Celldex Therapeutics (CLDX) 10-Q 8 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document and Entity Information
Entity Registrant Name	Celldex Therapeutics, Inc.
Entity Central Index Key	744,218
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		100,545,519
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

CONDENSED BALANCE SHEETS

CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and Cash Equivalents	$ 32,482	$ 72,108
Marketable Securities	187,646	217,781
Accounts and Other Receivables	1,116	970
Prepaid and Other Current Assets	7,538	4,077
Total Current Assets	228,782	294,936
Property and Equipment, Net	11,293	11,461
Intangible Assets, Net	20,287	20,794
Other Assets	1,879	1,428
Goodwill	8,965	8,965
Total Assets	271,206	337,584
Current Liabilities:
Accounts Payable	706	1,506
Accrued Expenses	14,937	24,316
Current Portion of Long-Term Liabilities	4,360	4,418
Total Current Liabilities	20,003	30,240
Other Long-Term Liabilities	16,494	17,239
Total Liabilities	36,497	47,479
Commitments and Contingent Liabilities
Stockholders' Equity:
Convertible Preferred Stock, $.01 Par Value; 3,000,000 Shares Authorized; No Shares Issued and Outstanding at June 30, 2016 and December 31, 2015
Common Stock, $.001 Par Value; 297,000,000 Shares Authorized; 99,394,537 and 98,685,595 Shares Issued and Outstanding at June 30, 2016 and December 31, 2015, respectively	99	99
Additional Paid-In Capital	889,468	878,655
Accumulated Other Comprehensive Income	2,723	2,307
Accumulated Deficit	(657,581)	(590,956)
Total Stockholders' Equity	234,709	290,105
Total Liabilities and Stockholders' Equity	$ 271,206	$ 337,584

CONDENSED BALANCE SHEETS (Paren

CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
CONSOLIDATED BALANCE SHEETS
Convertible Preferred Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Convertible Preferred Stock, Shares Authorized	3,000,000	3,000,000
Convertible Preferred Stock, Shares Issued	0	0
Convertible Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	297,000,000	297,000,000
Common Stock, Shares Issued	99,394,537	98,685,595
Common Stock, Shares Outstanding	99,394,537	98,685,595

CONDENSED STATEMENTS OF OPERATI

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
REVENUE:
Product Development and Licensing Agreements	$ 604	$ 334	$ 1,057	$ 676
Contracts and Grants	785	1,844	1,635	1,988
Total Revenue	1,389	2,178	2,692	2,664
OPERATING EXPENSE:
Research and Development	25,711	26,490	53,158	51,615
General and Administrative	7,790	8,184	17,097	14,273
Amortization of Acquired Intangible Assets	254	254	507	507
Total Operating Expense	33,755	34,928	70,762	66,395
Operating Loss	(32,366)	(32,750)	(68,070)	(63,731)
Investment and Other Income, Net	414	391	1,445	1,198
Net Loss	$ (31,952)	$ (32,359)	$ (66,625)	$ (62,533)
Basic and Diluted Net Loss Per Common Share (in dollars per share)	$ (0.32)	$ (0.33)	$ (0.67)	$ (0.65)
Shares Used in Calculating Basic and Diluted Net Loss per Share (in shares)	98,817	98,482	98,753	95,477
COMPREHENSIVE LOSS:
Net Loss	$ (31,952)	$ (32,359)	$ (66,625)	$ (62,533)
Other Comprehensive (Loss) Income:
Foreign Currency Translation Adjustments				15
Unrealized Gain (Loss) on Marketable Securities	36	(180)	416	(169)
Comprehensive Loss	$ (31,916)	$ (32,539)	$ (66,209)	$ (62,687)

CONDENSED STATEMENTS OF CASH FL

CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows from Operating Activities:
Net Loss	$ (66,625)	$ (62,533)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Depreciation and Amortization	1,434	1,384
Amortization of Intangible Assets	507	507
Amortization and Premium of Marketable Securities, Net	612	(1,228)
Loss on Sale or Disposal of Assets	74
Stock-Based Compensation Expense	7,913	4,808
Non-Cash Expense	1,638	144
Changes in Operating Assets and Liabilities:
Accounts and Other Receivables	(146)	(7)
Prepaid and Other Current Assets	(3,124)	(1,837)
Other Assets		(98)
Accounts Payable and Accrued Expenses	(10,212)	2,524
Other Liabilities	(803)	(1,015)
Net Cash Used in Operating Activities	(68,732)	(57,351)
Cash Flows from Investing Activities:
Sales and Maturities of Marketable Securities	149,367	86,345
Purchases of Marketable Securities	(120,053)	(164,434)
Investment in Other	(1,801)
Acquisition of Property and Equipment	(1,307)	(3,108)
Net Cash Provided by (Used in) Investing Activities	26,206	(81,197)
Cash Flows from Financing Activities:
Net Proceeds from Stock Issuances	2,551	188,840
Proceeds from Issuance of Stock from Employee Benefit Plans	349	3,257
Net Cash Provided by Financing Activities	2,900	192,097
Effect of Exchange Rate Changes on Cash and Cash Equivalents		15
Net (Decrease) Increase in Cash and Cash Equivalents	(39,626)	53,564
Cash and Cash Equivalents at Beginning of Period	72,108	28,020
Cash and Cash Equivalents at End of Period	32,482	81,584
Non-cash Investing Activities
Acquisition of Property and Equipment included in Accounts Payable and Accrued Expenses	$ 108	$ 503

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2016
Basis of Presentation
Basis of Presentation	(1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared by Celldex Therapeutics, Inc. (the “Company” or “Celldex”) in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and reflect the operations of the Company and its wholly-owned subsidiary. All intercompany transactions have been eliminated in consolidation. These interim financial statements do not include all the information and footnotes required by U.S. GAAP for annual financial statements and should be read in conjunction with the audited financial statements for the year ended December 31, 2015, which are included in the Company’s Annual Report on Form 10-K/A filed with the Securities and Exchange Commission (“SEC”) on February 25, 2016. In the opinion of management, the interim financial statements reflect all normal recurring adjustments necessary to fairly state the Company’s financial position and results of operations for the interim periods presented. The year-end condensed balance sheet data presented for comparative purposes was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for any future interim period or the fiscal year ending December 31, 2016. At June 30, 2016, the Company had cash, cash equivalents and marketable securities of $220.1 million. The Company incurred a loss of $66.6 million for the six months ended June 30, 2016. Net cash used in operations for the six months ended June 30, 2016 was $68.7 million. The Company believes that the cash, cash equivalents and marketable securities at June 30, 2016 will be sufficient to meet estimated working capital requirements and fund planned operations for at least the next twelve months. During the next twelve months, the Company may take further steps to raise additional capital to meet its long-term liquidity needs. These capital raising activities may include, but may not be limited to, one or more of the following: the licensing of technology programs with existing or new collaborative partners, possible business combinations, issuance of debt, or the issuance of common stock or other securities via private placements or public offerings. While the Company may seek capital through a number of means, there can be no assurance that additional financing will be available on acceptable terms, if at all, and the Company’s negotiating position in capital-raising efforts may worsen as existing resources are used. There is also no assurance that the Company will be able to enter into further collaborative relationships. Additional equity financing may be dilutive to the Company’s stockholders; debt financing, if available, may involve significant cash payment obligations and covenants that restrict the Company’s ability to operate as a business; and licensing or strategic collaborations may result in royalties or other terms which reduce the Company’s economic potential from products under development.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Significant Accounting Policies
Significant Accounting Policies	(2) Significant Accounting Policies The significant accounting policies used in preparation of these condensed consolidated financial statements for the six months ended June 30, 2016 are consistent with those discussed in Note 2 to the financial statements in our Annual Report on Form 10-K/A for the year ended December 31, 2015, except for the adoption of new accounting standards during the first six months of 2016 as discussed below. Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position or results of operations upon adoption. In February 2016, the FASB issued a new U.S. GAAP accounting standard which requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for the Company on January 1, 2019. The Company is currently evaluating the potential impact that this standard may have on the Company’s financial statements. In March 2016, the FASB issued a new U.S. GAAP accounting standard which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new standard will be effective for the Company on January 1, 2017. The Company is currently evaluating the potential impact that this standard may have on the Company’s financial statements. In June 2016, the FASB issued a new U.S. GAAP accounting standard which changes the impairment model for most financial assets and certain other instruments. Under the new standard, entities holding financial assets and net investment in leases that are not accounted for at fair value through net income to be presented at the net amount expected to be collected. An allowance for credit losses will be a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. The new standard will be effective for the Company on January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company’s financial statements.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2016
Net Loss Per Share
Net Loss Per Share	(3) Net Loss Per Share Basic net loss per common share is based upon the weighted-average number of common shares outstanding during the period, excluding restricted stock that has been issued but is not yet vested. Diluted net loss per common share is based upon the weighted-average number of common shares outstanding during the period plus additional weighted-average potentially dilutive common shares outstanding during the period when the effect is dilutive. The potentially dilutive common shares that have not been included in the net loss per common share calculations because the effect would have been anti-dilutive are as follows: Six months ended June 30, 2016 2015 Stock options Restricted stock

Comprehensive Loss

Comprehensive Loss	6 Months Ended
	Jun. 30, 2016
Comprehensive Loss
Comprehensive Loss	(4) Comprehensive Loss The changes in Accumulated Other Comprehensive Income by component for the three and six months ended June 30, 2016 are summarized below. No amounts were reclassified out of accumulated other comprehensive income during the three or six months ended June 30, 2016. Unrealized Gain (Loss) on Marketable Securities, net of tax Foreign Currency Items Total (In thousands) Balance at March 31, 2016 $ $ $ Other comprehensive income before reclassifications — Amounts reclassified from other comprehensive income — — — Net current-period other comprehensive income — Balance at June 30, 2016 $ $ $ Balance at December 31, 2015 $ ) $ $ Other comprehensive income before reclassifications — Amounts reclassified from other comprehensive income — — — Net current-period other comprehensive income — Balance at June 30, 2016 $ $ $

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements.
Fair Value Measurements	(5) Fair Value Measurements The following tables set forth the Company’s financial assets subject to fair value measurements: As of June 30, 2016 Level 1 Level 2 Level 3 (In thousands) Money market funds and cash equivalents $ $ — $ $ — Marketable securities — — $ $ — $ $ — As of December 31, 2015 Level 1 Level 2 Level 3 (In thousands) Money market funds and cash equivalents $ $ — $ $ — Marketable securities — — $ $ — $ $ — There have been no transfers of assets or liabilities between the fair value measurement classifications. The Company’s financial instruments consist mainly of cash and cash equivalents, marketable securities, short-term accounts receivable and accounts payable. The Company values its marketable securities utilizing independent pricing services which normally derive security prices from recently reported trades for identical or similar securities, making adjustments based on significant observable transactions. At each balance sheet date, observable market inputs may include trade information, broker or dealer quotes, bids, offers or a combination of these data sources. Short-term accounts receivable and accounts payable are reflected in the accompanying consolidated financial statements at cost, which approximates fair value due to the short-term nature of these instruments.

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2016
Marketable Securities
Marketable Securities	(6) Marketable Securities A summary of marketable securities is shown below: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) June 30, 2016 Marketable securities U.S. government and municipal obligations Maturing in one year or less $ $ $ — $ Maturing after one year through three years — Total U.S. government and municipal obligations $ $ $ — $ Corporate debt securities Maturing in one year or less $ $ $ ) $ Maturing after one year through three years — Total corporate debt securities $ $ $ ) $ Total marketable securities $ $ $ ) $ December 31, 2015 Marketable securities U.S. government and municipal obligations Maturing in one year or less $ $ $ ) $ Maturing after one year through three years ) Total U.S. government and municipal obligations $ $ $ ) $ Corporate debt securities Maturing in one year or less $ $ $ ) $ Maturing after one year through three years ) Total corporate debt securities $ $ $ ) $ Total marketable securities $ $ $ ) $ The marketable securities held by the Company were high investment grade and there were no marketable securities that the Company considered to be other-than-temporarily impaired as of June 30, 2016. Marketable securities include $0.8 million and $1.5 million in accrued interest at June 30, 2016 and December 31, 2015, respectively.

Intangible Assets and Goodwill

Intangible Assets and Goodwill	6 Months Ended
	Jun. 30, 2016
Intangible Assets and Goodwill
Intangible Assets and Goodwill	(7) Intangible Assets and Goodwill Intangible assets, net of accumulated amortization, and goodwill are as follows: June 30, 2016 December 31, 2015 Estimated Life Cost Accumulated Amortization Net Cost Accumulated Amortization Net (In thousands) Intangible Assets: IPR&D Indefinite $ $ — $ $ $ — $ Amgen Amendment 16 years ) ) Core Technology 11 years ) ) Total Intangible Assets $ $ ) $ $ $ ) $ Goodwill Indefinite $ $ — $ $ $ — $ The IPR&D intangible asset was recorded in connection with the acquisition of CuraGen and relates to the development of glembatumumab vedotin . At the date of acquisition and at June 30, 2016, glembatumumab vedotin had not yet reached technological feasibility nor did it have any alternative future use. G lembatumumab vedotin is in a randomized, Phase 2b study for the treatment of triple negative breast cancer and a Phase 2 study for the treatment of metastatic melanoma.

Other Assets

Other Assets	6 Months Ended
	Jun. 30, 2016
Other Assets
Other Assets	(8) Other Assets In April 2016, the Company entered into a research and collaboration agreement with an undisclosed private company to access novel technologies and paid $3.5 million to support research activities and make an investment in the private company. At June 30, 2016, the Company has recorded $1.8 million to other assets related to this investment and $1.7 million was initially recorded to prepaid and other currents assets and will be amortized over the term of the agreement.

Other Long-Term Liabilities

Other Long-Term Liabilities	6 Months Ended
	Jun. 30, 2016
Other Long-Term Liabilities
Other Long-Term Liabilities	(9) Other Long-Term Liabilities Other long-term liabilities include the following: June 30, 2016 December 31, 2015 (In thousands) Deferred Rent $ $ Net Deferred Tax Liability related to IPR&D Deferred Income from Sale of Tax Benefits Deferred Revenue Total Less Current Portion ) ) Long-Term Portion $ $ In November 2015, December 2014, January 2014, January 2013 and January 2012, the Company received approval from the New Jersey Economic Development Authority and agreed to sell New Jersey tax benefits of $9.8 million, $1.9 million, $1.1 million, $0.8 million and $0.8 million to an independent third party for $9.2 million, $1.8 million, $1.0 million, $0.8 million and $0.7 million, respectively. Under the agreement, the Company must maintain a base of operations in New Jersey for five years or the tax benefits must be paid back on a pro-rata basis based on the number of years completed. During the six months ended June 30, 2016 and 2015, the Company recorded $0.6 million and $0.6 million to other income related to the sale of these tax benefits, respectively.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity
Stockholders' Equity	(10) Stockholders’ Equity In March 2015, the Company issued 8,337,500 shares of its common stock in an underwritten public offering resulting in net proceeds to the Company of $188.8 million, after deducting underwriting fees and offering expenses. In May 2016, the Company entered into an agreement with Cantor Fitzgerald & Co. to allow the Company to issue and sell shares of its common stock having an aggregate offering price of up to $60.0 million from time to time through Cantor, acting as agent. Subject to the terms and conditions of the agreement, Cantor will sell shares from time to time based upon the Company’s instructions, including any price, time or size limits specified by the Company. Under the agreement, the Company pays Cantor a fixed commission rate of 3.0% of the gross sales price per share of any common stock sold through Cantor, as agent. In June and July 2016, the Company issued 593,111 and 1,109,536 shares under the agreement and raised $2.7 million and $5.0 million in net proceeds, respectively. At July 31, 2016, the Company had $52.0 million remaining in aggregate gross offering price available under the agreement.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2016
Stock-Based Compensation
Stock-Based Compensation	(11) Stock-Based Compensation A summary of stock option activity for the six months ended June 30, 2016 is as follows: Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (In Years) Options Outstanding at December 31, 2015 $ Granted $ Exercised ) $ Canceled ) $ Options Outstanding at June 30, 2016 $ Options Vested and Expected to Vest at June 30, 2016 $ Options Exercisable at June 30, 2016 $ Shares Available for Grant under the 2008 Plan The weighted average grant-date fair value of stock options granted during the six months ended June 30, 2016 was $3.23. Stock-based compensation expense for the three and six months ended June 30, 2016 and 2015 was recorded as follows: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (In thousands) Research and development $ $ $ $ General and administrative Total stock-based compensation expense $ $ $ $ The fair values of employee and director stock options granted during the three and six months ended June 30, 2016 and 2015 were valued using the Black-Scholes option-pricing model with the following assumptions: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Expected stock price volatility % % 70 - 77 % 67 - 69 % Expected option term 6.0 years 6.0 years 6.0 years 6.0 years Risk-free interest rate % % 1.5 – 1.6 % 1.8 - 2.2 % Expected dividend yield None None None None

Revenue

Revenue	6 Months Ended
	Jun. 30, 2016
Revenue.
Revenue	(12) Revenue Bristol-Myers Squibb Company (BMS) In May 2014, the Company entered into a clinical trial collaboration with BMS to evaluate the safety, tolerability and preliminary efficacy of varlilumab and Opdivo ® , BMS’s PD-1 immune checkpoint inhibitor, in a Phase 1/2 study. Under the terms of this clinical trial collaboration, BMS made a one-time payment to the Company of $5.0 million and BMS and the Company amended the terms of the Company’s existing license agreement with Medarex (a subsidiary of BMS) related to the Company’s CD27 program whereby certain future milestone payments were waived and future royalty rates were reduced that may have been due from the Company to Medarex. In return, BMS was granted a time-limited right of first negotiation if the Company wishes to out-license varlilumab. The companies also agreed to work exclusively with each other to explore anti-PD-1 antagonist antibody and anti-CD27 agonist antibody combination regimens. The clinical trial collaboration provides that the companies will share development costs and that the Company will be responsible for conducting the ongoing Phase 1/2 study. The Company has determined that its performance obligations under the BMS agreement, which primarily include performing research and development, supplying varlilumab and participating in the joint development committee, should be accounted for as a single unit of accounting and estimated that its performance period under the BMS agreement would be 5 years. Accordingly, the $5.0 million up-front payment was initially recorded as deferred revenue and is being recognized as revenue on a straight-line basis over the estimated 5-year performance period using the Contingency Adjusted Performance Model (“CAPM”). The BMS agreement also provides for BMS to reimburse the Company for 50% of the external costs incurred by the Company in connection with the clinical trial. These BMS payments will be recognized as revenue under the CAPM. The Company recorded $0.6 million and $1.0 million in revenue related to the BMS agreement during the three and six months ended June 30, 2016, respectively, and $0.3 million and $0.6 million during the three and six months ended June 30, 2015, respectively. Rockefeller University (Rockefeller) In September 2013, the Company entered into an agreement, as amended, with Rockefeller pursuant to which the Company performs research and development services for Rockefeller. The Company bills Rockefeller quarterly for actual time and direct costs incurred and records those amounts to revenue in the quarter the services are performed. The Company recorded $0.4 million and $0.8 million in revenue related to the Rockefeller agreement during the three and six months ended June 30, 2016 and $1.5 million and $1.6 million during the three and six months ended June 30, 2015, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Taxes
Income Taxes	(13) Income Taxes Massachusetts, New Jersey and Connecticut are the three states in which the Company primarily operates or has operated and has income tax nexus. The Company is not currently under examination by any jurisdictions for any tax year. The Company has evaluated the positive and negative evidence bearing upon the realizability of its net deferred tax assets, which are comprised principally of net operating loss carryforwards, capitalized R&D expenditures and R&D tax credit carryforwards. The Company has determined that it is more likely than not that it will not recognize the benefits of federal and state deferred tax assets and, as a result, a full valuation allowance was maintained at June 30, 2016 and December 31, 2015 against the Company’s net deferred tax assets.

Significant Accounting Polici19

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2016
Significant Accounting Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s financial position or results of operations upon adoption. In February 2016, the FASB issued a new U.S. GAAP accounting standard which requires that all lessees recognize the assets and liabilities that arise from leases on the balance sheet and disclose qualitative and quantitative information about its leasing arrangements. The new standard will be effective for the Company on January 1, 2019. The Company is currently evaluating the potential impact that this standard may have on the Company’s financial statements. In March 2016, the FASB issued a new U.S. GAAP accounting standard which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new standard will be effective for the Company on January 1, 2017. The Company is currently evaluating the potential impact that this standard may have on the Company’s financial statements. In June 2016, the FASB issued a new U.S. GAAP accounting standard which changes the impairment model for most financial assets and certain other instruments. Under the new standard, entities holding financial assets and net investment in leases that are not accounted for at fair value through net income to be presented at the net amount expected to be collected. An allowance for credit losses will be a valuation account that will be deducted from the amortized cost basis of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. The new standard will be effective for the Company on January 1, 2020. The adoption of this standard is not expected to have a material impact on the Company’s financial statements.

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Net Loss Per Share
Schedule of potentially dilutive common shares that have not been included in the net loss per common share calculations because the effect would have been anti-dilutive	Six months ended June 30, 2016 2015 Stock options Restricted stock

Comprehensive Loss (Tables)

Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2016
Comprehensive Loss
Summary of changes in accumulated other comprehensive income (loss) by component	Unrealized Gain (Loss) on Marketable Securities, net of tax Foreign Currency Items Total (In thousands) Balance at March 31, 2016 $ $ $ Other comprehensive income before reclassifications — Amounts reclassified from other comprehensive income — — — Net current-period other comprehensive income — Balance at June 30, 2016 $ $ $ Balance at December 31, 2015 $ ) $ $ Other comprehensive income before reclassifications — Amounts reclassified from other comprehensive income — — — Net current-period other comprehensive income — Balance at June 30, 2016 $ $ $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Measurements.
Schedule of financial assets subject to fair value measurements	As of June 30, 2016 Level 1 Level 2 Level 3 (In thousands) Money market funds and cash equivalents $ $ — $ $ — Marketable securities — — $ $ — $ $ — As of December 31, 2015 Level 1 Level 2 Level 3 (In thousands) Money market funds and cash equivalents $ $ — $ $ — Marketable securities — — $ $ — $ $ —

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2016
Marketable Securities
Summary of marketable securities	Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (In thousands) June 30, 2016 Marketable securities U.S. government and municipal obligations Maturing in one year or less $ $ $ — $ Maturing after one year through three years — Total U.S. government and municipal obligations $ $ $ — $ Corporate debt securities Maturing in one year or less $ $ $ ) $ Maturing after one year through three years — Total corporate debt securities $ $ $ ) $ Total marketable securities $ $ $ ) $ December 31, 2015 Marketable securities U.S. government and municipal obligations Maturing in one year or less $ $ $ ) $ Maturing after one year through three years ) Total U.S. government and municipal obligations $ $ $ ) $ Corporate debt securities Maturing in one year or less $ $ $ ) $ Maturing after one year through three years ) Total corporate debt securities $ $ $ ) $ Total marketable securities $ $ $ ) $

Intangible Assets and Goodwill

Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2016
Intangible Assets and Goodwill
Schedule of intangible assets, net of accumulated amortization, and goodwill	June 30, 2016 December 31, 2015 Estimated Life Cost Accumulated Amortization Net Cost Accumulated Amortization Net (In thousands) Intangible Assets: IPR&D Indefinite $ $ — $ $ $ — $ Amgen Amendment 16 years ) ) Core Technology 11 years ) ) Total Intangible Assets $ $ ) $ $ $ ) $ Goodwill Indefinite $ $ — $ $ $ — $

Other Long-Term Liabilities (Ta

Other Long-Term Liabilities (Tables)	6 Months Ended
	Jun. 30, 2016
Other Long-Term Liabilities
Schedule of other long-term liabilities	June 30, 2016 December 31, 2015 (In thousands) Deferred Rent $ $ Net Deferred Tax Liability related to IPR&D Deferred Income from Sale of Tax Benefits Deferred Revenue Total Less Current Portion ) ) Long-Term Portion $ $

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2016
Stock-Based Compensation
Summary of stock option activity	Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term (In Years) Options Outstanding at December 31, 2015 $ Granted $ Exercised ) $ Canceled ) $ Options Outstanding at June 30, 2016 $ Options Vested and Expected to Vest at June 30, 2016 $ Options Exercisable at June 30, 2016 $ Shares Available for Grant under the 2008 Plan
Schedule of stock-based compensation expense	Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 (In thousands) Research and development $ $ $ $ General and administrative Total stock-based compensation expense $ $ $ $
Schedule of assumptions used for the fair values of employee stock options granted	Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Expected stock price volatility % % 70 - 77 % 67 - 69 % Expected option term 6.0 years 6.0 years 6.0 years 6.0 years Risk-free interest rate % % 1.5 – 1.6 % 1.8 - 2.2 % Expected dividend yield None None None None

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Basis of Presentation
Cash, cash equivalents and marketable securities	$ 220,100		$ 220,100
Net Loss	$ (31,952)	$ (32,359)	(66,625)	$ (62,533)
Net cash used in operations			$ (68,732)	$ (57,351)

Net Loss Per Share (Details)

Net Loss Per Share (Details) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Anti-dilutive securities
Potentially dilutive common shares that have not been included in the net loss per common share calculations because the effect would have been anti-dilutive	10,320,073	8,161,183
Stock options
Anti-dilutive securities
Potentially dilutive common shares that have not been included in the net loss per common share calculations because the effect would have been anti-dilutive	10,260,073	8,121,183
Restricted stock
Anti-dilutive securities
Potentially dilutive common shares that have not been included in the net loss per common share calculations because the effect would have been anti-dilutive	60,000	40,000

Comprehensive Loss (Details)

Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Changes in accumulated other comprehensive income (loss) by component
Balance		$ 290,105
Balance	$ 234,709	234,709
Unrealized Gain (Loss) on Marketable Securities
Changes in accumulated other comprehensive income (loss) by component
Balance	91	(289)
Other comprehensive income before reclassifications	36	416
Net current-period other comprehensive income	36	416
Balance	127	127
Foreign Currency Items
Changes in accumulated other comprehensive income (loss) by component
Balance	2,596	2,596
Balance	2,596	2,596
Accumulated Other Comprehensive Income
Changes in accumulated other comprehensive income (loss) by component
Balance	2,687	2,307
Other comprehensive income before reclassifications	36	416
Amounts reclassified from other comprehensive income	0	0
Net current-period other comprehensive income	36	416
Balance	$ 2,723	$ 2,723

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Fair value measurements
Assets transferred between the fair value measurement classifications	$ 0
Liabilities transferred between the fair value measurement classifications	0
Fair Value Measurements | Level 2
Fair value measurements
Money market funds and cash equivalents	25,116	$ 59,831
Marketable securities	187,646	217,781
Total financial assets at fair value	212,762	277,612
Fair Value Measurements | Fair value
Fair value measurements
Money market funds and cash equivalents	25,116	59,831
Marketable securities	187,646	217,781
Total financial assets at fair value	$ 212,762	$ 277,612

Marketable Securities (Details)

Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Amortized Cost
Amortized cost	$ 187,519	$ 218,070
Gross Unrealized Gains
Gross Unrealized Gains	137	31
Gross Unrealized Losses
Gross Unrealized Losses	(10)	(320)
Fair Value
Fair Value	187,646	217,781
Marketable securities considered to be other-than-temporarily impaired	0
Accrued interest included in marketable securities	800	1,500
U.S. government and municipal obligations
Amortized Cost
Maturing in one year or less	63,618	48,871
Maturing after one year through three years	5,382	15,940
Amortized cost	69,000	64,811
Gross Unrealized Gains
Maturing in one year or less	63	4
Maturing after one year through three years	21	24
Gross Unrealized Gains	84	28
Gross Unrealized Losses
Maturing in one year or less		(20)
Maturing after one year through three years		(57)
Gross Unrealized Losses		(77)
Fair Value
Maturing in one year or less	63,681	48,855
Maturing after one year through three years	5,403	15,907
Fair Value	69,084	64,762
Corporate debt securities
Amortized Cost
Maturing in one year or less	115,497	129,327
Maturing after one year through three years	3,022	23,932
Amortized cost	118,519	153,259
Gross Unrealized Gains
Maturing in one year or less	47	2
Maturing after one year through three years	6	1
Gross Unrealized Gains	53	3
Gross Unrealized Losses
Maturing in one year or less	(10)	(141)
Maturing after one year through three years		(102)
Gross Unrealized Losses	(10)	(243)
Fair Value
Maturing in one year or less	115,534	129,188
Maturing after one year through three years	3,028	23,831
Fair Value	$ 118,562	$ 153,019

Intangible Assets and Goodwil32

Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Intangible Assets and Goodwill
Goodwill	$ 8,965	$ 8,965
Finite-lived intangible asset
Accumulated Amortization	(7,309)	(6,802)
Total Intangible Assets
Cost of total intangible assets	27,596	27,596
Intangible Assets, Net (Excluding Goodwill)	$ 20,287	20,794
Amgen Amendment
Finite-lived intangible asset
Estimated Life	16 years
Cost	$ 14,500	14,500
Accumulated Amortization	(6,053)	(5,605)
Net	$ 8,447	8,895
Core Technology
Finite-lived intangible asset
Estimated Life	11 years
Cost	$ 1,296	1,296
Accumulated Amortization	(1,256)	(1,197)
Net	40	99
IPR&D
Indefinite-lived intangible assets:
Indefinite-lived intangible assets	$ 11,800	$ 11,800

Other Assets (Details)

Other Assets (Details) - USD ($) $ in Thousands	1 Months Ended
	Apr. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Other assets		$ 1,879	$ 1,428
Prepaid and other current assets		7,538	$ 4,077
Research and collaboration agreement
Payment for research and collaboration agreement and investment in company	$ 3,500
Other assets		1,800
Prepaid and other current assets		$ 1,700

Other Long-Term Liabilities (De

Other Long-Term Liabilities (Details) - USD ($) $ in Thousands	1 Months Ended					6 Months Ended
	Nov. 30, 2015	Dec. 31, 2014	Jan. 31, 2014	Jan. 31, 2013	Jan. 31, 2012	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Other Long-Term Liabilities
Deferred Rent						$ 401		$ 409
Net Deferred Tax Liability related to IPR&D						4,661		4,661
Deferred Income from Sale of Tax Benefits						11,620		12,219
Deferred Revenue						4,172		4,368
Total						20,854		21,657
Less Current Portion						(4,360)		(4,418)
Long-Term Portion						$ 16,494		$ 17,239
Amount at which New Jersey tax benefit agreed to be sold	$ 9,800	$ 1,900	$ 1,100	$ 800	$ 800
Amount of sale of New Jersey tax benefit	$ 9,200	$ 1,800	$ 1,000	$ 800	$ 700
Period for which base of operations must be maintained						5 years
Other income related to sale of tax benefits						$ 600	$ 600

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ in Millions	1 Months Ended
	Jul. 31, 2016	Jun. 30, 2016	May 31, 2016	Mar. 31, 2015
Cantor Fitzgerald & Co. Agreement
Stockholders' Equity
Common stock issued (in shares)	1,109,536	593,111
Net proceeds from sale of stock	$ 5	$ 2.7
Maximum aggregate offering price of common stock			$ 60
Fixed commission rate			3.00%
Aggregate gross offering price available	$ 52
Underwritten Public Offering
Stockholders' Equity
Common stock issued (in shares)				8,337,500
Net proceeds from sale of stock				$ 188.8

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Plans (Details) - Stock options - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Shares
Options Outstanding at beginning of the period (in shares)	8,110,239
Granted (in shares)	2,291,250
Exercised (in shares)	(37,942)
Canceled (in shares)	(103,474)
Options Outstanding at the end of the period (in shares)	10,260,073	8,110,239
Options Vested and Expected to Vest at the end of the period (in shares)	10,175,654
Options Exercisable at the end of the period (in shares)	5,558,678
Shares Available for Grant under the 2008 Plan (in shares)	3,542,107
Weighted Average Exercise Price Per Share
Options Outstanding at beginning of the period (in dollars per share)	$ 13.13
Granted (in dollars per share)	4.86
Exercised (in dollars per share)	2.93
Canceled (in dollars per share)	15.92
Options Outstanding at the end of the period (in dollars per share)	11.29	$ 13.13
Options Vested and Expected to Vest at the end of the period (in dollars per share)	11.30
Options Exercisable at the end of the period (in dollars per share)	$ 10.20
Weighted Average Remaining Contractual Term
Options Outstanding at the beginning of the period	7 years	6 years 8 months 12 days
Options Outstanding at the end of the period	7 years	6 years 8 months 12 days
Options Vested and Expected to Vest at the end of the period	7 years
Options Exercisable at the end of the period	5 years 3 months 18 days
Additional information
Weighted average grant-date fair value (in dollars per share)	$ 3.23

Stock-Based Compensation - Valu

Stock-Based Compensation - Valuation and Expenses Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Valuation and Expenses Information
Total stock-based compensation expense (in dollars)	$ 3,973	$ 2,527	$ 7,913	$ 4,808
Assumptions used for fair values of employee and director stock options granted
Risk-free interest rate, minimum (as a percent)			1.50%	1.80%
Risk-free interest rate, maximum (as a percent)			1.60%	2.20%
Stock options
Assumptions used for fair values of employee and director stock options granted
Expected stock price volatility (as a percent)	77.00%	67.00%
Expected stock price volatility, minimum (as a percent)			70.00%	67.00%
Expected stock price volatility, maximum (as a percent)			77.00%	69.00%
Expected option term	6 years	6 years	6 years	6 years
Risk-free interest rate (as a percent)	1.50%	2.20%
Expected dividend yield (as a percent)	0.00%	0.00%	0.00%	0.00%
Research and development
Valuation and Expenses Information
Total stock-based compensation expense (in dollars)	$ 2,008	$ 1,244	$ 3,824	$ 2,512
General and administrative
Valuation and Expenses Information
Total stock-based compensation expense (in dollars)	$ 1,965	$ 1,283	$ 4,089	$ 2,296

Revenue (Details)

Revenue (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	May 31, 2014	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
REVENUE
Deferred Revenue		$ 4,172		$ 4,172		$ 4,368
Product development and licensing agreements revenue		604	$ 334	1,057	$ 676
Contracts and grants revenue		785	1,844	1,635	1,988
BMS | PD-1 Immune Checkpoint Inhibitor
REVENUE
Term of the agreement	5 years
Deferred Revenue	$ 5,000
Reimbursement of external costs incurred by the company (as a percent)	50.00%
Product development and licensing agreements revenue		600	300	1,000	600
Rockefeller
REVENUE
Contracts and grants revenue		$ 400	$ 1,500	$ 800	$ 1,600

Income Taxes (Details)

Income Taxes (Details)	Jun. 30, 2016item
Income Taxes
Number of states in which the entity primarily operates or has operated and has income tax nexus	3