Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ARIAD PHARMACEUTICALS INC | |
Trading Symbol | ARIA | |
Entity Central Index Key | 884,731 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 192,713,138 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 273,047 | $ 230,888 |
Marketable securities | 5,497 | 11,407 |
Accounts receivable, net | 14,106 | 15,686 |
Inventory, net | 903 | 1,096 |
Other current assets | 13,567 | 16,120 |
Total current assets | 307,120 | 275,197 |
Restricted cash | 10,874 | 11,308 |
Property and equipment, net | 300,962 | 254,082 |
Intangible and other assets, net | 5,411 | 6,105 |
Total assets | 624,367 | 546,692 |
Current liabilities: | ||
Accounts payable | 8,111 | 17,013 |
Current portion of long-term debt | 24,522 | 13,872 |
Accrued compensation and benefits | 8,828 | 25,331 |
Accrued product development expenses | 22,063 | 22,132 |
Other accrued expenses | 21,292 | 22,849 |
Current portion of deferred revenue | 10,550 | 6,763 |
Other current liabilities | 5,297 | 24,324 |
Total current liabilities | 100,663 | 132,284 |
Long-term debt | 466,757 | 429,220 |
Other long-term liabilities | 6,086 | 11,244 |
Deferred revenue | 88,750 | 77,085 |
Total liabilities | 662,256 | 649,833 |
Commitments | ||
Stockholders’ equity (deficit): | ||
Preferred stock, $.01 par value, authorized 10,000,000 shares, none issued and outstanding | 0 | 0 |
Common stock, $.001 par value, authorized 450,000,000 shares; issued and outstanding 192,121,405 shares in 2016 and 189,662,148 shares in 2015 | 192 | 190 |
Additional paid-in capital | 1,350,697 | 1,338,585 |
Accumulated other comprehensive (loss) income | 912 | 3,835 |
Accumulated deficit | (1,389,690) | (1,445,751) |
Total stockholders’ equity (deficit) | (37,889) | (103,141) |
Total liabilities and stockholders’ equity (deficit) | $ 624,367 | $ 546,692 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 192,121,405 | 189,662,148 |
Common stock, shares outstanding (in shares) | 192,121,405 | 189,662,148 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue: | ||||
Product revenue, net | $ 65,326 | $ 27,818 | $ 98,960 | $ 51,719 |
License, collaboration and other revenue | 2,799 | 1,420 | 4,763 | 1,510 |
Total revenue | 68,125 | 29,238 | 103,723 | 53,229 |
Operating expenses: | ||||
Cost of product revenue | 1,108 | 488 | 1,594 | 1,183 |
Research and development expense | 42,864 | 38,739 | 86,943 | 78,183 |
Selling, general and administrative expense | 34,242 | 48,622 | 70,219 | 82,172 |
Transaction costs | 1,482 | 0 | 1,482 | 0 |
Restructuring charges | 92 | 0 | 3,010 | 0 |
Total operating expenses | 79,788 | 87,849 | 163,248 | 161,538 |
Loss from operations | (11,663) | (58,611) | (59,525) | (108,309) |
Other income (expense), net: | ||||
Interest income | 31 | 22 | 55 | 41 |
Interest expense | (5,401) | (3,813) | (10,348) | (7,668) |
Other Income, net | 128,664 | 0 | 128,664 | 0 |
Foreign exchange (loss) gain | (29) | (458) | (779) | 615 |
Other income (expense), net | 123,265 | (4,249) | 117,592 | (7,012) |
Income (loss) before provision for income taxes | 111,602 | (62,860) | 58,067 | (115,321) |
Provision for income taxes | 1,754 | 300 | 2,006 | 514 |
Net income (loss) | $ 109,848 | $ (63,160) | $ 56,061 | $ (115,835) |
Net income (loss) per share: | ||||
Basic (in usd per share) | $ 0.57 | $ (0.33) | $ 0.29 | $ (0.62) |
Diluted (in usd per share) | $ 0.56 | $ (0.33) | $ 0.29 | $ (0.62) |
Shares used in net income (loss) per share calculations: | ||||
Basic (in shares) | 191,485 | 188,598 | 190,894 | 188,220 |
Diluted (in shares) | 194,569 | 188,598 | 193,504 | 188,220 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 109,848 | $ (63,160) | $ 56,061 | $ (115,835) |
Other comprehensive income (loss): | ||||
Net unrealized loss on marketable securities | (1,923) | 0 | (5,909) | 0 |
Cumulative translation adjustment, net of tax of $0 | (12) | (77) | (44) | 159 |
Defined benefit pension obligation, net of tax of $0 | 36 | (495) | 91 | (418) |
Reclassification of cumulative translation adjustment and pension obligation adjustments to earnings upon sale of European operations | 2,939 | 0 | 2,939 | 0 |
Other comprehensive income (loss) | 1,040 | (572) | (2,923) | (259) |
Comprehensive income (loss) | $ 110,888 | $ (63,732) | $ 53,138 | $ (116,094) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Cumulative translation adjustment, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Defined benefit pension obligation, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 56,061 | $ (115,835) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation, amortization and impairment charges | 7,300 | 5,762 |
Stock-based compensation | 9,377 | 19,078 |
Repayment of interest related to facility lease obligation | (2,572) | 0 |
Reclassification of currency translation adjustment and pension obligation adjustments to earnings upon sale of European operations | 2,939 | 0 |
Gain on the Incyte transaction | (131,575) | 0 |
Increase (decrease) from: | ||
Accounts receivable | (7,448) | (6,022) |
Inventory | (1,122) | (347) |
Other current assets | (1,027) | 12,151 |
Other assets | 1,522 | 527 |
Accounts payable | (6,789) | 97 |
Accrued compensation and benefits | (10,593) | (7,585) |
Current portion of long-term facility lease obligation | 0 | 393 |
Accrued product development expenses | (69) | 5,484 |
Other accrued expenses | 7,514 | 1,381 |
Other liabilities | (23,908) | 2,828 |
Deferred revenue | 2,643 | 3,471 |
Net cash used in operating activities | (97,747) | (78,617) |
Cash flows from investing activities: | ||
Investment in property and equipment | (31,504) | (2,700) |
Proceeds from the Incyte transaction, net of $4,484 of cash transferred | 144,847 | 0 |
Net cash provided by (used in) investing activities | 113,343 | (2,700) |
Cash flows from financing activities: | ||
Repayment of long-term debt | (2,889) | 0 |
Reimbursements of amounts related to facility lease obligation | 26,759 | 15 |
Proceeds from issuance of common stock pursuant to stock option and purchase plans | 4,074 | 2,620 |
Payment of tax withholding obligations related to stock compensation | (1,337) | (174) |
Net cash provided by financing activities | 26,607 | 2,461 |
Effect of exchange rates on cash | (44) | 134 |
Net increase (decrease) in cash and cash equivalents | 42,159 | (78,722) |
Cash and cash equivalents, beginning of period | 230,888 | 352,688 |
Cash and cash equivalents, end of period | 273,047 | 273,966 |
Supplemental disclosures: | ||
Capitalization of construction-in-progress related to facility lease obligation | 8,068 | 22,911 |
Non-cash transaction – property and equipment included in accounts payable or accruals | 4,054 | 587 |
Non-cash transaction – sublease tenant improvements related to facility lease obligation | 11,788 | 0 |
Non-cash transaction – marketable equity securities recorded at fair market value | $ (5,909) | $ 0 |
Business
Business | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Business Nature of Business Unless the context requires otherwise, references to “ARIAD,” “Company,” “we,” “our,” and “us,” in this quarterly report refer to ARIAD Pharmaceuticals, Inc. and its subsidiaries. Headquartered in Cambridge, Massachusetts, ARIAD is focused on discovering, developing and commercializing precision therapies for patients with rare cancers. ARIAD is working on new medicines to advance the treatment of rare forms of chronic and acute leukemia, lung cancer and other rare cancers. The Company has one approved cancer medicine, Iclusig® (ponatinib), for the treatment of certain patients with chronic myeloid leukemia (“CML”) and Philadelphia chromosome positive acute lymphoblastic leukemia (“Ph+ ALL”). The Company sells Iclusig directly in the United States and has partnered with third parties to commercialize Iclusig in selected territories throughout the rest of the world, including Europe, Japan and the Far East, Canada, Australia, Latin America, Israel and the Middle East and North Africa. The Company is also developing Iclusig in earlier lines of therapy and for additional cancer indications. In addition to Iclusig, the Company is developing two product candidates for the treatment of certain rare forms of lung cancer. Brigatinib is the Company’s next most advanced drug candidate, which it is developing for the treatment of certain patients with a form of non-small cell lung cancer, or NSCLC. The Company has completed enrollment in a pivotal Phase 2 clinical trial of brigatinib and initiated the filing of a new drug application, or NDA, in the United States for the treatment of patients with aplastic lymphoma kinase, or ALK, positive NSCLC who are resistant to the drug crizotinib. The Company is also studying brigatinib in a Phase 3 clinical trial as a potential first-line therapy. AP32788 is the Company’s most recently discovered drug candidate, and is being developed for the treatment of patients with NSCLC with specific mutations in the EGFR or HER2 kinases. The Company is currently studying AP32788 in a Phase 1/2 proof-of-concept clinical trial. In addition to its clinical development programs, the Company has a focused drug discovery program centered on small-molecule therapies that are molecularly targeted to cell-signaling pathways implicated in cancer, and is also seeking to apply the Company’s core competency in kinase inhibitors for precision therapies to explore the potential for the use of small molecules in immuno-oncology. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements are unaudited. The Company has prepared the condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2015 . The condensed consolidated balance sheet as of December 31, 2015 was derived from the audited consolidated balance sheet included in the Annual Report on Form 10-K for the year ended December 31, 2015 . The Company has prepared the accompanying condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2016 . The Company's significant accounting policies were described in Note 1 to its consolidated financial statements included in its Annual Report on Form 10-K for the fiscal year ended December 31, 2015. There have been no significant changes to the Company's accounting policies since December 31, 2015. Foreign Currency The net total of realized and unrealized transaction losses and gains was a loss of $0.1 million and $0.5 million , respectively, for the three month periods ended June 30, 2016 and 2015. The net total of realized and unrealized transaction losses and gains was a loss of $0.9 million and a gain of $0.6 million , respectively, for the six -month periods ended June 30, 2016 and 2015 . Marketable Securities Marketable securities consist of 687,139 shares of common stock of REGENXBIO, Inc. (“REGENXBIO”), which became a publicly traded company in September 2015. At June 30, 2016 these shares had a value of $5.5 million . The Company obtained these shares in connection with a license agreement it entered into with REGENXBIO in November 2010 for certain gene expression regulation technology. The Company was restricted from trading these securities until March 14, 2016 pursuant to an agreement it entered into with REGENXBIO. The Company has classified these shares as “available for sale” investments and recognized an unrealized loss of $1.9 million and $5.9 million for the three and six -month periods ended June 30, 2016 , respectively, using a Level 1 valuation input, which has been excluded from the determination of net income (loss) and is recorded in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, in the three and six -month periods ended June 30, 2016 . These shares had been accounted for using the equity method with a carrying value of zero due to losses incurred by REGENXBIO in previous years. Accrued Rent The Company recognizes rent expense for leases with increasing annual rents on a straight-line basis over the term of the lease. The amount of rent expense in excess of cash payments is classified as accrued rent. Any lease incentives received are deferred and amortized over the term of the lease. At June 30, 2016 and December 31, 2015 , the amount of accrued rent was $4.4 million and $5.4 million for each period. Of these amounts, at June 30, 2016 and December 31, 2015 , $3.8 million and $4.8 million for each period was included in other long-term liabilities, with the remaining $0.6 million as of both June 30, 2016 and December 31, 2015 , respectively, included in other current liabilities. Product Revenue, Net The following table summarizes the activity in each of the product revenue allowances and reserve categories for the six -month period ended June 30, 2016 : In thousands Trade Allowances Rebates, Chargebacks and Discounts Other Incentives/ Returns Total Balance, January 1, 2016 $ 111 $ 4,460 $ 551 $ 5,122 Provision 375 6,036 363 6,774 Payments or credits (331 ) (4,936 ) (250 ) (5,517 ) Balance, March 31, 2016 155 5,560 664 6,379 Provision 457 12,147 (270 ) 12,334 Payments or credits (464 ) (6,071 ) (94 ) (6,629 ) Adjustments — (4,684 ) (55 ) (4,739 ) Balance, June 30, 2016 $ 148 $ 6,952 $ 245 $ 7,345 The adjustments recorded during the three-months ended June 30, 2016 relate to the Incyte transaction, including the sale of ARIAD's European operations. As part of the transaction, the allowance and reserves relating to ARIAD's European subsidiaries transferred to Incyte. In 2012, prior to the Company obtaining marketing authorization for Iclusig in Europe, the French regulatory authority granted an Autorisation Temporaire d’Utilisation (ATU), or Temporary Authorization for Use, for Iclusig for the treatment of patients with CML and Ph+ ALL under a nominative program on a patient-by-patient basis. Upon completion of this program, the Company became eligible to ship Iclusig directly to customers in France as of October 1, 2013. Negotiations with the Economic Committee on Health Care Products in France regarding pricing and reimbursement for Iclusig concluded during the quarter ended June 30, 2016. As a result, the Company recorded revenue of $25.5 million related to cumulative shipments to customers in France during the the three months ended June 30, 2016 ( $22.5 million is related to shipments through 2015 and $3.0 million is related to shipments in 2016 through May 31, 2016). The revenue recorded in 2016 related to product shipments in France prior to the close of the transaction with Incyte on June 1, 2016. At June 30, 2016, the Company has recorded a liability in the amount of $4.5 million recorded within Other Current Liabilities related to the clawback settlement based on the final approved price of Iclusig with the Ministry of Health in France, which represents the amount the Company expects to remit to the Ministry of Health. The Company has entered into distributor arrangements for Iclusig in a number of territories including Australia, Canada, Israel, Latin America, Middle East and North Africa, certain countries in central and Eastern Europe, and Turkey and Japan and the Far East. The Company recognizes net product revenue from sales of Iclusig under these arrangements when all criteria for revenue recognition have been satisfied. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of accounts receivable from customers and cash held at financial institutions. The Company believes that such customers and financial institutions are of high credit quality. As of June 30, 2016 , a portion of the Company’s cash and cash equivalent accounts were concentrated at a single financial institution, which potentially exposes the Company to credit risks. The Company does not believe that there is significant risk of non-performance by the financial institution and the Company’s cash on deposit at this financial institution is fully liquid. For the three and six -month period ended June 30, 2016 one individual customer accounted for 50 percent and 58 percent of net product revenue, respectively. For both the three and six -month period ended June 30, 2015 one individual customer accounted for 78 percent of net product revenue. As of June 30, 2016 , one individual customer accounted for 90 percent of accounts receivable. As of June 30, 2015 , one individual customer accounted for 68 percent of accounts receivable. No other customer accounted for more than 10 percent of net product revenue for either 2016 or 2015 or accounts receivable as of either June 30, 2016 or December 31, 2015 . Segment Reporting and Geographic Information The Company organizes itself into one operating segment reporting to the Chief Executive Officer. For the three-month periods ended June 30, 2016 and 2015 , product revenue from customers outside the United States totaled 50 percent and 22 percent , respectively. For the three month period ended June 30, 2016 , 39 percent of product revenue was generated from customers in France. For the six -month periods ended June 30, 2016 and 2015 , product revenue from customers outside the United States totaled 42 percent and 22 percent , respectively. For the six month period ended June 30, 2016 , 26 percent of product revenue was generated from customers in France. Long lived assets outside the United States totaled $1.4 million at December 31, 2015 . Recent Accounting Pronouncements On February 25, 2016, the FASB issued ASU No. 2016-02- Leases (Topic 842), which provides new guidance on the accounting for leases. The provisions of this guidance are effective for annual periods beginning after December 31, 2018, and for interim periods therein. The Company has not yet assessed the impact of this new standard on its financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which simplifies the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax assets and liabilities, and any related valuation allowance, be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for financial statements issued for fiscal years beginning after December 15, 2016 (and interim periods within those fiscal years) with early adoption permitted. ASU 2015-17 may be either applied prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company is currently evaluating the options for adoption and the impact on its balance sheet presentation. In May 2014, the Financial Accounting Standards Board (FASB) issued a comprehensive new standard which amends revenue recognition principles and provides a single set of criteria for revenue recognition among all industries. The new standard provides a five step framework whereby revenue is recognized when promised goods or services are transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires enhanced disclosures pertaining to revenue recognition in both interim and annual periods. The standard is effective for interim and annual periods beginning after December 15, 2017 and allows for adoption using a full retrospective method, or a modified retrospective method. Entities may elect to early adopt the standard for annual periods beginning after December 15, 2016. The Company is currently assessing the method of adoption and the expected impact the new standard has on its financial position and results of operations. |
Incyte Transaction
Incyte Transaction | 6 Months Ended |
Jun. 30, 2016 | |
Disposal Group, Not Discontinued Operation, Disposal Disclosures [Abstract] | |
Incyte Transaction | Incyte Transaction On May 9, 2016, ARIAD (as guarantor) and its wholly-owned subsidiary ARIAD Pharmaceuticals (Cayman) L.P. (the “Seller”) entered into a Share Purchase Agreement (the “Share Purchase Agreement”) with Incyte Corporation (“Incyte”) (as guarantor) and its wholly-owned subsidiary Incyte Europe S.a.r.l. (“Incyte Europe”), pursuant to which Incyte Europe agreed to acquire from the Seller all of the outstanding shares of ARIAD Pharmaceuticals (Luxembourg) S.a.r.l., the parent company of ARIAD’s European subsidiaries responsible for the commercialization of Iclusig® (ponatinib) in the European Union (“EU”) and other countries, including Switzerland, Norway, Turkey, Israel and Russia (the “Territory”), for an upfront payment of $140 million (the “Upfront Payment”) subject to adjustment for estimated closing working capital balances. In connection with the closing of the transactions on June 1, 2016, the parties also entered into an Amended and Restated Buy-in License Agreement between ARIAD, Incyte (as guarantor) and ARIAD Pharmaceuticals (Europe) S.a.r.l., one of the entities that was acquired by Incyte through the Share Purchase Agreement (the “License Agreement”). Under the terms of the License Agreement, Incyte was granted an exclusive license to develop and commercialize Iclusig in the Territory (the “License”). ARIAD is entitled to receive tiered royalties from Incyte of between 32 percent and 50 percent of net sales of Iclusig in the Territory (the “Royalty Payments”). The Royalty Payments will be subject to adjustment for certain events, including events related to the expiration of statutory or regulatory exclusivity periods for the commercialization of Iclusig in the Territory. In addition, ARIAD is eligible to receive up to $135 million in potential development and regulatory milestones for Iclusig in new oncology indications in the Territory, together with additional milestones for non-oncology indications, if approved, in the Territory (the "Milestone Payments"). Incyte has agreed to contribute up to $7.0 million in each of 2016 and 2017 to fund ARIAD’s OPTIC and OPTIC-2L clinical trials ("Development Costs"). Incyte will also pay ARIAD for any required product supply at a price reflecting ARIADs cost to manufacture. The terms of the License Agreement also include an option (the “Option”) for an acquirer of ARIAD to re-purchase the licensed rights from Incyte, subject to certain conditions. Upon exercise of the Option, ARIAD’s acquirer would be required to make a payment to Incyte equivalent to the Upfront Payment and any Milestone Payments or Development Costs previously paid to ARIAD, and an additional payment based on Iclusig sales in the Territory in the 12 months immediately prior to the exercise of the Option. Following exercise of the Option, Incyte would also be eligible to receive royalties of between 20% to 25% of net sales of Iclusig in the Territory by an acquirer of ARIAD following the effective date of the re-purchase of the License. The Option cannot be exercised before the two year anniversary, or after the six year anniversary, of the effective date of the License Agreement. Following exercise of the Option, there is a further transition period of one year before the re-purchase of the License can be made effective. Unless terminated earlier in accordance with its provisions, the term of the License Agreement, including Incyte's obligation to make the full Royalty Payments, will continue in effect on a country-by-country basis until the latest to occur of (1) the expiration date of the composition patent in the relevant country (which, for the countries in Europe covered by the Company's patents, is generally July 2028, subject to a potential six-month extension for pediatric exclusivity), (2) the expiration of any regulatory marketing exclusivity period or other statutory designation that provides similar exclusivity for the commercialization of Iclusig in such country and (3) the seventh anniversary of the first commercial sale of Iclusig in such country; and thereafter, in the absence of generic competition, for a specified period of time in which Incyte will be obligated to pay royalties at a reduced rate. The transaction closed on June 1, 2016. Consideration for the transaction included the $140 million Upfront Payment at closing plus an estimated adjusted working capital payment of $4.8 million . The working capital payment is net of cash acquired in the transaction by Incyte. The agreements contain multiple elements to be delivered subsequent to the closing of the transaction, including regulatory support, ongoing development activities for the OPTIC and OPTIC-2L clinical trials, and supply of product. Each of these elements was determined to have a standalone value. As a result, a portion of the consideration received at closing was allocated to the undelivered elements using the relative selling price method after determining the best estimated selling price for each element. The remaining amount of consideration was included in the determination of the gain recorded on the sale of the European operations. Contingent royalty payments and funding for the OPTIC and OPTIC-2L trials are similarly allocated among the underlying elements if and when the amounts are determined to be payable to ARIAD. Amounts allocated to the sale of the business are immediately recognized in the statement of operations. Amounts allocated to the other elements are recognized in the statement of operations only to the extent each respective element has been delivered. Net proceeds for the purpose of calculating the Company's gain on the Incyte transaction were $150.5 million , consisting of $144.8 million received at closing, $7.5 million of net liabilities residing with the Company's European subsidiaries that were transferred to Incyte, partially offset by $1.8 million related to an expected refund to Incyte related to a final working capital adjustment. Approximately $131.6 million of the consideration was allocated to the sale of the business and the remaining $18.9 million was allocated to the undelivered elements described above. The Company also record a $2.9 million loss related to the reclassification into earnings the accumulated other comprehensive income associated with the cumulative translation adjustments and pension liability adjustment related to the Company's European subsidiaries. The reclassification was recorded upon transfer of the Company's European subsidiaries to Incyte as part of the transaction. The net gain recorded in other income, net during the three and six-month periods ended June 30, 2016 was $128.7 million . Consideration allocated to the regulatory support, research and development and supply activities will be recognized over the applicable performance periods. Revenue related to the research and development and regulatory support will be recognized on a proportional performance basis. Amortization of deferred revenue attributed to each of the undelivered elements will be included in other revenue as the sale of these services is considered part of ARIAD’s ongoing major or central operations. This transaction did not qualify as a discontinued operation as it was not considered to be a strategic shift by the Company. |
License and Collaboration Agree
License and Collaboration Agreements | 6 Months Ended |
Jun. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
License and Collaboration Agreements | License and Collaboration Agreements Otsuka Pharmaceutical Co. Ltd In December 2014, the Company entered into a collaboration agreement (the “Collaboration Agreement”) with Otsuka Pharmaceutical Co., Ltd. (“Otsuka”) pursuant to which Otsuka will commercialize and further develop Iclusig in Japan, China, South Korea, Indonesia, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Vietnam (the “Territory”). In consideration for the licenses and other rights contained in the Collaboration Agreement, Otsuka paid the Company a non-refundable upfront payment of $77.5 million , less a refundable withholding tax in Japan of $15.8 million that was received in 2015, and has agreed to pay the Company up to $80 million in future milestone payments upon obtaining further regulatory approvals in the Territory. Otsuka will pay royalties based on a percentage of net sales in each country until the later of (i) the expiry date of the composition patent in each country, (ii) the expiration of any orphan drug exclusivity period or other statutory designation that provides similar exclusivity, or (iii) 10 years after the date of first commercial sale in such country. Otsuka will also pay for the supply of Iclusig purchased from the Company at a price based on a percentage of net sales in each country. The Collaboration Agreement continues until the later of (x) the expiration of all royalty obligations in the Territory, or (y) the last sale by Otsuka in the Territory, or the last to expire patent in the Territory which is currently expected to be 2029. Under certain conditions, the Collaboration Agreement may be terminated by either party, in which case the Company would receive all rights to the regulatory filings related to Iclusig at our request, and the licenses granted to Otsuka would be terminated. The nonrefundable upfront cash payment has been recorded as deferred revenue on the Company's balance sheet and is being recognized as revenue on a straight-line basis over the estimated term (currently estimated to extend through 2029), beginning at the point at which the Company began to provide all elements included in the Collaboration Agreement, which occurred in April 2015. Medinol Ltd. The Company entered into an agreement with Medinol Ltd. (“Medinol”) in 2005 pursuant to which the Company granted to Medinol a non-exclusive, world-wide, royalty-bearing license, under its patents and technology to develop, manufacture and sell stents and other medical devices to deliver the Company’s mTOR inhibitor, ridaforolimus, to prevent reblockage of injured vessels following stent-assisted angioplasty. The term of the license agreement extends to the later to occur of the expiration of the Company’s patents relating to the rights granted to Medinol under the license agreement or fifteen years after the first commercial sale of a product developed under the agreement. The license agreement provides for the payment by Medinol to the Company of an upfront license fee, payments based on achievement of development, regulatory and commercial milestones and royalties based on commercial sale of products developed under the agreement. In January 2014, Medinol initiated two registration trials of its ridaforolimus-eluting stent system. The Company is eligible to receive additional regulatory, clinical and commercial milestone payments of up to $34.8 million under the agreement if two products are successfully developed and commercialized. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory All of the Company’s inventories relate to the manufacturing of Iclusig. The following table sets forth the Company’s inventories as of June 30, 2016 and December 31, 2015 : In thousands 2016 2015 Raw materials $ 482 $ 813 Work-in-process 1,289 89 Finished goods 814 1,007 Total 2,585 1,909 Current portion (903 ) (1,096 ) Non-current portion included in intangible and other assets, net $ 1,682 $ 813 The Company has not capitalized inventory costs related to its other drug development programs. Non-current inventory consists of work-in-process inventory that was manufactured in order to provide adequate supply of Iclusig and to support continued clinical development. The Company evaluates its inventory balances quarterly and if the Company identifies excess, obsolete or unsalable inventory, it writes down its inventory to its net realizable value in the period it is identified. These adjustments are recorded based upon various factors, including the level of product manufactured by the Company, the level of product in the distribution channel, current and projected demand for the foreseeable future and the expected shelf-life of the inventory components. The Company recorded such adjustments of $0.2 million for the three-month period ended June 30, 2016 and $0.3 million and $0.2 million for the six -month periods ended June 30, 2016 and 2015 , respectively, which are recorded as a component of cost of product revenue in the accompanying condensed consolidated statements of operations. Inventory that is not expected to be used within one year is included in other assets, net, on the accompanying condensed consolidated balance sheet. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net, was comprised of the following at June 30, 2016 and December 31, 2015 : In thousands 2016 2015 Leasehold improvements $ 23,581 $ 23,609 Construction in progress 292,683 246,669 Equipment and furniture 29,158 26,388 345,422 296,666 Less accumulated depreciation and amortization (44,460 ) (42,584 ) Property and Equipment, Net $ 300,962 $ 254,082 As of June 30, 2016 and December 31, 2015 , the Company has recorded construction in progress of $292.7 million and $246.7 million , and a related facility lease obligation of $275.8 million and $231.7 million , respectively, related to a lease for a new facility under construction in Cambridge, Massachusetts. See Notes 9 and 10. Depreciation and amortization expense was $1.2 million and $0.8 million for the three-month periods ended June 30, 2016 and 2015 , respectively, and $2.4 million and $1.7 million for the six -month periods ended June 30, 2016 and 2015 , respectively. |
Intangible and Other Assets, Ne
Intangible and Other Assets, Net | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible and Other Assets, Net | Intangible and Other Assets, Net Intangible and other assets, net, were comprised of the following at June 30, 2016 and December 31, 2015 : In thousands 2016 2015 Capitalized patent and license costs $ 5,975 $ 5,975 Less accumulated amortization (5,117 ) (5,076 ) 858 899 Inventory, non-current 1,682 813 Other assets 2,871 4,393 Intangible and Other Assets, Net $ 5,411 $ 6,105 |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other Current Liabilities Other current liabilities consisted of the following at June 30, 2016 and December 31, 2015 : In thousands 2016 2015 Amounts received in advance of revenue recognition $ 4,476 $ 23,545 Other 821 779 Total $ 5,297 $ 24,324 Amounts received in advance of revenue recognition consist of payments received from customers in France. Negotiations with the Economic Committee on Health Care Products in France regarding pricing and reimbursement for Iclusig concluded during the quarter ended June 30, 2016 (see Note 2). The Company will refund approximately $4.5 million based on the completed pricing and reimbursement negotiations. |
Long-term Debt
Long-term Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consisted of the following at June 30, 2016 and December 31, 2015 : In thousands 2016 2015 Convertible notes, net $ 168,884 $ 164,438 Royalty financing, net 46,619 46,921 Facility lease obligation 275,776 231,733 491,279 443,092 Less current portion (24,522 ) (13,872 ) Long term portion $ 466,757 $ 429,220 Convertible Notes due 2019 In June 2014, the Company issued $200.0 million aggregate principal amount of 3.625 percent convertible senior notes due 2019 (the “convertible notes”). The Company received net proceeds of $192.9 million from the sale of the convertible notes, after deducting fees of $6.0 million and expenses of $1.1 million . At the same time, the Company used $43.2 million of the net proceeds from the sale of the convertible notes to pay the cost of convertible bond hedges, as described below, which cost was partially offset by $27.6 million in proceeds to the Company from the sale of warrants in the warrant transactions also described below. The convertible notes are governed by the terms of an indenture between the Company, as issuer, and Wells Fargo Bank, National Association, as trustee. The convertible notes are senior unsecured obligations and bear interest at a rate of 3.625 percent per year, payable semi-annually in arrears on June 15 and December 15 of each year, beginning on December 15, 2014 . The convertible notes will mature on June 15, 2019 , unless earlier repurchased or converted. The convertible notes are convertible, subject to adjustment as described below, into cash, shares of the Company’s common stock, or a combination thereof, at the Company’s election, at an initial conversion rate of approximately 107.5095 shares of common stock per $1,000 principal amount of the convertible notes, which corresponds to an initial conversion price of approximately $9.30 per share of the Company’s common stock and represents a conversion premium of approximately 32.5 percent based on the last reported sale price of the Company’s common stock of $7.02 on June 11, 2014, the date the notes offering was priced. The principal amount of the notes exceeded the if-converted value as of June 30, 2016 . The conversion rate is subject to adjustment from time to time upon the occurrence of certain events, but will not be adjusted for any accrued and unpaid interest. At any time prior to the close of business on the business day immediately preceding December 15, 2018, holders may convert their convertible notes at their option only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on December 31, 2014 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130 percent of the conversion price, or approximately $12.00 per share, on each applicable trading day; • during the five business day period after any five consecutive trading day period, or the measurement period, in which the trading price per $1,000 principal amount of the convertible notes for each trading day of the measurement period was less than 98 percent of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or • upon the occurrence of specified corporate events. On or after December 15, 2018 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their convertible notes, in multiples of $1,000 principal amount, at their option regardless of the foregoing circumstances. Upon conversion, the Company will satisfy its conversion obligation by paying or delivering, as the case may be, cash, shares of common stock, or a combination thereof, at its election. If a make-whole fundamental change, as described in the indenture, occurs and a holder elects to convert its convertible notes in connection with such make-whole fundamental change, such holder may be entitled to an increase in the conversion rate as described in the indenture. The Company may not redeem the convertible notes prior to the maturity date and no “sinking fund” is provided for the convertible notes, which means that the Company is not required to periodically redeem or retire the convertible notes. Upon the occurrence of certain fundamental changes involving the Company, holders of the convertible notes may require the Company to repurchase for cash all or part of their convertible notes at a repurchase price equal to 100 percent of the principal amount of the convertible notes to be repurchased, plus accrued and unpaid interest. The indenture does not contain any financial or maintenance covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by the Company or any of its subsidiaries. The indenture contains customary terms and covenants and events of default. If an event of default (other than certain events of bankruptcy, insolvency or reorganization involving the Company or any of its significant subsidiaries) occurs and is continuing, the trustee by notice to the Company, or the holders of at least 25 percent in principal amount of the outstanding convertible notes by written notice to the Company and the trustee, may declare 100 percent of the principal and accrued and unpaid interest, if any, on all of the convertible notes to be due and payable. Upon such a declaration of acceleration, such principal and accrued and unpaid interest, if any, will be due and payable immediately. Upon the occurrence of certain events of bankruptcy, insolvency or reorganization involving the Company or any of its significant subsidiaries, 100 percent of the principal of and accrued and unpaid interest, if any, on all of the convertible notes will become due and payable automatically. Notwithstanding the foregoing, the indenture provides that, to the extent the Company elects and for up to 180 days, the sole remedy for an event of default relating to certain failures by the Company to comply with certain reporting covenants in the indenture consists exclusively of the right to receive additional interest on the convertible notes. In accordance with accounting guidance for debt with conversion and other options, the Company separately accounted for the liability and equity components of the convertible notes by allocating the proceeds between the liability component and the embedded conversion option, or equity component, due to the Company’s ability to settle the convertible notes in cash, common stock or a combination of cash and common stock, at the Company’s option. The carrying amount of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The allocation was performed in a manner that reflected the Company’s non-convertible debt borrowing rate for similar debt. The equity component of the convertible notes was recognized as a debt discount and represents the difference between the proceeds from the issuance of the convertible notes and the fair value of the liability of the convertible notes on their date of issuance. The excess of the principal amount of the liability component over its carrying amount, or debt discount, is amortized to interest expense using the effective interest method over the five year life of the convertible notes. The approximate remaining discount amortization period as of June 30, 2016 was 35.5 months. The equity component will not be remeasured for changes in fair value as long as it continues to meet the conditions for equity classification. The outstanding convertible note balances as of June 30, 2016 and December 31, 2015 consisted of the following: In thousands 2016 2015 Liability component: Principal $ 200,000 $ 200,000 Less: debt discount and unamortized debt issuance costs (31,116 ) (35,562 ) Net carrying amount $ 168,884 $ 164,438 Equity component $ 40,896 $ 40,896 In connection with the issuance of the convertible notes, the Company incurred approximately $1.1 million of debt issuance costs, which primarily consisted of legal, accounting and other professional fees, and allocated these costs to the liability and equity components based on the allocation of the proceeds. Of the total $1.1 million of debt issuance costs, $0.3 million was allocated to the equity component and recorded as a reduction to additional paid-in capital and $0.8 million was allocated to the liability component and recorded in other assets on the balance sheet. The portion allocated to the liability component is amortized to interest expense over the expected life of the convertible notes using the effective interest method. The Company determined the expected life of the debt was equal to the five -year term on the convertible notes. The effective interest rate on the liability component was 9.625 percent for the period from the date of issuance through June 30, 2016 . The following table sets forth total interest expense recognized related to the convertible notes for the three and six -month periods ended June 30, 2016 and June 30, 2015 : Three Months Ended June 30, Six Months Ended June 30, In thousands 2016 2015 2016 2015 Contractual interest expense $ 1,813 $ 1,813 $ 3,626 $ 3,625 Amortization of debt discount 2,211 1,965 4,370 3,973 Amortization of debt issuance cost 38 35 75 70 Total interest expense $ 4,062 $ 3,813 $ 8,071 $ 7,668 Convertible Bond Hedge and Warrant Transactions In connection with the pricing of the convertible notes and in order to reduce the potential dilution to the Company’s common stock and/or offset any cash payments in excess of the principal amount due upon conversion of the convertible notes, in June 2014, the Company entered into convertible note hedge transactions covering approximately 21.5 million shares of the Company’s common stock underlying the $200.0 million aggregate principal amount of the convertible notes with JPMorgan Chase Bank, National Association, an affiliate of JPMorgan Securities LLC (the “Counter Party”). The convertible bond hedges have an exercise price of approximately $9.30 per share, subject to adjustment upon certain events, and are exercisable when and if the convertible notes are converted. Upon conversion of the convertible notes, if the price of the Company’s common stock is above the exercise price of the convertible bond hedges, the Counter Party will deliver shares of the Company’s common stock and/or cash with an aggregate value approximately equal to the difference between the price of the Company’s common stock at the conversion date and the exercise price, multiplied by the number of shares of the Company’s common stock related to the convertible bond hedges being exercised. The convertible bond hedges are separate transactions entered into by the Company and are not part of the terms of the convertible notes or the warrants, discussed below. Holders of the convertible notes will not have any rights with respect to the convertible bond hedges. The Company paid $43.2 million for these convertible bond hedges and recorded this amount as a reduction to additional paid-in capital. At the same time, the Company also entered into separate warrant transactions with the Counter Party relating to, in the aggregate, approximately 21.5 million shares of the Company’s common stock underlying the $200.0 million aggregate principal amount of the convertible notes. The initial exercise price of the warrants is $12.00 per share, subject to adjustment upon certain events, which is approximately 70 percent above the last reported sale price of the Company’s common stock of $7.02 per share on June 11, 2014. Upon exercise, the Company will deliver shares of the Company’s common stock and /or cash with an aggregate value equal to the excess of the price of the Company’s common stock on the exercise date and the exercise price, multiplied by the number of shares, of the Company’s common stock underlying the exercise. The warrants will be exercisable and will expire in equal installments for a period of 100 trading days beginning on September 15, 2019. The warrants were issued to the Counter Party pursuant to the exemption from registration set forth in Section 4(a)(2) of the Securities Act. The Company received $27.6 million for these warrants and recorded this amount as an increase to additional paid-in capital. Aside from the initial payment of a $43.2 million premium to the Counter Party under the convertible bond hedges, which cost is partially offset by the receipt of a $27.6 million premium under the warrants, the Company is not required to make any cash payments to the Counter Party under the convertible bond hedges and will not receive any proceeds if the warrants are exercised. Royalty Financing In July 2015, the Company entered into a Revenue Interest Assignment Agreement (the "RIAA") with PDL BioPharma, Inc. (“PDL”) under which the Company received an initial payment of $50 million in exchange for a percentage of global net revenues from sales of Iclusig until PDL receives a fixed internal rate of return on the funds it advances the Company. Under the original terms of the RIAA, the Company would receive an additional $50 million one year from the effective date of the agreement (July 2016) and had the option to receive up to an additional $100 million in one or two tranches between the six -month and twelve -month anniversary dates of the agreement. The proceeds received from PDL are referred to as “advances”. Effective on June 1, 2016, in connection with the transactions with Incyte, ARIAD and PDL agreed to amend the RIAA to, among other things, include in the Iclusig net sales calculation under the RIAA net sales of Iclusig made by Incyte in the Territory under the License Agreement. In addition, ARIAD’s option to receive additional funding was restructured so that, in addition to the $50 million received in July 2016, ARIAD may require PDL to fund up to an additional $40 million (instead of the original $100 million ) in July 2017 (instead of between January and July 2016). Under the amended agreement, the Company agreed to pay PDL a percentage of global Iclusig net product revenues subject to an annual maximum payment of $20 million per year through 2018. The rate is 2.5 percent during the first year and increases to 5 percent in the second year through the end of 2018 and 6.5 percent from 2019 until PDL receives a 10 percent internal rate of return. Through June 30, 2016 , the Company has paid a total of $3.9 million to PDL under this agreement. Payments are deemed to be applied against advances. Interest expense related to the agreement was $1.3 million and $2.3 million , respectively, for the three- and six-month periods ended June 30, 2016 . Beginning in 2019, if PDL does not receive specified minimum payments each year from sales of Iclusig, then it will also have the right to receive a certain percentage of net revenues from sales of brigatinib, subject to its approval by regulatory authorities. If PDL has not received total cumulative payments under this agreement that are at least equal to the amounts PDL has advanced to the Company by the fifth anniversary of each funding date, the Company is required to pay PDL an amount equal to the shortfall. PDL retains the option to require the Company to repurchase the then outstanding net advances, together with additional payments representing return on investment as described below (the “put” option), in the event the Company experiences a change of control, undergoes certain bankruptcy events, transfers any of its interests in Iclusig (other than pursuant to a license agreement, development, commercialization, co-promotion, collaboration, partnering or similar agreement), transfers all or substantially all of its assets, or breaches certain of the covenants, representations or warranties made under the agreement. Similarly, the Company has the option to terminate the agreement at any time by payment of the then outstanding net advances, together with additional payments representing return on investment as described below (the “call” option). Both the put and call options can be exercised at a price which is equal to the greater of (a) the then outstanding net advances and an amount that would generate an internal rate of return to PDL of 10 percent after taking into account the amount and timing of all payments made to PDL by the Company or (b) a multiple of the then outstanding net advances of 1.15 if exercised on or prior to the first anniversary of the closing date, 1.20 if exercised after the first anniversary but on or prior to the second anniversary of the closing date or 1.30 if exercised after the second anniversary of the closing date. In connection with the agreement, the Company also entered into a security agreement with PDL in July 2015, as amended effective June 1, 2016. Under the security agreement, the Company granted PDL a security interest in certain assets relating to Iclusig, including all of the Company’s revenues from sales of Iclusig covered by the royalty financing agreement, a certain segregated deposit account established under the royalty financing agreement, and certain intellectual property, license agreements, and regulatory approvals related to Iclusig. The collateral set forth in the security agreement secures the Company’s obligations under the royalty financing agreement, including its obligation to pay all amounts due thereunder. In connection with the amendment to the RIAA, ARIAD and PDL agreed to release ARIAD’s European patents and certain other European assets from the collateral. For accounting purposes, the agreement has been classified as a debt financing, as the Company will have significant continuing involvement in the sale of Iclusig and other products which might be covered by the agreement, the parties have the right to cancel the agreement as described above, PDL’s rate of return is implicitly limited by the terms of the transaction, volatility in the sale of Iclusig and other products would have no effect on PDL’s expected ultimate return, and PDL has certain rights in the event that product sales and related payments under this agreement are insufficient to pay down the Company’s obligations. In connection with the transaction, the Company recorded the initial net proceeds as long-term debt. The Company imputes interest expense associated with this borrowing using the effective interest rate method and will record a corresponding accrued interest liability. The effective interest rate is calculated based on the rate that would enable the debt to be repaid in full over the anticipated life of the arrangement, including the required 10 percent internal rate of return to PDL. Determining the effective interest rate requires judgment and is based on significant assumptions related to estimates of the amounts and timing of future revenue streams. Determination of these assumptions is highly subjective and different assumptions could lead to significantly different outcomes. The Company determined that the put option is an embedded derivative. This item is being accounted for as a derivative and the estimated fair value of the put option, which was immaterial as of the date of the agreement and as of June 30, 2016 is carried as part of the carrying value of the related liability. Facility Lease Obligation As of June 30, 2016 and December 31, 2015 , the Company has recorded a facility lease obligation related to its lease for a new facility under construction in Cambridge, Massachusetts. See Notes 6 and 10 for information regarding the lease and related asset under construction. During the construction period the Company is capitalizing the construction costs as a component of construction in progress with a corresponding credit to facility lease obligation to the extent the cost was paid by the Company or reimbursed by the landlord. The Company expects to complete construction and occupy the facility in the fourth quarter of 2016. Under terms of the lease, the Company commenced making lease payments in March 2015. During the construction period, a portion of the lease payment is allocated to land lease expense and the remainder is accounted for as a reduction of the obligation. See Note 10 for information regarding payments and other terms. |
Leases, Licensed Technology and
Leases, Licensed Technology and Other Commitments | 6 Months Ended |
Jun. 30, 2016 | |
Leases [Abstract] | |
Leases, Licensed Technology and Other Commitments | Leases, Licensed Technology and Other Commitments Facility Leases The Company conducts the majority of its operations in a 100,000 square foot office and laboratory facility under an operating lease that originally extended to July 2019 with two consecutive five -year renewal options. The lease provides the Company with the option to early terminate the lease in July 2017. The notification of the early termination must be made by July 2016. The Company maintains an outstanding letter of credit of $1.4 million in accordance with the terms of the amended lease. In May 2012, the Company entered into a three -year operating lease agreement for an additional 26,000 square feet of office space which was extended to August 2016. Future non-cancelable minimum annual rental payments through July 2019 under these leases are $3.3 million remaining in 2016 , $6.0 million in 2017 , $6.1 million in 2018 and $3.6 million in 2019 , prior to the Company's exercise of its early termination right described below. In July 2016, the Company notified the landlord of the 100,000 square foot office and laboratory facility that the Company was exercising its early termination right under the lease agreement to terminate the lease effective July 2017 (from the original end date of July 2019). As part of the termination, the Company made a payment of $1.7 million related to the termination. Binney Street, Cambridge, Massachusetts In January 2013, the Company entered into a lease agreement for approximately 244,000 square feet of laboratory and office space in two adjacent, connected buildings to be constructed in Cambridge, Massachusetts. Under the terms of the original lease, the Company leased all of the rentable space in one of the two buildings and a portion of the available space in the second building. In September 2013, the Company entered into a lease amendment to lease all of the remaining space, approximately 142,000 square feet, in the second building, for an aggregate of 386,000 square feet in both buildings. The terms of the lease amendment were consistent with the terms of the original lease. Construction of the core and shell of the building was completed in March 2015 at which time construction of tenant improvements in the building commenced. Construction of the tenant improvements is expected to be completed in the fourth quarter of 2016. In connection with this lease, the landlord is providing a tenant improvement allowance for the costs associated with the design, engineering, and construction of tenant improvements for the leased facility. The tenant improvements will be in accordance with the Company’s plans and include fit-out of the buildings to construct appropriate laboratory and office space, subject to approval by the landlord. To the extent the stipulated tenant allowance provided by the landlord is exceeded, the Company is obligated to fund all costs incurred in excess of the tenant allowance. The scope of the planned tenant improvements do not qualify as “normal tenant improvements” under the lease accounting guidance. Accordingly, for accounting purposes, the Company is the deemed owner of the buildings during the construction period. As construction progresses, the Company records the project construction costs incurred as an asset. To the extent that the cost is incurred by the landlord or incurred by the Company and reimbursed by the landlord, the Company records a corresponding increase to facility lease obligation included in long-term debt on the consolidated balance sheet. Upon completion of the buildings, the Company will determine if the asset and corresponding financing obligation should continue to be carried on its consolidated balance sheet under the relevant accounting guidance. Based on the current terms of the lease, the Company expects to continue to be the deemed owner of the buildings upon completion of the construction period. As of June 30, 2016 , the Company has recorded construction in progress of $292.7 million and a facility lease obligation of $275.8 million . The initial term of the lease is for 15 years from substantial completion of the core and shell of the buildings, which occurred in March 2015, with options to renew for three terms of five years each at market-based rates. The base rent is subject to increases over the term of the lease. Based on the original and amended leased space, the future non-cancelable minimum annual lease payments under the lease are $4.4 million remaining in 2016 , $25.5 million in 2017 , $31.0 million in 2018 , $31.5 million in 2019 , $32.1 million in 2020 , $32.7 million in 2021 and $292.6 million thereafter, plus the Company’s share of the facility operating expenses and other costs that are reimbursable to the landlord under the lease. The Company maintains a letter of credit of $9.2 million as security for the lease, which is supported by restricted cash. In August 2015, the Company entered into a sublease agreement for approximately 160,000 square feet of the total leased space in the Binney Street facility. The sublease has an initial term of 10 years from the rent commencement date, which occurred in July 2016, with an option to extend for the remainder of the initial term of the Company’s underlying lease. The sublease rent is subject to increases over the term of the lease. Based on the agreement, during the initial term the non-cancelable minimum annual sublease payments by calendar year beginning upon the rent commencement date of the sublease are approximately $5.3 million in 2016 , $10.7 million in 2017 , $10.9 million in 2018 , $11.1 million in 2019 and $11.3 million in 2020 and $65.5 million thereafter, plus the subtenant’s share of the facility operating expenses. Total rent expense for the leases described above as well as other Company leases for the three-month periods ended June 30, 2016 and 2015 was $2.2 million and $2.6 million , respectively, and $4.5 million for both the six-month periods ended June 30, 2016 and 2015 , respectively. Contingent rent for the three and six -month periods ended June 30, 2016 and 2015 was $176,000 and $327,000 , respectively, and $369,000 and $539,000 , respectively. Total future non-cancelable minimum annual rental payments for the leases described above as well as other Company leases are $7.7 million in 2016 , $31.5 million in 2017 , $37.1 million in 2018 , $35.1 million in 2019 , $32.1 million in 2020 and $325.3 million thereafter. |
Stockholders' Deficit
Stockholders' Deficit | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders’ Deficit Changes in Stockholders' Equity The changes in stockholders' equity for the six -month period ended June 30, 2016 were as follows: Additional Accumulated Other Common Stock Paid-in Comprehensive Accumulated Stockholders’ In thousands, except share data Shares Amount Capital Income (Loss) Deficit Equity Balance, January 1, 2016 189,662,148 $ 190 $ 1,338,585 $ 3,835 $ (1,445,751 ) $ (103,141 ) Issuance of shares pursuant to ARIAD stock plans 2,459,257 2 4,072 — — 4,074 Stock-based compensation — — 9,377 — — 9,377 Payments of tax withholding obligations related to stock compensation — — (1,337 ) — — (1,337 ) Other comprehensive loss — — — (5,862 ) — (5,862 ) Reclassification into earnings upon sale of European operations — — — 2,939 2,939 Net Income — — — — 56,061 56,061 Balance, June 30, 2016 192,121,405 $ 192 $ 1,350,697 $ 912 $ (1,389,690 ) $ (37,889 ) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments At June 30, 2016 and December 31, 2015 , the carrying amounts of cash equivalents, accounts payable and accrued liabilities approximate fair value because of their short-term nature. The fair value of the convertible notes, which differs from their carrying value, is influenced by interest rates and stock price and stock price volatility and is determined by prices for the convertible notes observed in market trading. The market for trading of the convertible notes is not considered to be an active market and therefore the estimate of fair value is based on Level 2 inputs. The estimated fair value of the convertible notes, face value of $200.0 million , was $214.0 million at June 30, 2016 and $198.0 million at December 31, 2015 , respectively. |
Stock Compensation
Stock Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation | Stock Compensation ARIAD Stock Option and Stock Plans The Company’s 2001, 2006 and 2014 stock option and stock plans (the “Plans”), which have been approved by the Company's stockholders, provide for the award of non-qualified and incentive stock options, stock grants, restricted stock units, performance share units and other equity-based awards to officers, directors, employees and consultants of the Company. Stock options become exercisable as specified in the related option certificate, typically over a four -year period, and expire ten years from the date of grant. Stock grants, restricted stock units and performance share units provide the recipient with ownership of common stock subject to terms of vesting, any rights the Company may have to repurchase the shares granted or other restrictions. The 2006 Plan has no shares remaining available for grant, although existing stock options granted remain outstanding. The 2001 Plan expired in March 2016, and there are no outstanding awards. As of June 30, 2016 , there were 8,497,040 shares available for awards under the 2014 Plan. Inducement Awards In the first quarter of 2016, the Company issued the following equity awards to senior executives of the Company outside of the Plans as inducements material to their entering into employment with the Company in accordance with NASDAQ rules (the "Inducement Awards"): (i) for the Company's new CEO, 200,000 restricted stock units and 1,500,000 stock options, which vest over 18 months and four years, respectively; and (ii) for the Company's new CFO, 550,000 stock options vesting over four years and 150,000 performance shares that will be earned based on the relative total shareholder return of the Company’s stock price compared to component companies in the NASDAQ Biotechnology Index over a 3 year period ending December 31, 2018. There were no Inducement Awards in the three and six-month periods ended June 30, 2015. Employee Stock Purchase Plan In 1997, the Company adopted the 1997 Employee Stock Purchase Plan (“ESPP”) and reserved 500,000 shares of common stock for issuance under this plan. The ESPP was amended in June 2008 to reserve an additional 500,000 shares of common stock for issuance and the plan was further amended in 2009 and in 2015 to reserve an additional 750,000 shares of common stock for issuance pursuant to each of those amendments. Under this plan, substantially all of the Company’s employees may, through payroll withholdings, purchase shares of the Company’s common stock at a price of 85 percent of the lesser of the fair market value at the beginning or end of each three -month withholding period. For the six -month periods ended June 30, 2016 and 2015 , 174,690 and 128,151 shares of common stock were issued under the plan, respectively. Compensation cost is equal to the fair value of the discount on the date of grant and is recognized as compensation in the period of purchase. Stock-Based Compensation The Company’s statements of operations included total compensation cost from awards under the Plans, the Inducement Awards, and purchases under the ESPP for the three and six -month periods ended June 30, 2016 and 2015 , as follows: Three Months Ended Six Months Ended In thousands 2016 2015 2016 2015 Compensation cost from: Stock options $ 2,072 $ 4,129 $ 5,354 $ 8,371 Stock and stock units 487 6,395 3,758 10,461 Purchases of common stock at a discount 99 120 265 246 $ 2,658 $ 10,644 $ 9,377 $ 19,078 Compensation cost included in: Research and development expense $ 1,524 $ 4,180 $ 4,478 $ 7,996 Selling, general and administrative expense 1,134 6,464 4,899 11,082 $ 2,658 $ 10,644 $ 9,377 $ 19,078 Stock Options Stock options are granted with an exercise price equal to the closing market price of the Company’s common stock on the date of grant. Stock options generally vest ratably over four years and have contractual terms of ten years . Stock options are valued using the Black-Scholes option valuation model and compensation cost is recognized based on such fair value over the period of vesting on a straight-line basis. Stock option activity under the Plans and Inducement Awards for the six -month period ended June 30, 2016 was as follows: Number of Shares Weighted Average Exercise Price Per Share Options outstanding, January 1, 2016 10,232,969 $ 10.00 Granted 4,490,700 $ 6.30 Forfeited (1,928,884 ) $ 8.71 Exercised (540,619 ) $ 4.95 Options outstanding, June 30, 2016 12,254,166 $ 9.07 Stock and Stock Unit Grants Stock and stock unit grants carry restrictions as to resale for periods of time or vesting provisions over time as specified in the grant, typically three years. Stock and stock unit grants are valued at the closing market price of the Company’s common stock on the date of grant and compensation expense is recognized over the requisite service period, vesting period or period during which restrictions remain on the common stock or stock units granted. Stock and stock unit activity under the Plans and Inducement Awards for the six -month period ended June 30, 2016 was as follows: Number of Shares Weighted Average Grant Date Fair Value Outstanding, January 1, 2016 4,493,054 $ 8.64 Granted / awarded 3,491,512 $ 6.57 Forfeited (2,513,304 ) $ 7.64 Vested or restrictions lapsed (1,855,022 ) $ 8.48 Outstanding, June 30, 2016 3,616,240 $ 7.42 The total fair value of stock and stock unit awards that vested during the six-months ended June 30, 2016 and 2015 was $11.7 million and $6.8 million , respectively. The total unrecognized compensation expense for restricted shares or units that have been granted was $16.2 million at June 30, 2016 and will be recognized over 1.6 years on a weighted average basis. The Company recognizes compensation expense for performance share units when the achievement of the performance metric is determined to be probable of occurrence. The total number of units earned, and related compensation cost, may be up to 60 percent higher depending on the level or timing of achievement of the metric as defined in the specific award agreement. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net loss per share amounts have been computed based on the weighted-average number of common shares outstanding. Diluted net loss per share amounts have been computed based on the weighted-average number of common shares outstanding plus the dilutive effect, if any, of potential common shares. The computation of potential common shares has been performed using the treasury stock method. Because of the net loss reported in certain periods, diluted and basic net loss per share amounts are the same for those periods. The net income (loss) and the number of shares used to compute basic and diluted earnings per share for the three and six -month periods ended June 30, 2016 and 2015 are as follows: Three Months Ended Six Months Ended In thousands, except per share amounts 2016 2015 2016 2015 Net income (loss) $ 109,848 $ (63,160 ) $ 56,061 $ (115,835 ) Shares used in basic computation 191,485 188,598 190,894 188,220 Dilutive impact of employee equity award plans 3,084 — 2,610 — Shares used in diluted computation 194,569 188,598 193,504 188,220 Net income per Share: Basic $ 0.57 $ (0.33 ) $ 0.29 $ (0.62 ) Diluted $ 0.56 $ (0.33 ) $ 0.29 $ (0.62 ) We have excluded 10.1 million and 14.8 million weighted-average shares of common stock potentially issuable under employee equity award plans in the three months ended June 30, 2016 and 2015 , respectively, and 10.6 million and 14.8 million shares of common stock potentially issuable under employee equity award plans in the six months ended June 30, 2016 and 2015 , respectively, from the diluted net income per share calculations, as their effect would have been anti-dilutive. We have also excluded the impact of the convertible debt and related warrants from the calculation of diluted share computation. Holders of the convertible notes may covert their Notes into shares of the Company’s common stock at the applicable conversion rate, subject to certain conditions (refer to Note 9 for a full description). Since it is the Company's stated intent to settle the principal amount of the Notes in cash, the Company has used the treasury stock method for determining the potential dilution in the diluted earnings per share computation. Since the average price of the Company's common stock was less than the effective conversion price for such Notes during the reporting periods, the Notes were not dilutive for such periods. Since the average price of the Company's common stock was less than the strike price of the Warrants for the reporting periods, such Warrants were also not dilutive. Upon exercise of the Warrants, holders of the Warrants may acquire up to 21.5 million shares of the Company's common stock at an exercise price of $12.00 (refer to Note 9 for additional information on the Warrants). If the market price per share of the Company's common stock for the period exceeds the established strike price, the Warrants will have a dilutive effect on its diluted net income per share using the treasury-stock-type method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) for the three and six -month periods ended June 30, 2016 were as follows: In thousands Unrealized Gains on Marketable Securities, net of tax Cumulative Translation Adjustment Defined Benefit Pension Obligation Total Balance, April 1, 2016 2,835 535 (3,498 ) (128 ) Other comprehensive (loss) income (1,923 ) (12 ) 36 (1,899 ) Reclassification into earnings upon sale of European operations — (523 ) 3,462 2,939 Balance, June 30, 2016 $ 912 $ — $ — $ 912 In thousands Unrealized Gains on Marketable Securities, net of tax Cumulative Translation Adjustment Defined Benefit Pension Obligation Total Balance, January 1, 2016 6,821 567 (3,553 ) 3,835 Other comprehensive (loss) income (5,909 ) (44 ) 91 (5,862 ) Reclassification into earnings upon sale of European operations — (523 ) 3,462 2,939 Balance, June 30, 2016 $ 912 $ — $ — $ 912 |
Restructuring Actions
Restructuring Actions | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Actions | Restructuring Actions During 2016, the Company incurred expenses of $3.0 million associated with employee workforce reductions of approximately 90 positions implemented in March 2016. During the quarter ended June 30, 2016 , $1.9 million was paid. In connection with the Incyte transaction, $0.8 million of the balance was transferred to Incyte as part of the sale of ARIAD's European operations. The remaining restructuring balance will be fully paid by the end of 2016 . In thousands June 30, 2016 Balance, January 1, 2016 $ — Charges 3,010 Amounts paid (1,837 ) Adjustments, net (827 ) Balance, June 30, 2016 $ 346 |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation There were no material legal proceedings that were instituted or terminated during the quarter ended June 30, 2016 , and there have been no material developments in the pending legal proceedings disclosed in Note 16 to the audited financial statements included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . From time to time, the Company may be subject to various claims and legal proceedings. If the potential loss from any claim, asserted or unasserted, or legal proceedings is considered probable and the amount is reasonably estimated, the Company will accrue a liability for the estimated loss. |
Significant Accounting Polici25
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Unless the context requires otherwise, references to “ARIAD,” “Company,” “we,” “our,” and “us,” in this quarterly report refer to ARIAD Pharmaceuticals, Inc. and its subsidiaries. Headquartered in Cambridge, Massachusetts, ARIAD is focused on discovering, developing and commercializing precision therapies for patients with rare cancers. ARIAD is working on new medicines to advance the treatment of rare forms of chronic and acute leukemia, lung cancer and other rare cancers. The Company has one approved cancer medicine, Iclusig® (ponatinib), for the treatment of certain patients with chronic myeloid leukemia (“CML”) and Philadelphia chromosome positive acute lymphoblastic leukemia (“Ph+ ALL”). The Company sells Iclusig directly in the United States and has partnered with third parties to commercialize Iclusig in selected territories throughout the rest of the world, including Europe, Japan and the Far East, Canada, Australia, Latin America, Israel and the Middle East and North Africa. The Company is also developing Iclusig in earlier lines of therapy and for additional cancer indications. In addition to Iclusig, the Company is developing two product candidates for the treatment of certain rare forms of lung cancer. Brigatinib is the Company’s next most advanced drug candidate, which it is developing for the treatment of certain patients with a form of non-small cell lung cancer, or NSCLC. The Company has completed enrollment in a pivotal Phase 2 clinical trial of brigatinib and initiated the filing of a new drug application, or NDA, in the United States for the treatment of patients with aplastic lymphoma kinase, or ALK, positive NSCLC who are resistant to the drug crizotinib. The Company is also studying brigatinib in a Phase 3 clinical trial as a potential first-line therapy. AP32788 is the Company’s most recently discovered drug candidate, and is being developed for the treatment of patients with NSCLC with specific mutations in the EGFR or HER2 kinases. The Company is currently studying AP32788 in a Phase 1/2 proof-of-concept clinical trial. In addition to its clinical development programs, the Company has a focused drug discovery program centered on small-molecule therapies that are molecularly targeted to cell-signaling pathways implicated in cancer, and is also seeking to apply the Company’s core competency in kinase inhibitors for precision therapies to explore the potential for the use of small molecules in immuno-oncology. |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements are unaudited. The Company has prepared the condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements and should be read in conjunction with the Company’s audited financial statements included in the Annual Report on Form 10-K for the year ended December 31, 2015 . The condensed consolidated balance sheet as of December 31, 2015 was derived from the audited consolidated balance sheet included in the Annual Report on Form 10-K for the year ended December 31, 2015 . The Company has prepared the accompanying condensed consolidated financial statements on the same basis as its audited financial statements, and these financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of the interim periods presented. The operating results for the interim periods presented are not necessarily indicative of the results expected for the full year 2016 . |
Marketable Securities | Marketable Securities Marketable securities consist of 687,139 shares of common stock of REGENXBIO, Inc. (“REGENXBIO”), which became a publicly traded company in September 2015. At June 30, 2016 these shares had a value of $5.5 million . The Company obtained these shares in connection with a license agreement it entered into with REGENXBIO in November 2010 for certain gene expression regulation technology. The Company was restricted from trading these securities until March 14, 2016 pursuant to an agreement it entered into with REGENXBIO. The Company has classified these shares as “available for sale” investments and recognized an unrealized loss of $1.9 million and $5.9 million for the three and six -month periods ended June 30, 2016 , respectively, using a Level 1 valuation input, which has been excluded from the determination of net income (loss) and is recorded in accumulated other comprehensive income (loss), a separate component of stockholders’ equity, in the three and six -month periods ended June 30, 2016 . These shares had been accounted for using the equity method with a carrying value of zero due to losses incurred by REGENXBIO in previous years. |
Accrued Rent | Accrued Rent The Company recognizes rent expense for leases with increasing annual rents on a straight-line basis over the term of the lease. The amount of rent expense in excess of cash payments is classified as accrued rent. Any lease incentives received are deferred and amortized over the term of the lease. |
Product Revenue, Net | Product Revenue, Net The following table summarizes the activity in each of the product revenue allowances and reserve categories for the six -month period ended June 30, 2016 : In thousands Trade Allowances Rebates, Chargebacks and Discounts Other Incentives/ Returns Total Balance, January 1, 2016 $ 111 $ 4,460 $ 551 $ 5,122 Provision 375 6,036 363 6,774 Payments or credits (331 ) (4,936 ) (250 ) (5,517 ) Balance, March 31, 2016 155 5,560 664 6,379 Provision 457 12,147 (270 ) 12,334 Payments or credits (464 ) (6,071 ) (94 ) (6,629 ) Adjustments — (4,684 ) (55 ) (4,739 ) Balance, June 30, 2016 $ 148 $ 6,952 $ 245 $ 7,345 The adjustments recorded during the three-months ended June 30, 2016 relate to the Incyte transaction, including the sale of ARIAD's European operations. As part of the transaction, the allowance and reserves relating to ARIAD's European subsidiaries transferred to Incyte. In 2012, prior to the Company obtaining marketing authorization for Iclusig in Europe, the French regulatory authority granted an Autorisation Temporaire d’Utilisation (ATU), or Temporary Authorization for Use, for Iclusig for the treatment of patients with CML and Ph+ ALL under a nominative program on a patient-by-patient basis. Upon completion of this program, the Company became eligible to ship Iclusig directly to customers in France as of October 1, 2013. Negotiations with the Economic Committee on Health Care Products in France regarding pricing and reimbursement for Iclusig concluded during the quarter ended June 30, 2016. As a result, the Company recorded revenue of $25.5 million related to cumulative shipments to customers in France during the the three months ended June 30, 2016 ( $22.5 million is related to shipments through 2015 and $3.0 million is related to shipments in 2016 through May 31, 2016). The revenue recorded in 2016 related to product shipments in France prior to the close of the transaction with Incyte on June 1, 2016. At June 30, 2016, the Company has recorded a liability in the amount of $4.5 million recorded within Other Current Liabilities related to the clawback settlement based on the final approved price of Iclusig with the Ministry of Health in France, which represents the amount the Company expects to remit to the Ministry of Health. The Company has entered into distributor arrangements for Iclusig in a number of territories including Australia, Canada, Israel, Latin America, Middle East and North Africa, certain countries in central and Eastern Europe, and Turkey and Japan and the Far East. The Company recognizes net product revenue from sales of Iclusig under these arrangements when all criteria for revenue recognition have been satisfied. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of accounts receivable from customers and cash held at financial institutions. The Company believes that such customers and financial institutions are of high credit quality. As of June 30, 2016 , a portion of the Company’s cash and cash equivalent accounts were concentrated at a single financial institution, which potentially exposes the Company to credit risks. The Company does not believe that there is significant risk of non-performance by the financial institution and the Company’s cash on deposit at this financial institution is fully liquid. |
Segment Reporting and Geographic Information | Segment Reporting and Geographic Information The Company organizes itself into one operating segment reporting to the Chief Executive Officer. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On February 25, 2016, the FASB issued ASU No. 2016-02- Leases (Topic 842), which provides new guidance on the accounting for leases. The provisions of this guidance are effective for annual periods beginning after December 31, 2018, and for interim periods therein. The Company has not yet assessed the impact of this new standard on its financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which simplifies the presentation of deferred income taxes. ASU 2015-17 requires that deferred tax assets and liabilities, and any related valuation allowance, be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for financial statements issued for fiscal years beginning after December 15, 2016 (and interim periods within those fiscal years) with early adoption permitted. ASU 2015-17 may be either applied prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company is currently evaluating the options for adoption and the impact on its balance sheet presentation. In May 2014, the Financial Accounting Standards Board (FASB) issued a comprehensive new standard which amends revenue recognition principles and provides a single set of criteria for revenue recognition among all industries. The new standard provides a five step framework whereby revenue is recognized when promised goods or services are transferred to a customer at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires enhanced disclosures pertaining to revenue recognition in both interim and annual periods. The standard is effective for interim and annual periods beginning after December 15, 2017 and allows for adoption using a full retrospective method, or a modified retrospective method. Entities may elect to early adopt the standard for annual periods beginning after December 15, 2016. The Company is currently assessing the method of adoption and the expected impact the new standard has on its financial position and results of operations. |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net loss per share amounts have been computed based on the weighted-average number of common shares outstanding. Diluted net loss per share amounts have been computed based on the weighted-average number of common shares outstanding plus the dilutive effect, if any, of potential common shares. The computation of potential common shares has been performed using the treasury stock method. Because of the net loss reported in certain periods, diluted and basic net loss per share amounts are the same for those periods. |
Significant Accounting Polici26
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Product Revenue Allowances and Reserve Categories | The following table summarizes the activity in each of the product revenue allowances and reserve categories for the six -month period ended June 30, 2016 : In thousands Trade Allowances Rebates, Chargebacks and Discounts Other Incentives/ Returns Total Balance, January 1, 2016 $ 111 $ 4,460 $ 551 $ 5,122 Provision 375 6,036 363 6,774 Payments or credits (331 ) (4,936 ) (250 ) (5,517 ) Balance, March 31, 2016 155 5,560 664 6,379 Provision 457 12,147 (270 ) 12,334 Payments or credits (464 ) (6,071 ) (94 ) (6,629 ) Adjustments — (4,684 ) (55 ) (4,739 ) Balance, June 30, 2016 $ 148 $ 6,952 $ 245 $ 7,345 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | All of the Company’s inventories relate to the manufacturing of Iclusig. The following table sets forth the Company’s inventories as of June 30, 2016 and December 31, 2015 : In thousands 2016 2015 Raw materials $ 482 $ 813 Work-in-process 1,289 89 Finished goods 814 1,007 Total 2,585 1,909 Current portion (903 ) (1,096 ) Non-current portion included in intangible and other assets, net $ 1,682 $ 813 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and equipment, net, was comprised of the following at June 30, 2016 and December 31, 2015 : In thousands 2016 2015 Leasehold improvements $ 23,581 $ 23,609 Construction in progress 292,683 246,669 Equipment and furniture 29,158 26,388 345,422 296,666 Less accumulated depreciation and amortization (44,460 ) (42,584 ) Property and Equipment, Net $ 300,962 $ 254,082 |
Intangible and Other Assets, 29
Intangible and Other Assets, Net (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible and Other Assets, Net | Intangible and other assets, net, were comprised of the following at June 30, 2016 and December 31, 2015 : In thousands 2016 2015 Capitalized patent and license costs $ 5,975 $ 5,975 Less accumulated amortization (5,117 ) (5,076 ) 858 899 Inventory, non-current 1,682 813 Other assets 2,871 4,393 Intangible and Other Assets, Net $ 5,411 $ 6,105 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Other Liabilities Disclosure [Abstract] | |
Other Current Liabilities | Other current liabilities consisted of the following at June 30, 2016 and December 31, 2015 : In thousands 2016 2015 Amounts received in advance of revenue recognition $ 4,476 $ 23,545 Other 821 779 Total $ 5,297 $ 24,324 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consisted of the following at June 30, 2016 and December 31, 2015 : In thousands 2016 2015 Convertible notes, net $ 168,884 $ 164,438 Royalty financing, net 46,619 46,921 Facility lease obligation 275,776 231,733 491,279 443,092 Less current portion (24,522 ) (13,872 ) Long term portion $ 466,757 $ 429,220 |
Outstanding Convertible Note Balances | The outstanding convertible note balances as of June 30, 2016 and December 31, 2015 consisted of the following: In thousands 2016 2015 Liability component: Principal $ 200,000 $ 200,000 Less: debt discount and unamortized debt issuance costs (31,116 ) (35,562 ) Net carrying amount $ 168,884 $ 164,438 Equity component $ 40,896 $ 40,896 |
Total Interest Expense Recognized Related to Convertible Notes | The following table sets forth total interest expense recognized related to the convertible notes for the three and six -month periods ended June 30, 2016 and June 30, 2015 : Three Months Ended June 30, Six Months Ended June 30, In thousands 2016 2015 2016 2015 Contractual interest expense $ 1,813 $ 1,813 $ 3,626 $ 3,625 Amortization of debt discount 2,211 1,965 4,370 3,973 Amortization of debt issuance cost 38 35 75 70 Total interest expense $ 4,062 $ 3,813 $ 8,071 $ 7,668 |
Stockholders' Deficit (Tables)
Stockholders' Deficit (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders Equity | The changes in stockholders' equity for the six -month period ended June 30, 2016 were as follows: Additional Accumulated Other Common Stock Paid-in Comprehensive Accumulated Stockholders’ In thousands, except share data Shares Amount Capital Income (Loss) Deficit Equity Balance, January 1, 2016 189,662,148 $ 190 $ 1,338,585 $ 3,835 $ (1,445,751 ) $ (103,141 ) Issuance of shares pursuant to ARIAD stock plans 2,459,257 2 4,072 — — 4,074 Stock-based compensation — — 9,377 — — 9,377 Payments of tax withholding obligations related to stock compensation — — (1,337 ) — — (1,337 ) Other comprehensive loss — — — (5,862 ) — (5,862 ) Reclassification into earnings upon sale of European operations — — — 2,939 2,939 Net Income — — — — 56,061 56,061 Balance, June 30, 2016 192,121,405 $ 192 $ 1,350,697 $ 912 $ (1,389,690 ) $ (37,889 ) |
Stock Compensation (Tables)
Stock Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Total Compensation Cost from Share-Based Payments | The Company’s statements of operations included total compensation cost from awards under the Plans, the Inducement Awards, and purchases under the ESPP for the three and six -month periods ended June 30, 2016 and 2015 , as follows: Three Months Ended Six Months Ended In thousands 2016 2015 2016 2015 Compensation cost from: Stock options $ 2,072 $ 4,129 $ 5,354 $ 8,371 Stock and stock units 487 6,395 3,758 10,461 Purchases of common stock at a discount 99 120 265 246 $ 2,658 $ 10,644 $ 9,377 $ 19,078 Compensation cost included in: Research and development expense $ 1,524 $ 4,180 $ 4,478 $ 7,996 Selling, general and administrative expense 1,134 6,464 4,899 11,082 $ 2,658 $ 10,644 $ 9,377 $ 19,078 |
Stock Option Activity | Stock option activity under the Plans and Inducement Awards for the six -month period ended June 30, 2016 was as follows: Number of Shares Weighted Average Exercise Price Per Share Options outstanding, January 1, 2016 10,232,969 $ 10.00 Granted 4,490,700 $ 6.30 Forfeited (1,928,884 ) $ 8.71 Exercised (540,619 ) $ 4.95 Options outstanding, June 30, 2016 12,254,166 $ 9.07 |
Stock and Stock Unit Activity | Stock and stock unit activity under the Plans and Inducement Awards for the six -month period ended June 30, 2016 was as follows: Number of Shares Weighted Average Grant Date Fair Value Outstanding, January 1, 2016 4,493,054 $ 8.64 Granted / awarded 3,491,512 $ 6.57 Forfeited (2,513,304 ) $ 7.64 Vested or restrictions lapsed (1,855,022 ) $ 8.48 Outstanding, June 30, 2016 3,616,240 $ 7.42 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of Net Loss and Number of Shares Used to Compute Basic and Diluted Earnings Per Share | The net income (loss) and the number of shares used to compute basic and diluted earnings per share for the three and six -month periods ended June 30, 2016 and 2015 are as follows: Three Months Ended Six Months Ended In thousands, except per share amounts 2016 2015 2016 2015 Net income (loss) $ 109,848 $ (63,160 ) $ 56,061 $ (115,835 ) Shares used in basic computation 191,485 188,598 190,894 188,220 Dilutive impact of employee equity award plans 3,084 — 2,610 — Shares used in diluted computation 194,569 188,598 193,504 188,220 Net income per Share: Basic $ 0.57 $ (0.33 ) $ 0.29 $ (0.62 ) Diluted $ 0.56 $ (0.33 ) $ 0.29 $ (0.62 ) |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) for the three and six -month periods ended June 30, 2016 were as follows: In thousands Unrealized Gains on Marketable Securities, net of tax Cumulative Translation Adjustment Defined Benefit Pension Obligation Total Balance, April 1, 2016 2,835 535 (3,498 ) (128 ) Other comprehensive (loss) income (1,923 ) (12 ) 36 (1,899 ) Reclassification into earnings upon sale of European operations — (523 ) 3,462 2,939 Balance, June 30, 2016 $ 912 $ — $ — $ 912 In thousands Unrealized Gains on Marketable Securities, net of tax Cumulative Translation Adjustment Defined Benefit Pension Obligation Total Balance, January 1, 2016 6,821 567 (3,553 ) 3,835 Other comprehensive (loss) income (5,909 ) (44 ) 91 (5,862 ) Reclassification into earnings upon sale of European operations — (523 ) 3,462 2,939 Balance, June 30, 2016 $ 912 $ — $ — $ 912 |
Restructuring Actions Restructu
Restructuring Actions Restructuring Actions (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Reserve | In thousands June 30, 2016 Balance, January 1, 2016 $ — Charges 3,010 Amounts paid (1,837 ) Adjustments, net (827 ) Balance, June 30, 2016 $ 346 |
Significant Accounting Polici37
Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 5 Months Ended | 6 Months Ended | 48 Months Ended | ||
Jun. 30, 2016USD ($)shares | Jun. 30, 2015USD ($)customer | May 31, 2016USD ($) | Jun. 30, 2016USD ($)customersegmentshares | Jun. 30, 2015USD ($)customer | Dec. 31, 2015USD ($) | |
Concentration Risk [Line Items] | ||||||
Total of realized and unrealized transaction losses | $ 100 | $ 500 | $ 900 | |||
Total of realized and unrealized transaction gains | $ 600 | |||||
Marketable securities | 5,497 | 5,497 | $ 11,407 | |||
Accrued rent | 4,400 | 4,400 | 5,400 | |||
Product revenue, net | 65,326 | $ 27,818 | 98,960 | $ 51,719 | ||
Amounts received in advance of revenue recognition | $ 4,476 | $ 4,476 | 23,545 | |||
Number of operating segments | segment | 1 | |||||
Geographic concentration risk | ||||||
Concentration Risk [Line Items] | ||||||
Long-lived assets | 1,400 | |||||
Net product revenue | Customer concentration risk | ||||||
Concentration Risk [Line Items] | ||||||
Number of customers accounting for more than ten percent of net revenue | customer | 1 | 1 | 1 | |||
Concentration risk, percentage | 50.00% | 78.00% | 58.00% | 78.00% | ||
Net product revenue | Geographic concentration risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 50.00% | 22.00% | 42.00% | |||
Accounts receivable | Customer concentration risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 90.00% | 68.00% | ||||
Number of customers accounting for more than ten percent of accounts receivable | customer | 1 | 1 | ||||
FRANCE | ||||||
Concentration Risk [Line Items] | ||||||
Product revenue, net | $ 25,500 | |||||
Deferred Revenue, Revenue Recognized | $ 3,000 | 22,500 | ||||
Amounts received in advance of revenue recognition | $ 4,500 | $ 4,500 | ||||
FRANCE | Net product revenue | Geographic concentration risk | ||||||
Concentration Risk [Line Items] | ||||||
Concentration risk, percentage | 39.00% | 26.00% | ||||
Other long-term liabilities | ||||||
Concentration Risk [Line Items] | ||||||
Accrued rent, noncurrent | $ 3,800 | $ 3,800 | 4,800 | |||
Other current liabilities | ||||||
Concentration Risk [Line Items] | ||||||
Accrued rent, current | $ 600 | $ 600 | $ 600 | |||
REGENXBIO, Inc. | Common Stock | ||||||
Concentration Risk [Line Items] | ||||||
Marketable securities (in shares) | shares | 687,139 | 687,139 | ||||
REGENXBIO, Inc. | Common Stock | Level 1 | ||||||
Concentration Risk [Line Items] | ||||||
Marketable securities, unrealized loss | $ 1,900 | $ 5,900 |
Significant Accounting Polici38
Significant Accounting Policies - Summary of Product Revenue Allowances and Reserve Categories (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2016 | Mar. 31, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | $ 6,379 | $ 5,122 |
Provision | 12,334 | 6,774 |
Payments or credits | (6,629) | (5,517) |
Adjustments | (4,739) | |
Ending balance | 7,345 | 6,379 |
Trade Allowances | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | 155 | 111 |
Provision | 457 | 375 |
Payments or credits | (464) | (331) |
Adjustments | 0 | |
Ending balance | 148 | 155 |
Rebates, Chargebacks and Discounts | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | 5,560 | 4,460 |
Provision | 12,147 | 6,036 |
Payments or credits | (6,071) | (4,936) |
Adjustments | (4,684) | |
Ending balance | 6,952 | 5,560 |
Other Incentives/ Returns | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | 664 | 551 |
Provision | (270) | 363 |
Payments or credits | (94) | (250) |
Adjustments | (55) | |
Ending balance | $ 245 | $ 664 |
Incyte Transaction (Details)
Incyte Transaction (Details) - USD ($) | Jun. 01, 2016 | May 09, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 |
Subsidiary, Sale of Stock [Line Items] | ||||||
Proceeds from the Incyte transaction, net of $4,484 of cash transferred | $ 144,847,000 | $ 0 | ||||
Consideration allocated to sale of business | 131,575,000 | 0 | ||||
Loss from reclassification of currency translation adjustment and pension obligation adjustments to earnings upon sale of European operations | 2,939,000 | 0 | ||||
Net gain recorded on transaction | $ 128,664,000 | $ 0 | 128,664,000 | $ 0 | ||
Incyte | License agreement | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Additional milestone payments (up to) | $ 135,000,000 | |||||
Contribution receivable for funding trials in 2016 (up to) | 7,000,000 | |||||
Contribution receivable for funding trials in 2017 (up to) | $ 7,000,000 | |||||
Incyte | License agreement | Minimum | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Royalty payment rate (as a percent) | 32.00% | |||||
Incyte | License agreement | Maximum | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Royalty payment rate (as a percent) | 50.00% | |||||
Incyte | License Agreement Acquirer Option | Minimum | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Royalty payment rate (as a percent) | 20.00% | |||||
Incyte | License Agreement Acquirer Option | Maximum | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Royalty payment rate (as a percent) | 25.00% | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | ARIAD Pharmaceuticals (Luxembourg) S.a.r.l [Member] | ||||||
Subsidiary, Sale of Stock [Line Items] | ||||||
Total consideration for the Incyte transaction (including upfront payment) | $ 140,000,000 | |||||
Estimated adjusted working capital payment | $ 4,800,000 | |||||
Proceeds from the Incyte transaction, net of $4,484 of cash transferred | 144,800,000 | 150,500,000 | ||||
Net liabilities transferred to Incyte | 7,500,000 | |||||
Expected refund related to final working capital adjustment | 1,800,000 | |||||
Consideration allocated to sale of business | 131,600,000 | |||||
Consideration allocated to undelivered elements | 18,900,000 | |||||
Loss from reclassification of currency translation adjustment and pension obligation adjustments to earnings upon sale of European operations | $ 2,900,000 | |||||
Net gain recorded on transaction | $ 128,700,000 | $ 128,700,000 |
License and Collaboration Agr40
License and Collaboration Agreements - Additional Information (Detail) - License agreement | 1 Months Ended | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Jan. 31, 2014trial | Jun. 30, 2016USD ($)product | Dec. 31, 2015USD ($) | |
Otsuka Pharmaceutical Co. Ltd | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Amount received upon execution of the agreement | $ 77,500,000 | |||
Additional milestone payments (up to) | $ 80,000,000 | |||
Term of license fee | 10 years | |||
Otsuka Pharmaceutical Co. Ltd | Japan | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Refundable withholding tax | $ 15,800,000 | |||
Medinol Ltd. | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Additional milestone payments (up to) | $ 34,800,000 | |||
Term of license fee | 15 years | |||
Number of registration trials initiated | trial | 2 | |||
Number of products required to be successful, developed and commercialized under agreement | product | 2 |
Inventory (Detail)
Inventory (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | ||||
Raw materials | $ 482 | $ 482 | $ 813 | |
Work-in-process | 1,289 | 1,289 | 89 | |
Finished goods | 814 | 814 | 1,007 | |
Total | 2,585 | 2,585 | 1,909 | |
Current portion | (903) | (903) | (1,096) | |
Non-current portion included in intangible and other assets, net | 1,682 | 1,682 | $ 813 | |
Cost of product revenue | ||||
Inventory [Line Items] | ||||
Inventory write-down | $ 200 | $ 300 | $ 200 |
Property and Equipment, Net (De
Property and Equipment, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 345,422 | $ 296,666 |
Less accumulated depreciation and amortization | (44,460) | (42,584) |
Property and Equipment, Net | 300,962 | 254,082 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 23,581 | 23,609 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 292,683 | 246,669 |
Equipment and furniture | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 29,158 | $ 26,388 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 345,422 | $ 345,422 | $ 296,666 | ||
Facility lease obligation | 275,800 | 275,800 | 231,700 | ||
Depreciation and amortization expense | 1,200 | $ 800 | 2,400 | $ 1,700 | |
Construction in progress | |||||
Property, Plant and Equipment [Line Items] | |||||
Property and equipment, gross | $ 292,683 | $ 292,683 | $ 246,669 |
Intangible and Other Assets, 44
Intangible and Other Assets, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Less accumulated amortization | $ (5,117) | $ (5,076) |
Intangible assets, net | 858 | 899 |
Inventory, non-current | 1,682 | 813 |
Other assets | 2,871 | 4,393 |
Intangible and Other Assets, Net | 5,411 | 6,105 |
Capitalized patent and license costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 5,975 | $ 5,975 |
Other Current Liabilities (Deta
Other Current Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Revenue from External Customer [Line Items] | ||
Amounts received in advance of revenue recognition | $ 4,476 | $ 23,545 |
Other | 821 | 779 |
Total | 5,297 | $ 24,324 |
FRANCE | ||
Revenue from External Customer [Line Items] | ||
Amounts received in advance of revenue recognition | $ 4,500 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-Term Debt And Financing Lease Obligations | $ 491,279 | $ 443,092 |
Less current portion | (24,522) | (13,872) |
Long term portion | 466,757 | 429,220 |
Convertible notes, net | ||
Debt Instrument [Line Items] | ||
Long-Term Debt And Financing Lease Obligations | 168,884 | 164,438 |
Royalty financing, net | ||
Debt Instrument [Line Items] | ||
Long-Term Debt And Financing Lease Obligations | 46,619 | 46,921 |
Facility lease obligation | ||
Debt Instrument [Line Items] | ||
Long-Term Debt And Financing Lease Obligations | $ 275,776 | $ 231,733 |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) $ / shares in Units, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jul. 31, 2015USD ($)Tranche | Jun. 30, 2014USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)$ / shares | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)$ / shares | May 09, 2016USD ($) | Jun. 11, 2014$ / shares | |
PDL BioPharma | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from collaborators | $ 50,000,000 | $ 3,900,000 | |||||||
Future maximum royalty payments, current year | 20,000,000 | ||||||||
Future maximum royalty payments, year two | 20,000,000 | ||||||||
Future maximum royalty payments, year three | $ 20,000,000 | ||||||||
Percentage of royalty rate payable on net sales, current | 2.50% | ||||||||
Percentage of royalty rate payable on net sales, year two | 5.00% | ||||||||
Percentage of royalty rate payable on net sales, year four | 6.50% | ||||||||
Internal rate of return (as percent) | 10.00% | ||||||||
Interest expense, debt | $ 1,300,000 | $ 2,300,000 | |||||||
Percentage of royalty rate payable on net sales, year three | 5.00% | ||||||||
PDL BioPharma | Scenario 1 | |||||||||
Debt Instrument [Line Items] | |||||||||
Contract amount | $ 50,000,000 | ||||||||
Period to receive additional payment | 1 year | ||||||||
PDL BioPharma | Scenario 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Contract amount | $ 100,000,000 | ||||||||
Amount of additional funding (up to) | $ 40,000,000 | ||||||||
PDL BioPharma | Scenario 2 | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Period to receive additional payment | 6 months | ||||||||
Number of tranches | Tranche | 1 | ||||||||
PDL BioPharma | Scenario 2 | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Period to receive additional payment | 12 months | ||||||||
Number of tranches | Tranche | 2 | ||||||||
Convertible Note Warrant | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of debt issued | $ 200,000,000 | ||||||||
Proceeds from issuance of warrants | $ 27,600,000 | ||||||||
Underlying common stock shares covered in hedge (shares) | shares | 21.5 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 12 | $ 12 | $ 12 | ||||||
Percentage Of Exercise Price Above Price Of Common Stock | 70.00% | ||||||||
Put And Call Options | PDL BioPharma | |||||||||
Debt Instrument [Line Items] | |||||||||
Internal rate of return (as percent) | 10.00% | ||||||||
Put And Call Options | PDL BioPharma | Period 1 | |||||||||
Debt Instrument [Line Items] | |||||||||
Option exercise price as percentage of paid amount (as percent) | 115.00% | 115.00% | |||||||
Put And Call Options | PDL BioPharma | Period 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Option exercise price as percentage of paid amount (as percent) | 120.00% | 120.00% | |||||||
Put And Call Options | PDL BioPharma | There After | |||||||||
Debt Instrument [Line Items] | |||||||||
Option exercise price as percentage of paid amount (as percent) | 130.00% | 130.00% | |||||||
Convertible note hedge | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of debt issued | $ 200,000,000 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 9.30 | ||||||||
Adjustments to Additional Paid in Capital, Note Hedge Transactions | $ 43,200,000 | ||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 21.5 | ||||||||
Convertible notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount of debt issued | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 | |||||
Debt instrument, interest rate (as percent) | 3.625% | 3.625% | |||||||
Proceeds from issuance of debt | $ 192,900,000 | ||||||||
Debt instrument, fee amount | 6,000,000 | ||||||||
Expenses from debt issuance | $ 1,100,000 | ||||||||
Debt Instrument, Date of First Required Payment | Dec. 15, 2014 | ||||||||
Debt Instrument, Maturity Date | Jun. 15, 2019 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 9.30 | ||||||||
Debt Instrument, Convertible, Conversion Premium | 32.50% | ||||||||
Sale of Stock, Price Per Share | $ / shares | $ 7.02 | ||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||
Interest Expenses Amortization Period | 5 years | ||||||||
Debt instrument, term | 5 years | ||||||||
Interest expense, debt | $ 4,062,000 | $ 3,813,000 | $ 8,071,000 | $ 7,668,000 | |||||
Remaining discount amortization period | 35 months 15 days | ||||||||
Convertible notes | Convertible note hedge | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from issuance of debt | $ 43,200,000 | ||||||||
Convertible notes | Liability Component | |||||||||
Debt Instrument [Line Items] | |||||||||
Expenses from debt issuance | $ 800,000 | ||||||||
Effective interest rate (as percent) | 9.625% | 9.625% | |||||||
Convertible notes | Equity Component [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Expenses from debt issuance | $ 300,000 | ||||||||
Default Event [Member] | Convertible Note [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt Instrument Debt Covenants Debt Default Holder Percent To Declare All Notes Due Minimum | 25.00% | ||||||||
Debt Instrument Consent Payment As Percentage Of Principal Amount | 100.00% | ||||||||
Period To Cure Default | 180 days |
Long-term Debt - Outstanding Co
Long-term Debt - Outstanding Convertible Note Balances (Detail) - Convertible notes, net - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2014 |
Debt Instrument [Line Items] | |||
Principal | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 |
Less: debt discount and unamortized debt issuance costs | (31,116,000) | (35,562,000) | |
Net carrying amount | 168,884,000 | 164,438,000 | |
Equity component | $ 40,896,000 | $ 40,896,000 |
Long-term Debt - Interest Expen
Long-term Debt - Interest Expense Related to Convertible Notes (Detail) - Convertible notes - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule Of Interest Expenses [Line Items] | ||||
Contractual interest expense | $ 1,813 | $ 1,813 | $ 3,626 | $ 3,625 |
Amortization of debt discount | 2,211 | 1,965 | 4,370 | 3,973 |
Amortization of debt issuance cost | 38 | 35 | 75 | 70 |
Total interest expense | $ 4,062 | $ 3,813 | $ 8,071 | $ 7,668 |
Leases, Licensed Technology a50
Leases, Licensed Technology and Other Commitments - Additional Information (Detail) ft² in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||
Jul. 31, 2016USD ($) | Aug. 31, 2015ft² | Mar. 31, 2015renewal_option | Sep. 30, 2013ft² | May 31, 2012ft² | Jun. 30, 2016USD ($)ft²renewal_option | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($)ft²renewal_option | Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Jan. 31, 2013ft²building | |
Operating Leased Assets [Line Items] | |||||||||||
Future minimum annual rental payments under operating lease due, remainder of year | $ 7,700 | $ 7,700 | |||||||||
Future minimum annual rental payments under operating lease due, year two | 31,500 | 31,500 | |||||||||
Future minimum annual rental payments under operating lease due, year three | 37,100 | 37,100 | |||||||||
Future minimum annual rental payments under operating lease due, year four | 35,100 | 35,100 | |||||||||
Property and equipment, gross | 345,422 | 345,422 | $ 296,666 | ||||||||
Future minimum annual rental payments under operating lease due, year five | 32,100 | 32,100 | |||||||||
Future minimum annual rental payments under operating lease due, thereafter | 325,300 | 325,300 | |||||||||
Aggregate base salaries payable to officers, due in remainder of year | 4,400 | 4,400 | |||||||||
Aggregate base salaries payable to officers, due in year two | 4,800 | 4,800 | |||||||||
Aggregate base salaries payable to officers, due year three | 4,800 | 4,800 | |||||||||
Aggregate base salaries payable to officers, due year four | $ 4,800 | $ 4,800 | |||||||||
Lease Agreements | |||||||||||
Operating Leased Assets [Line Items] | |||||||||||
Area of office and laboratory (in square feet) | ft² | 100 | 100 | |||||||||
Extended lease expiration date | 2019-07 | ||||||||||
Number of consecutive renewal options | renewal_option | 2 | 2 | |||||||||
Operating lease renewal options, lease term in years | 5 years | ||||||||||
Operating lease, letters of credit outstanding | $ 1,400 | $ 1,400 | |||||||||
Operating lease term | 3 years | ||||||||||
Additional area of office space (in square feet) | ft² | 26 | ||||||||||
Future minimum annual rental payments under operating lease due, remainder of year | 3,300 | 3,300 | |||||||||
Future minimum annual rental payments under operating lease due, year two | 6,000 | 6,000 | |||||||||
Future minimum annual rental payments under operating lease due, year three | 6,100 | 6,100 | |||||||||
Future minimum annual rental payments under operating lease due, year four | 3,600 | 3,600 | |||||||||
Operating lease rent expense | 2,200 | $ 2,600 | 4,500 | $ 4,500 | |||||||
Contingent rent expense | 176,000 | $ 327,000 | 369,000 | $ 539,000 | |||||||
Binney Street, Cambridge, Massachusetts | Lease Agreements | |||||||||||
Operating Leased Assets [Line Items] | |||||||||||
Operating lease renewal options, lease term in years | 5 years | ||||||||||
Operating lease, letters of credit outstanding | 9,200 | 9,200 | |||||||||
Operating lease term | 15 years | ||||||||||
Additional area of office space (in square feet) | ft² | 142 | ||||||||||
Future minimum annual rental payments under operating lease due, remainder of year | 4,400 | 4,400 | |||||||||
Future minimum annual rental payments under operating lease due, year two | 25,500 | 25,500 | |||||||||
Future minimum annual rental payments under operating lease due, year three | 31,000 | 31,000 | |||||||||
Future minimum annual rental payments under operating lease due, year four | $ 31,500 | 31,500 | |||||||||
Area of laboratory and office space under lease agreement (in square feet) | ft² | 386 | 244 | |||||||||
Number of units with all of the rentable space leased | building | 1 | ||||||||||
Number of units available for operating lease | building | 2 | ||||||||||
Occupancy year | 2,015 | ||||||||||
Facility lease obligation | $ 275,800 | 275,800 | |||||||||
Number of renewal options | renewal_option | 3 | ||||||||||
Future minimum annual rental payments under operating lease due, year five | 32,100 | 32,100 | |||||||||
Future minimum annual rental payments under operating lease due, year six | 32,700 | 32,700 | |||||||||
Future minimum annual rental payments under operating lease due, thereafter | $ 292,600 | 292,600 | |||||||||
Estimated year in which contract wil be complete | In the second half of 2016 | ||||||||||
Binney Street, Cambridge, Massachusetts | Sublease Agreement | |||||||||||
Operating Leased Assets [Line Items] | |||||||||||
Operating lease term | 10 years | ||||||||||
Future minimum annual rental payments under operating lease due, remainder of year | $ 5,300 | 5,300 | |||||||||
Future minimum annual rental payments under operating lease due, year two | 10,700 | 10,700 | |||||||||
Future minimum annual rental payments under operating lease due, year three | 10,900 | 10,900 | |||||||||
Future minimum annual rental payments under operating lease due, year four | 11,100 | 11,100 | |||||||||
Area of laboratory and office space under lease agreement (in square feet) | ft² | 160 | ||||||||||
Future minimum annual rental payments under operating lease due, year five | 11,300 | 11,300 | |||||||||
Future minimum annual rental payments under operating lease due, thereafter | $ 65,500 | 65,500 | |||||||||
Estimated year in which contract wil be complete | In the third quarter of 2016 | ||||||||||
Lausanne, Switzerland | Lease Agreements | |||||||||||
Operating Leased Assets [Line Items] | |||||||||||
Future minimum annual rental payments under operating lease due, year three | $ 1,100 | 1,100 | |||||||||
Future minimum annual rental payments under operating lease due, year four | 1,100 | 1,100 | |||||||||
Future minimum annual rental payments under operating lease due, year five | 1,100 | 1,100 | |||||||||
Subsequent event | Lease Agreements | |||||||||||
Operating Leased Assets [Line Items] | |||||||||||
Payments for early lease termination | $ 1,700 | ||||||||||
Construction in progress | |||||||||||
Operating Leased Assets [Line Items] | |||||||||||
Property and equipment, gross | $ 292,683 | $ 292,683 | $ 246,669 |
Stockholders' Deficit - Additio
Stockholders' Deficit - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | $ (103,141) | |||
Issuance of shares pursuant to ARIAD stock plans | 4,074 | |||
Stock-based compensation | 9,377 | |||
Payments of tax withholding obligations related to stock compensation | (1,337) | |||
Other comprehensive loss | (5,862) | |||
Reclassification of currency translation adjustment and pension obligation adjustments to earnings upon sale of European operations | $ 2,939 | $ 0 | 2,939 | $ 0 |
Net Income | 109,848 | $ (63,160) | 56,061 | $ (115,835) |
Ending Balance | $ (37,889) | $ (37,889) | ||
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance (in shares) | 189,662,148 | |||
Beginning Balance | $ 190 | |||
Issuance of shares pursuant to ARIAD stock plans (in shares) | 2,459,257 | |||
Issuance of shares pursuant to ARIAD stock plans | $ 2 | |||
Ending Balance (in shares) | 192,121,405 | 192,121,405 | ||
Ending Balance | $ 192 | $ 192 | ||
Additional Paid-in Capital | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 1,338,585 | |||
Issuance of shares pursuant to ARIAD stock plans | 4,072 | |||
Stock-based compensation | 9,377 | |||
Payments of tax withholding obligations related to stock compensation | (1,337) | |||
Ending Balance | 1,350,697 | 1,350,697 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | 3,835 | |||
Other comprehensive loss | (5,862) | |||
Reclassification of currency translation adjustment and pension obligation adjustments to earnings upon sale of European operations | 2,939 | |||
Ending Balance | 912 | 912 | ||
Accumulated Deficit | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning Balance | (1,445,751) | |||
Net Income | 56,061 | |||
Ending Balance | $ (1,389,690) | $ (1,389,690) |
Fair Value of Financial Instr52
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2014 |
Fair Value, Inputs, Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible notes, fair value | $ 214,000,000 | $ 198,000,000 | |
Convertible notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Amount of debt issued | $ 200,000,000 | $ 200,000,000 | $ 200,000,000 |
Stock Compensation - Additional
Stock Compensation - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2015 | Jun. 30, 2009 | Jun. 30, 2008 | Jun. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 1997 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options outstanding (in shares) | 12,254,166 | 12,254,166 | 10,232,969 | |||||||
Options issued (in shares) | 4,490,700 | |||||||||
Stock Option Plan 2006 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant (in shares) | 0 | 0 | ||||||||
Stock Option Plan 2001 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of options outstanding (in shares) | 0 | 0 | ||||||||
Stock Option Plan 2014 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares available for grant (in shares) | 8,497,040 | 8,497,040 | ||||||||
Inducement Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock issued (in shares) | 0 | |||||||||
Employee Stock Purchase Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares authorized (in shares) | 500,000 | |||||||||
Additional shares authorized (in shares) | 750,000 | 750,000 | 500,000 | |||||||
Payroll withholding period | 3 months | |||||||||
Number of ESPP shares issued (in shares) | 174,690 | 128,151 | ||||||||
Minimum | Employee Stock Purchase Plan | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Purchase price as percentage of market value | 85.00% | |||||||||
Stock options | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Expiration period | 10 years | 10 years | ||||||||
Stock options | Inducement Awards | Chief Executive Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Options issued (in shares) | 1,500,000 | |||||||||
Stock options | Inducement Awards | Chief Financial Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Options issued (in shares) | 550,000 | |||||||||
Stock options | Maximum | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Restricted shares or units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Total unrecognized compensation expense | $ 16.2 | $ 16.2 | ||||||||
Recognition period | 1 year 7 months 1 day | |||||||||
Restricted shares or units | Inducement Awards | Chief Executive Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 18 months | |||||||||
Stock issued (in shares) | 200,000 | |||||||||
Performance share units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Potential increase in units earned (up to) (as percent) | 60.00% | 60.00% | ||||||||
Potential increase in compensation cost (up to) (as percent) | 60.00% | 60.00% | ||||||||
Performance share units | Inducement Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 3 years | |||||||||
Performance share units | Inducement Awards | Chief Financial Officer | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock issued (in shares) | 150,000 | |||||||||
Stock and stock units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Fair value of stock and stock unit awards vested | $ 11.7 | $ 6.8 |
Stock Compensation - Compensati
Stock Compensation - Compensation Cost from Share-Based Payments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation cost | $ 2,658 | $ 10,644 | $ 9,377 | $ 19,078 |
Research and development expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation cost | 1,524 | 4,180 | 4,478 | 7,996 |
Selling, general and administrative expense | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation cost | 1,134 | 6,464 | 4,899 | 11,082 |
Purchases of common stock at a discount | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation cost | 99 | 120 | 265 | 246 |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation cost | 2,072 | 4,129 | 5,354 | 8,371 |
Stock and stock units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation cost | $ 487 | $ 6,395 | $ 3,758 | $ 10,461 |
Stock Compensaton - Stock Optio
Stock Compensaton - Stock Option Activity (Detail) | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Number of Shares | |
Options outstanding, beginning balance (in shares) | shares | 10,232,969 |
Granted (in shares) | shares | 4,490,700 |
Forfeited (in shares) | shares | (1,928,884) |
Exercised (in shares) | shares | (540,619) |
Options outstanding, ending balance (in shares) | shares | 12,254,166 |
Weighted Average Exercise Price Per Share | |
Options outstanding, beginning balance (in dollars per share) | $ / shares | $ 10 |
Granted (in dollars per share) | $ / shares | 6.30 |
Forfeited (in dollars per share) | $ / shares | 8.71 |
Exercised (in dollars per share) | $ / shares | 4.95 |
Options outstanding, ending balance (in dollars per share) | $ / shares | $ 9.07 |
Stock Compensaton - Stock and S
Stock Compensaton - Stock and Stock Unit Activity (Detail) - Stock and stock units | 6 Months Ended |
Jun. 30, 2016$ / sharesshares | |
Number of Shares | |
Outstanding, beginning balance (in shares) | shares | 4,493,054 |
Granted / awarded (in shares) | shares | 3,491,512 |
Forfeited (in shares) | shares | (2,513,304) |
Vested or restrictions lapsed (in shares) | shares | (1,855,022) |
Outstanding, ending balance (in shares) | shares | 3,616,240 |
Weighted Average Exercise Price Per Share | |
Outstanding, beginning balance (in dollars per share) | $ / shares | $ 8.64 |
Granted / awarded (in dollars per share) | $ / shares | 6.57 |
Forfeited (in dollars per share) | $ / shares | 7.64 |
Vested or restrictions lapsed (in dollars per share) | $ / shares | 8.48 |
Outstanding, ending balance (in dollars per share) | $ / shares | $ 7.42 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Calculation of Net Income (Loss) and Number of Shares Used to Compute Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | |||||
Net income (loss) | $ 109,848 | $ (63,160) | $ 56,061 | $ (115,835) | |
Shares used in basic computation (in shares) | 191,485 | 188,598 | 190,894 | 188,220 | |
Dilutive impact of employee equity award plans (in shares) | 3,084 | 0 | 2,610 | 0 | |
Shares used in diluted computation (in shares) | 194,569 | 188,598 | 193,504 | 188,220 | |
Basic (in usd per share) | $ 0.57 | $ (0.33) | $ 0.29 | $ (0.62) | |
Diluted (in usd per share) | $ 0.56 | $ (0.33) | $ 0.29 | $ (0.62) | |
Antidilutive securities excluded from diluted net income per share calculations (shares) | 10,100 | 14,800 | 10,600 | 14,800 | |
Convertible Note Warrant | |||||
Class of Warrant or Right [Line Items] | |||||
Underlying common stock shares covered in hedge (shares) | 21,500 | 21,500 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 12 | $ 12 | $ 12 |
Accumulated Other Comprehensi58
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ (128) | $ 3,835 | ||
Other comprehensive (loss) income | (1,899) | (5,862) | ||
Reclassification of cumulative translation adjustment and pension obligation adjustments to earnings upon sale of European operations | 2,939 | $ 0 | 2,939 | $ 0 |
Ending balance | 912 | 912 | ||
Unrealized Gains on Marketable Securities, net of tax | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 2,835 | 6,821 | ||
Other comprehensive (loss) income | (1,923) | (5,909) | ||
Reclassification of cumulative translation adjustment and pension obligation adjustments to earnings upon sale of European operations | 0 | 0 | ||
Ending balance | 912 | 912 | ||
Cumulative Translation Adjustment | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 535 | 567 | ||
Other comprehensive (loss) income | (12) | (44) | ||
Reclassification of cumulative translation adjustment and pension obligation adjustments to earnings upon sale of European operations | (523) | (523) | ||
Ending balance | 0 | 0 | ||
Defined Benefit Pension Obligation | ||||
Increase (Decrease) in Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (3,498) | (3,553) | ||
Other comprehensive (loss) income | 36 | 91 | ||
Reclassification of cumulative translation adjustment and pension obligation adjustments to earnings upon sale of European operations | 3,462 | 3,462 | ||
Ending balance | $ 0 | $ 0 |
Restructuring Actions - Additio
Restructuring Actions - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016USD ($) | Mar. 31, 2016Position | Jun. 30, 2015USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Restructuring and Related Activities [Abstract] | |||||
Charges | $ 92 | $ 0 | $ 3,010 | $ 0 | |
Number of positions reduced | Position | 90 | ||||
Payments for restructuring | $ 1,900 | 1,837 | |||
Accrual adjustment | $ (827) |
Restructuring Actions (Details)
Restructuring Actions (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Balance, January 1, 2016 | $ 0 | |||
Charges | $ 92 | $ 0 | 3,010 | $ 0 |
Amounts paid | (1,900) | (1,837) | ||
Adjustments, net | (827) | |||
Balance, June 30, 2016 | $ 346 | $ 346 |