Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'LIGAND PHARMACEUTICALS INC | ' |
Entity Central Index Key | '0000886163 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 20,023,148 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $180,663 | $11,639 |
Short-term investments | 5,925 | 4,340 |
Accounts receivable | 5,812 | 2,222 |
Inventory | 1,071 | 1,392 |
Capitalized expenses, VIE | 2,131 | 0 |
Other current assets | 1,602 | 959 |
Current debt issuance costs | 793 | 0 |
Current co-promote termination payments receivable | 523 | 4,329 |
Total current assets | 198,520 | 24,881 |
Restricted cash and investments | 1,261 | 1,341 |
Property and equipment, net | 551 | 867 |
Intangible assets, net | 51,317 | 53,099 |
Goodwill | 12,238 | 12,238 |
Commercial license rights | 4,568 | 4,571 |
Long-term co-promote termination payments receivable | 0 | 7,417 |
Long-term debt issuance costs | 3,598 | 0 |
Other assets | 230 | 299 |
Total assets | 272,283 | 104,713 |
Current liabilities: | ' | ' |
Accounts payable (including $2.2 million related to a VIE) | 4,864 | 3,951 |
Accrued liabilities | 4,311 | 5,337 |
Current contingent liabilities | 4,184 | 1,712 |
Current deferred income taxes | 1,574 | 1,574 |
Current note payable | 337 | 9,109 |
Current co-promote termination liability | 523 | 4,329 |
Current lease exit obligations | 2,526 | 2,811 |
Current deferred revenue | 114 | 116 |
Total current liabilities | 18,433 | 28,939 |
Long-term co-promote termination liability | 0 | 7,417 |
Long-term deferred revenue, net | 2,085 | 2,085 |
Long-term lease exit obligations | 1,133 | 3,071 |
Deferred income taxes | 1,214 | 1,098 |
Long-term contingent liabilities | 12,267 | 11,795 |
Long-term debt, net | 193,631 | 0 |
Other long-term liabilities | 737 | 695 |
Total liabilities | 229,500 | 55,100 |
Commitments and Contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Common stock, $0.001 par value; 33,333,333 shares authorized; 20,117,080 and 20,468,521 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 20 | 21 |
Additional paid-in capital | 707,180 | 718,017 |
Accumulated other comprehensive income | 3,543 | 2,914 |
Accumulated deficit | -666,371 | -671,339 |
Total stockholders' equity attributable to parent | 44,372 | 49,613 |
Noncontrolling interests | -1,589 | 0 |
Total liabilities and stockholders' equity | $272,283 | $104,713 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts payable | $4,864 | $3,951 |
Common stock, par value (USD per share) | $0.00 | $0.00 |
Common stock, shares authorized | 33,333,333 | 33,333,333 |
Common stock, shares issued | 20,117,080 | 20,468,521 |
Common stock, shares outstanding | 20,117,080 | 20,468,521 |
Viking | ' | ' |
Accounts payable | $2,225 | ' |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues: | ' | ' | ' | ' |
Royalties | $7,482 | $5,724 | $20,573 | $16,466 |
Material sales | 6,334 | 6,728 | 15,525 | 12,260 |
Collaborative research and development and other revenues | 1,157 | 553 | 5,441 | 5,511 |
Total revenues | 14,973 | 13,005 | 41,539 | 34,237 |
Operating costs and expenses: | ' | ' | ' | ' |
Cost of sales | 1,496 | 2,538 | 5,133 | 4,416 |
Research and development | 3,021 | 2,414 | 8,842 | 6,900 |
General and administrative | 6,742 | 4,756 | 17,053 | 13,564 |
Lease exit and termination costs | 182 | 227 | 522 | 359 |
Write-off of in-process research and development | 0 | 0 | 0 | 480 |
Total operating costs and expenses | 11,441 | 9,935 | 31,550 | 25,719 |
Income from operations | 3,532 | 3,070 | 9,989 | 8,518 |
Other (expense) income: | ' | ' | ' | ' |
Interest expense, net | -1,516 | -394 | -1,946 | -1,755 |
(Increase) decrease in contingent liabilities | -1,620 | -532 | -4,880 | 368 |
Other, net | 505 | -119 | 1,128 | 69 |
Total other expense, net | -2,631 | -1,045 | -5,698 | -1,318 |
Income before income taxes | 901 | 2,025 | 4,291 | 7,200 |
Income tax expense | -124 | -60 | -131 | -237 |
Income from continuing operations | 777 | 1,965 | 4,160 | 6,963 |
Discontinued operations: | ' | ' | ' | ' |
Gain on sale of Avinza Product Line before income taxes | 0 | 0 | 0 | 2,588 |
Income from discontinued operations | 0 | 0 | 0 | 2,588 |
Net income including noncontrolling interests: | 777 | 1,965 | 4,160 | 9,551 |
Less: Net loss attributable to noncontrolling interests | -503 | 0 | -809 | 0 |
Net income | $1,280 | $1,965 | $4,969 | $9,551 |
Basic per share amounts: | ' | ' | ' | ' |
Income from continuing operations (in usd per share) | $0.06 | $0.10 | $0.24 | $0.34 |
Income from discontinued operations (in usd per share) | $0 | $0 | $0 | $0.13 |
Net income (in usd per share) | $0.06 | $0.10 | $0.24 | $0.47 |
Diluted per share amounts: | ' | ' | ' | ' |
Income from continuing operations (in usd per share) | $0.06 | $0.09 | $0.23 | $0.33 |
Income from discontinued operations (in usd per share) | $0 | $0 | $0 | $0.13 |
Net income (in usd per share) | $0.06 | $0.09 | $0.23 | $0.46 |
Weighted average number of common shares-basic (in shares) | 20,417,187 | 20,357,558 | 20,584,469 | 20,268,261 |
Weighted average number of common shares-diluted (in shares) | 21,345,311 | 20,843,742 | 21,632,521 | 20,562,622 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $1,280 | $1,965 | $4,969 | $9,551 |
Unrealized net (loss) gain on available-for-sale securities, net of tax of $0 | -1,224 | 806 | 1,870 | 2,201 |
Less: Reclassification of net realized (losses) gains included in net income | -274 | 0 | 1,241 | 0 |
Comprehensive (loss) income | ($218) | $2,771 | $8,080 | $11,752 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Tax on unrealized net gain on available-for-sale securities | $0 | $0 | $0 | $0 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Operating activities | ' | ' |
Net income including noncontrolling interests: | $4,160 | $9,551 |
Less: gain from discontinued operations | 0 | 2,588 |
Income from continuing operations | 4,160 | 6,963 |
Adjustments to reconcile net income including noncontrolling interests to net cash provided by operating activities: | ' | ' |
Non-cash change in estimated fair value of contingent liabilities | 4,880 | -368 |
Write-off of in-process research and development | 0 | 480 |
Realized gain on sale of short-term investment | -1,241 | 0 |
Gain on write-off of assets | -16 | 0 |
Depreciation and amortization | 1,998 | 2,007 |
Amortization of debt discount and issuance fees | 1,223 | 0 |
Stock-based compensation | 8,795 | 4,149 |
Non-cash upfront fee | -1,211 | 0 |
Deferred income taxes | 116 | 237 |
Accretion of note payable | 225 | 321 |
Other | 0 | -13 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -3,590 | -918 |
Inventory | 321 | 86 |
Other current assets | -615 | -683 |
Other long-term assets | -1,245 | 173 |
Accounts payable and accrued liabilities | -3,478 | -2,702 |
Deferred revenue | -2 | -434 |
Net cash provided by operating activities of continuing operations | 10,320 | 9,298 |
Net cash used in operating activities of discontinued operations | 0 | -642 |
Net cash provided by operating activities | 10,320 | 8,656 |
Investing activities | ' | ' |
Purchase of commercial license rights | 0 | -3,571 |
Payments to CVR holders and other contingency payments | -1,936 | -100 |
Purchases of property and equipment | 0 | 263 |
Proceeds from sale of property and equipment | 125 | 3 |
Proceeds from sale of short-term investments | 1,496 | 0 |
Other, net | -1 | -40 |
Net cash used in investing activities | -316 | -3,971 |
Financing activities | ' | ' |
Repayment of debt | -9,364 | -16,224 |
Gross proceeds from issuance of 2019 Convertible Senior Notes | 245,000 | 0 |
Payment of debt issuance costs | -5,711 | 0 |
Proceeds from issuance of warrants | 11,637 | 0 |
Purchase of convertible bond hedge | -48,143 | 0 |
Net proceeds from stock option exercises and ESPP | 4,124 | 2,429 |
Share repurchase | -38,523 | 0 |
Net cash provided by (used in) financing activities | 159,020 | -13,795 |
Net increase (decrease) in cash and cash equivalents | 169,024 | -9,110 |
Cash and cash equivalents at beginning of period | 11,639 | 12,381 |
Cash and cash equivalents at end of period | 180,663 | 3,271 |
Supplemental disclosure of cash flow information | ' | ' |
Interest paid | 494 | 1,566 |
Taxes paid | 3 | 5 |
Supplemental schedule of non-cash activity | ' | ' |
Liability for commercial license rights | 0 | 1,000 |
Accrued inventory purchases | 0 | 227 |
Unrealized gain on AFS investments | $1,870 | $2,201 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Basis of Presentation | ' | |||||||||||||||
Basis of Presentation | ||||||||||||||||
Ligand Pharmaceuticals Incorporated, a Delaware corporation (the "Company" or "Ligand") is a biopharmaceutical company that develops and acquires royalty and other revenue generating assets and couples them with a lean corporate cost structure. The Company diversifies its portfolio of assets across numerous technology types, therapeutic areas, drug targets, and industry partners. The Company added Captisol® to its technology portfolio in January 2011. Captisol is a formulation technology that has enabled six FDA approved products, including Onyx's Kyprolis® and Baxter International's Nexterone®, and is currently being developed in a number of clinical-stage partner programs. The Company's therapies address the unmet medical needs of patients for a broad spectrum of diseases including hepatitis, multiple myeloma, muscle wasting, Alzheimer’s disease, dyslipidemia, diabetes, anemia, asthma, Focal Segmental Glomerulosclerosis ("FSGS") and osteoporosis. Ligand has established multiple alliances with the world’s leading pharmaceutical companies including GlaxoSmithKline, Onyx Pharmaceuticals (a subsidiary of Amgen, Inc.), Merck, Pfizer, Baxter International, Lundbeck Inc. and Spectrum Pharmaceuticals, Inc. The Company’s principal market is the United States. The Company sold its Oncology Product Line ("Oncology") and Avinza Product Line ("Avinza") on October 25, 2006 and February 26, 2007, respectively. The operating results for Oncology and Avinza have been presented in the accompanying condensed consolidated financial statements as "Discontinued Operations." | ||||||||||||||||
The Company has incurred significant losses since its inception. As of September 30, 2014, the Company’s accumulated deficit was approximately $666.4 million and the Company had working capital of approximately $180.1 million. Management believes that cash flows from operations will increase due to Captisol® sales, an increase in royalty revenues driven primarily from continued increases in Promacta® and Kyprolis® sales, and also from anticipated new license and milestone revenues. The Company expects to build cash in future months as it continues to generate significant cash flows from operations. The Company’s future operating and capital requirements will depend on many factors, including, but not limited to: the pace of scientific progress in its research and development programs; the potential success of these programs; the scope and results of preclinical testing and clinical trials; the time and costs involved in obtaining regulatory approvals; the costs involved in preparing, filing, prosecuting, maintaining and enforcing patent claims; competing technological and market developments; the amount of royalties on sales of the commercial products of its partners; the efforts of its collaborative partners; obligations under its operating lease agreements; and the capital requirements of any companies the Company may acquire in the future. The ability of the Company to achieve its operational targets is dependent upon the Company’s ability to further implement its business goals and generate sufficient operating cash flow. | ||||||||||||||||
Principles of Consolidation | ||||||||||||||||
The accompanying unaudited condensed consolidated financial statements include Ligand and its wholly owned subsidiaries, Ligand JVR, Allergan Ligand Retinoid Therapeutics, Seragen, Inc., Pharmacopeia, Inc. ("Pharmacopeia"), Neurogen Corporation ("Neurogen"), CyDex Pharmaceuticals, Inc. ("CyDex"), Metabasis Therapeutics, Inc. ("Metabasis") and Nexus VI, Inc. Also included is Viking Therapeutics, Inc. ("Viking"), a variable interest entity ("VIE") for which the Company is deemed under applicable accounting guidance to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||||||
Basis of Presentation | ||||||||||||||||
The Company’s accompanying unaudited condensed consolidated financial statements as of September 30, 2014 and for the three and nine months ended September 30, 2014 and 2013 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for annual financial statements. The Company’s unaudited condensed consolidated balance sheet at December 31, 2013 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position and results of operations of the Company and its subsidiaries, have been included. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These financial statements should be read in conjunction with the consolidated financial statements and notes therein included in the Company’s annual report on Form 10-K for the year ended December 31, 2013. | ||||||||||||||||
Use of Estimates | ||||||||||||||||
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, contingent assets and liabilities, definite and indefinite lived intangible assets, goodwill, co-promote termination payments receivable and co-promote termination liabilities, uncertain tax positions, deferred revenue, lease exit liability and income tax net operating loss carryforwards during the reporting period. The Company’s critical accounting policies are those that are both most important to the Company’s financial condition and results of operations and require the most difficult, subjective or complex judgments on the part of management in their application, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Because of the uncertainty of factors surrounding the estimates or judgments used in the preparation of the condensed consolidated financial statements, actual results may materially vary from these estimates. | ||||||||||||||||
Income Per Share | ||||||||||||||||
Basic income per share is calculated by dividing net income by the weighted-average number of common shares and vested restricted stock units outstanding. Diluted income per share is computed by dividing net income by the weighted-average number of common shares and vested restricted stock units outstanding and the weighted-average number of dilutive common stock equivalents, including stock options, non-vested restricted stock units, convertible notes and warrants. Common stock equivalents are only included in the diluted income per share calculation when their effect is dilutive. The total number of potential common shares excluded from the computation of diluted income per share because their inclusion would have been anti-dilutive was 5.0 million and 0.9 million, as of September 30, 2014 and 2013, respectively. | ||||||||||||||||
The following table sets forth the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
EPS attributable to common shareholders: | ||||||||||||||||
Net income from continuing operations | $ | 1,280 | $ | 1,965 | 4,969 | $ | 6,963 | |||||||||
Net income from discontinued operations | — | — | — | 2,588 | ||||||||||||
Net income | $ | 1,280 | $ | 1,965 | $ | 4,969 | $ | 9,551 | ||||||||
Shares used to compute basic income per share | 20,417,187 | 20,357,558 | 20,584,469 | 20,268,261 | ||||||||||||
Dilutive potential common shares: | ||||||||||||||||
Restricted stock | 22,531 | 77,609 | 37,387 | 62,051 | ||||||||||||
Stock options | 905,593 | 408,575 | 1,010,665 | 232,310 | ||||||||||||
Shares used to compute diluted income per share | 21,345,311 | 20,843,742 | 21,632,521 | 20,562,622 | ||||||||||||
Basic per share amounts: | ||||||||||||||||
Income from continuing operations | $ | 0.06 | $ | 0.1 | $ | 0.24 | $ | 0.34 | ||||||||
Income from discontinued operations | — | — | — | 0.13 | ||||||||||||
Net income | $ | 0.06 | $ | 0.1 | $ | 0.24 | $ | 0.47 | ||||||||
Diluted per share amounts: | ||||||||||||||||
Income from continuing operations | $ | 0.06 | $ | 0.09 | $ | 0.23 | $ | 0.33 | ||||||||
Income from discontinued operations | — | — | — | 0.13 | ||||||||||||
Net income | $ | 0.06 | $ | 0.09 | $ | 0.23 | $ | 0.46 | ||||||||
Cash, Cash Equivalents and Short-term Investments | ||||||||||||||||
Cash and cash equivalents consist of cash and highly liquid securities with maturities at the date of acquisition of three months or less. Securities received by the Company as a result of a milestone payment from licensees are considered short-term investments and have been classified by management as available-for-sale. Such investments are carried at fair value, with unrealized gains and losses included in the statement of comprehensive income (loss). The Company determines the cost of investments based on the specific identification method. | ||||||||||||||||
Restricted Cash and Investments | ||||||||||||||||
Restricted cash and investments consist of certificates of deposit held with a financial institution as collateral under a facility lease and third-party service provider arrangements. | ||||||||||||||||
The following table summarizes the various investment categories at September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
Cost | Gross unrealized | Gross unrealized | Estimated | |||||||||||||
gains | losses | fair value | ||||||||||||||
30-Sep-14 | ||||||||||||||||
Short-term investments | $ | 1,426 | $ | 4,499 | $ | — | $ | 5,925 | ||||||||
Certificates of deposit-restricted | 1,261 | — | — | 1,261 | ||||||||||||
$ | 2,687 | $ | 4,499 | $ | — | $ | 7,186 | |||||||||
31-Dec-13 | ||||||||||||||||
Short-term investments | $ | 1,426 | $ | 2,914 | $ | — | $ | 4,340 | ||||||||
Certificates of deposit-restricted | 1,341 | — | — | 1,341 | ||||||||||||
$ | 2,767 | $ | 2,914 | $ | — | $ | 5,681 | |||||||||
Concentrations of Credit Risk | ||||||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, investments and accounts receivable. | ||||||||||||||||
The Company invests its excess cash principally in U.S. government debt securities, investment-grade corporate debt securities and certificates of deposit. The Company has established guidelines relative to diversification and maturities that maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. The Company did not experience any significant losses on its cash equivalents, short-term investments or restricted investments for the periods ending September 30, 2014 and December 31, 2013. | ||||||||||||||||
As of September 30, 2014 and December 31, 2013, cash deposits held at financial institutions in excess of FDIC insured amounts of $250,000 were approximately $92.8 million and $11.1 million, respectively. | ||||||||||||||||
Accounts receivable from one customer was 57% of total accounts receivable at September 30, 2014. Accounts receivable from two customers was 75% of total accounts receivable at December 31, 2013. | ||||||||||||||||
The Company currently obtains Captisol from a single supplier. If this supplier were not able to supply the requested amounts of Captisol and the Company's existing inventory was depleted, the Company would be unable to continue to derive revenues from the sale of Captisol until it obtained an alternative source, which might take a considerable length of time. The Company maintains inventory of Captisol, which has a five year shelf life, at three geographically spread storage locations in the United States and Europe. If a disaster were to strike any of these locations, it could lead to supply interruptions. | ||||||||||||||||
Inventory | ||||||||||||||||
Inventory is stated at the lower of cost or market value. The Company determines cost using the first-in, first-out method. The Company analyzes its inventory levels periodically and writes down inventory to its net realizable value if it has become obsolete, has a cost basis in excess of its expected net realizable value or is in excess of expected requirements. There were no write downs related to obsolete inventory recorded for the three and nine months ended September 30, 2014 and 2013. | ||||||||||||||||
Property and Equipment | ||||||||||||||||
Property and equipment is stated at cost and consists of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Lab and office equipment | $ | 2,509 | $ | 3,737 | ||||||||||||
Leasehold improvements | 273 | 387 | ||||||||||||||
Computer equipment and software | 631 | 616 | ||||||||||||||
3,413 | 4,740 | |||||||||||||||
Less accumulated depreciation and amortization | (2,862 | ) | (3,873 | ) | ||||||||||||
Total property and equipment, net | $ | 551 | $ | 867 | ||||||||||||
Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from three to ten years. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or their related lease term, whichever is shorter. Depreciation expense recognized for the three months ended September 30, 2014 and 2013 was $0.1 million. Depreciation expense for the nine months ended September 30, 2014 and 2013 was $0.2 million. Depreciation expense is included in operating expenses. | ||||||||||||||||
Other Current Assets | ||||||||||||||||
Other current assets consist of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Prepaid expenses | $ | 1,178 | $ | 786 | ||||||||||||
Other receivables | 424 | 173 | ||||||||||||||
Total current assets | $ | 1,602 | $ | 959 | ||||||||||||
Goodwill and Other Identifiable Intangible Assets | ||||||||||||||||
Goodwill and other identifiable intangible assets consist of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Indefinite lived intangible assets | ||||||||||||||||
Acquired in-process research and development | $ | 12,556 | $ | 12,556 | ||||||||||||
Goodwill | 12,238 | 12,238 | ||||||||||||||
Definite lived intangible assets | ||||||||||||||||
Complete technology | 15,267 | 15,267 | ||||||||||||||
Less: Accumulated amortization | (2,807 | ) | (2,235 | ) | ||||||||||||
Trade name | 2,642 | 2,642 | ||||||||||||||
Less: Accumulated amortization | (487 | ) | (387 | ) | ||||||||||||
Customer relationships | 29,600 | 29,600 | ||||||||||||||
Less: Accumulated amortization | (5,454 | ) | (4,344 | ) | ||||||||||||
Total goodwill and other identifiable intangible assets, net | $ | 63,555 | $ | 65,337 | ||||||||||||
The Company accounts for goodwill and other intangible assets in accordance with Accounting Standards Codification ("ASC") Topic 350 - Intangibles - Goodwill and Other which, among other things, establishes standards for goodwill acquired in a business combination, eliminates the amortization of goodwill and requires the carrying value of goodwill and certain non-amortizing intangibles to be evaluated for impairment on an annual basis. The Company uses the income approach and the market approach, each weighted at 50%, when performing its goodwill impairment analysis. For the income approach, the Company considers the present value of future cash flows and the carrying value of its assets and liabilities, including goodwill. The market approach is based on an analysis of revenue multiples of peer public companies. If the carrying value of the assets and liabilities, including goodwill, were to exceed the Company’s estimation of the fair value, the Company would record an impairment charge in an amount equal to the excess of the carrying value of goodwill over the implied fair value of the goodwill. The Company performs an evaluation of goodwill and other intangibles as of December 31 of each year, absent any indicators of earlier impairment, to ensure that impairment charges, if applicable, are reflected in the Company's financial results before December 31 of each year. When it is determined that impairment has occurred, a charge to operations is recorded. Goodwill and other intangible asset balances are included in the identifiable assets of the business segment to which they have been assigned. Any goodwill impairment, as well as the amortization of other purchased intangible assets, is charged against the respective business segments' operating income. | ||||||||||||||||
Amortization of definite-lived intangible assets is computed using the straight-line method over the estimated useful life of the asset of 20 years. Amortization expense of $0.6 million and $1.8 million was recognized for each of the three and nine months ended September 30, 2014 and 2013, respectively. Estimated amortization expense for the years ending December 31, 2014 through 2018 is $2.4 million per year. | ||||||||||||||||
Acquired In-Process Research and Development | ||||||||||||||||
Intangible assets related to acquired in-process research and development ("IPR&D") are considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. During the period the assets are considered to be indefinite-lived, they will not be amortized but will be tested for impairment on an annual basis and between annual tests if the Company becomes aware of any events occurring or changes in circumstances that would indicate a reduction in the fair value of the IPR&D projects below their respective carrying amounts. If and when development is complete, which generally occurs if and when regulatory approval to market a product is obtained, the associated assets would be deemed definite-lived and would then be amortized based on their respective estimated useful lives at that point in time. For the three and nine months ended September 30, 2014 and the three months ended September 30, 2013 there was no impairment of IPR&D. For the nine months ended September 30, 2013, the Company recorded a non-cash impairment charge of $0.5 million for the write-off of IPR&D for Captisol-enabled Clopidogrel (MDCO-157). The asset was impaired upon notification from the Medicines Company that they intended to terminate the license agreement and return the rights of the compound to the Company. MDCO-157 is an intravenous option of the anti-platelet medication designed for situations where the administration of oral platelet inhibitors is not feasible or desirable. | ||||||||||||||||
Impairment of Long-Lived Assets | ||||||||||||||||
Management reviews long-lived assets for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value for the Company’s long-lived assets is determined using the expected cash flows discounted at a rate commensurate with the risk involved. As of September 30, 2014, management does not believe there have been any events or circumstances indicating that the carrying amount of its long-lived assets may not be recoverable. | ||||||||||||||||
Commercial license rights | ||||||||||||||||
Commercial license rights represent a portfolio of future milestone and royalty payment rights acquired in accordance with the Royalty Stream and Milestone Payments Purchase Agreement entered into with Selexis SA ("Selexis") in April 2013. The portfolio consists of over 15 Selexis commercial license agreement programs with various pharmaceutical-company counterparties. The purchase price was $4.6 million, inclusive of acquisition costs. The Company paid $3.6 million upon closing and paid an additional $1.0 million in April 2014. Individual commercial license rights acquired under the agreement are carried at allocated cost and approximate fair value. The carrying value of the license rights will be reduced on a pro-rata basis as revenue is realized over the term of the agreement. Declines in the fair value of individual license rights below their carrying value that are deemed to be other than temporary are reflected in earnings in the period such determination is made. As of September 30, 2014, management does not believe there have been any events or circumstances indicating that the carrying amount of its commercial license rights may not be recoverable. | ||||||||||||||||
Accrued Liabilities | ||||||||||||||||
Accrued liabilities consist of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Compensation | $ | 1,388 | $ | 1,929 | ||||||||||||
Professional fees | 805 | 697 | ||||||||||||||
Accrued interest payable | 230 | — | ||||||||||||||
Other | 1,888 | 2,711 | ||||||||||||||
Total accrued liabilities | $ | 4,311 | $ | 5,337 | ||||||||||||
Other Long-Term Liabilities | ||||||||||||||||
Other long-term liabilities consist of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Deposits | $ | 402 | $ | 345 | ||||||||||||
Deferred rent | 335 | 350 | ||||||||||||||
Total other long-term liabilities | $ | 737 | $ | 695 | ||||||||||||
Contingent Liabilities | ||||||||||||||||
In connection with the Company’s acquisition of CyDex in January 2011, the Company recorded a $17.6 million contingent liability, inclusive of the $4.3 million payment made in January 2012, for amounts potentially due to holders of the CyDex contingent value rights ("CVRs") and former license holders. The liability is periodically assessed based on events and circumstances related to the underlying milestones, royalties and material sales. Any change in fair value is recorded in the Company’s consolidated statements of operations. The carrying amount of the liability may fluctuate significantly and actual amounts paid under the CVR agreements may be materially different than the carrying amount of the liability. The fair value of the liability at September 30, 2014 and December 31, 2013 was $12.9 million and $9.3 million, respectively. The Company recorded a fair-value adjustment to increase the liability for CyDex-related contingent liabilities by $2.8 million and $5.6 million for the three and nine months ended September 30, 2014, respectively, and an adjustment to increase the liability by $1.2 million and to decrease the liability by $2.1 million for the three and nine months ended September 30, 2013, respectively. There was a revenue-sharing payment of $1.6 million made during the nine months ended September 30, 2014, and no revenue sharing payments were made during the three months ended September 30, 2014 and three and nine months ended September 30, 2013. Other contingency payments related to the CyDex acquisition of $0.3 million were made during the three and nine months ended September 30, 2014 and other contingency payments of $0.1 million were made during the three and nine months ended September 30, 2013. | ||||||||||||||||
In connection with the Company’s acquisition of Metabasis in January 2010, the Company issued to Metabasis stockholders four tradable CVRs, one CVR from each of four respective series of CVR, for each Metabasis share. The CVRs will entitle Metabasis stockholders to cash payments as frequently as every six months as cash is received by the Company from proceeds from the sale or partnering of any of the Metabasis drug development programs, among other triggering events. The fair values of the CVRs are remeasured at each reporting date through the term of the related agreement. Changes in the fair values are reported in the statement of operations as income (decreases) or expense (increases). The carrying amount of the liability may fluctuate significantly based upon quoted market prices and actual amounts paid under the agreements may be materially different than the carrying amount of the liability. The fair value of the liability was estimated to be $3.5 million and $4.2 million as of September 30, 2014 and December 31, 2013, respectively. The Company recorded a decrease in the liability for Metabasis-related CVRs of $1.2 million and an increase in the liability of $0.7 million for the three and nine months ended September 30, 2014, respectively. The Company recorded a decrease in the liability of $0.7 million for the three months ended September 30, 2013 and an increase in the liability of $1.7 million for the nine months ended September 30, 2013. | ||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
Fair value is defined as the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. The Company establishes a three-level hierarchy to prioritize the inputs used in measuring fair value. The levels are described in the below with level 1 having the highest priority and level 3 having the lowest: | ||||||||||||||||
Level 1 - Quoted prices in active markets; | ||||||||||||||||
Level 2 - Inputs other than the quoted prices in active markets that are observable either directly or indirectly; and | ||||||||||||||||
Level 3 - Unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions. | ||||||||||||||||
The Company’s short-term investments include investments in equity securities which the Company received as a result of event-based and upfront payments from licensees. Additionally, there is a liability related to the investment in equity securities for amounts owed to former license holders. The Metabasis CVR liability is marked-to-market at each reporting period based upon the quoted market prices of the underlying CVR. The fair value of the CyDex contingent liabilities are determined at each reporting period based upon an income valuation model. The co-promote termination payments receivable represents a non-interest-bearing receivable for future payments to be made by Pfizer related to Avinza product sales and is recorded at its fair value. The receivable and liability will remain equal, and are adjusted each quarter for changes in the fair value of the obligation including any changes in the estimate of future net Avinza product sales. | ||||||||||||||||
The Company evaluates its financial instruments at each reporting period to determine if any transfers between the various three-level hierarchy have occurred and appropriately reclassifies its financial instruments to the appropriate level within the hierarchy. | ||||||||||||||||
Revenue Recognition | ||||||||||||||||
Royalties on sales of products commercialized by the Company’s partners are recognized in the quarter reported by the respective partner. Generally, the Company receives royalty reports from its licensees approximately one quarter in arrears due to the fact that its agreements require partners to report product sales between 30 and 60 days after the end of the quarter. The Company recognizes royalty revenues when it can reliably estimate such amounts and collectability is reasonably assured. Under this accounting policy, the royalty revenues reported are not based upon estimates and such royalty revenues are typically reported to the Company by its partners in the same period in which payment is received. | ||||||||||||||||
Revenue from material sales of Captisol is recognized upon transfer of title, which normally passes upon shipment to the customer. The Company’s credit and exchange policy includes provisions for the return of product between 30 to 90 days, depending on the specific terms of the individual agreement, when that product (1) does not meet specifications, (2) is damaged in shipment (in limited circumstances where title does not transfer until delivery), or (3) is exchanged for an alternative grade of Captisol. | ||||||||||||||||
Revenue from research funding under our collaboration agreements is earned and recognized on a percentage-of completion basis as research hours are incurred in accordance with the provisions of each agreement. | ||||||||||||||||
Nonrefundable, upfront license fees are recognized as revenue upon delivery of the license, if the license is determined to have standalone value that is not dependent on any future performance by the Company under the applicable collaboration agreement. Nonrefundable contingent event-based payments are recognized as revenue when the contingent event is met, which is usually the earlier of when payments are received or collections are assured, provided that it does not require future performance by the Company. The Company occasionally has sub-license obligations related to arrangements for which it receives license fees, milestones and royalties. The Company evaluates the determination of gross versus net reporting based on each individual agreement. | ||||||||||||||||
Sales-based contingent payments from partners are accounted for similarly to royalties, with revenue recognized upon achievement of the sales targets assuming all other revenue recognition criteria for milestones are met. Revenue from development and regulatory milestones is recognized when earned, as evidenced by written acknowledgement from the collaborator, provided that (1) the milestone event is substantive, its achievability was not reasonably assured at the inception of the agreement, and the Company has no further performance obligations relating to that event, and (2) collectability is reasonably assured. If these criteria are not met, the milestone payment is recognized over the remaining period of the Company’s performance obligations under the arrangement. | ||||||||||||||||
The Company analyzes its revenue arrangements and other agreements to determine whether there are multiple elements that should be separated and accounted for individually or as a single unit of accounting. For multiple element contracts, arrangement consideration is allocated at the inception of the arrangement to all deliverables on the basis of relative selling price, using a hierarchy to determine selling price. Management first considers vendor-specific objective evidence ("VSOE"), then third-party evidence ("TPE") and if neither VSOE nor TPE exist, the Company uses its best estimate of selling price. | ||||||||||||||||
Many of the Company's revenue arrangements involve the bundling of a license with the option to purchase manufactured product. Licenses are granted to pharmaceutical companies for the use of Captisol in the development of pharmaceutical compounds. The licenses may be granted for the use of the Captisol product for all phases of clinical trials and through commercial availability of the host drug or may be limited to certain phases of the clinical trial process. Management believes that the Company's licenses have stand-alone value at the outset of an arrangement because the customer obtains the right to use Captisol in its formulations without any additional input by the Company. | ||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||
The Company maintains an allowance for doubtful accounts based on the best estimate of the amount of probable losses in the Company’s existing accounts receivable. Accounts receivable that are outstanding longer than their contractual payment terms, ranging from 30 to 90 days, are considered past due. When determining the allowance for doubtful accounts, several factors are taken into consideration, including historical write-off experience and review of specific customer accounts for collectability. Account balances are charged off against the allowance after collection efforts have been exhausted and the potential for recovery is considered remote. There was no allowance for doubtful accounts included in the balance sheets at September 30, 2014 and December 31, 2013. | ||||||||||||||||
Accounting for Stock-Based Compensation | ||||||||||||||||
Stock-based compensation expense for awards to employees and non-employee directors is recognized on a straight-line basis over the vesting period until the last tranche vests. Compensation cost for consultant awards is recognized over each separate tranche’s vesting period. The following table summarizes stock-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock-based compensation expense as a component of: | ||||||||||||||||
Research and development expenses | $ | 1,169 | $ | 438 | $ | 2,814 | $ | 1,272 | ||||||||
General and administrative expenses | 2,533 | 1,095 | 5,981 | 2,877 | ||||||||||||
$ | 3,702 | $ | 1,533 | $ | 8,795 | $ | 4,149 | |||||||||
The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Risk-free interest rate | 1.90% | 1.80% | 1.90% | 1.40% | ||||||||||||
Dividend yield | — | — | — | — | ||||||||||||
Expected volatility | 67% | 70% | 68% | 70% | ||||||||||||
Expected term | 6.4 | 6.3 | 6.4 | 6.3 | ||||||||||||
Forfeiture rate | 8.60% | 8.80% | 8.6%-9.7% | 8.4%-9.8% | ||||||||||||
The risk-free interest rate is based on the U.S. Treasury yield curve at the time of the grant. The expected term of the employee and non-employee director options is the estimated weighted-average period until exercise or cancellation of vested options (forfeited unvested options are not considered) based on historical experience. The expected term for consultant awards is the remaining period to contractual expiration. Volatility is a measure of the expected amount of variability in the stock price over the expected life of an option expressed as a standard deviation. In making this assumption, the Company used the historical volatility of the Company’s stock price over a period equal to the expected term. The forfeiture rate is based on historical data at the time of the grant. | ||||||||||||||||
Preclinical Study and Clinical Trial Accruals | ||||||||||||||||
Substantial portions of the Company’s preclinical studies and all of the Company's clinical trials have been performed by third-party laboratories, contract research organizations, or other vendors (collectively "CROs"). Some CROs bill monthly for services performed, while others bill based upon milestone achievement. The Company accrues for each of the agreements it has with CROs on a monthly basis. For preclinical studies, accruals are estimated based upon the percentage of work completed and the contract milestones achieved. For clinical studies, accruals are estimated based upon a percentage of work completed, the number of patients enrolled and the duration of the study. The Company monitors patient enrollment, the progress of clinical studies and related activities to the extent possible through internal reviews of data reported to it by the CROs, correspondence with the CROs and clinical site visits. The Company's estimates are dependent upon the timelines and accuracy of the data provided by its CROs regarding the status of each program and total program spending. The Company periodically evaluates its estimates to determine if adjustments are necessary or appropriate based on information it receives concerning changing circumstances, and conditions or events that may affect such estimates. No material adjustments to preclinical study and clinical trial accrued expenses have been recognized to date. | ||||||||||||||||
Sale of Royalty Rights | ||||||||||||||||
The Company previously sold to third parties the rights to future royalties of certain of its products. As part of the underlying royalty agreements, the partners have the right to offset a portion of any future royalty payments owed to the Company to the extent of previous milestone payments. Accordingly, the Company deferred a portion of the revenue associated with each tranche of royalty right sold, equal to the pro-rata share of the potential royalty offset. Such amounts associated with the offset rights against future royalty payments will be recognized as revenue upon receipt of future royalties from the respective partners. As of September 30, 2014 there was no deferred revenue remaining related to the sale of royalty rights. As of December 31, 2013, the Company had deferred $0.1 million of revenue related to the sale of royalty rights. | ||||||||||||||||
Product Returns | ||||||||||||||||
In connection with the sale of the Avinza and Oncology product lines, the Company retained the obligation for returns of product that were shipped to wholesalers prior to the close of the transactions. The accruals for product returns, which were recorded as part of the accounting for the sales transactions, are based on historical experience. Any subsequent changes to the Company’s estimate of product returns are accounted for as a component of discontinued operations. | ||||||||||||||||
Milestone Payments | ||||||||||||||||
In May 2014, the Company entered into a licensing agreement and research collaboration with Omthera Pharmaceuticals. The research collaboration will target the development of novel products that utilize the proprietary Ligand-developed LTP TECHNOLOGY™ to improve lipid-lowering activity of certain omega-3 fatty acids. The Company is eligible to receive development, regulatory and event-based payments. The completion of a proof of concept under the development program would trigger a $1.0 million payment which would represent a milestone under the milestone method of accounting as (1) it is an event that can only be achieved in part on the Company's past performance, (2) there was substantive uncertainty at the date the arrangement was entered into that the event would be achieved and (3) it results in additional payment being due to the Company. None of the other event-based payments represents a milestone under the milestone method of accounting. No event based payment or milestone was achieved during the periods presented. | ||||||||||||||||
Cost of Goods Sold | ||||||||||||||||
The Company determines cost using the first-in, first-out method. Cost of goods sold include all costs of purchase and other costs incurred in bringing the inventories to their present location and condition, including costs to store and distribute. | ||||||||||||||||
Research and Development | ||||||||||||||||
Collaborative research and development expense consists of labor, material, equipment and allocated facility costs of the Company’s scientific staff who are working pursuant to the Company’s collaborative agreements. From time to time, collaborative research and development expense includes costs related to research efforts in excess of those required under certain collaborative agreements. Management has the discretion to set the scope of such excess efforts and may increase or decrease the level of such efforts depending on the Company’s strategic priorities. | ||||||||||||||||
Proprietary research and development expense consists of intellectual property in-licensing costs, labor, materials, contracted services, and allocated facility costs that are incurred in connection with internally funded drug discovery and development programs. | ||||||||||||||||
Income Taxes | ||||||||||||||||
Income taxes are accounted for under the liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the tax basis of assets or liabilities and their carrying amounts in the consolidated financial statements. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefit or if future deductibility is uncertain. As of September 30, 2014, the Company had provided a full valuation allowance against its deferred tax assets as recoverability was uncertain. Developing the provision for income taxes requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets. The Company's judgments and tax strategies are subject to audit by various taxing authorities. While management believes the Company has provided adequately for its income tax liabilities in its consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the Company's consolidated financial condition and results of operations. | ||||||||||||||||
The Company's ending deferred tax liability represents a future tax obligation for current tax amortization claimed on acquired IPR&D. As the Company cannot estimate when the IPR&D assets will be amortizable for financial reporting purposes, the deferred tax liability associated with the IPR&D assets cannot be used to support the realization of the Company's deferred tax assets. As a result, the Company is required to increase its valuation allowance and record a charge to deferred taxes. | ||||||||||||||||
Discontinued Operations-Oncology Product Line | ||||||||||||||||
In September 2006, the Company and Eisai Inc. and Eisai Co., Ltd. (collectively "Eisai"), entered into a purchase agreement (the "Oncology Purchase Agreement"), pursuant to which Eisai agreed to acquire all of the Company's worldwide rights in and to its oncology products, including, among other things, all related inventory, equipment, records and intellectual property, and to assume certain liabilities as set forth in the Oncology Purchase Agreement. The Oncology product line included the Company's four marketed oncology drugs: Ontak, Targretin capsules, Targretin gel and Panretin gel. | ||||||||||||||||
Discontinued Operations-Avinza Product Line | ||||||||||||||||
In September 2006, the Company and King Pharmaceuticals, now a subsidiary of Pfizer, entered into a purchase agreement (the "Avinza Purchase Agreement"), pursuant to which Pfizer acquired all of the rights in and to Avinza in the United States, its territories and Canada, including, among other things, all Avinza inventory, records and related intellectual property, and to assume certain liabilities as set forth in the Avinza Purchase Agreement. | ||||||||||||||||
Pursuant to the terms of the Avinza Purchase Agreement, the Company retained the liability for returns of product from wholesalers that had been sold by the Company prior to the close of the transaction. Accordingly, as part of the accounting for the gain on the sale of Avinza, the Company recorded a reserve for Avinza product returns. | ||||||||||||||||
During the three and nine months ended September 30, 2014 and the three months ended September 30, 2013 the Company did not recognize any gain or loss on the sale of the Avinza product line. The Company recognized a pre-tax gain of$2.6 million for the nine months ended September 30, 2013, due to subsequent changes in certain estimates and liabilities recorded as of the sale date. | ||||||||||||||||
Segment Reporting | ||||||||||||||||
Under ASC 280, Segment Reporting ("ASC 280"), operating segments are defined as components of an enterprise about which separate financial information is available that is regularly evaluated by the entity’s chief operating decision maker, in deciding how to allocate resources and in assessing performance. The Company has evaluated this codification and has identified two reportable segments: the development and commercialization of drugs using Captisol technology by CyDex and the biopharmaceutical company with a business model that is based upon the concept of developing or acquiring royalty revenue generating assets and coupling them with a lean corporate cost structure. | ||||||||||||||||
Comprehensive Income | ||||||||||||||||
Comprehensive income represents net income adjusted for the change during the periods presented in unrealized gains and losses on available-for-sale securities less reclassification adjustments for realized gains or losses included in net income. The unrealized gains or losses are reported on the consolidated statements of comprehensive income. | ||||||||||||||||
Consolidation of Variable Interest Entities | ||||||||||||||||
The Company identifies an entity as a VIE if either: (1) the entity does not have sufficient equity investment at risk to permit the entity to finance its activities without additional subordinated financial support, or (2) the entity's equity investors lack the essential characteristics of a controlling financial interest. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in any VIE and therefore is the primary beneficiary. If the Company is the primary beneficiary of a VIE, it must consolidate the VIE under applicable accounting guidance. The Company determined it holds a variable interest in Viking based on management's assessment that it does not have sufficient resources to carry out its principal activities without the support of the Company. The Company's variable interests in Viking are a loan provided by the Company to Viking and a license agreement executed concurrently. As of September 30, 2014, the Company's total assets include $2.9 million related to Viking and the Company's total liabilities include $4.5 million related to Viking. Viking's consolidated assets are owned by Viking, and Viking's consolidated liabilities are without recourse against Ligand. | ||||||||||||||||
New Accounting Pronouncements | ||||||||||||||||
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income ("AOCI") by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. Implementing ASU 2013-02 did not change the current requirements for reporting net income or other comprehensive income in the financial statements. The amendments in this ASU are effective for the Company for fiscal years, and interim periods within those years, beginning after January 1, 2014. The Company's adoption of this standard did not materially affect the consolidated financial statements. | ||||||||||||||||
In July 2013, FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires the netting of unrecognized tax benefits ("UTBs") against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. UTBs are required to be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. ASU 2013-11 is effective for the Company for interim and annual periods beginning after December 15, 2013. The Company's adoption of this standard did not materially affect the consolidated financial statements. | ||||||||||||||||
In April 2014, FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and modifies the related disclosure requirements. Under the new guidance, only disposals resulting in a strategic shift that will have a major effect on an entity's operations and financial results will be reported as discontinued operations. ASU 2014-08 also removes the requirement that an entity not have any significant continuing involvement in the operations of the component after disposal to qualify for reporting of the disposal as a discontinued operation. The guidance is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted for any disposal transaction not previously reported. Management does not believe the adoption of this guidance will have a material impact on the Company's consolidated financial statements. | ||||||||||||||||
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, (5) recognize revenue when (or as) the entity satisfies a performance obligation. Management is currently evaluating the effect the adoption of this standard will have on the Company's financial statements. | ||||||||||||||||
In June 2014, FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments in this update require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation - Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in this update will be effective for the Company as of January 1, 2016. Earlier adoption is permitted. Entities may apply the amendments in this update either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If a retrospective transition is adopted, the cumulative effect of applying this update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. In addition, if a retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. Management is currently assessing the impact of this update, and believes that its adoption on January 1, 2016 will not have a material impact on the Company's consolidated financial statements. | ||||||||||||||||
In August 2014, FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern. The amendments in this update require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period, including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for the Company as of January 1, 2017. Early application is permitted. Management is currently assessing the impact of this update on its future discussion of its liquidity position in the Management’s Discussion and Analysis. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including equity securities, co-promote termination payments receivable and the related liability, contingent liabilities, and the Company's convertible senior notes. | ||||||||||||||||
Level 1 | ||||||||||||||||
The fair value of the Company’s investments which are classified as short-term investments is determined using quoted market prices in active markets. These securities were received by the Company in December 2012 and June 2014 as a result of an event-based payment and an upfront license payment, respectively, under licensees. Additionally, the liability for CVRs for Metabasis are determined using quoted market prices in active markets. | ||||||||||||||||
Level 2 | ||||||||||||||||
The fair value of the Company's convertible senior notes is estimated by using the quoted market rate in an inactive market, which is classified as a Level 2 input. | ||||||||||||||||
Level 3 | ||||||||||||||||
The co-promote termination payments receivable represents a non-interest bearing receivable for future payments to be made by Pfizer and is recorded at its fair value. The fair value is subjective and is affected by changes in inputs to the valuation model including management’s assumptions regarding future Avinza product sales. The receivable and liability will remain equal, and are adjusted each reporting period for changes in the fair value of the obligation including any changes in the estimate of future net Avinza product sales. The fair value of the liabilities for CyDex contingent liabilities were determined based on the income approach using a Monte Carlo analysis. The fair value is subjective and is affected by changes in inputs to the valuation model including management’s assumptions regarding revenue volatility, probability of commercialization of products, estimates of timing and probability of achievement of certain revenue thresholds and developmental and regulatory milestones which may be achieved and affect amounts owed to former license holders and CVR holders. Changes in these assumptions can materially affect the fair value estimate. | ||||||||||||||||
The following table provides a summary of the carrying value of assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2014 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Current co-promote termination payments receivable | $ | 523 | $ | — | $ | — | $ | 523 | ||||||||
Available-for-sale securities | 5,925 | 5,925 | — | — | ||||||||||||
Total assets | $ | 6,448 | $ | 5,925 | $ | — | $ | 523 | ||||||||
Liabilities: | ||||||||||||||||
Current contingent liabilities-CyDex | $ | 4,184 | $ | — | $ | — | $ | 4,184 | ||||||||
Current co-promote termination liability | 523 | — | — | 523 | ||||||||||||
Long-term contingent liabilities-Metabasis | 3,511 | 3,511 | — | — | ||||||||||||
Long-term contingent liabilities-CyDex | 8,755 | — | — | 8,755 | ||||||||||||
Liability for short-term investments owed to former licensees | 917 | 917 | — | — | ||||||||||||
Total liabilities | $ | 17,890 | $ | 4,428 | $ | — | $ | 13,462 | ||||||||
The following table provides a summary of the assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2013 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Current portion of co-promote termination payments receivable | $ | 4,329 | $ | — | $ | — | $ | 4,329 | ||||||||
Available-for-sale securities | 4,340 | 4,340 | — | — | ||||||||||||
Long-term portion of co-promote termination payments receivable | 7,417 | — | — | 7,417 | ||||||||||||
Total assets | $ | 16,086 | $ | 4,340 | $ | — | $ | 11,746 | ||||||||
Liabilities: | ||||||||||||||||
Current portion of contingent liabilities-CyDex | $ | 1,712 | $ | — | $ | — | $ | 1,712 | ||||||||
Current portion of co-promote termination liability | 4,329 | — | — | 4,329 | ||||||||||||
Long-term portion of contingent liabilities-Metabasis | 4,196 | 4,196 | — | — | ||||||||||||
Long-term portion of contingent liabilities-CyDex | 7,599 | — | — | 7,599 | ||||||||||||
Liability for short-term investments owed to licensors | 651 | 651 | — | — | ||||||||||||
Long-term portion of co-promote termination liability | 7,417 | — | — | 7,417 | ||||||||||||
Total liabilities | $ | 25,904 | $ | 4,847 | $ | — | $ | 21,057 | ||||||||
Other Fair Value Measurements-2019 Convertible Senior Notes | ||||||||||||||||
In August 2014, the Company issued $245.0 million aggregate principal amount of convertible senior unsecured notes due 2019 (the "2019 Convertible Senior Notes"). The Company uses a quoted market rate in an inactive market, which is classified as a Level 2 input, to estimate the current fair value of its 2019 Convertible Senior Notes. The estimated fair value of the 2019 Senior Convertible Notes was $229.8 million as of September 30, 2014. The carrying value of the notes does not reflect the market rate. See Note 7 Financing Arrangements for additional information. | ||||||||||||||||
The following table represents significant unobservable inputs used in determining the fair value of contingent liabilities assumed in the acquisition of CyDex: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Range of annual revenue subject to revenue sharing (1) | $17.9 million-$20.5 million | $4.2 million-$19.8 million | ||||||||||||||
Revenue volatility | 25% | 25% | ||||||||||||||
Average of probability of commercialization | 83.80% | 67.60% | ||||||||||||||
Sales beta | 0.6 | 0.6 | ||||||||||||||
Credit rating | B | BBB | ||||||||||||||
Equity risk premium | 6% | 6% | ||||||||||||||
-1 | Revenue subject to revenue sharing represent management’s estimate of the range of total annual revenue subject to revenue sharing (i.e. annual revenues in excess of $15 million) through December 31, 2016, which is the term of the CVR agreement. | |||||||||||||||
A reconciliation of the level 3 financial instruments as of September 30, 2014 is as follows (in thousands): | ||||||||||||||||
Assets: | ||||||||||||||||
Fair value of level 3 financial instrument assets as of December 31, 2013 | $ | 11,746 | ||||||||||||||
Assumed payments made by Pfizer or assignee | (1,002 | ) | ||||||||||||||
Fair value adjustments to co-promote termination liability | (10,221 | ) | ||||||||||||||
Fair value of level 3 financial instrument assets as of September 30, 2014 | $ | 523 | ||||||||||||||
Liabilities: | ||||||||||||||||
Fair value of level 3 financial instrument liabilities as of December 31, 2013 | $ | 21,057 | ||||||||||||||
Assumed payments made by Pfizer or assignee | (1,002 | ) | ||||||||||||||
Payments to CVR and other former license holders | (1,936 | ) | ||||||||||||||
Fair value adjustments to contingent liabilities | 5,564 | |||||||||||||||
Fair value adjustments to co-promote termination liability | (10,221 | ) | ||||||||||||||
Fair value of level 3 financial instrument liabilities as of September 30, 2014 | $ | 13,462 | ||||||||||||||
Variable_Interest_Entities_Not
Variable Interest Entities (Notes) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||
Variable Interest Entities | ' | |||
Variable Interest Entities | ||||
The Company determined it holds a variable interest in Viking based on management's assessment that Viking does not have sufficient resources to carry out its principal activities without the support of the Company. The Company's variable interests in Viking are a loan provided by the Company to Viking and a license agreement executed concurrently. Additionally, the Company has a shared services and sublease agreement with Viking. The Company examines specific criteria and uses judgment when determining if the Company is the primary beneficiary of a VIE and therefore required to consolidate the investment. Factors considered in determining whether the Company is the primary beneficiary include risk and reward sharing, experience and financial condition of its partner, voting rights, involvement in day-to-day operating decisions, representation on Viking's executive committee, and level of economics between the Company and Viking. | ||||
In May 2014, the Company entered into a Master License Agreement to license rights to five programs to Viking, an unrelated clinical-stage biopharmaceutical company focused on the development of novel therapies for metabolic and endocrine disorders. As part of this transaction, the Company extended a $2.5 million convertible loan facility to Viking that can be used to pay Viking’s operating and financing-related expenses. Under the terms of the convertible loan facility, the principal amount outstanding accrues interest at a fixed rate equal to the lesser of 5% and the maximum interest rate permitted by law. The loan is due and payable in May 2016, unless the loans are converted into equity prior to such time. Upon the earlier to occur of an Initial Public Offering ("IPO") or a qualified financing event, the Company may elect to be repaid in cash or equity equal to 200% of the accrued principal and interest. The Company funded $2.0 million towards the convertible loan facility as of September 30, 2014. | ||||
The debt conversion feature embedded in the loan is accounted for under ASC Topic 815 Derivatives and Hedging. The valuation of the bifurcated debt conversion feature was performed using Level 3 inputs, requiring Viking to make assumptions about the probability of the occurrence of an IPO or qualified financing and the loan being converted based on the applicable conversion terms. | ||||
As partial consideration for the grant of the rights and licenses under the license agreement, in the event Viking consummates an IPO or other qualified financing event, Viking will issue to the Company a certain amount of equity. At the closing of an IPO a number of shares of common stock having an aggregate value of $29.0 million will be issued to the Company, subject to adjustment in certain circumstances. In the event Viking consummates a private financing prior to an IPO, the Company has the option to receive a number of shares of the same class and type of securities issued in the private financing having an aggregate value of $29.0 million, subject to adjustment in certain circumstances. The Company has the right to terminate the license agreement on or after April 30, 2015 if Viking has neither completed an IPO nor received aggregate net proceeds of at least $20.0 million in one or more private financings. The Company also has the right to terminate the license agreement in the event of insolvency or bankruptcy of Viking. On July 1, 2014, Viking filed an initial Form S-1 with the Securities and Exchange Commission for an IPO. As of the date of this report, the filed Form S-1 has not been declared effective. As of September 30, 2014, no amounts have been recorded for the potential receipt of equity related to a financing transaction in accordance with authoritative guidance. | ||||
The following table represents the consolidated assets and liabilities, which are owned by and are obligations of Viking and are with no recourse to the Company, as of September 30, 2014 (in thousands): | ||||
30-Sep-14 | ||||
Cash and cash equivalents | $ | 794 | ||
Other current assets | 17 | |||
Capitalized IPO expenses | 2,131 | |||
Total current assets | $ | 2,942 | ||
Other assets | 1 | |||
Total assets | $ | 2,943 | ||
Accounts payable | $ | 2,225 | ||
Accrued liabilities | 77 | |||
Current portion of notes payable | 337 | |||
Total current liabilities | $ | 2,639 | ||
Long-term portion of notes payable | 1,893 | |||
Total liabilities | $ | 4,532 | ||
The Company has recorded 100% of the losses incurred since May 21, 2014, the effective date of the transaction, as net loss attributable to noncontrolling interest due to the fact that it is considered a primary beneficiary with no equity interest in the VIE. The advances under the loan agreement are included as notes payable by Viking and are eliminated in consolidation. |
Avinza_CoPromotion
Avinza Co-Promotion | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Co Promotion [Abstract] | ' | |||
AVINZA Co-Promotion | ' | |||
Avinza Co-Promotion | ||||
In 2003, the Company and Organon Pharmaceuticals USA Inc. ("Organon") entered into an agreement for the co-promotion of Avinza. Subsequently in 2006, the Company signed an agreement with Organon that terminated the Avinza co-promotion agreement between the two companies and returned Avinza co-promotion rights to the Company. In consideration of the early termination, the Company agreed to make quarterly royalty payments to Organon equal to 6.5% of Avinza net sales through December 31, 2012 and thereafter equal to 6.0% of Avinza net sales through patent expiration, currently anticipated to be November 2017. | ||||
In January 2006, the Company and King Pharmaceuticals, now a subsidiary of Pfizer, entered into an agreement pursuant to which Pfizer acquired all of the Company’s rights in and to Avinza. Pfizer also assumed the Company’s co-promote termination obligation to make royalty payments to Organon based on net sales of Avinza. In connection with Pfizer's assumption of this obligation, Organon did not consent to the legal assignment of the co-promote termination obligation to Pfizer. Accordingly, the Company remains liable to Organon in the event of Pfizer's default of the obligation. Therefore, the Company recorded an asset as of February 26, 2007 to recognize Pfizer's assumption of the obligation, while continuing to carry the co-promote termination liability in the Company's consolidated financial statements to recognize the Company’s legal obligation as primary obligor to Organon. This asset represents a non-interest bearing receivable for future payments to be made by Pfizer and is recorded at its fair value. The receivable and liability will remain equal, and are adjusted each reporting period for changes in the fair value of the obligation including for any changes in the estimate of future net Avinza product sales. This receivable will be assessed on a quarterly basis or when a triggering event occurs for impairment (e.g. in the event Pfizer defaults on the assumed obligation to pay Organon). | ||||
On a quarterly basis, management reviews the carrying value of the co-promote termination liability. In February 2014, Actavis launched a generic form of Avinza which resulted in a significant decrease in estimates of future net sales used to value the co-promote termination asset and liability. Due to assumptions and judgments inherent in determining the estimates of future net Avinza sales through November 2017, the actual amount of net Avinza sales used to determine the current fair value of the Company’s co-promote termination asset and liability may be materially different from current estimates. | ||||
A summary of the co-promote termination liability as of September 30, 2014 is as follows (in thousands): | ||||
Net present value of payments based on estimated future net Avinza product sales as of December 31, 2013 | $ | 11,746 | ||
Assumed payments made by Pfizer or assignee | (1,002 | ) | ||
Fair value adjustments | (10,221 | ) | ||
Total co-promote termination liability as of September 30, 2014 | $ | 523 | ||
Lease_Obligations
Lease Obligations | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Leases [Abstract] | ' | ||||||||||||||||||||||
Lease Obligations | ' | ||||||||||||||||||||||
Lease Obligations | |||||||||||||||||||||||
The Company leases office and laboratory facilities in California, Kansas and New Jersey. These leases expire between 2014 and 2019, some of which are subject to annual rent increases which range from 3.0% to 3.5%. The Company currently subleases office and laboratory space in California and New Jersey. The following table provides a summary of operating lease obligations and payments expected to be received from sublease agreements as of September 30, 2014 (in thousands): | |||||||||||||||||||||||
Operating lease obligations: | Lease | Less than 1 | 1-3 years | 3-5 years | More than | Total | |||||||||||||||||
Termination | year | 5 years | |||||||||||||||||||||
Date | |||||||||||||||||||||||
Corporate headquarters- | Jul-19 | $ | 677 | $ | 1,409 | $ | 1,293 | $ | — | $ | 3,379 | ||||||||||||
San Diego, CA | |||||||||||||||||||||||
Bioscience and Technology Business Center- | Dec-17 | 55 | 108 | 13 | — | 176 | |||||||||||||||||
Lawrence, KS | |||||||||||||||||||||||
Vacated office and research facility-San Diego, CA | Jul-15 | 1,912 | — | — | — | 1,912 | |||||||||||||||||
Vacated office and research facility- | Aug-16 | 2,576 | 2,397 | — | — | 4,973 | |||||||||||||||||
Cranbury, NJ | |||||||||||||||||||||||
Total operating lease obligations | $ | 5,220 | $ | 3,914 | $ | 1,306 | $ | — | $ | 10,440 | |||||||||||||
Sublease payments expected to be received: | Less than 1 | 1-3 years | 3-5 years | More than | Total | ||||||||||||||||||
year | 5 years | ||||||||||||||||||||||
Office and research facility- | Jul-15 | $ | 771 | $ | — | $ | — | $ | — | $ | 771 | ||||||||||||
San Diego, CA | |||||||||||||||||||||||
Office and research facility- | August 2014 and 2016 | 492 | 464 | — | — | 956 | |||||||||||||||||
Cranbury, NJ | |||||||||||||||||||||||
Net operating lease obligations | $ | 3,957 | $ | 3,450 | $ | 1,306 | $ | — | $ | 8,713 | |||||||||||||
In 2010, the Company ceased use of its facility located in New Jersey. As a result, the Company recorded lease exit costs of $9.7 million for costs related to the difference between the remaining lease obligations of the abandoned operating leases, which run through August 2016, and management's estimate of potential future sublease income, discounted to present value. In addition, the Company wrote-off property and equipment with a net book value of approximately $5.4 million related to the facility closure. | |||||||||||||||||||||||
As of September 30, 2014 and December 31, 2013, the Company had lease exit obligations of $3.7 million and $5.9 million, respectively. For the three and nine months ended September 30, 2014, the Company made cash payments, net of sublease payments received of $0.8 million and $2.6 million, respectively. The Company recognized adjustments for accretion and changes in leasing assumptions of $0.2 million and $0.5 million for the three and nine months ended September 30, 2014, respectively. For the three and nine months ended September 30, 2013, the Company made cash payments, net of sublease payments received of $0.9 million and $2.8 million, respectively. The Company recognized adjustments for accretion and changes in leasing assumptions of $0.2 million and $0.4 million for the three and nine months ended September 30, 2013, respectively. | |||||||||||||||||||||||
Total rent expense under all office leases for each of the three and nine months ended September 30, 2014 and 2013 was $0.2 million and $0.5 million, respectively. The Company recognizes rent expense on a straight-line basis. Deferred rent at September 30, 2014 and December 31, 2013 was $0.3 million and $0.4 million, respectively, and is included in other long-term liabilities. |
Segment_Reporting
Segment Reporting | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Reporting | ' | |||||||||||
Segment Reporting | ||||||||||||
The Company evaluates performance based on the operating income (loss) of the respective business segments. The segment results may not represent actual results that would be expected if they were independent, stand-alone businesses. Segment information is as follows (in thousands): | ||||||||||||
Balance Sheet Data: | As of September 30, 2014 | |||||||||||
Ligand | CyDex | Total | ||||||||||
Total assets | $ | 203,296 | $ | 68,987 | $ | 272,283 | ||||||
As of December 31, 2013 | ||||||||||||
Ligand | CyDex | Total | ||||||||||
Total assets | $ | 38,408 | $ | 66,305 | $ | 104,713 | ||||||
Operating Data: | For the three months ended September 30, 2014 | |||||||||||
Ligand | CyDex | Total | ||||||||||
Net revenues from external customers | $ | 6,424 | $ | 8,549 | $ | 14,973 | ||||||
Depreciation and amortization expense | (61 | ) | (601 | ) | (662 | ) | ||||||
Operating (loss) income | (1,683 | ) | 5,215 | 3,532 | ||||||||
Interest expense, net | (1,516 | ) | — | (1,516 | ) | |||||||
Income tax expense from continuing operations | (115 | ) | (9 | ) | (124 | ) | ||||||
For the three months ended September 30, 2013 | ||||||||||||
Ligand | CyDex | Total | ||||||||||
Net revenues from external customers | 4,731 | 8,274 | $ | 13,005 | ||||||||
Depreciation and amortization expense | (62 | ) | (606 | ) | $ | (668 | ) | |||||
Operating (loss) income | (1,142 | ) | 4,212 | $ | 3,070 | |||||||
Interest expense, net | (394 | ) | — | $ | (394 | ) | ||||||
Income tax (expense) benefit from continuing operations | (70 | ) | 10 | $ | (60 | ) | ||||||
Gain on sale of Avinza Product Line before income taxes | — | — | $ | — | ||||||||
For the nine months ended September 30, 2014 | ||||||||||||
Ligand | CyDex | Total | ||||||||||
Net revenues from external customers | 18,907 | 22,632 | $ | 41,539 | ||||||||
Depreciation and amortization expense | (194 | ) | (1,804 | ) | (1,998 | ) | ||||||
Operating (loss) income | (2,622 | ) | 12,611 | 9,989 | ||||||||
Interest expense, net | (1,946 | ) | — | (1,946 | ) | |||||||
Income tax expense from continuing operations | (123 | ) | (8 | ) | (131 | ) | ||||||
For the nine months ended September 30, 2013 | ||||||||||||
Ligand | CyDex | Total | ||||||||||
Net revenues from external customers | $ | 14,789 | $ | 19,448 | $ | 34,237 | ||||||
Depreciation and amortization expense | (179 | ) | (1,828 | ) | (2,007 | ) | ||||||
Write-off of in-process research and development | — | 480 | 480 | |||||||||
Operating income | (944 | ) | 9,462 | 8,518 | ||||||||
Interest expense, net | (1,755 | ) | — | (1,755 | ) | |||||||
Income tax (expense) benefit from continuing operations | (301 | ) | 64 | (237 | ) | |||||||
Gain on sale of Avinza Product Line before income taxes | 2,588 | — | 2,588 | |||||||||
Financing_Arrangements
Financing Arrangements | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Financing Arrangements | ' | |||||||
Financing Arrangements | ||||||||
Term loan facility | ||||||||
The Company fully repaid its secured term loan credit facility on July 31, 2014. Under the terms of the secured debt, the Company made interest-only payments through February 2013. Subsequent to the interest-only payments, the note amortized with principal and interest payments through the remaining term of the loan. Additionally, the Company made an additional final payment equal to 6% of the total amount borrowed which was due at maturity and was accreted over the life of the loan. | ||||||||
0.75% Convertible Senior Notes Due 2019 | ||||||||
In August 2014, the Company issued $245.0 million aggregate principal amount of its 2019 Convertible Senior Notes, resulting in net proceeds of $239.3 million. The 2019 Convertible Senior Notes are convertible into common stock at an initial conversion rate of 13.3251 shares per $1,000 principal amount of convertible notes, subject to adjustment upon certain events, which is equivalent to an initial conversion price of approximately $75.05 per share of common stock. The initial conversion price of the notes represents a premium of approximately 35% to the $55.59 per share close price of the Company's common stock on August 12, 2014. The notes bear interest at a rate of 0.75% per year, payable semi-annually. Holders of the 2019 Convertible Senior Notes may convert the notes at any time prior to the close of business on the business day immediately preceding May 15, 2019, under any of the following circumstances: (1) during any fiscal quarter (and only during such fiscal quarter) commencing after December 31, 2014, if, for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding fiscal quarter, the last reported sale price of the Company's common stock on such trading day is greater than 130% of the conversion price on such trading day; (2) during the five business day period immediately following any ten consecutive trading day period, in which the trading price per $1,000 principal amount of notes was less than 98% of the product of the last reported sale price of the Company's common stock on such trading day and the conversion rate on each such trading day; or (3) upon the occurrence of certain specified corporate events as specified in the indenture governing the notes. On or after May 15, 2019 until the close of business on the second scheduled trading day immediately preceding August 15, 2019, holders of the notes may convert all or a portion of their notes at any time, regardless of the foregoing circumstances. Upon conversion, Ligand must deliver cash to settle the principal and may deliver cash or shares of common stock, at the option of the Company, to settle any premium due upon conversion. | ||||||||
In accordance with accounting guidance for debt related to conversion and other options, the Company separately accounted for the debt and equity components of the 2019 Convertible Senior Notes by allocating the $245.0 million total proceeds between the debt component and the embedded conversion option, or equity component, due to Ligand's ability to settle the 2019 Convertible Senior Notes in cash for the principal portion and to settle any premium in cash or common stock, at the Company's election. The debt allocation was performed in a manner that reflected the Company's non-convertible borrowing rate for similar debt of 5.83% derived from independent valuation analysis. The initial debt value of $192.5 million accretes at 5.83% to reach $245.0 million at the maturity date. The equity component of the 2019 Convertible Senior Notes was recognized as a debt discount and represents the difference between the $245.0 million proceeds at issuance of the 2019 Convertible Senior Notes and the fair value of the debt allocation on their respective issuance dates. The debt discount is amortized to interest expense using the effective interest method over the expected life of a similar liability without an equity component. The notes will have a dilutive effect to the extent the average market price per share of common stock for a given reporting period exceeds the conversion price of $75.05. As of September 30, 2014, the “if-converted value” did not exceed the principal amount of the 2019 Convertible Senior Notes. | ||||||||
In connection with the issuance of the 2019 Convertible Senior Notes, the Company incurred $5.7 million of issuance costs, which primarily consisted of underwriting, legal and other professional fees. The portions of these costs allocated to the equity components totaling $1.2 million were recorded as a reduction to additional paid-in capital. The portions of these costs allocated to the liability components totaling $4.5 million were recorded as assets on the balance sheet. The portions allocated to the liability components are amortized to interest expense using the effective interest method over the expected life of the 2019 Convertible Senior Notes. | ||||||||
The Company determined the expected life of the debt discount for the 2019 Convertible Senior Notes to be equal to the original five-year term of the notes. The carrying value of the equity component related to the 2019 Convertible Senior Notes as of September 30, 2014, net of issuance costs, was $51.3 million. | ||||||||
Convertible Bond Hedge and Warrant Transactions | ||||||||
In August 2014, in connection with the issuance of the 2019 Convertible Senior Notes, to minimize the impact of potential dilution to the Company's common stock upon conversion of such notes, the Company entered into convertible bond hedges and sold warrants covering approximately 3,264,643 shares of its common stock. The convertible bond hedges have an exercise price of $75.05 per share and are exercisable when and if the 2019 Convertible Senior Notes are converted. If upon conversion of the 2019 Convertible Senior Notes, the price of the Company's common stock is above the exercise price of the convertible bond hedges, the counterparties will deliver shares of common stock and/or cash with an aggregate value approximately equal to the difference between the price of common stock at the conversion date and the exercise price, multiplied by the number of shares of common stock related to the convertible bond hedge transaction being exercised. The convertible bond hedges and warrants described below are separate transactions entered into by the Company and are not part of the terms of the 2019 Convertible Senior Notes. Holders of the 2019 Convertible Senior Notes and warrants will not have any rights with respect to the convertible bond hedges. The Company paid $48.1 million for these convertible bond hedges and recorded the amount as a reduction to additional paid-in capital. | ||||||||
Concurrently with the convertible bond hedge transactions, the Company entered into warrant transactions whereby it sold warrants to acquire, approximately 3,264,643 shares of common stock with an exercise price of approximately $125.08 per share, subject to certain adjustments. The warrants have various expiration dates ranging from November 13, 2019 to April 22, 2020. The warrants will have a dilutive effect to the extent the market price per share of common stock exceeds the applicable exercise price of the warrants, as measured under the terms of the warrant transactions. The Company received $11.6 million for these warrants and recorded this amount to additional paid-in capital. The common stock issuable upon exercise of the warrants will be in unregistered shares, and the Company does not have the obligation and does not intend to file any registration statement with the Securities and Exchange Commission registering the issuance of the shares under the warrants. | ||||||||
The carrying values and the fixed contractual coupon rates of the Company's financing arrangements as of September 30, 2014 and December 31, 2013 were as follows (in thousands): | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
2019 Convertible Senior Notes | ||||||||
Principal amount outstanding | $ | 245,000 | $ | — | ||||
Unamortized discount | (51,369 | ) | — | |||||
Net carrying amount | 193,631 | — | ||||||
Convertible notes payable, Viking Therapeutics, Inc. | 337 | — | ||||||
Current portion notes payable, 8.64%, due August 1, 2014 | — | 6,642 | ||||||
Current portion notes payable, 8.9012%, due August 1, 2014 | — | 2,467 | ||||||
Total notes payable | $ | 193,968 | $ | 9,109 | ||||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stockholders' Equity | ' | ||||||||||||
Stockholders’ Equity | |||||||||||||
The Company grants options and awards to employees, non-employee consultants, and non-employee directors. Only new shares of common stock are issued upon the exercise of stock options. Non-employee directors are accounted for as employees. Options and restricted stock granted to certain directors vest in equal monthly installments over the one-year period following the date of grant. Options granted to employees vest 1/8 on the six month anniversary of the date of grant, and 1/48 each month thereafter for 42 months. Option awards generally expire ten years from the date of grant. | |||||||||||||
Stock Option Activity | |||||||||||||
The following is a summary of the Company’s stock option plan activity and related information: | |||||||||||||
Shares | Weighted- | Weighted-Average | Aggregate | ||||||||||
Average | Remaining | Intrinsic Value | |||||||||||
Exercise | Contractual Term in | (In thousands) | |||||||||||
Price | Years | ||||||||||||
Balance as of December 31, 2013 | 1,746,709 | $ | 16.79 | 7.6 | $ | 62,705 | |||||||
Granted | 366,184 | 73.81 | |||||||||||
Exercised | (262,820 | ) | 15.43 | ||||||||||
Forfeited | (49,967 | ) | 16.69 | ||||||||||
Cancelled | (4,414 | ) | 80.81 | ||||||||||
Balance as of September 30, 2014 | 1,795,692 | 28.46 | 7.5 | $ | 43,200 | ||||||||
Exercisable as of September 30, 2014 | 1,052,706 | 20 | 7.5 | $ | 30,339 | ||||||||
Options vested and expected to vest as of September 30, 2014 | 1,795,692 | 28.46 | 6.8 | $ | 43,200 | ||||||||
The weighted-average grant date fair value of all stock options granted during the nine months ended September 30, 2014 was $47.44 per share. The total intrinsic value of all options exercised during the nine months ended September 30, 2014 and 2013 was approximately $14.7 million and $3.6 million, respectively. As of September 30, 2014, there was $14.6 million of total unrecognized compensation cost related to nonvested stock options. That cost is expected to be recognized over a weighted-average period of 2.3 years. | |||||||||||||
Net cash received from options exercised during the nine months ended September 30, 2014 and 2013 was approximately $4.1 million and $2.3 million, respectively. There is no current tax benefit related to options exercised because of net operating losses for which a full valuation allowance has been established. | |||||||||||||
As of September 30, 2014, 1.1 million shares were available for future option grants or direct issuance under the Company's 2002 Stock Incentive Plan, as amended. | |||||||||||||
Restricted Stock Activity | |||||||||||||
Restricted stock activity for the nine months ended September 30, 2014 was as follows: | |||||||||||||
Shares | Weighted- | ||||||||||||
Average Grant | |||||||||||||
Date Fair Value | |||||||||||||
Nonvested at December 31, 2013 | 115,386 | $ | 21.93 | ||||||||||
Granted | 41,671 | 72.5 | |||||||||||
Vested | (74,312 | ) | 25.21 | ||||||||||
Cancelled | (3,972 | ) | 18.42 | ||||||||||
Nonvested at September 30, 2014 | 78,773 | $ | 45.77 | ||||||||||
Restricted stock awards generally vest over three years. As of September 30, 2014, there was $2.3 million of total unrecognized compensation cost related to nonvested restricted stock. That cost is expected to be recognized over a weighted-average period of 1.5 years. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
The Company's Employee Stock Purchase Plan, as amended and restated (the "Amended ESPP") allows participants to purchase up to 1,250 shares of Ligand common stock during each offering period, but in no event may a participant purchase more than 1,250 shares of common stock during any calendar year. The length of each offering period is six months, and employees are eligible to participate in the first offering period beginning after their hire date. | |||||||||||||
The Amended ESPP allows employees to purchase Ligand common stock at the end of each six month period at a price equal to 85% of the lesser of fair market value on either the start date of the period or the last trading day of the period (the "Lookback Provision"). The 15% discount and the Lookback Provision make the Amended ESPP compensatory. There were 2,230 and 5,016 shares of common stock issued under the amended ESPP during the nine months ended September 30, 2014 and 2013, respectively. The Company recorded compensation expense related to the ESPP of $43,515 and $37,000 for the nine months ended September 30, 2014 and 2013, respectively. As of September 30, 2014, 77,285 shares were available for future purchases under the Amended ESPP. | |||||||||||||
Public Offerings | |||||||||||||
During the three and nine months ended September 30, 2014 and 2013, the Company did not issue any common shares pursuant to its at-the-market equity issuance plan. | |||||||||||||
Corporate Share Repurchases | |||||||||||||
In August 2014, the Company's Board of Directors authorized the Company to repurchase up to $200.0 million of its common stock for a period of up to one year. During the three and nine months ended September 30, 2014 the Company repurchased 692,800 common shares pursuant to the repurchase program for an aggregate purchase price of approximately $38.5 million. Subsequent to the end of the quarter through October 30, 2014, the Company repurchased an additional 110,000 common shares for an aggregate purchase price of approximately $5.0 million. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Litigation | ' |
Litigation | |
The Company records an estimate of a loss when the loss is considered probable and estimable. Where a liability is probable and there is a range of estimated loss and no amount in the range is more likely than any other number in the range, the Company records the minimum estimated liability related to the claim in accordance with ASC Topic 450-Contingencies. As additional information becomes available, the Company assesses the potential liability related to its pending litigation and revises its estimates. Revisions in the Company's estimates of potential liability could materially impact its results of operations. | |
Securities Litigation | |
On June 8, 2012, a federal securities class action and shareholder derivative lawsuit was filed in the Eastern District of Pennsylvania against Genaera Corporation and its officers, directors, major shareholders and trustee ("Genaera Defendants") for allegedly breaching their fiduciary duties to Genaera shareholders. The lawsuit also names the Company and its CEO as additional defendants for allegedly aiding and abetting the Genaera Defendants' various breaches of fiduciary duties based on the Company's purchase of a licensing interest in a development-stage pharmaceutical drug program from the Genaera Liquidating Trust in May 2010 and the Company's subsequent sale of half of its interest in the transaction to Biotechnology Value Fund, Inc. | |
Following an amendment to the complaint and a round of motions to dismiss, the court dismissed the amended complaint with prejudice on August 12, 2013. Plaintiff appealed that dismissal on September 10, 2013, and the Third Circuit reversed on October 17, 2014. The Company intends to continue to vigorously defend against the claims against the Company and its CEO. Due to the complex nature of the legal and factual issues involved, however, the outcome of this matter is not presently determinable. | |
Other Litigation | |
On June 19, 2014, a complaint was filed in California Superior Court seeking attorneys’ fees in connection with claims related to executive compensation matters described in the Company’s June 6, 2013 supplemental proxy materials. On August 1, 2014 the Company filed an answer denying all allegations in the complaint and asserting several affirmative defenses. Management believes the fees demanded by plaintiffs’ counsel are excessive and the Company intends to defend itself vigorously in the litigation. Due to the complex nature of the legal and factual issues involved, however, the outcome of this matter is not presently determinable. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The accompanying unaudited condensed consolidated financial statements include Ligand and its wholly owned subsidiaries, Ligand JVR, Allergan Ligand Retinoid Therapeutics, Seragen, Inc., Pharmacopeia, Inc. ("Pharmacopeia"), Neurogen Corporation ("Neurogen"), CyDex Pharmaceuticals, Inc. ("CyDex"), Metabasis Therapeutics, Inc. ("Metabasis") and Nexus VI, Inc. Also included is Viking Therapeutics, Inc. ("Viking"), a variable interest entity ("VIE") for which the Company is deemed under applicable accounting guidance to be the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
Basis of Presentation | ' |
Basis of Presentation | |
The Company’s accompanying unaudited condensed consolidated financial statements as of September 30, 2014 and for the three and nine months ended September 30, 2014 and 2013 have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for annual financial statements. The Company’s unaudited condensed consolidated balance sheet at December 31, 2013 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the financial position and results of operations of the Company and its subsidiaries, have been included. Operating results for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. These financial statements should be read in conjunction with the consolidated financial statements and notes therein included in the Company’s annual report on Form 10-K for the year ended December 31, 2013 | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the use of estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, expenses, contingent assets and liabilities, definite and indefinite lived intangible assets, goodwill, co-promote termination payments receivable and co-promote termination liabilities, uncertain tax positions, deferred revenue, lease exit liability and income tax net operating loss carryforwards during the reporting period. The Company’s critical accounting policies are those that are both most important to the Company’s financial condition and results of operations and require the most difficult, subjective or complex judgments on the part of management in their application, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Because of the uncertainty of factors surrounding the estimates or judgments used in the preparation of the condensed consolidated financial statements, actual results may materially vary from these estimates. | |
Income Per Share | ' |
Income Per Share | |
Basic income per share is calculated by dividing net income by the weighted-average number of common shares and vested restricted stock units outstanding. Diluted income per share is computed by dividing net income by the weighted-average number of common shares and vested restricted stock units outstanding and the weighted-average number of dilutive common stock equivalents, including stock options, non-vested restricted stock units, convertible notes and warrants. Common stock equivalents are only included in the diluted income per share calculation when their effect is dilutive. | |
Cash, Cash Equivalents and Short-term Investments | ' |
Cash, Cash Equivalents and Short-term Investments | |
Cash and cash equivalents consist of cash and highly liquid securities with maturities at the date of acquisition of three months or less. Securities received by the Company as a result of a milestone payment from licensees are considered short-term investments and have been classified by management as available-for-sale. Such investments are carried at fair value, with unrealized gains and losses included in the statement of comprehensive income (loss). The Company determines the cost of investments based on the specific identification method. | |
Restricted Cash and Investments | ' |
Restricted Cash and Investments | |
Restricted cash and investments consist of certificates of deposit held with a financial institution as collateral under a facility lease and third-party service provider arrangements. | |
Concentrations of Credit Risk | ' |
Concentrations of Credit Risk | |
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash equivalents, investments and accounts receivable. | |
The Company invests its excess cash principally in U.S. government debt securities, investment-grade corporate debt securities and certificates of deposit. The Company has established guidelines relative to diversification and maturities that maintain safety and liquidity. These guidelines are periodically reviewed and modified to take advantage of trends in yields and interest rates. The Company did not experience any significant losses on its cash equivalents, short-term investments or restricted investments for the periods ending September 30, 2014 and December 31, 2013. | |
As of September 30, 2014 and December 31, 2013, cash deposits held at financial institutions in excess of FDIC insured amounts of $250,000 were approximately $92.8 million and $11.1 million, respectively. | |
Accounts receivable from one customer was 57% of total accounts receivable at September 30, 2014. Accounts receivable from two customers was 75% of total accounts receivable at December 31, 2013. | |
The Company currently obtains Captisol from a single supplier. If this supplier were not able to supply the requested amounts of Captisol and the Company's existing inventory was depleted, the Company would be unable to continue to derive revenues from the sale of Captisol until it obtained an alternative source, which might take a considerable length of time. The Company maintains inventory of Captisol, which has a five year shelf life, at three geographically spread storage locations in the United States and Europe. If a disaster were to strike any of these locations, it could lead to supply interruptions. | |
Inventory | ' |
Inventory | |
Inventory is stated at the lower of cost or market value. The Company determines cost using the first-in, first-out method. The Company analyzes its inventory levels periodically and writes down inventory to its net realizable value if it has become obsolete, has a cost basis in excess of its expected net realizable value or is in excess of expected requirements. | |
Property and Equipment | ' |
Depreciation of equipment is computed using the straight-line method over the estimated useful lives of the assets, which range from three to ten years. Leasehold improvements are amortized using the straight-line method over their estimated useful lives or their related lease term, whichever is shorter. Depreciation expense recognized for the three months ended September 30, 2014 and 2013 was $0.1 million. Depreciation expense for the nine months ended September 30, 2014 and 2013 was $0.2 million. Depreciation expense is included in operating expenses. | |
Goodwill and Other Identifiable Intangible Assets | ' |
The Company accounts for goodwill and other intangible assets in accordance with Accounting Standards Codification ("ASC") Topic 350 - Intangibles - Goodwill and Other which, among other things, establishes standards for goodwill acquired in a business combination, eliminates the amortization of goodwill and requires the carrying value of goodwill and certain non-amortizing intangibles to be evaluated for impairment on an annual basis. The Company uses the income approach and the market approach, each weighted at 50%, when performing its goodwill impairment analysis. For the income approach, the Company considers the present value of future cash flows and the carrying value of its assets and liabilities, including goodwill. The market approach is based on an analysis of revenue multiples of peer public companies. If the carrying value of the assets and liabilities, including goodwill, were to exceed the Company’s estimation of the fair value, the Company would record an impairment charge in an amount equal to the excess of the carrying value of goodwill over the implied fair value of the goodwill. The Company performs an evaluation of goodwill and other intangibles as of December 31 of each year, absent any indicators of earlier impairment, to ensure that impairment charges, if applicable, are reflected in the Company's financial results before December 31 of each year. When it is determined that impairment has occurred, a charge to operations is recorded. Goodwill and other intangible asset balances are included in the identifiable assets of the business segment to which they have been assigned. Any goodwill impairment, as well as the amortization of other purchased intangible assets, is charged against the respective business segments' operating income. | |
Amortization of definite-lived intangible assets is computed using the straight-line method over the estimated useful life of the asset of 20 years. Amortization expense of $0.6 million and $1.8 million was recognized for each of the three and nine months ended September 30, 2014 and 2013, respectively. Estimated amortization expense for the years ending December 31, 2014 through 2018 is $2.4 million per year. | |
Acquired In-Process Research and Development | ' |
Acquired In-Process Research and Development | |
Intangible assets related to acquired in-process research and development ("IPR&D") are considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. During the period the assets are considered to be indefinite-lived, they will not be amortized but will be tested for impairment on an annual basis and between annual tests if the Company becomes aware of any events occurring or changes in circumstances that would indicate a reduction in the fair value of the IPR&D projects below their respective carrying amounts. If and when development is complete, which generally occurs if and when regulatory approval to market a product is obtained, the associated assets would be deemed definite-lived and would then be amortized based on their respective estimated useful lives at that point in time. For the three and nine months ended September 30, 2014 and the three months ended September 30, 2013 there was no impairment of IPR&D. For the nine months ended September 30, 2013, the Company recorded a non-cash impairment charge of $0.5 million for the write-off of IPR&D for Captisol-enabled Clopidogrel (MDCO-157). The asset was impaired upon notification from the Medicines Company that they intended to terminate the license agreement and return the rights of the compound to the Company. MDCO-157 is an intravenous option of the anti-platelet medication designed for situations where the administration of oral platelet inhibitors is not feasible or desirable. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
Management reviews long-lived assets for impairment annually or whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. Fair value for the Company’s long-lived assets is determined using the expected cash flows discounted at a rate commensurate with the risk involved. As of September 30, 2014, management does not believe there have been any events or circumstances indicating that the carrying amount of its long-lived assets may not be recoverable. | |
Commercial license rights | ' |
Commercial license rights | |
Commercial license rights represent a portfolio of future milestone and royalty payment rights acquired in accordance with the Royalty Stream and Milestone Payments Purchase Agreement entered into with Selexis SA ("Selexis") in April 2013. The portfolio consists of over 15 Selexis commercial license agreement programs with various pharmaceutical-company counterparties. The purchase price was $4.6 million, inclusive of acquisition costs. The Company paid $3.6 million upon closing and paid an additional $1.0 million in April 2014. Individual commercial license rights acquired under the agreement are carried at allocated cost and approximate fair value. The carrying value of the license rights will be reduced on a pro-rata basis as revenue is realized over the term of the agreement. Declines in the fair value of individual license rights below their carrying value that are deemed to be other than temporary are reflected in earnings in the period such determination is made. As of September 30, 2014, management does not believe there have been any events or circumstances indicating that the carrying amount of its commercial license rights may not be recoverable. | |
Contingent Liabilities | ' |
Contingent Liabilities | |
In connection with the Company’s acquisition of CyDex in January 2011, the Company recorded a $17.6 million contingent liability, inclusive of the $4.3 million payment made in January 2012, for amounts potentially due to holders of the CyDex contingent value rights ("CVRs") and former license holders. The liability is periodically assessed based on events and circumstances related to the underlying milestones, royalties and material sales. Any change in fair value is recorded in the Company’s consolidated statements of operations. The carrying amount of the liability may fluctuate significantly and actual amounts paid under the CVR agreements may be materially different than the carrying amount of the liability. The fair value of the liability at September 30, 2014 and December 31, 2013 was $12.9 million and $9.3 million, respectively. The Company recorded a fair-value adjustment to increase the liability for CyDex-related contingent liabilities by $2.8 million and $5.6 million for the three and nine months ended September 30, 2014, respectively, and an adjustment to increase the liability by $1.2 million and to decrease the liability by $2.1 million for the three and nine months ended September 30, 2013, respectively. There was a revenue-sharing payment of $1.6 million made during the nine months ended September 30, 2014, and no revenue sharing payments were made during the three months ended September 30, 2014 and three and nine months ended September 30, 2013. Other contingency payments related to the CyDex acquisition of $0.3 million were made during the three and nine months ended September 30, 2014 and other contingency payments of $0.1 million were made during the three and nine months ended September 30, 2013. | |
In connection with the Company’s acquisition of Metabasis in January 2010, the Company issued to Metabasis stockholders four tradable CVRs, one CVR from each of four respective series of CVR, for each Metabasis share. The CVRs will entitle Metabasis stockholders to cash payments as frequently as every six months as cash is received by the Company from proceeds from the sale or partnering of any of the Metabasis drug development programs, among other triggering events. The fair values of the CVRs are remeasured at each reporting date through the term of the related agreement. Changes in the fair values are reported in the statement of operations as income (decreases) or expense (increases). The carrying amount of the liability may fluctuate significantly based upon quoted market prices and actual amounts paid under the agreements may be materially different than the carrying amount of the liability. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
Fair value is defined as the exit price that would be received to sell an asset or paid to transfer a liability. Fair value is a market-based measurement that should be determined using assumptions that market participants would use in pricing an asset or liability. The Company establishes a three-level hierarchy to prioritize the inputs used in measuring fair value. The levels are described in the below with level 1 having the highest priority and level 3 having the lowest: | |
Level 1 - Quoted prices in active markets; | |
Level 2 - Inputs other than the quoted prices in active markets that are observable either directly or indirectly; and | |
Level 3 - Unobservable inputs in which there is little or no market data, which require the Company to develop its own assumptions. | |
The Company’s short-term investments include investments in equity securities which the Company received as a result of event-based and upfront payments from licensees. Additionally, there is a liability related to the investment in equity securities for amounts owed to former license holders. The Metabasis CVR liability is marked-to-market at each reporting period based upon the quoted market prices of the underlying CVR. The fair value of the CyDex contingent liabilities are determined at each reporting period based upon an income valuation model. The co-promote termination payments receivable represents a non-interest-bearing receivable for future payments to be made by Pfizer related to Avinza product sales and is recorded at its fair value. The receivable and liability will remain equal, and are adjusted each quarter for changes in the fair value of the obligation including any changes in the estimate of future net Avinza product sales. | |
The Company evaluates its financial instruments at each reporting period to determine if any transfers between the various three-level hierarchy have occurred and appropriately reclassifies its financial instruments to the appropriate level within the hierarchy. | |
Revenue Recognition | ' |
Revenue Recognition | |
Royalties on sales of products commercialized by the Company’s partners are recognized in the quarter reported by the respective partner. Generally, the Company receives royalty reports from its licensees approximately one quarter in arrears due to the fact that its agreements require partners to report product sales between 30 and 60 days after the end of the quarter. The Company recognizes royalty revenues when it can reliably estimate such amounts and collectability is reasonably assured. Under this accounting policy, the royalty revenues reported are not based upon estimates and such royalty revenues are typically reported to the Company by its partners in the same period in which payment is received. | |
Revenue from material sales of Captisol is recognized upon transfer of title, which normally passes upon shipment to the customer. The Company’s credit and exchange policy includes provisions for the return of product between 30 to 90 days, depending on the specific terms of the individual agreement, when that product (1) does not meet specifications, (2) is damaged in shipment (in limited circumstances where title does not transfer until delivery), or (3) is exchanged for an alternative grade of Captisol. | |
Revenue from research funding under our collaboration agreements is earned and recognized on a percentage-of completion basis as research hours are incurred in accordance with the provisions of each agreement. | |
Nonrefundable, upfront license fees are recognized as revenue upon delivery of the license, if the license is determined to have standalone value that is not dependent on any future performance by the Company under the applicable collaboration agreement. Nonrefundable contingent event-based payments are recognized as revenue when the contingent event is met, which is usually the earlier of when payments are received or collections are assured, provided that it does not require future performance by the Company. The Company occasionally has sub-license obligations related to arrangements for which it receives license fees, milestones and royalties. The Company evaluates the determination of gross versus net reporting based on each individual agreement. | |
Sales-based contingent payments from partners are accounted for similarly to royalties, with revenue recognized upon achievement of the sales targets assuming all other revenue recognition criteria for milestones are met. Revenue from development and regulatory milestones is recognized when earned, as evidenced by written acknowledgement from the collaborator, provided that (1) the milestone event is substantive, its achievability was not reasonably assured at the inception of the agreement, and the Company has no further performance obligations relating to that event, and (2) collectability is reasonably assured. If these criteria are not met, the milestone payment is recognized over the remaining period of the Company’s performance obligations under the arrangement. | |
The Company analyzes its revenue arrangements and other agreements to determine whether there are multiple elements that should be separated and accounted for individually or as a single unit of accounting. For multiple element contracts, arrangement consideration is allocated at the inception of the arrangement to all deliverables on the basis of relative selling price, using a hierarchy to determine selling price. Management first considers vendor-specific objective evidence ("VSOE"), then third-party evidence ("TPE") and if neither VSOE nor TPE exist, the Company uses its best estimate of selling price. | |
Many of the Company's revenue arrangements involve the bundling of a license with the option to purchase manufactured product. Licenses are granted to pharmaceutical companies for the use of Captisol in the development of pharmaceutical compounds. The licenses may be granted for the use of the Captisol product for all phases of clinical trials and through commercial availability of the host drug or may be limited to certain phases of the clinical trial process. Management believes that the Company's licenses have stand-alone value at the outset of an arrangement because the customer obtains the right to use Captisol in its formulations without any additional input by the Company. | |
Allowance for Doubtful Accounts | ' |
Allowance for Doubtful Accounts | |
The Company maintains an allowance for doubtful accounts based on the best estimate of the amount of probable losses in the Company’s existing accounts receivable. Accounts receivable that are outstanding longer than their contractual payment terms, ranging from 30 to 90 days, are considered past due. When determining the allowance for doubtful accounts, several factors are taken into consideration, including historical write-off experience and review of specific customer accounts for collectability. Account balances are charged off against the allowance after collection efforts have been exhausted and the potential for recovery is considered remote. | |
Accounting for Stock-Based Compensation | ' |
The risk-free interest rate is based on the U.S. Treasury yield curve at the time of the grant. The expected term of the employee and non-employee director options is the estimated weighted-average period until exercise or cancellation of vested options (forfeited unvested options are not considered) based on historical experience. The expected term for consultant awards is the remaining period to contractual expiration. Volatility is a measure of the expected amount of variability in the stock price over the expected life of an option expressed as a standard deviation. In making this assumption, the Company used the historical volatility of the Company’s stock price over a period equal to the expected term. The forfeiture rate is based on historical data at the time of the grant. | |
Accounting for Stock-Based Compensation | |
Stock-based compensation expense for awards to employees and non-employee directors is recognized on a straight-line basis over the vesting period until the last tranche vests. Compensation cost for consultant awards is recognized over each separate tranche’s vesting period. | |
Preclinical Study and Clinical Trial Accruals | ' |
Preclinical Study and Clinical Trial Accruals | |
Substantial portions of the Company’s preclinical studies and all of the Company's clinical trials have been performed by third-party laboratories, contract research organizations, or other vendors (collectively "CROs"). Some CROs bill monthly for services performed, while others bill based upon milestone achievement. The Company accrues for each of the agreements it has with CROs on a monthly basis. For preclinical studies, accruals are estimated based upon the percentage of work completed and the contract milestones achieved. For clinical studies, accruals are estimated based upon a percentage of work completed, the number of patients enrolled and the duration of the study. The Company monitors patient enrollment, the progress of clinical studies and related activities to the extent possible through internal reviews of data reported to it by the CROs, correspondence with the CROs and clinical site visits. The Company's estimates are dependent upon the timelines and accuracy of the data provided by its CROs regarding the status of each program and total program spending. The Company periodically evaluates its estimates to determine if adjustments are necessary or appropriate based on information it receives concerning changing circumstances, and conditions or events that may affect such estimates. No material adjustments to preclinical study and clinical trial accrued expenses have been recognized to date. | |
Sale of Royalty Rights | ' |
Sale of Royalty Rights | |
The Company previously sold to third parties the rights to future royalties of certain of its products. As part of the underlying royalty agreements, the partners have the right to offset a portion of any future royalty payments owed to the Company to the extent of previous milestone payments. Accordingly, the Company deferred a portion of the revenue associated with each tranche of royalty right sold, equal to the pro-rata share of the potential royalty offset. Such amounts associated with the offset rights against future royalty payments will be recognized as revenue upon receipt of future royalties from the respective partners. | |
Product Returns | ' |
Product Returns | |
In connection with the sale of the Avinza and Oncology product lines, the Company retained the obligation for returns of product that were shipped to wholesalers prior to the close of the transactions. The accruals for product returns, which were recorded as part of the accounting for the sales transactions, are based on historical experience. Any subsequent changes to the Company’s estimate of product returns are accounted for as a component of discontinued operations. | |
Milestone Payments | ' |
Milestone Payments | |
In May 2014, the Company entered into a licensing agreement and research collaboration with Omthera Pharmaceuticals. The research collaboration will target the development of novel products that utilize the proprietary Ligand-developed LTP TECHNOLOGY™ to improve lipid-lowering activity of certain omega-3 fatty acids. The Company is eligible to receive development, regulatory and event-based payments. The completion of a proof of concept under the development program would trigger a $1.0 million payment which would represent a milestone under the milestone method of accounting as (1) it is an event that can only be achieved in part on the Company's past performance, (2) there was substantive uncertainty at the date the arrangement was entered into that the event would be achieved and (3) it results in additional payment being due to the Company. None of the other event-based payments represents a milestone under the milestone method of accounting. No event based payment or milestone was achieved during the periods presented. | |
Cost of Goods Sold | ' |
Cost of Goods Sold | |
The Company determines cost using the first-in, first-out method. Cost of goods sold include all costs of purchase and other costs incurred in bringing the inventories to their present location and condition, including costs to store and distribute. | |
Research and Development | ' |
Research and Development | |
Collaborative research and development expense consists of labor, material, equipment and allocated facility costs of the Company’s scientific staff who are working pursuant to the Company’s collaborative agreements. From time to time, collaborative research and development expense includes costs related to research efforts in excess of those required under certain collaborative agreements. Management has the discretion to set the scope of such excess efforts and may increase or decrease the level of such efforts depending on the Company’s strategic priorities. | |
Proprietary research and development expense consists of intellectual property in-licensing costs, labor, materials, contracted services, and allocated facility costs that are incurred in connection with internally funded drug discovery and development programs. | |
Income Taxes | ' |
Income Taxes | |
Income taxes are accounted for under the liability method. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of differences between the tax basis of assets or liabilities and their carrying amounts in the consolidated financial statements. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before the Company is able to realize their benefit or if future deductibility is uncertain. As of September 30, 2014, the Company had provided a full valuation allowance against its deferred tax assets as recoverability was uncertain. Developing the provision for income taxes requires significant judgment and expertise in federal and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets. The Company's judgments and tax strategies are subject to audit by various taxing authorities. While management believes the Company has provided adequately for its income tax liabilities in its consolidated financial statements, adverse determinations by these taxing authorities could have a material adverse effect on the Company's consolidated financial condition and results of operations. | |
The Company's ending deferred tax liability represents a future tax obligation for current tax amortization claimed on acquired IPR&D. As the Company cannot estimate when the IPR&D assets will be amortizable for financial reporting purposes, the deferred tax liability associated with the IPR&D assets cannot be used to support the realization of the Company's deferred tax assets. As a result, the Company is required to increase its valuation allowance and record a charge to deferred taxes. | |
Discontinued Operations | ' |
Discontinued Operations-Oncology Product Line | |
In September 2006, the Company and Eisai Inc. and Eisai Co., Ltd. (collectively "Eisai"), entered into a purchase agreement (the "Oncology Purchase Agreement"), pursuant to which Eisai agreed to acquire all of the Company's worldwide rights in and to its oncology products, including, among other things, all related inventory, equipment, records and intellectual property, and to assume certain liabilities as set forth in the Oncology Purchase Agreement. The Oncology product line included the Company's four marketed oncology drugs: Ontak, Targretin capsules, Targretin gel and Panretin gel. | |
Discontinued Operations-Avinza Product Line | |
In September 2006, the Company and King Pharmaceuticals, now a subsidiary of Pfizer, entered into a purchase agreement (the "Avinza Purchase Agreement"), pursuant to which Pfizer acquired all of the rights in and to Avinza in the United States, its territories and Canada, including, among other things, all Avinza inventory, records and related intellectual property, and to assume certain liabilities as set forth in the Avinza Purchase Agreement. | |
Pursuant to the terms of the Avinza Purchase Agreement, the Company retained the liability for returns of product from wholesalers that had been sold by the Company prior to the close of the transaction. Accordingly, as part of the accounting for the gain on the sale of Avinza, the Company recorded a reserve for Avinza product returns. | |
Segment Reporting | ' |
Segment Reporting | |
Under ASC 280, Segment Reporting ("ASC 280"), operating segments are defined as components of an enterprise about which separate financial information is available that is regularly evaluated by the entity’s chief operating decision maker, in deciding how to allocate resources and in assessing performance. The Company has evaluated this codification and has identified two reportable segments: the development and commercialization of drugs using Captisol technology by CyDex and the biopharmaceutical company with a business model that is based upon the concept of developing or acquiring royalty revenue generating assets and coupling them with a lean corporate cost structure. | |
Comprehensive Income | ' |
Comprehensive Income | |
Comprehensive income represents net income adjusted for the change during the periods presented in unrealized gains and losses on available-for-sale securities less reclassification adjustments for realized gains or losses included in net income. The unrealized gains or losses are reported on the consolidated statements of comprehensive income. | |
Consolidation of Variable Interest Entities | ' |
Consolidation of Variable Interest Entities | |
The Company identifies an entity as a VIE if either: (1) the entity does not have sufficient equity investment at risk to permit the entity to finance its activities without additional subordinated financial support, or (2) the entity's equity investors lack the essential characteristics of a controlling financial interest. The Company performs ongoing qualitative assessments of its VIEs to determine whether the Company has a controlling financial interest in any VIE and therefore is the primary beneficiary. If the Company is the primary beneficiary of a VIE, it must consolidate the VIE under applicable accounting guidance. The Company determined it holds a variable interest in Viking based on management's assessment that it does not have sufficient resources to carry out its principal activities without the support of the Company. The Company's variable interests in Viking are a loan provided by the Company to Viking and a license agreement executed concurrently. As of September 30, 2014, the Company's total assets include $2.9 million related to Viking and the Company's total liabilities include $4.5 million related to Viking. Viking's consolidated assets are owned by Viking, and Viking's consolidated liabilities are without recourse against Ligand. | |
New Accounting Pronouncements | ' |
New Accounting Pronouncements | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income ("AOCI") by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. Implementing ASU 2013-02 did not change the current requirements for reporting net income or other comprehensive income in the financial statements. The amendments in this ASU are effective for the Company for fiscal years, and interim periods within those years, beginning after January 1, 2014. The Company's adoption of this standard did not materially affect the consolidated financial statements. | |
In July 2013, FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires the netting of unrecognized tax benefits ("UTBs") against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. UTBs are required to be netted against all available same-jurisdiction loss or other tax carryforwards that would be utilized, rather than only against carryforwards that are created by the UTBs. ASU 2013-11 is effective for the Company for interim and annual periods beginning after December 15, 2013. The Company's adoption of this standard did not materially affect the consolidated financial statements. | |
In April 2014, FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and modifies the related disclosure requirements. Under the new guidance, only disposals resulting in a strategic shift that will have a major effect on an entity's operations and financial results will be reported as discontinued operations. ASU 2014-08 also removes the requirement that an entity not have any significant continuing involvement in the operations of the component after disposal to qualify for reporting of the disposal as a discontinued operation. The guidance is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted for any disposal transaction not previously reported. Management does not believe the adoption of this guidance will have a material impact on the Company's consolidated financial statements. | |
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, (5) recognize revenue when (or as) the entity satisfies a performance obligation. Management is currently evaluating the effect the adoption of this standard will have on the Company's financial statements. | |
In June 2014, FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments in this update require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation - Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in this update will be effective for the Company as of January 1, 2016. Earlier adoption is permitted. Entities may apply the amendments in this update either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If a retrospective transition is adopted, the cumulative effect of applying this update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. In addition, if a retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. Management is currently assessing the impact of this update, and believes that its adoption on January 1, 2016 will not have a material impact on the Company's consolidated financial statements. | |
In August 2014, FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern. The amendments in this update require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period, including interim periods, (3) provide principles for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this update are effective for the Company as of January 1, 2017. Early application is permitted. Management is currently assessing the impact of this update on its future discussion of its liquidity position in the Management’s Discussion and Analysis. |
Basis_of_Presentation_Tables
Basis of Presentation (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||||||
Summary of computation of basic and diluted net income (loss) per share | ' | |||||||||||||||
The following table sets forth the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
EPS attributable to common shareholders: | ||||||||||||||||
Net income from continuing operations | $ | 1,280 | $ | 1,965 | 4,969 | $ | 6,963 | |||||||||
Net income from discontinued operations | — | — | — | 2,588 | ||||||||||||
Net income | $ | 1,280 | $ | 1,965 | $ | 4,969 | $ | 9,551 | ||||||||
Shares used to compute basic income per share | 20,417,187 | 20,357,558 | 20,584,469 | 20,268,261 | ||||||||||||
Dilutive potential common shares: | ||||||||||||||||
Restricted stock | 22,531 | 77,609 | 37,387 | 62,051 | ||||||||||||
Stock options | 905,593 | 408,575 | 1,010,665 | 232,310 | ||||||||||||
Shares used to compute diluted income per share | 21,345,311 | 20,843,742 | 21,632,521 | 20,562,622 | ||||||||||||
Basic per share amounts: | ||||||||||||||||
Income from continuing operations | $ | 0.06 | $ | 0.1 | $ | 0.24 | $ | 0.34 | ||||||||
Income from discontinued operations | — | — | — | 0.13 | ||||||||||||
Net income | $ | 0.06 | $ | 0.1 | $ | 0.24 | $ | 0.47 | ||||||||
Diluted per share amounts: | ||||||||||||||||
Income from continuing operations | $ | 0.06 | $ | 0.09 | $ | 0.23 | $ | 0.33 | ||||||||
Income from discontinued operations | — | — | — | 0.13 | ||||||||||||
Net income | $ | 0.06 | $ | 0.09 | $ | 0.23 | $ | 0.46 | ||||||||
Summary of investment categories | ' | |||||||||||||||
The following table summarizes the various investment categories at September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
Cost | Gross unrealized | Gross unrealized | Estimated | |||||||||||||
gains | losses | fair value | ||||||||||||||
30-Sep-14 | ||||||||||||||||
Short-term investments | $ | 1,426 | $ | 4,499 | $ | — | $ | 5,925 | ||||||||
Certificates of deposit-restricted | 1,261 | — | — | 1,261 | ||||||||||||
$ | 2,687 | $ | 4,499 | $ | — | $ | 7,186 | |||||||||
31-Dec-13 | ||||||||||||||||
Short-term investments | $ | 1,426 | $ | 2,914 | $ | — | $ | 4,340 | ||||||||
Certificates of deposit-restricted | 1,341 | — | — | 1,341 | ||||||||||||
$ | 2,767 | $ | 2,914 | $ | — | $ | 5,681 | |||||||||
Summary of property and equipment | ' | |||||||||||||||
Property and equipment is stated at cost and consists of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Lab and office equipment | $ | 2,509 | $ | 3,737 | ||||||||||||
Leasehold improvements | 273 | 387 | ||||||||||||||
Computer equipment and software | 631 | 616 | ||||||||||||||
3,413 | 4,740 | |||||||||||||||
Less accumulated depreciation and amortization | (2,862 | ) | (3,873 | ) | ||||||||||||
Total property and equipment, net | $ | 551 | $ | 867 | ||||||||||||
Summary of other current assets | ' | |||||||||||||||
Other current assets consist of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Prepaid expenses | $ | 1,178 | $ | 786 | ||||||||||||
Other receivables | 424 | 173 | ||||||||||||||
Total current assets | $ | 1,602 | $ | 959 | ||||||||||||
Summary of goodwill and other identifiable intangible assets | ' | |||||||||||||||
Goodwill and other identifiable intangible assets consist of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Indefinite lived intangible assets | ||||||||||||||||
Acquired in-process research and development | $ | 12,556 | $ | 12,556 | ||||||||||||
Goodwill | 12,238 | 12,238 | ||||||||||||||
Definite lived intangible assets | ||||||||||||||||
Complete technology | 15,267 | 15,267 | ||||||||||||||
Less: Accumulated amortization | (2,807 | ) | (2,235 | ) | ||||||||||||
Trade name | 2,642 | 2,642 | ||||||||||||||
Less: Accumulated amortization | (487 | ) | (387 | ) | ||||||||||||
Customer relationships | 29,600 | 29,600 | ||||||||||||||
Less: Accumulated amortization | (5,454 | ) | (4,344 | ) | ||||||||||||
Total goodwill and other identifiable intangible assets, net | $ | 63,555 | $ | 65,337 | ||||||||||||
Summary of accrued liabilities | ' | |||||||||||||||
Accrued liabilities consist of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Compensation | $ | 1,388 | $ | 1,929 | ||||||||||||
Professional fees | 805 | 697 | ||||||||||||||
Accrued interest payable | 230 | — | ||||||||||||||
Other | 1,888 | 2,711 | ||||||||||||||
Total accrued liabilities | $ | 4,311 | $ | 5,337 | ||||||||||||
Summary of other long-term liabilities | ' | |||||||||||||||
Other long-term liabilities consist of the following (in thousands): | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Deposits | $ | 402 | $ | 345 | ||||||||||||
Deferred rent | 335 | 350 | ||||||||||||||
Total other long-term liabilities | $ | 737 | $ | 695 | ||||||||||||
Schedule for accounting for share-based compensation | ' | |||||||||||||||
The following table summarizes stock-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands): | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Stock-based compensation expense as a component of: | ||||||||||||||||
Research and development expenses | $ | 1,169 | $ | 438 | $ | 2,814 | $ | 1,272 | ||||||||
General and administrative expenses | 2,533 | 1,095 | 5,981 | 2,877 | ||||||||||||
$ | 3,702 | $ | 1,533 | $ | 8,795 | $ | 4,149 | |||||||||
Summary of fair-value options awarded to employees and directors | ' | |||||||||||||||
The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions: | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Risk-free interest rate | 1.90% | 1.80% | 1.90% | 1.40% | ||||||||||||
Dividend yield | — | — | — | — | ||||||||||||
Expected volatility | 67% | 70% | 68% | 70% | ||||||||||||
Expected term | 6.4 | 6.3 | 6.4 | 6.3 | ||||||||||||
Forfeiture rate | 8.60% | 8.80% | 8.6%-9.7% | 8.4%-9.8% |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Summary of the assets and liabilities measured at fair value on recurring basis | ' | |||||||||||||||
The following table provides a summary of the carrying value of assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2014 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Current co-promote termination payments receivable | $ | 523 | $ | — | $ | — | $ | 523 | ||||||||
Available-for-sale securities | 5,925 | 5,925 | — | — | ||||||||||||
Total assets | $ | 6,448 | $ | 5,925 | $ | — | $ | 523 | ||||||||
Liabilities: | ||||||||||||||||
Current contingent liabilities-CyDex | $ | 4,184 | $ | — | $ | — | $ | 4,184 | ||||||||
Current co-promote termination liability | 523 | — | — | 523 | ||||||||||||
Long-term contingent liabilities-Metabasis | 3,511 | 3,511 | — | — | ||||||||||||
Long-term contingent liabilities-CyDex | 8,755 | — | — | 8,755 | ||||||||||||
Liability for short-term investments owed to former licensees | 917 | 917 | — | — | ||||||||||||
Total liabilities | $ | 17,890 | $ | 4,428 | $ | — | $ | 13,462 | ||||||||
The following table provides a summary of the assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2013 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | ||||||||||||||||
Quoted Prices in | Significant | Significant | ||||||||||||||
Active Markets | Other | Unobservable | ||||||||||||||
for Identical | Observable | Inputs | ||||||||||||||
Assets | Inputs | |||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | ||||||||||||||||
Current portion of co-promote termination payments receivable | $ | 4,329 | $ | — | $ | — | $ | 4,329 | ||||||||
Available-for-sale securities | 4,340 | 4,340 | — | — | ||||||||||||
Long-term portion of co-promote termination payments receivable | 7,417 | — | — | 7,417 | ||||||||||||
Total assets | $ | 16,086 | $ | 4,340 | $ | — | $ | 11,746 | ||||||||
Liabilities: | ||||||||||||||||
Current portion of contingent liabilities-CyDex | $ | 1,712 | $ | — | $ | — | $ | 1,712 | ||||||||
Current portion of co-promote termination liability | 4,329 | — | — | 4,329 | ||||||||||||
Long-term portion of contingent liabilities-Metabasis | 4,196 | 4,196 | — | — | ||||||||||||
Long-term portion of contingent liabilities-CyDex | 7,599 | — | — | 7,599 | ||||||||||||
Liability for short-term investments owed to licensors | 651 | 651 | — | — | ||||||||||||
Long-term portion of co-promote termination liability | 7,417 | — | — | 7,417 | ||||||||||||
Total liabilities | $ | 25,904 | $ | 4,847 | $ | — | $ | 21,057 | ||||||||
CyDex Acquisition | ' | |||||||||||||||
The following table represents significant unobservable inputs used in determining the fair value of contingent liabilities assumed in the acquisition of CyDex: | ||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||
Range of annual revenue subject to revenue sharing (1) | $17.9 million-$20.5 million | $4.2 million-$19.8 million | ||||||||||||||
Revenue volatility | 25% | 25% | ||||||||||||||
Average of probability of commercialization | 83.80% | 67.60% | ||||||||||||||
Sales beta | 0.6 | 0.6 | ||||||||||||||
Credit rating | B | BBB | ||||||||||||||
Equity risk premium | 6% | 6% | ||||||||||||||
-1 | Revenue subject to revenue sharing represent management’s estimate of the range of total annual revenue subject to revenue sharing (i.e. annual revenues in excess of $15 million) through December 31, 2016, which is the term of the CVR agreement. | |||||||||||||||
Reconciliation of level 3 financial instruments | ' | |||||||||||||||
A reconciliation of the level 3 financial instruments as of September 30, 2014 is as follows (in thousands): | ||||||||||||||||
Assets: | ||||||||||||||||
Fair value of level 3 financial instrument assets as of December 31, 2013 | $ | 11,746 | ||||||||||||||
Assumed payments made by Pfizer or assignee | (1,002 | ) | ||||||||||||||
Fair value adjustments to co-promote termination liability | (10,221 | ) | ||||||||||||||
Fair value of level 3 financial instrument assets as of September 30, 2014 | $ | 523 | ||||||||||||||
Liabilities: | ||||||||||||||||
Fair value of level 3 financial instrument liabilities as of December 31, 2013 | $ | 21,057 | ||||||||||||||
Assumed payments made by Pfizer or assignee | (1,002 | ) | ||||||||||||||
Payments to CVR and other former license holders | (1,936 | ) | ||||||||||||||
Fair value adjustments to contingent liabilities | 5,564 | |||||||||||||||
Fair value adjustments to co-promote termination liability | (10,221 | ) | ||||||||||||||
Fair value of level 3 financial instrument liabilities as of September 30, 2014 | $ | 13,462 | ||||||||||||||
Variable_Interest_Entities_Tab
Variable Interest Entities (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||
Schedule of Variable Interest Entities | ' | |||
The following table represents the consolidated assets and liabilities, which are owned by and are obligations of Viking and are with no recourse to the Company, as of September 30, 2014 (in thousands): | ||||
30-Sep-14 | ||||
Cash and cash equivalents | $ | 794 | ||
Other current assets | 17 | |||
Capitalized IPO expenses | 2,131 | |||
Total current assets | $ | 2,942 | ||
Other assets | 1 | |||
Total assets | $ | 2,943 | ||
Accounts payable | $ | 2,225 | ||
Accrued liabilities | 77 | |||
Current portion of notes payable | 337 | |||
Total current liabilities | $ | 2,639 | ||
Long-term portion of notes payable | 1,893 | |||
Total liabilities | $ | 4,532 | ||
Avinza_CoPromotion_Tables
Avinza Co-Promotion (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Co Promotion [Abstract] | ' | |||
Summary of co-promote termination liability | ' | |||
A summary of the co-promote termination liability as of September 30, 2014 is as follows (in thousands): | ||||
Net present value of payments based on estimated future net Avinza product sales as of December 31, 2013 | $ | 11,746 | ||
Assumed payments made by Pfizer or assignee | (1,002 | ) | ||
Fair value adjustments | (10,221 | ) | ||
Total co-promote termination liability as of September 30, 2014 | $ | 523 | ||
Lease_Obligations_Tables
Lease Obligations (Tables) | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||
Leases [Abstract] | ' | ||||||||||||||||||||||
Payments expected to received from sublease agreements | ' | ||||||||||||||||||||||
The following table provides a summary of operating lease obligations and payments expected to be received from sublease agreements as of September 30, 2014 (in thousands): | |||||||||||||||||||||||
Operating lease obligations: | Lease | Less than 1 | 1-3 years | 3-5 years | More than | Total | |||||||||||||||||
Termination | year | 5 years | |||||||||||||||||||||
Date | |||||||||||||||||||||||
Corporate headquarters- | Jul-19 | $ | 677 | $ | 1,409 | $ | 1,293 | $ | — | $ | 3,379 | ||||||||||||
San Diego, CA | |||||||||||||||||||||||
Bioscience and Technology Business Center- | Dec-17 | 55 | 108 | 13 | — | 176 | |||||||||||||||||
Lawrence, KS | |||||||||||||||||||||||
Vacated office and research facility-San Diego, CA | Jul-15 | 1,912 | — | — | — | 1,912 | |||||||||||||||||
Vacated office and research facility- | Aug-16 | 2,576 | 2,397 | — | — | 4,973 | |||||||||||||||||
Cranbury, NJ | |||||||||||||||||||||||
Total operating lease obligations | $ | 5,220 | $ | 3,914 | $ | 1,306 | $ | — | $ | 10,440 | |||||||||||||
Sublease payments expected to be received: | Less than 1 | 1-3 years | 3-5 years | More than | Total | ||||||||||||||||||
year | 5 years | ||||||||||||||||||||||
Office and research facility- | Jul-15 | $ | 771 | $ | — | $ | — | $ | — | $ | 771 | ||||||||||||
San Diego, CA | |||||||||||||||||||||||
Office and research facility- | August 2014 and 2016 | 492 | 464 | — | — | 956 | |||||||||||||||||
Cranbury, NJ | |||||||||||||||||||||||
Net operating lease obligations | $ | 3,957 | $ | 3,450 | $ | 1,306 | $ | — | $ | 8,713 | |||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Summary of segment information | ' | |||||||||||
Segment information is as follows (in thousands): | ||||||||||||
Balance Sheet Data: | As of September 30, 2014 | |||||||||||
Ligand | CyDex | Total | ||||||||||
Total assets | $ | 203,296 | $ | 68,987 | $ | 272,283 | ||||||
As of December 31, 2013 | ||||||||||||
Ligand | CyDex | Total | ||||||||||
Total assets | $ | 38,408 | $ | 66,305 | $ | 104,713 | ||||||
Operating Data: | For the three months ended September 30, 2014 | |||||||||||
Ligand | CyDex | Total | ||||||||||
Net revenues from external customers | $ | 6,424 | $ | 8,549 | $ | 14,973 | ||||||
Depreciation and amortization expense | (61 | ) | (601 | ) | (662 | ) | ||||||
Operating (loss) income | (1,683 | ) | 5,215 | 3,532 | ||||||||
Interest expense, net | (1,516 | ) | — | (1,516 | ) | |||||||
Income tax expense from continuing operations | (115 | ) | (9 | ) | (124 | ) | ||||||
For the three months ended September 30, 2013 | ||||||||||||
Ligand | CyDex | Total | ||||||||||
Net revenues from external customers | 4,731 | 8,274 | $ | 13,005 | ||||||||
Depreciation and amortization expense | (62 | ) | (606 | ) | $ | (668 | ) | |||||
Operating (loss) income | (1,142 | ) | 4,212 | $ | 3,070 | |||||||
Interest expense, net | (394 | ) | — | $ | (394 | ) | ||||||
Income tax (expense) benefit from continuing operations | (70 | ) | 10 | $ | (60 | ) | ||||||
Gain on sale of Avinza Product Line before income taxes | — | — | $ | — | ||||||||
For the nine months ended September 30, 2014 | ||||||||||||
Ligand | CyDex | Total | ||||||||||
Net revenues from external customers | 18,907 | 22,632 | $ | 41,539 | ||||||||
Depreciation and amortization expense | (194 | ) | (1,804 | ) | (1,998 | ) | ||||||
Operating (loss) income | (2,622 | ) | 12,611 | 9,989 | ||||||||
Interest expense, net | (1,946 | ) | — | (1,946 | ) | |||||||
Income tax expense from continuing operations | (123 | ) | (8 | ) | (131 | ) | ||||||
For the nine months ended September 30, 2013 | ||||||||||||
Ligand | CyDex | Total | ||||||||||
Net revenues from external customers | $ | 14,789 | $ | 19,448 | $ | 34,237 | ||||||
Depreciation and amortization expense | (179 | ) | (1,828 | ) | (2,007 | ) | ||||||
Write-off of in-process research and development | — | 480 | 480 | |||||||||
Operating income | (944 | ) | 9,462 | 8,518 | ||||||||
Interest expense, net | (1,755 | ) | — | (1,755 | ) | |||||||
Income tax (expense) benefit from continuing operations | (301 | ) | 64 | (237 | ) | |||||||
Gain on sale of Avinza Product Line before income taxes | 2,588 | — | 2,588 | |||||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Summary of carrying values and coupon rates on financing arrangements | ' | |||||||
The carrying values and the fixed contractual coupon rates of the Company's financing arrangements as of September 30, 2014 and December 31, 2013 were as follows (in thousands): | ||||||||
30-Sep-14 | 31-Dec-13 | |||||||
2019 Convertible Senior Notes | ||||||||
Principal amount outstanding | $ | 245,000 | $ | — | ||||
Unamortized discount | (51,369 | ) | — | |||||
Net carrying amount | 193,631 | — | ||||||
Convertible notes payable, Viking Therapeutics, Inc. | 337 | — | ||||||
Current portion notes payable, 8.64%, due August 1, 2014 | — | 6,642 | ||||||
Current portion notes payable, 8.9012%, due August 1, 2014 | — | 2,467 | ||||||
Total notes payable | $ | 193,968 | $ | 9,109 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Stock option plan activity | ' | ||||||||||||
The following is a summary of the Company’s stock option plan activity and related information: | |||||||||||||
Shares | Weighted- | Weighted-Average | Aggregate | ||||||||||
Average | Remaining | Intrinsic Value | |||||||||||
Exercise | Contractual Term in | (In thousands) | |||||||||||
Price | Years | ||||||||||||
Balance as of December 31, 2013 | 1,746,709 | $ | 16.79 | 7.6 | $ | 62,705 | |||||||
Granted | 366,184 | 73.81 | |||||||||||
Exercised | (262,820 | ) | 15.43 | ||||||||||
Forfeited | (49,967 | ) | 16.69 | ||||||||||
Cancelled | (4,414 | ) | 80.81 | ||||||||||
Balance as of September 30, 2014 | 1,795,692 | 28.46 | 7.5 | $ | 43,200 | ||||||||
Exercisable as of September 30, 2014 | 1,052,706 | 20 | 7.5 | $ | 30,339 | ||||||||
Options vested and expected to vest as of September 30, 2014 | 1,795,692 | 28.46 | 6.8 | $ | 43,200 | ||||||||
Restricted stock activity | ' | ||||||||||||
Restricted stock activity for the nine months ended September 30, 2014 was as follows: | |||||||||||||
Shares | Weighted- | ||||||||||||
Average Grant | |||||||||||||
Date Fair Value | |||||||||||||
Nonvested at December 31, 2013 | 115,386 | $ | 21.93 | ||||||||||
Granted | 41,671 | 72.5 | |||||||||||
Vested | (74,312 | ) | 25.21 | ||||||||||
Cancelled | (3,972 | ) | 18.42 | ||||||||||
Nonvested at September 30, 2014 | 78,773 | $ | 45.77 | ||||||||||
Basis_of_Presentation_Narrativ
Basis of Presentation (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||||
Share data in Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Jan. 31, 2011 | Jan. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jan. 31, 2010 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
storage_location | segment | Equipment | Equipment | Royalty Stream and Milestone Payments Purchase Agreement with Selexis | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Cydex Pharmaceuticals, Inc | Metabasis Therapeutics | Metabasis Therapeutics | Metabasis Therapeutics | Metabasis Therapeutics | Metabasis Therapeutics | Metabasis Therapeutics | Accounts Receivable | Accounts Receivable | Acquired In Process Research And Development | Acquired In Process Research And Development | Acquired In Process Research And Development | Omthera Pharmaceuticals | Viking | ||||
drug | storage_location | Minimum | Maximum | program | Guaranteed Payment | Revenue Sharing | Revenue Sharing | Revenue Sharing | Revenue Sharing | Other Contingency Payment | Other Contingency Payment | Other Contingency Payment | Other Contingency Payment | right | Customer Concentration Risk | Customer Concentration Risk | ||||||||||||||||||||
drug | customer | customer | ||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accumulated deficit | $666,371,000 | ' | $666,371,000 | ' | $671,339,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Working capital | 180,100,000 | ' | 180,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Earnings (Loss) Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares excluded from computation | ' | ' | 5 | 0.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash, Cash Equivalents and Short-term Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of cash and cash equivalents, maximum | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity period of short term investments, minimum | ' | ' | '3 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentrations of Credit Risk | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash deposits | 92,800,000 | ' | 92,800,000 | ' | 11,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, number of customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 2 | ' | ' | ' | ' | ' |
Concentration risk, percentage of accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 57.00% | 75.00% | ' | ' | ' | ' | ' |
Product Shelf Life | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Storage Locations | 3 | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and Equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life of assets | ' | ' | ' | ' | ' | '3 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation | 100,000 | 200,000 | 100,000 | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill and Other Identifiable Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Finite-lived intangible asset, useful life | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | 600,000 | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization Expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense 2014 | 2,400,000 | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense 2015 | 2,400,000 | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense 2016 | 2,400,000 | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense 2017 | 2,400,000 | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense 2018 | 2,400,000 | ' | 2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired In-Process Research and Development | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of in-process research and development | 0 | 0 | 0 | 480,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' |
Gain on write-off of assets | ' | ' | -16,000 | 0 | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commercial License Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of commercial license agreement programs | ' | ' | ' | ' | ' | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | ' | 4,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to acquire intangible assets | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash payment due on first anniversary of the closing | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent Liabilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase of commercial license rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,300,000 | 0 | 0 | 1,600,000 | 0 | 300,000 | 100,000 | 300,000 | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of liability | ' | ' | ' | ' | ' | ' | ' | ' | 12,900,000 | ' | 12,900,000 | ' | 9,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,500,000 | ' | 3,500,000 | ' | 4,200,000 | ' | ' | ' | ' | ' | ' | ' |
Contingent liability change in amount | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | -1,200,000 | 5,600,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | 700,000 | -700,000 | -1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of contingent value rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of contingent value rights per series of contingent value rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of contingent value rights issued for each share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent value rights, frequency of cash payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue Recognition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period allowed for return of products, minimum | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period allowed for return of products, maximum | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for Doubtful Accounts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable outstanding considered past due after period, minimum | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable outstanding considered past due after period, maximum | ' | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allowance for doubtful accounts | 0 | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sale of Royalty Rights | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue | 0 | ' | 0 | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Milestone Payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Event-based payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | ' |
Discontinued Operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of drugs included in product line | 4 | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of Avinza Product Line before income taxes | 0 | 0 | 0 | 2,588,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | 272,283,000 | ' | 272,283,000 | ' | 104,713,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,943,000 |
Liabilities | $229,500,000 | ' | $229,500,000 | ' | $55,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,532,000 |
Basis_of_Presentation_Earnings
Basis of Presentation (Earnings (Loss) Per Share) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Summary of computation of basic and diluted net income (loss) per share | ' | ' | ' | ' |
Net income from continuing operations | $1,280 | $1,965 | $4,969 | $6,963 |
Net income from discontinued operations | ' | ' | 0 | 2,588 |
Net income | $1,280 | $1,965 | $4,969 | $9,551 |
Shares used to compute basic income per share | 20,417,187 | 20,357,558 | 20,584,469 | 20,268,261 |
Dilutive potential common shares: | ' | ' | ' | ' |
Restricted stock | 22,531 | 77,609 | 37,387 | 62,051 |
Stock options | 905,593 | 408,575 | 1,010,665 | 232,310 |
Shares used to compute diluted income per share | 21,345,311 | 20,843,742 | 21,632,521 | 20,562,622 |
Basic per share amounts: | ' | ' | ' | ' |
Income from continuing operations (in usd per share) | $0.06 | $0.10 | $0.24 | $0.34 |
Income from discontinued operations (in usd per share) | $0 | $0 | $0 | $0.13 |
Net income (in usd per share) | $0.06 | $0.10 | $0.24 | $0.47 |
Diluted per share amounts: | ' | ' | ' | ' |
Income from continuing operations (in usd per share) | $0.06 | $0.09 | $0.23 | $0.33 |
Income from discontinued operations (in usd per share) | $0 | $0 | $0 | $0.13 |
Net income (in usd per share) | $0.06 | $0.09 | $0.23 | $0.46 |
Basis_of_Presentation_Investme
Basis of Presentation (Investment Categories) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of investment categories | ' | ' |
Cost | $2,687 | $2,767 |
Gross unrealized gains | -4,499 | -2,914 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 7,186 | 5,681 |
Short-term investments | ' | ' |
Summary of investment categories | ' | ' |
Cost | 1,426 | 1,426 |
Gross unrealized gains | -4,499 | -2,914 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 5,925 | 4,340 |
Certificates of deposit-restricted | ' | ' |
Summary of investment categories | ' | ' |
Cost | 1,261 | 1,341 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $1,261 | $1,341 |
Basis_of_Presentation_Property
Basis of Presentation (Property and Equipment) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of Property and equipment | ' | ' |
Property and equipment , gross | $3,413 | $4,740 |
Less accumulated depreciation and amortization | -2,862 | -3,873 |
Total property and equipment, net | 551 | 867 |
Lab and office equipment | ' | ' |
Summary of Property and equipment | ' | ' |
Property and equipment , gross | 2,509 | 3,737 |
Leasehold improvements | ' | ' |
Summary of Property and equipment | ' | ' |
Property and equipment , gross | 273 | 387 |
Computer equipment and software | ' | ' |
Summary of Property and equipment | ' | ' |
Property and equipment , gross | $631 | $616 |
Basis_of_Presentation_Other_Cu
Basis of Presentation (Other Current Assets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of other current assets | ' | ' |
Prepaid expenses | $1,178 | $786 |
Other receivables | 424 | 173 |
Total current assets | $1,602 | $959 |
Basis_of_Presentation_Goodwill
Basis of Presentation (Goodwill and Other Identifiable Intangible Assets) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of Goodwill and Other Identifiable Intangible Assets | ' | ' |
Goodwill | $12,238 | $12,238 |
Total goodwill and other identifiable intangible assets, net | 63,555 | 65,337 |
Complete technology | ' | ' |
Summary of Goodwill and Other Identifiable Intangible Assets | ' | ' |
Definite lived intangible assets | 15,267 | 15,267 |
Less: Accumulated amortization | -2,807 | -2,235 |
Trade name | ' | ' |
Summary of Goodwill and Other Identifiable Intangible Assets | ' | ' |
Definite lived intangible assets | 2,642 | 2,642 |
Less: Accumulated amortization | -487 | -387 |
Customer relationships | ' | ' |
Summary of Goodwill and Other Identifiable Intangible Assets | ' | ' |
Definite lived intangible assets | 29,600 | 29,600 |
Less: Accumulated amortization | -5,454 | -4,344 |
Acquired in-process research and development | ' | ' |
Summary of Goodwill and Other Identifiable Intangible Assets | ' | ' |
Acquired in-process research and development | $12,556 | $12,556 |
Basis_of_Presentation_Accrued_
Basis of Presentation (Accrued Liabilities and Other Long-Term Liabilities) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities | ' | ' |
Compensation | $1,388 | $1,929 |
Professional fees | 805 | 697 |
Accrued interest payable | 230 | 0 |
Other | 1,888 | 2,711 |
Total accrued liabilities | 4,311 | 5,337 |
Other Long-Term Liabilities | ' | ' |
Deposits | 402 | 345 |
Deferred rent | 335 | 350 |
Total other long-term liabilities | $737 | $695 |
Basis_of_Presentation_Accounti
Basis of Presentation (Accounting for Share-Based Compensation) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Basis of Presentation [Line Items] | ' | ' | ' | ' |
Share-based compensation expense total | $3,702 | $1,533 | $8,795 | $4,149 |
Research and development expenses | ' | ' | ' | ' |
Basis of Presentation [Line Items] | ' | ' | ' | ' |
Share-based compensation expense total | 1,169 | 438 | 2,814 | 1,272 |
General and administrative expenses | ' | ' | ' | ' |
Basis of Presentation [Line Items] | ' | ' | ' | ' |
Share-based compensation expense total | $2,533 | $1,095 | $5,981 | $2,877 |
Basis_of_Presentation_Fair_Val
Basis of Presentation (Fair Value Valuation Assumptions) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Summary of fair-value options awarded to employees and directors | ' | ' | ' | ' |
Risk-free interest rate | 1.90% | 1.80% | 1.90% | 1.40% |
Dividend yield | 0.00% | 0.00% | 0.00% | 0.00% |
Expected volatility | 67.00% | 70.00% | 68.00% | 70.00% |
Expected term | '6 years 5 months 5 days | '6 years 3 months 18 days | '6 years 5 months 5 days | '6 years 3 months 18 days |
Forfeiture rate | 8.60% | 8.80% | ' | ' |
Minimum | ' | ' | ' | ' |
Summary of fair-value options awarded to employees and directors | ' | ' | ' | ' |
Forfeiture rate | ' | ' | 8.60% | 8.40% |
Maximum | ' | ' | ' | ' |
Summary of fair-value options awarded to employees and directors | ' | ' | ' | ' |
Forfeiture rate | ' | ' | 9.70% | 9.80% |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
2019 convertible senior notes | 2019 convertible senior notes | 2019 convertible senior notes | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | Recurring | |
Senior Notes | Current contingent liabilities-CyDex | Current contingent liabilities-CyDex | Current co-promote termination liability | Current co-promote termination liability | Long-term contingent liabilities-Metabasis | Long-term contingent liabilities-Metabasis | Long-term contingent liabilities-CyDex | Long-term contingent liabilities-CyDex | Liability for short-term investments owed to former licensees | Liability for short-term investments owed to former licensees | Long-term portion of co-promote termination liability | Current co-promote termination payments receivable | Current co-promote termination payments receivable | Available-for-sale securities | Available-for-sale securities | Long-term portion of co-promote termination payments receivable | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | |||||
Current contingent liabilities-CyDex | Current contingent liabilities-CyDex | Current co-promote termination liability | Current co-promote termination liability | Long-term contingent liabilities-Metabasis | Long-term contingent liabilities-Metabasis | Long-term contingent liabilities-CyDex | Long-term contingent liabilities-CyDex | Liability for short-term investments owed to former licensees | Liability for short-term investments owed to former licensees | Long-term portion of co-promote termination liability | Current co-promote termination payments receivable | Current co-promote termination payments receivable | Available-for-sale securities | Available-for-sale securities | Long-term portion of co-promote termination payments receivable | Current contingent liabilities-CyDex | Current contingent liabilities-CyDex | Current co-promote termination liability | Current co-promote termination liability | Long-term contingent liabilities-Metabasis | Long-term contingent liabilities-Metabasis | Long-term contingent liabilities-CyDex | Long-term contingent liabilities-CyDex | Liability for short-term investments owed to former licensees | Liability for short-term investments owed to former licensees | Long-term portion of co-promote termination liability | Current co-promote termination payments receivable | Current co-promote termination payments receivable | Available-for-sale securities | Available-for-sale securities | Long-term portion of co-promote termination payments receivable | Current contingent liabilities-CyDex | Current contingent liabilities-CyDex | Current co-promote termination liability | Current co-promote termination liability | Long-term contingent liabilities-Metabasis | Long-term contingent liabilities-Metabasis | Long-term contingent liabilities-CyDex | Long-term contingent liabilities-CyDex | Liability for short-term investments owed to former licensees | Liability for short-term investments owed to former licensees | Long-term portion of co-promote termination liability | Current co-promote termination payments receivable | Current co-promote termination payments receivable | Available-for-sale securities | Available-for-sale securities | Long-term portion of co-promote termination payments receivable | ||||||||||||||||||||||||||||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets, fair value | ' | ' | ' | $6,448,000 | $16,086,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $523,000 | $4,329,000 | $5,925,000 | $4,340,000 | $7,417,000 | $5,925,000 | $4,340,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $5,925,000 | $4,340,000 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 | $0 | $0 | $523,000 | $11,746,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $523,000 | $4,329,000 | $0 | $0 | $7,417,000 |
Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities, fair value | ' | ' | ' | 17,890,000 | 25,904,000 | 4,184,000 | 1,712,000 | 523,000 | 4,329,000 | 3,511,000 | 4,196,000 | 8,755,000 | 7,599,000 | 917,000 | 651,000 | 7,417,000 | ' | ' | ' | ' | ' | 4,428,000 | 4,847,000 | 0 | 0 | 0 | 0 | 3,511,000 | 4,196,000 | 0 | 0 | 917,000 | 651,000 | 0 | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | 13,462,000 | 21,057,000 | 4,184,000 | 1,712,000 | 523,000 | 4,329,000 | 0 | 0 | 8,755,000 | 7,599,000 | 0 | 0 | 7,417,000 | ' | ' | ' | ' | ' |
Principal amount outstanding | 245,000,000 | 0 | 245,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated fair value of debt | $229,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Acquis
Fair Value Measurements (Acquisition of CyDex) (Details) (Cydex Pharmaceuticals, Inc, USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 | ||
Credit Derivatives [Line Items] | ' | ' | ||
Amount Of Revenue For Contingent Consideration | 15 | ' | ||
Contingent Consideration Classified as Equity | ' | ' | ||
Credit Derivatives [Line Items] | ' | ' | ||
Revenue volatility | 25.00% | 25.00% | ||
Average of probability of commercialization | 83.80% | 67.60% | ||
Sales beta | 0.6 | 0.6 | ||
Credit rating | 'B | 'BBB | ||
Equity risk premium | 6.00% | 6.00% | ||
Minimum | Contingent Consideration Classified as Equity | ' | ' | ||
Credit Derivatives [Line Items] | ' | ' | ||
Range of annual revenue subject to revenue sharing | 17.9 | [1] | 4.2 | [1] |
Maximum | Contingent Consideration Classified as Equity | ' | ' | ||
Credit Derivatives [Line Items] | ' | ' | ||
Range of annual revenue subject to revenue sharing | 20.5 | [1] | 19.8 | [1] |
[1] | Revenue subject to revenue sharing represent managementbs estimate of the range of total annual revenue subject to revenue sharing (i.e. annual revenues in excess of $15 million) through DecemberB 31, 2016, which is the term of the CVR agreement. |
Fair_Value_Measurements_Level_
Fair Value Measurements (Level 3 Reconciliation) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Assets: | ' |
Fair value of level 3 financial instrument assets | $11,746 |
Assumed payments made by Pfizer or assignee | -1,002 |
Fair value adjustments to co-promote termination liability | -10,221 |
Fair value of level 3 financial instrument assets | 523 |
Liabilities: | ' |
Fair value of level 3 financial instrument liabilities | 21,057 |
Assumed payments made by Pfizer or assignee | -1,002 |
Payments to CVR and other former license holders | -1,936 |
Fair value adjustments to contingent liabilities | 5,564 |
Fair value adjustments to co-promote termination liability | -10,221 |
Fair value of level 3 financial instrument liabilities | $13,462 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | 31-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Apr. 30, 2015 | 21-May-14 |
Viking | Viking | Viking | Viking | Debt | |||||
program | Forecast | Viking | |||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of programs licensed | ' | ' | ' | ' | 5 | ' | ' | ' | ' |
Convertible loan facility | ' | ' | ' | ' | ' | $2,000,000 | $2,000,000 | ' | $2,500,000 |
Interest accrual rate, less than | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% |
Repayment in equity percentage | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% |
Value of common stock issued upon IPO | ' | ' | ' | ' | ' | ' | ' | 29,000,000 | ' |
Threshold proceeds from private financing | ' | ' | ' | ' | ' | ' | ' | 20,000,000 | ' |
Cash and cash equivalents | 180,663,000 | 11,639,000 | 3,271,000 | 12,381,000 | ' | 794,000 | 794,000 | ' | ' |
Other current assets | 1,602,000 | 959,000 | ' | ' | ' | 17,000 | 17,000 | ' | ' |
Capitalized expenses, VIE | 2,131,000 | 0 | ' | ' | ' | 2,131,000 | 2,131,000 | ' | ' |
Total current assets | 198,520,000 | 24,881,000 | ' | ' | ' | 2,942,000 | 2,942,000 | ' | ' |
Other assets | 230,000 | 299,000 | ' | ' | ' | 1,000 | 1,000 | ' | ' |
Total assets | 272,283,000 | 104,713,000 | ' | ' | ' | 2,943,000 | 2,943,000 | ' | ' |
Accounts payable | 4,864,000 | 3,951,000 | ' | ' | ' | 2,225,000 | 2,225,000 | ' | ' |
Accrued liabilities | 4,311,000 | 5,337,000 | ' | ' | ' | 77,000 | 77,000 | ' | ' |
Current note payable | 337,000 | 9,109,000 | ' | ' | ' | 337,000 | 337,000 | ' | ' |
Total current liabilities | 18,433,000 | 28,939,000 | ' | ' | ' | 2,639,000 | 2,639,000 | ' | ' |
Long-term portion of notes payable | ' | ' | ' | ' | ' | 1,893,000 | 1,893,000 | ' | ' |
Total liabilities | $229,500,000 | $55,100,000 | ' | ' | ' | $4,532,000 | $4,532,000 | ' | ' |
Loss percentage recorded | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' |
Avinza_CoPromotion_Narrative_D
Avinza Co-Promotion (Narrative) (Details) (AVINZA, Organon) | Sep. 30, 2014 | Dec. 31, 2012 |
AVINZA | Organon | ' | ' |
AVINZA Co-Promotion (Textual) [Abstract] | ' | ' |
Percentage of net sales payable as royalty | 6.00% | 6.50% |
Avinza_CoPromotion_CoPromote_T
Avinza Co-Promotion (Co-Promote Termination Liability) (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Summary of co-promote termination liability | ' |
Net present value of payments based on estimated future net Avinza product sales | $11,746 |
Assumed payments made by Pfizer or assignee | -1,002 |
Fair value adjustments | -10,221 |
Total co-promote termination liability | $523 |
Lease_Obligations_Narrative_De
Lease Obligations (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2010 | Sep. 30, 2014 | Dec. 31, 2013 | |
Facility Closing | Contract Termination | Contract Termination | ||||||
Operating Leased Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Lease expiration year, minimum | ' | ' | '2014 | ' | ' | ' | ' | ' |
Lease expiration year, maximum | ' | ' | '2019 | ' | ' | ' | ' | ' |
Percentage of increase in annual base rent, minimum | 3.00% | ' | 3.00% | ' | ' | ' | ' | ' |
Percentage of increase in annual base rent, maximum | 3.50% | ' | 3.50% | ' | ' | ' | ' | ' |
Lease exit costs | $182,000 | $227,000 | $522,000 | $359,000 | ' | $9,700,000 | $3,700,000 | $5,900,000 |
Property and equipment write-off | ' | ' | ' | ' | ' | 5,400,000 | ' | ' |
Rent expense, net sublease income | 800,000 | 900,000 | 2,600,000 | 2,800,000 | ' | ' | ' | ' |
Adjustment for accretion and changes in lease assumptions | 200,000 | ' | 500,000 | ' | ' | ' | ' | ' |
Rent expense | 200,000 | 200,000 | 500,000 | 500,000 | ' | ' | ' | ' |
Deferred rent | $335,000 | ' | $335,000 | ' | $350,000 | ' | ' | ' |
Lease_Obligations_Lease_Obliga
Lease Obligations (Lease Obligations) (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | $10,440 |
Sublease payments expected to be received: | 8,713 |
Corporate headquarters- San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 3,379 |
Bioscience and Technology Business Center- Lawrence, KS | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 176 |
Vacated office and research facility-San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 1,912 |
Vacated office and research facility- Cranbury, NJ | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 4,973 |
Office and research facility- San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Sublease payments expected to be received: | 771 |
Office and research facility- Cranbury, NJ | ' |
Payments expected to received from sublease agreements | ' |
Sublease payments expected to be received: | 956 |
Less than 1 year | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 5,220 |
Sublease payments expected to be received: | 3,957 |
Less than 1 year | Corporate headquarters- San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 677 |
Less than 1 year | Bioscience and Technology Business Center- Lawrence, KS | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 55 |
Less than 1 year | Vacated office and research facility-San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 1,912 |
Less than 1 year | Vacated office and research facility- Cranbury, NJ | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 2,576 |
Less than 1 year | Office and research facility- San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Sublease payments expected to be received: | 771 |
Less than 1 year | Office and research facility- Cranbury, NJ | ' |
Payments expected to received from sublease agreements | ' |
Sublease payments expected to be received: | 492 |
1-3 years | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 3,914 |
Sublease payments expected to be received: | 3,450 |
1-3 years | Corporate headquarters- San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 1,409 |
1-3 years | Bioscience and Technology Business Center- Lawrence, KS | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 108 |
1-3 years | Vacated office and research facility-San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | ' |
1-3 years | Vacated office and research facility- Cranbury, NJ | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 2,397 |
1-3 years | Office and research facility- San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Sublease payments expected to be received: | ' |
1-3 years | Office and research facility- Cranbury, NJ | ' |
Payments expected to received from sublease agreements | ' |
Sublease payments expected to be received: | 464 |
3-5 years | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 1,306 |
Sublease payments expected to be received: | 1,306 |
3-5 years | Corporate headquarters- San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 1,293 |
3-5 years | Bioscience and Technology Business Center- Lawrence, KS | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | 13 |
3-5 years | Vacated office and research facility-San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | ' |
3-5 years | Vacated office and research facility- Cranbury, NJ | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | ' |
3-5 years | Office and research facility- San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Sublease payments expected to be received: | ' |
3-5 years | Office and research facility- Cranbury, NJ | ' |
Payments expected to received from sublease agreements | ' |
Sublease payments expected to be received: | ' |
More than 5 years | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | ' |
Sublease payments expected to be received: | ' |
More than 5 years | Corporate headquarters- San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | ' |
More than 5 years | Bioscience and Technology Business Center- Lawrence, KS | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | ' |
More than 5 years | Vacated office and research facility-San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | ' |
More than 5 years | Vacated office and research facility- Cranbury, NJ | ' |
Payments expected to received from sublease agreements | ' |
Operating lease obligations: | ' |
More than 5 years | Office and research facility- San Diego, CA | ' |
Payments expected to received from sublease agreements | ' |
Sublease payments expected to be received: | ' |
More than 5 years | Office and research facility- Cranbury, NJ | ' |
Payments expected to received from sublease agreements | ' |
Sublease payments expected to be received: | ' |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 |
Summary of segment information | ' | ' | ' | ' | ' |
Total assets | $272,283 | ' | $272,283 | ' | $104,713 |
Net revenues from external customers | 14,973 | 13,005 | 41,539 | 34,237 | ' |
Depreciation and amortization expense | -662 | -668 | -1,998 | -2,007 | ' |
Write-off of in-process research and development | 0 | 0 | 0 | 480 | ' |
Operating (loss) income | 3,532 | 3,070 | 9,989 | 8,518 | ' |
Interest expense, net | -1,516 | -394 | -1,946 | -1,755 | ' |
Income tax expense from continuing operations | -124 | -60 | -131 | -237 | ' |
Gain on sale of Avinza Product Line before income taxes | 0 | 0 | 0 | 2,588 | ' |
Ligand | ' | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' | ' |
Total assets | 203,296 | ' | 203,296 | ' | 38,408 |
Net revenues from external customers | 6,424 | 4,731 | 18,907 | 14,789 | ' |
Depreciation and amortization expense | -61 | -62 | -194 | -179 | ' |
Write-off of in-process research and development | ' | ' | ' | 0 | ' |
Operating (loss) income | -1,683 | -1,142 | -2,622 | -944 | ' |
Interest expense, net | -1,516 | -394 | -1,946 | -1,755 | ' |
Income tax expense from continuing operations | -115 | -70 | -123 | -301 | ' |
Gain on sale of Avinza Product Line before income taxes | ' | 0 | ' | 2,588 | ' |
CyDex | ' | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' | ' |
Total assets | 68,987 | ' | 68,987 | ' | 66,305 |
Net revenues from external customers | 8,549 | 8,274 | 22,632 | 19,448 | ' |
Depreciation and amortization expense | -601 | -606 | -1,804 | -1,828 | ' |
Write-off of in-process research and development | ' | ' | ' | 480 | ' |
Operating (loss) income | 5,215 | 4,212 | 12,611 | 9,462 | ' |
Interest expense, net | 0 | ' | 0 | 0 | ' |
Income tax expense from continuing operations | -9 | 10 | -8 | 64 | ' |
Gain on sale of Avinza Product Line before income taxes | ' | $0 | ' | $0 | ' |
Financing_Arrangements_Narrati
Financing Arrangements (Narrative) (Details) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | |||||||||
Aug. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 31, 2014 | Dec. 31, 2013 | Aug. 12, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | Aug. 31, 2014 | |
Common Stock | 2019 convertible senior notes | 2019 convertible senior notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | ||||||
2019 convertible senior notes | 2019 convertible senior notes | 2019 convertible senior notes | ||||||||||
Debt Instrument, Redemption, Period One | Debt Instrument, Redemption, Period Two | |||||||||||
D | D | |||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | $245,000,000 | ' | ' |
Aggregate principal amount outstanding | ' | ' | ' | ' | ' | ' | 245,000,000 | 0 | ' | 245,000,000 | ' | ' |
Debt discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.83% | ' | ' |
Initial debt value | ' | 193,631,000 | ' | ' | 0 | ' | 193,631,000 | 0 | ' | 192,500,000 | ' | ' |
Additional final payment on borrowings | ' | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from note after debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 239,300,000 | ' | ' |
Initial conversion rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.0133251 | ' | ' |
Initial conversion price | ' | ' | ' | ' | ' | ' | ' | ' | ' | $75.05 | ' | ' |
Premium percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' |
Share price | ' | ' | ' | ' | ' | $55.59 | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | ' |
Threshold trading days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20 | 5 |
Consecutive trading days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | '10 years |
Percentage of stock price trigger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 130.00% | ' |
Maximum threshold percentage of debt trading price trigger | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% |
Debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,700,000 | ' | ' |
Equity component of convertible debt recorded as a reduction to additional paid-in capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' |
Long-term debt issuance costs | ' | 3,598,000 | ' | ' | 0 | ' | ' | ' | ' | 4,500,000 | ' | ' |
Term of notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Carrying value of the equity component of debt, net of issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,300,000 | ' | ' |
Exercise price | $125.08 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment for convertible bond hedges | ' | 48,143,000 | 0 | ' | ' | ' | ' | ' | 48,143,000 | ' | ' | ' |
Common stock, shares available to be issued | 3,264,643 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise Price of Convertible Bond Hedge | $75.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of warrants | $11,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Financing_Arrangements_Notes_P
Financing Arrangements (Notes Payable) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Notes Payable, Current and Noncurrent [Abstract] | ' | ' |
Net carrying amount | $193,631 | $0 |
Current notes payable | 337 | 9,109 |
Total notes payable | 193,968 | 9,109 |
2019 convertible senior notes | ' | ' |
Notes Payable, Current and Noncurrent [Abstract] | ' | ' |
Principal amount outstanding | 245,000 | 0 |
Unamortized discount | -51,369 | 0 |
Net carrying amount | 193,631 | 0 |
Convertible notes payable, Viking Therapeutics, Inc. | ' | ' |
Notes Payable, Current and Noncurrent [Abstract] | ' | ' |
Current notes payable | 337 | 0 |
Current portion notes payable, 8.64%, due August 1, 2014 | ' | ' |
Notes Payable, Current and Noncurrent [Abstract] | ' | ' |
Current notes payable | 0 | 6,642 |
Maturity Date of Loan | 1-Aug-14 | 1-Aug-14 |
Interest rate | 8.64% | 8.64% |
Current portion notes payable, 8.9012%, due August 1, 2014 | ' | ' |
Notes Payable, Current and Noncurrent [Abstract] | ' | ' |
Current notes payable | $0 | $2,467 |
Maturity Date of Loan | 1-Aug-14 | 1-Aug-14 |
Interest rate | 8.90% | 8.90% |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||
Aug. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Subsequent Event | Stock Options | Stock Options | Restricted Stock | 2002 Stock Incentive Plan | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Employee Stock Purchase Plan | Certain Directors | Employees | Vesting Period One | Vesting Period Two | |||||
Stock Options | Stock Options | Stock Options | 2002 Stock Incentive Plan | 2002 Stock Incentive Plan | 2002 Stock Incentive Plan | ||||||||||||
Stock Options | Stock Options | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award Vesting Period | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | '1 year | '4 years | '6 months | '42 months |
Award Vesting Rights, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | 2.08% |
Award Vesting Rights | ' | ' | ' | ' | ' | '1/8 on the six month anniversary of the date of grant, and 1/48 each month thereafter for 42 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Award Expiration Period | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average grant date fair value of stock options | ' | ' | ' | ' | ' | $47.44 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | ' | ' | ' | ' | ' | $14,700,000 | $3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | 14,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average period in which cost is expected to be recognized | ' | ' | ' | ' | ' | '2 years 3 months 18 days | ' | '1 year 5 months 16 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | 2,300,000 | ' | ' | ' | ' |
Shares available for future option grants | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost, restricted stock | ' | ' | ' | ' | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares allowed to purchase in employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,250 | ' | ' | ' | ' | ' | ' | ' |
Offering period of shares in employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' |
Percentage of purchase price of stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' |
Discount rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | ' | ' | ' | ' | ' |
Shares issued in period | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,230 | 5,016 | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | 8,795,000 | 4,149,000 | ' | ' | ' | ' | ' | 43,515 | 37,000 | ' | ' | ' | ' | ' | ' |
Shares available for future purchases | ' | ' | ' | ' | ' | ' | ' | ' | ' | 77,285 | ' | ' | ' | ' | ' | ' | ' |
Corporate Share Repurchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase, authorized amount | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase, maximum period | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase, shares | ' | 692,800 | 692,800 | ' | 110,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock repurchase, value | ' | $38,500,000 | $38,500,000 | ' | $5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Stock_Opti
Stockholders' Equity (Stock Option Plan Activity) (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Shares | ' | ' |
Balance, Beginning | 1,746,709 | ' |
Granted | 366,184 | ' |
Exercised | -262,820 | ' |
Forfeited | -49,967 | ' |
Cancelled | -4,414 | ' |
Balance, Ending | 1,795,692 | 1,746,709 |
Exercisable | 1,052,706 | ' |
Options vested and expected to vest | 1,795,692 | ' |
Weighted Average Exercise Price | ' | ' |
Balance, Beginning (in usd per share) | $16.79 | ' |
Granted (in usd per share) | $73.81 | ' |
Exercised (in usd per share) | $15.43 | ' |
Forfeited (in usd per share) | $16.69 | ' |
Cancelled (in usd per share) | $80.81 | ' |
Balance, Ending (in usd per share) | $28.46 | $16.79 |
Exercisable | $20 | ' |
Options vested and expected to vest | $28.46 | ' |
Weighted-Average Remaining Contractual Term in Years | ' | ' |
Weighted average remaining contractual term in years | '7 years 5 months 19 days | '7 years 6 months 26 days |
Exercisable | '7 years 5 months 19 days | ' |
Options vested and expected to vest | '6 years 9 months 15 days | ' |
Aggregate Intrinsic Value | ' | ' |
Aggregate intrinsic value | $43,200 | $62,705 |
Exercisable | 30,339 | ' |
Options vested and expected to vest | $43,200 | ' |
Stockholders_Equity_Restricted
Stockholders' Equity (Restricted Stock Activity) (Details) (Restricted Stock, USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Restricted Stock | ' |
Shares: | ' |
Nonvested, Beginning | 115,386 |
Granted | 41,671 |
Vested | -74,312 |
Cancelled | -3,972 |
Nonvested, Ending | 78,773 |
Weighted- Average Grant Date Fair Value | ' |
Nonvested, Beginning (in usd per share) | $21.93 |
Granted (in usd per share) | $72.50 |
Vested (in usd per share) | $25.21 |
Canceled (in usd per share) | $18.42 |
Nonvested, Ending (in usd per share) | $45.77 |