Repligen (RGEN) 10-Q 4 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 28, 2017
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
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		34,080,664

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 129,663	$ 122,233
Marketable securities	12,180	19,547
Accounts receivable, less reserve for doubtful accounts of $32 at March 31, 2017 and $23 at December 31, 2016	17,710	15,194
Other receivables	669	839
Inventories	23,957	24,696
Prepaid expenses and other current assets	1,620	1,644
Total current assets	185,799	184,153
Property, plant and equipment, net	15,373	14,956
Intangible assets, net	29,222	29,806
Goodwill	59,784	59,548
Restricted cash	450	450
Total assets	290,628	288,913
Current liabilities:
Accounts payable	4,635	5,061
Accrued liabilities	9,116	16,014
Total current liabilities	13,751	21,075
Convertible senior notes	96,242	95,272
Deferred tax liabilities	2,188	2,103
Other long-term liabilities	1,656	1,699
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, 34,076,544 shares at March 31, 2017 and 33,844,074 shares at December 31, 2016 issued and outstanding	341	338
Additional paid-in capital	245,961	242,036
Accumulated other comprehensive loss	(12,718)	(13,749)
Accumulated deficit	(56,793)	(59,861)
Total stockholders' equity	176,791	168,764
Total liabilities and stockholders' equity	$ 290,628	$ 288,913

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Accounts receivable, reserve for doubtful accounts	$ 32	$ 23
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	34,076,544	33,844,074
Common stock, shares outstanding	34,076,544	33,844,074

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenue:
Product revenue	$ 30,569	$ 25,094
Royalty and other revenue	21
Total revenue	30,590	25,094
Operating expenses:
Cost of product revenue	13,990	11,069
Research and development	1,742	1,539
Selling, general and administrative	9,182	7,018
Contingent consideration - fair value adjustments		2,005
Total operating expenses	24,914	21,631
Income from operations	5,676	3,463
Investment income	96	61
Interest expense	(1,585)	(5)
Other expense	(120)	(979)
Income before income taxes	4,067	2,540
Income tax provision	999	915
Net income	$ 3,068	$ 1,625
Earnings per share:
Basic	$ 0.09	$ 0.05
Diluted	$ 0.09	$ 0.05
Weighted average shares outstanding:
Basic	33,891,702	33,024,681
Diluted	34,382,322	33,493,575
Other comprehensive income:
Unrealized gain on investments	$ 4	$ 15
Foreign currency translation gain	1,027	1,881
Comprehensive income (loss)	$ 4,099	$ 3,521

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 3,068	$ 1,625
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	1,582	1,150
Non-cash interest expense	970
Stock-based compensation expense	1,531	922
Deferred tax expense	10
Loss on revaluation of contingent consideration		2,005
Loss on disposal of assets	59	3
Changes in assets and liabilities:
Accounts receivable	(2,415)	(1,149)
Other receivables	172	(249)
Inventories	851	(3,092)
Prepaid expenses and other current assets	34	781
Accounts payable	(452)	(1,600)
Accrued liabilities	(4,220)	(4,277)
Long-term liabilities	(43)	70
Net cash provided by (used in) operating activities	1,147	(3,811)
Cash flows from investing activities:
Purchases of marketable securities	(28)	(3,969)
Redemptions of marketable securities	7,400	5,600
Purchases of property, plant and equipment	(1,295)	(431)
Net cash provided by investing activities	6,077	1,200
Cash flows from financing activities:
Exercise of stock options	1,333	821
Payment of contingent considerations	(1,663)	(498)
Net cash (used in) provided by financing activities	(330)	323
Effect of exchange rate changes on cash and cash equivalents	536	1,409
Net increase (decrease) in cash and cash equivalents	7,430	(879)
Cash and cash equivalents, beginning of period	122,233	54,092
Cash and cash equivalents, end of period	129,663	53,213
Supplemental disclosure of non-cash activities:
Income taxes paid	1,181	1,039
Payment of contingent consideration in common stock	$ 1,062	$ 875

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Basis of Presentation	1. Basis of Presentation The condensed 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 S-X 10-K 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. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Repligen Sweden AB (“Repligen Sweden”), Repligen GmbH (acquired as Atoll GmbH as of April 1, 2016 and renamed on September 20, 2016), TangenX Technology Corporation (acquired as of December 14, 2016) and Repligen Singapore Pte. Ltd. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed 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. Recently Issued Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue Recognition Revenue from Contracts with Customers 2015-14, 2016-08, 2016-10, 2016-12, In July 2015, the FASB issued ASU No. 2015-11, 2015-11”). 2015-11 2015-11 2015-11 In February 2016, the FASB issued ASU No. 2016-02, “Leases 2016-02”). 2016-02 right-of-use In March 2016, the FASB issued ASU No. 2016-09, “Compensation—Stock 2016-09 In August 2016, the FASB issued ASU No. 2016-15, No. 2016-15 2016-15 In January 2017, the FASB issued ASU 2017-01, “Business

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2017
Acquisitions	2. Acquisitions Atoll GmbH On April 1, 2016, the Company’s subsidiary, Repligen Sweden, acquired Atoll GmbH (“Atoll”) from UV-Cap In connection with the Atoll Acquisition, the Company issued and contributed 538,700 shares of the Company’s common stock, par value of $0.01 per share valued at $14.1 million (the “Stock Consideration”) to Repligen Sweden through a transfer by the Company on behalf of Repligen Sweden to fulfill Repligen Sweden’s obligation to deliver the Stock Consideration under the Atoll Share Purchase Agreement. The issuance of the Stock Consideration was not registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemption from registration provided by Section 4(2) of the Securities Act. The Stock Consideration was based on the fair value of the Company’s common stock on April 1, 2016. This acquisition strengthened Repligen’s bioprocessing business by adding a complementary extension to an existing product line while expanding its direct sales presence worldwide. On September 20, 2016, Atoll changed its name to Repligen GmbH. The Atoll Acquisition was accounted for as a purchase of a business under ASC 805, “Business Combinations.” The total purchase price of the Atoll Acquisition was $25.3 million, consisting of an upfront cash payment of $10.2 million, less $74,000 as a result of the final determination of working capital, issuance of the Stock Consideration, and a future potential milestone payment of $1.1 million if specific revenue growth targets are met for 2016. The $1.1 million potential contingent consideration had an initial probability weighted fair value at the time of the closing of the Atoll Acquisition of approximately $952,000. Consideration Transferred The Company accounted for the Atoll Acquisition as the purchase of a business under U.S. GAAP. Under the acquisition method of accounting, the assets of Atoll 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 $25.3 million. 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, less $74 of working capital adjustments $ 10,176 Value of common stock issued 14,138 Estimated fair value of contingent consideration 952 Total consideration transferred $ 25,266 The fair value of contingent consideration was determined based upon a probability weighted analysis of expected future milestone and settlement payments to be made to the Seller. Pursuant to the terms of the Atoll Share Purchase Agreement, the Company would make a contingent consideration payment of $1.1 million if specific revenue growth targets were met for 2016. Because the specified revenue growth targets were met for 2016, the Company made the contingent consideration payment in March 2017. No further measurement of this liability is required as of March 31, 2017. 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 $1,262,000 in transaction costs related to the Atoll Acquisition. The transaction costs are included in selling, general and administrative expenses in the consolidated statements of operations. 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 April 1, 2016. The components and allocation of the purchase price consists of the following amounts (in thousands): Cash and cash equivalents $ 1,409 Accounts receivable 697 Inventory 155 Other current assets 169 Fixed assets, net 114 Customer relationships 5,318 Developed technology 2,175 Non-competition 57 Trademark and trade name 11 Deferred tax assets 885 Accounts payable and other liabilities assumed (599 ) Deferred tax liabilities (2,202 ) Goodwill 17,077 Net assets acquired $ 25,266 Of the consideration paid, $5.3 million represents the fair value of customer relationships that will be amortized over the determined useful life of 13 years and $2.2 million represents the fair value of developed technology that will be amortized over a determined useful life of 14 years. $57,000 represents the fair value of non-competition The goodwill of $17.1 million represents future economic benefits expected to arise from synergies from combining operations, utilizing the Company’s existing sales infrastructure to increase market presence and the extension of existing customer relationships. TangenX Technology Corporation On December 14, 2016, the Company acquired TangenX Technology Corporation (“TangenX”), pursuant to the terms of the Share Purchase Agreement, dated as of December 14, 2016 (the “TangenX Share Purchase Agreement”), by and among the Company, John Connors and Novasep Process SAS (such acquisition, the “TangenX Acquisition”). Through the TangenX Acquisition, the Company acquired all outstanding shares and the business of TangenX, including TangenX’s innovative single-use TangenX™ TFF products are used in the filtration of biological drugs, thereby expanding Repligen’s filtration portfolio and complementing the OPUS ® The TangenX Acquisition was accounted for as a purchase of a business under ASC 805, “Business Combinations.” The total purchase price of the TangenX Acquisition was $37.1 million in cash. Consideration Transferred The Company accounted for the TangenX Acquisition as a purchase of a business under U.S. GAAP. Under the acquisition method of accounting, the assets of TangenX 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 $37.1 million. 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 $ 37,532 Less: working capital adjustment (467 ) Net assets acquired $ 37,065 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 $1,337,000 in transaction costs related to the TangenX Acquisition. The transaction costs are included in selling, general and administrative expenses in the consolidated statements of operations. 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 December 14, 2016. The components and allocation of the purchase price consists of the following amounts (in thousands): Cash and cash equivalents $ 1,218 Accounts receivable 459 Other receivables 111 Inventory 936 Other current assets 50 Fixed assets, net 215 Customer relationships 6,192 Developed technology 6,044 Non-competition 21 Trademark and trade name 11 Accounts payable and other liabilities assumed (3,083 ) Deferred tax liabilities (4,525 ) Goodwill 29,416 Net assets acquired $ 37,065 Of the consideration paid, $6.2 million represents the fair value of customer relationships that will be amortized over the determined useful life of 13 years and $6.0 million represents the fair value of developed technology that will be amortized over a determined useful life of 20 years. $21,000 represents the fair value of non-competition The goodwill of $29.4 million represents future economic benefits expected to arise from synergies from combining operations and the extension of existing customer relationships. Revenue, Net Income and Pro Forma Presentation The Company recorded revenue from TangenX of $119,000 from December 15, 2016 through December 31, 2016 and $1,973,000 for the three months ended March 31, 2017. The Company has included the operating results of TangenX in its consolidated statements of operations since the December 15, 2016 acquisition date. The following table presents unaudited supplemental pro forma information as if the TangenX Acquisition had occurred as of January 1, 2016 (in thousands, except per share data): March 31, 2017 March 31, 2016 Total revenue 30,590 26,952 Net income 3,608 5,118 Earnings per share: Basic $ 0.11 $ 0.15 Diluted $ 0.10 $ 0.15 The unaudited pro forma information for the three months ended March 31, 2017 and 2016 was calculated after applying the Company’s accounting policies and the impact of acquisition date fair value adjustments. Unaudited pro forma net income for three months ended March 31, 2017 was adjusted to exclude acquisition-related transaction costs and inventory step-up step-up These pro forma condensed consolidated financial results have been prepared for comparative purposes only and include certain adjustments to reflect the pro forma results of operations as if the acquisition had occurred as of the beginning of the periods presented, such as fair value adjustments to inventory and increased amortization for the fair value of acquired intangible assets. The pro forma information does not reflect the effect of costs or synergies that would have been expected to result from the integration of the acquisition. The pro forma information does not purport to be indicative of the results of operations that actually would have resulted had the combination occurred at the beginning of each period presented, or of future results of the consolidated entities.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2017
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. On 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, our 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, At the time of sale, the Company also evaluates the need to accrue for warranty and sales returns. The supply agreements the Company has with its customers and the related purchase orders identify the terms and conditions of each sale and the price of the goods ordered. Due to the nature of the sales arrangements, inventory produced for sale is tested for quality specifications prior to shipment. Since the product is manufactured to order and in compliance with required specifications prior to shipment, the likelihood of sales return, warranty or other issues is largely diminished. Furthermore, there is no customer right of return in our sales agreements. Sales returns and warranty issues are infrequent and have not had a material impact on the Company’s financial statements historically. Shipping and handling fees are recorded as a component of product revenue, with the associated costs recorded as a component of cost of product revenue. Therapeutics Licensing Agreements Activities under licensing agreements are evaluated in accordance with ASC 605-25 • The delivered item or items have value to the customer on a stand-alone basis; and • 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, • 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 Repligen’s histone deacetylase inhibitor (HDACi) portfolio. Pursuant to the terms of the BioMarin Asset Purchase Agreement, the Company is entitled to receive up to $160 million in potential future milestone payments, 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. In addition, Repligen is eligible to receive royalties on sales of therapeutic products originating from the HDACi portfolio. The royalty rates are tiered and begin in the mid-single-digits non-HDACi Activities under this agreement were evaluated in accordance with ASC 605-25 • The assignment by the Company to BioMarin of its intellectual property rights in the HDACi portfolio and the Scripps Agreement (the “Transferred Assets”); and • The transfer of certain notebooks, data, documents, biological materials (if any) and other such documents in our possession that might be useful to further development of the program (the “Technology Transfer”). Two criteria must be met in order for a deliverable to be considered a separate unit of accounting. The first criterion requires that the delivered item or items have value to the customer on a stand-alone basis. The second criterion, which relates to evaluating a general right of return, is not applicable because such a provision does not exist in the 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 evaluated the potential milestones in accordance with ASC 605-28, 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	3 Months Ended
	Mar. 31, 2017
Accumulated Other Comprehensive Income	4. Accumulated Other Comprehensive Income The following table summarizes the changes in accumulated other comprehensive income by component (in thousands): (In thousands) Unrealized gain Foreign currency Total Balance at December 31, 2016 $ (5 ) $ (13,744 ) $ (13,749 ) Other comprehensive income 4 1,027 1,031 Balance at March 31, 2017 $ (1 ) $ (12,717 ) $ (12,718 )

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share	5. Earnings Per Share The Company reports earnings per share in accordance with ASC Topic 260, “Earnings Per Share,” which establishes standards for computing and presenting earnings per share. Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares and dilutive common share equivalents then outstanding. Potential common share equivalents consist of restricted stock awards and the incremental common shares issuable upon the exercise of stock options. Under the treasury stock method, unexercised “in-the-money” non-forfeitable Basic and diluted weighted average shares outstanding were as follows: Three months ended 2017 2016 Weighted average common shares 33,891,702 33,024,681 Dilutive common stock options 490,620 468,894 Weighted average common shares, assuming dilution 34,382,322 33,493,575 At March 31, 2017, there were outstanding options to purchase 805,903 shares of the Company’s common stock at a weighted average exercise price of $19.68 per share and restricted stock units to acquire 404,781 shares of the Company’s common stock. For the three months ended March 31, 2017, 458,685 options to purchase 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. As provided by the terms of the indenture underlying the senior convertible notes, the Company has a choice to settle the conversion obligation for the Convertible Notes in cash, shares or any combination of the two. The Company currently intends to settle the par value of the Convertible Notes in cash and any excess conversion premium in shares. The Company applies the provisions of ASC 260, Earnings Per Share, 10-45-44, At March 31, 2016, there were outstanding options to purchase 1,312,508 shares of the Company’s common stock at a weighted average exercise price of $11.50 per share. For the three- month period ended March 31, 2016, 520,030 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.

Cash, Cash Equivalents and Mark

Cash, Cash Equivalents and Marketable Securities	3 Months Ended
	Mar. 31, 2017
Cash, Cash Equivalents and Marketable Securities	6. Cash, Cash Equivalents and Marketable Securities At March 31, 2017 and December 31, 2016, the Company’s investments included money market funds and short-term marketable securities. These marketable securities are classified as available-for-sale. Management reviewed the Company’s investments as of March 31, 2017 and December 31, 2016 and concluded that there are no securities with other than temporary impairments in the investment portfolio. The Company does not intend to sell any investments in an unrealized loss position, and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases. Investments in marketable securities consisted of the following at March 31, 2017 (in thousands): March 31, 2017 Amortized Gross Gross Fair Marketable securities: U.S. Government and agency securities $ 402 $ — $ — $ 402 Corporate and other debt securities 11,779 1 (2 ) 11,778 Total $ 12,181 $ 1 $ (2 ) $ 12,180 There were no long-term marketable securities as of March 31, 2017. At March 31, 2017, the Company’s investments included seven securities in unrealized loss positions with a total unrealized loss of approximately $2,000 and a total fair market value of approximately $3,946,000. All investments with gross unrealized losses have been in unrealized loss positions for less than 12 months. The unrealized losses were caused primarily by current economic and market conditions. There was no change in the credit risk of the securities. There were no realized gains or losses on the investments for the three months ended March 31, 2017 and 2016. Investments in marketable securities consisted of the following at December 31, 2016 (in thousands): December 31, 2016 Amortized Gross Gross Fair Marketable securities: U.S. Government and agency securities $ 807 $ — $ — $ 807 Corporate and other debt securities 18,745 2 (7 ) 18,740 Total $ 19,552 $ 2 $ (7 ) $ 19,547 There were no long-term marketable securities as of December 31, 2016. The contractual maturities of all money market funds and marketable securities are less than one year as of March 31, 2017.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2017
Inventories	7. 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 work-in-process 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 March 31, 2017 December 31, Raw Materials $ 15,417 $ 14,954 Work-in-process 2,769 2,789 Finished products 5,771 6,953 Total $ 23,957 $ 24,696

Property, Plant and Equipment

Property, Plant and Equipment	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment	8. Property, Plant and Equipment Property, plant and equipment consist of the following (in thousands): March 31, 2017 December 31, 2016 Leasehold improvements $ 15,196 $ 14,592 Equipment 15,501 15,214 Furniture and fixtures 3,418 3,218 Construction in progress 1,142 1,264 Total property, plant and equipment 35,257 34,288 Less: accumulated depreciation (19,884 ) (19,332 ) Property, plant and equipment, net $ 15,373 $ 14,956 Depreciation expense totaled approximately $928,000 and $751,000 for the three months ended March 31, 2017 and 2016, respectively.

Intangible Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2017
Intangible Assets	9. Intangible Assets Intangible assets are amortized over their useful lives using the straight-line method, as applicable, and the amortization expense is recorded within selling, general and administrative expense in the Company’s statements of comprehensive income (loss). During the third quarter of 2016, the Company launched its XCell TM single-use in-process in-process 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 competitive landscape, any internal decisions to pursue new or different technology strategies, a loss of a significant customer, or a significant change in the marketplace, including changes in the prices paid for our products or changes in the size of the market for our products. An impairment results if the carrying value of the asset exceeds the estimated fair value of the asset. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. The Company continues to believe that its intangible assets are recoverable at March 31, 2017. Intangible assets consisted of the following at March 31, 2017 (in thousands): Gross Carrying Accumulated Weighted Technology – developed $ 12,949 $ (1,685 ) 17 Patents 240 (215 ) 8 Customer relationships 22,697 (5,525 ) 11 Trademark 711 — — Other intangibles 85 (35 ) 2 Total intangible assets $ 36,682 $ (7,460 ) 13 Intangible assets consisted of the following at December 31, 2016 (in thousands): Gross Carrying Accumulated Weighted Technology – developed $ 12,911 $ (1,468 ) 17 Patents 240 (208 ) 8 Customer relationships 22,555 (4,995 ) 11 Trademark/ tradename 711 — — Other intangibles 84 (24 ) 2 Total intangible assets $ 36,501 $ (6,695 ) 13 Amortization expense for amortized intangible assets was approximately $715,000 and $399,000 for the three months ended March 31, 2017 and 2016, respectively. As of March 31, 2017, the Company expects to record amortization expense as follows (in thousands): Years Ending Amortization Expense December 31, 2017 (nine months remaining) 2,265 December 31, 2018 2,832 December 31, 2019 2,799 December 31, 2020 2,494 December 31, 2021 2,190

Accrued Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2017
Accrued Liabilities	10. Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, 2017 December 31, 2016 Employee compensation $ 3,439 $ 5,586 Accrued interest payable 815 204 Accrued purchases 566 382 Taxes 1,604 1,692 Contingent consideration — 6,119 Royalties 857 248 Professional fees 494 411 Unearned revenue 441 408 Other accrued expenses 900 964 Total $ 9,116 $ 16,014

Long Term Debt

Long Term Debt	3 Months Ended
	Mar. 31, 2017
Long Term Debt	11. Long Term Debt The carrying value of the Company’s convertible senior notes is as follows: March 31, 2017 December 31, 2016 2.125% Convertible Senior Notes due 2021: Principal amount $ 115,000 $ 115,000 Unamortized debt discount (15,952 ) (16,777 ) Unamortized debt issuance costs (2,806 ) (2,951 ) Total convertible senior notes $ 96,242 $ 95,272 On May 24, 2016, the Company issued $115 million aggregate principal amount of its 2.125% Convertible Senior Notes due 2021 (the “Notes”). The net proceeds from the sale of the Notes, after deducting the underwriting discounts and commissions and other related offering expenses, were approximately $111.1 million. The Notes bear interest at the rate of 2.125% per annum, payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2016. The Notes will mature on June 1, 2021, unless earlier repurchased, redeemed or converted in accordance with their terms. Prior to March 1, 2021, the Notes will be convertible at the option of holders of the Notes only upon satisfaction of certain conditions and during certain periods, and thereafter, the notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, holders of the Notes will receive shares of the Company’s common stock, cash or a combination thereof, at the Company’s election. It is the Company’s current intent and policy to settle all conversions through combination settlement, which involves satisfying the principal amount outstanding with cash and any note conversion value over the principal amount in shares of the Company’s common stock. The conversion rate for the Notes will initially be 31.1813 shares of the Company’s common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $32.07 per common share, and is subject to adjustment under the terms of the Notes. Holders of the Notes may require the Company to repurchase their Notes upon the occurrence of a fundamental change prior to maturity for cash at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased plus accrued and unpaid interest, if any, to, but excluding, the repurchase date. The Company will not have the right to redeem the Notes prior to June 5, 2019, but may redeem the Notes, at its option, in whole or in part, on any business day on or after June 5, 2019 and prior to the maturity date if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides written notice of redemption. The redemption price will be equal to 100% of the principal amount of the principal amount of Notes to be redeemed plus accrued and unpaid interest to, but excluding, the redemption date. The Notes contain customary terms and events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving the Company) occurs and is continuing, the holders of at least 25% in aggregate principal amount of the outstanding Notes may declare 100% of the principal of, and any accrued and unpaid interest on, all of the Notes to be due and payable. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company, 100% of the principal of and accrued and unpaid interest, if any, on all of the Notes will become due and payable automatically. Notwithstanding the foregoing, the Notes provide that, to the extent the Company elects and for up to 270 days, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants consist exclusively of the right to receive additional interest on the Notes. The Company is not aware of any events of default, current events or market conditions that would allow holders to call or convert the Notes as of March 31, 2017. The cash conversion feature of the Notes required bifurcation from the Notes and was initially accounted for as an equity instrument classified to stockholders’ equity, as the conversion feature was determined to be clearly and closely related to the Company’s stock. Based on market data available for publicly traded, senior, unsecured corporate bonds issued by companies in the same industry and asset base and with similar maturity, the Company estimated the implied interest rate, assuming no conversion option. Assumptions used in the estimate represent what market participants would use in pricing the liability component, including market interest rates, credit standing, and yield curves, all of which are defined as Level 2 observable inputs. The estimated implied interest rate was applied to the Notes, which resulted in a fair value of the liability component of $96,289,000 upon issuance, calculated as the present value of implied future payments based on the $115 million aggregate principal amount. The equity component of the Notes was recognized as a debt discount, recorded in additional paid-in Interest expense recognized on the Notes during the three-month period ended March 31, 2017 includes $611,000, $825,000 and $145,000 for the contractual coupon interest, the accretion of the debt discount and the amortization of the debt issuance costs, respectively. The effective interest rate on the Notes is 6.6%, which includes the interest on the Notes, amortization of the debt discount and debt issuance costs. As of March 31, 2017, the carrying value of the Notes was approximately $96.2 million and the fair value of the principal was approximately $144.3 million. The fair value of the Notes was determined based on the most recent trade activity of the Notes as of March 31, 2017.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
Stock-Based Compensation	12. Stock-Based Compensation For the three months ended March 31, 2017 and 2016, the Company recorded stock-based compensation expense of approximately $1,531,000 and $922,000, 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 following table presents stock-based compensation expense included in the Company’s consolidated statements of comprehensive income (loss): Three Months Ended 2017 2016 Cost of product revenue $ 141 $ 60 Research and development 132 80 Selling, general and administrative 1,258 782 Total $ 1,531 $ 922 The 2012 Plan allows for the granting of incentive and nonqualified options to purchase shares of common stock, restricted stock and other equity awards. Incentive options granted to employees under the Plans generally vest over a three to five-year period, with 20%-33% non-employee The Company uses the Black-Scholes option pricing model to calculate the fair value of stock option awards on the grant date, and the Company uses the value of the common stock as of the grant date to value restricted stock units. 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 has no awards that are performance-based or subject to market conditions. The Company recognizes stock-based compensation expense for options that are ultimately expected to vest, and accordingly, such compensation expense has been adjusted for estimated forfeitures. Information regarding option activity for the three months ended March 31, 2017 under the Plans is summarized below: Options Weighted- Weighted- (in thousands) Aggregate Options outstanding at December 31, 2016 882,748 $ 16.88 Granted 86,215 32.40 Exercised (137,903 ) 9.67 Forfeited/cancelled (25,157 ) 21.31 Options outstanding at March 31, 2017 805,903 $ 19.68 7.08 $ 12,706 Options exercisable at March 31, 2017 406,859 $ 14.18 5.73 $ 8,659 Vested and expected to vest at March 31, 2017 (1) 791,227 $ 19.57 7.05 $ 12,530 (1) Represents the number of vested options as of March 31, 2017 plus the number of unvested options expected to vest as of March 31, 2017 based on the unvested outstanding options at March 31, 2017 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive The aggregate intrinsic value in the table above represents the total pre-tax in-the-money The weighted average grant date fair value of options granted during the three months ended March 31, 2017 and 2016 was $16.46 and $13.49, respectively. The total fair value of stock options that vested during the three months ended March 31, 2017 and 2016 was approximately $1,195,000 and $645,000, respectively. Information regarding restricted stock unit activity for the three months ended March 31, 2017 under the Plans is summarized below: Options Weighted- Weighted- (in thousands) Aggregate Restricted stock units outstanding at December 31, 2016 353,838 $ — Granted 125,067 — Exercised (63,811 ) — Forfeited/cancelled (10,313 ) — Restricted stock units outstanding at March 31, 2017 404,781 $ — 3.12 $ 14,248 Vested and expected to vest at March 31, 2017 (1) 378,579 $ — 3.01 $ 13,326 (1) Represents the number of vested restricted stock units as of March 31, 2017 plus the number of unvested restricted stock units expected to vest as of March 31, 2017 based on the unvested outstanding restricted stock units at March 31, 2017 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive The aggregate intrinsic value in the table above represents the total pre-tax The weighted average grant date fair value of restricted stock units granted during the three months ended March 31, 2017 and 2016 was $32.18 and $26.05, respectively. The total grant date fair value of restricted stock units that vested during the three months ended March 31, 2017 and 2016 was approximately $1,616,000 and $742,000, respectively. As of March 31, 2017, there was $14,921,000 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 2.94 years.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Taxes	13. Income Taxes The Company’s effective tax rate for the three months ended March 31, 2017 was 24.6% compared to 36.0% for the corresponding period in the prior year. For the current three month period, the effective tax rate was lower than the U.S. statutory tax rate of 34% primarily due to lower statutory tax rates in foreign jurisdictions. For the three month period ended March 31, 2016, the effective tax rate was higher than the U.S. statutory tax rate mainly due to the tax treatment of contingent consideration expense. At December 31, 2016, the Company had net operating loss carryforwards of approximately $48,550,000 in the U.S., net operating loss carryforwards of approximately €2,287,000 (approximately $2,407,000) in Germany, federal business tax credit carryforwards of $1,745,000 and state business tax credit carryforwards of approximately $442,000 available to reduce future domestic income taxes, if any. The net operating loss and business tax credits carryforwards will continue to expire at various dates through December 2036. The net operating loss and business tax credit carryforwards 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, 2016, the Company concluded that realization of deferred tax assets in the United States beyond December 31, 2016 is not more likely than not, and as such, the Company maintained a valuation allowance against its net U.S. deferred tax assets, after considerations for deferred tax liabilities which will not be utilized as a future source of income. ASU 2016-09 2016-09 In the first quarter of 2017, Repligen Germany GmbH was subject to a tax examination for the years 2012 through 2015. The examination was general in nature, covering all aspects of the subsidiary’s operations prior to the Atoll Acquisition on April 1, 2016. There were no material findings as a result of this examination, and the examination was closed by the German tax authorities. The Company’s tax returns are subject to examination by federal, state and international taxing authorities for the following periods: Jurisdiction Fiscal years subject to examination United States – federal and state 2013-2016 Sweden 2011-2016 Germany 2016

Fair Value Measurement

Fair Value Measurement	3 Months Ended
	Mar. 31, 2017
Fair Value Measurement	14. Fair Value Measurement In determining the fair value of its assets and liabilities, the Company uses various valuation approaches. The Company employs a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset or liability and are developed based on the best information available in the circumstances. The fair value hierarchy is broken down into three levels based on the source of inputs as follows: Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access Level 2 – Valuations based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and models for which all significant inputs are observable, either directly or indirectly Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement The availability of observable inputs can vary among the various types of financial assets and liabilities. To the extent that the valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for financial statement disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is categorized is based on the lowest level input that is significant to the overall fair value measurement. The Company’s fixed income investments are comprised of obligations of U.S. government agencies and corporate marketable securities. These investments have been initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation models, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. At least annually, the Company validates the prices provided by third party pricing services by reviewing their pricing methods and matrices, obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming that the relevant markets are active. The Company did not adjust or override any fair value measurements provided by the pricing services as of March 31, 2017. The following fair value hierarchy table presents information about each major category of the Company’s assets measured at fair value on a recurring basis as of March 31, 2017 (in thousands): Fair value measurement at reporting date using: Quoted prices in Significant Significant Total Assets: Money market funds $ 85,292 $ — $ — $ 85,292 U.S. Government and agency securities 402 — — 402 Corporate and other debt securities — 11,778 — 11,778 Total $ 85,694 $ 11,778 $ — $ 97,472 The Company has no other assets or liabilities for which fair value measurement is either required or has been elected to be applied. As of December 31, 2016, the Company had accrued liabilities with a fair value of $6,119,000 related to contingent consideration in connection with the Refine and Atoll business combinations. The contingent consideration related to Refine was based on actual 2016 revenues. The contingent consideration related to Atoll was based on meeting revenue growth targets in 2016. These valuations are Level 3 valuations, as the primary inputs are unobservable. All contingent consideration liabilities were paid in the first quarter of 2017. The following table provides a rollforward of the fair value of contingent consideration (in thousands): Balance at December 31, 2016 $ 6,119 Payments (6,119 ) Balance at March 31, 2017 $ — In May 2016, the Company issued $115 million aggregate principal amount of the Notes due June 1, 2021. Interest is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2016. As of March 31, 2017, the carrying value of the Notes was $96.2 million, net of unamortized discount, and the fair value of the Notes was approximately $144.3 million. The fair value of the Notes was determined based on the most recent trade activity of the Notes as of March 31, 2017. These valuations are Level 1 valuations, as the valuations are based on unadjusted quoted prices in active markets that the Company has the ability to access. The Notes are discussed in more detail in Note 11, “Long Term Debt . There were no re-measurements

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies	15. Commitments and Contingencies Future minimum rental commitments under the Company’s leases as of March 31, 2017 are as follows (in thousands): Minimum Rental 2017 (nine months remaining) $ 2,028 2018 2,647 2019 2,506 2020 2,500 2021 2,467 Thereafter 1,705

Segment Reporting

Segment Reporting	3 Months Ended
	Mar. 31, 2017
Segment Reporting	16. 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 2017 2016 United States 38 % 30 % Sweden 27 % 24 % Ireland 10 % 4 % United Kingdom 5 % 13 % Other 20 % 29 % Total 100 % 100 % Revenue from significant customers as a percentage of the Company’s total revenue is as follows: Three months ended 2017 2016 GE Healthcare 27 % 24 % MilliporeSigma 21 % 28 % Significant accounts receivable balances as a percentage of the Company’s total trade accounts receivable are as follows: March 31, 2017 December 31, GE Healthcare 25 % 26 % MilliporeSigma 15 % 8 %

Revenue Recognition (Policies)

Revenue Recognition (Policies)	3 Months Ended
	Mar. 31, 2017
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. On 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, our 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, At the time of sale, the Company also evaluates the need to accrue for warranty and sales returns. The supply agreements the Company has with its customers and the related purchase orders identify the terms and conditions of each sale and the price of the goods ordered. Due to the nature of the sales arrangements, inventory produced for sale is tested for quality specifications prior to shipment. Since the product is manufactured to order and in compliance with required specifications prior to shipment, the likelihood of sales return, warranty or other issues is largely diminished. Furthermore, there is no customer right of return in our sales agreements. Sales returns and warranty issues are infrequent and have not had a material impact on the Company’s financial statements historically. Shipping and handling fees are recorded as a component of product revenue, with the associated costs recorded as a component of cost of product revenue. Therapeutics Licensing Agreements Activities under licensing agreements are evaluated in accordance with ASC 605-25 • The delivered item or items have value to the customer on a stand-alone basis; and • 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, • 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	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 (Tables)

Acquisitions (Tables)	3 Months Ended
	Mar. 31, 2017
Atoll GmbH
Consideration Transferred	The total consideration transferred follows (in thousands): Cash consideration, less $74 of working capital adjustments $ 10,176 Value of common stock issued 14,138 Estimated fair value of contingent consideration 952 Total consideration transferred $ 25,266
Components and Allocation of Purchase Price	The components and allocation of the purchase price consists of the following amounts (in thousands): Cash and cash equivalents $ 1,409 Accounts receivable 697 Inventory 155 Other current assets 169 Fixed assets, net 114 Customer relationships 5,318 Developed technology 2,175 Non-competition 57 Trademark and trade name 11 Deferred tax assets 885 Accounts payable and other liabilities assumed (599 ) Deferred tax liabilities (2,202 ) Goodwill 17,077 Net assets acquired $ 25,266
TangenX Technology Corporation
Consideration Transferred	The total consideration transferred follows (in thousands): Cash consideration $ 37,532 Less: working capital adjustment (467 ) Net assets acquired $ 37,065
Components and Allocation of Purchase Price	The components and allocation of the purchase price consists of the following amounts (in thousands): Cash and cash equivalents $ 1,218 Accounts receivable 459 Other receivables 111 Inventory 936 Other current assets 50 Fixed assets, net 215 Customer relationships 6,192 Developed technology 6,044 Non-competition 21 Trademark and trade name 11 Accounts payable and other liabilities assumed (3,083 ) Deferred tax liabilities (4,525 ) Goodwill 29,416 Net assets acquired $ 37,065
Unaudited Supplemental Pro Forma Information	The following table presents unaudited supplemental pro forma information as if the TangenX Acquisition had occurred as of January 1, 2016 (in thousands, except per share data): March 31, 2017 March 31, 2016 Total revenue 30,590 26,952 Net income 3,608 5,118 Earnings per share: Basic $ 0.11 $ 0.15 Diluted $ 0.10 $ 0.15

Accumulated Other Comprehensi24

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2017
Summary of Changes in Accumulated Other Comprehensive Income	The following table summarizes the changes in accumulated other comprehensive income by component (in thousands): (In thousands) Unrealized gain Foreign currency Total Balance at December 31, 2016 $ (5 ) $ (13,744 ) $ (13,749 ) Other comprehensive income 4 1,027 1,031 Balance at March 31, 2017 $ (1 ) $ (12,717 ) $ (12,718 )

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Basic and Diluted Weighted Average Shares Outstanding	Basic and diluted weighted average shares outstanding were as follows: Three months ended 2017 2016 Weighted average common shares 33,891,702 33,024,681 Dilutive common stock options 490,620 468,894 Weighted average common shares, assuming dilution 34,382,322 33,493,575

Cash, Cash Equivalents and Ma26

Cash, Cash Equivalents and Marketable Securities (Tables)	3 Months Ended
	Mar. 31, 2017
Investments in Marketable Securities	Investments in marketable securities consisted of the following at March 31, 2017 (in thousands): March 31, 2017 Amortized Gross Gross Fair Marketable securities: U.S. Government and agency securities $ 402 $ — $ — $ 402 Corporate and other debt securities 11,779 1 (2 ) 11,778 Total $ 12,181 $ 1 $ (2 ) $ 12,180 Investments in marketable securities consisted of the following at December 31, 2016 (in thousands): December 31, 2016 Amortized Gross Gross Fair Marketable securities: U.S. Government and agency securities $ 807 $ — $ — $ 807 Corporate and other debt securities 18,745 2 (7 ) 18,740 Total $ 19,552 $ 2 $ (7 ) $ 19,547

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of Inventories	Inventories consist of the following (in thousands): March 31, 2017 December 31, Raw Materials $ 15,417 $ 14,954 Work-in-process 2,769 2,789 Finished products 5,771 6,953 Total $ 23,957 $ 24,696

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment	Property, plant and equipment consist of the following (in thousands): March 31, 2017 December 31, 2016 Leasehold improvements $ 15,196 $ 14,592 Equipment 15,501 15,214 Furniture and fixtures 3,418 3,218 Construction in progress 1,142 1,264 Total property, plant and equipment 35,257 34,288 Less: accumulated depreciation (19,884 ) (19,332 ) Property, plant and equipment, net $ 15,373 $ 14,956

Intangible Assets (Tables)

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2017
Intangible assets	Intangible assets consisted of the following at March 31, 2017 (in thousands): Gross Carrying Accumulated Weighted Technology – developed $ 12,949 $ (1,685 ) 17 Patents 240 (215 ) 8 Customer relationships 22,697 (5,525 ) 11 Trademark 711 — — Other intangibles 85 (35 ) 2 Total intangible assets $ 36,682 $ (7,460 ) 13 Intangible assets consisted of the following at December 31, 2016 (in thousands): Gross Carrying Accumulated Weighted Technology – developed $ 12,911 $ (1,468 ) 17 Patents 240 (208 ) 8 Customer relationships 22,555 (4,995 ) 11 Trademark/ tradename 711 — — Other intangibles 84 (24 ) 2 Total intangible assets $ 36,501 $ (6,695 ) 13
Schedule of Amortization Expense for Amortized Intangible Assets	As of March 31, 2017, the Company expects to record amortization expense as follows (in thousands): Years Ending Amortization Expense December 31, 2017 (nine months remaining) 2,265 December 31, 2018 2,832 December 31, 2019 2,799 December 31, 2020 2,494 December 31, 2021 2,190

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2017
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): March 31, 2017 December 31, 2016 Employee compensation $ 3,439 $ 5,586 Accrued interest payable 815 204 Accrued purchases 566 382 Taxes 1,604 1,692 Contingent consideration — 6,119 Royalties 857 248 Professional fees 494 411 Unearned revenue 441 408 Other accrued expenses 900 964 Total $ 9,116 $ 16,014

Long Term Debt (Tables)

Long Term Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Carrying Value of Convertible Senior Notes	The carrying value of the Company’s convertible senior notes is as follows: March 31, 2017 December 31, 2016 2.125% Convertible Senior Notes due 2021: Principal amount $ 115,000 $ 115,000 Unamortized debt discount (15,952 ) (16,777 ) Unamortized debt issuance costs (2,806 ) (2,951 ) Total convertible senior notes $ 96,242 $ 95,272

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Stock-Based Compensation Expense	The following table presents stock-based compensation expense included in the Company’s consolidated statements of comprehensive income (loss): Three Months Ended 2017 2016 Cost of product revenue $ 141 $ 60 Research and development 132 80 Selling, general and administrative 1,258 782 Total $ 1,531 $ 922
Summary of Option Activity	Information regarding option activity for the three months ended March 31, 2017 under the Plans is summarized below: Options Weighted- Weighted- (in thousands) Aggregate Options outstanding at December 31, 2016 882,748 $ 16.88 Granted 86,215 32.40 Exercised (137,903 ) 9.67 Forfeited/cancelled (25,157 ) 21.31 Options outstanding at March 31, 2017 805,903 $ 19.68 7.08 $ 12,706 Options exercisable at March 31, 2017 406,859 $ 14.18 5.73 $ 8,659 Vested and expected to vest at March 31, 2017 (1) 791,227 $ 19.57 7.05 $ 12,530 (1) Represents the number of vested options as of March 31, 2017 plus the number of unvested options expected to vest as of March 31, 2017 based on the unvested outstanding options at March 31, 2017 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive
Summary of Restricted Stock Unit Activity	Information regarding restricted stock unit activity for the three months ended March 31, 2017 under the Plans is summarized below: Options Weighted- Weighted- (in thousands) Aggregate Restricted stock units outstanding at December 31, 2016 353,838 $ — Granted 125,067 — Exercised (63,811 ) — Forfeited/cancelled (10,313 ) — Restricted stock units outstanding at March 31, 2017 404,781 $ — 3.12 $ 14,248 Vested and expected to vest at March 31, 2017 (1) 378,579 $ — 3.01 $ 13,326 (1) Represents the number of vested restricted stock units as of March 31, 2017 plus the number of unvested restricted stock units expected to vest as of March 31, 2017 based on the unvested outstanding restricted stock units at March 31, 2017 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2017
Summary of Tax Returns Periods Subject to Examination by Federal, State and International Taxing Authorities	The Company’s tax returns are subject to examination by federal, state and international taxing authorities for the following periods: Jurisdiction Fiscal years subject to examination United States – federal and state 2013-2016 Sweden 2011-2016 Germany 2016

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2017
Assets Measured at Fair Value on Recurring Basis	The following fair value hierarchy table presents information about each major category of the Company’s assets measured at fair value on a recurring basis as of March 31, 2017 (in thousands): Fair value measurement at reporting date using: Quoted prices in Significant Significant Total Assets: Money market funds $ 85,292 $ — $ — $ 85,292 U.S. Government and agency securities 402 — — 402 Corporate and other debt securities — 11,778 — 11,778 Total $ 85,694 $ 11,778 $ — $ 97,472
Rollforward of Fair Value of Contingent Consideration	The following table provides a rollforward of the fair value of contingent consideration (in thousands): Balance at December 31, 2016 $ 6,119 Payments (6,119 ) Balance at March 31, 2017 $ —

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2017
Future Minimum Rental Commitments under Company's Leases	Future minimum rental commitments under the Company’s leases as of March 31, 2017 are as follows (in thousands): Minimum Rental 2017 (nine months remaining) $ 2,028 2018 2,647 2019 2,506 2020 2,500 2021 2,467 Thereafter 1,705

Segment Reporting (Tables)

Segment Reporting (Tables)	3 Months Ended
	Mar. 31, 2017
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 2017 2016 GE Healthcare 27 % 24 % MilliporeSigma 21 % 28 %
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 2017 2016 United States 38 % 30 % Sweden 27 % 24 % Ireland 10 % 4 % United Kingdom 5 % 13 % Other 20 % 29 % Total 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 are as follows: March 31, 2017 December 31, GE Healthcare 25 % 26 % MilliporeSigma 15 % 8 %

Basis of Presentation - Additio

Basis of Presentation - Additional Information (Detail) - ASU No. 2016-09 - U S Federal And State Jurisdiction $ in Millions	Jan. 01, 2017USD ($)
Revisions [Line Items]
Net operating loss carry forwards	$ 5.3
Increase in valuation allowance	5.3
Impact of adopting ASU 2016-09 on retained earnings	$ 0

Acquisitions - Additional Infor

Acquisitions - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	Dec. 14, 2016	Apr. 01, 2016	Dec. 31, 2016	Mar. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Common stock, par value			$ 0.01	$ 0.01	$ 0.01
Finite lived intangible asset, useful life				13 years	13 years
Goodwill			$ 59,548	$ 59,784	$ 59,548
Customer relationships
Business Acquisition [Line Items]
Finite lived intangible asset, useful life				11 years	11 years
Technology - developed
Business Acquisition [Line Items]
Finite lived intangible asset, useful life				17 years	17 years
Atoll GmbH
Business Acquisition [Line Items]
Stock consideration		538,700
Common stock, par value		$ 0.01
Value of common stock issued		$ 14,138
Business combination, consideration transferred		25,266
Cash consideration		10,176
Working capital adjustments		74
Earnout consideration		1,100
Estimated fair value of contingent consideration		952
Fair value of net assets acquired		25,266
Business acquisition, transaction costs		1,262
Goodwill		17,077
Atoll GmbH | Up Front Payment
Business Acquisition [Line Items]
Cash consideration		10,200
Atoll GmbH | Customer relationships
Business Acquisition [Line Items]
Fair value of acquired finite lived intangible assets		$ 5,318
Finite lived intangible asset, useful life		13 years
Atoll GmbH | Technology - developed
Business Acquisition [Line Items]
Fair value of acquired finite lived intangible assets		$ 2,175
Finite lived intangible asset, useful life		14 years
Atoll GmbH | Non-competition agreements
Business Acquisition [Line Items]
Fair value of acquired finite lived intangible assets		$ 57
Finite lived intangible asset, useful life		2 years
Atoll GmbH | Trademark
Business Acquisition [Line Items]
Fair value of acquired finite lived intangible assets		$ 11
Finite lived intangible asset, useful life		2 years
TangenX Technology Corporation
Business Acquisition [Line Items]
Business combination, consideration transferred	$ 37,065
Cash consideration	37,532
Working capital adjustments	467
Fair value of net assets acquired	37,065
Business acquisition, transaction costs	1,337
Goodwill	29,416
Business acquisition, revenue			$ 119	$ 1,973
TangenX Technology Corporation | Customer relationships
Business Acquisition [Line Items]
Fair value of acquired finite lived intangible assets	$ 6,192
Finite lived intangible asset, useful life	13 years
TangenX Technology Corporation | Technology - developed
Business Acquisition [Line Items]
Fair value of acquired finite lived intangible assets	$ 6,044
Finite lived intangible asset, useful life	20 years
TangenX Technology Corporation | Non-competition agreements
Business Acquisition [Line Items]
Fair value of acquired finite lived intangible assets	$ 21
Finite lived intangible asset, useful life	5 years
TangenX Technology Corporation | Trademark
Business Acquisition [Line Items]
Fair value of acquired finite lived intangible assets	$ 11
Finite lived intangible asset, useful life	2 years

Consideration Transferred (Deta

Consideration Transferred (Detail) - USD ($) $ in Thousands	Dec. 14, 2016	Apr. 01, 2016
Atoll GmbH
Business Acquisition [Line Items]
Cash consideration		$ 10,176
Value of common stock issued		14,138
Working capital adjustment		(74)
Estimated fair value of contingent consideration		952
Total consideration transferred		$ 25,266
TangenX Technology Corporation
Business Acquisition [Line Items]
Cash consideration	$ 37,532
Working capital adjustment	(467)
Total consideration transferred	$ 37,065

Consideration Transferred (Pare

Consideration Transferred (Parenthetical) (Detail) $ in Thousands	Apr. 01, 2016USD ($)
Atoll GmbH
Business Acquisition [Line Items]
Working capital adjustment	$ 74

Components and Allocation of Pu

Components and Allocation of Purchase Price (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Dec. 14, 2016	Apr. 01, 2016
Business Acquisition [Line Items]
Goodwill	$ 59,784	$ 59,548
Atoll GmbH
Business Acquisition [Line Items]
Cash and cash equivalents				$ 1,409
Accounts receivable				697
Inventory				155
Other current assets				169
Fixed assets, net				114
Deferred tax assets				885
Accounts payable and other liabilities assumed				(599)
Deferred tax liabilities				(2,202)
Goodwill				17,077
Net assets acquired				25,266
Atoll GmbH | Customer relationships
Business Acquisition [Line Items]
Business combination, intangible assets				5,318
Atoll GmbH | Technology - developed
Business Acquisition [Line Items]
Business combination, intangible assets				2,175
Atoll GmbH | Non-competition agreements
Business Acquisition [Line Items]
Business combination, intangible assets				57
Atoll GmbH | Trademark
Business Acquisition [Line Items]
Business combination, intangible assets				$ 11
TangenX Technology Corporation
Business Acquisition [Line Items]
Cash and cash equivalents			$ 1,218
Accounts receivable			459
Other receivables			111
Inventory			936
Other current assets			50
Fixed assets, net			215
Accounts payable and other liabilities assumed			(3,083)
Deferred tax liabilities			(4,525)
Goodwill			29,416
Net assets acquired			37,065
TangenX Technology Corporation | Customer relationships
Business Acquisition [Line Items]
Business combination, intangible assets			6,192
TangenX Technology Corporation | Technology - developed
Business Acquisition [Line Items]
Business combination, intangible assets			6,044
TangenX Technology Corporation | Non-competition agreements
Business Acquisition [Line Items]
Business combination, intangible assets			21
TangenX Technology Corporation | Trademark
Business Acquisition [Line Items]
Business combination, intangible assets			$ 11

Unaudited Supplemental Pro Form

Unaudited Supplemental Pro Forma Information (Detail) - TangenX Technology Corporation - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Business Acquisition [Line Items]
Total revenue	$ 30,590	$ 26,952
Net income	$ 3,608	$ 5,118
Basic	$ 0.11	$ 0.15
Diluted	$ 0.10	$ 0.15

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Clinical Development
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Potential milestone payments to be received	$ 60
Milestone payment substantive	60
Initial Commercial Sales
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Potential milestone payments to be received	100
BioMarin Pharmaceutical, Inc. | Asset Purchase Agreement
Revenue Recognition, Multiple-deliverable Arrangements [Line Items]
Potential milestone payments to be received	$ 160

Change in Accumulated Other Com

Change in Accumulated Other Comprehensive Income (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ 168,764
Other comprehensive income	1,031
Ending Balance	176,791
Unrealized Gain (Loss) on Investments
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(5)
Other comprehensive income	4
Ending Balance	(1)
Foreign Currency Translation Gain (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(13,744)
Other comprehensive income	1,027
Ending Balance	(12,717)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(13,749)
Ending Balance	$ (12,718)

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Earnings Per Share [Line Items]
Participating securities outstanding	0	0
Stock options, outstanding	805,903		882,748
Stock options, weighted average exercise price	$ 19.68		$ 16.88
Common stock excluded from calculation of diluted earnings per share	458,685	520,030
Option To Purchase Common Stock
Earnings Per Share [Line Items]
Stock options, outstanding	805,903	1,312,508
Stock options, weighted average exercise price	$ 19.68	$ 11.50
Restricted Stock Units (RSUs)
Earnings Per Share [Line Items]
Common stock excluded from calculation of diluted earnings per share	404,781

Basic and Diluted Weighted Aver

Basic and Diluted Weighted Average Shares Outstanding (Detail) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Weighted Average Number of Shares Outstanding [Line Items]
Weighted average common shares	33,891,702	33,024,681
Dilutive common stock options	490,620	468,894
Weighted average common shares, assuming dilution	34,382,322	33,493,575

Cash, Cash Equivalents and Ma47

Cash, Cash Equivalents and Marketable Securities - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)Investment	Mar. 31, 2016USD ($)	Dec. 31, 2016USD ($)
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	2 months 9 days
Long-term marketable securities	$ 0		$ 0
Number of debt securities in unrealized loss positions | Investment	7
Debt securities in unrealized loss positions, total unrealized loss	$ 2,000
Debt securities in unrealized loss positions, total fair market value	3,946,000
Credit risk	0
Gain (loss) on investments	$ 0	$ 0
Minimum
Cash, cash equivalents and marketable securities [Line Items]
Short-term marketable securities, minimum original maturity term	90 days

Investments in Marketable Secur

Investments in Marketable Securities (Detail) - Marketable securities - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 12,181	$ 19,552
Gross Unrealized Gain	1	2
Gross Unrealized Loss	(2)	(7)
Fair Value	12,180	19,547
U.S. Government and agency securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	402	807
Fair Value	402	807
Corporate and other debt securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	11,779	18,745
Gross Unrealized Gain	1	2
Gross Unrealized Loss	(2)	(7)
Fair Value	$ 11,778	$ 18,740

Inventories - Additional Inform

Inventories - Additional Information (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Inventory [Line Items]
Reserves for excess and obsolete inventory	$ 385,000	$ 435,000

Schedule of Inventories (Detail

Schedule of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Inventory [Line Items]
Raw materials	$ 15,417	$ 14,954
Work-in-process	2,769	2,789
Finished products	5,771	6,953
Total	$ 23,957	$ 24,696

Property, Plant and Equipment51

Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Leasehold improvements	$ 15,196	$ 14,592
Equipment	15,501	15,214
Furniture and fixtures	3,418	3,218
Construction in progress	1,142	1,264
Total property, plant and equipment	35,257	34,288
Less: accumulated depreciation	(19,884)	(19,332)
Property, plant and equipment, net	$ 15,373	$ 14,956

Property, Plant and Equipment -

Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Property, Plant and Equipment [Line Items]
Depreciation expense of property and equipment	$ 928	$ 751

Other Intangible Assets (Detail

Other Intangible Assets (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Intangible Assets [Line Items]
Gross Carrying Amount	$ 36,682	$ 36,501
Accumulated Amortization	$ (7,460)	$ (6,695)
Weighted Average Useful Life (in years)	13 years	13 years
Technology - developed
Intangible Assets [Line Items]
Gross Carrying Amount	$ 12,949	$ 12,911
Accumulated Amortization	$ (1,685)	$ (1,468)
Weighted Average Useful Life (in years)	17 years	17 years
Patents
Intangible Assets [Line Items]
Gross Carrying Amount	$ 240	$ 240
Accumulated Amortization	$ (215)	$ (208)
Weighted Average Useful Life (in years)	8 years	8 years
Customer relationships
Intangible Assets [Line Items]
Gross Carrying Amount	$ 22,697	$ 22,555
Accumulated Amortization	$ (5,525)	$ (4,995)
Weighted Average Useful Life (in years)	11 years	11 years
Other intangibles
Intangible Assets [Line Items]
Gross Carrying Amount	$ 85	$ 84
Accumulated Amortization	$ (35)	$ (24)
Weighted Average Useful Life (in years)	2 years	2 years
Trademark
Intangible Assets [Line Items]
Gross Carrying Amount, indefinite lived intangible assets	$ 711
Trademark
Intangible Assets [Line Items]
Gross Carrying Amount, indefinite lived intangible assets		$ 711

Intangible Assets - Additional

Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 715	$ 399

Amortization Expense for Amorti

Amortization Expense for Amortized Intangible Assets (Detail) $ in Thousands	Mar. 31, 2017USD ($)
Finite-Lived Intangible Assets [Line Items]
Amortization Expense, December 31, 2017 (nine months remaining)	$ 2,265
Amortization Expense, December 31, 2018	2,832
Amortization Expense, December 31, 2019	2,799
Amortization Expense, December 31, 2020	2,494
Amortization Expense, December 31, 2021	$ 2,190

Schedule of Accrued Liabilities

Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Schedule of Accrued Liabilities [Line Items]
Employee compensation	$ 3,439	$ 5,586
Accrued interest payable	815	204
Accrued purchases	566	382
Taxes	1,604	1,692
Contingent consideration		6,119
Royalties	857	248
Professional fees	494	411
Unearned revenue	441	408
Other accrued expenses	900	964
Total	$ 9,116	$ 16,014

Carrying Value of Convertible S

Carrying Value of Convertible Senior Notes (Detail) - 2.125% Convertible Senior Notes due 2021 - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Principal amount	$ 115,000	$ 115,000
Unamortized debt discount	(15,952)	(16,777)
Unamortized debt issuance costs	(2,806)	(2,951)
Total convertible senior notes	$ 96,242	$ 95,272

Carrying Value of Convertible58

Carrying Value of Convertible Senior Notes (Parenthetical) (Detail) - 2.125% Convertible Senior Notes due 2021	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	May 24, 2016
Debt Instrument [Line Items]
Notes, interest rate	2.125%		2.125%
Notes, due date	Jun. 1, 2021	Jun. 1, 2021

Long Term Debt - Additional Inf

Long Term Debt - Additional Information (Detail)	May 24, 2016USD ($)d$ / shares	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of convertible senior notes, net of costs		$ 111,100,000
Accretion of the debt discount		$ 970,000
2.125% Convertible Senior Notes due 2021
Debt Instrument [Line Items]
Notes issued	$ 115,000,000
Notes, interest rate	2.125%	2.125%
Notes, frequency of periodic payment		Semi-annually
Notes, date of first required payment		Dec. 1, 2016
Notes, due date		Jun. 1, 2021	Jun. 1, 2021
Notes conversion ratio per $1,000 principal amount	31.1813
Notes initial conversion price | $ / shares	$ 32.07
Debt covenants debt default holder percent to declare all notes due minimum	25.00%
Number of days within which entity fails to satisfy obligations considered as event of default	270 days
Notes issued, fair value	$ 96,289,000
Contractual coupon interest		$ 611,000
Accretion of the debt discount		825,000
Amortization of the debt issuance costs		$ 145,000
Effective interest rate on the Notes		6.60%
Notes, carrying value		$ 96,242,000	$ 95,272,000
Fair value of the note		$ 144,300,000
2.125% Convertible Senior Notes due 2021 | On any business day on or after June 5, 2019 and prior to the maturity date
Debt Instrument [Line Items]
Notes threshold percentage of stock price trigger	130.00%
Notes threshold trading days | d	20
Notes threshold consecutive trading days	30 days
Notes redemption price	100.00%

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2012	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 1,531	$ 922
Stock options, outstanding	805,903			882,748
Number of shares available for future grant	1,531,010
Closing price of common stock	$ 35.20
Weighted average grant date fair value of share-based awards granted	$ 16.46	$ 13.49
Total fair value of stock options vested	$ 1,195	$ 645
Total unrecognized compensation cost	$ 14,921
Unrecognized compensation cost, weighted average remaining requisite service period	2 years 11 months 9 days
Employee Stock Option | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incentive options, vesting period			3 years
Employee Stock Option | Minimum | Vest Over Three Year
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Incentive options, vesting percentage			20.00%
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 | Maximum | 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
Option To Purchase Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options, outstanding	805,903	1,312,508
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units, outstanding	404,781			353,838
Closing price of common stock	$ 35.20
Aggregate intrinsic value of restricted stock units exercised	$ 2,064	$ 1,009
Weighted average grant date fair value of restricted stock units granted	$ 32.18	$ 26.05
Total grant date fair value of restricted stock units vested	$ 1,616	$ 742

Stock-Based Compensation Expens

Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,531	$ 922
Cost of product revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	141	60
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	132	80
Selling, general and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 1,258	$ 782

Summary of Option Activity (Det

Summary of Option Activity (Detail) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Options Outstanding
Options outstanding at December 31, 2016 | shares	882,748
Granted | shares	86,215
Exercised | shares	(137,903)
Forfeited/cancelled | shares	(25,157)
Options outstanding at March 31, 2017 | shares	805,903
Options exercisable at March 31, 2017 | shares	406,859
Vested and expected to vest at March 31, 2017 | shares	791,227	[1]
Weighted-Average Exercise Price Per Share
Options outstanding at December 31, 2016 | $ / shares	$ 16.88
Granted | $ / shares	32.40
Exercised | $ / shares	9.67
Forfeited/cancelled | $ / shares	21.31
Options outstanding at March 31, 2017 | $ / shares	19.68
Options exercisable at March 31, 2017 | $ / shares	14.18
Vested and expected to vest at March 31, 2017 | $ / shares	$ 19.57	[1]
Weighted-Average Remaining Contractual Term (in years)
Options outstanding at March 31, 2017	7 years 29 days
Options exercisable at March 31, 2017	5 years 8 months 23 days
Vested and expected to vest at March 31, 2017	7 years 18 days	[1]
Aggregate Intrinsic Value
Options outstanding at March 31, 2017 | $	$ 12,706
Options exercisable at March 31, 2017 | $	8,659
Vested and expected to vest at March 31, 2017 | $	$ 12,530	[1]
[1]	Represents the number of vested options as of March 31, 2017 plus the number of unvested options expected to vest as of March 31, 2017 based on the unvested outstanding options at March 31, 2017 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 Option Activity (Par

Summary of Option Activity (Parenthetical) (Detail) - Employee Stock Option	Mar. 31, 2017
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%

Summary of Restricted Stock Uni

Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units (RSUs) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)shares
Options Outstanding
Restricted stock units outstanding at December 31, 2016	353,838
Granted	125,067
Exercised	(63,811)
Forfeited/cancelled	(10,313)
Restricted stock units outstanding at March 31, 2017	404,781
Vested and expected to vest at March 31, 2017	378,579	[1]
Weighted-Average Remaining Contractual Term (in years)
Restricted stock units outstanding at March 31, 2017	3 years 1 month 13 days
Vested and expected to vest at March 31, 2017	3 years 4 days	[1]
Aggregate Intrinsic Value
Restricted stock units outstanding at March 31, 2017 | $	$ 14,248
Vested and expected to vest at March 31, 2017 | $	$ 13,326	[1]
[1]	Represents the number of vested restricted stock units as of March 31, 2017 plus the number of unvested restricted stock units expected to vest as of March 31, 2017 based on the unvested outstanding restricted stock units at March 31, 2017 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 Restricted Stock U65

Summary of Restricted Stock Unit Activity (Parenthetical) (Detail) - Restricted Stock Units (RSUs)	Mar. 31, 2017
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%

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) € in Thousands, $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016USD ($)	Jan. 01, 2017USD ($)	Dec. 31, 2016EUR (€)
Income Taxes [Line Items]
Effective tax rate	24.60%	36.00%
U.S. statutory tax rate	34.00%	34.00%
Latest Tax Year
Income Taxes [Line Items]
Net operating loss and business tax credit carry forwards expiration date			At various dates through December 2036
Domestic Tax Authority
Income Taxes [Line Items]
Business tax credits carry forwards			$ 1,745
State
Income Taxes [Line Items]
Business tax credits carry forwards			442
ASU No. 2016-09 | U S Federal And State Jurisdiction
Income Taxes [Line Items]
Net operating loss carry forwards				$ 5,300
Increase in valuation allowance				5,300
Impact of adopting ASU 2016-09 on retained earnings				$ 0
United States
Income Taxes [Line Items]
Net operating loss carry forwards			48,550
Germany
Income Taxes [Line Items]
Net operating loss carry forwards			$ 2,407		€ 2,287

Summary of Tax Returns Periods

Summary of Tax Returns Periods Subject to Examination by Federal, State and International Taxing Authorities (Detail)	3 Months Ended
	Mar. 31, 2017
United States | Earliest Tax Year [Member]
Income Tax Examination [Line Items]
Fiscal year subject to examination	2,013
United States | Latest Tax Year
Income Tax Examination [Line Items]
Fiscal year subject to examination	2,016
Sweden | Earliest Tax Year [Member]
Income Tax Examination [Line Items]
Fiscal year subject to examination	2,011
Sweden | Latest Tax Year
Income Tax Examination [Line Items]
Fiscal year subject to examination	2,016
Germany | Latest Tax Year
Income Tax Examination [Line Items]
Fiscal year subject to examination	2,016

Major Category of Assets Measur

Major Category of Assets Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring $ in Thousands	Mar. 31, 2017USD ($)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	$ 97,472
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	85,292
U.S. Government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	402
Corporate and other debt securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	11,778
Quoted prices in active markets for identical assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	85,694
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	85,292
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	402
Significant other observable inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	11,778
Significant other observable inputs (Level 2) | Corporate and other debt securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Assets	$ 11,778

Fair Value Measurement - Additi

Fair Value Measurement - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	May 24, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of other assets	$ 0
Fair value of other liabilities	$ 0
Accrued liability contingent consideration		$ 6,119,000
2.125% Convertible Senior Notes due 2021
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Principal amount			$ 115,000,000
Notes, due date	Jun. 1, 2021	Jun. 1, 2021
Notes, frequency of periodic payment	Semi-annually
Notes, date of first required payment	Dec. 1, 2016
Total convertible senior notes	$ 96,242,000	$ 95,272,000
Fair value of convertible senior notes	$ 144,300,000

Rollforward of Fair Value of Co

Rollforward of Fair Value of Contingent Consideration (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance at December 31, 2016	$ 6,119
Payments	(6,119)
Balance at March 31, 2017	$ 0

Future Minimum Rental Commitmen

Future Minimum Rental Commitments under Company's Leases (Detail) $ in Thousands	Mar. 31, 2017USD ($)
Operating Leased Assets [Line Items]
2017 (nine months remaining)	$ 2,028
2,018	2,647
2,019	2,506
2,020	2,500
2,021	2,467
Thereafter	$ 1,705

Segment Reporting - Additional

Segment Reporting - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017Segment
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
	Mar. 31, 2017	Mar. 31, 2016
Concentration Risk [Line Items]
Revenues, percentage by country	100.00%	100.00%
United States
Concentration Risk [Line Items]
Revenues, percentage by country	38.00%	30.00%
Sweden
Concentration Risk [Line Items]
Revenues, percentage by country	27.00%	24.00%
Ireland
Concentration Risk [Line Items]
Revenues, percentage by country	10.00%	4.00%
United Kingdom
Concentration Risk [Line Items]
Revenues, percentage by country	5.00%	13.00%
Other
Concentration Risk [Line Items]
Revenues, percentage by country	20.00%	29.00%

Percentage of Revenue from Sign

Percentage of Revenue from Significant Customers (Detail) - Customer Concentration Risk - Sales Revenue	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
GE Healthcare
Revenue, Major Customer [Line Items]
Revenue from significant customers as a percentage of total revenue	27.00%	24.00%
MilliporeSigma
Revenue, Major Customer [Line Items]
Revenue from significant customers as a percentage of total revenue	21.00%	28.00%

Percentage of Accounts Receivab

Percentage of Accounts Receivable by Significant Customers (Detail) - Customer Concentration Risk - Accounts Receivable	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
GE Healthcare
Concentration Risk [Line Items]
Accounts receivable, percentage by customer	25.00%	26.00%
MilliporeSigma
Concentration Risk [Line Items]
Accounts receivable, percentage by customer	15.00%	8.00%