Incyte (INCY) 10-Q 31 Oct 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Oct. 24, 2013
Document and Entity Information	'	'
Entity Registrant Name	'INCYTE CORP	'
Entity Central Index Key	'0000879169	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
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	'	161,119,554
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$272,122	$224,057
Marketable securities-available-for-sale	19,052	4,361
Accounts receivable, net	33,197	70,951
Inventory	359	278
Prepaid expenses and other current assets	9,013	9,867
Total current assets	333,743	309,514
Inventory	14,948	8,475
Property and equipment, net	6,201	6,348
Intangible and other assets, net	2,508	6,082
Total assets	357,400	330,419
Current liabilities:	'	'
Accounts payable	18,212	13,961
Accrued compensation	17,957	22,899
Interest payable	6,087	4,750
Accrued and other current liabilities	41,739	28,385
Deferred revenue-Collaborative agreements	25,503	66,079
Total current liabilities	109,498	136,074
Convertible senior notes	187,136	322,043
Convertible subordinated note	'	9,033
Other liabilities	3,392	'
Deferred revenue-Collaborative agreements	28,583	38,226
Total liabilities	328,609	505,376
Stockholders' equity (deficit):	'	'
Preferred stock, $0.001 par value; 5,000,000 shares authorized; none issued or outstanding as of September 30, 2013 and December 31, 2012	'	'
Common stock, $0.001 par value; 400,000,000 shares authorized; 160,881,043 and 133,462,185 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively	161	133
Additional paid-in capital	1,720,788	1,476,922
Accumulated other comprehensive gain	2,008	1,878
Accumulated deficit	-1,694,166	-1,653,890
Total stockholders' equity (deficit)	28,791	-174,957
Total liabilities and stockholders'equity (deficit)	$357,400	$330,419

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Condensed Consolidated Balance Sheets	'	'
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	160,881,043	133,462,185
Common stock, shares outstanding	160,881,043	133,462,185

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:	'	'	'	'
Product revenues, net	$60,201	$43,695	$162,589	$92,700
Product royalty revenues	8,184	'	19,893	'
Contract revenues	16,737	16,737	75,211	90,211
Other revenues	1	60	182	302
Total revenues	85,123	60,492	257,875	183,213
Costs and expenses:	'	'	'	'
Cost of product revenues	155	31	463	58
Research and development	71,704	50,079	185,417	150,627
Selling, general and administrative	26,447	20,520	71,956	61,634
Total costs and expenses	98,306	70,630	257,836	212,319
Income (loss) from operations	-13,183	-10,138	39	-29,106
Interest and other income, net	385	27	829	393
Interest expense	-7,699	-11,573	-29,720	-34,293
Debt exchange expense	-1,491	'	-11,262	'
Loss before income taxes	-21,988	-21,684	-40,114	-63,006
Provision for income taxes	49	26	162	93
Net loss	($22,037)	($21,710)	($40,276)	($63,099)
Basic and diluted net loss per share: (in dollars per share)	($0.14)	($0.17)	($0.28)	($0.49)
Shares used in computing basic and diluted net loss per share (in shares)	155,067	130,851	143,899	129,093

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Loss (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Condensed Consolidated Statements of Comprehensive Loss	'	'	'	'
Net loss	($22,037)	($21,710)	($40,276)	($63,099)
Other comprehensive gain:	'	'	'	'
Unrealized gain on marketable securities, net of tax	15	429	130	507
Other comprehensive gain	15	429	130	507
Comprehensive loss	($22,022)	($21,281)	($40,146)	($62,592)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013
			Pfizer convertible subordinated note due 2014	4.75% convertible senior notes due 2015
Cash flows from operating activities:	'	'	'	'
Net loss	($40,276)	($63,099)	'	'
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	'	'	'	'
Depreciation and amortization of debt discounts	20,355	22,214	'	'
Stock-based compensation	28,577	29,426	'	'
Debt exchange expense	11,262	'	'	'
Changes in operating assets and liabilities:	'	'	'	'
Accounts receivable	37,754	-10,125	'	'
Prepaid expenses and other assets	2,644	8,370	'	'
Inventory	-6,554	-1,672	'	'
Accounts payable	4,251	-2,175	'	'
Accrued and other current liabilities	13,075	-3,220	'	'
Deferred revenue - Product revenues	'	-2,332	'	'
Deferred revenue - Collaborative agreements	-50,219	-50,209	'	'
Net cash provided by (used in) operating activities	20,869	-72,822	'	'
Cash flows from investing activities:	'	'	'	'
Capital expenditures	-2,236	-1,909	'	'
Purchases of marketable securities	-15,024	'	'	'
Sales and maturities of marketable securities	-203	421	'	'
Net cash used in investing activities	-17,463	-1,488	'	'
Cash flows from financing activities:	'	'	'	'
Proceeds from issuance of common stock under stock plans	55,921	40,229	'	'
Cash paid in connection with exchange of 4.75% convertible senior notes due 2015	-11,262	'	'	'
Net cash provided by financing activities	44,659	40,229	'	'
Net increase (decrease) in cash and cash equivalents	48,065	-34,081	'	'
Cash and cash equivalents at beginning of period	224,057	273,164	'	'
Cash and cash equivalents at end of period	272,122	239,083	'	'
Supplemental Schedule of Cash Flow Information	'	'	'	'
Interest paid	9,500	9,500	'	'
Income taxes paid	140	1	'	'
Non-cash reclassification to additional paid in capital in connection with conversion/exchange of debt instruments	'	'	$9,373	$149,915

Organization_and_business

Organization and business	9 Months Ended
	Sep. 30, 2013
Organization and business	'
Organization and business	'
	1.              Organization and business
	Incyte Corporation (“Incyte,” “we,” “us,” “our” or the “Company”) is a biopharmaceutical company focused on developing and commercializing proprietary small molecule drugs for oncology and inflammation. Our pipeline includes compounds in various stages, ranging from preclinical to late stage development, and a commercialized product, JAKAFI® (ruxolitinib).

Summary_of_significant_account

Summary of significant accounting policies	9 Months Ended
	Sep. 30, 2013
Summary of significant accounting policies	'
Summary of significant accounting policies	'
	2.              Summary of significant accounting policies
	Basis of presentation
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. The condensed consolidated balance sheet as of September 30, 2013 and the condensed consolidated statements of operations, comprehensive loss and cash flows for the three and nine months ended September 30, 2013 and 2012, are unaudited, but include all adjustments, consisting only of normal recurring adjustments, which we consider necessary for a fair presentation of the financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2012 has been derived from audited financial statements.
	Although we believe that the disclosures in these financial statements are adequate to make the information presented not misleading, certain information and footnote information normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission.
	Results for any interim period are not necessarily indicative of results for any future interim period or for the entire year. The accompanying financial statements should be read in conjunction with the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012.
	Revenue Recognition. Revenues are recognized when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the price is fixed or determinable and (4) collectability is reasonably assured. Revenues are deferred for fees received before earned or until no further obligations exist. We exercise judgment in determining that collectability is reasonably assured or that services have been delivered in accordance with the arrangement. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. We assess collectability based primarily on the customer’s payment history and on the creditworthiness of the customer.
	Product Revenues
	Our product revenues consist of U.S. sales of JAKAFI and are recognized once we meet all four revenue recognition criteria described above. In November 2011, we began shipping JAKAFI to our specialty pharmacy customers, which in turn dispense JAKAFI to patients in fulfillment of prescriptions. From November 2011 to June 2012, as JAKAFI was a new and novel product, the first approved treatment for intermediate or high-risk myelofibrosis, and the first commercial product for Incyte, we determined we could not reasonably assess potential product returns. As a result of our inability to initially estimate product returns, the price of JAKAFI was not deemed fixed or determinable, and we deferred the recognition of revenues on product shipments of JAKAFI until the product was shipped by our specialty pharmacy customers to patients.
	Based on our actual experience with product returns through the three months ended September 30, 2012, we had the ability to estimate product returns and the price of JAKAFI is now deemed fixed or determinable. As a result, during the three months ended September 30, 2012, we began to recognize revenue for product sales of JAKAFI at the time the product was received by our specialty pharmacy customers.
	We recognize revenues for product received by our specialty pharmacy customers net of allowances for customer credits, including estimated rebates, chargebacks, discounts, returns, distribution service fees, patient assistance programs, and Medicare Part D coverage gap reimbursements. Product shipping and handling costs are included in cost of product revenues.
	Customer Credits: Our specialty pharmacy customers are offered various forms of consideration, including allowances, service fees and prompt payment discounts. We expect our specialty pharmacy customers will earn prompt payment discounts and, therefore, we deduct the full amount of these discounts from total product sales when revenues are recognized. Service fees are also deducted from total product sales as they are earned.
	Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program. Rebate amounts are based upon contractual agreements or legal requirements with public sector (e.g. Medicaid) benefit providers. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements or legal requirements with public sector benefit providers. The allowance for rebates is based on statutory discount rates and expected utilization. Our estimates for expected utilization of rebates are based on data received from our specialty pharmacy customers. Rebates are generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters’ unpaid rebates. If actual future rebates vary from estimates, we may need to adjust prior period accruals, which would affect revenue in the period of adjustment.
	Chargebacks: Chargebacks are discounts that occur when contracted customers purchase directly from a specialty pharmacy, or an intermediary distributor. Contracted customers, which currently consist primarily of Public Health Service institutions, non-profit clinics, and Federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The specialty pharmacy or distributor, in turn, charges back to us the difference between the price initially paid by the specialty pharmacy or distributor and the discounted price paid to the specialty pharmacy or distributor by the customer. The allowance for chargebacks is based on known sales to contracted customers.
	Medicare Part D Coverage Gap: Medicare Part D prescription drug benefit mandates manufacturers to fund 50% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients. Our estimates for the expected Medicare Part D coverage gap are based on historical invoices received and in part from data received from our specialty pharmacy customers. Funding of the coverage gap is generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters. If actual future funding varies from estimates, we may need to adjust prior period accruals, which would affect revenue in the period of adjustment.
	Co-payment assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. We accrue a liability for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third- party administrators.
	Product Royalty Revenues
	Royalty revenues on commercial sales for ruxolitinib (marketed as JAKAVI® outside the United States) by Novartis Pharmaceutical International Ltd. (“Novartis”) are based on net sales of licensed products in licensed territories as provided by Novartis. We recognize royalty revenues in the period the sales occur.
	Contract and License Revenues
	Under agreements involving multiple deliverables, services and/or rights to use assets that we entered into prior to January 1, 2011, the multiple elements are divided into separate units of accounting when certain criteria are met, including whether the delivered items have stand-alone value to the customer and whether there is objective and reliable evidence of the fair value of the undelivered items. When separate units of accounting exist, consideration is allocated among the separate elements based on their respective fair values. The determination of fair value of each element is based on objective evidence from historical sales of the individual elements by us to other customers. If such evidence of fair value for each undelivered element of the arrangement does not exist, all revenue from the arrangement is deferred until such time that evidence of fair value for each undelivered element does exist or until all elements of the arrangement are delivered. When elements are specifically tied to a separate earnings process, revenue is recognized when the specific performance obligation tied to the element is completed. When revenues for an element are not specifically tied to a separate earnings process, they are recognized ratably over the term of the agreement. We assess whether a substantive milestone exists at the inception of our agreements. For all milestones within our arrangements that are considered substantive, we recognize revenue upon the achievement of the associated milestone. If a milestone is not considered substantive, we would recognize the applicable milestone payment over the remaining period of performance under the arrangement. Further information about our collaborative arrangements can be found below in Note 6, License Agreements. As of September 30, 2013, all remaining potential milestones under our collaborative arrangements are considered substantive.
	On January 1, 2011, updated guidance on the recognition of revenues for agreements with multiple deliverables became effective and applies to any agreements we may enter into on or after January 1, 2011. This updated guidance (i) relates to whether multiple deliverables exist, how the deliverables in a revenue arrangement should be separated and how the consideration should be allocated; (ii) requires companies to allocate revenues in an arrangement using estimated selling prices of deliverables if a vendor does not have vendor-specific objective evidence or third-party evidence of selling price; and (iii) eliminates the use of the residual method and requires companies to allocate revenues using the relative selling price method. During three and nine months ended September 30, 2013, we did not enter into any agreements that are subject to this updated guidance. If we enter into an agreement with multiple deliverables after January 1, 2011 or amend existing agreements, this updated guidance could have a material effect on our financial statements.
	Inventory
	Inventories are determined at the lower of cost or market value with cost determined under the specific identification method and may consist of raw materials, work in process and finished goods. We began capitalizing inventory in mid-November 2011 once the U.S. Food and Drug Administration (“FDA”) approved JAKAFI as the related costs were expected to be recoverable through the commercialization of the product. Costs incurred prior to approval of JAKAFI have been recorded as research and development expense in our statements of operations. As a result, inventory balances and cost of product revenue for the next several quarters will reflect a lower average per unit cost of materials.
	The raw materials and work-in-process inventory is not subject to expiration and the shelf life for finished goods inventory is 24 or 36 months from the start of manufacturing of the finished goods. We evaluate for potential excess inventory by analyzing current and future product demand relative to the remaining product shelf life. We build demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. We classify inventory as current on the consolidated balance sheets when we expect inventory to be consumed for commercial use within the next twelve months.

Fair_value_of_financial_instru

Fair value of financial instruments	9 Months Ended
	Sep. 30, 2013
Fair value of financial instruments	'
Fair value of financial instruments	'
	3.              Fair value of financial instruments
	Financial Accounting Standards Board (“FASB”) accounting guidance defines fair value as the price that would be received to sell an asset or paid to transfer a liability (“the exit price”) in an orderly transaction between market participants at the measurement date. The standard outlines a valuation framework and creates a fair value hierarchy in order to increase the consistency and comparability of fair value measurements and the related disclosures. In determining fair value we use quoted prices and observable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of us. The fair value hierarchy is broken down into three levels based on the source of inputs as follows:
	Level 1—Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities.
	Level 2—Valuations based on observable inputs and quoted prices in active markets for similar assets and liabilities.
	Level 3—Valuations based on inputs that are unobservable and models that are significant to the overall fair value measurement.
	Our marketable securities consist of investments in U.S. Treasury notes, other U.S. government agency and non-agency mortgage-backed securities and a certificate of deposit that are classified as available-for-sale.
	At September 30, 2013 and December 31, 2012, our Level 2 mortgage-backed securities are valued using readily available pricing sources which utilize market observable inputs, including the current interest rate and other characteristics for similar types of instruments.
	The following fair value hierarchy table presents information about each major category of our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 (in thousands):
		Fair Value Measurement at Reporting Date Using:
		Quoted Prices in		Significant Other		Significant		Balance as of
		Active Markets for		Observable		Unobservable		September 30, 2013
		Identical Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)
	Cash and cash equivalents	$	272,122	$	—	$	—	$	272,122
	Certificate of deposit	15,024		—		—		15,024
	Mortgage-backed securities	—		4,028		—		4,028
	Total assets	$	287,146	$	4,028	$	—	$	291,174
	The following fair value hierarchy table presents information about each major category of our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 (in thousands):
		Fair Value Measurement at Reporting Date Using:
		Quoted Prices in		Significant Other		Significant		Balance as of
		Active Markets for		Observable		Unobservable		December 31, 2012
		Identical Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)
	Cash and cash equivalents	$	224,057	$	—	$	—	$	224,057
	Mortgage-backed securities	—		4,361		—		4,361
	Total assets	$	224,057	$	4,361	$	—	$	228,418
	The following is a summary of our marketable securities portfolio as of September 30, 2013 and December 31, 2012, respectively.
		Amortized		Net		Net		Estimated Fair
		Cost		Unrealized		Unrealized		Value
				Gains		Losses
		(in thousands)
	September 30, 2013
	Certificate of deposit	$	15,024	$	—	$	—	$	15,024
	Mortgage backed securities	2,020		2,008		—		4,028
		$	17,044	$	2,008	$	—	$	19,052
	December 31, 2012
	Mortgage backed securities	$	2,483	$	1,878	$	—	$	4,361
		$	2,483	$	1,878	$	—	$	4,361
	Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity.

Concentration_of_Credit_Risk

Concentration of Credit Risk	9 Months Ended
	Sep. 30, 2013
Concentration of Credit Risk	'
Concentration of Credit Risk	'
	4.              Concentration of Credit Risk
	In December 2009, we entered into a license, development and commercialization agreement with Eli Lilly and Company (“Lilly”). In November 2009, we entered into a collaboration and license agreement with Novartis. The concentration of credit risk related to our collaborative partners is as follows:
		Percentage of Total				Percentage of Total
		Contract Revenues for the				Contract Revenues for the
		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
	Collaboration Partner A	81	%	81	%	87	%	89	%
	Collaboration Partner B	19	%	19	%	13	%	11	%
	Collaboration Partner A and Collaboration Partner B comprised in the aggregate 30% and 73% of the accounts receivable balance as of September 30, 2013 and December 31, 2012, respectively.
	In November 2011, we began commercialization and distribution of JAKAFI to a limited number of specialty pharmacies. Our product revenues are concentrated in a limited number of specialty pharmacy customers. The concentration of credit risk related to our specialty pharmacy customers is as follows:
		Percentage of Total Net				Percentage of Total Net
		Product Revenues for the				Product Revenues for the
		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
	Customer A	29	%	28	%	29	%	29	%
	Customer B	15	%	20	%	17	%	22	%
	Customer C	12	%	16	%	11	%	16	%
	Customer D	10	%	16	%	11	%	15	%
	We are exposed to risks associated with extending credit to specialty pharmacy customers related to the sale of products. Customer A, Customer B, Customer C and Customer D comprised in the aggregate 48% and 17% of the accounts receivable balance as of September 30, 2013 and December 31, 2012, respectively.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2013
Inventory	'
Inventory	'
	5.              Inventory
	Our inventory balance consists of the following:
		September 30,		December 31,
		2013		2012
		(in thousands)
	Raw materials	$	591	$	591
	Work-in-process	14,357		7,884
	Finished goods	359		278
		15,307		8,753
	Inventories—current	359		278
	Inventories—non-current	$	14,948	$	8,475
	Inventories, stated at the lower of cost or market, consist of raw materials, work in process and finished goods. At September 30, 2013, $0.4 million of inventory was classified as current on the consolidated balance sheets as we expect this inventory to be consumed for commercial use within the next twelve months. At September 30, 2013, $14.9 million of inventory was classified as non-current on the consolidated balance sheets as we did not expect this inventory to be consumed for commercial use within the next twelve months. We obtain a number of inventory components from single source suppliers due to technology, availability, price, quality or other considerations. The loss of a single source supplier, the deterioration of its relationship with a single source supplier, or any unilateral violation of the contractual terms under which we are supplied components by a single source supplier could adversely affect our total revenues and gross margins.
	The raw materials and work-in-process inventory is not subject to expiration and the shelf life for finished goods inventory is 24 or 36 months from the start of manufacturing of the finished goods. We evaluate for potential excess inventory by analyzing current and future product demand relative to the remaining product shelf life. We build demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage.

License_agreements

License agreements	9 Months Ended
	Sep. 30, 2013
License agreements	'
License agreements	'
	6.              License agreements
	Novartis
	In November 2009, we entered into a Collaboration and License Agreement with Novartis. Under the terms of the agreement, Novartis received exclusive development and commercialization rights outside of the United States to our JAK inhibitor ruxolitinib and certain back-up compounds for hematologic and oncology indications, including all hematological malignancies, solid tumors and myeloproliferative diseases. We retained exclusive development and commercialization rights to JAKAFI (ruxolitinib) in the United States and in certain other indications. Novartis also received worldwide exclusive development and commercialization rights to our c-MET inhibitor compound INCB28060 and certain back-up compounds in all indications. We retained options to co-develop and to co-promote INCB28060 in the United States.
	Under this agreement, we received an upfront payment and immediate milestone payment totaling $210.0 million and were initially eligible to receive up to $1.1 billion in milestone payments across multiple indications upon the achievement of pre-specified events, including up to $162.0 million for the achievement of development milestones, up to $450.0 million for the achievement of regulatory milestones and up to $500.0 million for the achievement of commercialization milestones. During the three months ended June 30, 2013, we recognized and received a $25.0 million development milestone payment under this agreement based on the formal initiation by Novartis of a Phase II clinical trial evaluating c-MET inhibitor INCB28060.
	In 2012, we recognized and received a $40.0 million regulatory milestone payment under this agreement for the achievement of a predefined milestone for the European Union regulatory approval of Jakavi. In 2011, we recognized and received a $15.0 million development milestone payment under this agreement for the achievement of a predefined milestone in the Phase I dose-escalation trial for INCB28060 in patients with solid tumors and a $10.0 million regulatory milestone payment for the JAKAFI approval in the United States. We determined the 2013, 2012 and 2011 milestones to be substantive as their achievement required substantive efforts by us and were at risk until the milestones were ultimately achieved. We also are eligible to receive tiered, double-digit royalties ranging from the upper-teens to the mid-twenties on future ruxolitinib net sales outside of the United States. In addition, should Novartis receive reimbursement and pricing approval for ruxolitinib in a specified number of countries, we will be obligated to pay to Novartis tiered royalties in the low single digits on future ruxolitinib net sales within the United States. Each company is responsible for costs relating to the development and commercialization of the JAK inhibitor compound in its respective territories, with costs of collaborative studies shared equally. Novartis is responsible for all costs relating to the development and commercialization of the c-MET inhibitor compound after the initial Phase I clinical trial, which has been completed.
	The Novartis agreement will continue on a program-by-program basis until Novartis has no royalty payment obligations with respect to such program or, if earlier, the termination of the agreement or any program in accordance with the terms of the agreement. Royalties are payable by Novartis on a product-by-product and country-by-country basis until the latest to occur of (1) the expiration of the last valid claim of the licensed patent rights covering the licensed product in the relevant country, (2) the expiration of regulatory exclusivity for the licensed product in such country and (3) a specified period from first commercial sale in such country of the licensed product by Novartis or its affiliates or sublicensees. The agreement may be terminated in its entirety or on a program-by-program basis by Novartis for convenience. The agreement may also be terminated by either party under certain other circumstances, including material breach.
	We determined that there were two deliverables under the agreement: (i) the ex U.S. license for ruxolitinib and (ii) our obligations in connection with our participation on the joint development committee for myelofibrosis and polycythemia vera/ essential thrombocythemia. We concluded that these deliverables should be accounted for as a single unit of accounting and the $150.0 million upfront payment received in December 2009 and the immediate $60.0 million milestone payment received in January 2010 should be recognized on a straight line basis through December 2013 when we estimate we will complete our obligations in connection with our participation on the joint development committee, our estimated performance period under the agreement. We have no further substantive obligations to Novartis after the completion of our obligations in connection with the joint development committee.
	At December 31, 2009, we recorded $10.9 million of reimbursable costs incurred prior to the effective date of the agreement as deferred revenue on the condensed consolidated balance sheet. These costs will be recognized on a straight line basis through December 2013 consistent with the aforementioned upfront and milestone payments. Future reimbursable costs incurred after the effective date of the agreement with Novartis will be recorded net against the related research and development expenses. At September 30, 2013 and December 31, 2012, $1.8 million and $2.1 million, respectively, of reimbursable costs were included in accounts receivable on the condensed consolidated balance sheets. Research and development expenses for the three and nine months ended September 30, 2013 were net of $1.7 million and $3.6 million, respectively, of costs reimbursed by Novartis. Research and development expenses for each of the three and nine months ended September 30, 2012 were net of $2.5 million and $3.0 million, respectively, of costs reimbursed by Novartis.
	Contract revenue under the Novartis agreement was $13.5 million and $65.6 million for the three and nine months ended September 30, 2013, respectively, and included a $25.0 million milestone payment for INCB28060 that was earned in the three months ended June 30, 2013. Contract revenue under the Novartis agreement was $13.5 million and $80.6 million for the three and nine months ended September 30, 2012, respectively, and included a $40.0 million milestone payment for the achievement of a predefined milestone for the European Union regulatory approval of Jakavi that was earned in the three months ended June 30, 2012.
	Lilly
	In December 2009, we entered into a License, Development and Commercialization Agreement with Lilly. Under the terms of the agreement, Lilly received exclusive worldwide development and commercialization rights to our JAK inhibitor baricitinib, and certain back-up compounds for inflammatory and autoimmune diseases. We received an upfront payment of $90.0 million, and were initially eligible to receive up to $665.0 million in substantive milestone payments across multiple indications upon the achievement of pre-specified events, including up to $150.0 million for the achievement of development milestones, up to $365.0 million for the achievement of regulatory milestones and up to $150.0 million for the achievement of commercialization milestones. In 2012, we recognized a $50.0 million development milestone under this agreement for the achievement of a predefined milestone for the initiation of the rheumatoid arthritis Phase III program for baricitinib. In 2010, we recognized and received a $30.0 million development milestone payment based upon the initial three month data in the Phase IIa clinical trial of baricitinib for the treatment of rheumatoid arthritis and a $19.0 million development milestone payment for the Phase IIb clinical trial initiation of baricitinib for the treatment of rheumatoid arthritis. We determined the 2012 and 2010 milestones to be substantive as their achievement required substantive efforts by us and was at risk until the milestones were ultimately achieved. We also could receive tiered, double-digit royalty payments on future global net sales with rates ranging up to 20% if the product is successfully commercialized.
	We retained options to co-develop our JAK inhibitors with Lilly on a compound-by-compound and indication-by-indication basis. Lilly will be responsible for all costs relating to the development and commercialization of the compounds unless we elect to co-develop any compounds or indications. If we elect to co-develop any compounds and/or indications, we would be responsible for funding 30% of the associated future global development costs from the initiation of a Phase IIb trial through regulatory approval. We would receive an incremental royalty rate increase across all tiers resulting in effective royalty rates ranging up to the high twenties on potential future global net sales for compounds and/or indications that we elect to co-develop. We also retained an option to co-promote products in the United States. In July 2010, we elected to co-develop baricitinib with Lilly in rheumatoid arthritis and we are responsible for funding 30% of the associated future global development costs for this indication from the initiation of the Phase IIb trial through regulatory approval. We have retained certain mechanisms to give us cost protection as baricitinib advances in clinical development. We can defer our portion of co-development study costs by indication if they exceed a predetermined level. This deferment would be credited against future milestones or royalties and we would still be eligible for the full incremental royalties related to the co-development option. In addition, even if we have started co-development funding for any indication, we can at any time opt out and stop future co-development cost sharing. If we elect to do this we would still be eligible for our base royalties plus an incremental pro-rated royalty commensurate with our contribution to the total co-development cost for those indications for which we co-funded. The Lilly agreement will continue until Lilly no longer has any royalty payment obligations or, if earlier, the termination of the agreement in accordance with its terms. Royalties are payable by Lilly on a product-by-product and country-by-country basis until the latest to occur of (1) the expiration of the last valid claim of the licensed patent rights covering the licensed product in the relevant country, (2) the expiration of regulatory exclusivity for the licensed product in such country and (3) a specified period from first commercial sale in such country of the licensed product by Lilly or its affiliates or sublicensees. The agreement may be terminated by Lilly for convenience, and may also be terminated under certain other circumstances, including material breach.
	We determined that there were two deliverables under the agreement: (i) the worldwide license and (ii) our obligations in connection with a co-development option. We concluded that these deliverables should be accounted for as a single unit of accounting and the $90.0 million upfront payment should be recognized on a straight line basis as revenue through December 2016, our estimated performance period under the agreement. Reimbursable costs incurred after the effective date with Lilly will be recorded net against the related research and development expenses.
	Contract revenue under the Lilly agreement was $3.2 million and $9.6 million for each of the three and nine months ended September 30, 2013 and 2012, respectively.

Stock_compensation

Stock compensation	9 Months Ended
	Sep. 30, 2013
Stock compensation	'
Stock compensation	'
	7.              Stock compensation
	We recorded $9.5 million and $28.6 million of stock compensation expense in our unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2013, respectively. We recorded $9.5 million and $29.4 million of stock compensation expense in our unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2012, respectively.
	Stock compensation expense included within our condensed consolidated statements of operations included research and development expense of $6.4 million, $19.6 million, $6.4 million and $19.6 million for the three and nine months ended September 30, 2013 and 2012, respectively. Stock compensation expense included within our condensed consolidated statements of operations also included selling, general and administrative expense of $3.1 million, $9.0 million, $3.1 million and $9.8 million for the three and nine months ended September 30, 2013 and 2012, respectively.
	We utilized the Black-Scholes valuation model for estimating the fair value of the stock compensation granted, with the following weighted-average assumptions:
		Employee Stock Options								Employee Stock Purchase Plan
		For the				For the				For the				For the
		Three				Nine				Three				Nine
		Months				Months				Months				Months
		Ended				Ended				Ended				Ended
		September 30,								September 30,
		2013		2012		2013		2012		2013		2012		2013		2012
	Average risk-free interest rates	1.05	%	0.46	%	0.59	%	0.48	%	0.27	%	0.25	%	0.27	%	0.25	%
	Average expected life (in years)	4.34		4.13		4.25		3.87		0.5		0.5		0.5		0.5
	Volatility	47	%	50	%	47	%	57	%	51	%	53	%	51	%	53	%
	Weighted-average fair value (in dollars)	12.18		8.59		7.34		7.84		3.81		3.84		3.81		3.84
	The risk-free interest rate is derived from the U.S. Federal Reserve rate in effect at the time of grant. The expected life calculation is based on the observed and expected time to the exercise of options by our employees based on historical exercise patterns for similar type options. Expected volatility is based on the historical volatility of our common stock over the period commensurate with the expected life of the options. A dividend yield of zero is assumed based on the fact that we have never paid cash dividends and have no present intention to pay cash dividends.
	Based on our historical experience, we have assumed an annualized forfeiture rate of 5% for our options. Under the true-up provisions of the stock based compensation guidance, we will record additional expense if the actual forfeiture rate is lower than we estimated, and will record a recovery of prior expense if the actual forfeiture is higher than we estimated.
	Total compensation cost of options granted but not yet vested, as of September 30, 2013, was $27.5 million, which is expected to be recognized over the vesting period of 3 years.
	The following table summarizes activity under all stock option plans:
		Shares		Number		Weighted
		Available for		Outstanding		Average
		Grant				Exercise
						Price per
						Share
	Balance at December 31, 2012	5,406,277		21,816,611		$	12.05
	Additional authorized	5,200,000		—		—
	Options granted	(5,215,500	)	5,215,500		19.21
	Options exercised	—		(5,524,527	)	9.61
	Options cancelled	441,305		(441,589	)	17.46
	Balance at September 30, 2013	5,832,082		21,065,995		$	14.36
	Exercisable, September 30, 2013	—		12,911,434		$	11.71

Debt

Debt	9 Months Ended
	Sep. 30, 2013
Debt	'
Debt	'
	8.              Debt
	The carrying amount and fair value of our convertible notes are as follows (in thousands):
		September 30, 2013				December 31, 2012
		Carrying		Fair Value		Carrying		Fair Value
		Amount				Amount
	Pfizer convertible subordinated note due 2014	$	—	$	—	$	9,033	$	13,573
	4.75% convertible senior notes due 2015	187,136		955,974		322,043		798,040
		$	187,136	$	955,974	$	331,076	$	811,613
	In May, June and September 2013, we entered into separately negotiated agreements with certain holders of our 4.75% Convertible Senior Notes due 2015 (the “4.75% Senior Notes”) pursuant to which such holders agreed to exchange $180,988,000 in aggregate principal amount of 4.75% Senior Notes for the shares of our common stock into which such 4.75% Senior Notes were convertible, aggregating 20,625,403 shares, and $11.3 million in cash. The net carrying value of the converted 4.75% Senior Notes and related accrued interest was reclassified to additional paid in capital on the condensed consolidated balance sheets upon conversion of the 4.75% Senior Notes and the related cash payment was recorded as debt exchange expense on the condensed consolidated statements of operations.  Also, in August 2013, the holder of the Pfizer convertible subordinated note due 2014 (the “Pfizer Note”) elected to convert the $10.0 million principal amount into 1,025,641 shares of common stock.
	The fair values of the 4.75% Senior Notes are based on quoted prices in an active market and, therefore, these convertible senior notes are classified within Level 1 in the fair value hierarchy. The fair value of the Pfizer Note is based on a fair value model that incorporates both observable and unobservable inputs, including the quoted price of our common stock and an estimated discount rate, and, therefore, the Pfizer Note is classified as Level 3 in the fair value hierarchy.

Net_loss_per_share

Net loss per share	9 Months Ended
	Sep. 30, 2013
Net loss per share	'
Net loss per share	'
	9.              Net loss per share
	The following potential common shares were excluded from the calculations as their effect would be anti-dilutive:
		Nine months ended
		September 30,
		2013	2012
	Stock options	21,065,995	22,165,802
	Common shares issuable upon conversion of 4.75% Senior Notes(1)	24,958,298	45,584,040
	Common shares issuable upon conversion of Pfizer Note due 2013(2)	—	1,461,496
	Common shares issuable upon conversion of Pfizer Note due 2014 (3)	—	1,025,641
	Total potential common shares excluded from diluted net loss per share computation	46,024,293	70,236,979
	(1)         In May, June and September 2013, we entered into separately negotiated agreements with certain holders of the 4.75% Senior Notes to convert $181.0 million principal amount into 20,625,403 shares of common stock.
	(2)         In December 2012, the holder of the Pfizer Note due 2013 elected to convert the $10.0 million principal amount into 1,461,496 shares of common stock.
	(3)         In August 2013, the holder of the Pfizer Note due 2014 elected to convert the $10.0 million principal amount into 1,025,641 shares of common stock.

Grant_Agreement

Grant Agreement	9 Months Ended
	Sep. 30, 2013
Grant Agreement	'
Grant Agreement	'
	10.       Grant Agreement
	In April 2013, the Company entered into a grant agreement with the state of Delaware under which the Company is entitled to receive a grant of up to approximately $11.0 million primarily related to the retention and expansion of its workforce in the state of Delaware. The Company received $5.0 million of the proceeds for this grant in the nine months ended September30, 2013 and expects to receive the remaining proceeds by the end of 2013. The $5.0 million of cash received during the nine months ended September 30, 2013 was recorded within other liabilities on the condensed consolidated balance sheets and is being recognized ratably within interest and other income, net on the condensed consolidated statements of operations over the estimated performance period of the grant.

Lease_Agreement

Lease Agreement	9 Months Ended
	Sep. 30, 2013
Lease Agreement	'
Lease Agreement	'
	11.       Lease Agreement
	In April 2013, the Company entered into a contingent new 15 year facility lease agreement for approximately 190,000 square feet of laboratory and office space in Wilmington, Delaware. The lease agreement was conditioned on a number of contingencies that had to be resolved prior to the lease agreement becoming effective, including the landlord’s ability to design the build-out of the facility based on a targeted construction budget and the landlord’s ability to secure funding for its obligations in connection with the build-out of the facility.
	The lease agreement became effective in October 2013 upon resolution of these contingencies and the Company expects the facility to be available for occupancy in late 2014.  The future minimum lease payments over the 15 year lease term are approximately $80.0 million subject to finalization of the facility build-out budget. The Company expects to account for the lease as a direct financing arrangement whereby over the construction period, the Company will record the full cost of the facility as a capital asset with a corresponding liability, net of approximately $10.0 million of improvements to be paid for by the Company during the construction period. In addition, the Company has posted with the landlord’s financial institution a $15.0 million letter of credit for the facility lease.  This amount will be recorded as restricted cash on the condensed consolidated balance sheets and will be reduced over a period of time during the duration of the lease. The letter of credit could be subject to accelerated reductions if the Company meets certain pre-defined financial targets.

Contingencies

Contingencies	9 Months Ended
	Sep. 30, 2013
Contingencies	'
Contingencies	'
	12.       Contingencies
	In March and April 2013, two lawsuits were filed in the United States District Court for the District of Delaware against the Company, its chief executive officer, its former chief commercial officer, and its chief drug development and medical officer. The complaints each allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of a purported class of purchasers of the Company’s stock between April 26, 2012 and August 1, 2012. In general, the complaints allege that the defendants issued materially false or misleading statements concerning the Company’s business and prospects relating to the commercial launch of JAKAFI. The complaints seek damages in an unspecified amount, equitable relief of an unspecified nature, and costs and expenses of litigation. The Company believes it has meritorious defenses and intends to vigorously defend itself against these lawsuits. The Company is unable to estimate the possible loss or range of loss, if any, at this time.

Summary_of_significant_account1

Summary of significant accounting policies (Policies)	9 Months Ended
	Sep. 30, 2013
Summary of significant accounting policies	'
Revenue Recognition	'
	Revenue Recognition. Revenues are recognized when (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the price is fixed or determinable and (4) collectability is reasonably assured. Revenues are deferred for fees received before earned or until no further obligations exist. We exercise judgment in determining that collectability is reasonably assured or that services have been delivered in accordance with the arrangement. We assess whether the fee is fixed or determinable based on the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. We assess collectability based primarily on the customer’s payment history and on the creditworthiness of the customer.
	Product Revenues
	Our product revenues consist of U.S. sales of JAKAFI and are recognized once we meet all four revenue recognition criteria described above. In November 2011, we began shipping JAKAFI to our specialty pharmacy customers, which in turn dispense JAKAFI to patients in fulfillment of prescriptions. From November 2011 to June 2012, as JAKAFI was a new and novel product, the first approved treatment for intermediate or high-risk myelofibrosis, and the first commercial product for Incyte, we determined we could not reasonably assess potential product returns. As a result of our inability to initially estimate product returns, the price of JAKAFI was not deemed fixed or determinable, and we deferred the recognition of revenues on product shipments of JAKAFI until the product was shipped by our specialty pharmacy customers to patients.
	Based on our actual experience with product returns through the three months ended September 30, 2012, we had the ability to estimate product returns and the price of JAKAFI is now deemed fixed or determinable. As a result, during the three months ended September 30, 2012, we began to recognize revenue for product sales of JAKAFI at the time the product was received by our specialty pharmacy customers.
	We recognize revenues for product received by our specialty pharmacy customers net of allowances for customer credits, including estimated rebates, chargebacks, discounts, returns, distribution service fees, patient assistance programs, and Medicare Part D coverage gap reimbursements. Product shipping and handling costs are included in cost of product revenues.
	Customer Credits: Our specialty pharmacy customers are offered various forms of consideration, including allowances, service fees and prompt payment discounts. We expect our specialty pharmacy customers will earn prompt payment discounts and, therefore, we deduct the full amount of these discounts from total product sales when revenues are recognized. Service fees are also deducted from total product sales as they are earned.
	Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program. Rebate amounts are based upon contractual agreements or legal requirements with public sector (e.g. Medicaid) benefit providers. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements or legal requirements with public sector benefit providers. The allowance for rebates is based on statutory discount rates and expected utilization. Our estimates for expected utilization of rebates are based on data received from our specialty pharmacy customers. Rebates are generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters’ unpaid rebates. If actual future rebates vary from estimates, we may need to adjust prior period accruals, which would affect revenue in the period of adjustment.
	Chargebacks: Chargebacks are discounts that occur when contracted customers purchase directly from a specialty pharmacy, or an intermediary distributor. Contracted customers, which currently consist primarily of Public Health Service institutions, non-profit clinics, and Federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The specialty pharmacy or distributor, in turn, charges back to us the difference between the price initially paid by the specialty pharmacy or distributor and the discounted price paid to the specialty pharmacy or distributor by the customer. The allowance for chargebacks is based on known sales to contracted customers.
	Medicare Part D Coverage Gap: Medicare Part D prescription drug benefit mandates manufacturers to fund 50% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients. Our estimates for the expected Medicare Part D coverage gap are based on historical invoices received and in part from data received from our specialty pharmacy customers. Funding of the coverage gap is generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for known prior quarters. If actual future funding varies from estimates, we may need to adjust prior period accruals, which would affect revenue in the period of adjustment.
	Co-payment assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. We accrue a liability for co-payment assistance based on actual program participation and estimates of program redemption using data provided by third- party administrators.
	Product Royalty Revenues
	Royalty revenues on commercial sales for ruxolitinib (marketed as JAKAVI® outside the United States) by Novartis Pharmaceutical International Ltd. (“Novartis”) are based on net sales of licensed products in licensed territories as provided by Novartis. We recognize royalty revenues in the period the sales occur.
	Contract and License Revenues
	Under agreements involving multiple deliverables, services and/or rights to use assets that we entered into prior to January 1, 2011, the multiple elements are divided into separate units of accounting when certain criteria are met, including whether the delivered items have stand-alone value to the customer and whether there is objective and reliable evidence of the fair value of the undelivered items. When separate units of accounting exist, consideration is allocated among the separate elements based on their respective fair values. The determination of fair value of each element is based on objective evidence from historical sales of the individual elements by us to other customers. If such evidence of fair value for each undelivered element of the arrangement does not exist, all revenue from the arrangement is deferred until such time that evidence of fair value for each undelivered element does exist or until all elements of the arrangement are delivered. When elements are specifically tied to a separate earnings process, revenue is recognized when the specific performance obligation tied to the element is completed. When revenues for an element are not specifically tied to a separate earnings process, they are recognized ratably over the term of the agreement. We assess whether a substantive milestone exists at the inception of our agreements. For all milestones within our arrangements that are considered substantive, we recognize revenue upon the achievement of the associated milestone. If a milestone is not considered substantive, we would recognize the applicable milestone payment over the remaining period of performance under the arrangement. Further information about our collaborative arrangements can be found below in Note 6, License Agreements. As of September 30, 2013, all remaining potential milestones under our collaborative arrangements are considered substantive.
	On January 1, 2011, updated guidance on the recognition of revenues for agreements with multiple deliverables became effective and applies to any agreements we may enter into on or after January 1, 2011. This updated guidance (i) relates to whether multiple deliverables exist, how the deliverables in a revenue arrangement should be separated and how the consideration should be allocated; (ii) requires companies to allocate revenues in an arrangement using estimated selling prices of deliverables if a vendor does not have vendor-specific objective evidence or third-party evidence of selling price; and (iii) eliminates the use of the residual method and requires companies to allocate revenues using the relative selling price method. During three and nine months ended September 30, 2013, we did not enter into any agreements that are subject to this updated guidance. If we enter into an agreement with multiple deliverables after January 1, 2011 or amend existing agreements, this updated guidance could have a material effect on our financial statements.
Inventory	'
	Inventory
	Inventories are determined at the lower of cost or market value with cost determined under the specific identification method and may consist of raw materials, work in process and finished goods. We began capitalizing inventory in mid-November 2011 once the U.S. Food and Drug Administration (“FDA”) approved JAKAFI as the related costs were expected to be recoverable through the commercialization of the product. Costs incurred prior to approval of JAKAFI have been recorded as research and development expense in our statements of operations. As a result, inventory balances and cost of product revenue for the next several quarters will reflect a lower average per unit cost of materials.
	The raw materials and work-in-process inventory is not subject to expiration and the shelf life for finished goods inventory is 24 or 36 months from the start of manufacturing of the finished goods. We evaluate for potential excess inventory by analyzing current and future product demand relative to the remaining product shelf life. We build demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. We classify inventory as current on the consolidated balance sheets when we expect inventory to be consumed for commercial use within the next twelve months.

Fair_value_of_financial_instru1

Fair value of financial instruments (Tables)	9 Months Ended
	Sep. 30, 2013
Fair value of financial instruments	'
Schedule of fair value of assets and liabilities measured on recurring basis	'
	The following fair value hierarchy table presents information about each major category of our financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2013 (in thousands):
		Fair Value Measurement at Reporting Date Using:
		Quoted Prices in		Significant Other		Significant		Balance as of
		Active Markets for		Observable		Unobservable		September 30, 2013
		Identical Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)
	Cash and cash equivalents	$	272,122	$	—	$	—	$	272,122
	Certificate of deposit	15,024		—		—		15,024
	Mortgage-backed securities	—		4,028		—		4,028
	Total assets	$	287,146	$	4,028	$	—	$	291,174
	The following fair value hierarchy table presents information about each major category of our financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 (in thousands):
		Fair Value Measurement at Reporting Date Using:
		Quoted Prices in		Significant Other		Significant		Balance as of
		Active Markets for		Observable		Unobservable		December 31, 2012
		Identical Assets		Inputs		Inputs
		(Level 1)		(Level 2)		(Level 3)
	Cash and cash equivalents	$	224,057	$	—	$	—	$	224,057
	Mortgage-backed securities	—		4,361		—		4,361
	Total assets	$	224,057	$	4,361	$	—	$	228,418
Summary of marketable securities portfolio	'
		Amortized		Net		Net		Estimated Fair
		Cost		Unrealized		Unrealized		Value
				Gains		Losses
		(in thousands)
	September 30, 2013
	Certificate of deposit	$	15,024	$	—	$	—	$	15,024
	Mortgage backed securities	2,020		2,008		—		4,028
		$	17,044	$	2,008	$	—	$	19,052
	December 31, 2012
	Mortgage backed securities	$	2,483	$	1,878	$	—	$	4,361
		$	2,483	$	1,878	$	—	$	4,361

Concentration_of_Credit_Risk_T

Concentration of Credit Risk (Tables)	9 Months Ended
	Sep. 30, 2013
Concentration of Credit Risk	'
Schedule of concentration of credit risk related to collaborative partners	'
		Percentage of Total				Percentage of Total
		Contract Revenues for the				Contract Revenues for the
		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
	Collaboration Partner A	81	%	81	%	87	%	89	%
	Collaboration Partner B	19	%	19	%	13	%	11	%
Schedule of concentration of credit risk related to specialty pharmacy customers	'
		Percentage of Total Net				Percentage of Total Net
		Product Revenues for the				Product Revenues for the
		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
	Customer A	29	%	28	%	29	%	29	%
	Customer B	15	%	20	%	17	%	22	%
	Customer C	12	%	16	%	11	%	16	%
	Customer D	10	%	16	%	11	%	15	%

Inventory_Tables

Inventory (Tables)	9 Months Ended
	Sep. 30, 2013
Inventory	'
Schedule of inventory	'
		September 30,		December 31,
		2013		2012
		(in thousands)
	Raw materials	$	591	$	591
	Work-in-process	14,357		7,884
	Finished goods	359		278
		15,307		8,753
	Inventories—current	359		278
	Inventories—non-current	$	14,948	$	8,475

Stock_compensation_Tables

Stock compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Stock compensation	'
Schedule of valuation assumptions used for valuation of fair value of stock compensation granted	'
		Employee Stock Options								Employee Stock Purchase Plan
		For the				For the				For the				For the
		Three				Nine				Three				Nine
		Months				Months				Months				Months
		Ended				Ended				Ended				Ended
		September 30,								September 30,
		2013		2012		2013		2012		2013		2012		2013		2012
	Average risk-free interest rates	1.05	%	0.46	%	0.59	%	0.48	%	0.27	%	0.25	%	0.27	%	0.25	%
	Average expected life (in years)	4.34		4.13		4.25		3.87		0.5		0.5		0.5		0.5
	Volatility	47	%	50	%	47	%	57	%	51	%	53	%	51	%	53	%
	Weighted-average fair value (in dollars)	12.18		8.59		7.34		7.84		3.81		3.84		3.81		3.84
Schedule of activity summarized under all stock option plans	'
		Shares		Number		Weighted
		Available for		Outstanding		Average
		Grant				Exercise
						Price per
						Share
	Balance at December 31, 2012	5,406,277		21,816,611		$	12.05
	Additional authorized	5,200,000		—		—
	Options granted	(5,215,500	)	5,215,500		19.21
	Options exercised	—		(5,524,527	)	9.61
	Options cancelled	441,305		(441,589	)	17.46
	Balance at September 30, 2013	5,832,082		21,065,995		$	14.36
	Exercisable, September 30, 2013	—		12,911,434		$	11.71

Debt_Tables

Debt (Tables)	9 Months Ended
	Sep. 30, 2013
Debt	'
Schedule of carrying amount and fair value of Convertible Notes	'
	The carrying amount and fair value of our convertible notes are as follows (in thousands):
		September 30, 2013				December 31, 2012
		Carrying		Fair Value		Carrying		Fair Value
		Amount				Amount
	Pfizer convertible subordinated note due 2014	$	—	$	—	$	9,033	$	13,573
	4.75% convertible senior notes due 2015	187,136		955,974		322,043		798,040
		$	187,136	$	955,974	$	331,076	$	811,613

Net_loss_per_share_Tables

Net loss per share (Tables)	9 Months Ended
	Sep. 30, 2013
Net loss per share	'
Schedule of antidilutive securities excluded from the computation of earnings per share	'
		Nine months ended
		September 30,
		2013	2012
	Stock options	21,065,995	22,165,802
	Common shares issuable upon conversion of 4.75% Senior Notes(1)	24,958,298	45,584,040
	Common shares issuable upon conversion of Pfizer Note due 2013(2)	—	1,461,496
	Common shares issuable upon conversion of Pfizer Note due 2014 (3)	—	1,025,641
	Total potential common shares excluded from diluted net loss per share computation	46,024,293	70,236,979
	(1)         In May, June and September 2013, we entered into separately negotiated agreements with certain holders of the 4.75% Senior Notes to convert $181.0 million principal amount into 20,625,403 shares of common stock.
	(2)         In December 2012, the holder of the Pfizer Note due 2013 elected to convert the $10.0 million principal amount into 1,461,496 shares of common stock.
	(3)         In August 2013, the holder of the Pfizer Note due 2014 elected to convert the $10.0 million principal amount into 1,025,641 shares of common stock.

Summary_of_significant_account2

Summary of significant accounting policies (Details)	9 Months Ended
	Sep. 30, 2013
Revenue Recognition	'
Percentage of Medicare Part D insurance coverage gap mandate to be funded by manufacturers	50.00%
Inventory	'
Shelf life for finished goods inventory, minimum	'24 months
Shelf life for finished goods inventory, maximum	'36 months

Fair_value_of_financial_instru2

Fair value of financial instruments (Details) (Fair value measured on a recurring basis, USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Fair value measurement at reporting date using: Quoted prices in active markets for identical assets (Level 1)	'	'
Fair value of financial instruments	'	'
Cash and cash equivalents	$272,122	$224,057
Certificate of deposit	15,024	'
Total assets	287,146	224,057
Fair value measurement at reporting date using: Significant other observable inputs (Level 2)	'	'
Fair value of financial instruments	'	'
Mortgage backed securities	4,028	4,361
Total assets	4,028	4,361
Fair Value	'	'
Fair value of financial instruments	'	'
Cash and cash equivalents	272,122	224,057
Certificate of deposit	15,024	'
Mortgage backed securities	4,028	4,361
Total assets	$291,174	$228,418

Fair_value_of_financial_instru3

Fair value of financial instruments (Details 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Summary of marketable security portfolio	'	'
Amortized Cost	$17,044	$2,483
Net Unrealized Gains	2,008	1,878
Estimated Fair Value	19,052	4,361
Certificate of deposit	'	'
Summary of marketable security portfolio	'	'
Amortized Cost	15,024	'
Estimated Fair Value	15,024	'
Mortgage backed securities	'	'
Summary of marketable security portfolio	'	'
Amortized Cost	2,020	2,483
Net Unrealized Gains	2,008	1,878
Estimated Fair Value	$4,028	$4,361

Concentration_of_Credit_Risk_D

Concentration of Credit Risk (Details)

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Total Contract Revenues

Total Contract Revenues

Total Contract Revenues

Total Contract Revenues

Total Contract Revenues

Total Contract Revenues

Total Contract Revenues

Total Contract Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Total Net Product Revenues

Accounts receivable

Accounts receivable

Accounts receivable

Accounts receivable

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Customer Concentration

Credit Concentration

Credit Concentration

Credit Concentration

Credit Concentration

Collaboration Partner A

Collaboration Partner A

Collaboration Partner A

Collaboration Partner A

Collaboration Partner B

Collaboration Partner B

Collaboration Partner B

Collaboration Partner B

Customer A

Customer A

Customer A

Customer A

Customer B

Customer B

Customer B

Customer B

Customer C

Customer C

Customer C

Customer C

Customer D

Customer D

Customer D

Customer D

Collaboration Partner A and Collaboration Partner B

Collaboration Partner A and Collaboration Partner B

Customer A, B, C and D

Customer A, B, C and D

Concentration of risk

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Percentage of concentration risk

81.00%

81.00%

87.00%

89.00%

19.00%

19.00%

13.00%

11.00%

29.00%

28.00%

29.00%

29.00%

15.00%

20.00%

17.00%

22.00%

12.00%

16.00%

11.00%

16.00%

10.00%

16.00%

11.00%

15.00%

30.00%

73.00%

48.00%

17.00%

Inventory_Details

Inventory (Details) (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Dec. 31, 2012
Inventory	'	'
Raw materials	$591	$591
Work-in-process	14,357	7,884
Finished goods	359	278
Total inventories	15,307	8,753
Inventories - current	359	278
Inventories - non -current	$14,948	$8,475
Shelf life for finished goods inventory, minimum	'24 months	'
Shelf life for finished goods inventory, maximum	'36 months	'

License_agreements_Details

License agreements (Details) (USD $)

3 Months Ended

9 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Jan. 31, 2010

Dec. 31, 2009

Nov. 30, 2009

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Nov. 30, 2009

Nov. 30, 2009

Nov. 30, 2009

Nov. 30, 2009

Jun. 30, 2013

Dec. 31, 2011

Sep. 30, 2012

Dec. 31, 2012

Dec. 31, 2011

Jul. 31, 2010

Dec. 31, 2009

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2009

Dec. 31, 2010

Dec. 31, 2010

Dec. 31, 2012

Dec. 31, 2009

Dec. 31, 2009

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

Collaboration and License Agreement with Novartis

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

License, Development and Commercialization Agreement with Lilly

deliverable

Pre-specified events

Development milestones

Regulatory milestones

Commercialized milestones

LY3009104(INCB28060)

LY3009104(INCB28060)

JAKAFI (ruxolitinib)

JAKAFI (ruxolitinib)

JAKAFI (ruxolitinib)

deliverable

Maximum

Pre-specified events

Development milestones

Development milestones

Development milestones

Development milestones

Regulatory milestones

Commercialized milestones

Maximum

Maximum

Maximum

Maximum

Development milestones

Development milestones

Regulatory milestones

Regulatory milestones

Regulatory milestones

Maximum

Maximum

Phase IIa

Phase IIb

Phase III

Maximum

Maximum

License agreements

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Upfront and immediate milestone payment to be received under license agreement

'

'

'

'

'

'

$210,000,000

'

'

'

'

'

$1,100,000,000

$162,000,000

$450,000,000

$500,000,000

'

'

'

'

'

'

'

'

'

'

'

'

$665,000,000

$150,000,000

'

'

'

$365,000,000

$150,000,000

Amount recognized and received for the achievement of a predefined milestone

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

25,000,000

15,000,000

40,000,000

40,000,000

10,000,000

'

'

'

'

'

'

'

'

'

30,000,000

19,000,000

50,000,000

'

'

Royalty payment obligations

'

'

'

'

'

'

'

0

'

0

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of deliverables under license agreement

'

'

'

'

'

'

2

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

2

'

'

'

'

'

'

'

'

'

'

'

'

Upfront payment received under license agreement

'

'

'

'

'

150,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

90,000,000

'

'

'

'

'

'

'

'

'

'

'

'

Immediate milestone payment received under license agreement

'

'

'

'

60,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Reimbursable costs recorded as deferred revenue

'

'

'

'

'

10,900,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Reimbursable costs included in accounts receivable

'

'

'

'

'

'

'

1,800,000

'

1,800,000

'

2,100,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Research and development expenses reimbursed

'

'

'

'

'

'

'

1,700,000

2,500,000

3,600,000

3,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Contract revenues

$16,737,000

$16,737,000

$75,211,000

$90,211,000

'

'

'

$13,500,000

$13,500,000

$65,600,000

$80,600,000

'

'

'

'

'

'

'

'

'

'

'

'

$3,200,000

$3,200,000

$9,600,000

$9,600,000

'

'

'

'

'

'

'

'

Range of royalty payments on future global net sales, upper range (as a percent)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

20.00%

'

'

'

'

'

'

'

Associated future global development costs from the initiation of a Phase IIb trial, if elected to co-develop, percentage

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

30.00%

30.00%

'

'

'

'

'

'

'

'

'

'

'

'

Stock_compensation_Details

Stock compensation (Details) (USD $)	3 Months Ended		9 Months Ended
In Millions, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock compensation	'	'	'	'
Stock compensation expense	$9.50	$9.50	$28.60	$29.40
Weighted-average fair value assumptions	'	'	'	'
Valuation method	'	'	'Black-Scholes valuation model	'
Research and development expense	'	'	'	'
Stock compensation	'	'	'	'
Stock compensation expense	6.4	6.4	19.6	19.6
Selling, general and administrative expense	'	'	'	'
Stock compensation	'	'	'	'
Stock compensation expense	3.1	3.1	9	9.8
Employee Stock Purchase Plan	'	'	'	'
Weighted-average fair value assumptions	'	'	'	'
Average risk-free interest rates (as a percent)	0.27%	0.25%	0.27%	0.25%
Average expected life	'6 months	'6 months	'6 months	'6 months
Volatility (as a percent)	51.00%	53.00%	51.00%	53.00%
Weighted-average fair value (in dollars per share)	$3.81	$3.84	$3.81	$3.84
Employee Stock Options	'	'	'	'
Weighted-average fair value assumptions	'	'	'	'
Average risk-free interest rates (as a percent)	1.05%	0.46%	0.59%	0.48%
Average expected life	'4 years 4 months 2 days	'4 years 1 month 17 days	'4 years 3 months	'3 years 10 months 13 days
Volatility (as a percent)	47.00%	50.00%	47.00%	57.00%
Weighted-average fair value (in dollars per share)	$12.18	$8.59	$7.34	$7.84
Dividend yield (as a percent)	'	'	0.00%	'
Assumed annualized forfeiture rate (as a percent)	'	'	5.00%	'
Unrecognized compensation	'	'	'	'
Unrecognized compensation cost for nonvested option (in dollars)	$27.50	'	$27.50	'
Vesting period of recognition of the unrecognized compensation cost of nonvested awards	'	'	'3 years	'

Stock_compensation_Details_2

Stock compensation (Details 2) (Stock options, USD $)	9 Months Ended
	Sep. 30, 2013
Stock options	'
Shares Available For Grant	'
Outstanding at the beginning of the period (in shares)	5,406,277
Additional authorized (in shares)	5,200,000
Options granted (in shares)	-5,215,500
Options cancelled (in shares)	441,305
Outstanding at the end of the period (in shares)	5,832,082
Number of Shares Outstanding	'
Outstanding at the beginning of the period (in shares)	21,816,611
Options granted (in shares)	5,215,500
Options exercised (in shares)	-5,524,527
Options cancelled (in shares)	-441,589
Outstanding at the end of the period (in shares)	21,065,995
Exercisable at the end of period (in shares)	12,911,434
Shares Subject to Outstanding Options, Weighted Average Exercise Price	'
Outstanding at the beginning of the period (in dollars per share)	$12.05
Options granted (in dollars per share)	$19.21
Options exercised (in dollars per share)	$9.61
Options cancelled (in dollars per share)	$17.46
Outstanding at the end of the period (in dollars per share)	$14.36
Exercisable at the end of the period (in dollars per share)	$11.71

Debt_Details

Debt (Details) (USD $)

9 Months Ended

5 Months Ended

1 Months Ended

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Dec. 31, 2012

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Sep. 30, 2013

Dec. 31, 2012

Aug. 31, 2013

Carrying Amount

Carrying Amount

Fair Value

Fair Value

Pfizer convertible subordinated note due 2014

Pfizer convertible subordinated note due 2014

4.75% convertible senior notes due 2015

4.75% convertible senior notes due 2015

4.75% convertible senior notes due 2015

4.75% convertible senior notes due 2015

4.75% convertible senior notes due 2015

4.75% convertible senior notes due 2015

Pfizer convertible subordinated note due 2013

Carrying Amount

Fair Value

Carrying Amount

Carrying Amount

Fair Value

Fair Value

Convertible Notes

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Interest rate of debt (as a percent)

'

'

'

'

'

'

'

'

4.75%

4.75%

'

'

'

'

'

Convertible subordinated notes

'

$9,033,000

'

'

'

'

$9,033,000

$13,573,000

'

'

'

'

'

'

'

Convertible senior notes

187,136,000

322,043,000

'

'

'

'

'

'

'

'

187,136,000

322,043,000

955,974,000

798,040,000

'

Long-term debt, noncurrent

'

'

187,136,000

331,076,000

955,974,000

811,613,000

'

'

'

'

'

'

'

'

'

Aggregate principal amount of notes that can be converted into common stock

'

'

'

'

'

'

'

'

180,988,000

'

'

'

'

'

10,000,000

Common stock issued in conversion of notes (in shares)

'

'

'

'

'

'

'

'

20,625,403

'

'

'

'

'

1,025,641

Cash used to fund redemption of notes

$11,262,000

'

'

'

'

'

'

'

$11,300,000

'

'

'

'

'

'

Net_loss_per_share_Details

Net loss per share (Details) (USD $)	9 Months Ended				5 Months Ended	9 Months Ended		1 Months Ended	9 Months Ended	1 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012	Sep. 30, 2012	Aug. 31, 2013	Sep. 30, 2012
			Stock options	Stock options	4.75% Senior Notes	4.75% Senior Notes	4.75% Senior Notes	Pfizer Note due 2013	Pfizer Note due 2013	Pfizer Note due 2014	Pfizer Note due 2014
Anti-dilutive securities	'	'	'	'	'	'	'	'	'	'	'
Interest rate of debt (as a percent)	'	'	'	'	4.75%	4.75%	4.75%	'	'	'	'
Potential common shares excluded from diluted net loss per share computation	46,024,293	70,236,979	21,065,995	22,165,802	'	24,958,298	45,584,040	'	1,461,496	'	1,025,641
Aggregate principal amount of notes to be converted	'	'	'	'	$181,000,000	'	'	$10,000,000	'	$10,000,000	'
Common stock issued in conversion of notes (in shares)	'	'	'	'	20,625,403	'	'	1,461,496	'	1,025,641	'

Grant_Agreement_Details

Grant Agreement (Details) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013	Apr. 30, 2013
Grant Agreement	'	'
Maximum grant receivable related to retention and expansion of workforce	'	$11
Proceeds from grant related to retention and expansion of workforce	$5	'

Lease_Agreement_Details

Lease Agreement (Details) (USD $)	1 Months Ended	9 Months Ended
In Millions, unless otherwise specified	Apr. 30, 2013	Sep. 30, 2013
	sqft
Lease Agreement	'	'
Term of lease	'15 years	'
Area of laboratory and office building on lease (in square feet)	190,000	'
Minimum lease payments over the lease term	'	$80
Improvements cost payable under direct financing arrangement	'	10
Letter of credit for posted for lease facility	'	$15

Contingencies_Details

Contingencies (Details)	2 Months Ended
	Apr. 30, 2013
	item
Contingencies	'
Number of lawsuits filed	2