specific objective evidence of selling price. Furthermore, the Company did not have detailed third-party evidence of selling price, and as a result the Company used its best estimate of selling price for each item. In determining these prices, the Company considered what it would be willing to sell the items for on a stand-alone 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 BioMarin Asset Purchase Agreement as the risks and rewards associated with the Transferred Assets transferred at that time. The Company 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, the Company allocated $2,115,000 to the value of the Transferred Assets. However, as the recognized revenue is limited to the non-contingent consideration received, the Company recognized approximately $2,000,000, the amount of the up-front payment, as revenue in the first quarter of 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, the Company did not recognize any revenue related to the Technology Transfer in the three months ended March 31, 2014. The Company received the payment and recognized $126,000 of other revenues in September 2014 upon the completion of the Technology Transfer. The Company believes 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 $2.1 million up-front payment, the Company is 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. The Company 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 the Company’s 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. The Company believes 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 BioMarin 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2015 | |
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 Balance at December 31, 2014 $ (33 ) $ (5,740 ) $ (5,773 ) Other comprehensive income/(loss) before reclassifications 43 (2,998 ) (2,955 ) Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive income/(loss) 43 (2,998 ) (2,955 ) Balance at September 30, 2015 $ 10 $ (8,738 ) $ (8,728 ) |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share | 5. Earnings Per Share The Company reports earnings per share in accordance with Accounting Standards Codification Topic 260, Earnings Per Share Basic and diluted weighted average shares outstanding were as follows: Three months ended Nine months ended 2015 2014 2015 2014 Weighted average common shares 32,925,004 32,677,003 32,860,382 32,292,588 Dilutive common stock options 764,556 650,374 757,617 807,011 Weighted average common shares, assuming dilution 33,689,560 33,327,377 33,617,999 33,099,599 At September 30, 2015, there were outstanding options to purchase 1,252,356 shares of the Company’s common stock at a weighted average exercise price of $10.47 per share. For the three- and nine-month periods ended September 30, 2015, 163,459 and 170,891 shares of the Company’s common stock, respectively, 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 September 30, 2014, there were outstanding options to purchase 1,259,317 shares of the Company’s common stock at a weighted average exercise price of $7.61 per share. For the three- and nine-month periods ended September 30, 2014, 263,475 and 289,475 shares of the Company’s common stock, respectively, 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. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation | 6. Stock-Based Compensation For the three months ended September 30, 2015 and 2014, the Company recorded stock-based compensation expense of $981,000 and $533,000, respectively, for share-based awards granted under the Second Amended and Restated 2001 Repligen Corporation Stock Plan (the “2001 Plan”) and the Repligen Corporation Amended and Restated 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 Company recorded stock-based compensation expense of $2,668,000 and $1,386,000 for the nine-month periods ended September 30, 2015 and 2014, respectively, for share-based awards granted under the Plans. The following table presents stock-based compensation expense included in the Company’s consolidated statements of comprehensive income: (In thousands) Three months ended Nine months ended 2015 2014 2015 2014 Cost of product revenue $ 60 $ 46 $ 166 $ 136 Research and development 91 62 250 174 Selling, general and administrative 830 425 2,252 1,076 Total $ 981 $ 533 $ 2,668 $ 1,386 The 2012 Plan allows for the granting of incentive and nonqualified options to purchase shares of common stock, restricted stock, restricted stock units and other equity awards. Incentive options and restricted stock units granted to employees under the Plans generally vest over a three to five-year period, with 20%-33% 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 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 September 30, 2015, options to purchase 1,252,356 shares were outstanding under the Plans. At September 30, 2015, 2,454,573 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 performance or market conditions as of September 30, 2015. 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 nine months ended September 30, 2015 under the Plans is summarized below: Options Weighted- Weighted- Aggregate (in thousands) Options outstanding at January 1, 2015 1,225,117 $ 8.31 Granted 270,532 16.57 Exercised (171,893 ) 5.24 Forfeited/Cancelled (71,400 ) 9.12 Options outstanding at September 30, 2015 1,252,356 $ 10.47 7.08 $ 22,287 Options exercisable at September 30, 2015 504,326 $ 6.33 4.87 $ 10,853 Vested and expected to vest at September 30, 2015 (1) 1,186,665 $ 10.47 7.04 $ 21,146 (1) Represents the number of vested options as of September 30, 2015 plus the number of unvested options expected to vest as of September 30, 2015 based on the unvested outstanding options at September 30, 2015 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 September 30, 2015 of $27.85 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 September 30, 2015. The weighted average grant date fair value of options granted during the nine months ended September 30, 2015 and 2014 was $22.41 and $11.12, respectively. The total fair value of stock options that vested during the nine months ended September 30, 2015 and 2014 was approximately $1,862,000 and $1,023,000, respectively. As of September 30, 2015, there was $7,455,000 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 2.97 years. The Company expects 682,339 unvested options to vest over the next five years. |
Cash, Cash Equivalents and Mark
Cash, Cash Equivalents and Marketable Securities | 9 Months Ended |
Sep. 30, 2015 | |
Cash, Cash Equivalents and Marketable Securities | 7. Cash, Cash Equivalents and Marketable Securities At September 30, 2015 and December 31, 2014, 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 September 30, 2015 is approximately 5.5 months. Management reviewed the Company’s investments as of September 30, 2015 and December 31, 2014 and concluded that there are no securities with other than temporary impairments in its 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 marketable securities consisted of the following at September 30, 2015 (in thousands): September 30, 2015 Amortized Gross Gross Fair Value Marketable securities: U.S. Government and agency securities $ 11,053 $ 4 $ — $ 11,057 Corporate and other debt securities 9,729 5 (1 ) 9,733 20,782 9 (1 ) 20,790 Long-term marketable securities: U.S. Government and agency securities 1,649 2 — 1,651 Corporate and other debt securities — — — — 1,649 2 — 1,651 Total $ 22,431 $ 11 $ (1 ) $ 22,441 At September 30, 2015, the Company’s investments included fourteen securities in unrealized loss positions with a total unrealized loss of approximately $1,000 and a total fair market value of approximately $4,920,000. 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 nine months ended September 30, 2015 or the nine months ended September 30, 2014. Investments in marketable securities consisted of the following at December 31, 2014 (in thousands): December 31, 2014 Amortized Gross Gross Fair Value Marketable securities: U.S. Government and agency securities $ 12,716 $ 2 $ (2 ) $ 12,716 Corporate and other debt securities 10,373 4 (3 ) 10,374 23,089 6 (5 ) 23,090 Long-term marketable securities: U.S. Government and agency securities 1,228 — — 1,228 Corporate and other debt securities 2,326 — (4 ) 2,322 3,554 — (4 ) 3,550 Total $ 26,643 $ 6 $ (9 ) $ 26,640 The contractual maturities of marketable securities at September 30, 2015 were as follows (in thousands): Amortized Fair Value Due in 1 year or less $ 20,782 $ 20,790 Due in 1 to 2 years 1,649 1,651 $ 22,431 $ 22,441 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015. 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 September 30, 2015 (in thousands): Fair value measurement at reporting date using: Quoted prices in Significant Significant Total Assets: Money market funds $ 9,543 $ — $ — $ 9,543 U.S. Government and agency securities 8,496 4,012 — 12,508 Corporate and other debt securities — 9,933 — 9,933 Total $ 18,039 $ 13,945 $ — $ 31,984 Liabilities: Contingent consideration – short-term — — 4,454 4,454 Contingent consideration – long-term — — 365 365 Total $ — $ — $ 4,819 $ 4,819 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 BioFlash Partners, LLC (“BioFlash”) and Refine business combinations. 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. The contingent consideration related to the Refine Acquisition is valued using management’s estimates of expected future milestone payments based on forecasted sales and a portion of any receipts that might be received in connection with the resolution, withdrawal or settlement of certain patent disputes with a third party to be paid Refine. These valuations are Level 3 valuations as the primary inputs are unobservable. Changes in the fair value of contingent consideration in the nine-month period ended September 30, 2015 are primarily attributable to an increase to the expected Refine milestone payment of $2,088,000 related to 2015 sales, a $1,000,000 milestone payment to Refine related to 2014 sales, a $110,000 minimum royalty payment made to BioFlash, and a final milestone payment to Novozymes Biopharma DK A/S of 25,000 Euros (approximately $29,000). All milestone payments made in 2015 were previously accrued. The following table provides a rollforward of the fair value of the contingent consideration (in thousands): Balance at December 31, 2014 $ 3,844 Payments (1,139 ) Changes in fair value 2,114 Balance at September 30, 2015 $ 4,819 The following tables provide quantitative information associated with the fair value measurement of the Company’s contingent consideration related to Refine using Level 3 inputs (in thousands): Contingent Consideration Refine Fair value as of September 30, 2015 $4,409,000 Valuation technique Probability-adjusted discounted cash flow Remaining periods in which milestones can be achieved 2015 – 2016 Fixed Earn-out Maximum Accrued 2015 3,500 850 4,324 2016 4,250 1,250 85 The significant unobservable inputs used in the fair value measurement of Refine’s contingent consideration are (i) the probabilities of a successful achievement of 2015 and 2016 sales milestones; (ii) the period in which these milestones are expected to be achieved; and (iii) a discount rate. During the first nine months of 2015, the estimated fair value of the 2015 contingent payment was increased by $2,088,000 to $4,409,000 based upon revised sales forecasts for 2015 and 2016. Increases or decreases in the Company’s projected sales during these periods may result in a significantly higher or lower fair value measurement and could result in a reversal of the current accrual. There were no remeasurements to fair value during the nine months ended September 30, 2015 of financial assets and liabilities that are not measured at fair value on a recurring basis. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventories | 9. Inventories Inventories relate to the Company’s bioprocessing business. The Company values inventory at cost or, if lower, 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 3 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 $328,000 at September 30, 2015 and $78,000 at December 31, 2014. 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 (in thousands): September 30, December 31, Raw materials $ 8,795 $ 5,374 Work-in-process 2,985 2,256 Finished products 4,119 4,754 Total $ 15,899 $ 12,384 |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
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 (in thousands): September 30, 2015 December 31, 2014 Employee compensation $ 3,767 $ 3,759 Taxes 1,589 571 Royalty and license fees 948 — Current portion of contingent consideration 4,454 1,135 Professional fees 394 511 Unearned revenue 524 130 Other accrued expenses 1,082 713 Total $ 12,758 $ 6,819 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
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, commencing on August 1, 2014 the Company began leasing an additional 19,900 square feet (the “Expansion Space”) for a period of eight years and one month. The Expansion Space is a part of the Company’s corporate headquarters. The amended lease provides for additional rent expense of approximately $361,000 on an annualized basis. Future minimum rental commitments under the amended lease as of September 30, 2015 are as follows (in thousands): Minimum Rental 2015 $ 586 2016 2,343 2017 1,888 2018 1,482 2019 1,371 Thereafter 3,386 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Taxes | 12. Income Taxes For the three- and nine-month periods ended September 30, 2015, the Company had income before taxes of $3,679,000 and $12,229,000, respectively. The Company recorded income tax provisions of $1,141,000 and $3,149,000, respectively, for the three- and nine-month periods ended September 30, 2015. This resulted in effective tax rates of 31.0% and 25.8% for the three- and nine-month periods ended September 30, 2015. The Company expects its effective tax rate for all of 2015 will be 24.3% based on currently forecasted rates of profitability in the countries in which the Company conducts business. The difference between the effective tax rate at Q3 of 24.3% and the estimated annual effective tax rate for 2015 of 22.01% is due primarily to a discrete tax charge related to historic tax uncertainties recorded in 2015 as well as the jurisdictional mix of earnings. The effective tax rate differs from the U.S. statutory tax rate primarily due to the lower statutory tax rate in Sweden. For the three and nine-month periods ended September 30, 2014, the Company had income before taxes of $2,254,000 and $10,896,000, respectively. The Company recorded income tax provisions of $788,000 and $2,327,000, respectively, for the three and nine-month periods ended September 30, 2014. This is based on a year to date effective tax rate of 21.4% for the nine-month period ended September 30, 2014 and an effective tax rate of 22.1% for the year ending December 31, 2014. The anticipated movement in the effective tax rate between the interim period and year end is a result of the expected change in the income position in the US. 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, as well as year-to-date income for the U.S. entity as compared to a projected loss in the U.S. for the full year. The Company has net operating loss carryforwards of approximately $43,387,000 and business tax credits carryforwards of approximately $1,782,000 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 2032. 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. As of December 31, 2014, the Company concluded that realization of deferred tax assets beyond December 31, 2014 is not more likely than not, and as such, as of December 31, 2014 it maintained a valuation allowance against the majority of its remaining deferred tax assets. As of September 30, 2015, the Company concluded that realization of deferred tax assets beyond September 30, 2015 is not more likely than not, and as such, as of September 30, 2015 it maintained a valuation allowance against the majority of its remaining deferred tax assets. The fiscal years ended March 31, 2007 through March 31, 2011 as well as the nine-month fiscal year ended December 31, 2011 and the years ended December 31, 2012, 2013 and 2014 are subject to examination by the Commonwealth of Massachusetts (“the Commonwealth”) taxing authorities. Fiscal years ended December 31, 2012, 2013 and 2014 are subject to examination by other states, U.S. federal and Sweden taxing authorities. The Company is currently subject to an examination by the Commonwealth for the years 2008 and 2009. The examiner completed the exam in 2013 and issued a notice of intent to assess tax, which the Company has appealed. The two primary issues raised in the exam are the treatment of R&D credits and the sourcing of certain income streams. During the appeal stage, the Company and the state each have made settlement proposals. As of September 30, 2015 there has been no firm agreement regarding the settlement; however, based on the direction of the negotiation, the Company has increased its uncertain tax positions by $201,000 during the three-month period ended September 30, 2015. For the years ended March 31, 2010 and 2011, as well as the nine months ended December 31, 2011, the Commonwealth indicated that it was seeking to disallow certain Research and Development Credits that were generated between 2010 and 2011. The Company performed an evaluation of the available documentation, the likelihood of similar matters in other open audit periods, the impact of interest and penalties and other relevant factors and paid approximately $141,000 to the Commonwealth in July 2015. The amount paid was previously accrued by the Company. The following is a tabular reconciliation of unrecognized tax benefits (in thousands): Unrecognized tax benefits at December 31, 2014 $ 2,081 Gross increases – tax positions in current period 229 Gross decreases – tax positions in prior period (125 ) Settlements (141 ) Unrecognized tax benefits at September 30, 2015 $ 2,044 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine months ended 2015 2014 2015 2014 Sweden 27 % 30 % 39 % 40 % United States 38 % 38 % 29 % 34 % United Kingdom 18 % 23 % 18 % 22 % Other 17 % 9 % 14 % 4 % Total 100 % 100 % 100 % 100 % Revenue from significant customers as a percentage of the Company’s total revenue is as follows: Three months ended Nine months ended 2015 2014 2015 2014 GE Healthcare 26 % 30 % 38 % 39 % Bioprocessing Customer B 19 % 23 % 18 % 22 % Bioprocessing Customer C 19 % 20 % 14 % 16 % Significant accounts receivable balances as a percentage of the Company’s total trade accounts receivable and other receivables balances are as follows: September 30, December 31, GE Healthcare 23 % 29 % Bioprocessing Customer B 15 % * Bioprocessing Customer C 12 % * * Denotes less than 10% of accounts receivable. |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Revenue Recognition | Revenue Recognition Product Sales The Company’s revenue recognition policy is to recognize revenues from product sales and services in accordance with ASC 605, Revenue Recognition The Company’s product revenues are from the sale of bioprocessing products, equipment devices, and related consumables used with these equipment devices to customers in the life science and biopharmaceutical industries. For product sales to end customers, revenue is recognized, net of discounts, when both the title and risk of loss have transferred to the customer, as determined by the shipping terms, provided there are no uncertainties regarding acceptance, and all obligations have been completed. Generally, the Company’s product arrangements for equipment sales are multiple element arrangements, and may include services, such as installation and training, and multiple products, such as consumables and spare parts. In accordance with ASC 605-25, based on the terms and conditions of the product arrangements, the Company believes that these services and undelivered products can be accounted for separately from the delivered product element, as the delivered products have value to the Company’s customers on a stand-alone basis. Accordingly, revenue for services not yet performed at the time of product shipment are deferred and recognized as such services are performed. The relative selling price of any undelivered products is also deferred at the time of shipment and recognized as revenue when these products are delivered. For product sales to distributors, the Company recognizes revenue for both equipment and consumables upon delivery to the distributor unless direct shipment to the end user is requested. In this case, revenue is recognized upon delivery to the end user’s location. In general, distributors are responsible for shipment to the end customer along with installation, training and acceptance of the equipment by the end customer. Sales to distributors are not contingent upon resale of the product. 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 returns, warranty or other issues is largely diminished. Furthermore, there is no customer right of return in the Company’s sales agreements. Sales returns and warranty issues are infrequent and have had nominal impact on the Company’s financial statements historically. Therapeutics Licensing Agreements Activities under licensing agreements are evaluated in accordance with ASC 605-25 to determine if they represent a multiple element revenue arrangement. The Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. The Company accounts for those components as separate units of accounting if the following two criteria are met: • The delivered item or items have value to the customer on a stand-alone basis. • If there is a general right of return relative to the delivered items, delivery or performance of the undelivered items is considered probable and within the Company’s control. Factors considered in this determination include, among other things, whether any other vendors sell the items separately and if the licensee 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 Company allocates 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. Revenue is recognized for each unit of accounting when the appropriate revenue recognition criteria are met. Future milestone payments, if any, under a license agreement will be recognized under the provisions of ASC 605-28, which the Company adopted on January 1, 2011. The Company has elected 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. A milestone is substantive if: • It can only be achieved based in whole or in part on either the Company’s performance or the occurrence of a specific outcome resulting from the Company’s performance; • There is substantive uncertainty at the date an arrangement is entered into that the event will be achieved; and • It would result in additional payments being due to the entity. The commercial milestone payments and royalty payments received under license agreements, if any, will be recognized as revenue when they are earned. |
Fair Value Measurement | 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. |
Acquisitions, Goodwill and Ot20
Acquisitions, Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Consideration Transferred | The total consideration transferred follows (in thousands): Cash consideration, $ 21,170 Value of common stock issued 4,000 Estimated fair value of contingent consideration 1,370 Total consideration transferred $ 26,540 |
Components and Allocation of Purchase Price | The components and allocation of the purchase price consists of the following amounts (in thousands): Accounts receivable $ 1,647 Inventory 1,003 Other current assets 184 Fixed assets 85 Customer relationships 6,400 Developed technology 2,000 In process research and development (“IPR&D”) 1,600 Trademark and trade name 700 Accounts payable and other liabilities assumed (431 ) Goodwill 13,352 Net assets acquired $ 26,540 |
Unaudited Supplemental Pro Forma Information | The following table presents unaudited supplemental pro forma information for the three- and nine-month periods ended September 30, 2014, as if the Refine Acquisition had occurred as of January 1, 2014. (in thousands, except per share amounts) Three months ended Nine months ended Total revenue $ 15,278 $ 50,937 Net income 1,848 9,890 Earnings per share: Basic $ 0.04 $ 0.29 Diluted $ 0.04 $ 0.28 |
Other Intangible Assets - Finite-Lived | Other intangible assets consisted of the following at September 30, 2015: (In thousands) Gross Carrying Accumulated Weighted Technology – developed $ 3,295 $ (953 ) 12 In process research and development 1,600 — — Patents 240 (170 ) 8 Customer relationships 11,804 (3,362 ) 9 Trademark/ tradename 700 — — Total other intangible assets $ 17,639 $ (4,485 ) 10 Other intangible assets consisted of the following at December 31, 2014: (In thousands) Gross Carrying Accumulated Weighted Technology – developed $ 3,338 $ (750 ) 12 In process research and development 1,600 — — Patents 240 (148 ) 8 Customer relationships 12,202 (2,546 ) 9 Trademark/ tradename 700 — — Total other intangible assets $ 18,080 $ (3,444 ) 10 |
Schedule of Amortization Expense for Amortized Intangible Assets | In each of the next five years, the Company expects to record amortization expense (in thousands) of: Years Ending Amortization Expense December 31, 2015 (three months remaining) $ 443 December 31, 2016 1,703 December 31, 2017 1,703 December 31, 2018 1,539 December 31, 2019 1,524 December 31, 2020 1,202 |
Accumulated Other Comprehensi21
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Balance at December 31, 2014 $ (33 ) $ (5,740 ) $ (5,773 ) Other comprehensive income/(loss) before reclassifications 43 (2,998 ) (2,955 ) Amounts reclassified from accumulated other comprehensive income — — — Net current period other comprehensive income/(loss) 43 (2,998 ) (2,955 ) Balance at September 30, 2015 $ 10 $ (8,738 ) $ (8,728 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Basic and Diluted Weighted Average Shares Outstanding | Basic and diluted weighted average shares outstanding were as follows: Three months ended Nine months ended 2015 2014 2015 2014 Weighted average common shares 32,925,004 32,677,003 32,860,382 32,292,588 Dilutive common stock options 764,556 650,374 757,617 807,011 Weighted average common shares, assuming dilution 33,689,560 33,327,377 33,617,999 33,099,599 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stock-Based Compensation Expense | The following table presents stock-based compensation expense included in the Company’s consolidated statements of comprehensive income: (In thousands) Three months ended Nine months ended 2015 2014 2015 2014 Cost of product revenue $ 60 $ 46 $ 166 $ 136 Research and development 91 62 250 174 Selling, general and administrative 830 425 2,252 1,076 Total $ 981 $ 533 $ 2,668 $ 1,386 |
Summary of Option Activity | Information regarding option activity for the nine months ended September 30, 2015 under the Plans is summarized below: Options Weighted- Weighted- Aggregate (in thousands) Options outstanding at January 1, 2015 1,225,117 $ 8.31 Granted 270,532 16.57 Exercised (171,893 ) 5.24 Forfeited/Cancelled (71,400 ) 9.12 Options outstanding at September 30, 2015 1,252,356 $ 10.47 7.08 $ 22,287 Options exercisable at September 30, 2015 504,326 $ 6.33 4.87 $ 10,853 Vested and expected to vest at September 30, 2015 (1) 1,186,665 $ 10.47 7.04 $ 21,146 (1) Represents the number of vested options as of September 30, 2015 plus the number of unvested options expected to vest as of September 30, 2015 based on the unvested outstanding options at September 30, 2015 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 Ma24
Cash, Cash Equivalents and Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments in Marketable Securities | Investments in marketable securities consisted of the following at September 30, 2015 (in thousands): September 30, 2015 Amortized Gross Gross Fair Value Marketable securities: U.S. Government and agency securities $ 11,053 $ 4 $ — $ 11,057 Corporate and other debt securities 9,729 5 (1 ) 9,733 20,782 9 (1 ) 20,790 Long-term marketable securities: U.S. Government and agency securities 1,649 2 — 1,651 Corporate and other debt securities — — — — 1,649 2 — 1,651 Total $ 22,431 $ 11 $ (1 ) $ 22,441 Investments in marketable securities consisted of the following at December 31, 2014 (in thousands): December 31, 2014 Amortized Gross Gross Fair Value Marketable securities: U.S. Government and agency securities $ 12,716 $ 2 $ (2 ) $ 12,716 Corporate and other debt securities 10,373 4 (3 ) 10,374 23,089 6 (5 ) 23,090 Long-term marketable securities: U.S. Government and agency securities 1,228 — — 1,228 Corporate and other debt securities 2,326 — (4 ) 2,322 3,554 — (4 ) 3,550 Total $ 26,643 $ 6 $ (9 ) $ 26,640 |
Contractual Maturities of Marketable Securities | The contractual maturities of marketable securities at September 30, 2015 were as follows (in thousands): Amortized Fair Value Due in 1 year or less $ 20,782 $ 20,790 Due in 1 to 2 years 1,649 1,651 $ 22,431 $ 22,441 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 (in thousands): Fair value measurement at reporting date using: Quoted prices in Significant Significant Total Assets: Money market funds $ 9,543 $ — $ — $ 9,543 U.S. Government and agency securities 8,496 4,012 — 12,508 Corporate and other debt securities — 9,933 — 9,933 Total $ 18,039 $ 13,945 $ — $ 31,984 Liabilities: Contingent consideration – short-term — — 4,454 4,454 Contingent consideration – long-term — — 365 365 Total $ — $ — $ 4,819 $ 4,819 |
Roll Forward of Fair Value of Contingent Consideration | The following table provides a rollforward of the fair value of the contingent consideration (in thousands): Balance at December 31, 2014 $ 3,844 Payments (1,139 ) Changes in fair value 2,114 Balance at September 30, 2015 $ 4,819 |
Quantitative Information Associated With Fair Value Measurement of Contingent Consideration | The following tables provide quantitative information associated with the fair value measurement of the Company’s contingent consideration related to Refine using Level 3 inputs (in thousands): Contingent Consideration Refine Fair value as of September 30, 2015 $4,409,000 Valuation technique Probability-adjusted discounted cash flow Remaining periods in which milestones can be achieved 2015 – 2016 Fixed Earn-out Maximum Accrued 2015 3,500 850 4,324 2016 4,250 1,250 85 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Inventories | Inventories consist of the following (in thousands): September 30, December 31, Raw materials $ 8,795 $ 5,374 Work-in-process 2,985 2,256 Finished products 4,119 4,754 Total $ 15,899 $ 12,384 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands): September 30, 2015 December 31, 2014 Employee compensation $ 3,767 $ 3,759 Taxes 1,589 571 Royalty and license fees 948 — Current portion of contingent consideration 4,454 1,135 Professional fees 394 511 Unearned revenue 524 130 Other accrued expenses 1,082 713 Total $ 12,758 $ 6,819 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Future Minimum Rental Commitments under Amended Lease | Future minimum rental commitments under the amended lease as of September 30, 2015 are as follows (in thousands): Minimum Rental 2015 $ 586 2016 2,343 2017 1,888 2018 1,482 2019 1,371 Thereafter 3,386 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits | The following is a tabular reconciliation of unrecognized tax benefits (in thousands): Unrecognized tax benefits at December 31, 2014 $ 2,081 Gross increases – tax positions in current period 229 Gross decreases – tax positions in prior period (125 ) Settlements (141 ) Unrecognized tax benefits at September 30, 2015 $ 2,044 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 Nine months ended 2015 2014 2015 2014 GE Healthcare 26 % 30 % 38 % 39 % Bioprocessing Customer B 19 % 23 % 18 % 22 % Bioprocessing Customer C 19 % 20 % 14 % 16 % |
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 Nine months ended 2015 2014 2015 2014 Sweden 27 % 30 % 39 % 40 % United States 38 % 38 % 29 % 34 % United Kingdom 18 % 23 % 18 % 22 % Other 17 % 9 % 14 % 4 % Total 100 % 100 % 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 other receivables balances are as follows: September 30, December 31, GE Healthcare 23 % 29 % Bioprocessing Customer B 15 % * Bioprocessing Customer C 12 % * * Denotes less than 10% of accounts receivable. |
Acquisitions, Goodwill and Ot31
Acquisitions, Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | Jun. 02, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||||||
Business acquisition, upfront payment | $ 21,170,000 | $ 21,236,000 | |||||
Business acquisition, common stock shares issued, par value | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Business acquisition, common stock shares issued, value | 4,000,000 | ||||||
Business acquisition, estimated fair value of contingent consideration | 1,370,000 | ||||||
Payment of contingent considerations | $ 99,000 | 604,000 | |||||
Business acquisition, fair value of the net assets acquired | 26,540,000 | ||||||
Finite lived intangible asset, useful life | 10 years | 10 years | |||||
Amortization expense | $ 1,201,000 | ||||||
Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of acquired finite lived intangible assets | 6,400,000 | ||||||
Finite lived intangible asset, useful life | 9 years | 9 years | |||||
Technology - developed | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of acquired finite lived intangible assets | 2,000,000 | ||||||
Finite lived intangible asset, useful life | 12 years | 12 years | |||||
Trademark / tradename | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of acquired indefinite lived intangible assets | 700,000 | ||||||
In process research and development ("IPR&D") | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of acquired indefinite lived intangible assets | 1,600,000 | ||||||
Refine Technology, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Working capital adjustment on purchase price | $ 66,000 | ||||||
Business acquisition, common stock shares issued | 215,285 | ||||||
Business acquisition, common stock shares issued, par value | $ 0.01 | ||||||
Business acquisition, common stock shares issued, value | $ 4,000,000 | ||||||
Business acquisition, fair value of the net assets acquired | 26,540,000 | ||||||
Business acquisition, transaction costs | 818,000 | ||||||
Goodwill expected deductible period for tax purposes | 15 years | ||||||
Business acquisition, revenue | $ 466,000 | $ 3,800,000 | $ 2,200,000 | $ 9,200,000 | $ 2,600,000 | ||
Refine Technology, LLC | Milestone Payments | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, maximum potential contingent payment | 10,900,000 | $ 9,900,000 | 9,900,000 | ||||
Business acquisition, estimated fair value of contingent consideration | 1,370,000 | ||||||
Payment of contingent considerations | $ 1,000,000 | ||||||
Refine Technology, LLC | Up Front Payment | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, upfront payment | 21,236,000 | ||||||
Refine Technology, LLC | Resolution, Withdrawal or Settlement of Certain Patent Disputes | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, maximum potential contingent payment | 7,500,000 | ||||||
Refine Technology, LLC | Transition Services Agreement | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, other consideration transferred | 774,000 | ||||||
Refine Technology, LLC | Customer relationships | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of acquired finite lived intangible assets | $ 6,400,000 | ||||||
Finite lived intangible asset, useful life | 10 years | ||||||
Refine Technology, LLC | Technology - developed | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of acquired finite lived intangible assets | $ 2,000,000 | ||||||
Finite lived intangible asset, useful life | 15 years | ||||||
Refine Technology, LLC | Trademark / tradename | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of acquired indefinite lived intangible assets | $ 700,000 | ||||||
Refine Technology, LLC | In process research and development ("IPR&D") | |||||||
Business Acquisition [Line Items] | |||||||
Fair value of acquired indefinite lived intangible assets | $ 1,600,000 |
Consideration Transferred (Deta
Consideration Transferred (Detail) - USD ($) $ in Thousands | Jun. 02, 2014 | Sep. 30, 2014 |
Business Acquisition [Line Items] | ||
Cash consideration, | $ 21,170 | $ 21,236 |
Value of common stock issued | 4,000 | |
Estimated fair value of contingent consideration | 1,370 | |
Total consideration transferred | $ 26,540 |
Components and Allocation of Pu
Components and Allocation of Purchase Price (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Jun. 02, 2014 |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Accounts receivable | $ 1,647 | ||
Inventory | 1,003 | ||
Other current assets | 184 | ||
Fixed assets | 85 | ||
Accounts payable and other liabilities assumed | (431) | ||
Goodwill | $ 14,346 | $ 14,185 | 13,352 |
Net assets acquired | 26,540 | ||
In process research and development ("IPR&D") | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Business combination, indefinite lived intangible assets | 1,600 | ||
Trademark / tradename | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Business combination, indefinite lived intangible assets | 700 | ||
Customer relationships | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Business combination, intangible assets | 6,400 | ||
Technology - developed | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Business combination, intangible assets | $ 2,000 |
Unaudited Supplemental Pro Form
Unaudited Supplemental Pro Forma Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||
Total revenue | $ 15,278 | $ 50,937 |
Net income | $ 1,848 | $ 9,890 |
Earnings per share: | ||
Basic | $ 0.04 | $ 0.29 |
Diluted | $ 0.04 | $ 0.28 |
Other Intangible Assets (Detail
Other Intangible Assets (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 17,639 | $ 18,080 |
Accumulated Amortization | $ (4,485) | $ (3,444) |
Weighted Average Useful Life (in years) | 10 years | 10 years |
Technology - developed | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,295 | $ 3,338 |
Accumulated Amortization | $ (953) | $ (750) |
Weighted Average Useful Life (in years) | 12 years | 12 years |
Patents | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 240 | $ 240 |
Accumulated Amortization | $ (170) | $ (148) |
Weighted Average Useful Life (in years) | 8 years | 8 years |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,804 | $ 12,202 |
Accumulated Amortization | $ (3,362) | $ (2,546) |
Weighted Average Useful Life (in years) | 9 years | 9 years |
In process research and development ("IPR&D") | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount, indefinite lived intangible assets | $ 1,600 | $ 1,600 |
Trademark / tradename | ||
Intangible Assets [Line Items] | ||
Gross Carrying Amount, indefinite lived intangible assets | $ 700 | $ 700 |
Amortization Expense for Amorti
Amortization Expense for Amortized Intangible Assets (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
December 31, 2015 (three months remaining) | $ 443 |
December 31, 2016 | 1,703 |
December 31, 2017 | 1,703 |
December 31, 2018 | 1,539 |
December 31, 2019 | 1,524 |
December 31, 2020 | $ 1,202 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | Sep. 03, 2014 | Jan. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||||
Revenue recognized | $ 2,115,000 | |||||||
Non-refundable up-front payment | 2,000,000 | |||||||
Payment to be received upon signing of agreement | 126,000 | |||||||
Revenue recognized under revenue recognition, up front payment | $ 2,000,000 | |||||||
Royalty and other revenue | $ 126,000 | $ 2,117,000 | ||||||
Technology Transfer | ||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||||
Revenue recognized | $ 0 | |||||||
Estimated selling price | $ 300,000 | 300,000 | ||||||
Consideration allocated to transaction | 11,000 | 11,000 | ||||||
Royalty and other revenue | $ 126,000 | |||||||
Clinical Development | ||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||||
Milestone Payment | 60,000,000 | |||||||
Potential milestone payments to be received | 60,000,000 | 60,000,000 | ||||||
Initial Commercial Sales | ||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||||
Potential milestone payments to be received | 100,000,000 | 100,000,000 | ||||||
BioMarin Pharmaceutical, Inc. | Asset Purchase Agreement | ||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||||
Upfront payment received under purchase agreement | $ 2,000,000 | |||||||
Potential milestone payments to be received | 160,000,000 | 160,000,000 | ||||||
Provision for refund | 0 | |||||||
Revenue recognized | $ 0 | $ 0 | $ 2,100,000 | |||||
BioMarin Pharmaceutical, Inc. | Clinical Development | Asset Purchase Agreement | ||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||||
Percentage relate to clinical development from Milestone payment | 37.00% | |||||||
BioMarin Pharmaceutical, Inc. | Initial Commercial Sales | Asset Purchase Agreement | ||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||||
Percentage relate to clinical development from Milestone payment | 63.00% | |||||||
BioMarin Pharmaceutical, Inc. | Technology Transfer Payments | Asset Purchase Agreement | ||||||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||||||
Milestone Payment | $ 126,000 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at December 31, 2014 | $ (5,773) |
Other comprehensive income/(loss) before reclassifications | (2,955) |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current period other comprehensive income/(loss) | (2,955) |
Balance at September 30, 2015 | (8,728) |
Accumulated Net Unrealized Investment Gain (Loss) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at December 31, 2014 | (33) |
Other comprehensive income/(loss) before reclassifications | 43 |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current period other comprehensive income/(loss) | 43 |
Balance at September 30, 2015 | 10 |
Accumulated Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance at December 31, 2014 | (5,740) |
Other comprehensive income/(loss) before reclassifications | (2,998) |
Amounts reclassified from accumulated other comprehensive income | 0 |
Net current period other comprehensive income/(loss) | (2,998) |
Balance at September 30, 2015 | $ (8,738) |
Basic and Diluted Weighted Aver
Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Weighted Average Number of Shares Outstanding [Line Items] | ||||
Weighted average common shares | 32,925,004 | 32,677,003 | 32,860,382 | 32,292,588 |
Dilutive common stock options | 764,556 | 650,374 | 757,617 | 807,011 |
Weighted average common shares, assuming dilution | 33,689,560 | 33,327,377 | 33,617,999 | 33,099,599 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Earnings Per Share [Line Items] | |||||
Stock options, outstanding | 1,252,356 | 1,259,317 | 1,252,356 | 1,259,317 | 1,225,117 |
Stock options, weighted average exercise price | $ 10.47 | $ 7.61 | $ 10.47 | $ 7.61 | $ 8.31 |
Common stock excluded from calculation of diluted earnings per share | 163,459 | 263,475 | 170,891 | 289,475 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2012 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 981,000 | $ 533,000 | $ 2,668,000 | $ 1,386,000 | ||
Stock options, outstanding | 1,252,356 | 1,259,317 | 1,252,356 | 1,259,317 | 1,225,117 | |
Number of shares available for future grant | 2,454,573 | 2,454,573 | ||||
Closing price of common stock | $ 27.85 | $ 27.85 | ||||
Weighted average grant date fair value of share-based awards granted | $ 22.41 | $ 11.12 | ||||
Total fair value of stock options vested | $ 1,862,000 | $ 1,023,000 | ||||
Total unrecognized compensation cost | $ 7,455,000 | $ 7,455,000 | ||||
Unrecognized compensation cost, weighted average remaining requisite service period | 2 years 11 months 19 days | |||||
Number of unvested options | 682,339 | 682,339 | ||||
Employee Stock Option | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive options, vesting period | 3 years | |||||
Employee Stock Option | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive options, vesting period | 5 years | |||||
Incentive options, term | 10 years | |||||
Employee Stock Option | Vest Over Three Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive options, vesting percentage | 20.00% | |||||
Employee Stock Option | Vest Over Five Year | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive options, vesting percentage | 33.00% | |||||
Non-Employee Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive options, vesting period | 1 year | |||||
Unvested Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Incentive options, vesting period | 5 years |
Stock-Based Compensation Expens
Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 981 | $ 533 | $ 2,668 | $ 1,386 |
Cost of product revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 60 | 46 | 166 | 136 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 91 | 62 | 250 | 174 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 830 | $ 425 | $ 2,252 | $ 1,076 |
Summary of Information Regardin
Summary of Information Regarding Option Activity (Detail) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)$ / sharesshares | ||
Options Outstanding | ||
Options outstanding at January 1, 2015 | 1,225,117 | |
Granted | 270,532 | |
Exercised | (171,893) | |
Forfeited/Cancelled | (71,400) | |
Options outstanding at September 30, 2015 | 1,252,356 | |
Options exercisable at September 30, 2015 | 504,326 | |
Vested and expected to vest at September 30, 2015 | 1,186,665 | [1] |
Weighted-Average Exercise Price Per Share | ||
Options outstanding at January 1, 2015 | $ / shares | $ 8.31 | |
Granted | $ / shares | 16.57 | |
Exercised | $ / shares | 5.24 | |
Forfeited/Cancelled | $ / shares | 9.12 | |
Options outstanding at September 30, 2015 | $ / shares | 10.47 | |
Options exercisable at September 30, 2015 | $ / shares | 6.33 | |
Vested and expected to vest at September 30, 2015 | $ / shares | $ 10.47 | [1] |
Weighted-Average Remaining Contractual Term (in years) | ||
Options outstanding at September 30, 2015 | 7 years 29 days | |
Options exercisable at September 30, 2015 | 4 years 10 months 13 days | |
Vested and expected to vest at September 30, 2015 | 7 years 15 days | [1] |
Aggregate Intrinsic Value | ||
Options outstanding at September 30, 2015 | $ | $ 22,287 | |
Options exercisable at September 30, 2015 | $ | 10,853 | |
Vested and expected to vest at September 30, 2015 | $ | $ 21,146 | [1] |
[1] | Represents the number of vested options as of September 30, 2015 plus the number of unvested options expected to vest as of September 30, 2015 based on the unvested outstanding options at September 30, 2015 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 Regard44
Summary of Information Regarding Option Activity (Parenthetical) (Detail) - Employee Stock Option | Sep. 30, 2015 |
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 Marke
Cash Cash Equivalents and Marketable Securities - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2015USD ($)Investment | Sep. 30, 2014USD ($) | |
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 | 5 months 15 days | |
Number of debt securities in unrealized loss positions | Investment | 14 | |
Debt securities in unrealized loss positions, total unrealized loss | $ 1,000 | |
Debt securities in unrealized loss positions, total fair market value | 4,920,000 | |
Credit risk | 0 | |
Gain (loss) on investments | $ 0 | $ 0 |
Minimum | ||
Cash, cash equivalents and marketable securities [Line Items] | ||
Marketable securities, minimum original maturity term | 90 days |
Investments in Marketable Secur
Investments in Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 22,431 | $ 26,643 |
Gross Unrealized Gain | 11 | 6 |
Gross Unrealized Loss | (1) | (9) |
Fair Value | 22,441 | 26,640 |
Marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 20,782 | 23,089 |
Gross Unrealized Gain | 9 | 6 |
Gross Unrealized Loss | (1) | (5) |
Fair Value | 20,790 | 23,090 |
Marketable securities | U.S. Government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 11,053 | 12,716 |
Gross Unrealized Gain | 4 | 2 |
Gross Unrealized Loss | (2) | |
Fair Value | 11,057 | 12,716 |
Marketable securities | Corporate and other debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,729 | 10,373 |
Gross Unrealized Gain | 5 | 4 |
Gross Unrealized Loss | (1) | (3) |
Fair Value | 9,733 | 10,374 |
Long-term marketable securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,649 | 3,554 |
Gross Unrealized Gain | 2 | |
Gross Unrealized Loss | (4) | |
Fair Value | 1,651 | 3,550 |
Long-term marketable securities | U.S. Government and agency securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 1,649 | 1,228 |
Gross Unrealized Gain | 2 | |
Fair Value | $ 1,651 | 1,228 |
Long-term marketable securities | Corporate and other debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,326 | |
Gross Unrealized Loss | (4) | |
Fair Value | $ 2,322 |
Contractual Maturities of Marke
Contractual Maturities of Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Due in 1 year or less | $ 20,782 | |
Due in 1 to 2 years | 1,649 | |
Amortized Cost | 22,431 | $ 26,643 |
Due in 1 year or less | 20,790 | |
Due in 1 to 2 years | 1,651 | |
Fair Value | $ 22,441 | $ 26,640 |
Major Category of Assets Measur
Major Category of Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring $ in Thousands | Sep. 30, 2015USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Assets | $ 31,984 |
Liabilities | 4,819 |
Money market funds | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Assets | 9,543 |
U.S. Government and agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Assets | 12,508 |
Corporate and other debt securities | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Assets | 9,933 |
Contingent consideration - short-term | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Liabilities | 4,454 |
Contingent consideration - long-term | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Liabilities | 365 |
Quoted prices in active markets for identical assets (Level 1) | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Assets | 18,039 |
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 | 9,543 |
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 | 8,496 |
Significant other observable inputs (Level 2) | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Assets | 13,945 |
Significant other observable inputs (Level 2) | U.S. Government and agency securities | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Assets | 4,012 |
Significant other observable inputs (Level 2) | Corporate and other debt securities | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Assets | 9,933 |
Significant unobservable inputs (Level 3) | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Liabilities | 4,819 |
Significant unobservable inputs (Level 3) | Contingent consideration - short-term | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Liabilities | 4,454 |
Significant unobservable inputs (Level 3) | Contingent consideration - long-term | |
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Liabilities | $ 365 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) € in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015EUR (€) | Sep. 30, 2014USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jun. 02, 2014USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Fair value of other assets | $ 0 | $ 0 | ||||||
Fair value of other liabilities | 0 | 0 | ||||||
Increase to milestone payment | 233,000 | $ 10,000 | 2,114,000 | $ 126,000 | ||||
Payment of contingent considerations | 99,000 | $ 604,000 | ||||||
Accrued Balance | $ 1,370,000 | |||||||
Refine Technology, LLC | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Increase to milestone payment | 2,088,000 | |||||||
Refine Technology, LLC | Milestone Payments | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Payment of contingent considerations | 1,000,000 | |||||||
Accrued Balance | $ 1,370,000 | |||||||
Bio Flash | Minimum | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Royalty payment | 110,000 | |||||||
Novozymes Biopharma DK A/S Sweden Ab | Milestone Payments | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Payment of contingent considerations | 29,000 | € 25 | ||||||
Significant unobservable inputs (Level 3) | Refine Technology, LLC | Milestone Payments | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Increase to milestone payment | 2,088,000 | |||||||
Accrued Balance | $ 4,409,000 | $ 4,409,000 | ||||||
Scenario, Forecast | Significant unobservable inputs (Level 3) | Refine Technology, LLC | Milestone Payments | ||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||
Accrued Balance | $ 85,000 | $ 4,409,000 |
Roll Forward of Fair Value of C
Roll Forward of Fair Value of Contingent Consideration (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Balance at December 31, 2014 | $ 3,844 |
Payments | (1,139) |
Changes in fair value | 2,114 |
Balance at September 30, 2015 | $ 4,819 |
Quantitative Information Associ
Quantitative Information Associated With Fair Value Measurement of Contingent Consideration (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 02, 2014 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Accrued Balance | $ 1,370,000 | |||
Refine Technology, LLC | Milestone Payments | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Accrued Balance | $ 1,370,000 | |||
Significant unobservable inputs (Level 3) | Refine Technology, LLC | Milestone Payments | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Accrued Balance | $ 4,409,000 | |||
Valuation technique | Probability-adjusted discounted cash flow | |||
Significant unobservable inputs (Level 3) | Refine Technology, LLC | Milestone Payments | Minimum | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Remaining periods in which milestones can be achieved | 2,015 | |||
Significant unobservable inputs (Level 3) | Refine Technology, LLC | Milestone Payments | Maximum | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Remaining periods in which milestones can be achieved | 2,016 | |||
Significant unobservable inputs (Level 3) | Scenario, Forecast | Refine Technology, LLC | Milestone Payments | ||||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||||
Fixed Earn-out | $ 4,250,000 | $ 3,500,000 | ||
Maximum Variable Earn-out | 1,250,000 | 850,000 | ||
Accrued Balance | $ 85,000 | $ 4,409,000 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Reserves for excess and obsolete inventory | $ 328,000 | $ 78,000 |
Schedule of Inventories (Detail
Schedule of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw materials | $ 8,795 | $ 5,374 |
Work-in-process | 2,985 | 2,256 |
Finished products | 4,119 | 4,754 |
Total | $ 15,899 | $ 12,384 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Accrued Liabilities [Line Items] | ||
Employee compensation | $ 3,767 | $ 3,759 |
Taxes | 1,589 | 571 |
Royalty and license fees | 948 | |
Current portion of contingent consideration | 4,454 | 1,135 |
Professional fees | 394 | 511 |
Unearned revenue | 524 | 130 |
Other accrued expenses | 1,082 | 713 |
Total | $ 12,758 | $ 6,819 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended |
Mar. 31, 2014USD ($)ft² | |
Commitments and Contingencies [Line Items] | |
Lease agreement, term | 8 years 1 month |
Lease agreement, commencement date | Aug. 1, 2014 |
Before Amendment | |
Commitments and Contingencies [Line Items] | |
Lease agreement, space | 55,694 |
After Amendment | |
Commitments and Contingencies [Line Items] | |
Lease agreement, space | 75,594 |
Expansion Space | |
Commitments and Contingencies [Line Items] | |
Lease agreement, space | 19,900 |
Annual rent expense | $ | $ 361,000 |
Future Minimum Rental Commitmen
Future Minimum Rental Commitments under Amended Lease (Detail) $ in Thousands | Sep. 30, 2015USD ($) |
Operating Leased Assets [Line Items] | |
2,015 | $ 586 |
2,016 | 2,343 |
2,017 | 1,888 |
2,018 | 1,482 |
2,019 | 1,371 |
Thereafter | $ 3,386 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | ||||||
Income before income taxes | $ 3,679,000 | $ 2,254,000 | $ 12,229,000 | $ 10,896,000 | ||
Income tax provision | $ 1,141,000 | $ 788,000 | $ 3,149,000 | $ 2,327,000 | ||
Effective tax rate | 31.00% | 25.80% | 21.40% | 22.10% | ||
Increase in uncertain tax positions | $ 201,000 | $ 201,000 | ||||
Generated between 2010 and 2011 | Research and Development Credit | ||||||
Income Taxes [Line Items] | ||||||
Provision for open audit matters,impact of interest, penalties and other factors | $ 141,000 | |||||
Scenario, Forecast | ||||||
Income Taxes [Line Items] | ||||||
Effective tax rate | 24.30% | 24.30% | 22.01% | |||
Maximum | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss and business tax credit carry forwards expiration date | At various dates through December 2032. | |||||
Available to Reduce Future Federal Income Taxes | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carry forwards | $ 43,387,000 | $ 43,387,000 | ||||
Business tax credit carry forwards | $ 1,782,000 | $ 1,782,000 |
Reconciliation of Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |
Unrecognized tax benefits at December 31, 2014 | $ 2,081 |
Gross increases - tax positions in current period | 229 |
Gross decreases - tax positions in prior period | (125) |
Settlements | (141) |
Unrecognized tax benefits at September 30, 2015 | $ 2,044 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segment | 1 |
Percentage of Revenue by Geogra
Percentage of Revenue by Geographic Area (Detail) - Geographic Concentration Risk - Total Revenue | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 100.00% | 100.00% | 100.00% | 100.00% |
Sweden | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 27.00% | 30.00% | 39.00% | 40.00% |
United States | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 38.00% | 38.00% | 29.00% | 34.00% |
United Kingdom | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 18.00% | 23.00% | 18.00% | 22.00% |
Other | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 17.00% | 9.00% | 14.00% | 4.00% |
Percentage of Revenue from Sign
Percentage of Revenue from Significant Customers (Detail) - Customer Concentration Risk - Sales Revenue | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
GE Healthcare | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from significant customers as a percentage of total revenue | 26.00% | 30.00% | 38.00% | 39.00% |
Bioprocessing Customer B | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from significant customers as a percentage of total revenue | 19.00% | 23.00% | 18.00% | 22.00% |
Bioprocessing Customer C | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from significant customers as a percentage of total revenue | 19.00% | 20.00% | 14.00% | 16.00% |
Percentage of Accounts Receivab
Percentage of Accounts Receivable by Significant Customers (Detail) - Customer Concentration Risk - Accounts Receivable | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
GE Healthcare | ||
Concentration Risk [Line Items] | ||
Accounts receivable, percentage by customer | 23.00% | 29.00% |
Bioprocessing Customer B | ||
Concentration Risk [Line Items] | ||
Accounts receivable, percentage by customer | 15.00% | |
Bioprocessing Customer C | ||
Concentration Risk [Line Items] | ||
Accounts receivable, percentage by customer | 12.00% |