Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 11, 2015 | Jun. 30, 2014 |
Document And Entity Information | |||
Entity Registrant Name | NPS PHARMACEUTICALS INC | ||
Entity Central Index Key | 890465 | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 108,581,155 | ||
Entity Public Float | $3,543,284,815 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $65,565 | $51,204 |
Marketable investment securities | 98,626 | 129,270 |
Accounts receivable | 48,854 | 41,242 |
Inventory | 36,815 | 30,035 |
Prepaid expenses | 5,225 | 5,621 |
Other current assets | 1,360 | 1,380 |
Total current assets | 256,445 | 258,752 |
Property and equipment, net | 5,786 | 4,402 |
Goodwill | 9,429 | 9,429 |
Intangibles, net | 17,505 | 19,301 |
Debt issuance costs, net of accumulated amortization of $601 and $716, respectively | 251 | 338 |
Other long-term assets | 201 | 0 |
Total assets | 289,617 | 292,222 |
Current Liabilities | ||
Accounts payable | 21,810 | 10,919 |
Accrued expenses and other current liabilities | 19,301 | 17,037 |
Accrued research and development expenses | 3,408 | 3,541 |
Accrued interest expense | 862 | 1,620 |
Convertible notes payable | 0 | 16,545 |
Current portion of non-recourse debt | 10,252 | 8,752 |
Total current liabilities | 55,633 | 58,414 |
Non-recourse debt, less current portion | 89,754 | 123,635 |
Other liabilities | 10,405 | 5,283 |
Total liabilities | 155,792 | 187,332 |
Commitments and contingencies (notes 8, 9 and 16) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value. Authorized 5,000,000 shares; issued and outstanding no shares | 0 | 0 |
Common stock, $0.001 par value. Authorized 175,000,000 shares; issued and outstanding 107,103,262 shares and 102,613,780 shares, respectively | 107 | 103 |
Additional paid-in capital | 1,167,385 | 1,127,420 |
Accumulated other comprehensive (loss) income | -2,273 | 56 |
Accumulated deficit | -1,031,394 | -1,022,689 |
Total stockholders' equity | 133,825 | 104,890 |
Total liabilities and stockholders' equity | $289,617 | $292,222 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Assets | ||
Accumulated amortization of debt issuance costs | $601 | $716 |
Stockholders' deficit | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 175,000,000 | 175,000,000 |
Common stock, shares issued | 107,103,262 | 102,613,780 |
Common stock, shares outsatnding | 107,103,262 | 102,613,780 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Product sales, net | $101,195 | $31,752 | $0 |
Royalties | 122,867 | 123,804 | 105,587 |
Sale of royalty rights | 0 | 0 | 25,000 |
License fees | 0 | 36 | 57 |
Total revenues | 224,062 | 155,592 | 130,644 |
Cost of sales | 14,648 | 3,596 | 0 |
Operating expenses: | |||
Research and development | 90,109 | 85,421 | 94,839 |
Selling, general and administrative | 114,255 | 68,070 | 36,929 |
Total operating expenses | 204,364 | 153,491 | 131,768 |
Operating income (loss) | 5,050 | -1,495 | -1,124 |
Other income (expense) | |||
Interest income, net | 406 | 340 | 292 |
Interest expense | -13,728 | -11,938 | -18,198 |
Gain on sale of marketable investment securities, net | 12 | 4 | 4 |
Foreign currency transaction (loss) gain | 22 | -233 | 54 |
Other | 299 | 0 | 237 |
Total other expense, net | -12,989 | -11,827 | -17,611 |
Loss before income tax expense | -7,939 | -13,322 | -18,735 |
Income tax expense | 766 | 182 | 0 |
Net loss | ($8,705) | ($13,504) | ($18,735) |
Net loss per common and potential common share | |||
Basic | ($0.08) | ($0.14) | ($0.22) |
Diluted | ($0.08) | ($0.14) | ($0.22) |
Weighted average common and potential common shares outstanding | |||
Basic | 106,341 | 97,750 | 86,999 |
Diluted | 106,341 | 97,750 | 86,999 |
Conslidated_Statements_of_Comp
Conslidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss | ($8,705) | ($13,504) | ($18,735) |
Unrealized gains (loss) on securities: | |||
Unrealized holding (loss) gain arising during period | -71 | 3 | 107 |
Reclassification for recognized gain on marketable investment securities during the period | 12 | 4 | 4 |
Net unrealized gain (loss) on marketable investment securities | -59 | 7 | 111 |
Foreign currency translation gain (loss) | -2,270 | 44 | -10 |
Other comprehensive (loss) income | -2,329 | 51 | 101 |
Comprehensive loss | ($11,034) | ($13,453) | ($18,634) |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Deficit (USD $) | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit | Total |
In Thousands, except Share data | ||||||
Beginning balances at Dec. 31, 2011 | $86 | $944,344 | ($96) | ($990,450) | ($46,116) | |
Beginning balances, shares at Dec. 31, 2011 | 86,081,167 | |||||
Stock options exercised | 1 | 2,407 | 2,408 | |||
Stock options exercised, shares | 481,058 | |||||
Restricted stock vesting | 149 | 149 | ||||
Restricted stock vesting, shares | 171,271 | |||||
Compensation expense on share-based awards | 7,298 | 7,298 | ||||
Net proceeds from sale of shares | 254 | 254 | ||||
Net proceeds from sale of shares, shares | 45,553 | |||||
Other comprehensive income (loss) | 101 | 101 | ||||
Net loss | -18,735 | -18,735 | ||||
Ending balances at Dec. 31, 2012 | 87 | 954,452 | 5 | -1,009,185 | -54,641 | |
Ending balances, shares at Dec. 31, 2012 | 86,779,049 | |||||
Stock options exercised | 3 | 14,528 | 14,531 | |||
Stock options exercised, shares | 2,521,764 | |||||
Restricted stock vesting | 0 | 339 | 339 | |||
Restricted stock vesting, shares | 211,389 | |||||
Compensation expense on share-based awards | 8,480 | 8,480 | ||||
Excess tax benefit from stock options | 178 | 178 | ||||
Stock issued in connection with the Takeda Termination and Transition agreement | 6 | 55,397 | 55,403 | |||
Stock issued in connection with the Takeda Termination and Transition agreement, shares | 6,128,641 | |||||
Net proceeds from sale of shares | 7 | 94,046 | 94,053 | |||
Net proceeds from sale of shares, shares | 6,972,937 | |||||
Other comprehensive income (loss) | 51 | 51 | ||||
Net loss | -13,504 | -13,504 | ||||
Ending balances at Dec. 31, 2013 | 103 | 1,127,420 | 56 | -1,022,689 | 104,890 | |
Ending balances, shares at Dec. 31, 2013 | 102,613,780 | |||||
Stock options exercised | 1 | 9,317 | 9,318 | |||
Stock options exercised, shares | 1,245,034 | -1,245,000 | ||||
Restricted stock vesting | 0 | 3,109 | 3,109 | |||
Restricted stock vesting, shares | 162,877 | |||||
Compensation expense on share-based awards | 9,740 | 9,740 | ||||
Excess tax benefit from stock options | 312 | 312 | ||||
Net proceeds from sale of shares | 0 | 955 | 955 | |||
Net proceeds from sale of shares, shares | 40,120 | |||||
Conversion of 5.75% convertible notes | 3 | 16,532 | 16,535 | |||
Conversion of 5.75% convertible notes, shares | 3,041,451 | |||||
Other comprehensive income (loss) | -2,329 | -2,329 | ||||
Net loss | -8,705 | -8,705 | ||||
Ending balances at Dec. 31, 2014 | $107 | $1,167,385 | ($2,273) | ($1,031,394) | $133,825 | |
Ending balances, shares at Dec. 31, 2014 | 107,103,262 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Deficit (Parenthetical) | Dec. 31, 2014 |
Statement of Stockholders' Equity [Abstract] | |
Conversion of 5.75% convertible notes | 5.75% |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($8,705) | ($13,504) | ($18,735) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 3,335 | 2,630 | 1,083 |
Accretion of premium (discount) on marketable investment securities | 3,206 | 2,956 | 2,005 |
Shares issued for payment of services | 0 | 549 | 0 |
Non-cash interest expense | 7,278 | 10,982 | 17,239 |
Non-cash royalties | -40,304 | -39,804 | -55,993 |
Realized gain on sale of marketable investment securities | -12 | -4 | -4 |
Loss on disposal of equipment | 0 | 41 | 0 |
Compensation expense on share-based awards | 15,003 | 9,437 | 7,548 |
(Increase) decrease in operating assets: | |||
Accounts receivable | -7,713 | -11,324 | -16,010 |
Inventory | -898 | 4,265 | 0 |
Prepaid expenses, other current assets and other assets | 138 | -466 | 1,803 |
(Decrease) increase in operating liabilities: | |||
Accounts payable and accrued expenses | 6,839 | 11,257 | 1,321 |
Other liabilities | 5,123 | -1,331 | -1,249 |
Net cash used in operating activities | -16,710 | -24,316 | -60,992 |
Cash flows from investing activities: | |||
Sales of marketable investment securities | 11,209 | 11,850 | 7,628 |
Maturities of marketable investment securities | 123,458 | 96,021 | 111,879 |
Purchases of marketable investment securities | -107,276 | -156,842 | -124,809 |
Acquisitions of property and equipment | -3,093 | -1,142 | -1,187 |
Net cash provided by (used in) investing activities | 24,298 | -50,113 | -6,489 |
Cash flows from financing activities: | |||
Excess tax benefit from stock options | 312 | 178 | 0 |
Net proceeds from the sale of common stock and exercise of stock options | 8,118 | 107,940 | 2,561 |
Net cash provided by financing activities | 8,430 | 108,118 | 2,561 |
Effect of exchange rate changes on cash | -1,657 | 44 | -10 |
Net increase (decrease) in cash and cash equivalents | 14,361 | 33,733 | -64,930 |
Cash and cash equivalents at beginning of period | 51,204 | 17,471 | 82,401 |
Cash and cash equivalents at end of period | 65,565 | 51,204 | 17,471 |
Supplemental Disclosures of Cash Flow Information | |||
Cash paid for interest | 256 | 952 | 954 |
Cash paid for income taxes | 270 | 4 | 0 |
Supplemental Disclosure of Non-cash Investing and Financing Activities | |||
6.1 million shares of NPS common stock issued in connection with the Takeda Termination and Transition agreement, see note 10 | 0 | 55,403 | 0 |
Unrealized gains (losses) on marketable investment securities | -59 | 7 | 111 |
Accrued acquisition of equipment | 293 | 428 | 96 |
Accrued acquisition of inventory | 7,279 | 602 | 0 |
Noncash principal payments | 32,381 | 26,915 | 52,050 |
Conversion of 5.75% convertible notes | $16,535 | $0 | $0 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows (Parenthetical) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement of Cash Flows [Abstract] | |||
6.1 million shares of NPS common stock issued | 0 | 6.1 | 0 |
Conversion of 5.75% convertible notes | 5.75% |
Organization_Summary_of_Accoun
Organization Summary of Accounting Policies - Note 1 | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Organization and Summary of Significant Accounting Policies Disclosure | |||||||||||||
Organization and Summary of Significant Accounting Policies | (1) Organization and Summary of Significant Accounting Policies | ||||||||||||
The consolidated financial statements are comprised of the financial statements of NPS Pharmaceuticals, Inc. and its subsidiaries, collectively referred to as the Company or NPS Pharma. NPS Pharma is a global biopharmaceutical company pioneering and delivering first-in or best-in disease therapies that transform the lives of patients with rare diseases. The Company's marketed product, Gattex® 0.05 mg/kg/d (teduglutide [rDNA origin]) for injection, for subcutaneous use was approved by the U.S. Food and Drug Administration ("FDA") in December 2012 for the treatment of adult patients with Short Bowel Syndrome ("SBS") who are dependent on parenteral support and was approved by the European Union ("EU"), in August 2012, for the treatment of adult patients with SBS; patients should be stable following a period of intestinal adaptation after surgery. The Company launched Revestive in Germany and Sweden in 2014 and plans to launch in other EU countries in early 2015. In January 2015, the FDA approved the Company's second product, Natpara® (parathyroid hormone) for Injection as an adjunct to calcium and vitamin D to control hypocalcemia in patients with hypoparathyroidism, a rare endocrine disorder characterized by insufficient levels of parathyroid hormone or PTH. Natpara, a bioengineered replica of human PTH, is expected to be available in the U.S. in the second quarter of 2015. | |||||||||||||
In addition to the Company's proprietary clinical portfolio, it has a number of royalty-based clinical and commercial stage programs. | |||||||||||||
Since inception, the Company's principal activities have been performing research and development, raising capital, establishing research and license agreements and effecting the commercial launch of Gattex in the U.S. All monetary amounts are reported in U.S. dollars unless specified otherwise. | |||||||||||||
Subsequent Events | |||||||||||||
The Company has evaluated all events and transactions since December 31, 2014. The Company did not have any material recognized subsequent events but did have the following non-recognized subsequent event: | |||||||||||||
Merger Agreement | |||||||||||||
On January 11, 2015, the Company entered into an Agreement and Plan of Merger (Merger Agreement) with Shire Pharmaceutical Holdings Ireland Limited (Parent), a company incorporated in Ireland and a wholly owned subsidiary of Shire plc (Shire), a company incorporated in Jersey; Knight Newco 2, Inc. (Purchaser), a Delaware corporation and wholly owned subsidiary of Parent; and, solely for purposes of Section 12.14 of the Merger Agreement, Shire. Pursuant to the Merger Agreement, Purchaser has commenced a cash tender offer for all of the outstanding shares of the Company's common stock, upon the terms and subject to the conditions of the Merger Agreement. Consummation of the tender offer is subject to customary closing conditions, as set forth in the Merger Agreement. As soon as practicable following the consummation of the tender offer, and subject to the satisfaction or waiver of certain conditions set forth in the Merger Agreement, Purchaser will merge with and into the Company pursuant to the provisions of section 251(h) of the Delaware General Corporation Law, with no stockholder vote required to consummate the merger, and the Company will survive as a wholly owned subsidiary of Parent. | |||||||||||||
The Merger Agreement contains representations, warranties and covenants of the parties customary for transactions of this type. Until the earlier of the termination of the Merger Agreement and the consummation of the merger, the Company has agreed to operate its business and the business of its subsidiaries in the ordinary course and has agreed to certain other operating covenants, as set forth more fully in the Merger Agreement. The Company has agreed not to solicit alternative acquisition proposals. However, the Company may, subject to the terms and conditions set forth in the Merger Agreement, furnish information to, and engage in discussions and negotiations with, a third party that makes an unsolicited acquisition proposal that the Board reasonably believes is or could reasonably be expected to lead to a superior proposal. Under certain circumstances and upon compliance with certain notice and other specified conditions set forth in the Merger Agreement, the Company may terminate the Merger Agreement to accept a superior proposal. | |||||||||||||
The Merger Agreement contains certain termination rights for both Parent and the Company and further provides that, upon termination of the Merger Agreement under certain circumstances relating to competing acquisition proposals, including if the Company terminates the Merger Agreement to accept a superior proposal, or where our Board of Directors changes its recommendation in favor of the transaction, the Company may be required to pay Parent a termination fee of $155,939,696. | |||||||||||||
Additional information about the merger is set forth in the Company's filings with the U.S. Securities and Exchange Commission (SEC). | |||||||||||||
Significant Accounting Policies | |||||||||||||
The following significant accounting policies are followed by the Company in preparing its consolidated financial statements: | |||||||||||||
(a) Cash Equivalents | |||||||||||||
The Company considers all highly liquid investments with maturities at the date of purchase of three months or less to be cash equivalents. Cash equivalents at December 31, 2014 and 2013 are carried at cost and consist of commercial paper, money market funds, debt securities and other highly liquid instruments of approximately $42.3 million and $40.6 million, respectively. At December 31, 2014 and 2013, the book value of cash equivalents approximates fair value. | |||||||||||||
(b) Marketable Investment Securities | |||||||||||||
The Company classifies its marketable investment securities as available-for-sale and are recorded at fair value. Unrealized holding gains and losses on available-for-sale securities, net of the related tax effect, are excluded from earnings and are reported as a separate component of stockholders' deficit until realized. A decline in the fair value below cost of available-for-sale securities that is deemed other than temporary is charged to results of operations, resulting in the establishment of a new cost basis for the security. Premiums and discounts are amortized or accreted into the cost basis over the life of the related security as adjustments to the yield using the effective-interest method. Interest income is recognized when earned. Realized gains and losses from the sale of marketable investment securities are based on the specific identification method and are included in results of operations and are determined on the specific- identification basis. | |||||||||||||
The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized loss. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive income. | |||||||||||||
For available-for-sale debt securities with unrealized losses, management performs an analysis to assess whether the Company intends to sell or whether it would more likely than not be required to sell the security before the expected recovery of the amortized cost basis. Where the Company intends to sell a security, or where it may be more likely than not be required to sell the security before the expected recovery of the amortized cost basis, the security's decline in fair value is deemed to be other-than-temporary and the full amount of the unrealized loss is recorded within earnings as an impairment loss. | |||||||||||||
Regardless of the Company's intent to sell a security, the Company performs additional analysis on all securities with unrealized losses to evaluate losses associated with the creditworthiness of the security. Credit losses are identified where the Company does not expect to receive cash flows sufficient to recover the amortized cost basis of a security. | |||||||||||||
(c) Trade Accounts Receivable | |||||||||||||
Trade accounts receivable are recorded for research and development support performed, for license fees, milestone payments and royalty income earned, and for product sales, and do not bear interest. The Company determines an allowance for doubtful accounts based on assessed customers' ability to pay, historical write-off experience, and economic trends. Such allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable. The Company reviews its allowance for doubtful accounts monthly. The Company did not record any bad debt expense for the years ended December 31, 2014 2013 and 2012. At December 31, 2014 and 2013 the allowance for bad debts was zero. | |||||||||||||
(d) Inventory | |||||||||||||
Inventories are stated at the lower of cost or estimated realizable value. The Company determines the cost of inventory using the first-in, first-out, or FIFO, method. The Company capitalizes inventory costs associated with the Company's products after regulatory approval when, based on management's judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value, and writes-down such inventories as appropriate. In addition, the Company's products are subject to strict quality control and monitoring which the Company performs throughout the manufacturing process. If certain batches or units of product no longer meet quality specifications or become obsolete due to expiration, the Company records a charge to cost of sales sold to write down such unmarketable inventory to zero. | |||||||||||||
(e) Property and Equipment | |||||||||||||
Property and equipment is stated at cost. Depreciation and amortization of property and equipment is calculated on the straight-line method over estimated useful lives of 3 to 5 years. Leasehold improvements are amortized using the straight-line method over the shorter of the life of the asset or remainder of the lease term. | |||||||||||||
(f) Goodwill and Intangibles | |||||||||||||
Goodwill represents the excess of costs over fair value of assets of businesses acquired. Intangibles represents acquired assets and are measured at fair value as of the date of acquisition. Goodwill and indefinite lived intangible assets acquired in a purchase or business combination and determined to have an indefinite useful life are not amortized, but instead tested for impairment at least annually or sooner if circumstances indicate that impairment might have occurred. Intangible assets with finite useful lives are amortized to their estimated residual values over their estimated useful lives and reviewed for impairment if certain events occur. As a result of the annual impairment test performed by management at year-end, it was noted that fair value significantly exceeded the carrying value of the reporting unit. The company considers itself a single reportable segment and reporting unit. | |||||||||||||
(g) Income Taxes | |||||||||||||
The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect for years in which the temporary differences are expected to reverse. The Company establishes a valuation allowance when it believes it is more likely than not that deferred tax assets will not be realized. | |||||||||||||
The Company determines the need for a valuation allowance by assessing the probability of realizing deferred tax assets, taking into consideration all available positive and negative evidence, including historical operating results, expectations of future taxable income, carryforward periods available to the Company for tax reporting purposes, various income tax strategies and other relevant factors. Significant judgment is required in making this assessment and to the extent future expectations change, the Company would have to assess the recoverability of its deferred tax assets at that time. At December 31, 2014 and 2013, the Company maintained a full valuation allowance on its deferred tax assets. | |||||||||||||
At any one time the Company's tax returns for numerous tax years are subject to examination by U.S. federal, state and foreign taxing jurisdictions. The impact of an uncertain tax position taken or expected to be taken on an income tax return must be recognized in the financial statements at the largest amount that is more likely than not to be sustained. An uncertain income tax position will not be recognized in the financial statements unless it is more likely than not to be sustained. The Company adjusts these tax liabilities, as well as the related interest and penalties, based on the latest facts and circumstances, including recently enacted tax law changes, published rulings, court cases, and outcomes of tax audits. While the Company does not expect material changes, it is possible that its actual tax liability will differ from its established tax liabilities for unrecognized tax benefits, and the Company's effective tax rate may be materially impacted. The Company accounts for interest and penalties related to uncertain tax positions as a component of Income tax expense. | |||||||||||||
For further information, refer to Note 13, Income Taxes. | |||||||||||||
(h) Revenue Recognition | |||||||||||||
The Company analyzes its revenue arrangements to determine whether the elements should be separated and accounted for individually or as a single unit of accounting. Allocation of revenue to individual elements which qualify for separate accounting is based on the estimated fair value of the respective elements. The Company earns revenue from license fees, milestone payments, royalty payments and product sales. | |||||||||||||
License fees. The Company defers and recognizes revenue from up-front nonrefundable license fees on a straight-line basis, unless another pattern is apparent, over the period wherein the Company has continuing involvement in the research and development project. The Company recognizes revenue from up-front nonrefundable license fees upon receipt when there is no continuing involvement in the research and development project. | |||||||||||||
Milestone payments. The Company recognizes revenue from its milestone payments as agreed-upon events representing the achievement of substantive steps in the development process are achieved and where the amount of the milestone payment approximates the fair value of achieving the milestone. | |||||||||||||
Royalties. Royalties from licensees are based on third-party sales of licensed products and are recorded in accordance with contract terms when sales results are reliably measurable and collectability is reasonably assured. | |||||||||||||
Product sales. The Company recognizes revenue from product sales when persuasive evidence of an arrangement exists, title to product and associated risk of loss has passed to the customer, the price is fixed or determinable, collection from the customer is reasonably assured, the Company has no further performance obligations, and returns can be reasonably estimated. Currently, product sales represent U.S. sales of Gattex, which was approved by the FDA in December 2012 and European sales of Revestive, which was approved in the EU in August 2012. | |||||||||||||
The Company's customers are primarily comprised of specialty pharmacies, distributors and other health care providers. In some cases, the Company may also sell Gattex or Revestive to governments and government agencies. | |||||||||||||
Because of factors such as the pricing of Gattex and Revestive, the limited number of patients and the lack of contractual return rights, Gattex and Revestive customers often carry limited inventory. The Company also monitors inventory within its sales channels to determine whether deferrals are appropriate based on factors such as inventory levels compared to demand, contractual terms and financial strength of distributors. | |||||||||||||
In addition to sales in countries where Gattex and Revestive are commercially available, the Company has also recorded revenue on sales for patients receiving Gattex or Revestive through named-patient programs. The relevant authorities or institutions in those countries have agreed to reimburse for product sold on a named-patient basis where Gattex or Revestive have not received final approval for commercial sale. | |||||||||||||
The Company records estimated rebates payable under governmental programs, including Medicaid in the U.S. and other programs outside the U.S., as a reduction of revenue at the time of product sale. The Company's calculations related to these rebate accruals require analysis of historical claim patterns and estimates of customer mix to determine which sales will be subject to rebates and the amount of such rebates. The Company updates its estimates and assumptions each period and record any necessary adjustments, which may have an impact on revenue in the period in which the adjustment is made. Generally, the length of time between product sale and the processing and reporting of the rebates is three to six months. | |||||||||||||
All U.S. prescriptions for Gattex, received directly by NPS from the patient's physician, are handled through NPS Advantage, the Company's data management and patient support program, which investigates and determines the patient's insurance coverage for Gattex. Once coverage is confirmed, NPS forwards the prescription to the specialty pharmacy (SP) who then re-confirms the coverage and dispenses Gattex to the patient. The Company sells Gattex directly to a limited number of SPs and a specialty distributor (SD) who dispense product to patients, hospitals or U.S. government entities. The Company invoices and records revenue when the SPs or SD receives Gattex from the Company's third-party logistics warehouse. The Company's SPs order product to fill prescriptions that have been approved for reimbursement by payers. | |||||||||||||
Specific considerations for Gattex sold in the U.S. are as follows: | |||||||||||||
Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements or legal requirements with public sector (e.g. Medicaid) benefit providers. The allowance for rebates is based on statutory discount rates and expected utilization. The Company's estimate for expected utilization for rebates is based in part on actual and pending prescriptions for which it has validated the insurance benefits. | |||||||||||||
Chargebacks: Chargebacks are discounts that occur when contracted customers purchase from the Company's SPs or SD. Contracted customers, which currently consist primarily of Public Health Service institutions and Federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The Company's SPs or SD, in turn, charge back the difference between the price initially paid by the SP or SD and the discounted price paid to the SP or SD by the customer. The allowance for chargebacks is based on actual and expected sales to the SPs and SD. | |||||||||||||
SP and SD Fees and Deductions: The Company's SPs and its SD are offered prompt payment discounts and are paid fees for their services and data. | |||||||||||||
Product returns: The Company will accept product that is damaged or defective when shipped directly to the SP or SD from the Company's third-party logistics provider or for product that is returned with more than two (2) months remaining until the expiration date from its SP or SD only. The Company will not provide any credit for product that has been labeled for or sent to a patient. Product returned is generally not resalable as the product must be temperature-controlled throughout the supply chain and such control is difficult to confirm. The Company makes a reasonable estimate of future potential product returns based on the number of prescriptions that have been approved for reimbursement and sent to an SP with each corresponding shipment of Gattex that has been sent to each respective SP. The Company also has the visibility to see current inventory levels and the current shelf life at the SPs and SD and has the ability to control the amount of product that is sold to the SPs and SD. At the end of each reporting period, the Company determines a product returns reserve by evaluating the units held in its distribution channel, the underlying demand for such units and the risk of potential product returns. | |||||||||||||
The following table summarizes the provisions, and credits/payments, for government rebates and chargebacks, distribution-related fees, and returns and other sales-related deductions (in thousands): | |||||||||||||
Returns and | |||||||||||||
Rebates and | Distribution- | Other Sales- | |||||||||||
Chargebacks | Related Fees | Related Deductions | Total | ||||||||||
Balance as of December 31, 2012 | $ | - | $ | - | $ | - | $ | - | |||||
Provision related to current period sales | 1,375 | 332 | 1,098 | 2,805 | |||||||||
Credits/payments | -262 | -185 | -857 | -1,304 | |||||||||
Balance as of December 31, 2013 | 1,113 | 147 | 241 | 1,501 | |||||||||
Provision related to current period sales | 3,929 | 461 | 2,217 | 6,607 | |||||||||
Credits/payments | -3,398 | -514 | -2,208 | -6,120 | |||||||||
Balance as of December 31, 2014 | $ | 1,644 | $ | 94 | $ | 250 | $ | 1,988 | |||||
Product sales are recorded net of accruals for estimated rebates, chargebacks, discounts, and other deductions (collectively, sales deductions) and returns. With the exception of allowances for prompt payment, allowances for sales deductions and returns are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. | |||||||||||||
(i) Research and Development Expenses | |||||||||||||
Research and development expenses, are expensed as incurred and are primarily comprised of the following types of costs incurred in performing research and development activities: clinical trial and related clinical manufacturing costs, contract services, outside costs, salaries and benefits, overhead and occupancy costs. | |||||||||||||
The Company analyzes how to characterize payments under collaborative agreements based on the relevant facts and circumstances related to each agreement. | |||||||||||||
(j) Income (Loss) per Common Share | |||||||||||||
Basic income (loss) per common share is the amount of income (loss) for the period divided by the sum of the weighted average shares of common stock outstanding during the reporting period. Diluted income (loss) per common share is the amount of income (loss) for the period plus interest expense on convertible debt divided by the sum of weighted average shares of common stock outstanding during the reporting period and weighted average share that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares. | |||||||||||||
(k) Share-Based Compensation | |||||||||||||
The Company accounts for share-based compensation in accordance with Financial Accounting Standards Board's Accounting Standards Codification ("ASC") 718, "Compensation - Stock Compensation" (ASC 718). Compensation cost is recorded based on the grant date fair value estimated using the Black-Scholes option-pricing for awards which vest based on a service or performance condition or the Monte Carlo simulation model for awards with market conditions. The Company recognizes compensation cost for awards on a straight-line basis over the requisite service period for the entire award, except for performance condition options where vesting is subject to the Company achieving certain performance criteria. Compensation costs for performance condition options will be recognized when the achievement of the performance criteria is probable. | |||||||||||||
(l) Use of Estimates | |||||||||||||
Management of the Company has made estimates and assumptions relating to reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP). Actual results could differ from those estimates. | |||||||||||||
(m) Principles of Consolidation | |||||||||||||
The consolidated financial statements include the accounts of the Company, all subsidiaries in which it owns a majority voting interest including a variable interest entity in which the Company is the primary beneficiary. The Company eliminates all intercompany accounts and transactions in consolidation. | |||||||||||||
(n) Accounting for Impairment of Long-Lived Assets | |||||||||||||
As described in (f), goodwill and indefinite lived intangible assets are tested for impairment at least annually. The Company reviews all other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset to future net cash flows (undiscounted) 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. Assets held for sale are reported at the lower of the carrying amount, or fair value, less costs to sell. | |||||||||||||
(o) Foreign Currency Translation | |||||||||||||
Assets and liabilities of foreign operations with non-U.S. dollar functional currencies are translated into U.S. dollars at the period end exchange rates. Income, expenses and cash flows are translated at the average exchange rates prevailing during the period. Adjustments resulting from translation are reported as a separate component of accumulated other comprehensive loss in stockholders' deficit. Certain transactions are denominated in currencies other than the functional currency. Transaction gains and losses are included in other income (expense) for the period in which the transaction occurs. | |||||||||||||
(p) Comprehensive Income (Loss) | |||||||||||||
Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting stockholders' equity (deficit) that, under U.S. GAAP, are excluded from net income (loss). For the Company, these consist of net unrealized gains or losses on marketable investment securities and foreign currency translation gains and losses. Accumulated other comprehensive income (loss) as of December 31, 2014 and 2013 consists of accumulated net unrealized gains on marketable investment securities of $74,000 and unrealized losses of $15,000, respectively, and unrealized foreign currency translation losses of $2.2 million and unrealized gains of $71,000, respectively. | |||||||||||||
(q) Concentration of Suppliers | |||||||||||||
The Company has entered into agreements with contract manufacturers to manufacture clinical and commercial supplies of its product candidates. In some instances, the Company is dependent upon a single supplier. The loss of one of these suppliers could have a material adverse effect upon the Company's operations. | |||||||||||||
(r) Leases | |||||||||||||
The Company leases its facilities under terms of individual lease agreements which provides for rent holidays and escalating payments. Rent under operating leases is recognized on a straight-line basis beginning with lease commencement through the end of the lease term. The Company records deferred lease payments in accrued expenses and other current liabilities and in other long-term liabilities. | |||||||||||||
(s) Deferred Financing Costs | |||||||||||||
Costs incurred in connection with the issuance of the Sensipar Notes and under the agreements with DRI, in which the Company sold to DRI its right to receive future royalty payments arising from sales of REGPARA under its license agreement with Kyowa Hakko Kirin and a future royalty in the mid-single digits from the sales of PTH, are amortized using the effective-interest method over the same period and in the same manner as the related debt. The amortization of deferred financing costs is included in Interest expense in the Consolidated Statements of Operations. | |||||||||||||
(t) Deferred License Fees | |||||||||||||
Cost of license fees are deferred if they are a direct cost of a revenue generating activity and that revenue is being deferred. These deferred costs are amortized over the same period and in the same manner as the related deferred revenue. The amortization of deferred license fees is included in Cost of license fees in the Consolidated Statements of Operations. | |||||||||||||
Collaborative_and_License_Agre
Collaborative and License Agreements - Note 2 | 12 Months Ended |
Dec. 31, 2014 | |
Collaborative and License Agreements Disclosure | |
Collaborative and License Agreements - Note 2 | (2) Collaborative and License Agreements |
The Company has granted exclusive development, commercialization, and marketing rights under certain of the below-described collaborative research, development, and license agreements, the success of each program is dependent upon the efforts of the licensees. Each of the respective agreements may be terminated early. If any of the licensees terminates an agreement, such termination may have a material adverse effect on the Company's operations. | |
Following is a description of significant collaborations and license agreements: | |
(a) Amgen Inc. | |
In 1996, the Company licensed worldwide rights (with the exception of China, Japan, North and South Korea, and Taiwan) to Amgen, Inc. to develop and commercialize cinacalcet HCl for the treatment of hyperparathyroidism and indications other than osteoporosis and related bone metabolism disorders. Amgen is incurring all costs of developing and commercializing these products. Amgen paid the Company a $10.0 million nonrefundable license fee and agreed to pay up to $400,000 per year through 2000 in development support, potential additional development milestone payments totaling $26.0 million, and royalties on any future product sales. Such $26.0 million of potential additional milestone payments includes the Company's potential to earn a $5.0 million milestone payment upon the FDA approval to sell a compound under the license agreement having a different structural formula from cinacalcet HC1. The future milestone is tied to future events outside the Company's control. The Company believes these are substantive in nature and there is no assurance that they will be achieved. Through December 31, 2014, Amgen has paid the Company $21.0 million in milestone payments, of which none were recognized during 2014, 2013, and 2012, respectively. The Company recognized royalties from product sales of $111.9 million, $112.9 million and $89.3 million in 2014, 2013 and 2012, respectively, under the contract. | |
The Company receives a royalty from Amgen that represents a percentage in the high single digits to low double digits of Amgen's sales of cinacalcet HCl. In June 2012, we amended our agreement with Amgen and received a one-time non-refundable $25.0 million payment in July 2012 in exchange for our rights to receive royalties under the license agreement that are earned after December 31, 2018. Amgen has a right to terminate upon 90 days written notice to the Company, and either party may terminate upon material default by the other party subject to a right to cure such default. | |
(b) GlaxoSmithKline | |
In 1993, the Company entered into an agreement with GlaxoSmithKline (GSK) to collaborate on the research, development and commercialization of calcium receptor active compounds to treat osteoporosis and other bone metabolism disorders, excluding hyperparathyroidism. Under the terms of the agreement, the Company may receive milestone payments and royalties from any product sales under the license and a share of the profits from co-promoted products. To date, GSK has paid the Company $12.0 million in milestone payments, of which none were recognized during 2014, 2013 or 2012. The Company granted GSK the exclusive license to develop and market worldwide compounds described under the GSK agreement, subject to the Company's right to co-promote in the United States. Once compounds have been selected for development, GSK has agreed to conduct and fund all development of such products, including all human clinical trials and regulatory submissions. In December 2006, the Company entered into an amendment to the agreement with GSK that permits GSK to develop additional compounds. In consideration for this amendment, the Company received a $3.0 million fee during 2006. The Company recognized no revenue related to its agreement with GSK in 2014, 2013 or 2012. | |
The Company is entitled to receive a royalty from GSK that represents a percentage in the high single digits or low double digits, depending on sales, of such compounds should GSK commercialize any such compounds. The license agreement with GSK is effective for the longer of ten years from first marketing in the last country in the territory or the expiration of the last patent. GSK may terminate the agreement on 30-day written notice on a country-by-country basis if it reasonably determines that any compound developed under the agreement is not worth continued development. NPS may terminate the agreement on 90-day written notice if no compound is under development or commercialization for a period of twelve consecutive months, subject to GSK showing that it has a compound under development or commercialization or that it intends to enter development within six months. Either party may terminate upon material default by the other party subject to a right to cure such default. Upon termination, the rights and licenses the Company granted GSK revert to the Company. | |
In August 2011, the Company formed a new agreement with GSK which terminated and replaced the 1993 agreement. Under the agreement, GSK assigned to NPS the investigational new drug filings for two Phase 1 calcilytic compounds, NPSP790 and NPSP795. The Company believes calcilytics may have clinical application in treating rare disorders involving increased calcium receptor activity, such as autosomal dominant hypocalcemia with hypercalciuria (ADHH). The new agreement also expands GSK's licensed field of research for Ronacaleret to include stem cell transplants, in addition to osteoporosis and other bone disorders. Under the terms of the agreement, the Company has the potential to earn up to $11.5 million in future milestone payments upon the achievement of certain pre-specified product development and sales-based milestones plus royalties on product sales. The Company has the potential to earn the next product development milestone of $1.0 million upon the decision by GSK to continue development in the first indication following the proof of concept trial. The remaining milestones vary by additional indications, with $7.5 million relating to successful proof of concept studies and acceptance of regulatory filings, and $4.0 million relating to the first commercial sale of each indication. The future milestones are tied to future events outside the Company's control. The Company believes these are substantive in nature and there is no assurance that they will be achieved. | |
(c) Kyowa Hakko Kirin | |
In 1995, the Company entered into an agreement with the pharmaceutical division of Kyowa Hakko Kirin Co. Ltd, formerly Kirin Brewery Company Limited, to develop and commercialize compounds for the treatment of hyperparathyroidism in Japan, China, North Korea, South Korea and Taiwan. Kyowa Hakko Kirin paid the Company a $5.0 million license fee during 2005 and agreed to pay up to $7.0 million in research support, potential additional milestone payments totaling $13.0 million and royalties on product sales. Kyowa Hakko Kirin is incurring all costs of developing and commercializing products. Any payments subsequent to June 2000 represent milestone and royalty payments. Through December 31, 2014, Kyowa Hakko Kirin has paid the Company $7.0 million in research support and $13.0 million in milestone payments none of which were recognized during 2014, 2013 or 2012. In October 2007, Kyowa Hakko Kirin received approval from the Japanese Pharmaceuticals and Medical Devices Agency to market cinacalcet HCl in Japan for the treatment of patients with secondary hyperparathyroidism during maintenance dialysis. The parties participate in a collaborative research program utilizing the Company's parathyroid calcium receptor technology. Under the Company's agreement with Kyowa Hakko Kirin, the Company recognized no milestone and license fee revenue in 2014, 2013 and 2012, respectively, and royalty revenue of $8.5 million in 2014, $8.0 million in 2013 and $8.7 million in 2012. | |
The Company receives a royalty from Kyowa Hakko Kirin that represents a percentage in the single digits of sales. The agreement with Kyowa Hakko Kirin is effective until expiration of the last patent. Kyowa Hakko Kirin has a right to terminate upon 90 days written notice to the Company, and either party may terminate upon material default by the other party subject to a right to cure such default. Kyowa Hakko Kirin also has the right to terminate the agreement with respect to individual countries based upon a reasonable determination by if that continued development or marketing of a compound is not justified in such country, subject to providing 60 days notice and the Company's right to delay termination for up to 90 days. Certain agreements between the Company and DRI Capital Inc., or DRI (formerly Drug Royalty L.P.3) limit the Company's right to terminate this license (see note 8). | |
(d) Takeda GmbH | |
On March 18, 2013, the Company entered into a Termination and Transition Agreement, with Takeda GmbH, whereby the 2007 teduglutide and 2004 Preotact agreements were terminated. (see note 10) | |
Revenues from Takeda related to the Preotact agreement, were $0, $0 and $4.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |
(e) Janssen Pharmaceuticals, Inc. | |
In December 2006, the Company entered into an agreement with Janssen Pharmaceuticals, Inc. formerly known as Ortho-McNeil Pharmaceutical (Janssen) pertaining to certain NPS patents. Janssen paid the Company an $8.0 million fee and agreed to pay royalties on sales of licensed products. NPS will not incur any development or commercialization costs for these products. The Company is responsible for patent prosecution and maintenance of the related patents. The Company may terminate the agreement if Janssen fails to make a payment and does not cure that default within 30 days, or if it does not cure any other default within sixty days of notice. Janssen may terminate the agreement on 60 days written notice for material breach if NPS has not cured the breach by that time or on 60 days written notice. Termination does not affect any previously-matured payment obligations. In November 2008, the U.S. Food and Drug Administration (FDA) approved Nucynta (tapentadol) hydrochloride immediate release (IR) tablets for the relief of moderate to severe acute pain. This compound is covered under our agreement and Janssen is required to pay the Company a royalty on the product's sales. Nucynta is a novel investigational, centrally acting oral analgesic, which was launched in the second quarter of 2009. The Company recognized revenue of $2.6 million, $2.9 million and $2.8 million in 2014, 2013 and 2012, respectively. | |
(f) Hoffman-La Roche Inc. and F. Hoffmann-La Roche Ltd. | |
In December 2008, the Company entered into an agreement with Hoffman-La Roche Inc. and F. Hoffmann-La Roche Ltd. (Roche), under which the Company granted the Roche entities a non-exclusive license (with the right to grant sublicenses) to develop, make, import, use of for sale or sell products covered by patents relating to modulation of NMDA receptor activity using glycine uptake antagonists. In return Roche paid the Company an upfront licensing fee of $2.0 million, and agreed to make additional payments for the achievement of certain regulatory milestones. Through December 31, 2014, Roche has paid the Company $250,000 in milestone payments. Further, Roche agreed to pay royalties on sales of licensed products, if any. Either party may terminate the agreement on 30 days written notice due to a material breach by the other, or in the case of the other party's insolvency. Amounts due prior to termination will remain due thereafter. NPS will not incur any development or commercialization costs for these products. The Company has not recognized revenue in 2014, 2013 and 2012, respectively, as the Company had no continuing involvement in the arrangement. | |
(g) In-License and Purchase Agreements | |
Depending on the commercial success of certain products, the Company may be required to pay license fees or royalties. Additionally, the Company is required to pay royalties on sales of cinacalcet HCl up to a cumulative maximum of $15.0 million. To date, $15.0 million has been accrued for related royalties payable on sales of cinacalcet HC1, of which, $10.4 million has been paid. Annual payments due are limited to a maximum of $1.0 million. Accruals of $3.6 million and $1.0 million at December 31, 2014 are recorded in other liabilities and accrued expenses and other current liabilities, respectively. | |
Income_Loss_Per_Common_Share_N
Income (Loss) Per Common Share - Note 3 | 12 Months Ended |
Dec. 31, 2014 | |
Income (Loss) Per Common Share | (3) Income (Loss) Per Common Share |
Basic income (loss) per common share is the amount of income (loss) for the period divided by the weighted average shares of common stock outstanding during the reporting period. Diluted income (loss) per common share is the amount of income (loss) for the period plus interest expense on convertible debt divided by the sum of weighted average shares of common stock outstanding during the reporting period and weighted average shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares. | |
Potential common shares of approximately 5.6 million, 7.2 million and 8.0 million during the years ended December 31, 2014, 2013, and 2012, respectively, that could potentially dilute basic income (loss) per common share in the future were not included in the computation of diluted income (loss) per share because to do so would have been anti-dilutive for the periods presented. Potential dilutive common shares for the years ended December 31, 2014, 2013 and 2012 include approximately 817,000, 3.0 million and 3.0 million common shares related to convertible debentures, respectively, and 4.8 million, 4.1 million, and 5.0 million shares, respectively, related to stock options, restricted stock, and restricted stock units. | |
Fair_Value_Measurement_Note_4
Fair Value Measurement - Note 4 | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Fair Value Measurement Disclosure | ||||||||||||||
Fair Value Measurement | (4) Fair Value Measurement | |||||||||||||
Summary of Assets Recorded at Fair Value | ||||||||||||||
The Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: | ||||||||||||||
Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | ||||||||||||||
Level 2- Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | ||||||||||||||
Level 3- Inputs are unobservable and reflect the Company's assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. | ||||||||||||||
In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company's financial assets (all marketable investment securities) that are required to be measured at fair value as of December 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||
As of December 31, 2014: | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Certificate of deposits | $ | - | $ | 6,615 | $ | - | $ | 6,615 | ||||||
Corporate debt | - | 88,733 | - | 88,733 | ||||||||||
Gevernment agency debt | - | 3,278 | - | 3,278 | ||||||||||
Money market funds | 42,349 | - | - | 42,349 | ||||||||||
Total assets at fair value | $ | 42,349 | $ | 98,626 | $ | - | $ | 140,975 | ||||||
As of December 31, 2013: | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Certificate of deposits | $ | - | $ | 13,020 | $ | - | $ | 13,020 | ||||||
Corporate debt | - | 91,887 | - | 91,887 | ||||||||||
Gevernment agency debt | - | 27,131 | - | 27,131 | ||||||||||
Money market funds | 23,043 | - | - | 23,043 | ||||||||||
Total assets at fair value | $ | 23,043 | $ | 132,038 | $ | - | $ | 155,081 | ||||||
As of December 31, 2014 and December 31, 2013, the fair values of the Company's Level 2 securities were $98.6 million and $132.0 million, respectively. These securities are certificates of deposit or commercial paper issued by domestic companies with an original maturity of greater than ninety days. These securities are currently rated A-1 or higher. The Company's cash equivalents are classified within Level 1 or Level 2 of the fair value hierarchy because they are valued using quoted market prices or broker or dealer quotations for similar assets. These investments are initially valued at the transaction price and subsequently valued utilizing third party pricing providers or other market observable data. Data used in the analysis include reportable trades, broker/dealer quotes, bids and offers, benchmark yields and credit spreads. The Company validates the prices provided by its third party pricing providers by reviewing their pricing methods, analyzing pricing inputs and confirming that the securities have traded in normally functioning markets. The Company did not adjust or override any fair value measurements provided by its pricing providers as of December 31, 2014 or 2013. | ||||||||||||||
As of December 31, 2014 and 2013, the Company did not have any investments in Level 3 securities. | ||||||||||||||
There were no transfers of assets or liabilities between Level 1 and Level 2 during the years ended December 31, 2014 and 2013. | ||||||||||||||
The carrying amounts reflected in the consolidated balance sheets for certain short-term financial instruments including cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable, accrued expenses, and other liabilities approximate fair value due to their short-term nature except that the estimated fair value and carrying value of the Brigham and Women's Hospital royalty liability using a discounted cash flow model is approximately $3.7 million and $4.6 million, respectively, at December 31, 2014 and $4.3 million and $5.6 million, respectively, at December 31, 2013. | ||||||||||||||
Summary of Liabilities Recorded at Carrying Value | ||||||||||||||
The fair and carrying value of our debt instruments are detailed as follows (in thousands): | ||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||
Fair | Carrying | Fair | Carrying | |||||||||||
Value | Value | Value | Value | |||||||||||
5.75% Convertible Notes | $ | - | $ | - | $ | 92,338 | $ | 16,545 | ||||||
Sensipar Notes | 26,312 | 26,230 | 54,097 | 54,395 | ||||||||||
PTH 1-84-Secured Debt | 54,730 | 42,790 | 50,058 | 42,790 | ||||||||||
Regpara-Secured Debt | 29,249 | 30,986 | 37,348 | 35,202 | ||||||||||
Total | $ | 110,291 | $ | 100,006 | $ | 233,841 | $ | 148,932 | ||||||
The fair values of the Company's convertible notes were estimated using the (i) terms of the convertible notes; (ii) rights, preferences, privileges, and restrictions of the underlying security; (iii) time until any restriction(s) are released; (iv) fundamental financial and other characteristics of the Company; (v) trading characteristics of the underlying security (exchange, volume, price, and volatility); and (vi) precedent sale transactions. The fair values of the Company's non-recourse Sensipar notes, PTH 1-84-secured debt and REGPARA-secured debt were estimated using a discounted cash flow model. Within the hierarchy of fair value measurements, these are Level 3 fair values. | ||||||||||||||
Financial_Instruments_Note_5
Financial Instruments - Note 5 | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Financial Instruments Disclosure | |||||||||||||||||||
Financial Instruments | (5) Financial Instruments | ||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk are accounts receivable and marketable investment securities. The majority of the Company's accounts receivable are payable by large pharmaceutical companies and specialty pharmacies and collateral is generally not required from these companies. Substantially all of the Company's royalty revenues and the related accounts receivable balances for the years ended December 31, 2014 and 2013 were from three licensees of the Company. Substantially all of the Company's product sales revenues for the year ended December 31, 2014 and 2013, and substantially all of the Company's trade accounts receivable balances at December 31, 2014 and 2013 were from six specialty pharmacies. The Company's portfolio of marketable investment securities is subject to concentration limits set within the Company's investment policy that help to mitigate its credit exposure. | |||||||||||||||||||
The following is a summary of the Company's marketable investment securities (in thousands): | |||||||||||||||||||
Gross | Gross | ||||||||||||||||||
unrealized | unrealized | ||||||||||||||||||
Amortized | holding | holding | Fair | ||||||||||||||||
As of December 31, 2014: | cost | gains | losses | value | |||||||||||||||
Debt securities: | |||||||||||||||||||
Corporate | $ | 95,423 | $ | 3 | $ | -78 | $ | 95,348 | |||||||||||
Government agency | 3,277 | 1 | - | 3,278 | |||||||||||||||
Total marketable investment securites | $ | 98,700 | $ | 4 | $ | -78 | $ | 98,626 | |||||||||||
Gross | Gross | ||||||||||||||||||
unrealized | unrealized | ||||||||||||||||||
Amortized | holding | holding | Fair | ||||||||||||||||
As of December 31, 2013: | cost | gains | losses | value | |||||||||||||||
Debt securities: | |||||||||||||||||||
Corporate | $ | 103,175 | $ | 23 | $ | -60 | $ | 103,138 | |||||||||||
Government agency | 26,110 | 22 | - | 26,132 | |||||||||||||||
Total marketable investment securites | $ | 129,285 | $ | 45 | $ | -60 | $ | 129,270 | |||||||||||
Marketable investment securities available for sale in an unrealized loss position as of December 31, 2014 and 2013 are summarized as follows (in thousands): | |||||||||||||||||||
Held for less than 12 months | Held for more than 12 months | Total | |||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||
Fair value | losses | Fair value | losses | Fair value | losses | ||||||||||||||
31-Dec-14 | |||||||||||||||||||
Available for Sale: | |||||||||||||||||||
Debt securities: | |||||||||||||||||||
Corporate | $ | 90,327 | $ | 78 | $ | - | $ | - | $ | 90,327 | $ | 78 | |||||||
Government agency | - | - | - | - | - | - | |||||||||||||
$ | 90,327 | $ | 78 | $ | - | $ | - | $ | 90,327 | $ | 78 | ||||||||
31-Dec-13 | |||||||||||||||||||
Available for Sale: | |||||||||||||||||||
Debt securities: | |||||||||||||||||||
Corporate | $ | 74,407 | $ | 56 | $ | 5,732 | $ | 4 | $ | 80,139 | $ | 60 | |||||||
Government agency | - | - | - | - | - | - | |||||||||||||
$ | 74,407 | $ | 56 | $ | 5,732 | $ | 4 | $ | 80,139 | $ | 60 | ||||||||
Summary of Contractual Maturities | |||||||||||||||||||
Maturities of marketable investment securities are as follows at December 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||||
Amortized | Amortized | ||||||||||||||||||
cost | Fair value | cost | Fair value | ||||||||||||||||
Due within one year | $ | 95,499 | $ | 95,430 | $ | 103,280 | $ | 103,266 | |||||||||||
Due after one year through five years | 3,201 | 3,196 | 26,005 | 26,004 | |||||||||||||||
Due after five years through ten years | - | - | - | - | |||||||||||||||
Due after ten years | - | - | - | - | |||||||||||||||
Total debt securities | $ | 98,700 | $ | 98,626 | $ | 129,285 | $ | 129,270 | |||||||||||
Impairments | |||||||||||||||||||
No impairment losses were recognized through earnings related to available for sale securities during the years ended December 31, 2014 or 2013. | |||||||||||||||||||
Proceeds from Available for Sale Securities | |||||||||||||||||||
The proceeds from maturities and sales of available for sale securities and resulting realized gains and losses, were as follows (in thousands): | |||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Proceeds from sales and maturities | $ | 134,667 | $ | 107,871 | $ | 119,507 | |||||||||||||
Realized gains | 12 | 4 | 4 | ||||||||||||||||
Realized losses | - | - | - | ||||||||||||||||
Inventory_Note_6
Inventory - Note 6 | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure | ||||||||
Inventory | (6) Inventory | |||||||
Inventories are stated at the lower of cost or market. Inventory is as follows at December 31, 2014 and 2013 (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 34,020 | $ | 29,330 | ||||
Finished goods | 2,795 | 705 | ||||||
Total inventory | $ | 36,815 | $ | 30,035 | ||||
Inventory acquired prior to receipt of marketing approval of a product candidate is expensed as research and development as incurred. The Company begins to capitalize the costs associated with the production of the inventory upon marketing approval of a product candidate. | ||||||||
Property_and_Equipment_Note_7
Property and Equipment - Note 7 | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property and Equipment Disclosure | ||||||||||
Property and Equipment - Note 7 | (7) Property and Equipment, Net | |||||||||
Property and equipment is recorded at cost and consists of the following (in thousands): | ||||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Office Equipment | $ | 8,346 | $ | 5,519 | ||||||
Laboratory Equipment | 223 | 216 | ||||||||
Leasehold Improvements | 2,109 | 2,023 | ||||||||
Total property and equipment | 10,678 | 7,758 | ||||||||
Less accumulated depreciation | -4,892 | -3,356 | ||||||||
Total equipment, net | $ | 5,786 | $ | 4,402 | ||||||
Leases_Note_8
Leases - Note 8 | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases Disclosure | ||||||||
Leases - Note 8 | (8) Leases | |||||||
The Company has non-cancelable operating leases for its office space in Bedminster, New Jersey that expire in 2016. The Company also has non-cancelable operating leases for office space in Europe for the expansion of the Company's global business and certain equipment that expire between 2015 and 2016. Rent-free periods and other incentives granted under the leases and scheduled rent increases are charged to rent expense on a straight-line basis over the related terms of the lease. Rental expense for operating leases was approximately $2.6 million, $1.7 million, and $1.6 million for 2014, 2013, and 2012, respectively. The future lease payments under non-cancelable operating leases as of December 31, 2014 are as follows (in thousands): | ||||||||
Operating | ||||||||
leases | ||||||||
Year ending December 31: | ||||||||
2015 | $ | 3,154 | ||||||
2016 | 1,835 | |||||||
2017 | 4 | |||||||
2018 | - | |||||||
2019 | - | |||||||
Total minimum lease payments | $ | 4,993 | ||||||
Longterm_Debt_Note_9
Long-term Debt - Note 9 | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Long-Term Debt Disclosure | |||||||
Long-Term Debt | (9) Long-term Debt | ||||||
The following table reflects the carrying value of our long-term debt under various financing arrangements as of December 31, 2014 and 2013 (in thousands): | |||||||
December 31, | |||||||
2014 | 2013 | ||||||
Convertible notes | $ | - | $ | 16,545 | |||
Non-recourse debt | 100,006 | 132,387 | |||||
Total debt | 100,006 | 148,932 | |||||
Less current portion | 10,252 | 25,297 | |||||
Total long-term debt | $ | 89,754 | $ | 123,635 | |||
(a) Convertible Notes | |||||||
On April 8, 2014, the holders of the 5.75% Convertible Notes converted the remaining outstanding notes at a conversion price of $5.44 per share. The Company issued 3.0 million shares pursuant to this conversion and retired the remaining $16.5 million of the outstanding 5.75% Convertible Notes. | |||||||
(b) Non-recourse Debt | |||||||
Sensipar and Mimpara-secured Non-recourse Debt | |||||||
As of December 31, 2014 and 2013, the outstanding principal balances on Sensipar and Mimpara-secured debt were $26.2 million and $54.4 million, respectively. The Sensipar and Mimpara-secured debt is non-recourse to the Company and solely secured and serviced by its Sensipar and Mimpara (cinacalcet HCl) royalty revenues and milestone payments. The Sensipar and Mimpara-secured non-recourse debt relates to the following royalty monetization transactions: (i) the private placement of $175.0 million in non-recourse 8.0% Notes due March 30, 2017 (Class A Notes), (ii) the private placement of $100.0 million in non-recourse 15.5% Notes due March 30, 2017 (Class B Notes), and (iii) the amendment of the Company's agreement with Amgen in August 2011. | |||||||
The Class A Notes were paid in full on March 30, 2011 and the Class B Notes were paid in full on September 30, 2011 when they were redeemable at their par value. | |||||||
The Company amended its agreement with Amgen effective September 30, 2011 whereby Amgen advanced $145.0 million of Sensipar and Mimpara royalties to the Company. The Sensipar Notes accrue interest at an annual rate of 9%, compounded quarterly and payable forty-five days after the close of each quarter. The payment of the royalty advance and discount shall be satisfied solely by Amgen's withholding of royalties and except in the event of a breach of certain customary representations and warranties under the agreement, the Company will have no obligation to repay any unsettled amount. The Company further amended the agreement with Amgen effective June 29, 2012, limiting the royalty offset of the royalty advance up to $8.0 million per quarter with royalties in excess of $8.0 million paid to the Company for the respective quarter, thereby extending the royalty advance repayment period. After the payment of the royalty advance and a 9 percent per annum discount on the balance of the advance, Amgen will resume paying NPS all royalties earned through December 31, 2018. As of December 31, 2014, the Company classified $7.4 million of the Sensipar Notes as current based on royalty payments accrued as of December 31, 2014. The Sensipar Notes are non-recourse to the Company. Accrued interest on the Sensipar Notes was approximately $286,000 and $592,000 as of December 31, 2014 and 2013, respectively. The Company incurred debt issuance costs of $96,000, which are being amortized using the effective interest method. The effective interest rate on the Sensipar Notes, including debt issuance costs, is approximately 9%. | |||||||
Under the Company's agreement for the Sensipar Notes, the Company would potentially be liable for its breaches or defaults, if any. | |||||||
PTH 1-84-secured Non-recourse Debt | |||||||
As of December 31, 2014 and 2013, the outstanding principal balances on the PTH 1-84-secured debt were $42.8 million, respectively. In July 2007, the Company entered into an agreement with DRI Capital, or DRI, formerly Drug Royalty L.P.3, in which the Company sold to DRI its right to receive future royalty payments arising from sales of recombinant human parathyroid hormone 1-84 [rDNA origin] ("PTH") under its license agreement with Takeda. Under the agreement, DRI paid the Company an up-front purchase price of $50.0 million. If and when DRI receives two and a half times the amount paid to the Company, the agreement will terminate and the remainder of the royalties, if any, will revert back to the Company. In connection with the Company's July 2007 agreement with DRI, the Company granted DRI a security interest in its license agreement with Takeda for Preotact and certain of its patents and other intellectual property underlying that agreement. In the event of a default by NPS under the agreement with DRI, DRI would be entitled to enforce its security interest against NPS and the property described above. | |||||||
In December 2013, the Company entered into an amendment and restatement (the "Amendment and Restatement") to its agreement with DRI. Pursuant to the Termination and Transition Agreement between NPS and Takeda (See note 10), NPS' license agreement with Takeda was terminated and NPS re-acquired exclusive rights worldwide, excluding Israel, to develop and commercialize PTH. Preotact is the brand name that Takeda had used to market PTH for the treatment of osteoporosis in certain of its licensed territories. NPS is developing PTH in the U.S. under the trade name Natpara for the treatment of hypoparathyroidism. NPS filed a BLA for Natpara with the FDA in October 2013. | |||||||
Pursuant to the Amendment and Restatement, (i) DRI has consented to the commercialization of PTH by the Company, (ii) the terms of the 2007 Agreement are tolled, and (iii) the parties' rights and obligations regarding PTH and related technology are governed by the Amendment and Restatement. | |||||||
The Company will be required to pay royalties in the mid-single digits to DRI based upon sales of PTH by the Company and its licensees (if any) worldwide, excluding Israel. The Company has agreed to undertake certain efforts to commercialize PTH. If the Company does not submit a Marketing Authorization Application to the European Medicines Agency for PTH in the European Union by an agreed upon date, DRI will have the right to revoke the consent granted in the Amendment and Restatement, reinstate the 2007 Agreement, and either cause the Company to enter into a new license agreement with a third party with respect to PTH on terms that are substantially similar and no more extensive (when taken as a whole) than the terms contained in the terminated Takeda License Agreement, or negotiate such an agreement on NPS' behalf. | |||||||
The Company's obligation to pay royalties to DRI under the Amendment and Restatement shall expire on a country-by-country basis upon the later of (i) the last to expire patent controlled by the Company with claims covering PTH in such country or (ii) the expiration of any period of regulatory exclusivity applicable to PTH in such country. The Company's obligation to pay royalties to DRI under the Amendment and Restatement shall terminate in its entirety once cumulative royalty payments made to DRI by Takeda and the Company total $125.0 million. As of December 31, 2014, $45.5 million in royalties had been paid to DRI. | |||||||
DRI continues to maintain a security interest in NPS patents that contain claims covering PTH and certain other NPS intellectual property related to PTH. In the event of a default by NPS under the Amendment and Restatement, DRI would be entitled to enforce its security interest against NPS and such intellectual property. | |||||||
The Company determined the initial up-front purchase price is debt and is being amortized into earnings using the effective interest method over the estimated life. Accrued interest under the DRI agreement was $6.2 million and $0 as of December 31, 2014 and 2013, respectively. The repayment of the remaining $42.8 million is secured solely by future royalty payments arising from sales of PTH by the Company. The PTH-secured debt is non-recourse to the Company. | |||||||
REGPARA-secured Non-recourse Debt | |||||||
As of December 31, 2014 and 2013, the outstanding principal balances on REGPARA-secured debt were $31.0 million and $35.2 million, respectively. In February 2010, the Company entered into an agreement with an affiliate of DRI, in which the Company sold to DRI its right to receive future royalty payments arising from sales of REGPARA® (cinacalcet HC1) under its license agreement with Kyowa Hakko Kirin. Under the agreement, DRI paid the Company an up-front purchase price of $38.4 million. If and when DRI receives two and a half times the amount paid to the Company, the agreement will terminate and the remainder of the royalties, if any, will revert back to the Company. In connection with the Company's February 2010 agreement with DRI, the Company granted DRI a security interest in its license agreement with Kyowa Hakko Kirin for REGPARA and certain of its patents and other intellectual property underlying that agreement. In the event of a default by NPS under the agreement with DRI, DRI would be entitled to enforce its security interest against NPS and the property described above. The Company determined the initial up-front purchase price is debt and is being amortized into earnings using the effective interest method over the estimated life of approximately 11 years. In accordance with the agreement, on March 1, 2010, DRI received the $2.1 million royalty owed to NPS for REGPARA sales during the six months ended December 31, 2009, which reduced the liability recorded for the DRI transaction to $36.3 million. As of December 31, 2014 and 2013, the Company classified $2.8 million and $1.9 million, respectively, of the REGPARA-secured debt as current based on royalty payments accrued as of December 31, 2014 and 2013, respectively. Accrued interest under the DRI agreement was $576,000 and $1.1 million as of December 31, 2014 and 2013, respectively. Through December 31, 2014, $36.2 million has been paid to DRI. The repayment of the remaining $31.0 million is secured solely by future royalty payments arising from sales of REGPARA by Kyowa Hakko Kirin. The effective interest rate under the agreement, including issuance costs, is approximately 15.6%. The REGPARA-secured debt is non-recourse to the Company. | |||||||
(c) Contractual maturities of long-term debt | |||||||
The aggregate contractual maturities of long-term debt, including estimated maturities of the Non-recourse Debt, due subsequent to December 31, 2014 are as follows (in thousands): | |||||||
Year ending December 31: | |||||||
2015 | $ | 31,964 | |||||
2016 | 5,290 | ||||||
2017 | 4,733 | ||||||
2018 | 5,177 | ||||||
2019 | 26,894 | ||||||
Thereafter | 25,948 | ||||||
Total long-term debt | $ | 100,006 | |||||
Takeda_Termination_and_Transit
Takeda Termination and Transition Agreement - Note 10 | 12 Months Ended |
Dec. 31, 2014 | |
Takeda Termination and Transition Agreement Disclosure | |
Termination and Transition Agreement | (10) Takeda Termination and Transition Agreement |
On March 18, 2013, the Company entered into a Termination and Transition Agreement (the Agreement), with Takeda GmbH (Takeda GmbH), and Takeda Pharma A/S (Takeda Pharma and, together with Takeda GmbH, Takeda). | |
The Agreement provides for the termination of the license agreement, dated July 2, 2007, as amended, which granted Takeda Pharma the exclusive license to sell, market and commercialize recombinant human parathyroid hormone 1-84 [rDNA origin] (rhPTH 1-84) worldwide, except for the U.S., Israel, and Japan, and a non-exclusive license to manufacture and develop rhPTH 1-84 (the rhPTH 1-84 License Agreement). Pursuant to the rhPTH 1-84 License Agreement the rights were returned to the Company without consideration. Preotact is the brand name that Takeda Pharma has used to market rhPTH 1-84 for the treatment of osteoporosis in certain of its licensed territories. The Company developed rhPTH 1-84 in the U.S. under the trade name Natpara for the treatment of hypoparathyroidism. In January 2015, the FDA approved the Company's second product, Natpara® (parathyroid hormone) for Injection as an adjunct to calcium and vitamin D to control hypocalcemia in patients with hypoparathyroidism, | |
The Agreement also provides for the termination of the license agreement, dated September 24, 2007, as amended, which granted Takeda GmbH the exclusive license to develop and commercialize teduglutide worldwide, except for North America and Israel (the Revestive License Agreement). Takeda GmbH developed and obtained approval in the EU in August 2012 for teduglutide under the trade name Revestive for the treatment of Short Bowel Syndrome (SBS) in adults. The Company obtained U.S. Food and Drug Administration approval in the U.S. in December 2012 for teduglutide under the trade name Gattex for adult patients with SBS who are dependent on parenteral support. As a result of the termination of the License Agreements, the Company now has the exclusive rights worldwide to develop and commercialize teduglutide and PTH, except as noted in Note 9. | |
Takeda assigned to NPS its assets related to the two products, including all of its active pharmaceutical ingredient inventory and information related to the products' continued development, manufacture, and commercialization, including life cycle management assets. Takeda received 6.1 million shares of NPS common stock that were valued at $54.9 million as of the date of the transaction. Takeda will also earn a $30.0 million milestone payment in the first calendar year that combined worldwide net sales of both products exceed $750 million. This milestone includes an early payment trigger upon a qualified change of control. NPS has the option of making this milestone payment in cash or NPS common stock. Pending the closing of the tender offer related to the Merger Agreement, that transaction would be considered a qualifying change in control. | |
The Company engaged an independent valuation firm to assist it in determining the fair value of the assets acquired. Using these fair values, the Company assigned $16.6 million to the Revestive active pharmaceutical ingredient (API), $17.1 million to the PTH API and $20.7 million to the Revestive product rights. The Company capitalized the Revestive and PTH API as inventory and capitalized the product rights to intangibles, net on the Company's balance sheet due to the fact that Revestive and Preotact are approved in the EU for SBS and Osteoporosis, respectively. The Company is amortizing the Revestive product rights on a straight-line basis over the estimated useful life of approximately 12 years. Through December 31, 2014, $3.2 million of the Revestive products rights have been amortized and expensed. The estimated amortization expense for each of the next five years is approximately $1.8 million. | |
Capital_Stock_Note_11
Capital Stock - Note 11 | 12 Months Ended |
Dec. 31, 2014 | |
Capital Stock Disclosure | |
Capital Stock | (11) Capital Stock |
Equity Financing | |
In May 2013, the Company completed a public sale of 6,900,000 shares of its common stock at a per share price of $14.53. Net proceeds to the Company from the sale totaled approximately $93.5 million, after deducting expenses and the commission in connection with the offering paid by the Company. | |
Convertible Debt | |
On April 8, 2014, the holders of the 5.75% Convertible Notes converted the remaining outstanding notes at a conversion price of $5.44 per share. The Company issued 3.0 million shares pursuant to this conversion and retired the remaining $16.5 million of the outstanding 5.75% Convertible Notes. | |
ShareBased_Compensation_Plans_
Share-Based Compensation Plans - Note 12 | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Share-Based Compensation Plans | (12) Share-Based Compensation Plans | |||||||||||
As of December 31, 2014, the Company has five equity incentive plans: the 1994 Nonemployee Directors' Stock Option Plan (the Directors' Plan), the 1998 Stock Option Plan (the 1998 Plan), the 2005 Omnibus Incentive Plan (the 2005 Plan), the 2014 Omnibus Equity Compensation Plan (the 2014 Plan), and the Employee Stock Purchase Plan ("ESPP"). These plans provide that in the event of certain change in control transactions, including a merger or consolidation in which the Company is not the surviving corporation or a reorganization in which more than fifty-percent (50%) of the shares of the Company's common stock entitled to vote are exchanged, all outstanding, unvested equity awards under these plans will vest, and in the case of stock options, will become immediately exercisable. | ||||||||||||
As of December 31, 2014, there are no shares reserved for future grant under the Directors' Plan, the 1998 Plan and the 2005 Plan. As of December 31, 2014, there are 6,504,764 shares reserved for future grant under the 2014 Plan. The Company's 2014 Plan provides for the grant of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, cash-based awards, dividend equivalents and other stock-based awards. Under the Company's 2014 Plan, the exercise price of stock options, the grant price of stock appreciation rights and the initial value of performance awards, will not be less than the fair market value of the Company's common stock on the date of award. Stock options generally vest 25% after year one and 6.25% every three months thereafter. Under the Company's 2005 Plan, the exercise price of stock options, the grant price of stock appreciation rights and the initial value of performance awards, must be equal to at least 100% of the fair market value of the Company's common stock on the date of grant. Stock options generally vest 28% after year one and 2% per month thereafter or 25% after year one and 6.25% every three months thereafter. Under the Company's 1998 Plan, the exercise price of options is not less than the fair market value of the Company's common stock on the date of grant. The number of shares, terms, and exercise period are determined by the board of directors on a grant-by-grant basis, and the exercise period does not extend beyond ten years from the date of the grant. Stock options generally vest 28% after one year and 2% or 3% per month thereafter or 25% after year one and 6.25% every three months thereafter. | ||||||||||||
During the year ended December 31, 2010, the Company's Board of Directors awarded a total of 1,130,700 performance condition options to certain of the Company's employees. Vesting of these options are subject to the Company achieving certain performance criteria established at the grant date and the individuals fulfilling a service condition (continued employment). As of December 31, 2014, the performance criteria of 884,590 of these options had been satisfied and these options will become exercisable based on the following vesting schedule: 25% on each of the first four anniversaries of the date of grant, which was February 20, 2010 (the date of grant). The Company recognized $192,000, $277,000 and $1.1 million of compensation expense during the years ended December 31, 2014, 2013 and 2012, respectively, related to these options. The final performance criteria had not been met and therefore the remaining 246,110 options have been forfeited. The Company utilized the Black-Scholes option pricing model to determine the grant date fair value of the awards. | ||||||||||||
On May 19, 2010, the shareholders approved an ESPP whereby qualified employees are allowed to purchase limited amounts of the Company's common stock at the lesser of 85% of the market price at the beginning or end of the offering period. The shareholders have authorized 500,000 shares for purchase by employees. During the years ended December 31, 2014, 2013 and 2012, employees purchased 40,120, 72,937 and 45,553 shares, respectively, under the ESPP. The Company has 289,465 shares available for future purchase as of December 31, 2014. | ||||||||||||
The Company estimates expected volatility considering implied volatility based on market-traded options on the Company's common stock and historical volatility of the Company's common stock over the expected life of the options. In estimating volatility for the years ended December 31, 2014, 2013 and 2012 the Company weighted implied volatility at zero percent and historical volatility at 100%. The Company recognizes compensation cost for awards on a straight-line basis over the requisite service period for the entire award. Additionally, the Company's policy is to issue new shares of common stock to satisfy stock option exercises, ESPP purchases or grants of restricted shares or deferred stock units. | ||||||||||||
The compensation expense related to stock options, ESPP purchases, restricted shares and deferred stock units are recorded in expense categories based on where other compensation cost is recorded for employees receiving the awards. | ||||||||||||
The following table summarizes the effect of compensation cost arising from share-based payment arrangements in the Company's Statements of Operations for the years ended December 31, 2014, 2013 and 2012 for the Company's stock option plans, the ESPP and other share-based awards (in thousands): | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Research and development | $ | 5,657 | $ | 4,107 | $ | 3,343 | ||||||
Selling, general and administrative | 9,346 | 5,330 | 4,205 | |||||||||
Amounts charged against income, before | ||||||||||||
income tax expense | $ | 15,003 | $ | 9,437 | $ | 7,548 | ||||||
The fair value of each option award is estimated, on the date of grant using the Black-Scholes option-pricing valuation model, which incorporates ranges of assumptions for inputs as shown in the following table. The assumptions are as follows: | ||||||||||||
The expected volatility is a blend of implied volatility based on market-traded options on the Company's common stock and historical volatility of the Company's stock over the expected term of the options. | ||||||||||||
The Company uses historical data to estimate the expected term of the option; separate groups of employees that have similar historical exercise behavior are considered separately for valuation purposes. The expected term of options granted represents the period of time the options are expected to be outstanding. | ||||||||||||
The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods within the expected term of the option. | ||||||||||||
The expected dividend yield is based on the Company's current dividend yield as the best estimate of projected dividend yield for periods within the expected term of the option. | ||||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Dividend yield | — | — | — | |||||||||
Expected volatility | 57.98% — 60.69% | 59.15% — 60.69% | 61.22% — 67.58% | |||||||||
Risk-free interest rate | 1.4% — 1.8% | 0.7% — 3.7% | 0.6% — 1.1% | |||||||||
Expected term (in years) | 5.2 — 5.6 | 5.2 — 6.0 | 5.1 — 5.9 | |||||||||
A summary of activity related to aggregate stock options under all plans is indicated in the following table (in thousands, except per share amounts): | ||||||||||||
Year ended December 31, 2014 | ||||||||||||
Weighted | Weighted | |||||||||||
Number | average | average remaining | Aggregate | |||||||||
of | exercise | contractual | intrinsic | |||||||||
options | price | term | value | |||||||||
(in thousands) | (in years) | (in thousands) | ||||||||||
Options outstanding at beginning | ||||||||||||
of year | 6,656 | $ | 8.03 | |||||||||
Options granted | 1,269 | 32.80 | ||||||||||
Options exercised | 1,245 | 7.48 | ||||||||||
Options forfeited/expired | 559 | 11.56 | ||||||||||
Options outstanding at end of year | 6,121 | 12.96 | 7.21 | $ | 141,011 | |||||||
Vested and expected to vest | 5,838 | 12.53 | 7.14 | $ | 136,909 | |||||||
Options exercisable at end of year | 3,246 | $ | 7.16 | 6.11 | $ | 92,865 | ||||||
The weighted-average grant-date fair value of options granted during the years ended December 31, 2014, 2013 and 2012 was $17.54, $5.66 and $4.46, respectively. The intrinsic value for stock options is defined as the difference between the current market value and the grant price. The total intrinsic value of stock options exercised during the years ended December 31, 2014, 2013 and 2012 was $31.5 million, $33.4 million and $2.0 million, respectively. | ||||||||||||
Restricted stock, restricted stock units and deferred stock unit grants consist of the Company's common stock. The fair value of each restricted stock grant, restricted stock unit and deferred stock unit is equal to the market price of the Company's stock at the date of grant. Restricted stock and restricted stock unit grants are time vested. During the years ended December 31, 2014, 2013 and 2012, the Company granted 7,136, 35,097 and 20,334 deferred stock units, respectively, to directors for services, which did not contain any vesting restrictions. During the years ended December 31, 2014, 2013 and 2012, the Company granted 27,432, 75,940 and 106,575 restricted stock units, respectively, to directors for services, which vest over one year. At December 31, 2014, there are 649,642 deferred stock units outstanding. During the years ended December 31, 2014, 2013 and 2012 the Company granted to employees 328,916, 317,212 and 307,720 shares of restricted stock, respectively, which will vest over a period of one to three years. During the years ended December 31, 2014, 2013 and 2012 the Company granted to employees 30,412, 141,507 and 0 shares of restricted stock, respectively, which have certain performance criteria that is set by the Compensation Committee. If the performance criteria is met, the awards will vest over a period of one to three years. | ||||||||||||
A summary of activity related to aggregate restricted stock, restricted stock units and deferred stock units as of December 31, 2014, is indicated in the following table (shares in thousands, except per share amounts): | ||||||||||||
Number of | Weighted-average | |||||||||||
shares | grant date fair value | |||||||||||
Nonvested at beginning of year | 752 | $ | 8.89 | |||||||||
Granted | 394 | 31.07 | ||||||||||
Vested | -229 | 9.19 | ||||||||||
Forfeited | -59 | 12.40 | ||||||||||
Nonvested at December 31, 2014 | 858 | $ | 18.75 | |||||||||
As of December 31, 2014, there was $23.2 million of total unrecognized compensation cost related to all unvested share-based compensation arrangements that is expected to be recognized over a weighted-average period of 2.82 years. | ||||||||||||
Income_Taxes_Note_13
Income Taxes - Note 13 | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes Disclosure | ||||||||||
Income Taxes | (13) Income Taxes | |||||||||
The components of loss before income taxes for the years ended December 31, 2014, 2013 and 2012 includes the following (in thousands): | ||||||||||
Years ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
United States | $ | 36,829 | $ | -9,748 | $ | -18,735 | ||||
Foreign | -44,768 | -3,574 | - | |||||||
Loss before income taxes | $ | -7,939 | $ | -13,322 | $ | -18,735 | ||||
The Company has recorded income tax expense for the years ended December 31, 2014, 2013 and 2012 of $766,000, $182,000, and $0, respectively. The income tax expense for the year ended December 31, 2014 was primarily related to state income taxes and other non-U.S. income taxes and the income tax expense for the year ended December 31, 2013 was primarily related to a non-cash charge for state income taxes. | ||||||||||
Income tax differed from the amounts computed by applying the U.S. federal income tax rate of 34% to loss before income tax expense (benefit) as a result of the following (in thousands): | ||||||||||
Years ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Computed "expected" tax benefit | $ | -2,699 | $ | -4,529 | $ | -6,370 | ||||
IRC §382 adjustment | - | 6,575 | 59,822 | |||||||
Change in the valuation allowance for deferred tax assets | ||||||||||
attributable to operations and other adjustments | -7,158 | 2,840 | -42,124 | |||||||
Research credit | -9,217 | -12,237 | -10,231 | |||||||
State income taxes, net of federal tax effect | 527 | 182 | - | |||||||
Equity based compensation expense | 1,310 | 678 | 513 | |||||||
Intercompany license of intellectual property | - | 5,440 | - | |||||||
Foreign tax rate differences | 15,358 | 940 | - | |||||||
Non-recourse debt | 2,056 | -78 | -1,663 | |||||||
Other | 589 | 371 | 53 | |||||||
$ | 766 | $ | 182 | $ | - | |||||
The tax effects of temporary differences that give rise to the deferred tax assets at December 31, 2014 and 2013 are presented below (in thousands): | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Net operating loss carryforward | $ | 109,751 | $ | 132,101 | ||||||
Research credit carryforward | 82,633 | 68,277 | ||||||||
Capital loss carryforward | 4,101 | 4,186 | ||||||||
Non-recourse debt | 26,060 | 27,769 | ||||||||
Acquired intellectual property | 26,344 | 29,452 | ||||||||
Capitalization of inventory | 11,021 | 9,429 | ||||||||
Stock compensation expense | 4,479 | 2,935 | ||||||||
Accrued compensation | 3,269 | 3,117 | ||||||||
Other | 697 | 555 | ||||||||
Total deferred tax assets | 268,355 | 277,821 | ||||||||
Less valuation allowance | -268,355 | -277,821 | ||||||||
Deferred tax assets | - | - | ||||||||
Deferred tax liabilities | - | - | ||||||||
Net deferred tax asset (liability) | $ | - | $ | - | ||||||
Carryfowards | ||||||||||
At December 31, 2014, the Company had U.S. federal net operating loss carryforwards of approximately $348.9 million which begin to expire in 2018, U.S. federal research credit carryforwards of $82.6 million, which begin to expire in 2030, and U.S. federal capital loss carryforwards of $10.7 million which begin to expire in 2015. The Company's domestic tax loss carryforwards for alternative minimum tax purposes is approximately the same as the Company's regular tax loss carryforwards. The Company also has New Jersey state net operating loss and capital loss carryforwards of approximately $337.5 million and $15.3 million, respectively, which begin to expire in 2015, and other domestic state net operating loss carryforwards and tax credit carryforwards in varying amounts depending on the different state laws. | ||||||||||
The Company uses the "with-and-without" approach in determining the order in which tax attributes are utilized. Using the "with-and-without" approach, the Company will only recognize a tax benefit from stock-based awards in additional paid-in capital if an incremental tax benefit is realized after all other net operating loss carryforwards currently available to the Company have been utilized, but prior to the utilization of other tax attributes. | ||||||||||
The U.S. federal net operating loss carryforwards of approximately $348.9 million include approximately $10.1 million of excess tax benefits related to share-based payments that are presented on a tax effected basis within the deferred tax assets. Since this amount was recorded through additional paid-in capital, the related valuation allowance on these net operating loss carryforwards will be reversed through additional paid-in capital when these excess tax benefits are realized. Also, included in the U.S. federal net operating loss carryforwards are excess tax benefits related to share-based payments of approximately $51.8 million that are not recognized as a deferred tax asset as the amounts would not have resulted in a reduction in current taxes payable if all other net operating loss carryforwards currently available to the Company were utilized. The benefit of these deductions will be recognized through additional paid-in capital at the time the tax deduction results in a reduction of current taxes payable. | ||||||||||
Section 382 of the Internal Revenue Code can potentially limit a company's ability to use net operating loss, tax credits, capital loss, and other tax attributes in periods subsequent to a change in ownership. The Company periodically updates its Section 382 study to assess whether the Company has undergone certain greater than 50% changes of ownership as defined in Section 382 of the Internal Revenue Code. This study concluded that the Company had an ownership change in 2010. As a result, the Company determined that certain net operating loss, tax credit and capital loss carryforwards will expire prior to their utilization due to the expected annual Section 382 limitation, and accordingly the net operating loss, tax credit, and capital loss carryforwards on the above deferred tax asset table have been reduced. | ||||||||||
Valuation Allowance | ||||||||||
The Company determines the need for a valuation allowance by assessing the probability of realizing deferred tax assets, taking into consideration all available positive and negative evidence, including historical operating results, expectations of future taxable income, carryforward periods available to the Company for tax reporting purposes, various income tax strategies and other relevant factors. Significant judgment is required in making this assessment and to the extent future expectations change, the Company would have to assess the recoverability of its deferred tax assets at that time. | ||||||||||
At December 31, 2014 and 2013, the Company maintained a full valuation allowance on its deferred tax assets. The Company has a history of cumulative losses. The Company's cumulative loss position was significant negative evidence in assessing the need for a valuation allowance. The valuation allowance for deferred tax assets decreased by $9.5 million in 2014 and increased by $215,000 in 2013. | ||||||||||
Unrecognized Tax Benefits | ||||||||||
A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) is as follows (in thousands): | ||||||||||
Unrecognized | ||||||||||
Tax Benefits | ||||||||||
Balance as of January 1, 2013 | $ | 4,614 | ||||||||
Additions for current year tax positions | - | |||||||||
Reductions for prior year tax positions | -677 | |||||||||
Balance as of December 31, 2013 | 3,937 | |||||||||
Additions for current year tax positions | - | |||||||||
Reductions for prior year tax positions | - | |||||||||
Balance as of December 31, 2014 | $ | 3,937 | ||||||||
The total amount of unrecognized tax benefits relating to the Company's tax positions is subject to change based on future events including, but not limited to, the settlements of ongoing audits and/or the expiration of applicable statutes of limitations. Although the outcomes and timing of such events are highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits will not change during the next 12 months. However, changes in the occurrence, expected outcomes and timing of those events could cause the Company's current estimate to change materially in the future. | ||||||||||
Due to the Company's net operating loss carryforwards, any adjustment related to an unrecognized tax benefit would not be expected to result in a cash tax liability. Accordingly, the Company has not accrued for interest or penalties for the U.S. (both Federal and State) as of December 31, 2014 and 2013. Assuming the continued existence of a full valuation allowance on the Company's deferred tax assets, future recognition of any of the Company's unrecognized tax benefits would not impact the effective tax rate. | ||||||||||
The Company files income tax returns in the United States and various foreign jurisdictions. Of the major jurisdictions, the Company is subject to examination in: the United States for U.S. federal purposes for 2011 and forward and for New Jersey for 2011 and forward. In August 2012, the IRS completed its examination of the Company's U.S. federal income tax returns for the year ended December 31, 2009. In May 2013, the State of New Jersey completed its examination of the Company's New Jersey income tax returns through the year ended December 31, 2010. There were no adjustments as a result of these examinations. | ||||||||||
Employee_Benefit_Plans_Note_14
Employee Benefit Plans - Note 14 | 12 Months Ended |
Dec. 31, 2014 | |
Employee Benefit Plans Disclosure | |
Employee Benefit Plans - Note 14 | (14) Employee Benefit Plans |
The Company maintains a tax-qualified employee savings and retirement plan (401(k) Plan) covering all of the Company's employees in the United States. Pursuant to the 401(k) Plan, employees may elect to reduce their current compensation up to the maximum percent allowable, not to exceed the limits of code section 401(k), 403(b), 404 and 415, of eligible compensation or the prescribed IRS annual limit and have the amount of such reduction contributed to the 401(k) Plan. The 401(k) Plan permits, but does not require, additional matching contributions to the 401(k) Plan by the Company on behalf of all participants. During the years ended December 31, 2014, 2013 and 2012, the Company matched 100% of employee contributions up to 3% of employee pre-tax contributions and 50% of employee contribution on the next 3% of employee pre-tax contributions. The Company recorded an expense associated with these matching contributions for the years ended December 31, 2014, 2013, and 2012 of $1.6 million, $1.1 million and $620,000, respectively. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements - Note 15 | 12 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements Disclosure | |
Recent Accounting Pronouncements | (15) Recent Accounting Pronouncements |
From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. | |
In May 2014, the FASB issued Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers," which requires entities to recognize revenue in the way it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most of the existing revenue recognition requirements in U.S. GAAP when it becomes effective. This pronouncement is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period and is to be applied retrospectively, with early application not permitted. The Company is currently evaluating the effect that this pronouncement will have on its financial statements and related disclosures. | |
Commitment_and_Contingencies_N
Commitment and Contingencies - Note 16 | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure | |
Commitments and Contingencies | (16) Commitments and Contingencies |
The Company has agreed to indemnify, under certain circumstances, certain manufacturers and service providers from and against any and all losses, claims, damages or liabilities arising from services provided by such manufacturers and service providers or from any use, including clinical trials, or sale by the Company or any Company agent of any product supplied by the manufacturers. | |
The Company has contractual commitments of $17.4 million with external marketing, commercial readiness and market research organizations relating to pre-launch activities for Revestive and Natpara. These agreements are cancellable on notice of up to six months. The Company also has approximately $43.2 million in contractual commitments for other service agreements with varying terms and conditions. | |
The Company has entered into long-term agreements with various third-party contract manufacturers for the production and packaging of drug substance and drug product. Under the terms of these various contracts, the Company will be required to purchase certain minimum quantities of drug product each year. | |
The Company has contractual commitments of $73.7 million for drug substance, drug product and other manufacturing processes as of December 31, 2014 for the manufacture of clinical and commercial supplies of Gattex/Revestive and Natpara. Amounts owed to third-party contract manufacturers are based on firm commitments for the purchase of drug product. Amounts purchased under contractual inventory commitments from third-party contract manufacturers for the years ended December 31, 2014, 2013 and 2012 were $14.8 million, $15.0 million and $25.9 million, respectively. | |
In December 2009, the Company sold a majority interest in its subsidiary, Allelix, to a group of investors ("Investors"). NPS received $5.6 million in connection with the transactions in 2009. NPS is entitled to receive an additional Canadian $4.8 million, which would only be paid upon further investment in Allelix by the Investors, which would be expected to occur upon the successful completion of certain Canadian court proceedings. In connection with the transaction, the Company has indemnified the Investors for various items including product liabilities arising from the past operations of Allelix and has guaranteed that certain tax attributes exist as of the closing date. The maximum potential future payments related to these indemnifications or guarantees shall not exceed the amounts the Company has received in connection with the transaction ($5.1 million at December 31, 2014). | |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) - Note 17 | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selected Quarterly Financial Data | |||||||||||||
Selected Quarterly Financial Data (Unaudited) | (17) Selected Quarterly Financial Data (Unaudited) | ||||||||||||
The following is a summary of the quarterly results of operations for the years ended December 31, 2014 and 2013 (in thousands, except for per share amounts): | |||||||||||||
Quarters Ended | |||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||
(in thousands, except per share amounts) | |||||||||||||
2014 | |||||||||||||
Revenues | $ | 44,040 | $ | 56,127 | $ | 57,200 | $ | 66,695 | |||||
Operating (loss) income | -2,948 | 5,790 | 1,351 | 857 | |||||||||
Net (loss) income | -6,576 | 1,992 | -2,146 | -1,975 | |||||||||
Basic (loss) income per common share | $ | -0.06 | $ | 0.02 | $ | -0.02 | $ | -0.02 | |||||
Diluted (loss) income per common | |||||||||||||
and potential common share | $ | -0.06 | $ | 0.02 | $ | -0.02 | $ | -0.02 | |||||
2013 | |||||||||||||
Revenues | $ | 25,434 | $ | 36,505 | $ | 39,202 | $ | 54,451 | |||||
Operating (loss) income | -4,531 | -9,321 | 1,769 | 10,588 | |||||||||
Net (loss) income | -7,796 | -12,389 | -1,087 | 7,768 | |||||||||
Basic (loss) income per common share | $ | -0.09 | $ | -0.13 | $ | -0.01 | $ | 0.08 | |||||
Diluted (loss) income per common | |||||||||||||
and potential common share | $ | -0.09 | $ | -0.13 | $ | -0.01 | $ | 0.07 | |||||
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Notes to Financial Statements | |||||||||||||
Cash Equivalents | The Company considers all highly liquid investments with maturities at the date of purchase of three months or less to be cash equivalents. Cash equivalents at December 31, 2014 and 2013 are carried at cost and consist of commercial paper, money market funds, debt securities and other highly liquid instruments of approximately $42.3 million and $40.6 million, respectively. At December 31, 2014 and 2013, the book value of cash equivalents approximates fair value. | ||||||||||||
Marketable Investment Securities | The Company classifies its marketable investment securities as available-for-sale and are recorded at fair value. Unrealized holding gains and losses on available-for-sale securities, net of the related tax effect, are excluded from earnings and are reported as a separate component of stockholders' deficit until realized. A decline in the fair value below cost of available-for-sale securities that is deemed other than temporary is charged to results of operations, resulting in the establishment of a new cost basis for the security. Premiums and discounts are amortized or accreted into the cost basis over the life of the related security as adjustments to the yield using the effective-interest method. Interest income is recognized when earned. Realized gains and losses from the sale of marketable investment securities are based on the specific identification method and are included in results of operations and are determined on the specific- identification basis. | ||||||||||||
The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized loss. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive income. | |||||||||||||
For available-for-sale debt securities with unrealized losses, management performs an analysis to assess whether the Company intends to sell or whether it would more likely than not be required to sell the security before the expected recovery of the amortized cost basis. Where the Company intends to sell a security, or where it may be more likely than not be required to sell the security before the expected recovery of the amortized cost basis, the security's decline in fair value is deemed to be other-than-temporary and the full amount of the unrealized loss is recorded within earnings as an impairment loss. | |||||||||||||
Regardless of the Company's intent to sell a security, the Company performs additional analysis on all securities with unrealized losses to evaluate losses associated with the creditworthiness of the security. Credit losses are identified where the Company does not expect to receive cash flows sufficient to recover the amortized cost basis of a security. | |||||||||||||
Trade Accounts Receivable | Trade accounts receivable are recorded for research and development support performed, for license fees, milestone payments and royalty income earned, and for product sales, and do not bear interest. The Company determines an allowance for doubtful accounts based on assessed customers' ability to pay, historical write-off experience, and economic trends. Such allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable. The Company reviews its allowance for doubtful accounts monthly. The Company did not record any bad debt expense for the years ended December 31, 2014 2013 and 2012. At December 31, 2014 and 2013 the allowance for bad debts was zero. | ||||||||||||
Inventory | Inventories are stated at the lower of cost or estimated realizable value. The Company determines the cost of inventory using the first-in, first-out, or FIFO, method. The Company capitalizes inventory costs associated with the Company's products after regulatory approval when, based on management's judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. The Company periodically analyzes its inventory levels to identify inventory that may expire prior to expected sale or has a cost basis in excess of its estimated realizable value, and writes-down such inventories as appropriate. In addition, the Company's products are subject to strict quality control and monitoring which the Company performs throughout the manufacturing process. If certain batches or units of product no longer meet quality specifications or become obsolete due to expiration, the Company records a charge to cost of sales sold to write down such unmarketable inventory to zero. | ||||||||||||
Property and Equipment | Property and equipment is stated at cost. Depreciation and amortization of property and equipment is calculated on the straight-line method over estimated useful lives of 3 to 5 years. Leasehold improvements are amortized using the straight-line method over the shorter of the life of the asset or remainder of the lease term. | ||||||||||||
Goodwill and Intangibles | Goodwill represents the excess of costs over fair value of assets of businesses acquired. Intangibles represents acquired assets and are measured at fair value as of the date of acquisition. Goodwill and indefinite lived intangible assets acquired in a purchase or business combination and determined to have an indefinite useful life are not amortized, but instead tested for impairment at least annually or sooner if circumstances indicate that impairment might have occurred. Intangible assets with finite useful lives are amortized to their estimated residual values over their estimated useful lives and reviewed for impairment if certain events occur. As a result of the annual impairment test performed by management at year-end, it was noted that fair value significantly exceeded the carrying value of the reporting unit. The company considers itself a single reportable segment and reporting unit. | ||||||||||||
Income Taxes | The Company utilizes the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and tax bases of assets and liabilities using enacted tax rates in effect for years in which the temporary differences are expected to reverse. The Company establishes a valuation allowance when it believes it is more likely than not that deferred tax assets will not be realized. | ||||||||||||
The Company determines the need for a valuation allowance by assessing the probability of realizing deferred tax assets, taking into consideration all available positive and negative evidence, including historical operating results, expectations of future taxable income, carryforward periods available to the Company for tax reporting purposes, various income tax strategies and other relevant factors. Significant judgment is required in making this assessment and to the extent future expectations change, the Company would have to assess the recoverability of its deferred tax assets at that time. At December 31, 2014 and 2013, the Company maintained a full valuation allowance on its deferred tax assets. | |||||||||||||
At any one time the Company's tax returns for numerous tax years are subject to examination by U.S. federal, state and foreign taxing jurisdictions. The impact of an uncertain tax position taken or expected to be taken on an income tax return must be recognized in the financial statements at the largest amount that is more likely than not to be sustained. An uncertain income tax position will not be recognized in the financial statements unless it is more likely than not to be sustained. The Company adjusts these tax liabilities, as well as the related interest and penalties, based on the latest facts and circumstances, including recently enacted tax law changes, published rulings, court cases, and outcomes of tax audits. While the Company does not expect material changes, it is possible that its actual tax liability will differ from its established tax liabilities for unrecognized tax benefits, and the Company's effective tax rate may be materially impacted. The Company accounts for interest and penalties related to uncertain tax positions as a component of Income tax expense. | |||||||||||||
Revenue Recognition | The Company analyzes its revenue arrangements to determine whether the elements should be separated and accounted for individually or as a single unit of accounting. Allocation of revenue to individual elements which qualify for separate accounting is based on the estimated fair value of the respective elements. The Company earns revenue from license fees, milestone payments, royalty payments and product sales. | ||||||||||||
License fees. The Company defers and recognizes revenue from up-front nonrefundable license fees on a straight-line basis, unless another pattern is apparent, over the period wherein the Company has continuing involvement in the research and development project. The Company recognizes revenue from up-front nonrefundable license fees upon receipt when there is no continuing involvement in the research and development project. | |||||||||||||
Milestone payments. The Company recognizes revenue from its milestone payments as agreed-upon events representing the achievement of substantive steps in the development process are achieved and where the amount of the milestone payment approximates the fair value of achieving the milestone. | |||||||||||||
Royalties. Royalties from licensees are based on third-party sales of licensed products and are recorded in accordance with contract terms when sales results are reliably measurable and collectability is reasonably assured. | |||||||||||||
Product sales. The Company recognizes revenue from product sales when persuasive evidence of an arrangement exists, title to product and associated risk of loss has passed to the customer, the price is fixed or determinable, collection from the customer is reasonably assured, the Company has no further performance obligations, and returns can be reasonably estimated. Currently, product sales represent U.S. sales of Gattex, which was approved by the FDA in December 2012 and European sales of Revestive, which was approved in the EU in August 2012. | |||||||||||||
The Company's customers are primarily comprised of specialty pharmacies, distributors and other health care providers. In some cases, the Company may also sell Gattex or Revestive to governments and government agencies. | |||||||||||||
Because of factors such as the pricing of Gattex and Revestive, the limited number of patients and the lack of contractual return rights, Gattex and Revestive customers often carry limited inventory. The Company also monitors inventory within its sales channels to determine whether deferrals are appropriate based on factors such as inventory levels compared to demand, contractual terms and financial strength of distributors. | |||||||||||||
In addition to sales in countries where Gattex and Revestive are commercially available, the Company has also recorded revenue on sales for patients receiving Gattex or Revestive through named-patient programs. The relevant authorities or institutions in those countries have agreed to reimburse for product sold on a named-patient basis where Gattex or Revestive have not received final approval for commercial sale. | |||||||||||||
The Company records estimated rebates payable under governmental programs, including Medicaid in the U.S. and other programs outside the U.S., as a reduction of revenue at the time of product sale. The Company's calculations related to these rebate accruals require analysis of historical claim patterns and estimates of customer mix to determine which sales will be subject to rebates and the amount of such rebates. The Company updates its estimates and assumptions each period and record any necessary adjustments, which may have an impact on revenue in the period in which the adjustment is made. Generally, the length of time between product sale and the processing and reporting of the rebates is three to six months. | |||||||||||||
All U.S. prescriptions for Gattex, received directly by NPS from the patient's physician, are handled through NPS Advantage, the Company's data management and patient support program, which investigates and determines the patient's insurance coverage for Gattex. Once coverage is confirmed, NPS forwards the prescription to the specialty pharmacy (SP) who then re-confirms the coverage and dispenses Gattex to the patient. The Company sells Gattex directly to a limited number of SPs and a specialty distributor (SD) who dispense product to patients, hospitals or U.S. government entities. The Company invoices and records revenue when the SPs or SD receives Gattex from the Company's third-party logistics warehouse. The Company's SPs order product to fill prescriptions that have been approved for reimbursement by payers. | |||||||||||||
Specific considerations for Gattex sold in the U.S. are as follows: | |||||||||||||
Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements or legal requirements with public sector (e.g. Medicaid) benefit providers. The allowance for rebates is based on statutory discount rates and expected utilization. The Company's estimate for expected utilization for rebates is based in part on actual and pending prescriptions for which it has validated the insurance benefits. | |||||||||||||
Chargebacks: Chargebacks are discounts that occur when contracted customers purchase from the Company's SPs or SD. Contracted customers, which currently consist primarily of Public Health Service institutions and Federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The Company's SPs or SD, in turn, charge back the difference between the price initially paid by the SP or SD and the discounted price paid to the SP or SD by the customer. The allowance for chargebacks is based on actual and expected sales to the SPs and SD. | |||||||||||||
SP and SD Fees and Deductions: The Company's SPs and its SD are offered prompt payment discounts and are paid fees for their services and data. | |||||||||||||
Product returns: The Company will accept product that is damaged or defective when shipped directly to the SP or SD from the Company's third-party logistics provider or for product that is returned with more than two (2) months remaining until the expiration date from its SP or SD only. The Company will not provide any credit for product that has been labeled for or sent to a patient. Product returned is generally not resalable as the product must be temperature-controlled throughout the supply chain and such control is difficult to confirm. The Company makes a reasonable estimate of future potential product returns based on the number of prescriptions that have been approved for reimbursement and sent to an SP with each corresponding shipment of Gattex that has been sent to each respective SP. The Company also has the visibility to see current inventory levels and the current shelf life at the SPs and SD and has the ability to control the amount of product that is sold to the SPs and SD. At the end of each reporting period, the Company determines a product returns reserve by evaluating the units held in its distribution channel, the underlying demand for such units and the risk of potential product returns. | |||||||||||||
The following table summarizes the provisions, and credits/payments, for government rebates and chargebacks, distribution-related fees, and returns and other sales-related deductions (in thousands): | |||||||||||||
Returns and | |||||||||||||
Rebates and | Distribution- | Other Sales- | |||||||||||
Chargebacks | Related Fees | Related Deductions | Total | ||||||||||
Balance as of December 31, 2012 | $ | - | $ | - | $ | - | $ | - | |||||
Provision related to current period sales | 1,375 | 332 | 1,098 | 2,805 | |||||||||
Credits/payments | -262 | -185 | -857 | -1,304 | |||||||||
Balance as of December 31, 2013 | 1,113 | 147 | 241 | 1,501 | |||||||||
Provision related to current period sales | 3,929 | 461 | 2,217 | 6,607 | |||||||||
Credits/payments | -3,398 | -514 | -2,208 | -6,120 | |||||||||
Balance as of December 31, 2014 | $ | 1,644 | $ | 94 | $ | 250 | $ | 1,988 | |||||
Product sales are recorded net of accruals for estimated rebates, chargebacks, discounts, and other deductions (collectively, sales deductions) and returns. With the exception of allowances for prompt payment, allowances for sales deductions and returns are included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. | |||||||||||||
Research and Development Expenses | Research and development expenses, are expensed as incurred and are primarily comprised of the following types of costs incurred in performing research and development activities: clinical trial and related clinical manufacturing costs, contract services, outside costs, salaries and benefits, overhead and occupancy costs. | ||||||||||||
The Company analyzes how to characterize payments under collaborative agreements based on the relevant facts and circumstances related to each agreement. | |||||||||||||
Income (Loss) per Common Share | Basic income (loss) per common share is the amount of income (loss) for the period divided by the sum of the weighted average shares of common stock outstanding during the reporting period. Diluted income (loss) per common share is the amount of income (loss) for the period plus interest expense on convertible debt divided by the sum of weighted average shares of common stock outstanding during the reporting period and weighted average share that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares. | ||||||||||||
Share-Based Compensation | The Company accounts for share-based compensation in accordance with Financial Accounting Standards Board's Accounting Standards Codification ("ASC") 718, "Compensation - Stock Compensation" (ASC 718). Compensation cost is recorded based on the grant date fair value estimated using the Black-Scholes option-pricing for awards which vest based on a service or performance condition or the Monte Carlo simulation model for awards with market conditions. The Company recognizes compensation cost for awards on a straight-line basis over the requisite service period for the entire award, except for performance condition options where vesting is subject to the Company achieving certain performance criteria. Compensation costs for performance condition options will be recognized when the achievement of the performance criteria is probable. | ||||||||||||
Use of Estimates | Management of the Company has made estimates and assumptions relating to reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these consolidated financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP). Actual results could differ from those estimates. | ||||||||||||
Principles of Consolidation | The consolidated financial statements include the accounts of the Company, all subsidiaries in which it owns a majority voting interest including a variable interest entity in which the Company is the primary beneficiary. The Company eliminates all intercompany accounts and transactions in consolidation. | ||||||||||||
Accounting for Impairment of Long-Lived Assets | As described in (f), goodwill and indefinite lived intangible assets are tested for impairment at least annually. The Company reviews all other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets held and used is measured by a comparison of the carrying amount of an asset to future net cash flows (undiscounted) 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. Assets held for sale are reported at the lower of the carrying amount, or fair value, less costs to sell. | ||||||||||||
Foreign Currency Translation | Assets and liabilities of foreign operations with non-U.S. dollar functional currencies are translated into U.S. dollars at the period end exchange rates. Income, expenses and cash flows are translated at the average exchange rates prevailing during the period. Adjustments resulting from translation are reported as a separate component of accumulated other comprehensive loss in stockholders' deficit. Certain transactions are denominated in currencies other than the functional currency. Transaction gains and losses are included in other income (expense) for the period in which the transaction occurs. | ||||||||||||
Comprehensive Income (Loss) | Comprehensive income (loss) consists of net income (loss) and other gains and losses affecting stockholders' equity (deficit) that, under U.S. GAAP, are excluded from net income (loss). For the Company, these consist of net unrealized gains or losses on marketable investment securities and foreign currency translation gains and losses. Accumulated other comprehensive income (loss) as of December 31, 2014 and 2013 consists of accumulated net unrealized gains on marketable investment securities of $74,000 and unrealized losses of $15,000, respectively, and unrealized foreign currency translation losses of $2.2 million and unrealized gains of $71,000, respectively. | ||||||||||||
Concentration of Suppliers | The Company has entered into agreements with contract manufacturers to manufacture clinical and commercial supplies of its product candidates. In some instances, the Company is dependent upon a single supplier. The loss of one of these suppliers could have a material adverse effect upon the Company's operations. | ||||||||||||
Leases | The Company leases its facilities under terms of individual lease agreements which provides for rent holidays and escalating payments. Rent under operating leases is recognized on a straight-line basis beginning with lease commencement through the end of the lease term. The Company records deferred lease payments in accrued expenses and other current liabilities and in other long-term liabilities. | ||||||||||||
Deferred Financing Costs and Deferred License Fees | Deferred Financing Costs | ||||||||||||
Costs incurred in connection with the issuance of the Sensipar Notes and under the agreements with DRI, in which the Company sold to DRI its right to receive future royalty payments arising from sales of REGPARA under its license agreement with Kyowa Hakko Kirin and a future royalty in the mid-single digits from the sales of PTH, are amortized using the effective-interest method over the same period and in the same manner as the related debt. The amortization of deferred financing costs is included in Interest expense in the Consolidated Statements of Operations. | |||||||||||||
(t) Deferred License Fees | |||||||||||||
Cost of license fees are deferred if they are a direct cost of a revenue generating activity and that revenue is being deferred. These deferred costs are amortized over the same period and in the same manner as the related deferred revenue. The amortization of deferred license fees is included in Cost of license fees in the Consolidated Statements of Operations. | |||||||||||||
Fair Value of Financial Instruments | The Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: | ||||||||||||
Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. | |||||||||||||
Level 2- Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). | |||||||||||||
Level 3- Inputs are unobservable and reflect the Company's assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. | |||||||||||||
The fair values of the Company's convertible notes were estimated using the (i) terms of the convertible notes; (ii) rights, preferences, privileges, and restrictions of the underlying security; (iii) time until any restriction(s) are released; (iv) fundamental financial and other characteristics of the Company; (v) trading characteristics of the underlying security (exchange, volume, price, and volatility); and (vi) precedent sale transactions. The fair values of the Company's non-recourse Sensipar notes, PTH 1-84-secured debt and REGPARA-secured debt were estimated using a discounted cash flow model. Within the hierarchy of fair value measurements, these are Level 3 fair values. | |||||||||||||
Sales_Related_Deductions_Activ
Sales Related Deductions Activity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Sales Related Deductions Activity Tables | |||||||||||||
Sales Related Deductions Activity | The following table summarizes the provisions, and credits/payments, for government rebates and chargebacks, distribution-related fees, and returns and other sales-related deductions (in thousands): | ||||||||||||
Returns and | |||||||||||||
Rebates and | Distribution- | Other Sales- | |||||||||||
Chargebacks | Related Fees | Related Deductions | Total | ||||||||||
Balance as of December 31, 2012 | $ | - | $ | - | $ | - | $ | - | |||||
Provision related to current period sales | 1,375 | 332 | 1,098 | 2,805 | |||||||||
Credits/payments | -262 | -185 | -857 | -1,304 | |||||||||
Balance as of December 31, 2013 | 1,113 | 147 | 241 | 1,501 | |||||||||
Provision related to current period sales | 3,929 | 461 | 2,217 | 6,607 | |||||||||
Credits/payments | -3,398 | -514 | -2,208 | -6,120 | |||||||||
Balance as of December 31, 2014 | $ | 1,644 | $ | 94 | $ | 250 | $ | 1,988 | |||||
Fair_Value_Measurement_Tables
Fair Value Measurement (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Notes to Financial Statements | ||||||||||||||
Fair Value Measurement (Tables) | In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company's financial assets (all marketable investment securities) that are required to be measured at fair value as of December 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||
As of December 31, 2014: | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Certificate of deposits | $ | - | $ | 6,615 | $ | - | $ | 6,615 | ||||||
Corporate debt | - | 88,733 | - | 88,733 | ||||||||||
Gevernment agency debt | - | 3,278 | - | 3,278 | ||||||||||
Money market funds | 42,349 | - | - | 42,349 | ||||||||||
Total assets at fair value | $ | 42,349 | $ | 98,626 | $ | - | $ | 140,975 | ||||||
As of December 31, 2013: | Level 1 | Level 2 | Level 3 | Total | ||||||||||
Certificate of deposits | $ | - | $ | 13,020 | $ | - | $ | 13,020 | ||||||
Corporate debt | - | 91,887 | - | 91,887 | ||||||||||
Gevernment agency debt | - | 27,131 | - | 27,131 | ||||||||||
Money market funds | 23,043 | - | - | 23,043 | ||||||||||
Total assets at fair value | $ | 23,043 | $ | 132,038 | $ | - | $ | 155,081 | ||||||
Fair and Carrying Value of Debt Instruments | The fair and carrying value of our debt instruments are detailed as follows (in thousands): | |||||||||||||
As of December 31, 2014 | As of December 31, 2013 | |||||||||||||
Fair | Carrying | Fair | Carrying | |||||||||||
Value | Value | Value | Value | |||||||||||
5.75% Convertible Notes | $ | - | $ | - | $ | 92,338 | $ | 16,545 | ||||||
Sensipar Notes | 26,312 | 26,230 | 54,097 | 54,395 | ||||||||||
PTH 1-84-Secured Debt | 54,730 | 42,790 | 50,058 | 42,790 | ||||||||||
Regpara-Secured Debt | 29,249 | 30,986 | 37,348 | 35,202 | ||||||||||
Total | $ | 110,291 | $ | 100,006 | $ | 233,841 | $ | 148,932 | ||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Notes to Financial Statements | |||||||||||||||||||
Marketable investment securities | The following is a summary of the Company's marketable investment securities (in thousands): | ||||||||||||||||||
Gross | Gross | ||||||||||||||||||
unrealized | unrealized | ||||||||||||||||||
Amortized | holding | holding | Fair | ||||||||||||||||
As of December 31, 2014: | cost | gains | losses | value | |||||||||||||||
Debt securities: | |||||||||||||||||||
Corporate | $ | 95,423 | $ | 3 | $ | -78 | $ | 95,348 | |||||||||||
Government agency | 3,277 | 1 | - | 3,278 | |||||||||||||||
Total marketable investment securites | $ | 98,700 | $ | 4 | $ | -78 | $ | 98,626 | |||||||||||
Gross | Gross | ||||||||||||||||||
unrealized | unrealized | ||||||||||||||||||
Amortized | holding | holding | Fair | ||||||||||||||||
As of December 31, 2013: | cost | gains | losses | value | |||||||||||||||
Debt securities: | |||||||||||||||||||
Corporate | $ | 103,175 | $ | 23 | $ | -60 | $ | 103,138 | |||||||||||
Government agency | 26,110 | 22 | - | 26,132 | |||||||||||||||
Total marketable investment securites | $ | 129,285 | $ | 45 | $ | -60 | $ | 129,270 | |||||||||||
Marketable investment securities available for sale in an unrealized loss position | Marketable investment securities available for sale in an unrealized loss position as of December 31, 2014 and 2013 are summarized as follows (in thousands): | ||||||||||||||||||
Held for less than 12 months | Held for more than 12 months | Total | |||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||
Fair value | losses | Fair value | losses | Fair value | losses | ||||||||||||||
31-Dec-14 | |||||||||||||||||||
Available for Sale: | |||||||||||||||||||
Debt securities: | |||||||||||||||||||
Corporate | $ | 90,327 | $ | 78 | $ | - | $ | - | $ | 90,327 | $ | 78 | |||||||
Government agency | - | - | - | - | - | - | |||||||||||||
$ | 90,327 | $ | 78 | $ | - | $ | - | $ | 90,327 | $ | 78 | ||||||||
31-Dec-13 | |||||||||||||||||||
Available for Sale: | |||||||||||||||||||
Debt securities: | |||||||||||||||||||
Corporate | $ | 74,407 | $ | 56 | $ | 5,732 | $ | 4 | $ | 80,139 | $ | 60 | |||||||
Government agency | - | - | - | - | - | - | |||||||||||||
$ | 74,407 | $ | 56 | $ | 5,732 | $ | 4 | $ | 80,139 | $ | 60 | ||||||||
Maturities of marketable investment securities | Summary of Contractual Maturities | ||||||||||||||||||
Maturities of marketable investment securities are as follows at December 31, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||||
Amortized | Amortized | ||||||||||||||||||
cost | Fair value | cost | Fair value | ||||||||||||||||
Due within one year | $ | 95,499 | $ | 95,430 | $ | 103,280 | $ | 103,266 | |||||||||||
Due after one year through five years | 3,201 | 3,196 | 26,005 | 26,004 | |||||||||||||||
Due after five years through ten years | - | - | - | - | |||||||||||||||
Due after ten years | - | - | - | - | |||||||||||||||
Total debt securities | $ | 98,700 | $ | 98,626 | $ | 129,285 | $ | 129,270 | |||||||||||
Proceeds from maturities and sales of available for sale securities and resulting gain and losses | The proceeds from maturities and sales of available for sale securities and resulting realized gains and losses, were as follows (in thousands): | ||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||
Proceeds from sales and maturities | $ | 134,667 | $ | 107,871 | $ | 119,507 | |||||||||||||
Realized gains | 12 | 4 | 4 | ||||||||||||||||
Realized losses | - | - | - | ||||||||||||||||
Inventory_Tables
Inventory (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Tables | ||||||||
Inventory | Inventories are stated at the lower of cost or market. Inventory is as follows at December 31, 2014 and 2013 (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Raw materials | $ | 34,020 | $ | 29,330 | ||||
Finished goods | 2,795 | 705 | ||||||
Total inventory | $ | 36,815 | $ | 30,035 | ||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property And Equipment Net Tables | ||||||||||
Property and equipment (Tables) | Property and equipment is recorded at cost and consists of the following (in thousands): | |||||||||
December 31, | ||||||||||
2014 | 2013 | |||||||||
Office Equipment | $ | 8,346 | $ | 5,519 | ||||||
Laboratory Equipment | 223 | 216 | ||||||||
Leasehold Improvements | 2,109 | 2,023 | ||||||||
Total property and equipment | 10,678 | 7,758 | ||||||||
Less accumulated depreciation | -4,892 | -3,356 | ||||||||
Total equipment, net | $ | 5,786 | $ | 4,402 | ||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Leases Tables | ||||||||
Leases (Tables) | The future lease payments under non-cancelable operating leases as of December 31, 2014 are as follows (in thousands): | |||||||
Operating | ||||||||
leases | ||||||||
Year ending December 31: | ||||||||
2015 | $ | 3,154 | ||||||
2016 | 1,835 | |||||||
2017 | 4 | |||||||
2018 | - | |||||||
2019 | - | |||||||
Total minimum lease payments | $ | 4,993 | ||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Notes to Financial Statements | |||||||
Long-term Debt (Tables) | The following table reflects the carrying value of our long-term debt under various financing arrangements as of December 31, 2014 and 2013 (in thousands): | ||||||
December 31, | |||||||
2014 | 2013 | ||||||
Convertible notes | $ | - | $ | 16,545 | |||
Non-recourse debt | 100,006 | 132,387 | |||||
Total debt | 100,006 | 148,932 | |||||
Less current portion | 10,252 | 25,297 | |||||
Total long-term debt | $ | 89,754 | $ | 123,635 | |||
Schedule of Contractual Maturities of Long-term Debt (Tables) | The aggregate contractual maturities of long-term debt, including estimated maturities of the Non-recourse Debt, due subsequent to December 31, 2014 are as follows (in thousands): | ||||||
Year ending December 31: | |||||||
2015 | $ | 31,964 | |||||
2016 | 5,290 | ||||||
2017 | 4,733 | ||||||
2018 | 5,177 | ||||||
2019 | 26,894 | ||||||
Thereafter | 25,948 | ||||||
Total long-term debt | $ | 100,006 | |||||
StockBased_Compensation_And_Em
Stock-Based Compensation And Employee Purchase Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Stock-based employee compensation expense | The following table summarizes the effect of compensation cost arising from share-based payment arrangements in the Company's Statements of Operations for the years ended December 31, 2014, 2013 and 2012 for the Company's stock option plans, the ESPP and other share-based awards (in thousands): | |||||||||||
Years ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Research and development | $ | 5,657 | $ | 4,107 | $ | 3,343 | ||||||
Selling, general and administrative | 9,346 | 5,330 | 4,205 | |||||||||
Amounts charged against income, before | ||||||||||||
income tax expense | $ | 15,003 | $ | 9,437 | $ | 7,548 | ||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Years ended December 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Dividend yield | — | — | — | |||||||||
Expected volatility | 57.98% — 60.69% | 59.15% — 60.69% | 61.22% — 67.58% | |||||||||
Risk-free interest rate | 1.4% — 1.8% | 0.7% — 3.7% | 0.6% — 1.1% | |||||||||
Expected term (in years) | 5.2 — 5.6 | 5.2 — 6.0 | 5.1 — 5.9 | |||||||||
Stock Options | ||||||||||||
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | A summary of activity related to aggregate stock options under all plans is indicated in the following table (in thousands, except per share amounts): | |||||||||||
Year ended December 31, 2014 | ||||||||||||
Weighted | Weighted | |||||||||||
Number | average | average remaining | Aggregate | |||||||||
of | exercise | contractual | intrinsic | |||||||||
options | price | term | value | |||||||||
(in thousands) | (in years) | (in thousands) | ||||||||||
Options outstanding at beginning | ||||||||||||
of year | 6,656 | $ | 8.03 | |||||||||
Options granted | 1,269 | 32.80 | ||||||||||
Options exercised | 1,245 | 7.48 | ||||||||||
Options forfeited/expired | 559 | 11.56 | ||||||||||
Options outstanding at end of year | 6,121 | 12.96 | 7.21 | $ | 141,011 | |||||||
Vested and expected to vest | 5,838 | 12.53 | 7.14 | $ | 136,909 | |||||||
Options exercisable at end of year | 3,246 | $ | 7.16 | 6.11 | $ | 92,865 | ||||||
Restricted Stock Units | ||||||||||||
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | A summary of activity related to aggregate restricted stock, restricted stock units and deferred stock units as of December 31, 2014, is indicated in the following table (shares in thousands, except per share amounts): | |||||||||||
Number of | Weighted-average | |||||||||||
shares | grant date fair value | |||||||||||
Nonvested at beginning of year | 752 | $ | 8.89 | |||||||||
Granted | 394 | 31.07 | ||||||||||
Vested | -229 | 9.19 | ||||||||||
Forfeited | -59 | 12.40 | ||||||||||
Nonvested at December 31, 2014 | 858 | $ | 18.75 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes Tables | ||||||||||
Components of loss before income taxes, domestic and foreign | The components of loss before income taxes for the years ended December 31, 2014, 2013 and 2012 includes the following (in thousands): | |||||||||
Years ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
United States | $ | 36,829 | $ | -9,748 | $ | -18,735 | ||||
Foreign | -44,768 | -3,574 | - | |||||||
Loss before income taxes | $ | -7,939 | $ | -13,322 | $ | -18,735 | ||||
Reconciliation of U.S. statutory income tax rate to company's effective tax rate | Income tax differed from the amounts computed by applying the U.S. federal income tax rate of 34% to loss before income tax expense (benefit) as a result of the following (in thousands): | |||||||||
Years ended December 31, | ||||||||||
2014 | 2013 | 2012 | ||||||||
Computed "expected" tax benefit | $ | -2,699 | $ | -4,529 | $ | -6,370 | ||||
IRC §382 adjustment | - | 6,575 | 59,822 | |||||||
Change in the valuation allowance for deferred tax assets | ||||||||||
attributable to operations and other adjustments | -7,158 | 2,840 | -42,124 | |||||||
Research credit | -9,217 | -12,237 | -10,231 | |||||||
State income taxes, net of federal tax effect | 527 | 182 | - | |||||||
Equity based compensation expense | 1,310 | 678 | 513 | |||||||
Intercompany license of intellectual property | - | 5,440 | - | |||||||
Foreign tax rate differences | 15,358 | 940 | - | |||||||
Non-recourse debt | 2,056 | -78 | -1,663 | |||||||
Other | 589 | 371 | 53 | |||||||
$ | 766 | $ | 182 | $ | - | |||||
Schedule of tax effects of temporary differences that give rise to deferred tax assets and liabilities | The tax effects of temporary differences that give rise to the deferred tax assets at December 31, 2014 and 2013 are presented below (in thousands): | |||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Net operating loss carryforward | $ | 109,751 | $ | 132,101 | ||||||
Research credit carryforward | 82,633 | 68,277 | ||||||||
Capital loss carryforward | 4,101 | 4,186 | ||||||||
Non-recourse debt | 26,060 | 27,769 | ||||||||
Acquired intellectual property | 26,344 | 29,452 | ||||||||
Capitalization of inventory | 11,021 | 9,429 | ||||||||
Stock compensation expense | 4,479 | 2,935 | ||||||||
Accrued compensation | 3,269 | 3,117 | ||||||||
Other | 697 | 555 | ||||||||
Total deferred tax assets | 268,355 | 277,821 | ||||||||
Less valuation allowance | -268,355 | -277,821 | ||||||||
Deferred tax assets | - | - | ||||||||
Deferred tax liabilities | - | - | ||||||||
Net deferred tax asset (liability) | $ | - | $ | - | ||||||
Reconciliation of beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amounts of gross unrecognized tax benefits (excluding interest and penalties) is as follows (in thousands): | |||||||||
Unrecognized | ||||||||||
Tax Benefits | ||||||||||
Balance as of January 1, 2013 | $ | 4,614 | ||||||||
Additions for current year tax positions | - | |||||||||
Reductions for prior year tax positions | -677 | |||||||||
Balance as of December 31, 2013 | 3,937 | |||||||||
Additions for current year tax positions | - | |||||||||
Reductions for prior year tax positions | - | |||||||||
Balance as of December 31, 2014 | $ | 3,937 | ||||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Selected Quarterly Financial Data Tables | |||||||||||||
Selected Quarterly Financial Data (Unaudited) (Tables) | The following is a summary of the quarterly results of operations for the years ended December 31, 2014 and 2013 (in thousands, except for per share amounts): | ||||||||||||
Quarters Ended | |||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||
(in thousands, except per share amounts) | |||||||||||||
2014 | |||||||||||||
Revenues | $ | 44,040 | $ | 56,127 | $ | 57,200 | $ | 66,695 | |||||
Operating (loss) income | -2,948 | 5,790 | 1,351 | 857 | |||||||||
Net (loss) income | -6,576 | 1,992 | -2,146 | -1,975 | |||||||||
Basic (loss) income per common share | $ | -0.06 | $ | 0.02 | $ | -0.02 | $ | -0.02 | |||||
Diluted (loss) income per common | |||||||||||||
and potential common share | $ | -0.06 | $ | 0.02 | $ | -0.02 | $ | -0.02 | |||||
2013 | |||||||||||||
Revenues | $ | 25,434 | $ | 36,505 | $ | 39,202 | $ | 54,451 | |||||
Operating (loss) income | -4,531 | -9,321 | 1,769 | 10,588 | |||||||||
Net (loss) income | -7,796 | -12,389 | -1,087 | 7,768 | |||||||||
Basic (loss) income per common share | $ | -0.09 | $ | -0.13 | $ | -0.01 | $ | 0.08 | |||||
Diluted (loss) income per common | |||||||||||||
and potential common share | $ | -0.09 | $ | -0.13 | $ | -0.01 | $ | 0.07 | |||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Cash Equivalents Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Summary Of Significant Accounting Policies Cash Equivalents Narrative Details | ||
Cash equivalents | $42.30 | $40.60 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Trade Accounts Receivable Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary Of Significant Accounting Policies Trade Accounts Receivable Narrative Details | |||
Allowance for bad debts | $0 | $0 | |
Bad debt expense | $0 | $0 | $0 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Property And Equipment Useful Lives Narrative) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Property and Equipment, Useful Life | 3 years |
Maximum | |
Property and Equipment, Useful Life | 5 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Sales Related Deductions Activity) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Activity of Sales Related Deductions [Roll Forward] | |||
Balance | $1,501 | $1,988 | $0 |
Provision related to current period sales | 6,607 | 2,805 | |
Credits/payments | -6,120 | -1,304 | |
Rebates and Chargebacks | |||
Activity of Sales Related Deductions [Roll Forward] | |||
Balance | 1,644 | 1,113 | 0 |
Provision related to current period sales | 3,929 | 1,375 | |
Credits/payments | -3,398 | -262 | |
Distribution Related Fees | |||
Activity of Sales Related Deductions [Roll Forward] | |||
Balance | 94 | 147 | 0 |
Provision related to current period sales | 461 | 332 | |
Credits/payments | -514 | -185 | |
Returns and Other Sales Related Deductions | |||
Activity of Sales Related Deductions [Roll Forward] | |||
Balance | 250 | 241 | 0 |
Provision related to current period sales | 2,217 | 1,098 | |
Credits/payments | ($2,208) | ($857) |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Comprehensive Income (Loss) Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Summary Of Significant Accounting Policies Comprehensive Income Loss Narrative Details | ||
Accumulated net unrealized gains (losses) on marketable investment securities | $74,000 | ($15,000) |
Accumulated foreign currency translation (losses) gains | ($2,200,000) | $71,000 |
Collaborative_and_License_Agre1
Collaborative and License Agreements ( Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Amgen Inc. | |||
Year of agreement | 1996 | ||
Number of days to terminate upon written notice to the Company | 90 | ||
Percentage of Company costs to develop product | 0.00% | ||
Nonrefundable license fee received | $10 | ||
Total milestone payments under the agreement payable to the Company | 26 | ||
Future milestone payments outside the Company's control | 5 | ||
Next future milestone payment outside the Company's control | 5 | ||
Total milestone payments paid to the Company to date | 21 | ||
Milestone payments received by the Company | 0 | 0 | 0 |
Recognized royalties from product sales received by the Company | 111.9 | 112.9 | 89.3 |
Sale of royalty rights | 0 | 0 | 25 |
GlaxoSmithKline | |||
Year of agreement | 2011 | ||
Total milestone payments under the agreement payable to the Company | 11.5 | ||
Future milestone payments outside the Company's control | 1 | ||
Total milestone payments paid to the Company to date | 0 | ||
Kyowa Hakko Kirin | |||
Year of agreement | 1995 | ||
Number of days to terminate upon written notice to the Company | 90 | ||
Percentage of Company costs to develop product | 0.00% | ||
Nonrefundable license fee received | 5 | ||
Total milestone payments under the agreement payable to the Company | 13 | ||
Research support payments under the agreement | 7 | ||
Total milestone payments paid to the Company to date | 13 | ||
Research support payments paid to the Company to date | 7 | ||
Milestone payments received by the Company | 0 | 0 | 0 |
Recognized royalties from product sales received by the Company | 8.5 | 8 | 8.7 |
Takeda Teduglutide | |||
Year of agreement | 2007 | ||
Number of days to terminate upon written notice to the Company | 180 or 365 | ||
Percentage of Company costs to develop product | 50.00% | ||
Nonrefundable license fee received | 35 | ||
Total milestone payments under the agreement payable to the Company | 170 | ||
Total milestone payments payable upon the achievement of certain pre-specified product development milestones | 150 | ||
Total milestone payments payable upon the achievement of certain pre-specified sales-based milestones | 20 | ||
Company payments to licensor to date | 6.6 | ||
Future milestone payments outside the Company's control | 5 | ||
Total milestone payments paid to the Company to date | 40 | ||
Milestone payments received by the Company | 5 | 0 | 0 |
Company payments to licensor | 2.4 | ||
Takeda Preotact | |||
Year of agreement | 2004 | ||
Number of days to terminate upon written notice to the Company | 180 | ||
Total milestone payments under the agreement payable to the Company | 22 | ||
Total milestone payments payable upon the achievement of certain pre-specified product development milestones | 0.3 | ||
Total milestone payments payable upon the achievement of certain pre-specified sales-based milestones | 14.5 | ||
Future milestone payments outside the Company's control | 14.8 | ||
Next future milestone payment outside the Company's control | 0.3 | ||
Total milestone payments paid to the Company to date | 7.1 | ||
Recognized royalties from product sales received by the Company | 9.1 | 0 | 4.8 |
Janssen Pharmaceuticals, Inc. | |||
Year of agreement | 2006 | ||
Number of days to terminate upon written notice to the Company | 60 | ||
Percentage of Company costs to develop product | 0.00% | ||
Nonrefundable license fee received | 8 | ||
Recognized royalties from product sales received by the Company | 2.6 | 2.9 | 2.8 |
Hoffman-La Roche Inc. and F. Hoffmann-La Roche Ltd. | |||
Year of agreement | 2008 | ||
Number of days to terminate upon written notice to the Company | 30 | ||
Percentage of Company costs to develop product | 0.00% | ||
Nonrefundable license fee received | 2 | ||
Total milestone payments paid to the Company to date | 0.3 | ||
Milestone payments received by the Company | 0.3 | 0 | 0 |
Recognized royalties from product sales received by the Company | 0 | 0 | 0 |
In-License and Purchase Agreements | |||
Company maximum royalties to be paid on sales of cinacalcet HCl | 15 | ||
Royalties payable accrued on sales of cinacalcet HCl, to date | 15 | ||
Royalties paid on sales of cinacalcet HCl, to date | 10.4 | ||
Annual upper limit of royalty payments on sales of cinacalcet HCl | 1 | ||
Royalties recorded in other liabilites on sales of cinacalcet HCl | 3.6 | ||
Royalties recorded in accrued expenses and other liabilites on sales of cinacalcet HCl | $1 |
Net_Income_Loss_Per_Share_Narr
Net Income (Loss) Per Share (Narrative) (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Anti-dilutive shares | 5,600 | 7,200 | 8,000 |
Convertible Notes Payable | |||
Anti-dilutive shares | 817 | 3,000 | 3,000 |
Stock Options Restricted Stock And Restricted Stock Units | |||
Anti-dilutive shares | 4,800 | 4,100 | 5,000 |
Fair_Value_Measurement_Securit
Fair Value Measurement (Securities) (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Certificates of deposit | $6,615 | $13,020 |
Corporate | 88,733 | 91,887 |
Government agency debt | 3,278 | 27,131 |
Money market funds | 42,349 | 23,043 |
Total assets at fair value | 140,975 | 155,081 |
Level 1 | ||
Certificates of deposit | 0 | 0 |
Corporate | 0 | 0 |
Government agency debt | 0 | 0 |
Money market funds | 42,349 | 23,043 |
Total assets at fair value | 42,349 | 23,043 |
Level 2 | ||
Certificates of deposit | 6,615 | 13,020 |
Corporate | 88,733 | 91,887 |
Government agency debt | 3,278 | 27,131 |
Money market funds | 0 | 0 |
Total assets at fair value | 98,626 | 132,038 |
Level 3 | ||
Certificates of deposit | 0 | 0 |
Corporate | 0 | 0 |
Government agency debt | 0 | 0 |
Money market funds | 0 | 0 |
Total assets at fair value | $0 | $0 |
Fair_Value_Measurement_Debt_In
Fair Value Measurement (Debt Instruments) (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt instruments, fair value | $110,291 | $233,841 |
Debt instruments, carrying value | 100,006 | 148,932 |
Convertible Notes | ||
Debt instruments, fair value | 0 | 92,338 |
Debt instruments, carrying value | 0 | 16,545 |
Sensipar Notes | ||
Debt instruments, fair value | 26,312 | 54,097 |
Debt instruments, carrying value | 26,230 | 54,395 |
rhPTH 1-84-Secured Debt | ||
Debt instruments, fair value | 54,730 | 50,058 |
Debt instruments, carrying value | 42,790 | 42,790 |
Regpara-Secured Debt | ||
Debt instruments, fair value | 29,249 | 37,348 |
Debt instruments, carrying value | $30,986 | $35,202 |
Fair_Value_Measurement_Liabili
Fair Value Measurement (Liabilities Narrative) (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value Measurement Liabilities Narrative Details 3 | ||
Brigham Women's Hospital royalty liability, fair value | $3.70 | $4.30 |
Brigham Women's Hospital royalty liability, carrying value | $4.60 | $5.60 |
Financial_Instruments_Fair_Val
Financial Instruments (Fair Value Of Investments) (Details 1) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Amortized cost | $98,700 | $129,285 |
Gross unrealized holding gains | 4 | 45 |
Gross unrealized holding losses | -78 | -60 |
Fair value | 98,626 | 129,270 |
Corporate | ||
Amortized cost | 95,423 | 103,175 |
Gross unrealized holding gains | 3 | 23 |
Gross unrealized holding losses | -78 | -60 |
Fair value | 95,348 | 103,138 |
Government agency | ||
Amortized cost | 3,277 | 26,110 |
Gross unrealized holding gains | 1 | 22 |
Gross unrealized holding losses | 0 | 0 |
Fair value | $3,278 | $26,132 |
Financial_Instruments_Fair_Val1
Financial Instruments (Fair Value Of Investments) (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Marketable investment securities available for sale in an unrealized loss position | ||
In Loss Position for Less Than 12 Months, Fair Value | $90,327 | $74,407 |
In Loss Position for Less Than 12 Months, Gross Unrealized Losses | 78 | 56 |
In Loss Position for More Than 12 Months, Fair Value | 0 | 5,732 |
In Loss Position for More Than 12 Months, Gross Unrealized Losses | 0 | 4 |
Total, Fair Value | 90,327 | 80,139 |
Total, Gross Unrealized Losses | 78 | 60 |
Corporate | ||
Marketable investment securities available for sale in an unrealized loss position | ||
In Loss Position for Less Than 12 Months, Fair Value | 90,327 | 74,407 |
In Loss Position for Less Than 12 Months, Gross Unrealized Losses | 78 | 56 |
In Loss Position for More Than 12 Months, Fair Value | 0 | 5,732 |
In Loss Position for More Than 12 Months, Gross Unrealized Losses | 0 | 4 |
Total, Fair Value | 90,327 | 80,139 |
Total, Gross Unrealized Losses | 78 | 60 |
Government agency | ||
Marketable investment securities available for sale in an unrealized loss position | ||
In Loss Position for Less Than 12 Months, Fair Value | 0 | 0 |
In Loss Position for Less Than 12 Months, Gross Unrealized Losses | 0 | 0 |
In Loss Position for More Than 12 Months, Fair Value | 0 | 0 |
In Loss Position for More Than 12 Months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 0 |
Total, Gross Unrealized Losses | $0 | $0 |
Financial_Instruments_Contract
Financial Instruments (Contractual Maturities) (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments Contractual Maturities Details 3 | ||
Due within one year, amortized cost | $95,499 | $103,280 |
Due after one year through five years, amortized cost | 3,201 | 26,005 |
Due after five years through ten years, amortized cost | 0 | 0 |
Due within one year, fair value | 95,430 | 103,266 |
Due after one year through five years, fair value | 3,196 | 26,004 |
Due after five years through ten years, fair value | 0 | 0 |
Total debt securities, amortized cost | 98,700 | 129,285 |
Total debt securities, fair value | $98,626 | $129,270 |
Financial_Instruments_Proceeds
Financial Instruments (Proceeds) (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial Instruments Proceeds Details 4 | |||
Proceeds from sales and maturities | $134,667 | $107,871 | $119,507 |
Realized gains | 12 | 4 | 4 |
Realized losses | $0 | $0 | $0 |
Financial_Instruments_Narrativ
Financial Instruments (Narrative) (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Financial Instruments Narrative Details 5 | ||
Impairment losses | $0 | $0 |
Inventory_Details
Inventory (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Details | ||
Raw materials | $34,020 | $29,330 |
Finished goods | 2,795 | 705 |
Total inventory | $36,815 | $30,035 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property And Equipment Net Details | ||
Office Equipment | $8,346 | $5,519 |
Laboratory Equipment | 223 | 216 |
Leasehold Improvements | 2,109 | 2,023 |
Total property and equipment | 10,678 | 7,758 |
Less accumulated depreciation | -4,892 | -3,356 |
Total equipment, net | $5,786 | $4,402 |
Leases_Details
Leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Leases Details | |
2015 | $3,154 |
2016 | 1,835 |
2017 | 4 |
2018 | 0 |
2019 | 0 |
Total minimum payments | $4,993 |
Longterm_Debt_Details_1
Long-term Debt (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Debt Details 1 | ||
Convertible notes | $0 | $16,545 |
Non-recourse debt | 100,006 | 132,387 |
Total debt | 100,006 | 148,932 |
Less current portion | 10,252 | 25,297 |
Total long-term debt | $89,754 | $123,635 |
Longterm_Debt_Convertible_Note
Long-term Debt Convertible Notes (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Apr. 30, 2014 | Dec. 31, 2014 |
Long-term Debt Convertible Notes Narrative Details | ||
Conversion of 5.75% convertible notes, shares | 3,041,451 | |
Stock Issued During Period, Per Share, New Issues | $5.44 | |
Conversion of 5.75% convertible notes | $16,500 | $16,535 |
Longterm_Debt_Narrative_Detail
Long-term Debt (Narrative) (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest rate | 5.75% | |
Sensipar and Mimpara-Secured Non-recourse Debt Sensipar Notes | ||
Debt outstanding | $26.20 | $54.40 |
Debt classified as current | 7.4 | 6.8 |
Month and year of issue | 30-Sep-11 | |
Month and year of amendment | Jun-12 | |
Interest rate | 9.00% | |
Effective interest rate | 9.00% | |
Debt amount originally issued | 145 | |
Net proceeds upon original issuance | 144.9 | |
Interest accrued | 0.3 | 0.6 |
Quarterly limit of royalty offset of the royalty advance | 8 | |
rhPTH 1-84-Secured Non-recourse Debt | ||
Debt outstanding | 42.8 | 42.8 |
Month and year of issue | 31-Jul-07 | |
Month and year of amendment | 12/31/13 | |
Debt amount originally issued | 50 | |
Net proceeds upon original issuance | 50 | |
Interest accrued | 6.5 | 0 |
Interest and principal paid to date | 45.5 | |
REGPARA-Secured Non-recourse Debt | ||
Debt outstanding | 31 | 35.2 |
Debt classified as current | 2.8 | 1.9 |
Month and year of issue | 28-Feb-10 | |
Interest rate | 15.60% | |
Effective interest rate | 15.60% | |
Debt amount originally issued | 38.4 | |
Net proceeds upon original issuance | 38.4 | |
Deferred debt issuance costs amortization period, in years | 10 years | |
Interest accrued | 0.6 | 1.1 |
Interest and principal paid to date | $36.20 |
Longterm_Debt_Maturities_Detai
Long-term Debt (Maturities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Debt Maturities Details | ||
2015 | $31,964 | |
2016 | 5,290 | |
2017 | 4,733 | |
2018 | 5,177 | |
2019 | 26,894 | |
Thereafter | 25,948 | |
Total long-term debt | $100,006 | $148,932 |
Takeda_Termination_and_Transit1
Takeda Termination and Transition Agreement (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Takeda Termination And Transition Agreement Narrative Details | |||
Shares of Common Stock issued | 0 | 6.1 | 0 |
Value of Common Stock issued | $54,900,000 | ||
Future milestone payment in cash or common stock | 30,000,000 | ||
Milestone payment trigger amount on worldwide net sales | 750,000,000 | ||
Assets acquired: | |||
Revestive raw materials | 16,600,000 | ||
PTH raw materials | 17,100,000 | ||
Revestive product rights | 20,700,000 | ||
Estimated useful life of agreement | 12 years | ||
Revestive products rights amortization expense | 1,800,000 | 1,400,000 | |
Estimated annual amortization for each of the next five years | $1,800,000 |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans (Incentive Plans Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Expense | $15,003,000 | $9,437,000 | $7,548,000 |
Directors' Plan | |||
Plan Description | As of December 31, 2014, the Company has five equity incentive plans: the 1994 Nonemployee Directors' Stock Option Plan (the Directors' Plan), the 1998 Stock Option Plan (the 1998 Plan), the 2005 Omnibus Incentive Plan (the 2005 Plan), the 2014 Omnibus Equity Compensation Plan (the 2014 Plan), and the Employee Stock Purchase Plan ("ESPP"). These plans provide that in the event of certain change in control transactions, including a merger or consolidation in which the Company is not the surviving corporation or a reorganization in which more than fifty-percent (50%) of the shares of the Company's common stock entitled to vote are exchanged, all outstanding, unvested equity awards under these plans will vest, and in the case of stock options, will become immediately exercisable. | ||
As of December 31, 2014, there are no shares reserved for future grant under the Directors' Plan, the 1998 Plan and the 2005 Plan. As of December 31, 2014, there are 6,504,764 shares reserved for future grant under the 2014 Plan. The Company's 2014 Plan provides for the grant of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, cash-based awards, dividend equivalents and other stock-based awards. Under the Company's 2014 Plan, the exercise price of stock options, the grant price of stock appreciation rights and the initial value of performance awards, will not be less than the fair market value of the Company's common stock on the date of award. Stock options generally vest 25% after year one and 6.25% every three months thereafter. Under the Company's 2005 Plan, the exercise price of stock options, the grant price of stock appreciation rights and the initial value of performance awards, must be equal to at least 100% of the fair market value of the Company's common stock on the date of grant. Stock options generally vest 28% after year one and 2% per month thereafter or 25% after year one and 6.25% every three months thereafter. Under the Company's 1998 Plan, the exercise price of options is not less than the fair market value of the Company's common stock on the date of grant. The number of shares, terms, and exercise period are determined by the board of directors on a grant-by-grant basis, and the exercise period does not extend beyond ten years from the date of the grant. Stock options generally vest 28% after one year and 2% or 3% per month thereafter or 25% after year one and 6.25% every three months thereafter. | |||
During the year ended December 31, 2010, the Company's Board of Directors awarded a total of 1,130,700 performance condition options to certain of the Company's employees. Vesting of these options are subject to the Company achieving certain performance criteria established at the grant date and the individuals fulfilling a service condition (continued employment). As of December 31, 2014, the performance criteria of 884,590 of these options had been satisfied and these options will become exercisable based on the following vesting schedule: 25% on each of the first four anniversaries of the date of grant, which was February 20, 2010 (the date of grant). The Company recognized $192,000, $277,000 and $1.1 million of compensation expense during the years ended December 31, 2014, 2013 and 2012, respectively, related to these options. The final performance criteria had not been met and therefore the remaining 246,110 options have been forfeited. The Company utilized the Black-Scholes option pricing model to determine the grant date fair value of the awards. | |||
Number of Shares Reserved for Future Issuance | 0 | ||
1998 Plan | |||
Plan Description | As of December 31, 2014, the Company has five equity incentive plans: the 1994 Nonemployee Directors' Stock Option Plan (the Directors' Plan), the 1998 Stock Option Plan (the 1998 Plan), the 2005 Omnibus Incentive Plan (the 2005 Plan), the 2014 Omnibus Equity Compensation Plan (the 2014 Plan), and the Employee Stock Purchase Plan ("ESPP"). These plans provide that in the event of certain change in control transactions, including a merger or consolidation in which the Company is not the surviving corporation or a reorganization in which more than fifty-percent (50%) of the shares of the Company's common stock entitled to vote are exchanged, all outstanding, unvested equity awards under these plans will vest, and in the case of stock options, will become immediately exercisable. | ||
As of December 31, 2014, there are no shares reserved for future grant under the Directors' Plan, the 1998 Plan and the 2005 Plan. As of December 31, 2014, there are 6,504,764 shares reserved for future grant under the 2014 Plan. The Company's 2014 Plan provides for the grant of nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, cash-based awards, dividend equivalents and other stock-based awards. Under the Company's 2014 Plan, the exercise price of stock options, the grant price of stock appreciation rights and the initial value of performance awards, will not be less than the fair market value of the Company's common stock on the date of award. Stock options generally vest 25% after year one and 6.25% every three months thereafter. Under the Company's 2005 Plan, the exercise price of stock options, the grant price of stock appreciation rights and the initial value of performance awards, must be equal to at least 100% of the fair market value of the Company's common stock on the date of grant. Stock options generally vest 28% after year one and 2% per month thereafter or 25% after year one and 6.25% every three months thereafter. Under the Company's 1998 Plan, the exercise price of options is not less than the fair market value of the Company's common stock on the date of grant. The number of shares, terms, and exercise period are determined by the board of directors on a grant-by-grant basis, and the exercise period does not extend beyond ten years from the date of the grant. Stock options generally vest 28% after one year and 2% or 3% per month thereafter or 25% after year one and 6.25% every three months thereafter. | |||
Number of Shares Reserved for Future Issuance | 0 | ||
Share-based Compensation Expense | $192,000 | $277,000 | $1,100,000 |
2005 Plan | |||
Number of Shares Reserved for Future Issuance | 6,504,764 | ||
ESPP | |||
Plan Description | As of December 31, 2014, the Company has five equity incentive plans: the 1994 Nonemployee Directors' Stock Option Plan (the Directors' Plan), the 1998 Stock Option Plan (the 1998 Plan), the 2005 Omnibus Incentive Plan (the 2005 Plan), the 2014 Omnibus Equity Compensation Plan (the 2014 Plan), and the Employee Stock Purchase Plan ("ESPP"). These plans provide that in the event of certain change in control transactions, including a merger or consolidation in which the Company is not the surviving corporation or a reorganization in which more than fifty-percent (50%) of the shares of the Company's common stock entitled to vote are exchanged, all outstanding, unvested equity awards under these plans will vest, and in the case of stock options, will become immediately exercisable. | ||
On May 19, 2010, the shareholders approved an ESPP whereby qualified employees are allowed to purchase limited amounts of the Company's common stock at the lesser of 85% of the market price at the beginning or end of the offering period. The shareholders have authorized 500,000 shares for purchase by employees. During the years ended December 31, 2014, 2013 and 2012, employees purchased 40,120, 72,937 and 45,553 shares, respectively, under the ESPP. The Company has 289,465 shares available for future purchase as of December 31, 2014. | |||
The Company estimates expected volatility considering implied volatility based on market-traded options on the Company's common stock and historical volatility of the Company's common stock over the expected life of the options. In estimating volatility for the years ended December 31, 2014, 2013 and 2012 the Company weighted implied volatility at zero percent and historical volatility at 100%. The Company recognizes compensation cost for awards on a straight-line basis over the requisite service period for the entire award. Additionally, the Company's policy is to issue new shares of common stock to satisfy stock option exercises, ESPP purchases or grants of restricted shares or deferred stock units. | |||
Number of Shares Authorized | 500,000 | ||
Number of Shares Reserved for Future Issuance | 289,465 | ||
Shares of Stock Issued under plan | 40,120 | 72,937 | 45,553 |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans (Stock-Based Compensation Expense By Statement Of Operations) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock-based employee compensation expense related to employee stock options and emolyee stock purchases, pre tax | $15,003,000 | $9,437,000 | $7,548,000 |
Research and Development | |||
Stock-based employee compensation expense related to employee stock options and emolyee stock purchases, pre tax | 5,657,000 | 4,107,000 | 3,343,000 |
General and Administrative | |||
Stock-based employee compensation expense related to employee stock options and emolyee stock purchases, pre tax | $9,346,000 | $5,330,000 | $4,205,000 |
ShareBased_Compensation_Plans_1
Share-Based Compensation Plans (Option Assumptions Used in Black-Scholes) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Plans Option Assumptions Used In Black-scholes Details | |||
Dividend yield | $0 | $0 | $0 |
Expected volatility, minimum | 57.98% | 59.15% | 61.22% |
Expected volatility, maximum | 60.69% | 60.69% | 67.58% |
Risk-free interest rate, minimum | 1.40% | 0.70% | 0.60% |
Risk-free interest rate, maximum | 1.80% | 3.70% | 1.10% |
Expected term, in years, minimum | 5 years 73 days | 5 years 73 days | 5 years 37 days |
Expected term, in years, maximum | 5 years 219 days | 6 years | 5 years 329 days |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans (Aggregate Activity Under Stock Option Plans) (Details) (USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 |
Stock-based Compensation Plans Aggregate Activity Under Stock Option Plans Details | |
Options outstanding at beginning of year | 6,656,000 |
Options granted | 1,269,000 |
Options exercised | 1,245,000 |
Options forfeited/expired | 559,000 |
Options outstanding at end of year | 6,121,000 |
Weighted-average exercise price of options outstanding, beginning of year | $8.03 |
Weighted-average exercise price of options granted during period | $32.80 |
Weighted-average exercise price of options exercised during the period | $7.48 |
Weighted-average exercise price of options forfeited/expired during the period | $11.56 |
Weighted-average exercise price of options outstanding at end of year | $12.96 |
Weighted-average remaining contractual term of options outstanding at end of year | 7 years 77 days |
Aggregate intrinsic value of options outstanding at end of year | $141,011 |
Options Vested and Expected to Vest, Number of Shares | 5,838,000 |
Options Vested and Expected to Vest, Weighted-Average Exercise Price Per Share | $12.53 |
Options Vested and Expected to Vest, Weighted-Average Remaining Contractual Term | 7 years 51 days |
Options Vested and Expected to Vest, Aggregate Intrinsic Value | 136,909 |
Options Exercisable, Number of Shares | 3,246,000 |
Options Exercisable, Weighted-Average Exercise Price Per Share | $7.16 |
Options Exercisable, Weighted-Average Remaining Contractual Term | 6 years 40 days |
Options Exercisable, Aggregate Intrinsic Value | $92,865 |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans (Aggregate Restricted Stock, Restricted Stock Units and Deferred Stock Units) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Stock-based Compensation Plans Aggregate Restricted Stock Restricted Stock Units And Deferred Stock Units Details | |
Nonvested at beginning of year | 752,000 |
Granted | 394,000 |
Released | -229,000 |
Forfeited | -59,000 |
Nonvested at December 31, 2014 | 858,000 |
Weighted-average grant date fair market value, beginning balance | $8.89 |
Weighted-average grant date fair market value of restricted stock rights granted | $31.07 |
Weighted-average grant date fair market value, released during period | $9.19 |
Weighted-average grant date fair market value, forfeited during period | $12.40 |
Weighted-average grant date fair market value, ending balance | $18.75 |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans (Stock Option Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock-based Compensation Plans Stock Option Narrative Details | |||
Weighted-average grant-date fair value of options granted | $17.54 | $5.66 | $4.46 |
Total intrinsic value of stock options exercised | $31,500 | $33,400 | $2,000 |
StockBased_Compensation_Plans_5
Stock-Based Compensation Plans (Vesting of Restricted Stock Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock-based Compensation Plans Vesting Of Restricted Stock Narrative Details | |||
Deferred stock units granted to directors for services, which did not contain any vesting restrictions | 7,136 | 35,097 | 20,334 |
Deferred stock units granted to directors for services, vesting over one year | 27,432 | 75,940 | 106,575 |
Deferred stock units outstanding | 649,642 | ||
Shares of restricted stock granted to employees which will vest over a period of one to three years | 328,916 | 317,212 | 307,720 |
Restricted stock granted to employees | 30,412 | 141,507 | 0 |
StockBased_Compensation_Plans_6
Stock-Based Compensation Plans (Unrecoginized Compensation Expense Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Stock-based Compensation Plans Unrecoginized Compensation Expense Narrative Details | |
Unrecognized compensation cost | $23.20 |
Weighted average period over which unrecognized compensation is expected to be recognized, in years | 2 years 299 days |
Income_Taxes_Schedule_Of_Loss_
Income Taxes (Schedule Of Loss Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes Schedule Of Loss Before Income Taxes Details | |||
United States | $36,829 | ($9,748) | ($18,735) |
Foreign | -44,768 | -3,574 | 0 |
Loss before income taxes | ($7,939) | ($13,322) | ($18,735) |
Income_Taxes_Schedule_Of_Diffe
Income Taxes (Schedule Of Differences Between Statutory Tax And Effective Tax) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes Schedule Of Differences Between Statutory Tax And Effective Tax Details | |||
Computed "expected" tax benefit | ($2,699) | ($4,529) | ($6,370) |
IRC B'382 adjustment | 0 | 6,575 | 59,822 |
Change in the valuation allowance for deferred tax assetsB attributable to operations and other adjustments | -7,158 | 2,840 | -42,124 |
Research credit | -9,217 | -12,237 | -10,231 |
State income taxes, net of federal tax effect | 527 | 182 | 0 |
Equity based compensation expense | 1,310 | 678 | 513 |
Intercompany license of intellectual property | 0 | 5,440 | 0 |
Foreign tax rate differences | 15,358 | 940 | 0 |
Non recourse debt | 2,056 | -78 | -1,663 |
Other | 589 | 371 | 53 |
Income tax expense (benefit) | $766 | $182 | $0 |
Income_Taxes_Tax_Effects_of_Te
Income Taxes (Tax Effects of Temporary Differences That Give Rise to Deferred Tax Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Taxes Tax Effects Of Temporary Differences That Give Rise To Deferred Tax Assets Details | ||
Net operating loss carryforward | $109,751 | $132,101 |
Research credit carryforward | 82,633 | 68,277 |
Capital loss carryforward | 4,101 | 4,186 |
Non-recourse debt | 26,060 | 27,769 |
Acquired intellectal property | 26,344 | 29,452 |
Capitalization of inventory | 11,021 | 9,429 |
Stock compensation expense | 4,479 | 2,935 |
Accrued compensation | 3,269 | 3,117 |
Other | 697 | 555 |
Total gross deferred tax assets | 268,355 | 277,821 |
Less valuation allowance | -268,355 | -277,821 |
Deferred tax assets | 0 | 0 |
Deferred tax liabilities | 0 | 0 |
Net deferred tax asset (liability) | $0 | $0 |
Income_Taxes_Unrecognized_Tax_
Income Taxes (Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes Unrecognized Tax Benefits Details | ||
Beginning Balance | $3,937 | $4,614 |
Additions related to current year positions | 0 | 0 |
Reductions for prior year tax positions | 0 | -677 |
Ending Balance | $3,937 | $3,937 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes Narrative Details | ||
Valuation Allowance, Increase (Decrease) | ($9,500,000) | $215,000 |
Other Information Pertaining to Income Taxes | The Company files income tax returns in the United States and various foreign jurisdictions. Of the major jurisdictions, the Company is subject to examination in: the United States for U.S. federal purposes for 2011 and forward and for New Jersey for 2011 and forward. In August 2012, the IRS completed its examination of the Company's U.S. federal income tax returns for the year ended December 31, 2009. In May 2013, the State of New Jersey completed its examination of the Company's New Jersey income tax returns through the year ended December 31, 2010. There were no adjustments as a result of these examinations. | |
Income_Taxes_Narrative_of_Expe
Income Taxes (Narrative of Expense) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Income Taxes Narrative Of Expense Details | |||
Accrued penalties and interest | $0 | $0 | $0 |
Income_Taxes_Narrative_of_Oper
Income Taxes (Narrative of Operating Loss Carryforwards) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
U.S. Federal | |
Operating Loss Carryforwards | $348.90 |
Operating loss carryforwards, expiration dates | 31-Dec-18 |
New Jersey | |
Operating Loss Carryforwards | $337.50 |
Operating loss carryforwards, expiration dates | 31-Dec-15 |
Income_Taxes_Narrative_of_Othe
Income Taxes (Narrative of Other Carryforwards) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Capital Loss | U.S. Federal | |
Tax Credit Carryforward, Description | Capital loss carryforwards |
Tax Credit Carryforward, Amount | $10.70 |
Tax Credit Carryforward, Expiration Date | 31-Dec-15 |
Capital Loss | New Jersey | |
Tax Credit Carryforward, Description | Capital loss carryforwards |
Tax Credit Carryforward, Amount | 15.3 |
Tax Credit Carryforward, Expiration Date | 31-Dec-15 |
Research Credit | U.S. Federal | |
Tax Credit Carryforward, Description | Research Tax Credit |
Tax Credit Carryforward, Amount | $82.60 |
Tax Credit Carryforward, Expiration Date | 1-Jan-30 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Benefit Plans Narrative Details | |||
Company contribution match of employee contributions up to 3% of employee pre-tax contributions, percent | 100.00% | 100.00% | 100.00% |
Company contribution match of employee contributions of next 3% of employee pre-tax contributions, percent | 50.00% | 50.00% | 50.00% |
Matching contributions by company to 401(k) plan | $1,600,000 | $1,100,000 | $620,000 |
Commitments_and_Contingencies_
Commitments and Contingencies (Narrative 1) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Revestive and Natpara | |
Performance Commitment, Remaining Minimum Amount Committed | $17.40 |
Other Service Agreements | |
Performance Commitment, Remaining Minimum Amount Committed | $43.20 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative 2) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments And Contingencies Narrative 2 Details | |||
Purchases under contractual inventory commitments from third-party contract manufacturers | $14.80 | $15 | $25.90 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative 3) (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Commitments And Contingencies Narrative 3 Details | |
Future payments related to indemnifications or guaraantees, maximum | $5.10 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Selected Quarterly Financial Data Details | |||||||||||
Revenues | $66,695 | $57,200 | $56,127 | $44,040 | $54,451 | $39,202 | $36,505 | $25,434 | $224,062 | $155,592 | $130,644 |
Operating (loss) income | 857 | 1,351 | 5,790 | -2,948 | 10,588 | 1,769 | -9,321 | -4,531 | 5,050 | -1,495 | -1,124 |
Net (loss) income | ($1,975) | ($2,146) | $1,992 | ($6,576) | $7,768 | ($1,087) | ($12,389) | ($7,796) | |||
Basic net income (loss) per common and potential common share | ($0.02) | ($0.02) | $0.02 | ($0.06) | $0.08 | ($0.01) | ($0.13) | ($0.09) | ($0.08) | ($0.14) | ($0.22) |
Diluted net income (loss) per common and potential common share | ($0.02) | ($0.02) | $0.02 | ($0.06) | $0.07 | ($0.01) | ($0.13) | ($0.09) | ($0.08) | ($0.14) | ($0.22) |