Heron Therapeutics (HRTX) 10-Q 8 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Nov. 01, 2022
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Trading Symbol	HRTX
Entity Registrant Name	HERON THERAPEUTICS, INC. /DE/
Entity Central Index Key	0000818033
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		118,888,122
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity File Number	001-33221
Entity Tax Identification Number	94-2875566
Entity Address, Address Line One	4242 Campus Point Court
Entity Address, Address Line Two	Suite 200
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92121
City Area Code	858
Local Phone Number	251-4400
Entity Interactive Data Current	Yes
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, par value $0.01 per share
Security Exchange Name	NASDAQ

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 50,438	$ 90,541
Short-term investments	71,308	67,039
Accounts receivable, net	42,188	35,499
Inventory	52,239	48,382
Prepaid expenses and other current assets	7,631	12,962
Total current assets	223,804	254,423
Property and equipment, net	22,619	23,734
Right-of-use lease assets	8,204	9,829
Other assets	17,325	17,720
Total assets	271,952	305,706
Current liabilities:
Accounts payable	6,547	3,803
Accrued clinical and manufacturing liabilities	37,298	23,716
Accrued payroll and employee liabilities	14,708	15,263
Other accrued liabilities	32,703	25,859
Current lease liabilities	2,620	2,417
Total current liabilities	93,876	71,058
Non-current lease liabilities	6,151	7,996
Non-current convertible notes payable, net	149,234	149,082
Other non-current liabilities	241
Total liabilities	249,502	228,136
Stockholders’ equity:
Common stock	1,188	1,020
Additional paid-in capital	1,796,905	1,689,987
Accumulated other comprehensive loss	(57)	(6)
Accumulated deficit	(1,775,586)	(1,613,431)
Total stockholders’ equity	22,450	77,570
Total liabilities and stockholders’ equity	$ 271,952	$ 305,706

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Comprehensive Loss (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Revenues:
Net product sales	$ 26,557	$ 23,230	$ 77,644	$ 65,691
Operating expenses:
Cost of product sales	14,717	11,351	42,247	35,080
Research and development	25,545	28,595	96,449	101,944
General and administrative	9,799	9,786	28,513	30,266
Sales and marketing	18,378	25,206	64,738	62,692
Total operating expenses	68,439	74,938	231,947	229,982
Loss from operations	(41,882)	(51,708)	(154,303)	(164,291)
Other expense, net	(26)	(700)	(7,852)	(1,746)
Net loss	(41,908)	(52,408)	(162,155)	(166,037)
Other comprehensive loss:
Unrealized losses on short-term investments	(46)	(45)	(51)	(261)
Comprehensive loss	$ (41,954)	$ (52,453)	$ (162,206)	$ (166,298)
Basic net loss per share	$ (0.38)	$ (0.51)	$ (1.54)	$ (1.71)
Shares used in computing basic net loss per share	111,735	101,906	105,456	97,290
Diluted net loss per share	$ (0.38)	$ (0.51)	$ (1.54)	$ (1.71)
Shares used in computing diluted net loss per share	111,735	101,906	105,456	97,290

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Private Placement	Common Stock	Common Stock Private Placement	Additional Paid-In Capital	Additional Paid-In Capital Private Placement	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Balance at Dec. 31, 2020	$ 236,492		$ 913		$ 1,628,070		$ 257	$ (1,392,748)
Balance (in shares) at Dec. 31, 2020			91,310
Conversion benefit included in Convertible Notes issued	114				114
Issuance of common stock under equity incentive plan	883		$ 1		882
Issuance of common stock under equity incentive plan (in shares)			97
Stock-based compensation expense	11,486				11,486
Net loss	(52,614)							(52,614)
Net unrealized loss on short-term investments	(136)						(136)
Comprehensive loss	(52,750)
Balance at Mar. 31, 2021	196,225		$ 914		1,640,552		121	(1,445,362)
Balance (in shares) at Mar. 31, 2021			91,407
Balance at Dec. 31, 2020	236,492		$ 913		1,628,070		257	(1,392,748)
Balance (in shares) at Dec. 31, 2020			91,310
Net loss	(166,037)
Net unrealized loss on short-term investments	(261)
Comprehensive loss	(166,298)
Balance at Sep. 30, 2021	118,843		$ 1,019		1,676,613		(4)	(1,558,785)
Balance (in shares) at Sep. 30, 2021			101,912
Balance at Mar. 31, 2021	196,225		$ 914		1,640,552		121	(1,445,362)
Balance (in shares) at Mar. 31, 2021			91,407
Conversion benefit included in Convertible Notes issued	116				116
Issuance of common stock under equity incentive plan	4,218		$ 4		4,214
Issuance of common stock under equity incentive plan (in shares)			313
Issuance of common stock under the employee stock purchase plan	1,529		$ 1		1,528
Issuance of common stock on under the employee stock purchase plan (in shares)			110
Issuance of common stock on exercise of warrants			$ 2		(2)
Issuance of common stock on exercise of warrants (in shares)			195
Issuance of common stock on conversion of notes	7,878		$ 98		7,780
Issuance of common stock on conversion of notes (in shares)			9,849
Stock-based compensation expense	11,241				11,241
Net loss	(61,015)							(61,015)
Net unrealized loss on short-term investments	(80)						(80)
Comprehensive loss	(61,095)
Balance at Jun. 30, 2021	160,112		$ 1,019		1,665,429		41	(1,506,377)
Balance (in shares) at Jun. 30, 2021			101,874
Issuance of common stock under equity incentive plan	(52)				(52)
Issuance of common stock under equity incentive plan (in shares)			38
Stock-based compensation expense	11,236				11,236
Net loss	(52,408)							(52,408)
Net unrealized loss on short-term investments	(45)						(45)
Comprehensive loss	(52,453)
Balance at Sep. 30, 2021	118,843		$ 1,019		1,676,613		(4)	(1,558,785)
Balance (in shares) at Sep. 30, 2021			101,912
Balance at Dec. 31, 2021	77,570		$ 1,020		1,689,987		(6)	(1,613,431)
Balance (in shares) at Dec. 31, 2021			102,005
Issuance of common stock under equity incentive plan	(637)		$ 1		(638)
Issuance of common stock under equity incentive plan (in shares)			138
Stock-based compensation expense	10,915				10,915
Net loss	(63,888)							(63,888)
Net unrealized loss on short-term investments	(2)						(2)
Comprehensive loss	(63,890)
Balance at Mar. 31, 2022	23,958		$ 1,021		1,700,264		(8)	(1,677,319)
Balance (in shares) at Mar. 31, 2022			102,143
Balance at Dec. 31, 2021	77,570		$ 1,020		1,689,987		(6)	(1,613,431)
Balance (in shares) at Dec. 31, 2021			102,005
Net loss	(162,155)
Net unrealized loss on short-term investments	(51)
Comprehensive loss	(162,206)
Balance at Sep. 30, 2022	22,450		$ 1,188		1,796,905		(57)	(1,775,586)
Balance (in shares) at Sep. 30, 2022			118,774
Balance at Mar. 31, 2022	23,958		$ 1,021		1,700,264		(8)	(1,677,319)
Balance (in shares) at Mar. 31, 2022			102,143
Issuance of common stock under equity incentive plan	(457)		$ 2		(459)
Issuance of common stock under equity incentive plan (in shares)			154
Issuance of common stock under the employee stock purchase plan	772		$ 2		770
Issuance of common stock on under the employee stock purchase plan (in shares)			201
Stock-based compensation expense	10,353				10,353
Net loss	(56,359)							(56,359)
Net unrealized loss on short-term investments	(3)						(3)
Comprehensive loss	(56,362)
Balance at Jun. 30, 2022	(21,736)		$ 1,025		1,710,928		(11)	(1,733,678)
Balance (in shares) at Jun. 30, 2022			102,498
Issuance of common stock in a private placement, net		$ 75,163		$ 161		$ 75,002
Issuance of common stock in a private placement, net (in shares)				16,129
Issuance of common stock under equity incentive plan	(221)		$ 2		(223)
Issuance of common stock under equity incentive plan (in shares)			147
Stock-based compensation expense	11,198				11,198
Net loss	(41,908)							(41,908)
Net unrealized loss on short-term investments	(46)						(46)
Comprehensive loss	(41,954)
Balance at Sep. 30, 2022	$ 22,450		$ 1,188		$ 1,796,905		$ (57)	$ (1,775,586)
Balance (in shares) at Sep. 30, 2022			118,774

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Operating activities:
Net loss	$ (162,155)	$ (166,037)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	32,466	33,963
Depreciation and amortization	2,098	2,227
Amortization of debt discount		785
Amortization of debt issuance costs	152	69
(Accretion of discount) amortization of premium on short-term investments	(162)	223
Impairment of property and equipment	130	354
Loss on disposal of property and equipment	74
Change in operating assets and liabilities:
Accounts receivable	(6,689)	(1,236)
Inventory	(3,857)	403
Prepaid expenses and other assets	5,726	(5,694)
Accounts payable	2,744	5,360
Accrued clinical and manufacturing liabilities	13,582	(32,811)
Accrued payroll and employee liabilities	(555)	2,409
Other accrued and other non-current liabilities	7,068	1,889
Net cash used in operating activities	(109,378)	(158,096)
Investing activities:
Purchases of short-term investments	(127,115)	(91,321)
Maturities and sales of short-term investments	122,957	150,940
Purchases of property and equipment	(1,411)	(2,632)
Proceeds from the sale of property and equipment	224
Net cash (used in) provided by investing activities	(5,345)	56,987
Financing activities:
Net proceeds from convertible note financing		148,963
Net proceeds from private placement	75,163
Net proceeds from issuance of common stock under equity incentive plan	(1,315)	5,049
Proceeds from purchases under the employee stock purchase plan	772	1,529
Net cash provided by financing activities	74,620	155,541
Net (decrease) increase in cash and cash equivalents	(40,103)	54,432
Cash and cash equivalents at beginning of year	90,541	105,138
Cash and cash equivalents at end of period	50,438	$ 159,570
Supplemental disclosure of cash flow information:
Interest paid	$ 1,125

Business

Business	9 Months Ended
	Sep. 30, 2022
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Business	1. Business We are a commercial-stage biotechnology company focused on improving the lives of patients by developing and commercializing therapeutic innovations that improve medical care. Our advanced science, patented technologies, and innovative approach to drug discovery and development have allowed us to create and commercialize a portfolio of products that aim to advance the standard of care for acute care and oncology patients. CINVANTI (aprepitant) injectable emulsion (“CINVANTI”) and SUSTOL (granisetron) extended-release injection (“SUSTOL”) are both approved in the United States (“U.S.”) for the prevention of chemotherapy-induced nausea and vomiting. ZYNRELEF (bupivacaine and meloxicam) extended-release solution (“ZYNRELEF”) is approved in the U.S., 31 European countries and Canada for the management of postoperative pain. In September 2022, APONVIE (aprepitant) injectable emulsion (“APONVIE”) was approved in the U.S. for the prevention of postoperative nausea and vomiting. We expect APONVIE to be commercially available in the U.S. with initial stocking of the distribution channel in the first quarter of 2023. We are also developing HTX-034, an investigational agent, our next-generation product candidate for the management of postoperative pain. As of September 30, 2022, we had cash, cash equivalents and short-term investments of $121.7 million. Based on our current operating plan and projections, management believes that the Company’s cash, cash equivalents and short-term investments will be sufficient to meet the Company’s anticipated cash requirements for at least one year from the date this Quarterly Report on Form 10-Q is filed with the U.S. Securities and Exchange Commission (“SEC”).

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	2. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for other quarters or the year ending December 31, 2022. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited financial statements as of that date, but does not include all of the information and disclosures required by GAAP. For more complete financial information, these condensed consolidated financial statements and the notes thereto should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 28, 2022.

Accounting Policies

Accounting Policies	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Accounting Policies	3. Accounting Policies Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Heron Therapeutics, Inc. and its wholly-owned subsidiary, Heron Therapeutics B.V., which was organized in the Netherlands in March 2015. Heron Therapeutics B.V. has no operations and no material assets or liabilities, and there have been no significant transactions related to Heron Therapeutics B.V. since its inception. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Our significant accounting policies that involve significant judgment and estimates include revenue recognition, investments, inventory and the related reserves, accrued clinical liabilities, income taxes and stock-based compensation. Actual results could differ materially from those estimates. Cash, Cash Equivalents and Short-term Investments Cash and cash equivalents consist of cash and highly liquid investments with contractual maturities of three months or less from the original purchase date. Short-term investments consist of securities with contractual maturities of greater than three months from the original purchase date. Securities with contractual maturities greater than one year are classified as short-term investments on the condensed consolidated balance sheets, as we have the ability, if necessary, to liquidate these securities to meet our liquidity needs in the next 12 months. We have classified our short-term investments as available-for-sale securities in the accompanying condensed consolidated financial statements. Available-for-sale securities are stated at fair market value, with net changes in unrealized gains and losses reported in other comprehensive loss and realized gains and losses included in other expense, net. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in interest income. Concentration of Credit Risk Cash, cash equivalents and short-term investments are financial instruments that potentially subject us to concentrations of credit risk. We deposit our cash in financial institutions. At times, such deposits may be in excess of insured limits. We may also invest our excess cash in money market funds, U.S. government and agencies, corporate debt securities and commercial paper. We have established guidelines relative to our diversification of our cash investments and their maturities in an effort to maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. CINVANTI, SUSTOL and ZYNRELEF (collectively, our “Products”) are distributed in the U.S. through a limited number of specialty distributors and full line wholesalers (collectively, “Customers”) that resell to healthcare providers and hospitals, the end users of our Products. The following table includes the percentage of net product sales and accounts receivable balances for our three major Customers, each of which comprised 10% or more of our net product sales: Net Product Sales Accounts Receivable Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 As of September 30, 2022 Customer A 44.8 % 43.9 % 51.6 % Customer B 36.3 % 36.2 % 34.1 % Customer C 17.7 % 18.7 % 13.5 % Total 98.8 % 98.8 % 99.2 % Accounts Receivable, Net Accounts receivable are recorded at the invoice amount, net of an allowance for credit losses. The allowance for credit losses reflects accounts receivable balances that are believed to be uncollectible. In estimating the allowance for credit losses, we consider: (1) our historical experience with collections and write-offs; (2) the credit quality of our Customers and any recent or anticipated changes thereto; (3) the outstanding balances and past due amounts from our Customers; and (4) reasonable and supportable forecast of economic conditions expected to exist throughout the contractual term of the receivable. We offered extended payment terms to our Customers in connection with our product launch of ZYNRELEF in July 2021. In addition, we offered extended payment terms to our Customers in January 2021 when we reinstated the promotion and contracting of SUSTOL. These extended payment terms were offered in anticipation of the timing of reimbursement by government and commercial payers. Effective October 2021, we shortened payment terms to our ZYNRELEF and SUSTOL Customers. Inventory Inventory is stated at the lower of cost or estimated net realizable value on a first-in, first-out, or FIFO, basis. We periodically analyze our inventory levels and write down inventory that has become obsolete, inventory that has a cost basis in excess of its estimated realizable value and inventory quantities that are in excess of expected sales requirements as cost of product sales. The determination of whether inventory costs will be realizable requires estimates by management. If actual market conditions are less favorable than projected by management, additional write-downs of inventory may be required, which would be recorded as cost of product sales. Leases We determine if an arrangement is a lease or contains lease components at inception. Operating leases with an initial term greater than 12 months, are recorded as lease liabilities with corresponding right-of-use (“ROU”) lease assets on the condensed consolidated balance sheets. ROU lease assets represent our right to use the underlying assets over the lease term, and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The ROU lease assets equal the lease liabilities, less unamortized lease incentives, unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease. The lease term includes any option to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with both lease and non-lease components, which are generally accounted for separately. Revenue Recognition Revenue is recognized in accordance with the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers Product Sales Our Products are distributed in the U.S. through a limited number of Customers that resell to healthcare providers and hospitals, the end users of our Products. Revenue is recognized in an amount that reflects the consideration we expect to receive in exchange for our Products. To determine revenue recognition for contracts with customers within the scope of Topic 606, we perform the following 5 steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations of the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) we satisfy the performance obligations. We recognize revenue from product sales when there is a transfer of control of the product to our Customers. We typically determine transfer of control based on when the product is delivered, and title passes to our Customers. Product Sales Allowances We recognize product sales allowances as a reduction of product sales in the same period the related revenue is recognized. Product sales allowances are based on amounts owed or to be claimed on the related sales. Such variable consideration includes estimates that take into consideration the terms of our agreements with Customers, historical product returns, rebates or discounts taken, the shelf life of the product and specific known market events, such as competitive pricing and new product introductions. If actual future results vary from our estimates, we may need to adjust these estimates, which could have an effect on product sales and earnings in the period of adjustment. Our product sales allowances include: • Product Returns—We allow our Customers to return product for credit for up to 12 months after its product expiration date. As such, there may be a significant period of time between the time the product is shipped and the time the credit is issued on returned product. • Distributor Fees—We offer contractually determined discounts to our Customers. These discounts are paid no later than two months after the quarter in which product was shipped. • Group Purchasing Organization (“GPO”) Discounts and Rebates—We offer cash discounts to GPO members. These discounts are taken when the GPO members purchase product from our Customers, who then charge back to us the discount amount. Additionally, we offer volume and contract-tier rebates to GPO members. Rebates are based on actual purchase levels during the quarterly rebate purchase period. • GPO Administrative Fees—We pay administrative fees to GPOs for services and access to data. These fees are based on contracted terms and are paid after the quarter in which the product was purchased by the GPOs’ members. • Medicaid Rebates—We participate in Medicaid rebate programs, which provide assistance to certain low-income patients based on each individual state’s guidelines regarding eligibility and services. Under the Medicaid rebate programs, we pay a rebate to each participating state, generally within three months after the quarter in which the product was sold. We believe our estimated allowance for product returns requires a high degree of judgment and is subject to change based on our experience and certain quantitative and qualitative factors. We believe our estimated allowances for distributor fees, GPO discounts, rebates and administrative fees and Medicaid rebates do not require a high degree of judgment because the amounts are settled within a relatively short period of time. Our product sales allowances and related accruals are evaluated each reporting period and adjusted when trends or significant events indicate that a change in estimate is appropriate. Changes in product sales allowance estimates could materially affect our results of operations and financial position The following table provides disaggregated net product sales (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 CINVANTI net product sales $ 21,169 $ 18,036 $ 64,173 $ 56,186 SUSTOL net product sales 2,671 3,114 7,179 7,425 ZYNRELEF net product sales 2,717 2,080 6,292 2,080 Total net product sales $ 26,557 $ 23,230 $ 77,644 $ 65,691 The following table provides a summary of activity with respect to our product returns, distributor fees and discounts, rebates and administrative fees, which are included in other accrued liabilities on the condensed consolidated balance sheets (in thousands): Product Returns Distributor Fees Discounts, Rebates and Administrative Fees Total Balance at December 31, 2021 $ 2,579 $ 3,466 $ 16,515 $ 22,560 Provision 1,213 15,301 115,324 131,838 Payments/credits (699 ) (15,193 ) (110,682 ) (126,574 ) Balance at September 30, 2022 $ 3,093 $ 3,574 $ 21,157 $ 27,824 Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net changes in unrealized gains and losses on available-for-sale securities are included in other comprehensive income (loss) and represent the difference between our net loss and comprehensive loss for all periods presented. Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, warrants and shares of common stock underlying convertible notes are considered to be common stock equivalents and are included in the calculation of diluted net loss per share only when their effect is dilutive. Because we have incurred a net loss for all periods presented in the unaudited condensed consolidated statements of operations and comprehensive loss, the following common stock equivalents were not included in the computation of net loss per share because their effect would be anti-dilutive (in thousands): September 30, 2022 2021 Stock options outstanding 20,500 18,257 Restricted stock units outstanding 2,817 641 Warrants outstanding 8,548 25 Shares of common stock underlying convertible notes outstanding 9,819 9,819 Recent Accounting Pronouncements Adopted in 2022 In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . .

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	4. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The FASB ASC Topic 820, Fair Value Measurements and Disclosures • • • We measure cash, cash equivalents and short-term investments at fair value on a recurring basis. The fair values of such assets were as follows (in thousands): Fair Value Measurements at Reporting Date Using Balance at September 30, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and money market funds $ 41,468 $ 41,468 $ — $ — U.S. treasury bills and government agency obligations 34,699 34,699 — — U.S. commercial paper 14,395 — 14,395 — Foreign commercial paper 31,184 — 31,184 — Total $ 121,746 $ 76,167 $ 45,579 $ — Fair Value Measurements at Reporting Date Using Balance at December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and money market funds $ 86,043 $ 86,043 $ — $ — U.S. corporate debt securities 15,006 — 15,006 — Foreign corporate debt securities 10,548 — 10,548 — U.S. commercial paper 10,496 — 10,496 — Foreign commercial paper 35,487 — 35,487 — Total $ 157,580 $ 86,043 $ 71,537 $ — We have not transferred any investment securities between the three levels of the fair value hierarchy. As of September 30, 2022, cash equivalents included $9.0 million of available-for-sale securities with contractual maturities of three months or less and short-term investments included $71.3 million of available-for-sale securities with contractual maturities of three months to one year. As of December 31, 2021, cash equivalents included $4.5 million of available-for-sale securities with contractual maturities of three months or less and short-term investments included $67.0 million of available-for-sale securities with contractual maturities of three months to one year. The money market funds as of September 30, 2022 and December 31, 2021 are included in cash and cash equivalents on the condensed consolidated balance sheets. A company may elect to use fair value to measure accounts and loans receivable, available-for-sale and held-to-maturity securities, equity method investments, accounts payable, guarantees and issued debt. Other eligible items include firm commitments for financial instruments that otherwise would not be recognized at inception and non-cash warranty obligations where a warrantor is permitted to pay a third party to provide the warranty goods or services. If the use of fair value is elected, any upfront costs and fees related to the item such as debt issuance costs must be recognized in earnings and cannot be deferred. The fair value election is irrevocable and generally made on an instrument-by-instrument basis, even if a company has similar instruments that it elects not to measure based on fair value. Unrealized gains and losses on existing items for which fair value has been elected are reported as a cumulative adjustment to beginning retained earnings and any changes in fair value are recognized in earnings. We have elected to not apply the fair value option to our financial assets and liabilities. Financial instruments, including cash, cash equivalents, receivables, inventory, prepaid expenses, other current assets, accounts payable and accrued expenses are carried at cost, which is considered to be representative of their respective fair values because of the short-term maturity of these instruments. Short-term available-for-sale investments are carried at fair value. Our convertible notes outstanding at September 30, 2022 and December 31, 2021 do not have a readily available ascertainable market value, however, the carrying value is considered to approximate its fair value.

Short-term Investments

Short-term Investments	9 Months Ended
	Sep. 30, 2022
Short Term Investments [Abstract]
Short-term Investments	5. Short-term Investments The following is a summary of our short-term investments (in thousands): September 30, 2022 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. treasury bills and government agency obligations $ 34,756 $ — $ (57 ) $ 34,699 U.S. commercial paper $ 8,416 $ — $ — $ 8,416 Foreign commercial paper 28,193 — — 28,193 Total $ 71,365 $ — $ (57 ) $ 71,308 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. corporate debt securities $ 15,009 $ — $ (3 ) $ 15,006 Foreign corporate debt securities 10,551 — (3 ) 10,548 U.S. commercial paper 5,998 — — 5,998 Foreign commercial paper 35,487 — — 35,487 Total $ 67,045 $ — $ (6 ) $ 67,039 The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. We regularly monitor and evaluate the realizable value of our marketable securities. We did not recognize any impairment losses during the three and nine months ended September 30, 2022 and 2021. Unrealized gains and losses associated with our investments are reported in accumulated other comprehensive loss. Realized gains and losses associated with our investments, if any, are reported in the statements of operations and comprehensive loss. We did not recognize any realized gains or losses during the three and nine months ended September 30, 2022 and 2021.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Inventory	6. Inventory Inventory consists of the following (in thousands): September 30, 2022 December 31, 2021 Raw materials $ 18,586 $ 21,193 Work in process 11,625 20,935 Finished goods 22,028 6,254 Total inventory $ 52,239 $ 48,382 As of September 30, 2022, total inventory included $36.2 million related to ZYNRELEF, $13.4 million related to CINVANTI, and $2.6 million related to SUSTOL. As of December 31, 2021, total inventory included $23.6 million related to ZYNRELEF, $23.1 million related to CINVANTI, and $1.7 million related to SUSTOL. For the three and nine months ended September 30, 2022, cost of product sales included charges of $2.0 million and $4.5 million, respectively, resulting primarily from the write-off of short-dated ZYNRELEF inventory. For the three and nine months ended September 30, 2021, cost of product sales included charges of $0.4 million and $3.5 million, respectively, resulting from the write-off of short-dated SUSTOL inventory.

Leases

Leases	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Leases	7. Leases As of September 30, 2022, we had an operating lease for 52,148 square feet of laboratory and office space in San Diego, California, with a lease term that expires on December 31, 2025. In October 2021, we entered into a sublease agreement to sublet 23,873 square feet of laboratory and office space. The space was delivered to the subtenant in March 2022. As a result of the sublease agreement, our one 5-year option to renew this lease on expiration applies only with respect to our remaining 28,275 square feet of laboratory and office space. During the three and nine months ended September 30, 2022, we recognized $0.7 million and $2.1 million, respectively, of operating lease expense and we paid $0.7 million and $2.1 million, respectively, for our operating lease. Annual future minimum lease payments as of September 30, 2022 are as follows (in thousands): 2022 $ 730 2023 2,970 2024 3,030 2025 3,097 Total future minimum lease payments $ 9,827 Less: discount (1,056 ) Total lease liabilities $ 8,771

Reorganizations

Reorganizations	9 Months Ended
	Sep. 30, 2022
Reorganizations [Abstract]
Reorganizations	8. Reorganizations In June 2022, we implemented a restructuring plan under which we will provide employees one-time severance payments upon termination, continuation of benefits for a specific period of time, outplacement services and certain stock award modifications. The total amount expected to be incurred for these activities is $5.4 million, $5.0 million of which is primarily for severance and $0.4 million of which is for non-cash, stock-based compensation expense related to stock award modifications. During the three months ended September 30, 2022, we recognized $1.5 million of the total expense, $1.3 million of which was included in research and development expense, $0.1 million of which was included in sales and marketing expense, and $0.1 million of which was included in general and administrative expense. For the nine months ended September 30, 2022, we recognized $4.8 million of the total expense, $3.7 million of which was included in research and development expense, $0.9 million of which was included in sales and marketing expense, and $0.2 million of which was included in general and administrative expense. We expect to recognize the remaining expense during the fourth quarter of 2022. We anticipate that the cash payments due to terminated employees will be substantially completed in the first quarter of 2023. As of September 30, 2022, we have paid $3.1 million of the total cash severance charges. In October 2021, we implemented a restructuring plan under which we provided employees one-time severance payments upon termination, continued benefits for a specific period of time, outplacement services and certain stock option modifications. The total expense for these activities was $1.4 million, $1.3 million of which was primarily for severance and $0.1 million of which was for non-cash, stock-based compensation expense related to stock option modifications. The total expense was recognized in the fourth quarter of 2021, with $1.2 million included in research and development expense and $0.2 million included in sales and marketing expense. As of September 30, 2022, we have paid $1.3 million of the total cash severance charges. We have accounted for these expenses in accordance with the FASB ASC Topic 420, Exit or Disposal Cost Obligations

Convertible Notes

Convertible Notes	9 Months Ended
	Sep. 30, 2022
Debt Disclosure [Abstract]
Convertible Notes	9. Convertible Notes Senior Unsecured Convertible Notes In May 2021, we entered into a note purchase agreement with funds affiliated with Baker Bros. Advisors LP for a private placement of $150.0 million in Senior Unsecured Convertible Notes (“Notes”). We received a total of $149.0 million, net of issuance costs, from the issuance of these Notes. The Notes were issued at par. The Notes bear interest at a rate of 1.5% per annum, payable in cash semi-annually in arrears on June 15 th th The Notes will be subject to redemption at our option, between May 24, 2024 and May 24, 2025, but only if the last reported sale price per share of our common stock exceeds 250% of the conversion price for a specified period of time, or on or after May 24, 2025 if the last reported sale price per share of our common stock exceeds 200% of the conversion price for a specified period of time. The redemption price will be equal to the principal amount of the Notes to be redeemed, plus accrued and unpaid interest Upon conversion, we will settle the Notes in shares of our common stock. The initial conversion rate for the Notes is 65.4620 shares per $1,000 principal amount of the Notes (equivalent to an initial conversion price of $15.276 per share of common stock). If a holder of the Notes converts upon a make-whole fundamental change or company redemption, the holder may be eligible to receive a make-whole premium through an increase to the conversion rate. In May 2021, we filed a registration statement with the SEC to register for resale 12.4 million shares of our common stock underlying the Notes, including the maximum number of shares of common stock issuable under the make-whole premium. The Notes were accounted for in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options Contracts in Entity’s Own Equity We incurred issuance costs related to the Notes of $1.0 million, which we recorded as debt issuance costs and are included as a reduction to the Notes on the condensed consolidated balance sheets. The debt issuance costs are being amortized to interest expense using the effective interest rate method over the term of the Notes, resulting in an effective interest rate of 1.6%. For the three months ended September 30, 2022, interest expense related to the Notes was $614,000, which included $563,000 related to the stated interest rate and $51,000 related to the amortization of debt issuance costs. For the nine months ended September 30, 2022, interest expense related to the Notes was $1.8 million, which included $1.7 million related to the stated interest rate and $0.1 million related to the amortization of debt issuance costs. For the three months ended September 30, 2021, interest expense related to the Notes was $612,000, which included $562,000 related to the stated interest rate and $50,000 related to the amortization of debt issuance costs. For the nine months ended September 30, 2021, interest expense related to the Notes was $844,000, which included $775,000 related to the state interest rate and $69,000 related to the amortization of debt issuance costs. As of September 30, 2022, the carrying value of the Notes was $149.2 million, which is comprised of the $150.0 million principal amount of the Notes outstanding, less debt issuance costs of $0.8 million. Senior Secured Convertible Notes In April 2011, we entered into a securities purchase agreement for a private placement of up to $4.5 million in Senior Secured Convertible Notes (“Convertible Notes”) with certain investors, including Tang Capital Partners, LP. We received a total of $4.3 million, net of issuance costs, from the issuance of these Convertible Notes. The Convertible Notes bore interest at 6% per annum, payable quarterly in cash or in additional principal amount of Convertible Notes, at the election of the purchasers. The Convertible Notes matured on May 2, 2021. The Convertible Notes contained an embedded conversion feature that was in-the-money on the issuance dates. Based on an effective fixed conversion rate of 1,250 shares for every $1,000 of principal and accrued interest due under the Convertible Notes, the total conversion benefit at issuance exceeded the loan proceeds. Therefore, a debt discount was recorded in an amount equal to the face value of the Convertible Notes on the issuance dates, and we amortized the resultant debt discount over the respective 10-year term of the Convertible Notes which ended in May 2021. There was no interest expense for the three months ended September 30, 2021, as the Convertible Notes matured in May 2021. For nine months ended September 30, 2021, interest expense relating to the stated rate was $0.2 million and interest expense relating to the amortization of the debt discount was $0.8 million. In May 2021, holders of the Convertible Notes exercised their right to convert the outstanding principal and accrued interest into shares, which resulted in the issuance of 9.8 million shares of common stock. Upon issuance of these shares, there were no remaining obligations under the Convertible Notes.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Stockholders' Equity	10. Stockholders’ Equity On August 8, 2022, we entered into an agreement to sell 16.1 million shares of our common stock in a private placement at a purchase price of $3.10 per share. In addition, as a component of the private placement, we agreed to sell 8.5 million pre-funded warrants to purchase shares of our common stock at a purchase price of $3.0999 per share. The pre-funded warrants have an exercise price of $0.0001 per share. The total expected net proceeds from the sale of the common stock and pre-funded warrants is $75.2 million (net of $1.3 million in issuance costs). In October 2022, we filed a registration statement with the SEC to register for resale 24.6 million shares of our common stock. The registration statement was declared effective on October 18, 2022.

Equity Incentive Plan

Equity Incentive Plan	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Equity Incentive Plan	11. Equity Incentive Plan Option Plan Activity The following table summarizes the stock option activity for the nine months ended September 30, 2022: Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at December 31, 2021 18,944 $ 18.71 6.59 Granted 3,857 $ 3.26 Exercised — $ — Expired and forfeited (2,301 ) $ 19.10 Outstanding at September 30, 2022 20,500 $ 15.76 6.31 The following table summarizes the restricted stock unit activity (“RSUs”) for the nine months ended September 30, 2022: Shares (in thousands) Weighted-Average Grant Date Fair Value Outstanding at December 31, 2021 2,803 $ 11.51 Granted 1,159 $ 2.73 Released (667 ) $ 11.58 Expired and forfeited (478 ) $ 11.49 Outstanding at September 30, 2022 2,817 $ 7.88 Stock-based Compensation The following table summarizes stock-based compensation expense related to stock-based payment awards granted pursuant to all of our equity compensation arrangements (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Research and development $ 4,921 $ 4,521 $ 13,906 $ 14,130 General and administrative 2,932 2,836 8,717 8,414 Sales and marketing 3,345 3,879 9,843 11,419 Total stock-based compensation expense $ 11,198 $ 11,236 $ 32,466 $ 33,963 As of September 30, 2022, there 60.6 1.9 . The fair value of RSUs is estimated based on the closing market price of our common stock on the date of the grant. RSUs generally vest quarterly over a four-year We estimated the fair value of each option grant on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions: For the Nine Months Ended September 30, 2022 2021 Risk-free interest rate 3.1 % 1.0 % Dividend yield 0.0 % 0.0 % Volatility 61.1 % 65.8 % Expected life (years) 6 6 We estimated the fair value of each purchase right granted under our 1997 Employee Stock Purchase Plan, as amended, at the beginning of each new offering period using the Black-Scholes option pricing model. There were no new offering periods during the three months ended September 30, 2022.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Income Taxes	12. Income Taxes Deferred income tax assets and liabilities are recognized for temporary differences between financial statements and income tax carrying values using tax rates in effect for the years such differences are expected to reverse. Due to uncertainties surrounding our ability to generate future taxable income and consequently realize such deferred income tax assets, a full valuation allowance has been established. We continue to maintain a full valuation allowance against our deferred tax assets as of September 30, 2022. The impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more likely than not to be sustained upon audit by the relevant tax authority. An uncertain income tax position will be recognized when it is more likely than not of being sustained. The disclosures regarding uncertain tax positions included in our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 28, 2022, continue to be accurate for the three and nine months ended September 30, 2022.

Accounting Policies (Policies)

Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Basis of Presentation	The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended September 30, 2022 are not necessarily indicative of the results that may be expected for other quarters or the year ending December 31, 2022. The condensed consolidated balance sheet as of December 31, 2021 has been derived from the audited financial statements as of that date, but does not include all of the information and disclosures required by GAAP. For more complete financial information, these condensed consolidated financial statements and the notes thereto should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021, which was filed with the SEC on February 28, 2022.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of Heron Therapeutics, Inc. and its wholly-owned subsidiary, Heron Therapeutics B.V., which was organized in the Netherlands in March 2015. Heron Therapeutics B.V. has no operations and no material assets or liabilities, and there have been no significant transactions related to Heron Therapeutics B.V. since its inception.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and disclosures made in the accompanying notes to the financial statements. Our significant accounting policies that involve significant judgment and estimates include revenue recognition, investments, inventory and the related reserves, accrued clinical liabilities, income taxes and stock-based compensation. Actual results could differ materially from those estimates.
Cash, Cash Equivalents and Short-term Investments	Cash, Cash Equivalents and Short-term Investments Cash and cash equivalents consist of cash and highly liquid investments with contractual maturities of three months or less from the original purchase date. Short-term investments consist of securities with contractual maturities of greater than three months from the original purchase date. Securities with contractual maturities greater than one year are classified as short-term investments on the condensed consolidated balance sheets, as we have the ability, if necessary, to liquidate these securities to meet our liquidity needs in the next 12 months. We have classified our short-term investments as available-for-sale securities in the accompanying condensed consolidated financial statements. Available-for-sale securities are stated at fair market value, with net changes in unrealized gains and losses reported in other comprehensive loss and realized gains and losses included in other expense, net. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in interest income.
Concentration of Credit Risk	Concentration of Credit Risk Cash, cash equivalents and short-term investments are financial instruments that potentially subject us to concentrations of credit risk. We deposit our cash in financial institutions. At times, such deposits may be in excess of insured limits. We may also invest our excess cash in money market funds, U.S. government and agencies, corporate debt securities and commercial paper. We have established guidelines relative to our diversification of our cash investments and their maturities in an effort to maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. CINVANTI, SUSTOL and ZYNRELEF (collectively, our “Products”) are distributed in the U.S. through a limited number of specialty distributors and full line wholesalers (collectively, “Customers”) that resell to healthcare providers and hospitals, the end users of our Products. The following table includes the percentage of net product sales and accounts receivable balances for our three major Customers, each of which comprised 10% or more of our net product sales: Net Product Sales Accounts Receivable Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 As of September 30, 2022 Customer A 44.8 % 43.9 % 51.6 % Customer B 36.3 % 36.2 % 34.1 % Customer C 17.7 % 18.7 % 13.5 % Total 98.8 % 98.8 % 99.2 %
Accounts Receivable, Net	Accounts Receivable, Net Accounts receivable are recorded at the invoice amount, net of an allowance for credit losses. The allowance for credit losses reflects accounts receivable balances that are believed to be uncollectible. In estimating the allowance for credit losses, we consider: (1) our historical experience with collections and write-offs; (2) the credit quality of our Customers and any recent or anticipated changes thereto; (3) the outstanding balances and past due amounts from our Customers; and (4) reasonable and supportable forecast of economic conditions expected to exist throughout the contractual term of the receivable. We offered extended payment terms to our Customers in connection with our product launch of ZYNRELEF in July 2021. In addition, we offered extended payment terms to our Customers in January 2021 when we reinstated the promotion and contracting of SUSTOL. These extended payment terms were offered in anticipation of the timing of reimbursement by government and commercial payers. Effective October 2021, we shortened payment terms to our ZYNRELEF and SUSTOL Customers.
Inventory	Inventory Inventory is stated at the lower of cost or estimated net realizable value on a first-in, first-out, or FIFO, basis. We periodically analyze our inventory levels and write down inventory that has become obsolete, inventory that has a cost basis in excess of its estimated realizable value and inventory quantities that are in excess of expected sales requirements as cost of product sales. The determination of whether inventory costs will be realizable requires estimates by management. If actual market conditions are less favorable than projected by management, additional write-downs of inventory may be required, which would be recorded as cost of product sales.
Leases	Leases We determine if an arrangement is a lease or contains lease components at inception. Operating leases with an initial term greater than 12 months, are recorded as lease liabilities with corresponding right-of-use (“ROU”) lease assets on the condensed consolidated balance sheets. ROU lease assets represent our right to use the underlying assets over the lease term, and lease liabilities represent the present value of our obligation to make lease payments arising from the lease. Lease liabilities are recognized at the lease commencement based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The ROU lease assets equal the lease liabilities, less unamortized lease incentives, unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease. The lease term includes any option to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with both lease and non-lease components, which are generally accounted for separately.
Revenue Recognition	Revenue Recognition Revenue is recognized in accordance with the Financial Accounting Standards Board (the “FASB”) Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers Product Sales Our Products are distributed in the U.S. through a limited number of Customers that resell to healthcare providers and hospitals, the end users of our Products. Revenue is recognized in an amount that reflects the consideration we expect to receive in exchange for our Products. To determine revenue recognition for contracts with customers within the scope of Topic 606, we perform the following 5 steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations of the contract(s); (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract(s); and (v) recognize revenue when (or as) we satisfy the performance obligations. We recognize revenue from product sales when there is a transfer of control of the product to our Customers. We typically determine transfer of control based on when the product is delivered, and title passes to our Customers. Product Sales Allowances We recognize product sales allowances as a reduction of product sales in the same period the related revenue is recognized. Product sales allowances are based on amounts owed or to be claimed on the related sales. Such variable consideration includes estimates that take into consideration the terms of our agreements with Customers, historical product returns, rebates or discounts taken, the shelf life of the product and specific known market events, such as competitive pricing and new product introductions. If actual future results vary from our estimates, we may need to adjust these estimates, which could have an effect on product sales and earnings in the period of adjustment. Our product sales allowances include: • Product Returns—We allow our Customers to return product for credit for up to 12 months after its product expiration date. As such, there may be a significant period of time between the time the product is shipped and the time the credit is issued on returned product. • Distributor Fees—We offer contractually determined discounts to our Customers. These discounts are paid no later than two months after the quarter in which product was shipped. • Group Purchasing Organization (“GPO”) Discounts and Rebates—We offer cash discounts to GPO members. These discounts are taken when the GPO members purchase product from our Customers, who then charge back to us the discount amount. Additionally, we offer volume and contract-tier rebates to GPO members. Rebates are based on actual purchase levels during the quarterly rebate purchase period. • GPO Administrative Fees—We pay administrative fees to GPOs for services and access to data. These fees are based on contracted terms and are paid after the quarter in which the product was purchased by the GPOs’ members. • Medicaid Rebates—We participate in Medicaid rebate programs, which provide assistance to certain low-income patients based on each individual state’s guidelines regarding eligibility and services. Under the Medicaid rebate programs, we pay a rebate to each participating state, generally within three months after the quarter in which the product was sold. We believe our estimated allowance for product returns requires a high degree of judgment and is subject to change based on our experience and certain quantitative and qualitative factors. We believe our estimated allowances for distributor fees, GPO discounts, rebates and administrative fees and Medicaid rebates do not require a high degree of judgment because the amounts are settled within a relatively short period of time. Our product sales allowances and related accruals are evaluated each reporting period and adjusted when trends or significant events indicate that a change in estimate is appropriate. Changes in product sales allowance estimates could materially affect our results of operations and financial position The following table provides disaggregated net product sales (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 CINVANTI net product sales $ 21,169 $ 18,036 $ 64,173 $ 56,186 SUSTOL net product sales 2,671 3,114 7,179 7,425 ZYNRELEF net product sales 2,717 2,080 6,292 2,080 Total net product sales $ 26,557 $ 23,230 $ 77,644 $ 65,691 The following table provides a summary of activity with respect to our product returns, distributor fees and discounts, rebates and administrative fees, which are included in other accrued liabilities on the condensed consolidated balance sheets (in thousands): Product Returns Distributor Fees Discounts, Rebates and Administrative Fees Total Balance at December 31, 2021 $ 2,579 $ 3,466 $ 16,515 $ 22,560 Provision 1,213 15,301 115,324 131,838 Payments/credits (699 ) (15,193 ) (110,682 ) (126,574 ) Balance at September 30, 2022 $ 3,093 $ 3,574 $ 21,157 $ 27,824
Comprehensive Loss	Comprehensive Loss Comprehensive loss is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net changes in unrealized gains and losses on available-for-sale securities are included in other comprehensive income (loss) and represent the difference between our net loss and comprehensive loss for all periods presented.
Net Loss per Share	Net Loss per Share Basic net loss per share is calculated by dividing the net loss by the weighted-average number of common shares outstanding for the period, without consideration of common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, warrants and shares of common stock underlying convertible notes are considered to be common stock equivalents and are included in the calculation of diluted net loss per share only when their effect is dilutive. Because we have incurred a net loss for all periods presented in the unaudited condensed consolidated statements of operations and comprehensive loss, the following common stock equivalents were not included in the computation of net loss per share because their effect would be anti-dilutive (in thousands): September 30, 2022 2021 Stock options outstanding 20,500 18,257 Restricted stock units outstanding 2,817 641 Warrants outstanding 8,548 25 Shares of common stock underlying convertible notes outstanding 9,819 9,819
Recent Accounting Pronouncements	Recent Accounting Pronouncements Adopted in 2022 In August 2020, the FASB issued Accounting Standards Update (“ASU”) No. 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity . .

Accounting Policies (Tables)

Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2022
Accounting Policies [Abstract]
Percentage of Net Product Sales and Accounts Receivable Balance	The following table includes the percentage of net product sales and accounts receivable balances for our three major Customers, each of which comprised 10% or more of our net product sales: Net Product Sales Accounts Receivable Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 As of September 30, 2022 Customer A 44.8 % 43.9 % 51.6 % Customer B 36.3 % 36.2 % 34.1 % Customer C 17.7 % 18.7 % 13.5 % Total 98.8 % 98.8 % 99.2 %
Summary of Disaggregated Net Product Sales	The following table provides disaggregated net product sales (in thousands): For the Three Months Ended September 30, For the Nine Months Ended September 30, 2022 2021 2022 2021 CINVANTI net product sales $ 21,169 $ 18,036 $ 64,173 $ 56,186 SUSTOL net product sales 2,671 3,114 7,179 7,425 ZYNRELEF net product sales 2,717 2,080 6,292 2,080 Total net product sales $ 26,557 $ 23,230 $ 77,644 $ 65,691
Summary of Activity to Product Returns, Distributor Fees and Discounts, Rebates and Administrative Fees	The following table provides a summary of activity with respect to our product returns, distributor fees and discounts, rebates and administrative fees, which are included in other accrued liabilities on the condensed consolidated balance sheets (in thousands): Product Returns Distributor Fees Discounts, Rebates and Administrative Fees Total Balance at December 31, 2021 $ 2,579 $ 3,466 $ 16,515 $ 22,560 Provision 1,213 15,301 115,324 131,838 Payments/credits (699 ) (15,193 ) (110,682 ) (126,574 ) Balance at September 30, 2022 $ 3,093 $ 3,574 $ 21,157 $ 27,824
Common Stock Equivalents Excluded From Computation of Net Loss Per Share	Because we have incurred a net loss for all periods presented in the unaudited condensed consolidated statements of operations and comprehensive loss, the following common stock equivalents were not included in the computation of net loss per share because their effect would be anti-dilutive (in thousands): September 30, 2022 2021 Stock options outstanding 20,500 18,257 Restricted stock units outstanding 2,817 641 Warrants outstanding 8,548 25 Shares of common stock underlying convertible notes outstanding 9,819 9,819

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2022
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	We measure cash, cash equivalents and short-term investments at fair value on a recurring basis. The fair values of such assets were as follows (in thousands): Fair Value Measurements at Reporting Date Using Balance at September 30, 2022 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and money market funds $ 41,468 $ 41,468 $ — $ — U.S. treasury bills and government agency obligations 34,699 34,699 — — U.S. commercial paper 14,395 — 14,395 — Foreign commercial paper 31,184 — 31,184 — Total $ 121,746 $ 76,167 $ 45,579 $ — Fair Value Measurements at Reporting Date Using Balance at December 31, 2021 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash and money market funds $ 86,043 $ 86,043 $ — $ — U.S. corporate debt securities 15,006 — 15,006 — Foreign corporate debt securities 10,548 — 10,548 — U.S. commercial paper 10,496 — 10,496 — Foreign commercial paper 35,487 — 35,487 — Total $ 157,580 $ 86,043 $ 71,537 $ —

Short-term Investments (Tables)

Short-term Investments (Tables)	9 Months Ended
	Sep. 30, 2022
Short Term Investments [Abstract]
Summary of Short-term Investments	The following is a summary of our short-term investments (in thousands): September 30, 2022 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. treasury bills and government agency obligations $ 34,756 $ — $ (57 ) $ 34,699 U.S. commercial paper $ 8,416 $ — $ — $ 8,416 Foreign commercial paper 28,193 — — 28,193 Total $ 71,365 $ — $ (57 ) $ 71,308 December 31, 2021 Gross Gross Amortized Unrealized Unrealized Estimated Cost Gains Losses Fair Value U.S. corporate debt securities $ 15,009 $ — $ (3 ) $ 15,006 Foreign corporate debt securities 10,551 — (3 ) 10,548 U.S. commercial paper 5,998 — — 5,998 Foreign commercial paper 35,487 — — 35,487 Total $ 67,045 $ — $ (6 ) $ 67,039

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2022
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consists of the following (in thousands): September 30, 2022 December 31, 2021 Raw materials $ 18,586 $ 21,193 Work in process 11,625 20,935 Finished goods 22,028 6,254 Total inventory $ 52,239 $ 48,382

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2022
Leases [Abstract]
Summary of Future Minimum Lease Payments	Annual future minimum lease payments as of September 30, 2022 are as follows (in thousands): 2022 $ 730 2023 2,970 2024 3,030 2025 3,097 Total future minimum lease payments $ 9,827 Less: discount (1,056 ) Total lease liabilities $ 8,771

Equity Incentive Plan (Tables)

Equity Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2022
Equity [Abstract]
Summary of Stock Option Activity	The following table summarizes the stock option activity for the nine months ended September 30, 2022: Shares (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Outstanding at December 31, 2021 18,944 $ 18.71 6.59 Granted 3,857 $ 3.26 Exercised — $ — Expired and forfeited (2,301 ) $ 19.10 Outstanding at September 30, 2022 20,500 $ 15.76 6.31
Summary of Restricted Stock Unit Activity	The following table summarizes the restricted stock unit activity (“RSUs”) for the nine months ended September 30, 2022: Shares (in thousands) Weighted-Average Grant Date Fair Value Outstanding at December 31, 2021 2,803 $ 11.51 Granted 1,159 $ 2.73 Released (667 ) $ 11.58 Expired and forfeited (478 ) $ 11.49 Outstanding at September 30, 2022 2,817 $ 7.88
Summary of Stock-Based Compensation Expense related to Stock-Based Payment Awards Granted	The following table summarizes stock-based compensation expense related to stock-based payment awards granted pursuant to all of our equity compensation arrangements (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Research and development $ 4,921 $ 4,521 $ 13,906 $ 14,130 General and administrative 2,932 2,836 8,717 8,414 Sales and marketing 3,345 3,879 9,843 11,419 Total stock-based compensation expense $ 11,198 $ 11,236 $ 32,466 $ 33,963
Summary of Fair Value of Option Grant on Grant Date Using Black-Scholes Option Pricing Model	We estimated the fair value of each option grant on the grant date using the Black-Scholes option pricing model with the following weighted-average assumptions: For the Nine Months Ended September 30, 2022 2021 Risk-free interest rate 3.1 % 1.0 % Dividend yield 0.0 % 0.0 % Volatility 61.1 % 65.8 % Expected life (years) 6 6

Business - Additional Informati

Business - Additional Information (Details) $ in Millions	Sep. 30, 2022 USD ($) Country
Business [Line Items]
Cash, cash equivalents and short-term investments | $	$ 121.7
H T X011 | European Countries and Canada
Business [Line Items]
Number of countries approved the drug | Country	31

Accounting Policies - Percentag

Accounting Policies - Percentage of Net Product Sales and Accounts Receivable Balance (Details) - Customer Concentration Risk	3 Months Ended	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2022
Revenue Benchmark | Largest Customer
Product Information [Line Items]
Concentration risk percentage	44.80%	43.90%
Revenue Benchmark | Second Largest Customer
Product Information [Line Items]
Concentration risk percentage	36.30%	36.20%
Revenue Benchmark | Third Largest Customer
Product Information [Line Items]
Concentration risk percentage	17.70%	18.70%
Revenue Benchmark | Total Customer
Product Information [Line Items]
Concentration risk percentage	98.80%	98.80%
Accounts Receivable | Largest Customer
Product Information [Line Items]
Concentration risk percentage		51.60%
Accounts Receivable | Second Largest Customer
Product Information [Line Items]
Concentration risk percentage		34.10%
Accounts Receivable | Third Largest Customer
Product Information [Line Items]
Concentration risk percentage		13.50%
Accounts Receivable | Total Customer
Product Information [Line Items]
Concentration risk percentage		99.20%

Accounting Policies - Summary o

Accounting Policies - Summary of Disaggregated Net Product Sales (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Product Information [Line Items]
Net product sales	$ 26,557	$ 23,230	$ 77,644	$ 65,691
CINVANTI
Product Information [Line Items]
Net product sales	21,169	18,036	64,173	56,186
SUSTOL
Product Information [Line Items]
Net product sales	2,671	3,114	7,179	7,425
ZYNRELEF
Product Information [Line Items]
Net product sales	$ 2,717	$ 2,080	$ 6,292	$ 2,080

Accounting Policies - Summary_2

Accounting Policies - Summary of Activity to Product Returns, Distributor Fees and Discounts, Rebates and Administrative Fees (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2022 USD ($)
Product Information [Line Items]
Balance	$ 22,560
Provision	131,838
Payments/credits	(126,574)
Balance	27,824
Product Returns
Product Information [Line Items]
Balance	2,579
Provision	1,213
Payments/credits	(699)
Balance	3,093
Distributor Fees
Product Information [Line Items]
Balance	3,466
Provision	15,301
Payments/credits	(15,193)
Balance	3,574
Discounts, Rebates and Administrative Fees
Product Information [Line Items]
Balance	16,515
Provision	115,324
Payments/credits	(110,682)
Balance	$ 21,157

Accounting Policies - Common St

Accounting Policies - Common Stock Equivalents Excluded From Computation of Net Loss Per Share (Details) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share-based Payment Arrangement, Option
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded (in shares)	20,500	18,257
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded (in shares)	2,817	641
Warrant
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded (in shares)	8,548	25
Convertible Debt Securities
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Shares excluded (in shares)	9,819	9,819

Accounting Policies - Additiona

Accounting Policies - Additional Information (Details) - Accounting Standards Update 2020-06	Sep. 30, 2022
Product Information [Line Items]
Change in accounting principle, accounting standards update, adopted	true
Change in accounting principle, accounting standards update, immaterial effect	true

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 71,308	$ 67,039
U.S. Treasury Bills and Government Agency Obligations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities	34,699
U.S. Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities	8,416	5,998
U.S. Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities		15,006
Foreign Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities		10,548
Fair Value, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	121,746	157,580
Fair Value, Recurring | Foreign Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities	31,184	35,487
Fair Value, Recurring | U.S. Treasury Bills and Government Agency Obligations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities	34,699
Fair Value, Recurring | U.S. Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities	14,395	10,496
Fair Value, Recurring | U.S. Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities		15,006
Fair Value, Recurring | Foreign Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities		10,548
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	76,167	86,043
Fair Value, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury Bills and Government Agency Obligations
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities	34,699
Fair Value, Recurring | Significant Other Observable Inputs (Level 2)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total	45,579	71,537
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Foreign Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities	31,184	35,487
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities	14,395	10,496
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities		15,006
Fair Value, Recurring | Significant Other Observable Inputs (Level 2) | Foreign Corporate Debt Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Available-for-sale securities		10,548
Fair Value, Recurring | Cash and Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and money market funds	41,468	86,043
Fair Value, Recurring | Cash and Money Market Funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and money market funds	$ 41,468	$ 86,043

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	9 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Financial instruments transferred among fair value hierarchy levels	$ 0
Cash equivalents included of available-for-sale securities	9,000,000	$ 4,500,000
Available for sale securities with contractual maturities of three months to one year.	$ 71,300,000	$ 67,000,000

Short-term Investments - Summar

Short-term Investments - Summary of Short-term Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale securities, amortized cost	$ 71,365	$ 67,045
Available-for-sale securities, gross unrealized losses	(57)	(6)
Available-for-sale securities	71,308	67,039
U.S. Treasury Bills and Government Agency Obligations
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale securities, amortized cost	34,756
Available-for-sale securities, gross unrealized losses	(57)
Available-for-sale securities	34,699
U.S. Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale securities, amortized cost		15,009
Available-for-sale securities, gross unrealized losses		(3)
Available-for-sale securities		15,006
Foreign Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale securities, amortized cost		10,551
Available-for-sale securities, gross unrealized losses		(3)
Available-for-sale securities		10,548
U.S. Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale securities, amortized cost	8,416	5,998
Available-for-sale securities	8,416	5,998
Foreign Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Available-for-sale securities, amortized cost	28,193	35,487
Available-for-sale securities	$ 28,193	$ 35,487

Short-term Investments - Additi

Short-term Investments - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Short Term Investments [Abstract]
Debt securities, impairment losses	$ 0	$ 0	$ 0	$ 0
Debt securities, available-for-sale, realized gain (loss)	$ 0	$ 0	$ 0	$ 0

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Dec. 31, 2021
Inventory Disclosure [Abstract]
Raw materials	$ 18,586	$ 21,193
Work in process	11,625	20,935
Finished goods	22,028	6,254
Total inventory	$ 52,239	$ 48,382

Inventory - Additional Informat

Inventory - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Inventory [Line Items]
Total inventory	$ 52,239		$ 52,239		$ 48,382
ZYNRELEF
Inventory [Line Items]
Total inventory	36,200		36,200		23,600
Cost of product sales, charges	2,000		4,500
SUSTOL
Inventory [Line Items]
Total inventory	2,600		2,600		1,700
Cost of product sales, charges		$ 400		$ 3,500
CINVANTI
Inventory [Line Items]
Total inventory	$ 13,400		$ 13,400		$ 23,100

Leases - Additional Information

Leases - Additional Information (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2022 USD ($) ft²	Sep. 30, 2022 USD ($) ft²	Oct. 31, 2021 ft²
Sublease Agreement
Lessee Lease Description [Line Items]
Area of real estate property			23,873
San Diego, California
Lessee Lease Description [Line Items]
Area of real estate property	52,148	52,148
Lease expiration date		Dec. 31, 2025
Lessee, operating lease, renewal term	5 years	5 years
Remaining area of real estate property	28,275	28,275
Lessee, operating lease, existence of option to extend		true
Operating lease expense | $	$ 0.7	$ 2.1
Operating lease cash payments | $	$ 0.7	$ 2.1

Leases - Summary of Future Mini

Leases - Summary of Future Minimum Lease Payments (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Leases [Abstract]
2022	$ 730
2023	2,970
2024	3,030
2025	3,097
Total future minimum lease payments	9,827
Less: discount	(1,056)
Total lease liabilities	$ 8,771

Reorganizations - Additional In

Reorganizations - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended		3 Months Ended		9 Months Ended
	Jun. 30, 2022	Oct. 31, 2021	Sep. 30, 2022	Dec. 31, 2021	Sep. 30, 2022
Restructuring charges, total	$ 5.4	$ 1.4
Payments for restructuring charges			$ 1.5		$ 4.8
Research and Development Expense
Restructuring charges, total			1.3	$ 1.2	3.7
Selling and Marketing Expense
Restructuring charges, total			0.1	$ 0.2	0.9
General and Administrative Expense
Restructuring charges, total			$ 0.1		0.2
Employee Severance
Restructuring charges, total	5	1.3
Employee Severance | 2022 Restructuring Plan
Payments for restructuring charges					3.1
Employee Severance | 2021 Restructuring Plan
Payments for restructuring charges					$ 1.3
Accelerated Non-Cash Stock Option Expense
Restructuring charges, total	$ 0.4	$ 0.1

Convertible Notes - Additional

Convertible Notes - Additional Information (Details) - USD ($)	1 Months Ended		3 Months Ended			9 Months Ended
	May 31, 2021	Apr. 30, 2011	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Net proceeds from convertible notes financing							$ 148,963,000
Amortization of debt issuance costs						$ 152,000	69,000
Amortization of debt discount							785,000
Common Stock
Debt Instrument [Line Items]
Initial conversion price/rate	$ 15.276
Issuance of common stock on conversion of notes (in shares)	9,800,000				9,849,000
Notes
Debt Instrument [Line Items]
Convertible debt issuable in connection with private placement	$ 150,000,000
Net proceeds from convertible notes financing	$ 149,000,000
Debt instrument, interest rate	1.50%
Debt instrument, maturity date	May 26, 2026
Debt instrument, frequency of periodic payment	semi-annually
Debt instrument, date of first required payment	Dec. 15, 2021
Initial conversion price/rate	$ 65.4620
Debt instrument conversion ratio multiple of principal	$ 1,000
Common shares registered for resale in connection with convertible notes	12,400,000
Debt issuance costs incurred						$ 1,000,000
Effective interest rate			1.60%			1.60%
Interest expense			$ 614,000	$ 612,000		$ 1,800,000	844,000
Interest expense, debt, excluding amortization			563,000	562,000		1,700,000	775,000
Amortization of debt issuance costs			51,000	50,000		100,000	69,000
Carrying value of debt			149,200,000			149,200,000
Debt instrument, face amount			150,000,000			150,000,000
Debt issuance costs			$ 800,000			$ 800,000
Notes | Redemption Between May 24, 2024 and May 24, 2025
Debt Instrument [Line Items]
Debt instrument, redemption period, stock price exceeds in percentage of conversion price	250%
Notes | Redemption On or After May 24, 2025
Debt Instrument [Line Items]
Debt instrument, redemption period, stock price exceeds in percentage of conversion price	200%
Convertible Notes
Debt Instrument [Line Items]
Convertible debt issuable in connection with private placement		$ 4,500,000
Net proceeds from convertible notes financing		$ 4,300,000
Debt instrument, interest rate		6%
Debt instrument, maturity date		May 02, 2021
Debt instrument conversion ratio multiple of principal		$ 1,000
Interest expense, debt, excluding amortization							200,000
Carrying value of debt	$ 0
Debt instrument, term		10 years
Interest expense				$ 0
Amortization of debt discount							$ 800,000
Convertible Notes | Common Stock
Debt Instrument [Line Items]
Debt instrument, number of shares issued for convertible notes		1,250

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	Oct. 18, 2022	Aug. 08, 2022
Private Placement
Class Of Stock [Line Items]
Shares of common stock sold		16.1
Purchase price per share		$ 3.10
Proceeds from issuance of common stock and pre-funded warrants		$ 75.2
Stock issuance cost		$ 1.3
Pre-funded Warrants
Class Of Stock [Line Items]
Purchase price per share		$ 3.0999
Class of warrant or right, number of securities called by warrants or rights		8.5
Class of warrant or right, exercise price of warrants or rights		$ 0.0001
Subsequent Event
Class Of Stock [Line Items]
Common shares registered for resale	24.6

Equity Incentive Plan - Summary

Equity Incentive Plan - Summary of Stock Option Activity (Details) - $ / shares shares in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2022	Dec. 31, 2021
Equity [Abstract]
Number of shares outstanding	18,944
Number of shares granted	3,857
Number of shares expired and forfeited	(2,301)
Number of shares outstanding	20,500	18,944
Number of shares outstanding, weighted average exercise price	$ 18,710
Number of shares granted, weighted average exercise price	3,260
Number of shares expired and forfeited, weighted average exercise price	19,100
Number of shares outstanding, weighted average exercise price	$ 15,760	$ 18,710
Number of shares outstanding, weighted average remaining contractual term (Year)	6 years 3 months 21 days	6 years 7 months 2 days

Equity Incentive Plan - Summa_2

Equity Incentive Plan - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands	9 Months Ended
	Sep. 30, 2022 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of shares outstanding | shares	2,803
Number of shares granted | shares	1,159
Number of shares released | shares	(667)
Number of shares expired and forfeited | shares	(478)
Number of shares outstanding | shares	2,817
Number of shares outstanding, weighted average grant date fair value | $ / shares	$ 11.51
Number of shares granted, weighted average grant date fair value | $ / shares	2.73
Number of shares released, weighted average grant date fair value | $ / shares	11.58
Number of shares expired and forfeited, weighted average grant date fair value | $ / shares	11.49
Number of shares outstanding, weighted average grant date fair value | $ / shares	$ 7.88

Equity Incentive Plan - Summa_3

Equity Incentive Plan - Summary of Stock-Based Compensation Expense related to Stock-Based Payment Awards Granted (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 11,198	$ 11,236	$ 32,466	$ 33,963
Research and Development Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	4,921	4,521	13,906	14,130
General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	2,932	2,836	8,717	8,414
Selling and Marketing Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 3,345	$ 3,879	$ 9,843	$ 11,419

Equity Incentive Plan - Additio

Equity Incentive Plan - Additional Information (Details) $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)
Class Of Stock [Line Items]
Total unrecognized compensation cost related to non-vested, stock-based payment awards	$ 60.6
Total unrecognized compensation cost, expect to recognize over weighted average period	1 year 10 months 24 days
Restricted Stock Units
Class Of Stock [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting period	4 years

Equity Incentive Plan - Summa_4

Equity Incentive Plan - Summary of Fair Value of Option Grant on Grant Date Using Black-Scholes Option Pricing Model (Details) - Share-based Payment Arrangement, Option	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate	3.10%	1%
Dividend yield	0%	0%
Volatility	61.10%	65.80%
Expected life (years)	6 years	6 years