Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 07, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'scln | ' |
Entity Registrant Name | 'SCICLONE PHARMACEUTICALS INC | ' |
Entity Central Index Key | '0000880771 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 53,127,501 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $89,082 | $84,228 |
Accounts receivable, net of allowance of $2,177 and $1,169 as of September 30, 2013 and December 31, 2012, respectively | 35,401 | 38,109 |
Inventories | 9,850 | 10,424 |
Restricted cash and investments | 75 | 2,759 |
Prepaid expenses and other current assets | 1,614 | 1,809 |
Total current assets | 136,022 | 137,329 |
Property and equipment, net | 866 | 1,377 |
Deferred tax assets | 368 | 369 |
Goodwill | 34,992 | 34,313 |
Other assets | 589 | 683 |
Total assets | 172,837 | 174,071 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable | 3,957 | 7,787 |
Accrued and other current liabilities | 20,569 | 21,427 |
Deferred tax liabilities | 382 | 153 |
Short-term borrowing on loan facility | ' | 1,445 |
Total current liabilities | 24,908 | 30,812 |
Other long-term liabilities | 5 | 237 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock; $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding | ' | ' |
Common stock; $0.001 par value; 100,000,000 shares authorized; 52,907,611 and 54,484,053 shares issued and outstanding as of September 30, 2013 and December 31, 2012, respectively | 53 | 54 |
Additional paid-in capital | 277,445 | 274,387 |
Accumulated other comprehensive income | 3,745 | 2,988 |
Accumulated deficit | -133,319 | -134,407 |
Total stockholders' equity | 147,924 | 143,022 |
Total liabilities and stockholders' equity | $172,837 | $174,071 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets [Abstract] | ' | ' |
Allowance for accounts | $2,177 | $1,169 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 52,907,611 | 54,484,053 |
Common stock, shares outstanding | 52,907,611 | 54,484,053 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Net revenues: | ' | ' | ' | ' |
Product sales, net | $25,273 | $32,137 | $67,489 | $98,584 |
Promotion services | 9,953 | 8,556 | 26,835 | 24,546 |
Total net revenues | 35,226 | 40,693 | 94,324 | 123,130 |
Operating expenses: | ' | ' | ' | ' |
Cost of product sales | 3,808 | 5,474 | 11,631 | 16,670 |
Sales and marketing | 16,498 | 17,063 | 41,966 | 52,207 |
Amortization of acquired intangible assets, related to sales and marketing | ' | 879 | ' | 2,645 |
Research and development | 550 | 864 | 6,321 | 5,750 |
General and administrative | 8,238 | 5,673 | 24,792 | 14,089 |
Intangible asset impairment | ' | 42,728 | ' | 42,728 |
Contingent consideration (Note 3) | ' | -12,773 | ' | -14,860 |
Total operating expenses | 29,094 | 59,908 | 84,710 | 119,229 |
Income (loss) from operations | 6,132 | -19,215 | 9,614 | 3,901 |
Non-operating income (expense): | ' | ' | ' | ' |
Interest and investment income | 31 | 28 | 62 | 73 |
Interest and investment expense | -13 | -57 | -95 | -167 |
Other income (expense), net | 2,711 | -7 | 2,775 | -22 |
Income (loss) before provision for income tax | 8,861 | -19,251 | 12,356 | 3,785 |
Provision (benefit) for income tax | 153 | -6,090 | 1,428 | -3,947 |
Net income (loss) | $8,708 | ($13,161) | $10,928 | $7,732 |
Basic net income (loss) per share | $0.16 | ($0.23) | $0.20 | $0.14 |
Diluted net income (loss) per share | $0.16 | ($0.23) | $0.20 | $0.13 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Comprehensive Income (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 |
Condendsed Consolidated Statements Of Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' |
Net income (loss) | $8,708 | ($13,161) | $10,928 | $7,732 |
Available-for-sale securities: | ' | ' | ' | ' |
Unrealized gain and foreign currency translation on foreign currency denominated available-for-sale securities | ' | 9 | ' | 9 |
Reclassification adjustment for losses included in net income | 77 | ' | 71 | ' |
Net change | 77 | 9 | 71 | 9 |
Foreign currency translation | 432 | 695 | 686 | 341 |
Total other comprehensive income | 509 | 704 | 757 | 350 |
Total comprehensive income (loss) | $9,217 | ($12,457) | $11,685 | $8,082 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Operating activities: | ' | ' |
Net income (loss) | $10,928 | $7,732 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Non-cash expense related to stock-based compensation | 3,208 | 3,199 |
Non-cash escrow share settlement | -1,865 | ' |
Provision for losses on accounts receivable | 1,046 | ' |
Depreciation and amortization | 645 | 3,246 |
Intangible asset impairment | ' | 42,728 |
Loss on maturity of available-for-sale investments | 75 | ' |
Loss on disposal of fixed assets | 14 | ' |
Change in fair value of contingent consideration | ' | -14,860 |
Deferred income taxes | 219 | -7,109 |
Other long-term liabilities | -233 | -199 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable, net | 1,779 | 3,032 |
Inventories | 668 | 3,729 |
Prepaid expenses and other assets | 343 | 565 |
Accounts payable | -3,874 | -3,703 |
Accrued and other current liabilities | -1,112 | 2,592 |
Net cash provided by operating activities | 11,841 | 40,952 |
Investing activities: | ' | ' |
Proceeds from the maturity of available-for-sale investment | 379 | ' |
Purchases of property and equipment | -137 | -1,036 |
Net cash provided by (used in) investing activities | 242 | -1,036 |
Financing activities: | ' | ' |
Repurchase of common stock including commissions | -9,842 | -18,465 |
Repayment of credit facility | -2,027 | -2,500 |
Decrease (increase) in restricted cash related to loan facility | 2,300 | -2,300 |
Borrowing on short-term loan | 567 | ' |
Proceeds from issuances of common stock | 1,648 | 3,250 |
Net cash used in financing activities | -7,354 | -20,015 |
Effect of exchange rate changes on cash and cash equivalents | 125 | -12 |
Net increase in cash and cash equivalents | 4,854 | 19,889 |
Cash and cash equivalents, beginning of period | 84,228 | 66,654 |
Cash and cash equivalents, end of period | $89,082 | $86,543 |
Basis_Of_Presentation
Basis Of Presentation | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Basis Of Presentation [Abstract] | ' | |||||||||||
Basis Of Presentation | ' | |||||||||||
1.Basis of Presentation | ||||||||||||
The accompanying unaudited condensed consolidated financial statements of SciClone Pharmaceuticals, Inc. (“SciClone” or the “Company”) have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) consistent with those applied in, and should be read in conjunction with, the audited consolidated financial statements and the notes thereto for the year ended December 31, 2012 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission (“SEC”). The Company prepared the unaudited condensed consolidated financial statements following the requirements of the SEC for interim reporting. As permitted under those rules, certain footnotes or other information that are normally required by GAAP can be condensed or omitted. | ||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | ||||||||||||
The interim financial information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented and are not necessarily indicative of results for subsequent interim periods or for the full year. The unaudited condensed consolidated balance sheet data as of December 31, 2012 is derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates. | ||||||||||||
Customer Concentration | ||||||||||||
In China, pharmaceutical products are imported and distributed through a tiered method of distribution. For the Company’s proprietary product ZADAXIN®, the Company manufactures its product using its US and European contract manufacturers, and it generates its product sales revenue through sales of ZADAXIN products to Sinopharm Lingyun Biopharmaceutical (Shanghai) Co. Ltd. (“Sinopharm”). Sinopharm and its affiliates act as an importer, and also as the top “tier” of the distribution system (“Tier 1”) in China. The Company’s ZADAXIN sales occur when the importer purchases product from the Company, without any right of return except for damaged product or quality control issues and after passage of title and risk of loss are transferred to Sinopharm at the time of shipment. After the Company’s sale, Sinopharm clears products through China import customs, sells directly to large hospitals and holds additional product it has purchased in inventory for sale to the next tier in the distribution system. The second-tier distributors are responsible for the further sale and distribution of the products they purchase from the importer, either through sales of product directly to the retail level (hospitals and pharmacies), or to third-tier local or regional distributors who, in turn, sell products to hospitals and pharmacies. The Company’s other product sales revenues result from the sale of the Company’s in-licensed products to importing agents and distributors. | ||||||||||||
Promotion services revenues result from fees received for exclusively promoting products for certain pharmaceutical partners. These importing agents, distributors and partners are the Company’s customers. Customers that exceed 10% of the Company’s total net revenue were as follows: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Customer A | 68% | 56% | 68% | 56% | ||||||||
Customer B | 26% | 20% | 26% | 19% | ||||||||
Customer C | — | 13% | — | 16% | ||||||||
As of September 30, 2013, approximately $35.6 million, or 95%, of the Company's accounts receivable were attributable to three customers in China. The Company generally does not require collateral from its customers. | ||||||||||||
Accounts Receivable | ||||||||||||
Receivable Reserve. The Company records a receivable reserve based upon a specific review of its overdue invoices. The Company’s estimate for a reserve is determined after considering its existing contractual payment terms, payment patterns of its customers and individual customer circumstances, the age of any outstanding receivables and its current customer relationships. As of September 30, 2013, the Company recorded a receivable reserve of approximately $2.1 million related to gross accounts receivable of $4.1 million involving two customers who are part of the same affiliated group. As of December 31, 2012, the Company recorded a receivable reserve of approximately $1.0 million related to gross accounts receivable from one customer of $3.5 million. The Company increased the accounts receivable reserve as of September 30, 2013 as a result of continual negotiations that indicate the accounts receivable balance may be only partially recoverable. The receivable reserve reflects the Company’s best estimate of the ultimate collection, though actual collections may vary and the Company continues to pursue the full amount of the accounts receivables. | ||||||||||||
Reserve for Product Returns. The Company maintains a reserve for product returns based on estimates of the amount of product to be returned by its customers which may result from expired product or for price reductions on the related sales and is based on historical patterns, analysis of market demand and/or a percentage of sales based on industry trends, and management’s evaluation of specific factors that may increase the risk of product returns. Importing agents or distributors do not have contractual rights of return except under limited terms regarding product quality. However, the Company is expected to replace products that have expired or are deemed to be damaged or defective when delivered. The calculation of the product returns reserve requires estimates and involves a high degree of subjectivity and judgment. As a result of the uncertainties involved in estimating the product returns reserve, there is a possibility that materially different amounts could be reported under different conditions or using different assumptions. As of September 30, 2013 and December 31, 2012, the Company had estimated a product returns reserve of $0 and $0.1 million, respectively, on its consolidated balance sheets related to sales of oncology products and Aggrastat®. | ||||||||||||
Revenue Recognition | ||||||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered or delivery has occurred, the price to the buyer is fixed or determinable and collectability is reasonably assured. | ||||||||||||
Product Revenue. The Company recognizes product revenue from selling manufactured ZADAXIN product at the time of delivery. Sales of ZADAXIN to Sinopharm and its affiliates are recognized at time of shipment when title to the product is transferred to them. The Company also earns product revenue from purchasing medical products from pharmaceutical companies and selling them directly to importers or distributors. Sales of Pfizer International Trading (Shanghai) Ltd. (“Pfizer”) products, from the date of the acquisition of the NovaMed Pharmaceuticals (Shanghai) Co. Ltd. (“NovaMed”) subsidiary in April of 2011 into October 2012, were based on the “sell-through” method as the Company’s distribution arrangement for these products allowed for payment terms dependent on when the distributor sold the product. The Company did not maintain information on the timing of “sell-through” of the Pfizer products by the distributor through this period; therefore, the Company applied the cash receipts approach for the application of the “sell-through” method as it was the most reliable information available. Accordingly, during this period of time, revenue for sales of the Pfizer products was recognized upon receipt of cash from the distributor. On October 21, 2012, the Company amended the agreement with the distributor which amendment removed any contingent payment terms. Prior to the amendment, the agreement allowed for delayed payment based on the timing of sales from the distributor to the next tier customer. The amendment changed the payment terms to 60 days, thus ensuring that the distributor could not withhold payment until after the distributor received payment upon sale of product to its next tier customer. The combination of the revised payment terms, together with all of the other contractual restrictions on the distributor (e.g., no return rights or other terms that may raise question as to whether or not they had taken title and assumed “risk of loss”), permitted revenue to be recognized on a “sell-in” basis upon the amendment. Therefore, from October 21, 2012 onward, the “sell-in” method was used by the Company for recognition of related revenue. All other product sales are also recognized on the “sell-in” method, or when the medical products have been delivered to the importers or distributors. | ||||||||||||
Promotion Services Revenue. The Company recognizes promotion services revenue after designated medical products are delivered to the distributors as specified in the promotion services contract, which marks the period when marketing and promotion services have been rendered and the revenue recognition criteria are met. In certain arrangements, the Company is required to return or refund a portion of promotion services fees received during interim periods from pharmaceutical customers if defined annual sales targets are not achieved. Under the Company’s agreements with these customers, if the agreement is terminated, and provided such targets have been met on a “pro rata” basis at the date of contract termination, the Company is entitled to retain the amounts paid. Due to the ability to retain amounts paid upon contract termination, provided applicable targets have been met on a “pro rata” basis at any interim date, we elected to recognize revenue during interim periods without reduction for amounts subject to refund based on Method 2 of Accounting Standards Codification 605-20-S99-1, “Accounting for Management Fees Based on a Formula.” The amount of revenue recognized during the three- and nine-month periods ended September 30, 2013 under this method that is potentially subject to refund if the Company does not achieve the defined annual sales targets through the fourth quarter of fiscal 2013 is $2.3 million and $6.2 million, respectively. If the Company achieves the defined annual sales targets, these amounts will not be refunded. | ||||||||||||
Inventories | ||||||||||||
Inventories consist of raw materials, work in progress and finished goods products. Inventories are valued at the lower of cost or market (net realizable value), with cost determined on a first-in, first-out basis, and include amounts related to materials, labor and overhead. The Company periodically reviews the inventory in order to identify excess and obsolete items. If obsolete or excess items are observed and there are no alternate uses for the inventory, the Company will record a write-down to net realizable value in the period that the impairment is first recognized. For the three- and nine-month periods ended September 30, 2013, the Company has not recorded any write-down related to inventory. | ||||||||||||
Net Income (Loss) Per Share | ||||||||||||
Basic net income (loss) per share has been computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is computed by dividing net income by the weighted-average number of common equivalent shares outstanding for the period. Diluted net income per share includes any dilutive impact from outstanding stock options, restricted stock units (“RSUs”) and the employee stock purchase plan using the treasury stock method. For the three months ended September 30, 2012, the impact of stock options, RSUs and the employee stock purchase plan were not included in the computation of diluted net loss per share because the inclusion would provide an anti-dilutive effect. | ||||||||||||
The following is a reconciliation of the numerator and denominators of the basic and diluted net income (loss) per share computations (in thousands, except per share amounts): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Net income (loss) | $ | 8,708 | $ | -13,161 | $ | 10,928 | $ | 7,732 | ||||
Denominator: | ||||||||||||
Weighted-average shares outstanding used to | ||||||||||||
compute basic net income (loss) per share | 53,591 | 56,617 | 53,931 | 57,184 | ||||||||
Effect of dilutive securities | 1,479 | — | 1,399 | 1,977 | ||||||||
Weighted-average shares outstanding used to | ||||||||||||
compute diluted net income (loss) per share | 55,070 | 56,617 | 55,330 | 59,161 | ||||||||
Basic net income (loss) per share | $ | 0.16 | $ | -0.23 | $ | 0.20 | $ | 0.14 | ||||
Diluted net income (loss) per share | $ | 0.16 | $ | -0.23 | $ | 0.20 | $ | 0.13 | ||||
For the three months ended September 30, 2013, outstanding stock options and RSUs for 3,187,073 shares were excluded from the calculation of diluted net income per share because the effect from the assumed exercise of these options and RSUs calculated under the treasury stock method would have been anti-dilutive. In addition, for the three months ended September 30, 2013, shares subject to market or performance conditions of 12,500 were excluded from the calculation of diluted net income per share because the performance or market criteria had not been met. For the three months ended September 30, 2012, outstanding stock options and RSUs for 5,298,836 shares, were not included in the computation of diluted net loss per share because the inclusion would provide an anti-dilutive effect. In addition, for the three months ended September 30, 2012, shares subject to market or performance conditions of 112,500 were excluded from the calculation of diluted net income per share because the performance or market criteria had not been met and the inclusion would provide an anti-dilutive effect. | ||||||||||||
For the nine months ended September 30, 2013 and 2012, outstanding stock options and RSUs for 3,329,853, and 3,272,577 shares, respectively, were excluded from the calculation of diluted net income (loss) per share because the effect from the assumed exercise of these options and RSUs calculated under the treasury stock method would have been anti-dilutive. In addition, for the nine months ended September 30, 2013 and 2012, shares subject to market or performance conditions of 12,500 and 126,113 respectively, were excluded from the calculation of diluted net income per share because the performance or market criteria had not been met. | ||||||||||||
New Accounting Standard | ||||||||||||
In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss or a Tax Credit Carryforward Exists (“ASU 2013-11”). With certain exceptions, ASU 2013-11 requires entities to present an unrecognized tax benefit or portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. The guidance is effective for interim and annual periods beginning after December 15, 2013 on either a prospective or retrospective basis with early adoption permitted. The Company plans on adopting this guidance commencing in 2014 on a prospective basis. The Company does not expect adoption of this guidance to have a material impact on its consolidated results of operations and financial condition. | ||||||||||||
AvailableForSale_Investments
Available-For-Sale Investments | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Available-For-Sale Investments [Abstract] | ' | ||||||||||||
Available-For-Sale Investments | ' | ||||||||||||
2.Available-for-Sale Investments | |||||||||||||
The following is a summary of available-for-sale investments as of (in thousands): | |||||||||||||
30-Sep-13 | |||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||
Certificate of deposit | $ | 75 | $ | — | $ | — | $ | 75 | |||||
Money market funds | 35,506 | — | — | 35,506 | |||||||||
Total available-for-sale investments | $ | 35,581 | $ | — | $ | — | $ | 35,581 | |||||
31-Dec-12 | |||||||||||||
Unrealized | |||||||||||||
Losses for | |||||||||||||
Amortized | Unrealized | More Than | Estimated | ||||||||||
Cost | Gains | 12 Months | Fair Value | ||||||||||
Certificate of deposit | $ | 75 | $ | — | $ | — | $ | 75 | |||||
Money market funds | 43,505 | — | — | 43,505 | |||||||||
Restricted Italian state bonds maturing | |||||||||||||
in 2013 | 451 | — | -67 | 384 | |||||||||
Total available-for-sale investments | $ | 44,031 | $ | — | $ | -67 | $ | 43,964 | |||||
The Company realized $0.1 million in losses related to the maturity of its Italian state bonds for the three- and nine-month periods ended September 30, 2013. | |||||||||||||
The cost of securities sold is based on the specific identification method. | |||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Fair Value Measurements | ' | ||||||||||||
3.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. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used to measure fair value. The three levels of input are: | |||||||||||||
Level 1 - Quoted prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2 - Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||
Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. | |||||||||||||
The following table represents the Company’s fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis (in thousands): | |||||||||||||
Fair Value Measurements as of September 30, 2013 Using | |||||||||||||
Quoted Prices in | Significant | ||||||||||||
Active Markets | Other | Significant | |||||||||||
for | Observable | Unobservable | Balance | ||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | 30-Sep-13 | |||||||||
Certificate of deposit | $ | — | $ | 75 | $ | — | $ | 75 | |||||
Money market funds | 35,506 | — | — | 35,506 | |||||||||
Total | $ | 35,506 | $ | 75 | $ | — | $ | 35,581 | |||||
Fair Value Measurements as of December 31, 2012 Using | |||||||||||||
Quoted Prices in | Significant | ||||||||||||
Active Markets | Other | Significant | |||||||||||
for | Observable | Unobservable | Balance | ||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | 31-Dec-12 | |||||||||
Certificate of deposit | $ | — | $ | 75 | $ | — | $ | 75 | |||||
Money market funds | 43,505 | — | — | 43,505 | |||||||||
Restricted Italian state | |||||||||||||
bonds | 384 | — | — | 384 | |||||||||
Total | $ | 43,889 | $ | 75 | $ | — | $ | 43,964 | |||||
Contingent Consideration | |||||||||||||
As part of the acquisition of NovaMed, the Company would have been required to pay up to an additional $43.0 million in earn-out payments upon the successful achievement of revenue and earnings targets for the 2011 and 2012 fiscal years (the “earn-out” or “contingent consideration”). Under the Agreement, the earn-out was based upon certain financial performance metrics, including a revenue-based formula and an adjusted EBITDA (earnings before interest, depreciation and taxes) based formula. The earn-out provisions provided that: (i) if cumulative revenue in China for legacy NovaMed products for the two fiscal years ending December 31, 2012 exceeded $94.2 million, a cash payment ranging from $0 to $11.5 million would be paid, with the full amount payable if such revenue was $117.8 million or more; and (ii) if adjusted EBITDA for the two year period ended December 31, 2012 exceeded $91.8 million, a cash payment from $17.2 million to $21.5 million would have been paid with the full amount payable if such adjusted EBITDA was $137.8 million or more. Adjusted EBITDA was defined in the Agreement to exclude certain expenses which were not generally related to operating results in China, including SciClone’s US research and development expense, certain share-based compensation, license fees paid by SciClone for new products, certain legal and advisory fees related to the Agreement or to change-in-control transactions, and certain fees and expenses, including legal fees and governmental fines or settlements paid with respect to the pending formal, non-public investigation being conducted by the SEC. | |||||||||||||
The earn-out provisions were subject to a number of adjustments and acceleration provisions. The total earn-out payments described above could have been increased by $10.0 million (a total maximum contingent cash consideration of $43.0 million) or reduced by $10.0 million, depending upon whether the Company was able to achieve targets relating to the renewal of the Depakine services agreement with Sanofi. The earn-out payments would have been due 20 business days after completion of the Company’s audit for the fiscal year ended December 31, 2012. The earn-out provisions were subject to various limitations and conditions specified in the Agreement. | |||||||||||||
The fair value of the earn-out was re-measured each period, and changes in the fair value were recorded to “contingent consideration” in operating expenses. As of December 31, 2012, the earn-out was determined to be zero. Through September, 30, 2012, the Company used the assistance of a third-party valuation expert to estimate the fair value of the contingent consideration using a Monte Carlo simulation model. The estimated fair value of the contingent consideration was subject to fluctuations as a result of adjustments to certain performance metric projections used to estimate the fair value. As of September 30, 2012, the Company estimated the fair value of the contingent consideration to be $0.6 million, resulting in a non-cash gain of $12.8 million and $14.9 million for the three- and nine-month periods ended September 30, 2012. The significant unobservable inputs used in the fair value measurement of the contingent consideration were revenue volatility of 40%; revenue discount rate of 20%; risk free rate of 0.13%; earn-out discount rate, including counterparty risk of 5%; estimates of projected revenues and earnings before taxes; and other assumptions regarding customer conditions, and probability of change of control and employment termination considerations. Significant changes in the estimated revenues, earnings before taxes, customer conditions, and revenue volatility would have resulted in changes in the fair value measurement. Generally, a change in the assumptions used for the revenue discount rate was accompanied by a change in the fair value of the contingent consideration. | |||||||||||||
The following represented the change in the estimated fair value of the contingent consideration (in thousands): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Contingent Consideration: | |||||||||||||
Balance at beginning of period | $ | — | $ | 13,325 | $ | — | $ | 15,400 | |||||
Foreign currency translation | — | 10 | — | 22 | |||||||||
Change in the estimated fair value of the | |||||||||||||
contingent consideration liability | — | -12,773 | — | -14,860 | |||||||||
Balance at end of period | $ | — | $ | 562 | $ | — | $ | 562 | |||||
Refer also to Note 10 regarding the escrow settlement agreement with former stockholders of NovaMed. | |||||||||||||
Inventories
Inventories | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Inventories [Abstract] | ' | ||||||
Inventories | ' | ||||||
4.Inventories | |||||||
Inventories consisted of the following (in thousands): | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
Raw materials | $ | 2,953 | $ | 3,184 | |||
Work in progress | 872 | 904 | |||||
Finished goods | 6,025 | 6,336 | |||||
$ | 9,850 | $ | 10,424 | ||||
Included in the Company’s inventory as of September 30, 2013 and December 31, 2012, was $2.8 million and $2.3 million, respectively, in inventory held at distributors related to products sold by its NovaMed subsidiary. | |||||||
Loan_Agreement
Loan Agreement | 9 Months Ended |
Sep. 30, 2013 | |
Loan Agreement [Abstract] | ' |
Loan Agreement | ' |
5.Loan Agreement | |
The Company’s loan agreement for 12.5 million renminbi (approximately $2.0 million) with Shanghai Pudong Development Bank Co. Ltd. expired August 29, 2013. All amounts borrowed were repaid by the expiration date. The loan bore interest on borrowed funds at 7.5%. For the three and nine months ended September 30, 2013, the Company paid interest of approximately $7,000 and $0.1 million, respectively, related to this loan agreement. For the three and nine months ended September 30, 2012, the Company paid no interest related to this loan agreement. | |
Accrued_And_Other_Current_Liab
Accrued And Other Current Liabilities | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accrued And Other Current Liabilities [Abstract] | ' | ||||||
Accrued And Other Current Liabilities | ' | ||||||
6.Accrued and Other Current Liabilities | |||||||
Accrued and other current liabilities consisted of the following (in thousands): | |||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
Accrued sales and marketing expenses | $ | 7,716 | $ | 9,051 | |||
Accrued taxes, tax reserves and interest | 5,453 | 4,410 | |||||
Accrued compensation and benefits | 2,558 | 3,232 | |||||
Accrued professional fees | 2,206 | 1,570 | |||||
Other | 2,636 | 3,164 | |||||
$ | 20,569 | $ | 21,427 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||
7.Accumulated Other Comprehensive Income (Loss) | |||||||||
The tables below present the change in accumulated other comprehensive income (loss) by component and reclassifications out of accumulated other comprehensive income (loss) (in thousands). | |||||||||
Foreign | |||||||||
Currency | Available-for-Sale | ||||||||
Translation | Investments | Total | |||||||
Balances as of July 1, 2013 | $ | 3,309 | $ | -73 | $ | 3,236 | |||
Other comprehensive income (loss) before reclassifications | 436 | -4 | 432 | ||||||
Amounts reclassified out of accumulated other | |||||||||
comprehensive income (loss) to other income (expense), net | — | 77 | 77 | ||||||
Net current-period other comprehensive income | 436 | 73 | 509 | ||||||
Balances as of September 30, 2013 | $ | 3,745 | $ | — | $ | 3,745 | |||
Foreign | |||||||||
Currency | Available-for-Sale | ||||||||
Translation | Investments | Total | |||||||
Balances as of January 1, 2013 | $ | 3,055 | $ | -67 | $ | 2,988 | |||
Other comprehensive income (loss) before reclassifications | 690 | -4 | 686 | ||||||
Amounts reclassified out of accumulated other | |||||||||
comprehensive income (loss) to other income (expense), net | — | 71 | 71 | ||||||
Net current-period other comprehensive income | 690 | 67 | 757 | ||||||
Balances as of September 30, 2013 | $ | 3,745 | $ | — | $ | 3,745 | |||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stockholders' Equity [Abstract] | ' | |||||||||||||
Stockholders' Equity | ' | |||||||||||||
8.Stockholders’ Equity | ||||||||||||||
Stock-based Compensation | ||||||||||||||
The following table summarizes the stock-based compensation expenses included in the unaudited condensed consolidated statements of income (in thousands): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Sales and marketing | $ | 321 | $ | 353 | $ | 875 | $ | 969 | ||||||
Research and development | 42 | 71 | 74 | 249 | ||||||||||
General and administrative | 582 | 739 | 2,259 | 1,981 | ||||||||||
$ | 945 | $ | 1,163 | $ | 3,208 | $ | 3,199 | |||||||
Stock Options | ||||||||||||||
During the nine months ended September 30, 2013, the Company granted options to purchase a total of 1,564,500 shares of common stock and options to purchase 564,155 shares of common stock were exercised. As of September 30, 2013, there was approximately $4.9 million of unrecognized compensation expense cost, net of forfeitures, related to non-vested stock options, which is expected to be recognized over a weighted average remaining period of approximately 2.70 years. | ||||||||||||||
The Company has granted a total of 112,500 shares under three performance-based options awards to purchase shares of the Company’s common stock at an exercise price equal to the closing price of a share of the Company’s common stock as of the grant date. The options will fully vest upon meeting a performance goal within an established time frame. If the performance goal is met for the option within the established time frame, the option generally has a ten-year term measured from the date of grant. If the performance goal is not met within the established time frame, the option expires in its entirety. The grant date fair value per share of the performance-based awards has been calculated using the Black-Scholes option pricing model using the following assumptions: expected term of 4.95-5.22 years, volatility factor of 61.74-64.65%, and risk free interest rates of 0.95-1.49%. The Company recognizes expense related to a performance-based option over the period of time the Company determines that it is probable that the performance goal will be achieved. If it is subsequently determined that the performance goal is not probable of achievement, the expense related to the performance-based option is reversed. For the three-month period ended September 30, 2013 and 2012, the Company recognized approximately $37,000 and ($69,000), respectively, of expense (benefit) related to performance-based options. For the nine-month period ended September 30, 2013 and 2012, the Company recognized approximately $37,000 and ($7,000), respectively, of expense (benefit) related to performance-based options. | ||||||||||||||
RSUs | ||||||||||||||
During the nine months ended September 30, 2013, 170,000 RSUs were granted and 37,932 RSUs vested and were released. As of September 30, 2013, there was approximately $0.9 million of unrecognized compensation cost, net of forfeitures, related to non-vested RSUs, which is expected to be recognized over a weighted average remaining period of approximately 1.56 years. | ||||||||||||||
Repurchase of Common Stock | ||||||||||||||
In August 2013, the Company’s Board of Directors approved an increase of $10.0 million to the existing $40.5 million share repurchase program initiated in October 2011, bringing the total authorized under the program since inception to $50.5 million. In addition, the Board of Directors approved extending the repurchase program through December 31, 2014. The Company repurchased and retired 1,349,090 and 1,851,490 shares at a cost of $7.3 million and $9.8 million during the three- and nine-month periods ended September 30, 2013. As of September 30, 2013, $12.3 million of the $50.5 million share repurchase program authorized by the Board of Directors was available for future share repurchases. Repurchased shares have been retired and constitute authorized but unissued shares. | ||||||||||||||
Licensing_Agreements
Licensing Agreements | 9 Months Ended |
Sep. 30, 2013 | |
Licensing Agreements [Abstract] | ' |
Licensing Agreements | ' |
9.Licensing Agreements | |
Zensun (Shanghai) Science & Technology Co., Ltd. (“Zensun”) | |
On May 13, 2013, the Company, through a designated affiliate, entered into a framework agreement with Zensun for the exclusive promotion, marketing, distribution and sale of NeucardinTM in China, Hong Kong and Macau. Neucardin is a novel, first-in-class therapeutic for the treatment of patients with intermediate to advanced heart failure, for which a New Drug Application was submitted to and accepted for review by the China Food and Drug Administration (“CFDA”) in 2012. The Zensun agreement provides the principal terms of the arrangement. The Company is now developing a supplemental license and supply agreement with Zensun. | |
Subject to certain conditions, the Company has agreed to make payments of up to $18.5 million to Zensun, consisting of an upfront payment amount and further amounts upon the achievement of certain milestones, including the approval of a new drug application for Neucardin™, the granting of a manufacturing license, good manufacturing practices certificate and drug approval number in China. The Company has agreed under certain conditions to make milestone payments to Zensun of $10 million if approval is received for a new device to deliver Neucardin™ and up to $25 million if approval is received for the use of Neucardin™ in additional indications. In addition, the Company has agreed, subject to the entry into mutually acceptable definitive agreements and the satisfaction of certain conditions, to provide a collateralized loan to Zensun of up to approximately $12.0 million. The Company anticipates funding approximately $2.3 million of the loan in the fourth quarter of 2013. Zensun is required to refund and return the upfront payment it received from the Company if Zensun terminates the agreement for failure of the Company to fund all or some of the loan to Zensun. Zensun will be responsible for manufacture of the product and the Company has agreed to purchase the product exclusively from Zensun for the duration of the agreement. | |
Taiwan Liposome Company (“TLC”) | |
In June 2013, the Company entered into an agreement with TLC granting the Company a license and the exclusive rights in China, Hong Kong and Macau to promote, market, distribute and sell ProFlow® for the treatment of peripheral arterial disease (“PAD”) and other indications. Under the terms of the agreement, TLC will be responsible for the continued development, including potential clinical trials and regulatory activities, as well as the manufacture and supply of ProFlow, and the Company will be responsible for all aspects of commercialization including pre-and post-launch activities. ProFlow has been submitted to the CFDA for approval, and it is expected that some additional clinical testing may be required prior to approval. Financial terms of the agreement include clinical and regulatory milestone payments and sales milestone payments up to an aggregate of $39.5 million. The agreement provides for the principal terms of the arrangement between SciClone and TLC, and the Company is completing a supplemental license and supply agreement with TLC. | |
For the three- and nine-months ended September 30, 2013, the Company recorded upfront payments totaling $0 and $5.0 million, respectively, in research and development expense related to its licensing arrangements with TLC and Zensun. | |
Escrow_Settlement_Agreement
Escrow Settlement Agreement | 9 Months Ended |
Sep. 30, 2013 | |
Escrow Settlement Agreement [Abstract] | ' |
Escrow Settlement Agreement | ' |
10.Escrow Settlement Agreement | |
On October 16, 2012, the Company made a claim against the former stockholders of NovaMed pursuant to the acquisition agreement relating to our acquisition of NovaMed. As a result of the Company’s claim, approximately $1.4 million in cash that was held in escrow and 622,363 shares of the Company’s common stock that was held in escrow were not released to the former NovaMed stockholders pending the outcome of the Company’s claim. The claim related to damages the Company incurred as a result of misrepresentations made by NovaMed regarding various matters, including the estimated product return reserves for Aggrastat product on the date of the acquisition, and related expenses and damages. On July 8, 2013, the Company and the representatives of the former stockholders of NovaMed entered into a Confidential “Escrow Settlement Agreement” pursuant to which the Company retained approximately $0.8 million in cash and 342,300 shares of its common stock, having a combined value of approximately $2.6 million on the settlement date that was recorded to other income during the three- and nine-month periods ended September 30, 2013. As of September 30, 2013, the Company has canceled and retired the shares. | |
Contingencies_And_Commitments
Contingencies And Commitments | 9 Months Ended |
Sep. 30, 2013 | |
Contingencies And Commitments [Abstract] | ' |
Contingencies And Commitments | ' |
11.Contingencies and Commitments | |
Legal Matters | |
The Company is a party to various legal proceedings and subject to government investigations, as noted in this section below. All legal proceedings and any government investigations are subject to inherent uncertainties, unfavorable rulings or other adverse events which could occur. Unfavorable outcomes could include substantial monetary damages or awards, injunctions or other remedies, and if any of these were to occur, the possibility exists for a material adverse impact on our business, results of operations, financial position, and overall trends. The Company might also conclude that settling one or more such matters is in the best interests of its stockholders and our business, and any such settlement could include substantial payments. However, the Company has not reached this conclusion with respect to any particular matter at this time. | |
On August 5, 2010, SciClone was contacted by the SEC and advised that the SEC has initiated a formal, non-public investigation of SciClone, and the SEC issued a subpoena to SciClone requesting a variety of documents and other information including, but not limited to, potential payments or transfers of anything of value to regulators and government-owned entities in China, bids or contracts with state or government-owned entities in China, any joint venture partner, intermediary or local agent of the Company in China, the Company's ethics and anti-corruption policies, training, and audits, and certain company financial and other disclosures. On August 6, 2010, the Company received a letter from the US Department of Justice (“DOJ”) indicating that the DOJ was investigating Foreign Corrupt Practices Act (“FCPA”) issues in the pharmaceutical industry generally, and that the DOJ had information about the Company’s practices suggesting possible violations. The Company received a further subpoena from the SEC in the fourth quarter of fiscal 2012 on additional matters including, but not limited to, matters related to our acquisition of NovaMed and FCPA matters, and certain sales and marketing expenses. | |
In response to these matters, the Company’s Board of Directors appointed a Special Committee of independent directors (the “Special Committee”) to oversee the Company’s response to the government inquiry. The Special Committee has undertaken independent investigations as to matters reflected in and arising from the SEC and DOJ investigations in order to evaluate whether any violation of the FCPA or other laws occurred. The Company will continue to cooperate fully with the SEC and DOJ in the conduct of their investigations. | |
The Company cannot predict what the outcome of those investigations will be, or the timing of any resolution. Accordingly, the Company is unable to reasonably estimate the potential loss or range of loss that may be incurred related to the SEC/DOJ investigations. Any fines or penalties that may be imposed, or other losses that may be realized related to the investigations, could materially impact the Company’s financial statements. The Company will continue to reassess the potential liability related to the investigations and adjust its estimates accordingly in future periods. | |
NovaMed is a party to a Distribution and Supply Agreement with MEDA Pharma GmbH & Co. KG (“MEDA”). Following the Company’s acquisition of NovaMed, MEDA claimed it had a right to terminate the agreement under a change of control provision. NovaMed does not believe that MEDA had a right of termination under the agreement. As provided in the agreement, disputes, including disputes regarding termination, must be resolved in binding arbitration. NovaMed filed an application for binding arbitration with the China International Economic and Trade Arbitration Commission (“CIETAC”) on July 26, 2012. On October 10, 2012, MEDA filed an initial response and counterclaim with CIETAC claiming MEDA’s termination was valid and demanding the transfer of certain information and rights, as well as demanding the award of damages, including attorneys’ fees in an unspecified amount. On April 16, 2013, MEDA filed a further response stating their claims and facts in support of their initial response and counterclaim. A hearing on the merits of the matter was held in August 2013 in Shanghai. The Arbitral Panel has made a number of procedural and preliminary decisions, but the dispute has not been resolved and the arbitration proceeding is continuing. Given the procedural process and the nature of this case, the Company is unable to make a reasonable estimate of the potential gain or loss or range of gain or losses, if any, that might arise from this matter. | |
On March 11, 2013, Adam Crum filed a derivative lawsuit, purportedly in the name of SciClone, against Friedhelm Blobel, Gary Titus, Jon Saxe, Peter Barrett, Richard Hawkins, Gregg Lapointe and Ira Lawrence in California Superior Court, San Mateo County, captioned Crum v. Blobel, et al, Case No. CIV520331. The lawsuit alleges, based on the restatement of our consolidated financial statements for the year ended December 31, 2011 and certain quarters of 2011 and 2012, that the Board of Directors and management breached their fiduciary duties to the Company by not exercising oversight in such a way that they allowed the Company to file consolidated financial statements that were materially inaccurate. Plaintiff asserts claims for breach of fiduciary duty, abuse of control and mismanagement. Plaintiff seeks, among other things, injunctive relief, disgorgement, undisclosed damages and attorneys’ fees and costs. The Company and other defendants have filed motions to dismiss the complaint. A hearing on the motions to dismiss is currently scheduled for November 15, 2013. Given the procedural process and the nature of this case, including that a motion to dismiss has been filed, the Company is unable to make a reasonable estimate of the potential loss or range of losses, if any, that might arise from this matter. | |
Purchase Obligations | |
Under agreements with certain of the Company’s pharmaceutical partners, the Company is committed to certain annual minimum product purchases where the contract is subject to termination if the annual minimum order is not met. As of September 30, 2013, the Company did not have any material unmet purchase obligations. | |
Segment_Information_And_Geogra
Segment Information And Geographic Data | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Segment Information And Geographic Data [Abstract] | ' | |||||||||||
Segment Information And Geographic Data | ' | |||||||||||
12.Segment Information and Geographic Data | ||||||||||||
The Company reports segment information based on the internal reporting used by management for evaluating segment performance based on management’s estimates of the appropriate allocation of resources to segments. | ||||||||||||
The Company operates and manages its business primarily on a geographic basis. Accordingly, the Company determined its operating and reporting segments, which are generally based on the nature and location of its customers, to be 1) China and 2) Rest of the World, including the US and Hong Kong. | ||||||||||||
The Company evaluates the performance of its operating segments based on revenues and operating income (loss). Revenues for geographic segments are generally based on the location of customers. Operating income (loss) for each segment includes revenues, related cost of sales and operating expenses directly attributable to the segment. Operating income (loss) for each segment excludes non-operating income and expense. Operating loss for the Rest of the World segment includes the change in the fair value of the contingent consideration, all research and development expense for the Company’s SCV-07 trial, which was discontinued in the first quarter of 2012. Operating loss for the China segment includes upfront payments totaling $5.0 million related to the Company’s licensing arrangements with TLC and Zensun. Non-operating income for the Rest of the World segment includes the escrow settlement of $2.6 million. | ||||||||||||
Summary information by operating segment for the three- and nine-month periods ended September 30, 2013 and 2012 is as follows (in thousands): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Revenue: | ||||||||||||
China | $ | 33,968 | $ | 39,682 | $ | 90,949 | $ | 120,548 | ||||
Rest of the World (including the US and Hong Kong) | 1,258 | 1,011 | 3,375 | 2,582 | ||||||||
Total net revenues | $ | 35,226 | $ | 40,693 | $ | 94,324 | $ | 123,130 | ||||
Income (loss) from operations: | ||||||||||||
China | $ | 9,873 | $ | -29,427 | $ | 23,831 | $ | -1,415 | ||||
Rest of the World (including the US and Hong Kong) | -3,741 | 10,212 | -14,217 | 5,316 | ||||||||
Total income (loss) from operations | $ | 6,132 | $ | -19,215 | $ | 9,614 | $ | 3,901 | ||||
Non-operating income (expense): | ||||||||||||
China | $ | 152 | $ | -39 | $ | 197 | $ | -113 | ||||
Rest of the World (including the US and Hong Kong) | 2,577 | 3 | 2,545 | -3 | ||||||||
Total non-operating income (expense) | $ | 2,729 | $ | -36 | $ | 2,742 | $ | -116 | ||||
Income (loss) before provision for income tax: | ||||||||||||
China | $ | 10,025 | $ | -29,466 | $ | 24,028 | $ | -1,528 | ||||
Rest of the World (including the US and Hong Kong) | -1,164 | 10,215 | -11,672 | 5,313 | ||||||||
Total income (loss) before provision for | ||||||||||||
income tax | $ | 8,861 | $ | -19,251 | $ | 12,356 | $ | 3,785 | ||||
Long-lived assets as of September 30, 2013 by operating segment are as follows (in thousands): | ||||||||||||
China | $ | 36,013 | ||||||||||
Rest of the World (including the US and Hong Kong) | 434 | |||||||||||
$ | 36,447 | |||||||||||
Subsequent_Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
13.Subsequent Events | |
Stock Repurchases: The Company repurchased and retired 274,383 shares at a cost of $1.4 million from October 1, 2013 through November 10, 2013 under its share repurchase program. As of November 10, 2013, $11.0 million of the total $50.5 million was available for future share repurchase. | |
Sanofi Aventis S.A. (“Sanofi”) Promotion Agreement: The promotion agreement with Sanofi expires on December 31, 2013. The Company attempted to negotiate an extension of that agreement, but on October 14, 2013 was informed by Sanofi that it would not be renewing the agreement. Revenues for 2011, 2012, and for the nine months ended September 30, 2013 related to our agreement with Sanofi were approximately $19.7 million, $30.8 million, and $25.0 million, respectively. Per the Sanofi agreement, the Company is required to return or refund a portion of promotion services fees received during interim periods from them if defined annual sales targets are not achieved. The Company has recognized revenue during interim periods without reduction for amounts subject to refund provided such targets were met on a “pro rata” basis at interim dates. The amount of revenue recognized during the three- and nine-month periods under this method that is potentially subject to refund is $2.3 million and $6.2 million, respectively. The Company expects Sanofi revenue in the fourth quarter of 2013 to be lower than expected related to the wind-down of our services with them. If the Company does not achieve the defined annual sales targets through the fourth quarter of fiscal 2013, depending on the cause of any shortfall, a negotiation or dispute with Sanofi could occur as to whether a portion of the Company’s previously recorded promotion fees are refundable. The Company may also incur additional costs, primarily in the fourth quarter of 2013, as the Company reorganizes its business. | |
Basis_Of_Presentation_Policy
Basis Of Presentation (Policy) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Basis Of Presentation [Abstract] | ' | |||||||||||
Basis Of Presentation | ' | |||||||||||
1.Basis of Presentation | ||||||||||||
The accompanying unaudited condensed consolidated financial statements of SciClone Pharmaceuticals, Inc. (“SciClone” or the “Company”) have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”) consistent with those applied in, and should be read in conjunction with, the audited consolidated financial statements and the notes thereto for the year ended December 31, 2012 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission (“SEC”). The Company prepared the unaudited condensed consolidated financial statements following the requirements of the SEC for interim reporting. As permitted under those rules, certain footnotes or other information that are normally required by GAAP can be condensed or omitted. | ||||||||||||
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. | ||||||||||||
The interim financial information reflects all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented and are not necessarily indicative of results for subsequent interim periods or for the full year. The unaudited condensed consolidated balance sheet data as of December 31, 2012 is derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. | ||||||||||||
Use Of Estimates | ' | |||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make judgments, assumptions and estimates that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Actual results could differ significantly from those estimates. | ||||||||||||
Customer Concentration | ' | |||||||||||
Customer Concentration | ||||||||||||
In China, pharmaceutical products are imported and distributed through a tiered method of distribution. For the Company’s proprietary product ZADAXIN®, the Company manufactures its product using its US and European contract manufacturers, and it generates its product sales revenue through sales of ZADAXIN products to Sinopharm Lingyun Biopharmaceutical (Shanghai) Co. Ltd. (“Sinopharm”). Sinopharm and its affiliates act as an importer, and also as the top “tier” of the distribution system (“Tier 1”) in China. The Company’s ZADAXIN sales occur when the importer purchases product from the Company, without any right of return except for damaged product or quality control issues and after passage of title and risk of loss are transferred to Sinopharm at the time of shipment. After the Company’s sale, Sinopharm clears products through China import customs, sells directly to large hospitals and holds additional product it has purchased in inventory for sale to the next tier in the distribution system. The second-tier distributors are responsible for the further sale and distribution of the products they purchase from the importer, either through sales of product directly to the retail level (hospitals and pharmacies), or to third-tier local or regional distributors who, in turn, sell products to hospitals and pharmacies. The Company’s other product sales revenues result from the sale of the Company’s in-licensed products to importing agents and distributors. | ||||||||||||
Promotion services revenues result from fees received for exclusively promoting products for certain pharmaceutical partners. These importing agents, distributors and partners are the Company’s customers. Customers that exceed 10% of the Company’s total net revenue were as follows: | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Customer A | 68% | 56% | 68% | 56% | ||||||||
Customer B | 26% | 20% | 26% | 19% | ||||||||
Customer C | — | 13% | — | 16% | ||||||||
As of September 30, 2013, approximately $35.6 million, or 95%, of the Company's accounts receivable were attributable to three customers in China. The Company generally does not require collateral from its customers. | ||||||||||||
Accounts Receivable | ' | |||||||||||
Accounts Receivable | ||||||||||||
Receivable Reserve. The Company records a receivable reserve based upon a specific review of its overdue invoices. The Company’s estimate for a reserve is determined after considering its existing contractual payment terms, payment patterns of its customers and individual customer circumstances, the age of any outstanding receivables and its current customer relationships. As of September 30, 2013, the Company recorded a receivable reserve of approximately $2.1 million related to gross accounts receivable of $4.1 million involving two customers who are part of the same affiliated group. As of December 31, 2012, the Company recorded a receivable reserve of approximately $1.0 million related to gross accounts receivable from one customer of $3.5 million. The Company increased the accounts receivable reserve as of September 30, 2013 as a result of continual negotiations that indicate the accounts receivable balance may be only partially recoverable. The receivable reserve reflects the Company’s best estimate of the ultimate collection, though actual collections may vary and the Company continues to pursue the full amount of the accounts receivables. | ||||||||||||
Reserve for Product Returns. The Company maintains a reserve for product returns based on estimates of the amount of product to be returned by its customers which may result from expired product or for price reductions on the related sales and is based on historical patterns, analysis of market demand and/or a percentage of sales based on industry trends, and management’s evaluation of specific factors that may increase the risk of product returns. Importing agents or distributors do not have contractual rights of return except under limited terms regarding product quality. However, the Company is expected to replace products that have expired or are deemed to be damaged or defective when delivered. The calculation of the product returns reserve requires estimates and involves a high degree of subjectivity and judgment. As a result of the uncertainties involved in estimating the product returns reserve, there is a possibility that materially different amounts could be reported under different conditions or using different assumptions. As of September 30, 2013 and December 31, 2012, the Company had estimated a product returns reserve of $0 and $0.1 million, respectively, on its consolidated balance sheets related to sales of oncology products and Aggrastat®. | ||||||||||||
Revenue Recognition | ' | |||||||||||
Revenue Recognition | ||||||||||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, services have been rendered or delivery has occurred, the price to the buyer is fixed or determinable and collectability is reasonably assured. | ||||||||||||
Product Revenue. The Company recognizes product revenue from selling manufactured ZADAXIN product at the time of delivery. Sales of ZADAXIN to Sinopharm and its affiliates are recognized at time of shipment when title to the product is transferred to them. The Company also earns product revenue from purchasing medical products from pharmaceutical companies and selling them directly to importers or distributors. Sales of Pfizer International Trading (Shanghai) Ltd. (“Pfizer”) products, from the date of the acquisition of the NovaMed Pharmaceuticals (Shanghai) Co. Ltd. (“NovaMed”) subsidiary in April of 2011 into October 2012, were based on the “sell-through” method as the Company’s distribution arrangement for these products allowed for payment terms dependent on when the distributor sold the product. The Company did not maintain information on the timing of “sell-through” of the Pfizer products by the distributor through this period; therefore, the Company applied the cash receipts approach for the application of the “sell-through” method as it was the most reliable information available. Accordingly, during this period of time, revenue for sales of the Pfizer products was recognized upon receipt of cash from the distributor. On October 21, 2012, the Company amended the agreement with the distributor which amendment removed any contingent payment terms. Prior to the amendment, the agreement allowed for delayed payment based on the timing of sales from the distributor to the next tier customer. The amendment changed the payment terms to 60 days, thus ensuring that the distributor could not withhold payment until after the distributor received payment upon sale of product to its next tier customer. The combination of the revised payment terms, together with all of the other contractual restrictions on the distributor (e.g., no return rights or other terms that may raise question as to whether or not they had taken title and assumed “risk of loss”), permitted revenue to be recognized on a “sell-in” basis upon the amendment. Therefore, from October 21, 2012 onward, the “sell-in” method was used by the Company for recognition of related revenue. All other product sales are also recognized on the “sell-in” method, or when the medical products have been delivered to the importers or distributors. | ||||||||||||
Promotion Services Revenue. The Company recognizes promotion services revenue after designated medical products are delivered to the distributors as specified in the promotion services contract, which marks the period when marketing and promotion services have been rendered and the revenue recognition criteria are met. In certain arrangements, the Company is required to return or refund a portion of promotion services fees received during interim periods from pharmaceutical customers if defined annual sales targets are not achieved. Under the Company’s agreements with these customers, if the agreement is terminated, and provided such targets have been met on a “pro rata” basis at the date of contract termination, the Company is entitled to retain the amounts paid. Due to the ability to retain amounts paid upon contract termination, provided applicable targets have been met on a “pro rata” basis at any interim date, we elected to recognize revenue during interim periods without reduction for amounts subject to refund based on Method 2 of Accounting Standards Codification 605-20-S99-1, “Accounting for Management Fees Based on a Formula.” The amount of revenue recognized during the three- and nine-month periods ended September 30, 2013 under this method that is potentially subject to refund if the Company does not achieve the defined annual sales targets through the fourth quarter of fiscal 2013 is $2.3 million and $6.2 million, respectively. If the Company achieves the defined annual sales targets, these amounts will not be refunded. | ||||||||||||
Inventories | ' | |||||||||||
Inventories | ||||||||||||
Inventories consist of raw materials, work in progress and finished goods products. Inventories are valued at the lower of cost or market (net realizable value), with cost determined on a first-in, first-out basis, and include amounts related to materials, labor and overhead. The Company periodically reviews the inventory in order to identify excess and obsolete items. If obsolete or excess items are observed and there are no alternate uses for the inventory, the Company will record a write-down to net realizable value in the period that the impairment is first recognized. For the three- and nine-month periods ended September 30, 2013, the Company has not recorded any write-down related to inventory. | ||||||||||||
Net Income (Loss) Per Share | ' | |||||||||||
Net Income (Loss) Per Share | ||||||||||||
Basic net income (loss) per share has been computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted net income per share is computed by dividing net income by the weighted-average number of common equivalent shares outstanding for the period. Diluted net income per share includes any dilutive impact from outstanding stock options, restricted stock units (“RSUs”) and the employee stock purchase plan using the treasury stock method. For the three months ended September 30, 2012, the impact of stock options, RSUs and the employee stock purchase plan were not included in the computation of diluted net loss per share because the inclusion would provide an anti-dilutive effect. | ||||||||||||
The following is a reconciliation of the numerator and denominators of the basic and diluted net income (loss) per share computations (in thousands, except per share amounts): | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Net income (loss) | $ | 8,708 | $ | -13,161 | $ | 10,928 | $ | 7,732 | ||||
Denominator: | ||||||||||||
Weighted-average shares outstanding used to | ||||||||||||
compute basic net income (loss) per share | 53,591 | 56,617 | 53,931 | 57,184 | ||||||||
Effect of dilutive securities | 1,479 | — | 1,399 | 1,977 | ||||||||
Weighted-average shares outstanding used to | ||||||||||||
compute diluted net income (loss) per share | 55,070 | 56,617 | 55,330 | 59,161 | ||||||||
Basic net income (loss) per share | $ | 0.16 | $ | -0.23 | $ | 0.20 | $ | 0.14 | ||||
Diluted net income (loss) per share | $ | 0.16 | $ | -0.23 | $ | 0.20 | $ | 0.13 | ||||
For the three months ended September 30, 2013, outstanding stock options and RSUs for 3,187,073 shares were excluded from the calculation of diluted net income per share because the effect from the assumed exercise of these options and RSUs calculated under the treasury stock method would have been anti-dilutive. In addition, for the three months ended September 30, 2013, shares subject to market or performance conditions of 12,500 were excluded from the calculation of diluted net income per share because the performance or market criteria had not been met. For the three months ended September 30, 2012, outstanding stock options and RSUs for 5,298,836 shares, were not included in the computation of diluted net loss per share because the inclusion would provide an anti-dilutive effect. In addition, for the three months ended September 30, 2012, shares subject to market or performance conditions of 112,500 were excluded from the calculation of diluted net income per share because the performance or market criteria had not been met and the inclusion would provide an anti-dilutive effect. | ||||||||||||
For the nine months ended September 30, 2013 and 2012, outstanding stock options and RSUs for 3,329,853, and 3,272,577 shares, respectively, were excluded from the calculation of diluted net income (loss) per share because the effect from the assumed exercise of these options and RSUs calculated under the treasury stock method would have been anti-dilutive. In addition, for the nine months ended September 30, 2013 and 2012, shares subject to market or performance conditions of 12,500 and 126,113 respectively, were excluded from the calculation of diluted net income per share because the performance or market criteria had not been met. | ||||||||||||
New Accounting Standard | ' | |||||||||||
New Accounting Standard | ||||||||||||
In July 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-11 Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss or a Tax Credit Carryforward Exists (“ASU 2013-11”). With certain exceptions, ASU 2013-11 requires entities to present an unrecognized tax benefit or portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. The guidance is effective for interim and annual periods beginning after December 15, 2013 on either a prospective or retrospective basis with early adoption permitted. The Company plans on adopting this guidance commencing in 2014 on a prospective basis. The Company does not expect adoption of this guidance to have a material impact on its consolidated results of operations and financial condition. | ||||||||||||
Basis_Of_Presentation_Tables
Basis Of Presentation (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Basis Of Presentation [Abstract] | ' | |||||||||||
Schedule Of Revenue By Major Customers By Reporting Segments | ' | |||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Customer A | 68% | 56% | 68% | 56% | ||||||||
Customer B | 26% | 20% | 26% | 19% | ||||||||
Customer C | — | 13% | — | 16% | ||||||||
Reconciliation Of The Numerator And Denominators Of The Basic And Diluted Net Income Per Share Computations | ' | |||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Numerator: | ||||||||||||
Net income (loss) | $ | 8,708 | $ | -13,161 | $ | 10,928 | $ | 7,732 | ||||
Denominator: | ||||||||||||
Weighted-average shares outstanding used to | ||||||||||||
compute basic net income (loss) per share | 53,591 | 56,617 | 53,931 | 57,184 | ||||||||
Effect of dilutive securities | 1,479 | — | 1,399 | 1,977 | ||||||||
Weighted-average shares outstanding used to | ||||||||||||
compute diluted net income (loss) per share | 55,070 | 56,617 | 55,330 | 59,161 | ||||||||
Basic net income (loss) per share | $ | 0.16 | $ | -0.23 | $ | 0.20 | $ | 0.14 | ||||
Diluted net income (loss) per share | $ | 0.16 | $ | -0.23 | $ | 0.20 | $ | 0.13 | ||||
AvailableForSale_Investments_T
Available-For-Sale Investments (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Available-For-Sale Investments [Abstract] | ' | ||||||||||||
Summary Of Available-For-Sale Investments | ' | ||||||||||||
30-Sep-13 | |||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||
Certificate of deposit | $ | 75 | $ | — | $ | — | $ | 75 | |||||
Money market funds | 35,506 | — | — | 35,506 | |||||||||
Total available-for-sale investments | $ | 35,581 | $ | — | $ | — | $ | 35,581 | |||||
31-Dec-12 | |||||||||||||
Unrealized | |||||||||||||
Losses for | |||||||||||||
Amortized | Unrealized | More Than | Estimated | ||||||||||
Cost | Gains | 12 Months | Fair Value | ||||||||||
Certificate of deposit | $ | 75 | $ | — | $ | — | $ | 75 | |||||
Money market funds | 43,505 | — | — | 43,505 | |||||||||
Restricted Italian state bonds maturing | |||||||||||||
in 2013 | 451 | — | -67 | 384 | |||||||||
Total available-for-sale investments | $ | 44,031 | $ | — | $ | -67 | $ | 43,964 | |||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value Measurements [Abstract] | ' | ||||||||||||
Financial Assets And Liability Measured At Fair Value On A Recurring Basis | ' | ||||||||||||
Fair Value Measurements as of September 30, 2013 Using | |||||||||||||
Quoted Prices in | Significant | ||||||||||||
Active Markets | Other | Significant | |||||||||||
for | Observable | Unobservable | Balance | ||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | 30-Sep-13 | |||||||||
Certificate of deposit | $ | — | $ | 75 | $ | — | $ | 75 | |||||
Money market funds | 35,506 | — | — | 35,506 | |||||||||
Total | $ | 35,506 | $ | 75 | $ | — | $ | 35,581 | |||||
Fair Value Measurements as of December 31, 2012 Using | |||||||||||||
Quoted Prices in | Significant | ||||||||||||
Active Markets | Other | Significant | |||||||||||
for | Observable | Unobservable | Balance | ||||||||||
Identical Assets | Inputs | Inputs | as of | ||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | 31-Dec-12 | |||||||||
Certificate of deposit | $ | — | $ | 75 | $ | — | $ | 75 | |||||
Money market funds | 43,505 | — | — | 43,505 | |||||||||
Restricted Italian state | |||||||||||||
bonds | 384 | — | — | 384 | |||||||||
Total | $ | 43,889 | $ | 75 | $ | — | $ | 43,964 | |||||
Schedule Of Change In Estimated Fair Value Of Contingent Consideration | ' | ||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||
Contingent Consideration: | |||||||||||||
Balance at beginning of period | $ | — | $ | 13,325 | $ | — | $ | 15,400 | |||||
Foreign currency translation | — | 10 | — | 22 | |||||||||
Change in the estimated fair value of the | |||||||||||||
contingent consideration liability | — | -12,773 | — | -14,860 | |||||||||
Balance at end of period | $ | — | $ | 562 | $ | — | $ | 562 | |||||
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Inventories [Abstract] | ' | ||||||
Schedule Of Inventories | ' | ||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
Raw materials | $ | 2,953 | $ | 3,184 | |||
Work in progress | 872 | 904 | |||||
Finished goods | 6,025 | 6,336 | |||||
$ | 9,850 | $ | 10,424 | ||||
Accrued_And_Other_Current_Liab1
Accrued And Other Current Liabilities (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Accrued And Other Current Liabilities [Abstract] | ' | ||||||
Schedule Of Accrued And Other Current Liabilities | ' | ||||||
September 30, | December 31, | ||||||
2013 | 2012 | ||||||
Accrued sales and marketing expenses | $ | 7,716 | $ | 9,051 | |||
Accrued taxes, tax reserves and interest | 5,453 | 4,410 | |||||
Accrued compensation and benefits | 2,558 | 3,232 | |||||
Accrued professional fees | 2,206 | 1,570 | |||||
Other | 2,636 | 3,164 | |||||
$ | 20,569 | $ | 21,427 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ||||||||
Schedule Of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||
Foreign | |||||||||
Currency | Available-for-Sale | ||||||||
Translation | Investments | Total | |||||||
Balances as of July 1, 2013 | $ | 3,309 | $ | -73 | $ | 3,236 | |||
Other comprehensive income (loss) before reclassifications | 436 | -4 | 432 | ||||||
Amounts reclassified out of accumulated other | |||||||||
comprehensive income (loss) to other income (expense), net | — | 77 | 77 | ||||||
Net current-period other comprehensive income | 436 | 73 | 509 | ||||||
Balances as of September 30, 2013 | $ | 3,745 | $ | — | $ | 3,745 | |||
Foreign | |||||||||
Currency | Available-for-Sale | ||||||||
Translation | Investments | Total | |||||||
Balances as of January 1, 2013 | $ | 3,055 | $ | -67 | $ | 2,988 | |||
Other comprehensive income (loss) before reclassifications | 690 | -4 | 686 | ||||||
Amounts reclassified out of accumulated other | |||||||||
comprehensive income (loss) to other income (expense), net | — | 71 | 71 | ||||||
Net current-period other comprehensive income | 690 | 67 | 757 | ||||||
Balances as of September 30, 2013 | $ | 3,745 | $ | — | $ | 3,745 | |||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Stock-Based Compensation [Abstract] | ' | |||||||||||||
Stock-Based Compensation Expenses Included In The Condensed Consolidated Statements Of Operations | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
Sales and marketing | $ | 321 | $ | 353 | $ | 875 | $ | 969 | ||||||
Research and development | 42 | 71 | 74 | 249 | ||||||||||
General and administrative | 582 | 739 | 2,259 | 1,981 | ||||||||||
$ | 945 | $ | 1,163 | $ | 3,208 | $ | 3,199 | |||||||
Segment_Information_And_Geogra1
Segment Information And Geographic Data (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Segment Information And Geographic Data [Abstract] | ' | |||||||||||
Summary Information By Operating Segment | ' | |||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
September 30, | September 30, | |||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||
Revenue: | ||||||||||||
China | $ | 33,968 | $ | 39,682 | $ | 90,949 | $ | 120,548 | ||||
Rest of the World (including the US and Hong Kong) | 1,258 | 1,011 | 3,375 | 2,582 | ||||||||
Total net revenues | $ | 35,226 | $ | 40,693 | $ | 94,324 | $ | 123,130 | ||||
Income (loss) from operations: | ||||||||||||
China | $ | 9,873 | $ | -29,427 | $ | 23,831 | $ | -1,415 | ||||
Rest of the World (including the US and Hong Kong) | -3,741 | 10,212 | -14,217 | 5,316 | ||||||||
Total income (loss) from operations | $ | 6,132 | $ | -19,215 | $ | 9,614 | $ | 3,901 | ||||
Non-operating income (expense): | ||||||||||||
China | $ | 152 | $ | -39 | $ | 197 | $ | -113 | ||||
Rest of the World (including the US and Hong Kong) | 2,577 | 3 | 2,545 | -3 | ||||||||
Total non-operating income (expense) | $ | 2,729 | $ | -36 | $ | 2,742 | $ | -116 | ||||
Income (loss) before provision for income tax: | ||||||||||||
China | $ | 10,025 | $ | -29,466 | $ | 24,028 | $ | -1,528 | ||||
Rest of the World (including the US and Hong Kong) | -1,164 | 10,215 | -11,672 | 5,313 | ||||||||
Total income (loss) before provision for | ||||||||||||
income tax | $ | 8,861 | $ | -19,251 | $ | 12,356 | $ | 3,785 | ||||
Long-Lived Assets By Operating Segment | ' | |||||||||||
China | $ | 36,013 | ||||||||||
Rest of the World (including the US and Hong Kong) | 434 | |||||||||||
$ | 36,447 | |||||||||||
Basis_of_Presentation_Narrativ
Basis of Presentation (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Stock Options And RSUs [Member] | Stock Options And RSUs [Member] | Stock Options And RSUs [Member] | Stock Options And RSUs [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Performance Shares [Member] | Accounts Receivable To Three Importing Or Distributor Agents in China [Member] | One Customer [Member] | Two Customers [Member] | Oncology Products and Aggrastat Product Sales [Member] | Oncology Products and Aggrastat Product Sales [Member] | ||||||
customer | customer | |||||||||||||||||
Basis of Presentation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | ' | ' |
Maximum sales revenue percentage contributed by other importers or distributors | 10.00% | 10.00% | 10.00% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $35,600,000 | ' | ' | ' | ' |
Percentage of accounts receivable, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 95.00% | ' | ' | ' | ' |
Shares excluded from the calculation of diluted net income per share | ' | ' | ' | ' | ' | 3,187,073 | 5,298,836 | 3,329,853 | 3,272,577 | 12,500 | 12,500 | 126,113 | 112,500 | ' | ' | ' | ' | ' |
Product returns reserve amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 100,000 |
Service revenue subject to refund | 2,300,000 | ' | 6,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for accounts | 2,177,000 | ' | 2,177,000 | ' | 1,169,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 2,100,000 | ' | ' |
Total accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,500,000 | $4,100,000 | ' | ' |
Basis_Of_Presentation_Schedule
Basis Of Presentation (Schedule Of Revenue By Major Customers By Reporting Segments) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Customer A [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of sales to importing or distributor agents | 68.00% | 56.00% | 68.00% | 56.00% |
Customer B [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of sales to importing or distributor agents | 26.00% | 20.00% | 26.00% | 19.00% |
Customer C [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Percentage of sales to importing or distributor agents | ' | 13.00% | ' | 16.00% |
Basis_Of_Presentation_Reconcil
Basis Of Presentation (Reconciliation Of The Numerator And Denominators Of The Basic And Diluted Net Income Per Share Computations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Basis Of Presentation [Abstract] | ' | ' | ' | ' |
Net income (loss) | $8,708 | ($13,161) | $10,928 | $7,732 |
Weighted-average shares outstanding used to compute basic net income (loss) per share | 53,591 | 56,617 | 53,931 | 57,184 |
Effect of dilutive securities | 1,479 | ' | 1,399 | 1,977 |
Weighted-average shares outstanding used to compute diluted net income (loss) per share | 55,070 | 56,617 | 55,330 | 59,161 |
Basic net income (loss) per share | $0.16 | ($0.23) | $0.20 | $0.14 |
Diluted net income (loss) per share | $0.16 | ($0.23) | $0.20 | $0.13 |
AvailableForSale_Investments_D
Available-For-Sale Investments (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | $35,581,000 | $35,581,000 | $44,031,000 |
Unrealized Gains | ' | ' | ' |
Unrealized Losses | ' | ' | ' |
Unrealized Losses for More Than 12 Months | ' | ' | -67,000 |
Estimated Fair Value | 35,581,000 | 35,581,000 | 43,964,000 |
Certificates of Deposit [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 75,000 | 75,000 | 75,000 |
Unrealized Gains | ' | ' | ' |
Unrealized Losses | ' | ' | ' |
Estimated Fair Value | 75,000 | 75,000 | 75,000 |
Money Market Funds [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 35,506,000 | 35,506,000 | 43,505,000 |
Unrealized Gains | ' | ' | ' |
Unrealized Losses | ' | ' | ' |
Estimated Fair Value | 35,506,000 | 35,506,000 | 43,505,000 |
Restricted Italian State Bonds Maturing In 2013 [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | ' | ' | 451,000 |
Unrealized Gains | ' | ' | ' |
Unrealized Losses for More Than 12 Months | ' | ' | -67,000 |
Estimated Fair Value | ' | ' | 384,000 |
Realized loss on available-for-sale investment | $100,000 | $100,000 | ' |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | |
Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Contingent consideration | $562,000 | ' | $562,000 | ' | $13,325,000 | $15,400,000 |
Fair value of contingent consideration for earn-out | 600,000 | ' | 600,000 | 0 | ' | ' |
Change in fair value of contingent consideration | -12,773,000 | ' | -14,860,000 | ' | ' | ' |
Estimation of fair value of contingent consideration volatility rate | ' | 40.00% | ' | ' | ' | ' |
Risk-adjusted discount rate to estimate fair value of contingent consideration | ' | 20.00% | ' | ' | ' | ' |
Risk-free rate in the fair value measurement of the contingent consideration | ' | 0.13% | ' | ' | ' | ' |
Counterparty risk percentage used in the fair value measurement of the contingent consideration | ' | 5.00% | ' | ' | ' | ' |
NovaMed [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Contingent consideration | ' | 43,000,000 | ' | ' | ' | ' |
Contingent consideration, maximum increase | ' | 10,000,000 | ' | ' | ' | ' |
Contingent consideration, maximum decrease | ' | 10,000,000 | ' | ' | ' | ' |
Earn out provision, days due after completion of audit | ' | ' | '20 days | ' | ' | ' |
Contingent Consideration By Revenue [Member] | Minimum [Member] | NovaMed [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Contingent consideration, potential future revenue | ' | 94,200,000 | ' | ' | ' | ' |
Contingent consideration, potential cash payment | ' | 0 | ' | ' | ' | ' |
Contingent Consideration By Revenue [Member] | Maximum [Member] | NovaMed [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Contingent consideration, potential future revenue | ' | 117,800,000 | ' | ' | ' | ' |
Contingent consideration, potential cash payment | ' | 11,500,000 | ' | ' | ' | ' |
Contingent Consideration By EBITDA [Member] | Minimum [Member] | NovaMed [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Contingent consideration, potential cash payment | ' | 17,200,000 | ' | ' | ' | ' |
Contingent consideration, potential earnings before income taxes, depreciation, and amortization | ' | 91,800,000 | ' | ' | ' | ' |
Contingent Consideration By EBITDA [Member] | Maximum [Member] | NovaMed [Member] | ' | ' | ' | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' | ' | ' | ' |
Contingent consideration, potential cash payment | ' | 21,500,000 | ' | ' | ' | ' |
Contingent consideration, potential earnings before income taxes, depreciation, and amortization | ' | $137,800,000 | ' | ' | ' | ' |
Fair_Value_Measurements_Financ
Fair Value Measurements (Financial Assets And Liability Measured At Fair Value On A Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | $35,581 | $43,964 |
Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 35,506 | 43,889 |
Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 75 | 75 |
Certificates of Deposit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 75 | 75 |
Certificates of Deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 75 | 75 |
Money Market Funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 35,506 | 43,505 |
Money Market Funds [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | 35,506 | 43,505 |
Restricted Italian State Bonds Maturing In 2013 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | ' | 384 |
Restricted Italian State Bonds Maturing In 2013 [Member] | Quoted Prices In Active Markets For Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Assets, Fair Value | ' | $384 |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Change In Estimated Fair Value Of Contingent Consideration) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2012 |
Fair Value Measurements [Abstract] | ' | ' |
Balance at beginning of period | $13,325 | $15,400 |
Foreign currency translation | 10 | 22 |
Change in the estimated fair value of the contingent consideration liability | -12,773 | -14,860 |
Balance at end of period | $562 | $562 |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventories [Abstract] | ' | ' |
Raw materials | $2,953,000 | $3,184,000 |
Work in progress | 872,000 | 904,000 |
Finished goods | 6,025,000 | 6,336,000 |
Inventory, net | 9,850,000 | 10,424,000 |
Inventory held | $2,800,000 | $2,300,000 |
Loan_Agreement_Details
Loan Agreement (Details) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | CNY | Standby Letters of Credit [Member] | |
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' |
Line of credit facility, expiration date | ' | ' | 29-Aug-13 | ' | ' | ' |
Line of credit interest rate during year | ' | ' | ' | ' | ' | 7.50% |
Debt financing facility, maximum borrowing capacity | $2,000,000 | ' | $2,000,000 | ' | 12,500,000 | ' |
Interest paid | $7,000 | $0 | $100,000 | $0 | ' | ' |
Accrued_And_Other_Current_Liab2
Accrued And Other Current Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued And Other Current Liabilities [Abstract] | ' | ' |
Accrued sales and marketing expenses | $7,716 | $9,051 |
Accrued taxes, tax reserves and interest | 5,453 | 4,410 |
Accrued compensation and benefits | 2,558 | 3,232 |
Accrued professional fees | 2,206 | 1,570 |
Other | 2,636 | 3,164 |
Accrued and other current liabilities, total | $20,569 | $21,427 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated Other Comprehensive Income (Loss) [Abstract] | ' | ' | ' | ' |
Foreign Currency Translation, Beginning balance | $3,309 | ' | $3,055 | ' |
Foreign Currency Translation, Other comprehensive income (loss) before reclassifications | 436 | ' | 690 | ' |
Foreign Currency Translation, Amounts reclassified out of accumulated other comprehensive income (loss) to other income (expense), net | ' | ' | ' | ' |
Foreign Currency Translation, Net current period other comprehnsive income | 436 | ' | 690 | ' |
Foreign Currency Translation, Balance as of September 30, 2013 | 3,745 | ' | 3,745 | ' |
Available-for-Sale Investments, Beginning balance | -73 | ' | -67 | ' |
Available-for-Sale Investments, Other comprehensive income (loss) before reclassifications | -4 | ' | -4 | ' |
Available-for-Sale Investments, Amounts reclassified out of accumulated other comprehensive income (loss) to other income (expense), net | 77 | ' | 71 | ' |
Available-for-Sale Investments, Net current period other comprehnsive income | 73 | ' | 67 | ' |
Available-for-Sale Investments, Balance as of September 30, 2013 | ' | ' | ' | ' |
Beginning balance | 3,236 | ' | 2,988 | ' |
Other comprehensive income (loss) before reclassifications | 432 | ' | 686 | ' |
Amounts reclassified out of accumulated other comprehensive income (loss) to other income (expense), net | 77 | ' | 71 | ' |
Net current period other comprehensive income | 509 | 704 | 757 | 350 |
Balance as of September 30, 2013 | $3,745 | ' | $3,745 | ' |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Aug. 31, 2013 | Oct. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Stock-based compensation expenses recognized | ' | ' | $945,000 | $1,163,000 | $3,208,000 | $3,199,000 |
Share repurchase program, approved increase | 10,000,000 | ' | ' | ' | ' | ' |
Share repurchase program, amount authorized | ' | 40,500,000 | ' | ' | 50,500,000 | ' |
Stock repurchased and retired, shares | ' | ' | 1,349,090 | ' | 1,851,490 | ' |
Stock repurchased and retired, value | ' | ' | 7,300,000 | ' | 9,800,000 | ' |
Share repurchase program, remaining amount authorized | ' | ' | ' | ' | 12,300,000 | ' |
Stock Options [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock, options granted, shares | ' | ' | ' | ' | 1,564,500 | ' |
Common stock, option exercises, shares | ' | ' | ' | ' | 564,155 | ' |
Unrecognized compensation expense, net of forfeitures | ' | ' | 4,900,000 | ' | 4,900,000 | ' |
Unrecognized compensation expense, weighted-average remaining period for recognition, in years | ' | ' | ' | ' | '2 years 8 months 12 days | ' |
Performance Shares [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Common stock, options granted, shares | ' | ' | ' | ' | 112,500 | ' |
Number of performance-based options | ' | ' | ' | ' | 3 | ' |
Stock-based compensation, option term | ' | ' | ' | ' | '10 years | ' |
Fair value assumption, method used to calculate grant date fair value per share | ' | ' | ' | ' | 'Black-Scholes option pricing model | ' |
Stock-based compensation expenses recognized | ' | ' | 37,000 | -69,000 | 37,000 | -7,000 |
RSUs [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Unrecognized compensation expense, net of forfeitures | ' | ' | $900,000 | ' | $900,000 | ' |
Unrecognized compensation expense, weighted-average remaining period for recognition, in years | ' | ' | ' | ' | '1 year 6 months 22 days | ' |
RSUs granted, shares | ' | ' | ' | ' | 170,000 | ' |
RSUs vested, shares | ' | ' | ' | ' | 37,932 | ' |
Minimum [Member] | Performance Shares [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value assumption, expected term, in years | ' | ' | ' | ' | '4 years 11 months 12 days | ' |
Fair value assumption, volatility factor | ' | ' | ' | ' | 61.74% | ' |
Fair value assumption, risk free interest rate | ' | ' | ' | ' | 0.95% | ' |
Maximum [Member] | Performance Shares [Member] | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value assumption, expected term, in years | ' | ' | ' | ' | '5 years 2 months 19 days | ' |
Fair value assumption, volatility factor | ' | ' | ' | ' | 64.65% | ' |
Fair value assumption, risk free interest rate | ' | ' | ' | ' | 1.49% | ' |
Stockholders_Equity_StockBased
Stockholders' Equity (Stock-Based Compensation Expenses Included In The Condensed Consolidated Statements Of Operations) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses recognized | $945,000 | $1,163,000 | $3,208,000 | $3,199,000 |
Sales And Marketing [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses recognized | 321,000 | 353,000 | 875,000 | 969,000 |
Research And Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses recognized | 42,000 | 71,000 | 74,000 | 249,000 |
General And Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Stock-based compensation expenses recognized | $582,000 | $739,000 | $2,259,000 | $1,981,000 |
Licensing_Agreements_Narrative
Licensing Agreements (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 1 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | 13-May-13 | Jun. 30, 2013 | Sep. 30, 2013 |
Zensun [Member] | TLC [Member] | Scenario, Forecast [Member] | |||
Zensun [Member] | |||||
Licensing Agreements [Line Items] | ' | ' | ' | ' | ' |
Commitment agreement payment amount | ' | ' | $18.50 | $39.50 | ' |
Commitment agreement additional payment amount | ' | ' | 10 | ' | ' |
Commitment agreement further payments upon approval for new indications of product | ' | ' | 25 | ' | ' |
Collateralized loan amount, maximum | ' | ' | 12 | ' | ' |
Collateralized loan, anticipated amount of funding | ' | ' | ' | ' | 2.3 |
Research and development expense related to in-licensing deals | $0 | $5 | ' | ' | ' |
Escrow_Settlement_Agreement_Na
Escrow Settlement Agreement (Narrative) (Details) (NovaMed [Member], USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |
In Millions, except Share data, unless otherwise specified | Jul. 08, 2013 | Oct. 16, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
NovaMed [Member] | ' | ' | ' | ' |
Escrow Settlement Agreement [Line Items] | ' | ' | ' | ' |
Cash held in escrow not released | ' | $1.40 | ' | ' |
Common stock held in escrow not released | ' | 622,363 | ' | ' |
Escrow settlement, cash | 0.8 | ' | ' | ' |
Escrow settlement, common stock retained | 342,300 | ' | ' | ' |
Escrow settlement, cash and shares combined value | $2.60 | ' | $2.60 | $2.60 |
Segment_Information_And_Geogra2
Segment Information And Geographic Data (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Jul. 08, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Research and development expense related to in-licensing deals | ' | $0 | $5 |
NovaMed [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Escrow settlement, cash and shares combined value | 2.6 | 2.6 | 2.6 |
China [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Research and development expense related to in-licensing deals | ' | ' | 5 |
Rest Of The World (Including the US and Hong Kong) [Member] | NovaMed [Member] | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Escrow settlement, cash and shares combined value | ' | ' | $2.60 |
Segment_Information_And_Geogra3
Segment Information And Geographic Data (Summary Information By Operating Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | $35,226 | $40,693 | $94,324 | $123,130 |
Income (loss) from operations | 6,132 | -19,215 | 9,614 | 3,901 |
Non-operating income (expense) | 2,729 | -36 | 2,742 | -116 |
Income (loss) before provision for income tax | 8,861 | -19,251 | 12,356 | 3,785 |
China [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 33,968 | 39,682 | 90,949 | 120,548 |
Income (loss) from operations | 9,873 | -29,427 | 23,831 | -1,415 |
Non-operating income (expense) | 152 | -39 | 197 | -113 |
Income (loss) before provision for income tax | 10,025 | -29,466 | 24,028 | -1,528 |
Rest Of The World (Including the US and Hong Kong) [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Revenues | 1,258 | 1,011 | 3,375 | 2,582 |
Income (loss) from operations | -3,741 | 10,212 | -14,217 | 5,316 |
Non-operating income (expense) | 2,577 | 3 | 2,545 | -3 |
Income (loss) before provision for income tax | ($1,164) | $10,215 | ($11,672) | $5,313 |
Segment_Information_And_Geogra4
Segment Information And Geographic Data (Long-Lived Assets By Operating Segment) (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | $36,447,000 | $36,447,000 |
Research and development expense related to in-licensing deals | 0 | 5,000,000 |
China [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | 36,013,000 | 36,013,000 |
Research and development expense related to in-licensing deals | ' | 5,000,000 |
Rest Of The World (Including the US and Hong Kong) [Member] | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Long-lived assets | $434,000 | $434,000 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Nov. 10, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Sanofi [Member] | Sanofi [Member] | Sanofi [Member] | |||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchased and retired, shares | ' | 1,349,090 | ' | 1,851,490 | ' | 274,383 | ' | ' | ' | ' | ' |
Stock repurchased and retired, value | ' | $7,300,000 | ' | $9,800,000 | ' | $1,400,000 | ' | ' | ' | ' | ' |
Share repurchase program, remaining amount authorized | ' | ' | ' | 12,300,000 | ' | 11,000,000 | ' | ' | ' | ' | ' |
Share repurchase program, amount authorized | 40,500,000 | ' | ' | 50,500,000 | ' | ' | ' | ' | ' | ' | ' |
Promotion services | ' | 9,953,000 | 8,556,000 | 26,835,000 | 24,546,000 | ' | ' | ' | 25,000,000 | 30,800,000 | 19,700,000 |
Service revenue subject to refund | ' | $2,300,000 | ' | $6,200,000 | ' | ' | $2,300,000 | $6,200,000 | ' | ' | ' |