Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 27, 2020 | |
Cover [Abstract] | ||
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000730272 | |
Current Fiscal Year End Date | --12-31 | |
Document Period End Date | Jun. 30, 2020 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 000-14656 | |
Entity Registrant Name | REPLIGEN CORP | |
Entity Filer Category | Large Accelerated Filer | |
Trading Symbol | RGEN | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-2729386 | |
Entity Address, Address Line One | 41 Seyon Street, Bldg. 1, Suite 100 | |
Entity Address, City or Town | Waltham | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02453 | |
City Area Code | 781 | |
Entity Shell Company | false | |
Smaller reporting company | false | |
Emerging growth company | false | |
Local Phone Number | 250-0111 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 52,502,590 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 560,364 | $ 528,392 |
Restricted cash | 9,015 | |
Accounts receivable, net of allowances of $538 and $525 at June 30, 2020 and December 31, 2019, respectively | 48,779 | 43,068 |
Royalties and other receivables | 61 | 148 |
Unbilled receivables | 456 | 456 |
Inventories, net | 69,929 | 54,832 |
Prepaid expenses and other current assets | 7,568 | 5,917 |
Total current assets | 687,157 | 641,828 |
Property, plant and equipment, net | 52,451 | 48,455 |
Intangible assets, net | 204,741 | 212,552 |
Goodwill | 468,725 | 468,413 |
Deferred tax assets | 4,831 | 2,920 |
Operating lease right of use assets | 23,830 | 25,707 |
Other assets | 310 | 238 |
Total assets | 1,442,045 | 1,400,113 |
Current liabilities: | ||
Accounts payable | 13,902 | 11,425 |
Operating lease liability | 3,970 | 3,557 |
Accrued liabilities | 26,529 | 33,331 |
Total current liabilities | 44,401 | 48,313 |
Convertible senior notes, net | 238,183 | 232,767 |
Deferred tax liabilities | 29,948 | 29,944 |
Operating lease liability, long-term | 26,263 | 26,995 |
Other liabilities, long-term | 3,223 | 2,326 |
Total liabilities | 342,018 | 340,345 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Preferred stock, $0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding | ||
Common stock, $0.01 par value; 80,000,000 shares authorized; 52,494,884 shares at June 30, 2020 and 52,078,258 shares at December 31, 2019 issued and outstanding | 525 | 521 |
Additional paid-in capital | 1,082,096 | 1,068,431 |
Accumulated other comprehensive loss | (14,113) | (15,027) |
Accumulated earnings | 31,519 | 5,843 |
Total stockholders' equity | 1,100,027 | 1,059,768 |
Total liabilities and stockholders' equity | $ 1,442,045 | $ 1,400,113 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, reserve for doubtful accounts | $ 538 | $ 525 |
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 | 52,494,884 | 52,078,258 |
Common stock, shares outstanding | 52,494,884 | 52,078,258 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue: | ||||
Revenue | $ 87,462 | $ 70,692 | $ 163,552 | $ 131,326 |
Costs and operating expenses: | ||||
Cost of product revenue | 36,863 | 30,708 | 68,845 | 57,553 |
Research and development | 4,336 | 5,231 | 9,038 | 8,851 |
Selling, general and administrative | 26,726 | 23,699 | 54,226 | 42,697 |
Total costs and operating expenses | 67,925 | 59,638 | 132,109 | 109,101 |
Income from operations | 19,537 | 11,054 | 31,443 | 22,225 |
Other income (expenses): | ||||
Investment income | 253 | 1,005 | 1,617 | 1,718 |
Interest expense | (3,004) | (1,743) | (5,980) | (3,469) |
Other expenses | (766) | (697) | (384) | (339) |
Other expenses, net | (3,517) | (1,435) | (4,747) | (2,090) |
Income before income taxes | 16,020 | 9,619 | 26,696 | 20,135 |
Income tax provision | 159 | 1,524 | 1,020 | 3,987 |
Net income | $ 15,861 | $ 8,095 | $ 25,676 | $ 16,148 |
Earnings per share: | ||||
Basic | $ 0.30 | $ 0.17 | $ 0.49 | $ 0.36 |
Diluted | $ 0.30 | $ 0.17 | $ 0.48 | $ 0.34 |
Weighted average common shares outstanding: | ||||
Basic | 52,381 | 46,367 | 52,260 | 45,174 |
Diluted | 53,306 | 49,056 | 53,213 | 47,692 |
Net income | $ 15,861 | $ 8,095 | $ 25,676 | $ 16,148 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 6,493 | (1,269) | 914 | (3,160) |
Comprehensive income | 22,354 | 6,826 | 26,590 | 12,988 |
Products | ||||
Revenue: | ||||
Revenue | 87,432 | 70,670 | 163,492 | 131,282 |
Royalty and Other Revenue | ||||
Revenue: | ||||
Revenue | $ 30 | $ 22 | $ 60 | $ 44 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Earnings (Deficit) |
Balance at Dec. 31, 2018 | $ 615,568 | $ 439 | $ 642,590 | $ (11,893) | $ (15,568) |
Balance (in shares) at Dec. 31, 2018 | 43,917,378 | ||||
Net income | 16,148 | 16,148 | |||
Issuance of common stock for debt conversion | 2 | $ 0 | 2 | ||
Issuance of common stock for debt conversion (in shares) | 29 | ||||
Exercise of stock options and vesting of stock units | 566 | $ 3 | 563 | ||
Exercise of stock options and vesting of stock units (in shares) | 245,263 | ||||
Issuance of common stock pursuant to the acquisition of C Technologies, Inc. | 53,938 | $ 8 | 53,930 | ||
Issuance of common stock pursuant to the acquisition of C Technologies, Inc., (in shares) | 779,221 | ||||
Proceeds from issuance of common stock, net of issuance cost of $0.5 million | 189,623 | $ 31 | 189,592 | ||
Proceeds from issuance of common stock, net of issuance cost of $0.5 million (in shares) | 3,144,531 | ||||
Stock-based compensation expense | 6,283 | 6,283 | |||
Translation adjustment at Dec. 31, 2018 | (3,160) | (3,160) | |||
Balance at Jun. 30, 2019 | 878,968 | $ 481 | 892,960 | (15,053) | 580 |
Balance (in shares) at Jun. 30, 2019 | 48,086,422 | ||||
Balance at Mar. 31, 2019 | 625,025 | $ 441 | 645,883 | (13,784) | (7,515) |
Balance (in shares) at Mar. 31, 2019 | 44,073,998 | ||||
Net income | 8,095 | 8,095 | |||
Issuance of common stock for debt conversion | 2 | $ 0 | 2 | ||
Issuance of common stock for debt conversion (in shares) | 29 | ||||
Exercise of stock options and vesting of stock units | 523 | $ 1 | 522 | ||
Exercise of stock options and vesting of stock units (in shares) | 88,643 | ||||
Issuance of common stock pursuant to the acquisition of C Technologies, Inc. | 53,938 | $ 8 | 53,930 | ||
Issuance of common stock pursuant to the acquisition of C Technologies, Inc., (in shares) | 779,221 | ||||
Proceeds from issuance of common stock, net of issuance cost of $0.5 million | 189,623 | $ 31 | 189,592 | ||
Proceeds from issuance of common stock, net of issuance cost of $0.5 million (in shares) | 3,144,531 | ||||
Stock-based compensation expense | 3,031 | 3,031 | |||
Translation adjustment at Mar. 31, 2019 | (1,269) | (1,269) | |||
Balance at Jun. 30, 2019 | 878,968 | $ 481 | 892,960 | (15,053) | 580 |
Balance (in shares) at Jun. 30, 2019 | 48,086,422 | ||||
Balance at Dec. 31, 2019 | 1,059,768 | $ 521 | 1,068,431 | (15,027) | 5,843 |
Balance (in shares) at Dec. 31, 2019 | 52,078,258 | ||||
Net income | 25,676 | 25,676 | |||
Exercise of stock options and vesting of stock units | 5,402 | $ 4 | 5,398 | ||
Exercise of stock options and vesting of stock units (in shares) | 416,626 | ||||
Stock-based compensation expense | 8,267 | 8,267 | |||
Translation adjustment at Dec. 31, 2019 | 914 | 914 | |||
Balance at Jun. 30, 2020 | 1,100,027 | $ 525 | 1,082,096 | (14,113) | 31,519 |
Balance (in shares) at Jun. 30, 2020 | 52,494,884 | ||||
Balance at Mar. 31, 2020 | 1,069,758 | $ 523 | 1,074,183 | (20,606) | 15,658 |
Balance (in shares) at Mar. 31, 2020 | 52,278,083 | ||||
Net income | 15,861 | 15,861 | |||
Exercise of stock options and vesting of stock units | 3,813 | $ 2 | 3,811 | ||
Exercise of stock options and vesting of stock units (in shares) | 216,801 | ||||
Stock-based compensation expense | 4,102 | 4,102 | |||
Translation adjustment at Mar. 31, 2020 | 6,493 | 6,493 | |||
Balance at Jun. 30, 2020 | $ 1,100,027 | $ 525 | $ 1,082,096 | $ (14,113) | $ 31,519 |
Balance (in shares) at Jun. 30, 2020 | 52,494,884 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Proceeds from issuance of common stock,net of issuance costs | $ 0.5 | $ 0.5 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 25,676 | $ 16,148 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 12,869 | 9,053 |
Non-cash interest expense | 5,415 | 2,231 |
Stock-based compensation expense | 8,267 | 6,283 |
Deferred income taxes, net | (1,912) | 889 |
Other | 143 | 3 |
Changes in operating assets and liabilities, excluding impact of acquisitions: | ||
Accounts receivable | (6,013) | (7,317) |
Royalties and other receivables | 184 | 114 |
Unbilled receivables | 2,142 | |
Inventories | (14,964) | (4,137) |
Prepaid expenses and other assets | (1,633) | 114 |
Operating lease right of use assets | 1,844 | 1,206 |
Other assets | (76) | (65) |
Accounts payable | 2,884 | 495 |
Accrued expenses | (7,012) | 1,642 |
Operating lease liability | (304) | (1,216) |
Long-term liabilities | 897 | (8) |
Total cash provided by operating activities | 26,265 | 27,577 |
Cash flows from investing activities: | ||
Acquisition of C Technologies, Inc., net of cash acquired | (182,176) | |
Additions to capitalized software costs | (2,226) | (3,282) |
Purchases of property, plant and equipment | (7,291) | (5,847) |
Total cash used in investing activities | (9,517) | (191,305) |
Cash flows from financing activities: | ||
Exercise of stock options and vesting of stock units | 5,412 | 566 |
Payment of tax withholding obligation on vesting of restricted stock | (10) | |
Proceeds from issuance of common stock, net | 189,623 | |
Repayment of senior convertible notes | (17) | |
Total cash provided by financing activities | 5,402 | 190,172 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 807 | (2,449) |
Net increase in cash, cash equivalents and restricted cash | 22,957 | 23,995 |
Cash, cash equivalents and restricted cash, beginning of period | 537,407 | 193,822 |
Cash, cash equivalents and restricted cash, end of period | 560,364 | 217,817 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Assets acquired under operating leases | $ 17 | |
Fair value of common stock issued for acquisition of C Technologies, Inc. | $ 53,938 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements included herein have been prepared by Repligen Corporation (the “Company”, “Repligen” or “we”) in accordance with generally accepted accounting principles in the United States (“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 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 consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Repligen Sweden AB, Repligen GmbH, Spectrum LifeSciences, LLC and its subsidiaries (“Spectrum”), C Technologies, Inc. (“C Technologies”), and Repligen Singapore Pte. Ltd. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting of only normal, recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the entire year. Risks and Uncertainties There are many uncertainties regarding the current pandemic of the novel coronavirus (“COVID-19”), and the Company is closely monitoring the impact of COVID-19 COVID-19 Recent Accounting Standards Updates We consider the applicability and impact of all Accounting Standards Updates on the Company’s consolidated financial statements. Updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial position or results of operations. Recently issued Accounting Standards Updates that we feel may be applicable to the Company are as follows: Recently Issued Accounting Standard Updates – Adopted During the Period In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” 2018-13 “Conceptual Framework for Financial Reporting - ” 2018-13 In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use 350-40): 2018-15 internal-use internal-use capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. The Company adopted ASU 2018-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326).” 2016-13 2016-13 2016-13 2016-13 “Credit Losses,” In November 2018, the FASB issued ASU 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606.” 2018-18 “Collaborative Arrangements,” “Revenue from Contracts with Customers,” 2018-13 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” 2019-12 year-to-date 2018-13 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements | 2. Fair Value Measurements The Company uses various valuation approaches in determining the fair value of its assets and liabilities. 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. As of June 30, 2020 and December 31, 2019, cash and cash equivalents on the Company’s consolidated balance sheets included $418.5 million and $415.6 million, respectively, in a money market account. These funds are valued on a recurring basis using Level 1 inputs. In July 2019, the Company issued $287.5 million aggregate principal amount of the Company’s 0.375% Convertible Senior Notes due July 15, 2024 (the “2019 Notes”). Interest is payable semi-annually in arrears on January 15 and July 15 of each year. The 2019 Notes will mature on July 15, 2024 unless earlier converted or repurchased in accordance with their terms. As of June 30, 2020, the carrying value of the 2019 Notes was $238.2 million, net of unamortized discount, and the fair value of the 2019 Notes was $364.0 million. The fair value of the 2019 Notes is a Level 1 valuation and was determined based on the most recent trade activity of the 2019 Notes as of June 30, 2020. The 2019 Notes are discussed in more detail in Note 8, “Convertible Senior Notes” During the three and six months ended June 30, 2020, there were no remeasurements to fair value of financial assets and liabilities that are not measured at fair value on a recurring basis. |
Acquisition of C Technologies,
Acquisition of C Technologies, Inc | 6 Months Ended |
Jun. 30, 2020 | |
Acquisition of C Technologies, Inc. | 3. Acquisition of C Technologies, Inc. On May 31, 2019, Repligen acquired C Technologies, pursuant to the terms of a Stock Purchase Agreement (the “Agreement”), by and among Repligen, C Technologies and Craig Harrison, an individual and sole stockholder of C Technologies (such acquisition, the “C Technologies Acquisition”). 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 and six $1.5 million and Fair Value of Net Assets Acquired The allocation of purchase price is based on the fair value of assets acquired and liabilities assumed as of the acquisition date, based on the preliminary valuation. The Company obtained this information during due diligence and through other sources. In the months after closing, the Company obtained additional information about these assets and liabilities as it learned more about C Technologies. The Company refined the estimates of fair value to more accurately allocate the purchase price. Only items identified as of the acquisition date were considered for subsequent adjustment. We made appropriate adjustments to the purchase price allocation during the measurement period, which was one year from the acquisition date. The components and allocation of the purchase price consists of the following amounts (amounts in thousands): Cash and cash equivalents $ 3,795 Restricted cash 26,933 Accounts receivable 3,044 Inventory 3,783 Prepaid expenses and other current assets 93 Fixed assets 40 Operating lease right of use asset 3,836 Customer relationships 59,680 Developed technology 28,920 Trademark and tradename 1,570 Non-competition 660 Goodwill 142,314 Deferred taxes 895 Accounts payable (436 ) Accrued liabilities (2,767 ) Accrued bonus (26,928 ) Deferred revenue (1,709 ) Operating lease liability (51 ) Operating lease liability, long-term (3,785 ) Fair value of net assets acquired $ 239,887 Acquired Goodwill The goodwill of $142.3 million represents future economic benefits expected to arise from synergies from combining operations and commercial organizations to increase market presence and the extension of existing customer relationships. Substantially all of the goodwill recorded is expected to be deductible for income tax purposes. Pursuant to the Company’s business combination accounting policy included in Note 2, “ Summary of Significant Accounting Policies – Business Combinations, Goodwill and Intangible Assets, ” the Company’s Revenue, Net Income and Pro Forma Presentation The Company recorded revenue from C Technologies of $7.7 million and $14.3 million for the three and six months ended June 30, 2020, respectively, and $16.4 million from May 31, 2019, the date of acquisition, to December 31, 2019. The Company recorded a net loss from C Technologies’ results of operations of $0.7 million and $2.9 million for the three and six months ended June 30, 2020, respectively, and a net loss of $7.4 million from May 31, 2019 to December 31, 2019. The Company has included the operating results of C Technologies in its consolidated statements of comprehensive income since the May 31, 2019 acquisition date. The following pro forma financial information presents the combined results of operations of Repligen and C Technologies as if the acquisition had occurred on January 1, 2019 after giving effect to certain pro forma adjustments. The pro forma adjustments reflected herein include only those adjustments that are directly attributable to the C Technologies Acquisition, factually supportable and have a recurring impact. These pro forma adjustments include amortization expense on the acquired identifiable intangible assets, adjustments to stock-based compensation expense for equity compensation issued to C Technologies employees and the income tax effect of the adjustments made. In addition, acquisition-related transaction costs and an accounting adjustment to record inventory at fair value were excluded from pro forma net income in 2019. Prior to the C Technologies Acquisition, C Technologies did not generate monthly or quarterly financial statements that were prepared in accordance with GAAP. The following pro forma financial information does not reflect any adjustments for anticipated expense savings resulting from the acquisition and is not necessarily indicative of the operating results that would have actually occurred had the transaction been consummated on January 1, 2019 or of future results (amounts in thousands, except per share data): Six Months Ended Total revenue $ 140,515 Net income $ 20,560 Earnings per share: Basic $ 0.46 Diluted $ 0.43 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Revenue Recognition | 4. Revenue Recognition The Company generates “Revenue from Contracts with Customers,” Disaggregation of Revenue Revenues for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Amounts in thousands) Product revenue $ 87,432 $ 70,670 $ 163,492 $ 131,282 Royalty and other income 30 22 60 44 Total revenue $ 87,462 $ 70,692 $ 163,552 $ 131,326 When disaggregating revenue, the Company considered all of the economic factors that may affect its revenues. Because all of its revenues are from bioprocessing customers, there are no differences in the nature, timing and uncertainty of the Company’s revenues and cash flows from any of its product lines. However, given that the Company’s revenues are generated in different geographic regions, factors such as regulatory and geopolitical factors within those regions could impact the nature, timing and uncertainty of the Company’s revenues and cash flows. In addition, a significant portion of the Company’s revenues are generated from two customers; therefore, economic factors specific to these two customers could impact the nature, timing and uncertainty of the Company’s revenues and cash flows. Disaggregated revenue from contracts with customers by geographic region can be found in Note 15, “Segment Reporting,” Revenue from significant customers that represent 10% or more of the Company’s total revenue is as follows: Three Months Ended Six Months Ended 2020 2019 2020 201 9 (Amounts in thousands) Cytiva (formerly GE Healthcare) $ 10,479 $ 11,083 $ 16,606 $ 18,749 MilliporeSigma $ 10,674 $ 9,487 $ 21,566 $ 18,894 Chromatography Products The Company’s chromatography products include a number of products used in the downstream purification and quality control of biological drugs. The majority of chromatography revenue relates to the OPUS ® pre-packed pre-packaged Filtration Products The Company’s filtration products generate revenue through the sale of KrosFlo ® ® ® ® ® single-use The Company’s KrosFlo systems are used in the filtration, isolation, purification and concentration of biologics and diagnostic products. TFF is a rapid and efficient method for separation and purification of biomolecules that is widely used in laboratory, process development and process scale applications in biopharmaceutical manufacturing. Sales of large-scale systems generally include components and consumables as well as training and installation services at the request of the customer. Because the initial sale of components and consumables are necessary for the operation of the system, such items are combined with the systems as a single performance obligation. Training and installation services do not significantly modify or customize these systems and therefore represent a distinct performance obligation. The Company’s TangenX flat sheet cassettes (SIUS ® ® The Company’s other filtration product offerings are not highly interdependent of one another and are therefore considered distinct products that represent separate performance obligations. Revenue on these products is generally recognized at a point in time upon transfer of control to the customer. The Company invoices the customer for the installation and training services in an amount that directly corresponds with the value to the customer of the Company’s performance to date; therefore, revenue recognized is based on the amount billable to the customer in accordance with the practical expedient under ASC 606-10-55-18. The Company also markets the XCell ATF system, a technologically advanced filtration device used in upstream processes to continuously remove cellular metabolic waste products during the course of a fermentation run, freeing healthy cells to continue producing the biologic drug of interest. XCell ATF systems typically include a filtration system and consumables (i.e., tubing sets, metal stands) as well as training and installation services at the request of the customer. The filtration system and consumables are considered distinct products and therefore represent separate performance obligations. First time purchasers of the systems typically purchase a controller that is shipped with the tubing set(s) and metal stand(s). The controller is not considered distinct as it is a proprietary product that is highly interdependent with the filtration system; therefore, the controller is combined with the filtration system and accounted for as a single performance obligation. The training and installation services do not significantly modify or customize the XCell ATF system and therefore represent a distinct performance obligation. XCell ATF system product revenue related to the filtration system (including the controller if applicable) and consumables is generally recognized at a point in time upon transfer of control to the customer. XCell ATF system service revenue related to training and installation services is generally recognized over time, as the customer simultaneously receives and consumes the benefits as the Company performs. The Company invoices the customer for the installation and training services in an amount that directly corresponds with the value to the customer of the Company’s performance to date; therefore, revenue recognized is based on the amount billable to the customer in accordance with the practical expedient under ASC 606-10-55-18. Process Analytics Products The Process Analytics franchise generates revenue primarily through the sale of the SoloVPE and FlowVPE Slope Spectroscopy systems, consumables and service. These products complement and support the Company’s existing Filtration, Chromatography and Proteins franchises as they allow end users to make in-line Protein Products The Company’s Protein franchise generates revenue through the sale of Protein A affinity ligands and growth factors. Protein A ligands are an essential component of Protein A chromatography resins (media) used in the purification of virtually all mAb-based Other Products The Company’s other products include operating room products sold to hospitals. Other product revenue is generally recognized at a point in time upon transfer of control to the customer. Transaction Price Allocated to Future Performance Obligations Remaining performance obligations represents the transaction price of contracts for which work has not been performed or has been partially performed. The Company’s future performance obligations relate primarily to the installation and training of certain of its systems sold to customers. These performance obligations are completed within one year of receipt of a purchase order from its customers. Accordingly, the Company has elected to not disclose the value of these unsatisfied performance obligations as provided under ASC 606-10-50-14. Contract Balances from Contracts with Customers The following table provides information about receivables and deferred revenues from contracts with customers as of June 30, 2020 (amounts in thousands): 2020 Balances from contracts with customers only: Accounts receivable $ 48,779 Deferred revenue (included in accrued liabilities in the consolidated balance sheets) 7,276 Revenue recognized during the six month period end ed The beginning deferred revenue balance $ 2,747 Changes in pricing related to products or services satisfied in previous periods — The timing of revenue recognition, billings and cash collections results in the accounts receivables and deferred revenue balances on the Company’s consolidated balance sheets. There were no impairment losses recognized on receivables during the three and six months ended June 30, 2020 or for the same periods in 2019. A contract asset is created when the Company satisfies a performance obligation by transferring a promised good to the customer. Contract assets may represent conditional or unconditional rights to consideration. The right is conditional, and recorded as a contract asset, if the Company must first satisfy another performance obligation in the contract before it is entitled to payment from the customer. Contract assets are transferred to billed receivables once the right becomes unconditional. If the Company has the unconditional right to receive consideration from the customer, the contract asset is accounted for as a billed receivable and presented separately from other contract assets. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. When consideration is received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to the customer under the terms of a contract, a contract liability is recorded. Contract liabilities are recognized as revenue after control of the products or services is transferred to the customer and all revenue recognition criteria have been met. Costs to Obtain or Fulfill a Customer Contract The Company’s sales commission structure is based on achieving revenue targets. The commissions are driven by revenue derived from customer purchase orders which are short term in nature. Applying the practical expedient in paragraph 340-40-25-4, |
Credit Losses
Credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Credit Losses | 5. Credit Losses Effective January 1, 2020, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” 2016-13 The Company is exposed to credit losses primarily through sales of products and services. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience, current and future economic and market conditions and a review of the current status of customers’ trade accounts receivables. Customers are pooled based on sharing specific risk factors, including geographic location. Due to the short-term nature of such receivables, the estimated accounts receivable that may not be collected is based on aging of the accounts receivable balances. Customers are assessed for credit worthiness upfront through a credit review, which includes assessment based on the Company’s analysis of their financial statements when a credit rating is not available. The Company evaluates contract terms and conditions, country and political risk, and may require prepayment to mitigate risk of loss. Specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company monitors changes to the receivables balance on a timely basis, and balances are written off as they are determined to be uncollectable after all collection efforts have been exhausted. Estimates of potential credit losses are used to determine the allowance. It is based on assessment of anticipated payment and all other historical, current and future information that is reasonably available. The accounts receivable balance on the Company’s consolidated balance sheet as of June 30, 2020 was $48.8 million, net of $0.5 million of allowances. The following table provides a roll-forward of the allowance for credit losses in 2020 2020 Balance at January 1, 2020 $ (525 ) Change for expected credit losses (133 ) Balance at March 31, 2020 (658 ) Current period change for write-offs 37 Current period change for recoveries — Current period change for expected credit losses 83 Balance at June 30, 2020 $ (538 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Other Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The following table represents the change in the carrying value of goodwill for the six months ended June 30, 2020 (amounts in thousands): Balance as of December 31, 2019 $ 468,413 Goodwill adjustment related to C Technologies, Inc. 293 Cumulative translation adjustment 19 Balance as of June 30, 2020 $ 468,725 During each of the fourth quarters of 2019, 2018 and 2017, the Company its Intangible Assets Intangible assets with a definitive life are amortized over their useful lives using the straight-line method, and the amortization expense is recorded within cost of product revenue and selling, general and administrative expenses in the Company’s statements of comprehensive income. 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 the Company’s 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 June 30, 2020. Indefinite-lived assets are reviewed for impairment at least annually. There has been no impairment of the Company’s intangible assets for the periods presented. Intangible assets, net consisted of the following at June 30, 2020: June 30, 2020 Gross Accumulated Net Weighted (Amounts in thousands) Finite-lived intangible assets: Technology - developed $ 82,172 $ (11,863 ) $ 70,309 19 Patents 240 (240 ) — 8 Customer relationships 160,834 (30,934 ) 129,900 15 Trademarks 3,752 (427 ) 3,325 20 Other intangibles 1,697 (1,190 ) 507 3 Total finite-lived intangible assets 248,695 (44,654 ) 204,041 16 Indefinite-lived intangible asset: Trademarks 700 — 700 — Total intangible assets $ 249,395 $ (44,654 ) $ 204,741 Intangible assets consisted of the following at December 31, 2019: December 31, 2019 Gross Accumulated Net Weighted (Amounts in thousands) Finite-lived intangible assets: Technology - developed $ 82,169 $ (9,669 ) $ 72,500 19 Patents 240 (240 ) — 8 Customer relationships 160,825 (25,642 ) 135,183 15 Trademarks 3,752 (333 ) 3,419 20 Other intangibles 1,697 (947 ) 750 3 Total finite-lived intangible assets 248,683 (36,831 ) 211,852 16 Indefinite-lived intangible asset: Trademarks 700 — 700 — Total intangible assets $ 249,383 $ (36,831 ) $ 212,552 Amortization expense for finite-lived intangible assets was $3.9 million and $3.1 million for the three months ended June 30, 2020 and 2019, respectively. Amortization expense was $7.8 million and $5.7 million for the six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, the Company expects to record the following amortization expense in future periods (amounts in thousands): For the Six Months Ended June 30, Estimated Amortization Expense 2020 (remaining six months) $ 7,396 2021 14,738 2022 14,736 2023 14,640 2024 14,198 2025 and thereafter 138,333 Total $ 204,041 |
Consolidated Balance Sheet Deta
Consolidated Balance Sheet Detail | 6 Months Ended |
Jun. 30, 2020 | |
Consolidated Balance Sheet Detail | 7. Consolidated Balance Sheet Detail Inventories, net Inventories, net consists of the following: As of June 30, December 31, 2020 2019 (Amounts in thousands) Raw materials $ 40,196 $ 29,328 Work-in-process 5,873 8,360 Finished products 23,860 17,144 Total inventories, net $ 69,929 $ 54,832 Property, Plant and Equipment Property, plant and equipment consist of the following: As of June 30, December 31, 2020 2019 (Amounts in thousands) Land $ 1,023 $ 1,023 Buildings 764 764 Leasehold improvements 28,824 23,905 Equipment 37,808 36,257 Furniture, fixtures and office equipment 6,873 6,312 Computer hardware and software 10,057 8,810 Construction in progress 7,565 6,707 Other 50 56 Total property, plant and equipment 92,964 83,834 Less - Accumulated depreciation (40,513 ) (35,379 ) Total property, plant and equipment, net $ 52,451 $ 48,455 Depreciation expense totaled $2.6 million and $1.8 million for the three months ended June 30, 2020 and 2019, respectively. Depreciation expenses totaled $5.1 million and $3.3 million for the six months ended June 30, 2020 and 2019, respectively. Accrued Liabilities Accrued liabilities consist of the following: As of June 30, December 31, 2020 2019 (Amounts in thousands) Employee compensation $ 12,320 $ 19,850 Taxes 3,330 3,874 Royalty and license fees 248 123 Warranties 833 1,500 Professional fees 1,120 1,081 Deferred revenue 7,276 5,005 Other 1,402 1,898 Total accrued liabilities $ 26,529 $ 33,331 |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2020 | |
Convertible Senior Notes | 8. Convertible Senior Notes 0.375% Convertible Senior Notes due 2024 On July 19, 2019, the Company issued $287.5 million aggregate principal amount of 0.375% Convertible Senior Notes due 2024 (“2019 Notes”), which includes the underwriters’ exercise in full of an option to purchase an additional $37.5 million aggregate principal amount of 2019 Notes (the “Notes Offering”). The net proceeds of the Notes Offering, after deducting underwriting discounts and commissions and other related offering expenses payable by the Company, were approximately $278.5 million. The 2019 Notes are senior, unsecured obligations of the Company, and bear interest at a rate of 0.375% per year. Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2020. The 2019 Notes will mature on July 15, 2024, unless earlier repurchased or converted in accordance with their terms. The initial conversion rate for the 2019 Notes is 8.6749 shares of the Company’s common stock per $1,000 principal amount of 2019 Notes (which is equivalent to an initial conversion price of approximately $115.28 per share). Prior to the close of business on the business day immediately preceding April 15, 2024, the 2019 Notes will be convertible at the option of the holders of 2019 Notes only upon the satisfaction of specified conditions and during certain periods. Thereafter until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2019 Notes will be convertible at the options of the holders of 2019 Notes at any time regardless of these conditions. Conversion of the 2019 Notes will be settled in cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. The 2019 Notes are not redeemable by the Company prior to maturity. Holders of 2019 Notes may require the Company to repurchase their 2019 Notes upon the occurrence of a fundamental change prior to maturity at a repurchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the date of repurchase. In connection with certain corporate events, the Company will, under certain circumstances, increase the conversion rate for holders of 2019 Notes who elect to convert their 2019 Notes in connection with such corporate events. As of June 30, 2020, the conditions allowing holders of the 2019 Notes to convert have not been met and therefore the 2019 Notes are not yet convertible and are recorded as a long-term liability in the Company’s consolidated balance sheet at June 30, 2020. No 2019 Notes were converted by the holders of such notes in the second quarter of 2020. In the event the closing price conditions are met in the third quarter of 2020 or a future fiscal quarter, the 2019 Notes will be convertible at a holder’s option during the immediately following fiscal quarter. The Company accounts for the 2019 Notes as separate liability and equity components. We determined the carrying amount of the liability component as the present value of its cash flows using a discount rate of 4.5% based on comparative convertible transactions for similar companies. The proceeds allocated to the debt conversion feature were $52.1 million. This amount was calculated by deducting the carrying value of the liability component from the principal amount of the 2019 Notes as a whole. The difference represents a debt discount that is amortized to interest expense on the Company’s re-measured The Company allocates transaction costs related to the issuance of the 2019 Notes to the liability and equity components using the same proportions as the initial carrying value of the 2019 Notes. Transaction costs related to the liability component were $7.4 million and are being amortized to interest expense using the effective interest method over the term of the 2019 Notes. Transaction costs attributable to the equity component were $1.6 million and are netted with the equity component of the 2019 Notes in stockholders’ equity of the Company’s consolidated balance sheet The net carrying value of the liability component of the 2019 Notes is as follows: As of June 30, December 31, 2020 2019 (Amounts in thousands) 0.375% convertible senior notes due 2024: Principal amount $ 287,500 $ 287,500 Less: unamortized debt discount (43,179 ) (47,921 ) Less: unamortized debt issuance costs (6,138 ) (6,812 ) Total debt 238,183 232,767 Less: current portion — — Net carrying amount $ 238,183 $ 232,767 Interest expense recognized on the 2019 Notes for the three months ended June 30, 2020 was $0.3 million, $2.4 million and $0.3 million for the contractual coupon interest, the accretion of the debt discount and the amortization of the debt issuance costs, respectively. Interest expense recognized on the 2019 Notes for the six months ended June 30, 2020 was $0.5 million, $4.7 million and $0.7 million 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 2019 Notes is 5.1%, which included the interest on the 2019 Notes, amortization of the debt discount and debt issuance costs. As of June 30, 2020, the carrying value of the 2019 Notes was $238.2 million and the fair value of the principal was $364.0 million. The fair value of the 2019 Notes was determined based on the most recent trade activity of the 2019 Notes as of June 30, 2020. Conversion of the 2.125% Convertible Senior Notes due 2021 The Company utilized a portion of the proceeds from the issuance of the 2019 Notes to settle its outstanding 2.125% Convertible Senior Notes due 2021 (the “2016 Notes”) during the third quarter of 2019. On July 16, 2019, the Company entered into separate privately negotiated agreements with certain holders of the 2016 Notes to exchange an aggregate of $92.0 million principal aggregate amount of the 2016 Notes for shares of the Company’s common stock, together with cash, in private placement transactions (the “Note Exchanges”). On July 19, 2019 and July 22, 2019, the Company used approximately $92.3 million (including $0.3 million of accrued interest) and 1,850,155 shares of its common stock valued at $161.0 million to settle the Note Exchanges for total consideration of $253.3 million, of which $163.6 million was allocated to reacquiring the equity component of the 2016 Notes. The Company allocated the consideration transferred to the liability and equity components using the same proportions as the initial carrying value of the 2016 Notes. The transaction resulted in a loss on extinguishment of debt of $4.6 million in the Company’s consolidated statements of comprehensive income in 2019. On July 19, 2019, the Company issued a Notice of Redemption in respect of the 2016 Notes, which provided that, on September 23, 2019, the Company would redeem all 2016 Notes that had not been converted, repurchased or exchanged prior to such date at a redemption price in cash equal to 100% of the principal amount thereof plus accrued and unpaid interest. On September 23, 2019, the Company used $23.0 million and 466,045 shares of its common stock valued at $37.8 million to settle the remaining 2016 Notes for a total of $60.8 million, of which $38.3 million was allocated to reacquiring the equity component of the 2016 Notes. This transaction resulted in a loss on extinguishment of debt of $1.1 million recorded on the Company’s consolidated statements of comprehensive income. The total loss in 2019 of $5.7 million represents the difference between the fair value of the liability component of the 2016 Notes and its related carrying value immediately before the exchange. The fair value of the liability component was calculated using a discounted cash flow technique with an effective interest rate of 3.9%, representing the estimated nonconvertible debt borrowing rate with a maturity as of the measurement date consistent with the 2016 Notes maturity date of June 1, 2021. In addition, in accordance with this guidance, a portion of the fair value of the consideration transferred is allocated to the reacquisition of the equity component, which is the difference between the fair value of the consideration transferred and the fair value of the liability component immediately before the exchange. As a result, on a gross basis, $200.1 million was allocated to the reacquisition of the equity component of the original instrument, which is recorded net of deferred taxes within additional paid-in The cash conversion feature of the 2016 Notes required bifurcation from the 2016 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 2016 Notes, which resulted in a fair value of the liability component of $96.3 million upon issuance, calculated as the present value of implied future payments based on the $115.0 million aggregate principal amount. The equity component of the 2016 Notes was recognized as a debt discount, recorded in additional paid-in Interest expense recognized on the 2016 Notes for the three months ended June 30, 2019 was $0.6 million, $1.0 million and $0.2 million for the contractual coupon interest, the accretion of the debt discount and the amortization of the debt issuance costs, respectively. Interest expense recognized on the 2016 Notes for the six months ended June 30, 2019 was $1.2 million, $1.9 million and $0.3 million 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 2016 Notes was |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity | 9. Stockholders’ Equity Public Offerings of Common Stock On July 19, 2019, the Company completed a public offering in which 1,587,000 shares of its common stock, including the underwriters’ exercise in full of an option to purchase an additional 207,000 shares, were sold to the public at a price of $87.00 per share (the “Stock Offering”). The net proceeds of the Stock Offering, after deducting underwriting discounts and commissions and other estimated offering expenses payable by the Company, were approximately $131.1 million. On May 3, 2019, the Company completed a public offering in which 3,144,531 shares of its common stock, which includes the underwriters’ exercise in full of an option to purchase up to an additional 410,156 shares, were sold to the public at a price of $64.00 per share. The total proceeds received by the Company from this offering, net of underwriting discounts and commissions and other estimated offering expenses payable by the Company, totaled approximately $189.6 million. Stock Option and Incentive Plans At the Company’s 2018 annual meeting of shareholders held on May 16, 2018, the Company’s shareholders approved the 2018 Stock Option and Incentive Plan (the “2018 Plan”). Under the 2018 Plan the number of shares of the Company’s common stock that are reserved and available for issuance is 2,778,000 plus the number of shares of common stock available for issuance under the Company’s Amended and Restated 2012 Stock Option and Incentive Plan (the “2012 Plan”). The shares of common stock underlying any awards under the 2018 Plan and 2012 Plan (together, the “Plans”) that are forfeited, canceled or otherwise terminated (other than by exercise) shall be added back to the shares of stock available for issuance under the 2018 Plan. At June 30, 2020, 2,370,882 shares were available for future grant under the 2018 Plan. Stock-Based Compensation For the three months ended June 30, 2020 and 2019, the Company recorded stock-based compensation expense of $4.1 million and $3.0 million, respectively, for share-based awards granted under the Plans. For the six months ended June 30, 2020 and 2019, the Company recorded stock-based compensation expense of $8.3 million and $6.3 million, respectively. The following table presents stock-based compensation expense in the Company’s consolidated statements of comprehensive income: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Amounts in thousands) Cost of product revenue $ 425 $ 292 $ 858 $ 616 Research and development 394 319 766 641 Selling, general and administrative 3,283 2,420 6,643 5,026 Total stock-based compensation $ 4,102 $ 3,031 $ 8,267 $ 6,283 The 2018 Plan allows for the granting of incentive and nonqualified options to purchase shares of common stock, restricted stock and other equity awards. Employee grants under the Plans generally vest over a three five 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 RSUs. The Company measures stock-based compensation cost at the grant date based on the estimated fair value of the award. The Company recognizes expense on awards with service-based vesting over the employee’s requisite service period on a straight-line basis. Over the past three years, performance stock units have been issued to certain employees which are tied to the achievement of annual revenue and return on invested capital metrics. The Company recognizes expense on performance-based awards over the vesting period based on the probability that the performance metrics will be achieved. 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 six months ended June 30, 2020 under the Plans is summarized below: Shares Weighted Weighted- (in Years) Aggregate Options outstanding at December 31, 2019 957,559 $ 30.81 Granted 57,698 $ 100.53 Exercised (246,353 ) $ 21.97 Forfeited/expired/cancelled — $ — Options outstanding at June 30, 2020 768,904 $ 38.87 7.14 $ 65,243 Options exercisable at June 30, 2020 392,181 $ 30.64 6.26 $ 36,463 Vested and expected to vest at June 30, 2020 (1) 738,412 7.10 $ 62,833 (1) Represents the number of vested options as of June 30, 2020 plus the number of unvested options expected to vest as of June 30, 2020 based on the unvested outstanding options at June 30, 2020 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 secon d in-the-money The weighted average grant date fair value of options granted during the six months ended June 30, 2020 and 2019 was $46.56 and $30.07, respectively. The total fair value of stock options that vested during the six months ended June 30, 2020 and 2019 was $2.5 million and $2.7 million, respectively. The fair value of stock units is calculated using the closing price of the Company’s common stock on the date of grant. Information regarding stock unit activity, which includes activity for restricted stock units and performance stock units, for the six months ended June 30, 2020 under the Plans is summarized below: Shares Weighted- (in Years) Aggregate (in Thousands) Unvested at December 31, 2019 734,984 Awarded 149,755 Vested (170,778 ) Forfeited/expired/cancelled (17,863 ) Unvested at June 30, 2020 696,098 3.59 $ 86,045 Vested and expected to vest at June 30, 2020 (1) 641,476 3.28 $ 79,293 (1) Represents the number of vested stock units as of June 30, 2020 plus the number of unvested stock units expected to vest as of June 30, 2020 based on the unvested outstanding stock units at June 30, 2020 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 stock units vested during the six months ended June 30, 2020 and 2019 was $59.84 and $31.97, respectively. The total fair value of stock units that vested during the six months ended June 30, 2020 and 2019 was $7.3 million and $6.0 million, respectively. As of June 30, 2020, there was $42.8 million of total unrecognized compensation cost related to unvested share-based awards. This cost is expected to be recognized over a weighted average remaining requisite service period of 3.83 years. The Company expects 1,761,586 unvested options and stock units to vest over the next five years. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies | 10. Commitments and Contingencies Licensing and Research Agreements The Company licenses certain technologies that are, or may be, incorporated into its technology under several agreements and also has entered into several clinical research agreements which require the Company to fund certain research projects. Generally, the license agreements require the Company to pay annual maintenance fees and royalties on product sales once a product has been established using the technologies. Research and development expenses associated with license agreements were immaterial amounts for the three and six months ended June 30, 2020 and 2019. In September 2018, the Company entered into a collaboration agreement with Sartorius Stedim Biotech (“SSB”), a leading international supplier for the biopharmaceutical industry, to integrate our XCell ATF cell retention control technology into Sartorius’s BIOSTAT ® single-use end-users In June 2018, the Company secured an agreement with Navigo for the exclusive co-development NGL-Impact ® NGL-Impact |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Loss | 11. Accumulated Other Comprehensive Loss The following shows the changes in the components of accumulated other comprehensive loss for the six months ended June 30, 2020 which consisted of only foreign currency translation adjustments for the periods shown (amounts in thousands): Foreign Balance as of December 31, 2019 $ (15,027 ) Other comprehensive income 914 Balance as of June 30, 2020 $ (14,113 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Taxes | 12. Income Taxes The Company’s effective tax rate for the three and six months ended June 30, 2020 was 1.0% and 3.8%, respectively, compared to 15.8% and 19.8% , re s for the corresponding periods in the prior year. The effective tax rates for the three and six months ended June 30, 2020 and 2019 were lower than the U.S. statutory rate of 21% primarily due The Company is subject to a territorial tax system under the Tax Cuts and Jobs Act (“TCJA”) enacted in December 2017, in which the Company is required to provide for tax on the Global Intangible Low-Taxed Income (“GILTI”) earned by certain foreign subsidiaries. The Company has adopted an accounting policy to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense. On March 27, 2020, President Trump signed the $2.2 trillion bipartisan Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act, the third congressional bill to address COVID-19, The Company’s tax returns are subject to examination by federal, state and international tax authorities for the following periods: Jurisdiction Fiscal Years United States - federal and state 2016-2019 Sweden 2013-2019 Germany 2019 Netherlands 2013-2019 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share | 13. Earnings Per Share The Company reports earnings per share in accordance with ASC 260, “Earnings Per Share,” “in-the-money” Basic and diluted weighted average shares outstanding were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Amounts in thousands, except per share data) Net income $ 15,861 $ 8,095 $ 25,676 $ 16,148 Weighted average shares used in computing net income per share - basic 52,381 46,367 52,260 45,174 Effect of dilutive shares: Stock options and restricted stock awards 925 791 953 760 Convertible senior notes — 1,898 — 1,758 Dilutive potential common shares 925 2,689 953 2,518 Weighted average shares used in computing net income per share - diluted 53,306 49,056 53,213 47,692 Earnings per share: Basic $ 0.30 $ 0.17 $ 0.49 $ 0.36 Diluted $ 0.30 $ 0.17 $ 0.48 $ 0.34 At June 30, 2020, there were outstanding options to purchase 768,904 shares of the Company’s common stock at a weighted average exercise price of $38.87 per share and 696,098 shares of common stock issuable upon the vesting of stock units, which include RSUs and performance stock units. For the three and six months ended June 30, 2020, 11,578 and 12,328 shares of the Company’s common stock were excluded from the calculation of diluted earnings per share because the exercise prices of the stock options were greater than or equal to the average price of the common shares and were therefore anti-dilutive. At June 30, 2019, there were outstanding options to purchase 985,266 shares of the Company’s common stock at a weighted average exercise price of $30.16 per share and 766,986 shares issuable upon the vesting of stock units. For the three and six months ended June 30, 2019 As provided by the terms of the indenture underlying the 2016 Notes, the Company had a choice to settle the conversion obligation for the 2016 Notes in cash, shares or any combination of the two. During the third quarter of 2019, the Company settled the remaining 2016 Notes for a total aggregate principal of $115.0 million and 2,316,200 shares of its common stock. As of March 31, 2019, the par value of the 2016 Notes is not included in the calculation of diluted earnings per share, but the dilutive effect of the conversion premium is considered in the calculation of diluted earnings per share using the treasury stock method. The dilutive impact of the 2016 Notes was based on the difference between the Company’s current period average stock price and the conversion price of the 2016 Notes, provided there was a premium. In July 2019, the Company issued $287.5 million aggregate principal amount of the 2019 Notes. As provided by the terms of the indenture underlying the 2019 Notes, conversion of the 2019 Notes will be settled in cash, shares of the Company’s common stock or a combination thereof, at the Company’s election. As of June 30, 2020, the 2019 Notes were not convertible. The Company currently intends to settle the par value of the 2019 Notes in cash and any excess conversion premium in shares. The Company applies the provisions of ASC 260, “Earnings Per Share”, |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions | 14. Related Party Transactions Certain facilities leased by Spectrum are owned by Roy Eddleman, the former owner of Spectrum. As of June 30, 2020, Mr. Eddleman owned greater than 5% of the Company’s outstanding shares and the Company considers him to be a related party. The lease amounts paid to this shareholder prior to the public offering were negotiated in connection with the Spectrum Acquisition. The Company incurred rent expense totaling $ million and $ million for the three and six months ended June , related to these leases. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | 15. Segment Reporting The Company views its operations, makes decisions regarding how to allocate resources and manages its business as one reportable segment and one reporting unit. As a result, the financial information disclosed herein represents all of the material financial information related to the Company. The following table represents the Company’s total revenue by geographic area (based on the location of the customer): Three Months Ended Six Months Ended 2020 2019 2020 2019 Revenue by customers’ geographic locations: North America 47 % 51 % 47 % 49 % Europe 37 % 38 % 39 % 39 % APAC 16 % 11 % 14 % 12 % Other 0 % 0 % 0 % 0 % Total revenue 100 % 100 % 100 % 100 % Concentrations of Credit Risk and Significant Customers Financial instruments that subject the Company to significant concentrations of credit risk primarily consist of cash and cash equivalents, marketable securities and accounts receivable. Per the Company’s investment policy, cash equivalents and marketable securities are invested in financial instruments with high credit ratings and credit exposure to any one issue, issuer (with the exception of U.S. treasury obligations) and type of instrument is limited. At June 30, 2020 and December 31, 2019, the Company had no investments associated with foreign exchange contracts, options contracts or other foreign hedging arrangements. Concentration of credit risk with respect to accounts receivable is limited to customers to whom the Company makes significant sales. While a reserve for the potential write-off Revenue from significant customers that represent 10% or more of the Company’s total revenue is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cytiva (formerly GE Healthcare) 12 % 16 % 10 % 14 % MilliporeSigma 12 % 13 % 13 % 14 % Significant accounts receivable balances representing 10% or more of the Company’s total trade accounts receivable and royalties and other receivable balances are as follows: June 30, 2020 December 31, Cytiva (formerly GE Healthcare) 12 % 18 % MilliporeSigma 10 % N/A |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Event | 16. Subsequent Event Acquisition of Engineered Molding Technology On June 26, 2020, the Company entered into a Membership Interest Purchase Agreement with Engineered Molding Technology LLC (“EMT”), a New York limited liability company, and Michael Pandori and Todd Etesse, the legal and beneficial owners of EMT, to purchase EMT, which transaction subsequently closed on July 13, 2020 (the “EMT Acquisition”). EMT, which is headquartered in Clifton Park, New York, is an innovator and manufacturer of single-use single-use EMT’s products will complement and expand Repligen’s single-use The Company will account for the EMT Acquisition as a purchase of a business under the acquisition method of accounting and has engaged a third-party valuation firm to assist with the valuation of the business acquired. The estimated purchase price allocation for the EMT Acquisition will be included in the Quarterly Report on Form 10-Q ended September 30, 2020. Early Compliance to Amendments of the Regulation S-X On May 21, 2020, the SEC announced that it would adopt amendments to the financial disclosure requirements for acquisitions and dispositions of businesses in Rules 3-05, 3-14, 8-04, 8-05, 8-06, S-X, Rule 1-02(w), Rule 12b-2 Specific changes to the significance test include changes to the investment test component, which compares the registrant’s and its other subsidiaries’ investment in and advances to the tested subsidiary to the registrant’s aggregate worldwide market value if available, instead of the registrant’s total assets on a consolidated basis under the unamended Rule. The amendments also changed the income test component by adding a revenue component to it. The amendments will be effective on January 1, 2021. However, voluntary compliance with the final amendments will be permitted in advance of the effective date. As a result of the EMT Acquisition on July 13, 2020, the Company voluntarily adopted the amendments prior to their effective date and determined the acquired business, EMT, is not a significant subsidiary and therefore no separate financial statements are required. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Basis of presentation | Basis of Presentation The consolidated financial statements included herein have been prepared by Repligen Corporation (the “Company”, “Repligen” or “we”) in accordance with generally accepted accounting principles in the United States (“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 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 consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Repligen Sweden AB, Repligen GmbH, Spectrum LifeSciences, LLC and its subsidiaries (“Spectrum”), C Technologies, Inc. (“C Technologies”), and Repligen Singapore Pte. Ltd. All significant intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting of only normal, recurring adjustments necessary for a fair presentation of the financial position, results of operations and cash flows. The results of operations for the interim periods presented are not necessarily indicative of results to be expected for the entire year. |
Risks and Uncertainties | Risks and Uncertainties There are many uncertainties regarding the current pandemic of the novel coronavirus (“COVID-19”), and the Company is closely monitoring the impact of COVID-19 COVID-19 |
Recent Accounting Standards Updates | Recent Accounting Standards Updates We consider the applicability and impact of all Accounting Standards Updates on the Company’s consolidated financial statements. Updates not listed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company’s consolidated financial position or results of operations. Recently issued Accounting Standards Updates that we feel may be applicable to the Company are as follows: Recently Issued Accounting Standard Updates – Adopted During the Period In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. (“ASU”) 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.” 2018-13 “Conceptual Framework for Financial Reporting - ” 2018-13 In August 2018, the FASB issued ASU 2018-15, “Intangibles – Goodwill and Other – Internal-Use 350-40): 2018-15 internal-use internal-use capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. The Company adopted ASU 2018-13 In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326).” 2016-13 2016-13 2016-13 2016-13 “Credit Losses,” In November 2018, the FASB issued ASU 2018-18, “Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606.” 2018-18 “Collaborative Arrangements,” “Revenue from Contracts with Customers,” 2018-13 In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” 2019-12 year-to-date 2018-13 |
Acquisition of C Technologies_2
Acquisition of C Technologies, Inc. (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The components and allocation of the purchase price consists of the following amounts (amounts in thousands): Cash and cash equivalents $ 3,795 Restricted cash 26,933 Accounts receivable 3,044 Inventory 3,783 Prepaid expenses and other current assets 93 Fixed assets 40 Operating lease right of use asset 3,836 Customer relationships 59,680 Developed technology 28,920 Trademark and tradename 1,570 Non-competition 660 Goodwill 142,314 Deferred taxes 895 Accounts payable (436 ) Accrued liabilities (2,767 ) Accrued bonus (26,928 ) Deferred revenue (1,709 ) Operating lease liability (51 ) Operating lease liability, long-term (3,785 ) Fair value of net assets acquired $ 239,887 |
Unaudited Supplemental Pro Forma Information | The following pro forma financial information does not reflect any adjustments for anticipated expense savings resulting from the acquisition and is not necessarily indicative of the operating results that would have actually occurred had the transaction been consummated on January 1, 2019 or of future results (amounts in thousands, except per share data): Six Months Ended Total revenue $ 140,515 Net income $ 20,560 Earnings per share: Basic $ 0.46 Diluted $ 0.43 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Disaggregation of Revenue | Revenues for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Amounts in thousands) Product revenue $ 87,432 $ 70,670 $ 163,492 $ 131,282 Royalty and other income 30 22 60 44 Total revenue $ 87,462 $ 70,692 $ 163,552 $ 131,326 |
Revenue from Significant Customers | Revenue from significant customers that represent 10% or more of the Company’s total revenue is as follows: Three Months Ended Six Months Ended 2020 2019 2020 201 9 (Amounts in thousands) Cytiva (formerly GE Healthcare) $ 10,479 $ 11,083 $ 16,606 $ 18,749 MilliporeSigma $ 10,674 $ 9,487 $ 21,566 $ 18,894 |
Summary of Receivables and Deferred Revenue from Contracts with Customers | The following table provides information about receivables and deferred revenues from contracts with customers as of June 30, 2020 (amounts in thousands): 2020 Balances from contracts with customers only: Accounts receivable $ 48,779 Deferred revenue (included in accrued liabilities in the consolidated balance sheets) 7,276 Revenue recognized during the six month period end ed The beginning deferred revenue balance $ 2,747 Changes in pricing related to products or services satisfied in previous periods — |
Credit Losses (Tables)
Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Credit Loss [Abstract] | |
Summary Of Allowance For Credit Losses For Accounts Receivables | The following table provides a roll-forward of the allowance for credit losses in 2020 2020 Balance at January 1, 2020 $ (525 ) Change for expected credit losses (133 ) Balance at March 31, 2020 (658 ) Current period change for write-offs 37 Current period change for recoveries — Current period change for expected credit losses 83 Balance at June 30, 2020 $ (538 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Changes in Carrying Value of Goodwill | The following table represents the change in the carrying value of goodwill for the six months ended June 30, 2020 (amounts in thousands): Balance as of December 31, 2019 $ 468,413 Goodwill adjustment related to C Technologies, Inc. 293 Cumulative translation adjustment 19 Balance as of June 30, 2020 $ 468,725 |
Intangible assets | Intangible assets, net consisted of the following at June 30, 2020: June 30, 2020 Gross Accumulated Net Weighted (Amounts in thousands) Finite-lived intangible assets: Technology - developed $ 82,172 $ (11,863 ) $ 70,309 19 Patents 240 (240 ) — 8 Customer relationships 160,834 (30,934 ) 129,900 15 Trademarks 3,752 (427 ) 3,325 20 Other intangibles 1,697 (1,190 ) 507 3 Total finite-lived intangible assets 248,695 (44,654 ) 204,041 16 Indefinite-lived intangible asset: Trademarks 700 — 700 — Total intangible assets $ 249,395 $ (44,654 ) $ 204,741 Intangible assets consisted of the following at December 31, 2019: December 31, 2019 Gross Accumulated Net Weighted (Amounts in thousands) Finite-lived intangible assets: Technology - developed $ 82,169 $ (9,669 ) $ 72,500 19 Patents 240 (240 ) — 8 Customer relationships 160,825 (25,642 ) 135,183 15 Trademarks 3,752 (333 ) 3,419 20 Other intangibles 1,697 (947 ) 750 3 Total finite-lived intangible assets 248,683 (36,831 ) 211,852 16 Indefinite-lived intangible asset: Trademarks 700 — 700 — Total intangible assets $ 249,383 $ (36,831 ) $ 212,552 |
Schedule of Amortization Expense for Amortized Intangible Assets | As of June 30, 2020, the Company expects to record the following amortization expense in future periods (amounts in thousands): For the Six Months Ended June 30, Estimated Amortization Expense 2020 (remaining six months) $ 7,396 2021 14,738 2022 14,736 2023 14,640 2024 14,198 2025 and thereafter 138,333 Total $ 204,041 |
Consolidated Balance Sheet De_2
Consolidated Balance Sheet Detail (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Inventories | Inventories, net consists of the following: As of June 30, December 31, 2020 2019 (Amounts in thousands) Raw materials $ 40,196 $ 29,328 Work-in-process 5,873 8,360 Finished products 23,860 17,144 Total inventories, net $ 69,929 $ 54,832 |
Property, Plant and Equipment | Property, plant and equipment consist of the following: As of June 30, December 31, 2020 2019 (Amounts in thousands) Land $ 1,023 $ 1,023 Buildings 764 764 Leasehold improvements 28,824 23,905 Equipment 37,808 36,257 Furniture, fixtures and office equipment 6,873 6,312 Computer hardware and software 10,057 8,810 Construction in progress 7,565 6,707 Other 50 56 Total property, plant and equipment 92,964 83,834 Less - Accumulated depreciation (40,513 ) (35,379 ) Total property, plant and equipment, net $ 52,451 $ 48,455 |
Accrued Liabilities | Accrued liabilities consist of the following: As of June 30, December 31, 2020 2019 (Amounts in thousands) Employee compensation $ 12,320 $ 19,850 Taxes 3,330 3,874 Royalty and license fees 248 123 Warranties 833 1,500 Professional fees 1,120 1,081 Deferred revenue 7,276 5,005 Other 1,402 1,898 Total accrued liabilities $ 26,529 $ 33,331 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Carrying Value of Convertible Senior Notes | The net carrying value of the liability component of the 2019 Notes is as follows: As of June 30, December 31, 2020 2019 (Amounts in thousands) 0.375% convertible senior notes due 2024: Principal amount $ 287,500 $ 287,500 Less: unamortized debt discount (43,179 ) (47,921 ) Less: unamortized debt issuance costs (6,138 ) (6,812 ) Total debt 238,183 232,767 Less: current portion — — Net carrying amount $ 238,183 $ 232,767 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stock-Based Compensation Expense | The following table presents stock-based compensation expense in the Company’s consolidated statements of comprehensive income: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Amounts in thousands) Cost of product revenue $ 425 $ 292 $ 858 $ 616 Research and development 394 319 766 641 Selling, general and administrative 3,283 2,420 6,643 5,026 Total stock-based compensation $ 4,102 $ 3,031 $ 8,267 $ 6,283 |
Summary of Option Activity | Information regarding option activity for the six months ended June 30, 2020 under the Plans is summarized below: Shares Weighted Weighted- (in Years) Aggregate Options outstanding at December 31, 2019 957,559 $ 30.81 Granted 57,698 $ 100.53 Exercised (246,353 ) $ 21.97 Forfeited/expired/cancelled — $ — Options outstanding at June 30, 2020 768,904 $ 38.87 7.14 $ 65,243 Options exercisable at June 30, 2020 392,181 $ 30.64 6.26 $ 36,463 Vested and expected to vest at June 30, 2020 (1) 738,412 7.10 $ 62,833 (1) Represents the number of vested options as of June 30, 2020 plus the number of unvested options expected to vest as of June 30, 2020 based on the unvested outstanding options at June 30, 2020 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive |
Summary of Restricted Stock Unit Activity | The fair value of stock units is calculated using the closing price of the Company’s common stock on the date of grant. Information regarding stock unit activity, which includes activity for restricted stock units and performance stock units, for the six months ended June 30, 2020 under the Plans is summarized below: Shares Weighted- (in Years) Aggregate (in Thousands) Unvested at December 31, 2019 734,984 Awarded 149,755 Vested (170,778 ) Forfeited/expired/cancelled (17,863 ) Unvested at June 30, 2020 696,098 3.59 $ 86,045 Vested and expected to vest at June 30, 2020 (1) 641,476 3.28 $ 79,293 (1) Represents the number of vested stock units as of June 30, 2020 plus the number of unvested stock units expected to vest as of June 30, 2020 based on the unvested outstanding stock units at June 30, 2020 adjusted for estimated forfeiture rates of 8% for awards granted to non-executive |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Changes in Accumulated Other Comprehensive Income | The following shows the changes in the components of accumulated other comprehensive loss for the six months ended June 30, 2020 which consisted of only foreign currency translation adjustments for the periods shown (amounts in thousands): Foreign Balance as of December 31, 2019 $ (15,027 ) Other comprehensive income 914 Balance as of June 30, 2020 $ (14,113 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 tax authorities for the following periods: Jurisdiction Fiscal Years United States - federal and state 2016-2019 Sweden 2013-2019 Germany 2019 Netherlands 2013-2019 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Basic and Diluted Weighted Average Shares Outstanding | Basic and diluted weighted average shares outstanding were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (Amounts in thousands, except per share data) Net income $ 15,861 $ 8,095 $ 25,676 $ 16,148 Weighted average shares used in computing net income per share - basic 52,381 46,367 52,260 45,174 Effect of dilutive shares: Stock options and restricted stock awards 925 791 953 760 Convertible senior notes — 1,898 — 1,758 Dilutive potential common shares 925 2,689 953 2,518 Weighted average shares used in computing net income per share - diluted 53,306 49,056 53,213 47,692 Earnings per share: Basic $ 0.30 $ 0.17 $ 0.49 $ 0.36 Diluted $ 0.30 $ 0.17 $ 0.48 $ 0.34 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Percentage of Revenue from Significant Customers | Revenue from significant customers that represent 10% or more of the Company’s total revenue is as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cytiva (formerly GE Healthcare) 12 % 16 % 10 % 14 % MilliporeSigma 12 % 13 % 13 % 14 % |
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 Six Months Ended 2020 2019 2020 2019 Revenue by customers’ geographic locations: North America 47 % 51 % 47 % 49 % Europe 37 % 38 % 39 % 39 % APAC 16 % 11 % 14 % 12 % Other 0 % 0 % 0 % 0 % Total revenue 100 % 100 % 100 % 100 % |
Accounts Receivable | |
Percentage by Geographic Area or Significant Customers | Significant accounts receivable balances representing 10% or more of the Company’s total trade accounts receivable and royalties and other receivable balances are as follows: June 30, 2020 December 31, Cytiva (formerly GE Healthcare) 12 % 18 % MilliporeSigma 10 % N/A |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2020 | Dec. 31, 2019 | Jul. 31, 2019 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 560,364,000 | $ 528,392,000 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Cash and cash equivalents | $ 418,500,000 | $ 415,600,000 | |
0.375% Convertible Senior Notes due 2024 | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Principal amount | $ 287,500,000 | ||
Notes, due date | Jul. 15, 2024 | ||
Notes, frequency of periodic payment | semi-annually | ||
Total convertible senior notes | 238,200,000 | ||
Fair value of convertible senior notes | $ 364,000,000 | ||
Senior convertible notes | 0.375% | 0.375% |
Acquisition of C Technologies_3
Acquisition of C Technologies, Inc. - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 7 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Employees | ||||
Business Acquisition [Line Items] | ||||
Transaction costs | $ 9,000 | $ 9,000 | ||
Compensation Expense, Excluding Cost of Good and Service Sold | 1,500 | 3,700 | ||
Selling, general and administrative | ||||
Business Acquisition [Line Items] | ||||
Transaction costs | $ 4,000 | |||
C Technologies | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, revenue | 7,700 | 14,300 | $ 16,400 | |
Business acquisitions proforma net loss | 700 | 2,900 | $ 20,560 | $ 7,400 |
Deferred tax liability | 300 | |||
C Technologies | Employees | ||||
Business Acquisition [Line Items] | ||||
Compensation Expense, Excluding Cost of Good and Service Sold | 9,000 | |||
C Technologies | Goodwill [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible Asset Residual Value | $ 142,300 | $ 142,300 |
Acquisition of C Technologies_4
Acquisition of C Technologies, Inc. (Fair Value of Net Assets Acquired) (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
Goodwill | $ 468,725 | $ 468,413 |
C Technologies | ||
Business Acquisition [Line Items] | ||
Cash and cash equivalents | 3,795 | |
Restricted cash | 26,933 | |
Accounts receivable | 3,044 | |
Inventory | 3,783 | |
Prepaid expenses and other current assets | 93 | |
Fixed assets | 40 | |
Operating lease right of use asset | 3,836 | |
Deferred taxes | 895 | |
Goodwill | 142,314 | |
Accounts payable | (436) | |
Accrued liabilities | (2,767) | |
Accrued bonus | (26,928) | |
Deferred revenue | (1,709) | |
Operating lease liability | (51) | |
Operating lease liability, long-term | (3,785) | |
Fair value of net assets acquired | 239,887 | |
C Technologies | Customer relationships | ||
Business Acquisition [Line Items] | ||
Business combination, intangible assets | 59,680 | |
C Technologies | Technology—developed | ||
Business Acquisition [Line Items] | ||
Business combination, intangible assets | 28,920 | |
C Technologies | Trademark | ||
Business Acquisition [Line Items] | ||
Business combination, intangible assets | 1,570 | |
C Technologies | Non-compete agreements | ||
Business Acquisition [Line Items] | ||
Business combination, intangible assets | $ 660 |
Acquisition of C Technologies_5
Acquisition of C Technologies, Inc. (Unaudited Supplemental Pro Forma Information) (Detail) - C Technologies [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 7 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||||
Total revenue | $ 140,515 | |||
Net income | $ 700 | $ 2,900 | $ 20,560 | $ 7,400 |
Basic | $ 0.46 | |||
Diluted | $ 0.43 |
Summary of Disaggregation of Pr
Summary of Disaggregation of Product Revenues from Contracts with Customers by Major Product Line (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 87,462 | $ 70,692 | $ 163,552 | $ 131,326 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 87,432 | 70,670 | 163,492 | 131,282 |
Royalty and Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 30 | $ 22 | $ 60 | $ 44 |
Revenue from Significant Custom
Revenue from Significant Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 87,462 | $ 70,692 | $ 163,552 | $ 131,326 |
Cytiva (formerly GE Healthcare) | ||||
Concentration Risk [Line Items] | ||||
Revenue | 10,479 | 11,083 | 16,606 | 18,749 |
MilliporeSigma | ||||
Concentration Risk [Line Items] | ||||
Revenue | $ 10,674 | $ 9,487 | $ 21,566 | $ 18,894 |
Summary of Receivables and Defe
Summary of Receivables and Deferred Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Balances from contracts with customers only: | ||
Accounts receivable | $ 48,779 | $ 43,068 |
Deferred revenue (included in accrued liabilities in the consolidated balance sheets) | 7,276 | |
Revenue recognized during the six month period ended June 30, 2020 relating to: | ||
The beginning deferred revenue balance | $ 2,747 |
Credit Losses - Additional Info
Credit Losses - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Credit Loss [Abstract] | ||
Accounts receivable | $ 48,779 | $ 43,068 |
Accounts receivable, reserve for doubtful accounts | $ 538 | $ 525 |
Credit Losses - Summary Of Allo
Credit Losses - Summary Of Allowance For Credit Losses For Accounts Receivables (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | |
Credit Loss [Abstract] | ||
Beginning balance | $ (658) | $ (525) |
Change for expected credit losses | 83 | (133) |
Current period change for write-offs | 37 | |
Current period change for expected credit losses | 83 | (133) |
Ending balance | $ (538) | $ (658) |
Changes in Carrying Value of Go
Changes in Carrying Value of Goodwill (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill [Line Items] | |
Balance as of December 31, 2019 | $ 468,413 |
Cumulative translation adjustment | 19 |
Balance as of June 30, 2020 | 468,725 |
C Technologies, Inc. | |
Goodwill [Line Items] | |
Goodwill arising from Acquisition | 293 |
Balance as of June 30, 2020 | $ 142,314 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 248,695 | $ 248,683 |
Gross Carrying Value | 249,395 | 249,383 |
Accumulated Amortization | (44,654) | (36,831) |
Accumulated Amortization | (44,654) | (36,831) |
Net Carrying Value | 204,041 | 211,852 |
Net Carrying Value | $ 204,741 | $ 212,552 |
Weighted Average Useful Life (in years) | 16 years | 16 years |
Trademark | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 700 | $ 700 |
Net Carrying Value | 700 | 700 |
Technology - developed | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | 82,172 | 82,169 |
Accumulated Amortization | (11,863) | (9,669) |
Net Carrying Value | $ 70,309 | $ 72,500 |
Weighted Average Useful Life (in years) | 19 years | 19 years |
Patents | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 240 | $ 240 |
Accumulated Amortization | $ (240) | $ (240) |
Weighted Average Useful Life (in years) | 8 years | 8 years |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 160,834 | $ 160,825 |
Accumulated Amortization | (30,934) | (25,642) |
Net Carrying Value | $ 129,900 | $ 135,183 |
Weighted Average Useful Life (in years) | 15 years | 15 years |
Trademark | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 3,752 | $ 3,752 |
Accumulated Amortization | (427) | (333) |
Net Carrying Value | $ 3,325 | $ 3,419 |
Weighted Average Useful Life (in years) | 20 years | 20 years |
Other intangibles | ||
Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 1,697 | $ 1,697 |
Accumulated Amortization | (1,190) | (947) |
Net Carrying Value | $ 507 | $ 750 |
Weighted Average Useful Life (in years) | 3 years | 3 years |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Finite-Lived Intangible Liabilities [Line Items] | ||||
Amortization expense | $ 3.9 | $ 3.1 | $ 7.8 | $ 5.7 |
Amortization Expense for Amorti
Amortization Expense for Amortized Intangible Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Liabilities [Line Items] | ||
2020 (remaining six months) | $ 7,396 | |
2021 | 14,738 | |
2022 | 14,736 | |
2023 | 14,640 | |
2024 | 14,198 | |
2025 and thereafter | 138,333 | |
Total | $ 204,041 | $ 211,852 |
Schedule of Inventories (Detail
Schedule of Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Raw materials | $ 40,196 | $ 29,328 |
Work-in-process | 5,873 | 8,360 |
Finished products | 23,860 | 17,144 |
Total inventories, net | $ 69,929 | $ 54,832 |
Property, Plant and Equipment (
Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 1,023 | $ 1,023 |
Buildings | 764 | 764 |
Leasehold improvements | 28,824 | 23,905 |
Equipment | 37,808 | 36,257 |
Furniture, fixtures and office equipment | 6,873 | 6,312 |
Computer hardware and software | 10,057 | 8,810 |
Construction in progress | 7,565 | 6,707 |
Other | 50 | 56 |
Total property, plant and equipment | 92,964 | 83,834 |
Less - Accumulated depreciation | (40,513) | (35,379) |
Total property, plant and equipment, net | $ 52,451 | $ 48,455 |
Consolidated Balance Sheet - Ad
Consolidated Balance Sheet - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Depreciation | $ 2.6 | $ 1.8 | $ 5.1 | $ 3.3 |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule of Accrued Liabilities [Line Items] | ||
Employee compensation | $ 12,320 | $ 19,850 |
Taxes | 3,330 | 3,874 |
Royalty and license fees | 248 | 123 |
Warranties | 833 | 1,500 |
Professional fees | 1,120 | 1,081 |
Deferred revenue | 7,276 | 5,005 |
Other | 1,402 | 1,898 |
Total accrued liabilities | $ 26,529 | $ 33,331 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Detail) | Jul. 22, 2019USD ($)shares | Jul. 19, 2019USD ($)$ / shares | Sep. 23, 2019USD ($)shares | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jul. 31, 2019USD ($) | Jul. 16, 2019USD ($) |
Debt Instrument [Line Items] | |||||||||
Accretion of the debt discount | $ 5,415,000 | $ 2,231,000 | |||||||
Loss on extinguishment of debt | (5,700,000) | ||||||||
Common Stock [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Conversion of Convertible Securities Stock Issued | shares | shares | 2,316,200 | ||||||||
0.375% Convertible Senior Notes due 2024 | |||||||||
Debt Instrument [Line Items] | |||||||||
Notes issued | $ 287,500,000 | $ 287,500,000 | |||||||
Notes, interest rate | 0.375% | ||||||||
Proceeds from issuance of convertible senior notes, net of costs | $ 278,500,000 | ||||||||
Interest repayment terms | Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2020. | ||||||||
Notes, due date | Jul. 15, 2024 | ||||||||
Notes conversion ratio per $1,000 principal amount | 8.6749 | ||||||||
Notes initial conversion price | $ / shares | $ 115.28 | ||||||||
Notes redemption price | 100.00% | ||||||||
Contractual coupon interest | $ 300,000 | 500,000 | |||||||
Accretion of the debt discount | 2,400,000 | 4,700,000 | |||||||
Amortization of the debt issuance costs | $ 300,000 | $ 700,000 | |||||||
Effective interest rate on the Notes | 5.10% | 5.10% | |||||||
Notes, carrying value | $ 238,200,000 | $ 238,200,000 | |||||||
Fair value of the note | 364,000,000 | $ 364,000,000 | |||||||
Additional Notes issued | $ 37,500,000 | ||||||||
Discount rate | 4.50% | ||||||||
Proceeds allocated to the conversion feature | $ 52,100,000 | ||||||||
Transaction costs attributable to liability component | 7,400,000 | ||||||||
Transaction costs attributable to equity component | 1,600,000 | 1,600,000 | |||||||
2.125% Convertible Senior Notes due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Notes issued | 115,000,000 | $ 115,000,000 | $ 92,000,000 | ||||||
Notes, interest rate | 2.125% | ||||||||
Notes, due date | Jun. 1, 2021 | Jun. 1, 2021 | |||||||
Notes redemption price | 100.00% | ||||||||
Notes issued, fair value | $ 96,300,000 | $ 96,300,000 | |||||||
Contractual coupon interest | $ 600,000 | 1,200,000 | |||||||
Accretion of the debt discount | 1,000,000 | 1,900,000 | |||||||
Amortization of the debt issuance costs | 200,000 | 300,000 | |||||||
Effective interest rate on the Notes | 6.60% | 6.60% | |||||||
Notes, carrying value | 105,700,000 | 105,700,000 | |||||||
Fair value of the note | $ 310,500,000 | $ 310,500,000 | |||||||
Repayment Of Senior Debt | $ 92,300,000 | $ 23,000,000 | |||||||
Accrued interest | $ 300,000 | ||||||||
Total consideration on conversion | $ 253,300,000 | ||||||||
Face amount of remaining convertible debt | 60,800,000 | ||||||||
Equity component of converted debt | $ 163,600,000 | 38,300,000 | |||||||
Loss on extinguishment of debt | $ (1,100,000) | $ (4,600,000) | |||||||
2.125% Convertible Senior Notes due 2021 | Common Stock [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Conversion of Convertible Securities Stock Issued | shares | shares | 1,850,155 | 466,045 | |||||||
Conversion of Convertible Securities Stock Issued | value | $ 161,000,000 | $ 37,800,000 | |||||||
2.125% Non Convertible Senior Notes due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Effective interest rate on the Notes | 3.90% | 3.90% | |||||||
Equity component of converted debt | $ 200,100,000 | $ 200,100,000 |
Convertible Senior Notes - Conv
Convertible Senior Notes - Convertible Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Principal amount | $ 287,500 | $ 287,500 |
Less: unamortized debt discount | (43,179) | (47,921) |
Less: unamortized debt issuance costs | (6,138) | (6,812) |
Total debt | 238,183 | 232,767 |
Net carrying amount | $ 238,183 | $ 232,767 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 19, 2019 | May 03, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Common stock, shares issued | 1,587,000 | 3,144,531 | 52,494,884 | 52,494,884 | 52,078,258 | |||
Common stock issue price per share | $ 87 | $ 64 | ||||||
Exercised number of shares | 246,353 | |||||||
Net proceeds from public offering | $ 131,100 | $ 189,600 | $ 189,623 | |||||
Stock-based compensation expense | $ 4,102 | $ 3,031 | $ 8,267 | $ 6,283 | ||||
Stock options, outstanding | 768,904 | 985,266 | 768,904 | 985,266 | 957,559 | |||
Closing price of common stock | $ 123.61 | $ 123.61 | ||||||
Aggregate intrinsic value of stock options exercised | $ 2,500 | $ 3,600 | ||||||
Weighted average grant date fair value of share-based awards granted | $ 46.56 | $ 30.07 | ||||||
Total fair value of stock options vested | $ 2,500 | $ 2,700 | ||||||
Total unrecognized compensation cost | $ 42,800 | $ 42,800 | ||||||
Unrecognized compensation cost, weighted average remaining requisite service period | 3 years 9 months 29 days | |||||||
Number of unvested options and restricted stock units | 1,761,586 | 1,761,586 | ||||||
2018 Plan | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Common stock shares reserved for Issuance | 2,778,000 | |||||||
Incentive options, vesting period | 2,370,882 | 2,370,882 | ||||||
Employee Stock Option | Minimum | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Incentive options, vesting period | 3 years | |||||||
Employee Stock Option | Minimum | Vest Over Three Year | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Incentive options, vesting percentage | 20.00% | |||||||
Employee Stock Option | Maximum | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Incentive options, vesting period | 5 years | |||||||
Employee Stock Option | Maximum | Vest Over Five Year | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Incentive options, vesting percentage | 33.00% | |||||||
Non-Employee Directors | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Incentive options, vesting period | 1 year | |||||||
Option To Purchase Common Stock | Minimum | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Incentive options, term | 10 years | |||||||
Unvested Options | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Incentive options, vesting period | 5 years | |||||||
Restricted Stock Units and Performance Stock Units | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Restricted stock units, outstanding | 696,098 | 766,986 | 696,098 | 766,986 | 734,984 | |||
Closing price of common stock | $ 123.61 | $ 123.61 | ||||||
Aggregate intrinsic value of restricted stock units vested | $ 16,600 | $ 11,700 | ||||||
Weighted average grant date fair value of restricted stock units granted | $ 59.84 | $ 31.97 | ||||||
Total grant date fair value of restricted stock units vested | $ 7,300 | $ 6,000 | ||||||
Underwriters | Common Stock | ||||||||
Stockholders Equity Note Disclosure [Line Items] | ||||||||
Exercised number of shares | 207,000 | 410,156 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 4,102 | $ 3,031 | $ 8,267 | $ 6,283 |
Cost of product revenue | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 425 | 292 | 858 | 616 |
Research and development | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 394 | 319 | 766 | 641 |
Selling, general and administrative | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 3,283 | $ 2,420 | $ 6,643 | $ 5,026 |
Summary of Option Activity (Det
Summary of Option Activity (Detail) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)$ / sharesshares | ||
Options Outstanding | ||
Options outstanding at December 31, 2019 | shares | 957,559 | |
Granted | shares | 57,698 | |
Exercised | shares | (246,353) | |
Options outstanding at June 30, 2020 | shares | 768,904 | |
Options exercisable at June 30, 2020 | shares | 392,181 | |
Vested and expected to vest at June 30, 2020(1) | shares | 738,412 | [1] |
Weighted-Average Exercise Price Per Share | ||
Options outstanding at December 31, 2019 | $ / shares | $ 30.81 | |
Granted | $ / shares | 100.53 | |
Exercised | $ / shares | 21.97 | |
Options outstanding at June 30, 2020 | $ / shares | 38.87 | |
Options exercisable at June 30, 2020 | $ / shares | $ 30.64 | |
Weighted-Average Remaining Contractual Term (in years) | ||
Options outstanding at June 30, 2020 | 7 years 1 month 20 days | |
Options exercisable at June 30, 2020 | 6 years 3 months 3 days | |
Vested and expected to vest at June 30, 2020 | 7 years 1 month 6 days | [1] |
Aggregate Intrinsic Value | ||
Options outstanding at June 30, 2020 | $ | $ 65,243 | |
Options exercisable at June 30, 2020 | $ | 36,463 | |
Vested and expectd to vest at June 30, 2020 | $ | $ 62,833 | [1] |
[1] | Represents the number of vested options as of June 30, 2020 plus the number of unvested options expected to vest as of June 30, 2020 based on the unvested outstanding options at June 30, 2020 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 | Jun. 30, 2020 |
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 and Performance Stock Units $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($)shares | ||
Options Outstanding | ||
Unvested at December 31, 2019 | 734,984 | |
Awarded | 149,755 | |
Vested | (170,778) | |
Forfeited/expired/cancelled | (17,863) | |
Unvested at June 30, 2020 | 696,098 | |
Vested and expected to vest at June 30, 2020 | 641,476 | [1] |
Weighted-Average Remaining Contractual Term (in years) | ||
Unvested at June 30, 2020 | 3 years 7 months 2 days | |
Vested and expected to vest at June 30, 2020 | 3 years 3 months 10 days | [1] |
Aggregate Intrinsic Value | ||
Unvested at June 30, 2020 | $ | $ 86,045 | |
Vested and expected to vest at June 30, 2020 | $ | $ 79,293 | [1] |
[1] | Represents the number of vested stock units as of June 30, 2020 plus the number of unvested stock units expected to vest as of June 30, 2020 based on the unvested outstanding stock units at June 30, 2020 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 U_2
Summary of Restricted Stock Unit Activity (Parenthetical) (Detail) - Restricted Stock Units and Performance Stock Units | Jun. 30, 2020 |
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% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)l | Jun. 30, 2019USD ($) | |
Maximum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Bioreactors used in perfusion cell culture applications | 2,000 | |||
Minimum [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Bioreactors used in perfusion cell culture applications | 50 | |||
NGL Impact A [Member] | Research and Development Arrangement [Member] | ||||
Commitments and Contingencies [Line Items] | ||||
Payments to Navigo in connection with this program, which are recorded to research and development expenses | $ | $ 0 | $ 0 | $ 0 | $ 0 |
Change in Accumulated Other Com
Change in Accumulated Other Comprehensive Loss (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | $ 1,059,768 |
Balance | 1,100,027 |
Foreign Currency Translation Adjustment | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Balance | (15,027) |
Other comprehensive income | 914 |
Balance | $ (14,113) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Taxes [Line Items] | ||||
Corporate tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Income tax (benefit) provision | 1.00% | 15.80% | 3.80% | 19.80% |
Summary of Tax Returns Periods
Summary of Tax Returns Periods Subject to Examination by Federal, State and International Tax Authorities (Detail) | 6 Months Ended |
Jun. 30, 2020 | |
United States | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2016 |
United States | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2019 |
Sweden | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2013 |
Sweden | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2019 |
Germany | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2019 |
Netherlands | Earliest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2013 |
Netherlands | Latest Tax Year | |
Income Tax Examination [Line Items] | |
Fiscal year subject to examination | 2019 |
Earnings Per Share - (Additiona
Earnings Per Share - (Additional Information) (Detail) - USD ($) | Jul. 22, 2019 | Sep. 23, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jul. 31, 2019 | Jul. 19, 2019 | Jul. 16, 2019 |
Stock options, outstanding | 768,904 | 985,266 | 768,904 | 985,266 | 957,559 | |||||
Stock options, weighted average exercise price | $ 38.87 | $ 30.16 | $ 38.87 | $ 30.16 | $ 30.81 | |||||
Common stock excluded from calculation of diluted earnings per share | 11,578 | 119,026 | 12,328 | 180,160 | ||||||
Common Stock [Member] | ||||||||||
Conversion of Convertible Securities Stock Issued | 2,316,200 | |||||||||
2.125% Convertible Senior Notes due 2021 | ||||||||||
Aggregate principal amount | $ 115,000,000 | $ 115,000,000 | $ 92,000,000 | |||||||
2.125% Convertible Senior Notes due 2021 | Common Stock [Member] | ||||||||||
Conversion of Convertible Securities Stock Issued | 1,850,155 | 466,045 | ||||||||
0.375% Convertible Senior Notes due 2024 | ||||||||||
Aggregate principal amount | $ 287,500,000 | $ 287,500,000 | ||||||||
Restricted Stock Units and Performance Stock Units | ||||||||||
Restricted stock units, outstanding | 696,098 | 766,986 | 696,098 | 766,986 | 734,984 |
Earnings Per Share - (Reconcili
Earnings Per Share - (Reconciliation of Basic and Diluted Shares Amounts) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Schedule Of Earnings Per Share Basic And Diluted [Line Items] | ||||
Net income | $ 15,861 | $ 8,095 | $ 25,676 | $ 16,148 |
Weighted average shares used in computing net income per share - basic | 52,381 | 46,367 | 52,260 | 45,174 |
Effect of dilutive shares: | ||||
Stock options and restricted stock awards | 925 | 791 | 953 | 760 |
Convertible senior notes | 1,898 | 1,758 | ||
Dilutive potential common shares | 925 | 2,689 | 953 | 2,518 |
Weighted average shares used in computing net income per share - diluted | 53,306 | 49,056 | 53,213 | 47,692 |
Earnings per share: | ||||
Basic | $ 0.30 | $ 0.17 | $ 0.49 | $ 0.36 |
Diluted | $ 0.30 | $ 0.17 | $ 0.48 | $ 0.34 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Spectrum Inc. | ||
Related Party Transaction [Line Items] | ||
Rent expense | $ 0.2 | $ 0.3 |
Principal Owner | Minimum | Spectrum Inc. | ||
Related Party Transaction [Line Items] | ||
Non controlling ownership interest minimum | 5.00% | 5.00% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2020Segment | |
Number of operating segments | 1 |
Segment Reporting - (Percentage
Segment Reporting - (Percentage of Revenue by Geographic Area) (Details) - Geographic Concentration Risk - Total Revenue | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 100.00% | 100.00% | 100.00% | 100.00% |
North America | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 47.00% | 51.00% | 47.00% | 49.00% |
Europe | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 37.00% | 38.00% | 39.00% | 39.00% |
APAC | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 16.00% | 11.00% | 14.00% | 12.00% |
Non-US [Member] | ||||
Concentration Risk [Line Items] | ||||
Revenues, percentage by country | 0.00% | 0.00% | 0.00% | 0.00% |
Segment Reporting - Percentage
Segment Reporting - Percentage of Revenue from Significant Customers (Detail) - Customer Concentration Risk - Sales Revenue | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
GE Healthcare | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from significant customers | 12.00% | 16.00% | 10.00% | 14.00% |
MilliporeSigma | ||||
Revenue, Major Customer [Line Items] | ||||
Revenue from significant customers | 12.00% | 13.00% | 13.00% | 14.00% |
Segment Reporting - Percentag_2
Segment Reporting - Percentage of Accounts Receivable by Significant Customers (Detail) - Customer Concentration Risk - Accounts Receivable | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
GE Healthcare | ||
Concentration Risk [Line Items] | ||
Revenue from significant customers | 12.00% | 18.00% |
MilliporeSigma | ||
Concentration Risk [Line Items] | ||
Revenue from significant customers | 10.00% |