Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NKTR | |
Entity Registrant Name | NEKTAR THERAPEUTICS | |
Entity Central Index Key | 906,709 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 172,468,773 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 911,125 | $ 4,762 |
Short-term investments | 912,683 | 291,370 |
Accounts receivable, net | 35,315 | 5,014 |
Inventory | 11,884 | 10,726 |
Other current assets | 34,940 | 14,948 |
Total current assets | 1,905,947 | 326,820 |
Long-term investments | 282,277 | 57,088 |
Property, plant and equipment, net | 45,000 | 47,463 |
Goodwill | 76,501 | 76,501 |
Other assets | 3,362 | 994 |
Total assets | 2,313,087 | 508,866 |
Current liabilities: | ||
Accounts payable | 10,674 | 4,782 |
Accrued compensation | 18,980 | 8,263 |
Accrued clinical trial expenses | 20,028 | 9,461 |
Other accrued expenses | 14,993 | 10,064 |
Interest payable | 4,144 | 4,198 |
Deferred revenue, current portion | 17,988 | 18,949 |
Other current liabilities | 10,090 | 446 |
Total current liabilities | 96,897 | 56,163 |
Senior secured notes, net | 246,078 | 245,207 |
Liability related to the sale of future royalties, net | 88,867 | 94,655 |
Deferred revenue, less current portion | 13,780 | 19,021 |
Other long-term liabilities | 7,051 | 5,992 |
Total liabilities | 452,673 | 421,038 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 10,000 shares authorized; no shares designated, issued or outstanding at June 30, 2018 or December 31, 2017 | 0 | 0 |
Common stock, $0.0001 par value; 300,000 shares authorized; 172,415 shares and 159,524 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively | 17 | 15 |
Capital in excess of par value | 3,094,095 | 2,207,865 |
Accumulated other comprehensive loss | (4,002) | (2,111) |
Accumulated deficit | (1,229,696) | (2,117,941) |
Total stockholders’ equity | 1,860,414 | 87,828 |
Total liabilities and stockholders’ equity | $ 2,313,087 | $ 508,866 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares designated | 0 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 172,415,000 | 159,524,000 |
Common stock, shares outstanding | 172,415,000 | 159,524,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 1,087,717 | $ 34,589 | $ 1,125,735 | $ 59,317 |
Operating costs and expenses: | ||||
Research and development | 88,334 | 60,260 | 187,758 | 121,318 |
General and administrative | 20,261 | 15,996 | 38,948 | 27,972 |
Total operating costs and expenses | 114,117 | 85,245 | 238,874 | 164,410 |
Income (loss) from operations | 973,600 | (50,656) | 886,861 | (105,093) |
Non-operating income (expense): | ||||
Interest expense | (5,385) | (5,510) | (10,725) | (10,912) |
Non-cash interest expense on liability related to sale of future royalties | (4,975) | (4,512) | (9,994) | (9,064) |
Interest income and other income (expense), net | 12,105 | 906 | 13,676 | 1,564 |
Total non-operating income (expense), net | 1,745 | (9,116) | (7,043) | (18,412) |
Income (loss) before provision for income taxes | 975,345 | (59,772) | 879,818 | (123,505) |
Provision for income taxes | 3,885 | 99 | 4,150 | 232 |
Net income (loss) | $ 971,460 | $ (59,871) | $ 875,668 | $ (123,737) |
Net income (loss) per share | ||||
Basic | $ 5.67 | $ (0.39) | $ 5.27 | $ (0.80) |
Diluted | $ 5.33 | $ (0.39) | $ 4.91 | $ (0.80) |
Weighted average shares outstanding used in computing net income (loss) per share: | ||||
Basic | 171,378 | 155,352 | 166,160 | 154,514 |
Diluted | 182,291 | 155,352 | 178,281 | 154,514 |
Product Sales [Member] | ||||
Revenue: | ||||
Total revenue | $ 5,863 | $ 15,693 | $ 12,158 | $ 20,449 |
Operating costs and expenses: | ||||
Cost of goods sold | 5,522 | 8,989 | 12,168 | 15,120 |
Royalty Revenue [Member] | ||||
Revenue: | ||||
Total revenue | 8,563 | 7,434 | 19,639 | 14,651 |
Non-cash Royalty Revenue Related to Sale of Future Royalties [Member] | ||||
Revenue: | ||||
Total revenue | 9,045 | 6,638 | 15,965 | 13,301 |
License, Collaboration and Other Revenue [Member] | ||||
Revenue: | ||||
Total revenue | $ 1,064,246 | $ 4,824 | $ 1,077,973 | $ 10,916 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Comprehensive income (loss) | $ 970,254 | $ (59,684) | $ 873,777 | $ (123,036) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 875,668,000 | $ (123,737,000) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Non-cash royalty revenue related to sale of future royalties | (15,965,000) | (13,301,000) |
Non-cash interest expense on liability related to sale of future royalties | 9,994,000 | 9,064,000 |
Stock-based compensation | 40,608,000 | 16,283,000 |
Depreciation and amortization | 5,115,000 | 8,287,000 |
Other non-cash transactions | (3,991,000) | (1,089,000) |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (19,557,000) | 11,564,000 |
Inventory | (1,158,000) | 101,000 |
Other assets | (14,282,000) | 2,280,000 |
Accounts payable | 5,791,000 | 3,221,000 |
Accrued compensation | 10,717,000 | (3,934,000) |
Accrued clinical trial expenses | 10,567,000 | (1,275,000) |
Other accrued expenses | 4,904,000 | 2,388,000 |
Interest payable | (54,000) | (54,000) |
Deferred revenue | (6,249,000) | (3,887,000) |
Other liabilities | 5,068,000 | 1,000,000 |
Net cash provided by (used in) operating activities | 907,176,000 | (93,089,000) |
Cash flows from investing activities: | ||
Purchases of investments | (989,850,000) | (121,135,000) |
Maturities of investments | 132,779,000 | 147,558,000 |
Sales of investments | 11,963,000 | 8,823,000 |
Purchases of property, plant and equipment | (3,730,000) | (6,344,000) |
Sales of property, plant and equipment | 2,633,000 | 0 |
Net cash (used in) provided by investing activities | (846,205,000) | 28,902,000 |
Cash flows from financing activities: | ||
Payment of capital lease obligations | 0 | (1,369,000) |
Issuance of common stock | 790,231,000 | 0 |
Proceeds from shares issued under equity compensation plans | 55,208,000 | 22,016,000 |
Net cash provided by financing activities | 845,439,000 | 20,647,000 |
Effect of exchange rates on cash and cash equivalents | (47,000) | 49,000 |
Net increase (decrease) in cash and cash equivalents | 906,363,000 | (43,491,000) |
Cash and cash equivalents at beginning of period | 4,762,000 | 59,640,000 |
Cash and cash equivalents at end of period | 911,125,000 | 16,149,000 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | $ 9,795,000 | $ 10,010,000 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1 — Organization and Summary of Significant Accounting Policies Organization We are a research-based biopharmaceutical company headquartered in San Francisco, California and incorporated in Delaware. We are developing a pipeline of drug candidates that utilize our advanced polymer conjugate technology platforms, which are designed to enable the development of new molecular entities that target known mechanisms of action. Our research and development pipeline of new investigational drugs includes treatments for cancer, autoimmune disease and chronic pain. Our research and development activities have required significant ongoing investment to date and are expected to continue to require significant investment. As a result, with the exception of the income resulting from the upfront payment in April 2018 from our collaboration agreement with Bristol-Myers Squibb and Company (BMS), we expect to continue to incur substantial losses and negative cash flows from operations in the future. We have financed our operations primarily through cash generated from licensing, collaboration and manufacturing agreements and financing transactions. At June 30, 2018, we had approximately $2.1 billion in cash and investments in marketable securities and debt of $250.0 million in principal of senior secured notes due in October 2020. Basis of Presentation and Principles of Consolidation Our consolidated financial statements include the financial position, results of operations and cash flows of our wholly-owned subsidiaries: Nektar Therapeutics (India) Private Limited (Nektar India) and Nektar Therapeutics UK Limited. All intercompany accounts and transactions have been eliminated in consolidation. We prepared our Condensed Consolidated Financial Statements following the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. generally accepted accounting principles (GAAP) for annual periods can be condensed or omitted. In the opinion of management, these financial statements include all normal and recurring adjustments that we consider necessary for the fair presentation of our financial position and operating results. Our Condensed Consolidated Financial Statements are denominated in U.S. dollars. Accordingly, changes in exchange rates between the applicable foreign currency and the U.S. dollar will affect the translation of each foreign subsidiary’s financial results into U.S. dollars for purposes of reporting our consolidated financial results. Translation gains and losses are included in accumulated other comprehensive loss in the stockholders’ equity section of the Condensed Consolidated Balance Sheets. To date, such cumulative currency translation adjustments have not been significant to our consolidated financial position. Our comprehensive income (loss) consists of our net income (loss) plus our foreign currency translation gains and losses and unrealized holding gains and losses on available-for-sale securities, neither of which were significant during the three and six months ended June 30, 2018 and 2017. In addition, there were no significant reclassifications out of accumulated other comprehensive loss to the statements of operations during the three and six months ended June 30, 2018 and 2017. The accompanying Condensed Consolidated Financial Statements are unaudited. The Condensed Consolidated Balance Sheet data as of December 31, 2017 was derived from the audited consolidated financial statements which are included in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on March 1, 2018. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and the accompanying notes to those financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017. Revenue, expenses, assets, and liabilities can vary during each quarter of the year. The results and trends in these interim Condensed Consolidated Financial Statements are not necessarily indicative of the results to be expected for the full year or any other period. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Accounting estimates and assumptions are inherently uncertain. Actual results could differ materially from those estimates and assumptions. Our estimates include those related to estimated selling prices of performance obligations and estimates of variable consideration in collaboration agreements, estimated royalty revenue, other estimates required for revenue recognition as described further below, the net realizable value of inventory, the impairment of investments, goodwill and long-lived assets, contingencies, accrued clinical trial, contract manufacturing and other expenses, estimated non-cash royalty revenue and non-cash interest expense from our liability related to our sale of future royalties, stock-based compensation, and ongoing litigation, among other estimates. We base our estimates on historical experience and on other assumptions that management believes are reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when these values are not readily apparent from other sources. As appropriate, estimates are assessed each period and updated to reflect current information and any changes in estimates will generally be reflected in the period first identified. Reclassifications Certain items previously reported in specific financial statement captions have been reclassified to conform to the current period presentation. Such reclassifications do not materially impact previously reported revenue, operating income (loss), net income (loss), total assets, liabilities or stockholders’ equity. Segment Information We operate in one business segment which focuses on applying our technology platform to develop novel drug candidates. Our business offerings have similar economics and other characteristics, including the nature of products and manufacturing processes, types of customers, distribution methods and regulatory environment. We are comprehensively managed as one business segment by our Chief Executive Officer. Significant Concentrations Our customers are primarily pharmaceutical and biotechnology companies that are located in the U.S. and Europe and with whom we have multi-year arrangements We are dependent on our suppliers and contract manufacturers to provide raw materials and drugs of appropriate quality and reliability and to meet applicable contract and regulatory requirements. In certain cases, we rely on single sources of supply of one or more critical materials. Consequently, in the event that supplies are delayed or interrupted for any reason, our ability to develop and produce our drug candidates or our ability to meet our supply obligations could be significantly impaired, which could have a material adverse effect on our business, financial condition and results of operations. Adoption of New Accounting Principle On January 1, 2018, we adopted Accounting Standards Codification (ASC) 606, Revenue Recognition - Revenue from Contracts with Customers Revenue Recognition Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for units of account that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The transition adjustment totaled $12.7 million, and included $10.7 million related to the recognition of royalty revenue. Previously, under ASC 605, we recognized certain of our royalty arrangements on a cash basis, generally one quarter in arrears. Beginning in the first quarter of 2018, we began to accrue our best estimate of these royalties earned based on our collaboration partners’ sales of the associated drug compounds. As a result, in the first quarter of 2018, we recognized $11.1 million of estimated royalty revenue associated with our partners’ sales of MOVANTIK ® ® ® ® ® ® The impact of the adoption of ASC 606 on our Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations as of and for the three and six months ended June 30, 2018 was as follows (in thousands): As reported Adjustments Balances Without the Adoption of Topic 606 Condensed Consolidated Balance Sheet data as of June 30, 2018 Accounts receivable, net $ 35,315 $ (9,875 ) $ 25,440 Deferred revenue, current portion 17,988 650 18,638 Deferred revenue, less current portion 13,780 978 14,758 Accumulated deficit (1,229,696 ) (11,503 ) (1,241,199 ) Condensed Consolidated Statement of Operations data for the three months ended June 30, 2018 Product sales $ 5,863 $ (192 ) $ 5,671 Royalty revenue 8,563 1,201 9,764 License, collaboration and other revenue 1,064,246 305 1,064,551 Total revenue 1,087,717 1,314 1,089,031 Condensed Consolidated Statement of Operations data for the six months ended June 30, 2018 Product sales $ 12,158 $ (192 ) $ 11,966 Royalty revenue 19,639 869 20,508 License, collaboration and other revenue 1,077,973 518 1,078,491 Total revenue 1,125,735 1,195 1,126,930 Revenue Recognition We derive our revenue from our arrangements with pharmaceutical and biotechnology collaboration partners. We enter into collaboration arrangements, under which we may grant licenses to our collaboration partners to further develop and commercialize one of our proprietary drug candidates or grant licenses to partners to use our technology to research and develop their own proprietary drug candidates. We may also perform research, development, manufacturing and supply activities under our collaboration agreements. Consideration under these contracts generally includes an upfront payment, development milestones and other contingent payments, royalties based on net sales of approved drugs, and commercial sales milestone payments. Additionally, these contracts may provide options for the customer to purchase our proprietary PEGylation materials, drug candidates or additional research and development services under separate contracts. We assess which activities in our collaboration agreements are performance obligations that should be accounted for separately and determine the arrangement transaction price, which includes the assessment of the probability of achievement of future milestones and other potential consideration. Product Sales Product sales are primarily derived from manufacturing and supply agreements with our customers. We have assessed our current manufacturing and supply arrangements and have generally determined that they provide the customer an option to purchase our proprietary PEGylation materials. Accordingly, we treat each purchase order as a discrete exercise of the customer’s option (i.e. a separate contract) rather than as a component of the overall arrangement. The pricing for the manufacturing and supply is generally at a fixed price and may be subject to annual producer price index (PPI) adjustments. We invoice and recognize product sales when title and risk of loss pass to the customer, which generally occurs upon shipment. Customer payments are generally due 30 days from receipt of invoice. We test our products for adherence to technical specifications before shipment; accordingly, we have not experienced any significant returns from our customers. Royalty Revenue Generally, we are entitled to royalties from our collaboration partners based on the net sales of their approved drugs that are marketed and sold, in one or more countries where we hold royalty rights. For arrangements that include sales-based royalties, including commercial milestone payments based on the level of sales, we have concluded that the license is the predominant item to which the royalties relate. Accordingly, we recognize royalty revenue, including for our non-cash royalties, when the underlying sales occur based on our best estimates of sales of the drugs. Our partners generally pay royalties or commercial milestones after the end of the calendar quarter in accordance with contractual terms. License, collaboration and other revenue License Grants : For collaboration arrangements that include a grant of a license to our intellectual property, we consider whether the license grant is distinct from the other performance obligations included in the arrangement. Generally, we would conclude that the license is distinct if the customer is able to benefit from the license with the resources available to it. For licenses that are distinct, we recognize revenues from nonrefundable, upfront payments and other consideration allocated to the license when the license term has begun and we have provided all necessary information regarding the underlying intellectual property to the customer, which generally occurs at or near the inception of the arrangement. Milestone Payments : At the inception of the arrangement and at each reporting date thereafter, we assess whether we should include any milestone payments or other forms of variable consideration in the transaction price, based on whether a significant reversal of revenue previously recognized is not probable upon resolution of the uncertainty. Since milestone payments may become payable to us upon the initiation of a clinical study or filing for or receipt of regulatory approval, we review the relevant facts and circumstances to determine when we should update the transaction price, which may occur before the triggering event. When we do update the transaction price for milestone payments, we allocate it on a relative standalone selling price basis and record revenue on a cumulative catch-up basis, which results in recognizing revenue for previously satisfied performance obligations in such period. Our partners generally pay development milestones subsequent to achievement of the triggering event. Research and development services : For amounts allocated to our research and development obligations in a collaboration arrangement, we recognize revenue over time using a proportional performance model, representing the transfer of goods or services as we perform activities over the term of the agreement. Our revenue recognition policies under ASC 605 are described in our Annual Report on Form 10-K for the year ended December 31, 2017. Research and Development Expense Research and development costs are expensed as incurred and include salaries, benefits and other operating costs such as outside services, supplies and allocated overhead costs. We perform research and development for our proprietary drug candidates and technology development and for certain third parties under collaboration agreements. For our proprietary drug candidates and our internal technology development programs, we invest our own funds without reimbursement from a third party. Where we perform research and development activities under a clinical joint development collaboration, such as our collaboration with BMS, we record the cost reimbursement from our partner as a reduction to research and development expense when reimbursement amounts are due to us under the agreement. We record accruals for the estimated costs of our clinical trial activities performed by third parties. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows to our vendors. Payments under the contracts depend on factors such as the achievement of certain events, successful enrollment of patients, and completion of certain clinical trial activities. We generally accrue costs associated with the start-up and reporting phases of the clinical trials ratably over the estimated duration of the start-up and reporting phases. We generally accrue costs associated with the treatment phase of clinical trials based on the total estimated cost of the treatment phase on a per patient basis and we expense the per patient cost ratably over the estimated patient treatment period based on patient enrollment in the trials. In specific circumstances, such as for certain time-based costs, we recognize clinical trial expenses using a methodology that we consider to be more reflective of the timing of costs incurred. Advance payments for goods or services that will be used or rendered for future research and development activities are capitalized as prepaid expenses and recognized as expense as the related goods are delivered or the related services are performed. We base our estimates on the best information available at the time. However, additional information may become available to us which may allow us to make a more accurate estimate in future periods. In this event, we may be required to record adjustments to research and development expenses in future periods when the actual level of activity becomes more certain. Such increases or decreases in cost are generally considered to be changes in estimates and will be reflected in research and development expenses in the period identified. Long-Lived Assets We assess the impairment of long-lived assets, primarily property, plant and equipment and goodwill, whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. When such events occur, we determine whether there has been an impairment in value by comparing the carrying value of the asset with its fair value, as measured by the anticipated undiscounted net cash flows associated with the asset. In the case of goodwill impairment, we perform an impairment test at least annually, on October 1 of each year, and market capitalization is generally used as the measure of fair value. If an impairment in value exists, the asset is written down to its estimated fair value. Income Taxes For the three and six months ended June 30, 2017, we recorded an income tax provision at an effective tax rate of approximately 35% as a result of taxable income at our Nektar India operations. For the three and six months ended June 30, 2018, as a result of expected taxable income in India and the U.S. for the full year of 2018 resulting primarily from income recognized from the upfront payment from BMS, we recorded a global income tax provision at an effective tax rate of approximately 0.5%. We expect to have tax liabilities in certain states where we do not have sufficient net operating losses to offset our estimated apportioned taxable income. Our effective tax rate is based on certain assumptions and other estimates regarding the apportionment of taxable income and the states in which we have has nexus in 2018. Our apportionment of taxable income includes estimates of the apportionment of the BMS upfront payment based on estimates of activities to be carried out under the collaboration agreement with BMS, as well as estimates of the apportionment of other sources of income. We will refine our estimates in future periods as more information becomes available. Our effective tax rate reflects the release of the valuation allowance of net operating loss carryforwards and other tax credits to offset U.S. federal and state taxable income. It also reflects a benefit of $1.9 million for stock-based compensation windfalls during the first half of 2018. Our remaining deferred tax assets continue to be fully reserved, as we believe it is not more likely than not that the benefit of such assets will be realized in the future. Our effective tax rate in 2018, including the benefit from utilization of net operating loss carryforwards and stock-based compensation windfalls, may vary based on changes in our estimates of taxable income, apportionment of the BMS upfront payment as well as other sources of income, and net operating loss carryforwards in states where we have previously not filed tax returns. The U.S. Tax Cuts and Jobs Act was enacted on December 22, 2017 and reduces the U.S. federal corporate tax rate from 35% in 2017 to 21% in 2018. Recent Accounting Pronouncements In February 2016, the FASB issued guidance to amend a number of aspects of lease accounting, including requiring lessees to recognize almost all leases with a term greater than one year as a right-of-use asset and corresponding liability, measured at the present value of the lease payments. The guidance will become effective for us beginning in the first quarter of 2019 and is required to be adopted using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard. |
Cash and Investments in Marketa
Cash and Investments in Marketable Securities | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Cash and Investments in Marketable Securities | Note 2 — Cash and Investments in Marketable Securities Cash and investments in marketable securities, including cash equivalents, are as follows (in thousands): Estimated Fair Value at June 30, 2018 December 31, 2017 Cash and cash equivalents $ 911,125 $ 4,762 Short-term investments 912,683 291,370 Long-term investments 282,277 57,088 Total cash and investments in marketable securities $ 2,106,085 $ 353,220 We invest in liquid, high quality debt securities. Our investments in debt securities are subject to interest rate risk. To minimize the exposure due to an adverse shift in interest rates, we invest in securities with maturities of two years or less and maintain a weighted average maturity of one year or less. As of June 30, 2018 and December 31, 2017, all of our long-term investments had maturities between one and two years. Gross unrealized gains and losses were not significant at either June 30, 2018 or December 31, 2017. During the six months ended June 30, 2018 and 2017, we sold available-for-sale securities totaling $12.0 million and $8.8 million. Gross realized gains and losses on those sales were not significant. During the three months ended June 30, 2018 and 2017, we did not sell any of our available-for-sale securities. The cost of securities sold is based on the specific identification method. Under the terms of our 7.75% senior secured notes due October 2020, we are required to maintain a minimum cash and investments in marketable securities balance of $60.0 million. Our portfolio of cash and investments in marketable securities includes (in thousands): Estimated Fair Value at Fair Value Hierarchy Level June 30, 2018 December 31, 2017 Corporate commercial paper 2 $ 1,201,026 $ 128,096 Corporate notes and bonds 2 671,323 216,253 Obligations of U.S. government agencies 2 123,972 2,977 Available-for-sale investments 1,996,321 347,326 Money market funds 1 100,299 302 Certificate of deposit N/A 6,713 1,132 Cash N/A 2,752 4,460 Total cash and investments in marketable securities $ 2,106,085 $ 353,220 Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We use a market approach to value our Level 2 investments. The disclosed fair value related to our investments is based on market prices from a variety of industry standard data providers and generally represents quoted prices for similar assets in active markets or has been derived from observable market data. During the three and six months ended June 30, 2018 and 2017, there were no transfers between Level 1 and Level 2 of the fair value hierarchy. Additionally, as of June 30, 2018, based on a discounted cash flow analysis using Level 3 inputs including financial discount rates, we believe the fair value of the $250.0 million in principal amount of our 7.75% senior secured notes due October 2020 is approximately $259.0 million. We may redeem some or all of these notes at a redemption price equal to 104% of the principal amount of the notes if the redemption date is prior to October 5, 2018, 102% of the principal amount of the notes if the redemption date is prior to October 5, 2019, or 100% of the principal amount of the notes if the redemption date is on or after October 5, 2019, plus, in each case, accrued and unpaid interest to the applicable redemption date. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3 — Inventory Inventory consists of the following (in thousands): June 30, 2018 December 31, 2017 Raw materials $ 1,807 $ 1,796 Work-in-process 9,483 4,843 Finished goods 594 4,087 Total inventory $ 11,884 $ 10,726 Inventory is generally manufactured upon receipt of firm purchase orders from our collaboration partners. Inventory includes direct materials, direct labor, and manufacturing overhead and cost is determined on a first-in, first-out basis. Inventory is valued at the lower of cost or net realizable value and defective or excess inventory is written down to net realizable value based on historical experience or projected usage. |
Liability Related to Sale of Fu
Liability Related to Sale of Future Royalties | 6 Months Ended |
Jun. 30, 2018 | |
Liability Related To Sale Of Potential Future Royalties [Abstract] | |
Liability Related to Sale of Future Royalties | Note 4 — Liability Related to Sale of Future Royalties On February 24, 2012, we entered into a Purchase and Sale Agreement (the Purchase and Sale Agreement) with RPI Finance Trust (RPI), an affiliate of Royalty Pharma, pursuant to which we sold, and RPI purchased, our right to receive royalty payments (the Royalty Entitlement) arising from the worldwide net sales, from and after January 1, 2012, of (a) CIMZIA ® ® ® ® ® ® ® ® We periodically assess the estimated royalty payments to RPI from UCB and Roche and to the extent such payments are greater or less than our initial estimates or the timing of such payments is materially different from our original estimates, we will prospectively adjust the amortization of the Royalty Obligation. From inception through 2017, our estimate of the total interest expense on the Royalty Obligation resulted in an effective annual interest rate of approximately 17%. During the three months ended December 31, 2017, as a result of increases in the forecasted sales of CIMZIA ® , our estimate of the effective annual interest rate over the life of the agreement increased to 17.6%, which results in a prospective interest rate of The Purchase and Sale Agreement grants RPI the right to receive certain reports and other information relating to the Royalty Entitlement and contains other representations and warranties, covenants and indemnification obligations that are customary for a transaction of this nature. To our knowledge, we are currently in compliance with these provisions of the Purchase and Sale Agreement; however, if we were to breach our obligations, we could be required to pay damages to RPI that are not limited to the purchase price we received in the sale transaction. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5 — Commitments and Contingencies Operating Leases In May 2018, we entered into a Lease Agreement (the Lease) with Kilroy Realty Finance Partnership, L.P. to lease 135,936 square feet of space located at 360 Third St., San Francisco, California (the Third Street Facility) from 2018 to 2030. An initial 1,726 square feet was delivered in June 2018, and the remaining space is expected to be delivered in phases during 2019. The Lease will provide us additional facilities to support increased personnel for our San Francisco-based R&D activities and corporate offices. The lease term will end on January 31, 2030, subject to our right to extend the term of the Lease for a consecutive five-year period. We have a one-time right of first offer with respect to certain additional rental space at the Third Street Facility As of June 30, 2018, our minimum lease payments for the delivered space in the Third Street Facility are not material. However, provided that all phases are delivered as expected, our annual base rent on an industrial gross lease basis Legal Matters From time to time, we are involved in lawsuits, arbitrations, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters, which arise in the ordinary course of business. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are reviewed at least quarterly and adjusted to reflect the impact of settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. If any unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of our operations of that period and on our cash flows and liquidity. Indemnifications in Connection with Commercial Agreements As part of our collaboration agreements with our partners related to the license, development, manufacture and supply of drugs based on our proprietary technologies and drug candidates, we generally agree to defend, indemnify and hold harmless our partners from and against third party liabilities arising out of the agreement, including product liability (with respect to our activities) and infringement of intellectual property to the extent the intellectual property is developed by us and licensed to our partners. The term of these indemnification obligations is generally perpetual any time after execution of the agreement. There is generally no limitation on the potential amount of future payments we could be required to make under these indemnification obligations. From time to time, we enter into other strategic agreements such as divestitures and financing transactions pursuant to which we are required to make representations and warranties and undertake to perform or comply with certain covenants, including our obligation to RPI described in Note 4. In the event it is determined that we breached certain of the representations and warranties or covenants made by us in any such agreements, we could incur substantial indemnification liabilities depending on the timing, nature, and amount of any such claims. To date, we have not incurred costs to defend lawsuits or settle claims related to these indemnification obligations. Because the aggregate amount of any potential indemnification obligation is not a stated amount, the overall maximum amount of any such obligations cannot be reasonably estimated. No liabilities have been recorded for these obligations in our Condensed Consolidated Balance Sheets at either June 30, 2018 or December 31, 2017. |
License and Collaboration Agree
License and Collaboration Agreements | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
License and Collaboration Agreements | Note 6 — License and Collaboration Agreements We have entered into various collaboration agreements including license agreements and collaborative research, development and commercialization agreements with various pharmaceutical and biotechnology companies. We analyze our agreements to determine whether we should account for the agreements within the scope of ASC 808, Collaborative Arrangements Revenue Recognition - Revenue from Contracts with Customers, Revenue Recognition Three months ended June 30, Six months ended June 30, Partner Drug or Drug Candidate 2018 2017 2018 2017 Bristol-Myers Squibb NKTR-214 $ 1,059,768 $ — $ 1,059,768 $ — Baxalta Incorporated/Shire ADYNOVATE ® 18 45 10,028 45 Eli Lilly and Company NKTR-358 3,052 — 5,406 — Amgen, Inc. Neulasta ® 1,250 1,250 2,500 2,500 AstraZeneca AB MOVANTIK ® ® — 1,600 — 4,600 Other 158 1,929 271 3,771 License, collaboration and other revenue $ 1,064,246 $ 4,824 $ 1,077,973 $ 10,916 In the three and six months ended June 30, 2018, we recognized $17.6 million and $45.6 million of revenue for performance obligations that we had satisfied in prior periods. This amount includes all of our royalty revenue and non-cash royalty revenue because these royalties substantially relate to the licenses that we had previously granted. This amount also includes the $10.0 million development milestone payment earned and received from Baxalta in the six months ended June 30, 2018 described below. The following table presents the changes in our deferred revenue balance from our collaboration agreements during the six months ended June 30, 2018 (in thousands): Six months ended June 30, 2018 Deferred revenue—December 31, 2017 $ 37,970 Transition adjustment related to adoption of ASC 606 (1,953 ) Additions to deferred revenue 4,000 Recognition of previously unearned revenue (8,249 ) Deferred revenue—June 30, 2018 $ 31,768 Our balance of deferred revenue contains the transaction price from our collaboration agreements allocated to performance obligations which are partially unsatisfied. We expect to recognize approximately $18.0 million of our deferred revenue over the next twelve months and recognize the significant majority of the remaining $13.8 million over the following twelve months. As of June 30, 2018, our collaboration agreements with partners included potential future payments for development and regulatory milestones totaling approximately $1.7 billion, including amounts from our agreements with BMS and Lilly described below. In addition, under our collaboration agreements we are entitled to receive contingent sales milestone payments, other contingent payments and royalty payments, as described below. There have been no material changes to our collaboration agreements in the three and six months ended June 30, 2018, except as described below. Bristol-Myers Squibb (BMS) : NKTR-214 On February 13, 2018, we entered into a Strategic Collaboration Agreement with BMS (BMS Collaboration Agreement) and Share Purchase Agreement, both of which became effective on April 3, 2018. Pursuant to these agreements, we and BMS will jointly develop NKTR-214, including, without limitation, in combination with BMS’s Opdivo ® ® ® In accordance with the agreement, the parties will share development costs for NKTR-214 in combination with Opdivo ® , 67.5% of costs to BMS and 32.5% to Nektar, and for NKTR-214 in a triplet combination with Opdivo ® and Yervoy ® , 78% of costs to BMS and 22% to Nektar. The BMS Collaboration Agreement superseded and replaced the Clinical Trial Agreement we entered into with BMS in September 2016 to develop NKTR-214 in combination with Opdivo ® Upon the effective date in April 2018, BMS paid us a non-refundable upfront cash payment of $1.0 billion. We are eligible to receive additional cash payments up to a total of approximately $1.4 billion upon the achievement of certain development and regulatory milestones and up to a total of $350.0 million upon the achievement of certain sales milestones. In April 2018, BMS also purchased 8,284,600 shares of our common stock for total additional cash consideration of $850.0 million. We determined that the BMS Collaboration Agreement falls within the scope of ASC 808. As mentioned above, BMS shares certain percentages of development costs incurred by us and we share certain percentages of development costs incurred by BMS. We consider these activities to represent collaborative activities under ASC 808 and we recognize such cost sharing proportionately with the performance of the underlying services. We recognize BMS’ reimbursement of our costs as a reduction of research and development expense and our reimbursement of BMS’ costs as research and development expense. During the three and six months ended June 30, 2018, we recorded $22.5 million and $24.8 million as a reduction of research and development expenses for BMS’ share of our costs and we recorded $0.9 million of research and development expenses for our share of BMS’ costs. As of June 30, 2018, we have recorded a receivable of $21.6 million from BMS in accounts receivable in our Condensed Consolidated Balance Sheet. We analogized to ASC 606 for the accounting for our two performance obligations, consisting of the delivery of the licenses to develop and commercialize NKTR-214 and our participation on joint steering and other collaboration committees. We determined that our committee participation is not material. We aggregated the total consideration of $1.85 billion received under the agreements and allocated it between the stock purchase and the revenue-generating elements, because we and BMS negotiated the agreements together and the effective date of the BMS Collaboration Agreement was dependent upon the effective date of the Share Purchase Agreement. We recorded the estimated fair value of the shares of $790.2 million in stockholders’ equity based on the closing date price of our common stock of $99.36, adjusted for a discount for lack of marketability reflecting the unregistered nature of the shares. We allocated the remaining $1,059.8 million to the transaction price of the collaboration agreement. We consider the future potential development, regulatory and sales milestones of up to approximately $1.8 billion to be variable consideration. We excluded these milestones from the transaction price as of June 30, 2018 because we determined such payments to be fully constrained under ASC 606 as the achievement of such milestone payments are uncertain and highly susceptible to factors outside of our control. We will re-evaluate the transaction price at each reporting period and as uncertain events are resolved or other changes in circumstances occur. Accordingly, we allocated the entire transaction price of $1,059.8 million to the granting of the licenses and therefore recognized $1,059.8 million in the three and six months ended June 30, 2018 as license, collaboration and other revenue. Eli Lilly and Company (Lilly ): NKTR-358 Effective August 23, 2017, we entered into a worldwide license agreement with Eli Lilly and Company (Lilly) to co-develop NKTR-358, a novel immunological drug candidate that we invented. The agreement will continue until Lilly no longer has any royalty payment obligations or, if earlier, the termination of the agreement in accordance with its terms. The agreement may be terminated by Lilly for convenience, and may also be terminated under certain other circumstances, including material breach. We identified our license grant to Lilly, our ongoing Phase 1 clinical development obligation and our drug product development obligation as the significant performance obligations in the arrangement. The valuation of each performance obligation involves significant estimates and assumptions, including but not limited to, expected market opportunity and pricing, assumed royalty rates, clinical trial costs, timelines and likelihood of success; in each case these estimates and assumptions covering long time periods. We determined the selling price for the license based on a discounted cash flow analysis of projected revenues from NKTR-358 and development and commercial costs using a discount rate based on a market participant’s weighted average cost of capital adjusted for forecasting risk. We determined the selling prices for our Phase 1 clinical development and drug product development deliverables based on the nature of the services to be performed and estimates of the associated efforts and third-party rates for similar services. Although we are entitled to significant development milestones under this arrangement, we did not include any of such milestones in the transaction price due to the significant uncertainties involved with clinical development. We have therefore determined the transaction price to consist of the upfront payment of $150.0 million in September 2017. Based on our estimates of the standalone selling prices of the performance obligations, we allocated the $150.0 million upfront payment as $125.9 million to the license, $17.6 million to the Phase 1 clinical development and $6.5 million to the drug product development. Under our adoption of ASC 606 as of January 1, 2018, we made no changes to our deferred revenue balance. We concluded that it was appropriate to have recognized the $125.9 million of revenue allocated to the license upon the effective date of the license agreement in August 2017, since we determined that the license was a right to use our intellectual property, for which, as of the effective date, we had provided all necessary information to Lilly to benefit from the license and the license term had begun. We recognize revenue for the Phase 1 clinical development and drug product development using an input method, using costs incurred, as this method depicts our progress towards providing Lilly with the results of clinical trials and drug production processes. As of June 30, 2018, we have deferred revenue of approximately $14.5 million related to this agreement, which we expect to recognize through December 2019, the estimated end of our performance obligations under this agreement. Baxalta Incorporated/Shire : Hemophilia We are a party to an exclusive research, development, license and manufacturing and supply agreement with Baxalta Incorporated (Baxalta), a subsidiary of Shire plc, entered into in September 2005 to develop products designed to improve therapies for Hemophilia A patients using our PEGylation technology. Under the terms of the agreement, we are entitled to research and development funding for our active programs, which are now complete for Factor VIII, and are responsible for supplying Baxalta with its requirements for our proprietary materials. Baxalta is responsible for all clinical development, regulatory, and commercialization expenses. The agreement is terminable by the parties under customary conditions. This Hemophilia A program includes ADYNOVATE ® In October 2017, we entered into a right to sublicense agreement with Baxalta under which we granted to Baxalta the right to grant a nonexclusive sublicense to certain patents that were previously exclusively licensed to Baxalta under our 2005 agreement. Under the right to sublicense agreement, Baxalta paid us $12.0 million in November 2017 and agreed to pay us single digit royalty payments based upon net sales of the products covered under the sublicense throughout the term of the agreement. Under our adoption of ASC 606 as of January 1, 2018, we determined that our satisfied performance obligations consist of granting the license, granting the right to sublicense and performing research and development services. We determined that we have an unsatisfied performance obligation related to our ongoing supply of PEGylation materials at a price less than their standalone selling prices. We updated the arrangement transaction price in the six months ended June 30, 2018 for the $10.0 million EU approval milestone achieved in January 2018 since we had previously excluded it due to the significant uncertainty from regulatory approval. Based on the terms of this milestone, we allocated the entire milestone to the license grant and research and development services, and therefore recognized the entire $10.0 million in the six months ended June 30, 2018 as we had previously satisfied those performance obligations. As of June 30, 2018, we have deferred revenue of $1.0 million related to this agreement. Amgen, Inc .: Neulasta ® In October 2010, we amended and restated an existing supply and license agreement by entering into a supply, dedicated suite and manufacturing guarantee agreement (the amended and restated agreement) and a license agreement with Amgen Inc. and Amgen Manufacturing, Limited (together referred to as Amgen). Under the terms of the amended and restated agreement, we received a $50.0 million payment in the fourth quarter of 2010 in return for our guaranteeing the supply of certain quantities of our proprietary PEGylation materials to Amgen. Under our adoption ASC 606 as of January 1, 2018, we determined that our obligation to manufacture and supply of our PEGylation materials and to maintain the dedicated manufacturing suite solely for the production of such materials for Amgen represented an obligation to stand ready to manufacture such materials. We concluded that we should recognize revenue based on the passage of time as this method depicts the satisfaction of Amgen’s right to require production of PEGylation materials at any time. As of June 30, 2018, we have deferred revenue of approximately $11.7 million related to this agreement, which we expect to recognize through October 2020, the estimated end of our obligations under this agreement. AstraZeneca AB : MOVANTIK ® (naloxegol oxalate), previously referred to as naloxegol and NKTR-118, and MOVANTIK ® fixed-dose combination program, previously referred to as NKTR-119 In September 2009, we entered into an agreement with AstraZeneca AB (AstraZeneca) under which we granted AstraZeneca a worldwide, exclusive license under our patents and other intellectual property to develop, market, and sell MOVANTIK ® ® ® ® ® ® ® ® ® In March 2016, AstraZeneca announced that it had entered into an agreement with ProStrakan Group plc, a subsidiary of Kyowa Hakko Kirin Co. Ltd. (Kirin), granting Kirin exclusive marketing rights to MOVENTIG ® Other In addition, as of June 30, 2018, we have a number of other collaboration agreements, including with our collaboration partners UCB and Halozyme, under which we are entitled to up to a total of $45.5 million of development milestone payments upon achievement of certain development objectives, as well as sales milestones upon achievement of annual sales targets and royalties based on net sales of commercialized products, if any. However, given the current phase of development of the potential products under these collaboration agreements, we cannot estimate the probability or timing of achieving these milestones and, therefore, have excluded all development milestones from the respective transaction prices for these agreements. As of June 30, 2018, we have deferred revenue of approximately $4.6 million related to these other collaboration agreements. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 7 — Stock-Based Compensation Total stock-based compensation expense was recognized in our Condensed Consolidated Statements of Operations as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Cost of goods sold $ 1,163 $ 538 $ 2,294 $ 1,092 Research and development 12,991 4,620 25,084 9,217 General and administrative 6,506 2,941 13,230 5,974 Total stock-based compensation $ 20,660 $ 8,099 $ 40,608 $ 16,283 During the three months ended June 30, 2018 and 2017, we granted 528,975 and 956,160 stock options, respectively, and these options had a weighted average grant-date fair value of $44.32 per share and $8.96 per share, respectively. During the six months ended June 30, 2018 and 2017, we granted 738,675 and 1,285,020 stock options, respectively, and these options had a weighted average grant-date fair value of $41.53 per share and $8.70 per share, respectively. During the three and six months ended June 30, 2018, we granted 396,240 and 406,240 RSUs, respectively. We did not grant any RSUs during the three and six months ended June 30, 2017. As a result of stock issuances under our equity compensation plans, during the three months ended June 30, 2018 and 2017, we issued 1,750,908 and 1,130,164 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Note 8 — Net Income (Loss) Per Share Basic net income (loss) per share is calculated based on the weighted-average number of common shares outstanding during the periods presented. Diluted net income (loss) per share is calculated based on the weighted-average number of shares of common stock outstanding, including potential dilutive securities. For all periods presented in the accompanying Condensed Consolidated Statements of Operations, the net income (loss) available to common stockholders is equal to the reported net income (loss). The calculation of diluted earnings per share includes the weighted-average of potentially dilutive securities, which consists of shares of common stock underlying outstanding stock options and RSUs. The effect of these dilutive securities under the treasury stock method was approximately 10.9 million and 12.1 million shares for the three and six months ended June 30, 2018, respectively. During the three and six months ended June 30, 2018, shares of common stock underlying outstanding stock options totaling approximately 3.2 million and 3.1 million weighted-average shares outstanding, respectively, were excluded from the computation of diluted net income per share for that period because their effect was antidilutive. For the three and six months ended June 30, 2017, basic and diluted net loss per share are the same due to our net losses and the requirement to exclude potentially dilutive securities which would have an antidilutive effect on net loss per share. During the three and six months ended June 30, 2017, potentially dilutive securities consisted of common shares underlying outstanding stock options and RSUs. During the three and six months ended June 30, 2017, there were weighted average outstanding stock options and RSUs of 20.2 million and 20.7 million shares, respectively |
Organization and Summary of S15
Organization and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation Our consolidated financial statements include the financial position, results of operations and cash flows of our wholly-owned subsidiaries: Nektar Therapeutics (India) Private Limited (Nektar India) and Nektar Therapeutics UK Limited. All intercompany accounts and transactions have been eliminated in consolidation. We prepared our Condensed Consolidated Financial Statements following the requirements of the Securities and Exchange Commission (SEC) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by U.S. generally accepted accounting principles (GAAP) for annual periods can be condensed or omitted. In the opinion of management, these financial statements include all normal and recurring adjustments that we consider necessary for the fair presentation of our financial position and operating results. Our Condensed Consolidated Financial Statements are denominated in U.S. dollars. Accordingly, changes in exchange rates between the applicable foreign currency and the U.S. dollar will affect the translation of each foreign subsidiary’s financial results into U.S. dollars for purposes of reporting our consolidated financial results. Translation gains and losses are included in accumulated other comprehensive loss in the stockholders’ equity section of the Condensed Consolidated Balance Sheets. To date, such cumulative currency translation adjustments have not been significant to our consolidated financial position. Our comprehensive income (loss) consists of our net income (loss) plus our foreign currency translation gains and losses and unrealized holding gains and losses on available-for-sale securities, neither of which were significant during the three and six months ended June 30, 2018 and 2017. In addition, there were no significant reclassifications out of accumulated other comprehensive loss to the statements of operations during the three and six months ended June 30, 2018 and 2017. The accompanying Condensed Consolidated Financial Statements are unaudited. The Condensed Consolidated Balance Sheet data as of December 31, 2017 was derived from the audited consolidated financial statements which are included in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on March 1, 2018. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and the accompanying notes to those financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017. Revenue, expenses, assets, and liabilities can vary during each quarter of the year. The results and trends in these interim Condensed Consolidated Financial Statements are not necessarily indicative of the results to be expected for the full year or any other period. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Accounting estimates and assumptions are inherently uncertain. Actual results could differ materially from those estimates and assumptions. Our estimates include those related to estimated selling prices of performance obligations and estimates of variable consideration in collaboration agreements, estimated royalty revenue, other estimates required for revenue recognition as described further below, the net realizable value of inventory, the impairment of investments, goodwill and long-lived assets, contingencies, accrued clinical trial, contract manufacturing and other expenses, estimated non-cash royalty revenue and non-cash interest expense from our liability related to our sale of future royalties, stock-based compensation, and ongoing litigation, among other estimates. We base our estimates on historical experience and on other assumptions that management believes are reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when these values are not readily apparent from other sources. As appropriate, estimates are assessed each period and updated to reflect current information and any changes in estimates will generally be reflected in the period first identified. |
Reclassifications | Reclassifications Certain items previously reported in specific financial statement captions have been reclassified to conform to the current period presentation. Such reclassifications do not materially impact previously reported revenue, operating income (loss), net income (loss), total assets, liabilities or stockholders’ equity. |
Segment Information | Segment Information We operate in one business segment which focuses on applying our technology platform to develop novel drug candidates. Our business offerings have similar economics and other characteristics, including the nature of products and manufacturing processes, types of customers, distribution methods and regulatory environment. We are comprehensively managed as one business segment by our Chief Executive Officer. |
Significant Concentrations | Significant Concentrations Our customers are primarily pharmaceutical and biotechnology companies that are located in the U.S. and Europe and with whom we have multi-year arrangements We are dependent on our suppliers and contract manufacturers to provide raw materials and drugs of appropriate quality and reliability and to meet applicable contract and regulatory requirements. In certain cases, we rely on single sources of supply of one or more critical materials. Consequently, in the event that supplies are delayed or interrupted for any reason, our ability to develop and produce our drug candidates or our ability to meet our supply obligations could be significantly impaired, which could have a material adverse effect on our business, financial condition and results of operations. |
Adoption of New Accounting Principle | Adoption of New Accounting Principle On January 1, 2018, we adopted Accounting Standards Codification (ASC) 606, Revenue Recognition - Revenue from Contracts with Customers Revenue Recognition Under ASC 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for units of account that an entity determines are within the scope of ASC 606, the entity performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The transition adjustment totaled $12.7 million, and included $10.7 million related to the recognition of royalty revenue. Previously, under ASC 605, we recognized certain of our royalty arrangements on a cash basis, generally one quarter in arrears. Beginning in the first quarter of 2018, we began to accrue our best estimate of these royalties earned based on our collaboration partners’ sales of the associated drug compounds. As a result, in the first quarter of 2018, we recognized $11.1 million of estimated royalty revenue associated with our partners’ sales of MOVANTIK ® ® ® ® ® ® The impact of the adoption of ASC 606 on our Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations as of and for the three and six months ended June 30, 2018 was as follows (in thousands): As reported Adjustments Balances Without the Adoption of Topic 606 Condensed Consolidated Balance Sheet data as of June 30, 2018 Accounts receivable, net $ 35,315 $ (9,875 ) $ 25,440 Deferred revenue, current portion 17,988 650 18,638 Deferred revenue, less current portion 13,780 978 14,758 Accumulated deficit (1,229,696 ) (11,503 ) (1,241,199 ) Condensed Consolidated Statement of Operations data for the three months ended June 30, 2018 Product sales $ 5,863 $ (192 ) $ 5,671 Royalty revenue 8,563 1,201 9,764 License, collaboration and other revenue 1,064,246 305 1,064,551 Total revenue 1,087,717 1,314 1,089,031 Condensed Consolidated Statement of Operations data for the six months ended June 30, 2018 Product sales $ 12,158 $ (192 ) $ 11,966 Royalty revenue 19,639 869 20,508 License, collaboration and other revenue 1,077,973 518 1,078,491 Total revenue 1,125,735 1,195 1,126,930 |
Revenue Recognition | Revenue Recognition We derive our revenue from our arrangements with pharmaceutical and biotechnology collaboration partners. We enter into collaboration arrangements, under which we may grant licenses to our collaboration partners to further develop and commercialize one of our proprietary drug candidates or grant licenses to partners to use our technology to research and develop their own proprietary drug candidates. We may also perform research, development, manufacturing and supply activities under our collaboration agreements. Consideration under these contracts generally includes an upfront payment, development milestones and other contingent payments, royalties based on net sales of approved drugs, and commercial sales milestone payments. Additionally, these contracts may provide options for the customer to purchase our proprietary PEGylation materials, drug candidates or additional research and development services under separate contracts. We assess which activities in our collaboration agreements are performance obligations that should be accounted for separately and determine the arrangement transaction price, which includes the assessment of the probability of achievement of future milestones and other potential consideration. Product Sales Product sales are primarily derived from manufacturing and supply agreements with our customers. We have assessed our current manufacturing and supply arrangements and have generally determined that they provide the customer an option to purchase our proprietary PEGylation materials. Accordingly, we treat each purchase order as a discrete exercise of the customer’s option (i.e. a separate contract) rather than as a component of the overall arrangement. The pricing for the manufacturing and supply is generally at a fixed price and may be subject to annual producer price index (PPI) adjustments. We invoice and recognize product sales when title and risk of loss pass to the customer, which generally occurs upon shipment. Customer payments are generally due 30 days from receipt of invoice. We test our products for adherence to technical specifications before shipment; accordingly, we have not experienced any significant returns from our customers. Royalty Revenue Generally, we are entitled to royalties from our collaboration partners based on the net sales of their approved drugs that are marketed and sold, in one or more countries where we hold royalty rights. For arrangements that include sales-based royalties, including commercial milestone payments based on the level of sales, we have concluded that the license is the predominant item to which the royalties relate. Accordingly, we recognize royalty revenue, including for our non-cash royalties, when the underlying sales occur based on our best estimates of sales of the drugs. Our partners generally pay royalties or commercial milestones after the end of the calendar quarter in accordance with contractual terms. License, collaboration and other revenue License Grants : For collaboration arrangements that include a grant of a license to our intellectual property, we consider whether the license grant is distinct from the other performance obligations included in the arrangement. Generally, we would conclude that the license is distinct if the customer is able to benefit from the license with the resources available to it. For licenses that are distinct, we recognize revenues from nonrefundable, upfront payments and other consideration allocated to the license when the license term has begun and we have provided all necessary information regarding the underlying intellectual property to the customer, which generally occurs at or near the inception of the arrangement. Milestone Payments : At the inception of the arrangement and at each reporting date thereafter, we assess whether we should include any milestone payments or other forms of variable consideration in the transaction price, based on whether a significant reversal of revenue previously recognized is not probable upon resolution of the uncertainty. Since milestone payments may become payable to us upon the initiation of a clinical study or filing for or receipt of regulatory approval, we review the relevant facts and circumstances to determine when we should update the transaction price, which may occur before the triggering event. When we do update the transaction price for milestone payments, we allocate it on a relative standalone selling price basis and record revenue on a cumulative catch-up basis, which results in recognizing revenue for previously satisfied performance obligations in such period. Our partners generally pay development milestones subsequent to achievement of the triggering event. Research and development services : For amounts allocated to our research and development obligations in a collaboration arrangement, we recognize revenue over time using a proportional performance model, representing the transfer of goods or services as we perform activities over the term of the agreement. Our revenue recognition policies under ASC 605 are described in our Annual Report on Form 10-K for the year ended December 31, 2017. |
Research and Development Expense | Research and Development Expense Research and development costs are expensed as incurred and include salaries, benefits and other operating costs such as outside services, supplies and allocated overhead costs. We perform research and development for our proprietary drug candidates and technology development and for certain third parties under collaboration agreements. For our proprietary drug candidates and our internal technology development programs, we invest our own funds without reimbursement from a third party. Where we perform research and development activities under a clinical joint development collaboration, such as our collaboration with BMS, we record the cost reimbursement from our partner as a reduction to research and development expense when reimbursement amounts are due to us under the agreement. We record accruals for the estimated costs of our clinical trial activities performed by third parties. The financial terms of these agreements are subject to negotiation, vary from contract to contract and may result in uneven payment flows to our vendors. Payments under the contracts depend on factors such as the achievement of certain events, successful enrollment of patients, and completion of certain clinical trial activities. We generally accrue costs associated with the start-up and reporting phases of the clinical trials ratably over the estimated duration of the start-up and reporting phases. We generally accrue costs associated with the treatment phase of clinical trials based on the total estimated cost of the treatment phase on a per patient basis and we expense the per patient cost ratably over the estimated patient treatment period based on patient enrollment in the trials. In specific circumstances, such as for certain time-based costs, we recognize clinical trial expenses using a methodology that we consider to be more reflective of the timing of costs incurred. Advance payments for goods or services that will be used or rendered for future research and development activities are capitalized as prepaid expenses and recognized as expense as the related goods are delivered or the related services are performed. We base our estimates on the best information available at the time. However, additional information may become available to us which may allow us to make a more accurate estimate in future periods. In this event, we may be required to record adjustments to research and development expenses in future periods when the actual level of activity becomes more certain. Such increases or decreases in cost are generally considered to be changes in estimates and will be reflected in research and development expenses in the period identified. |
Long-Lived Assets | Long-Lived Assets We assess the impairment of long-lived assets, primarily property, plant and equipment and goodwill, whenever events or changes in business circumstances indicate that the carrying amounts of the assets may not be fully recoverable. When such events occur, we determine whether there has been an impairment in value by comparing the carrying value of the asset with its fair value, as measured by the anticipated undiscounted net cash flows associated with the asset. In the case of goodwill impairment, we perform an impairment test at least annually, on October 1 of each year, and market capitalization is generally used as the measure of fair value. If an impairment in value exists, the asset is written down to its estimated fair value. |
Income Taxes | Income Taxes For the three and six months ended June 30, 2017, we recorded an income tax provision at an effective tax rate of approximately 35% as a result of taxable income at our Nektar India operations. For the three and six months ended June 30, 2018, as a result of expected taxable income in India and the U.S. for the full year of 2018 resulting primarily from income recognized from the upfront payment from BMS, we recorded a global income tax provision at an effective tax rate of approximately 0.5%. We expect to have tax liabilities in certain states where we do not have sufficient net operating losses to offset our estimated apportioned taxable income. Our effective tax rate is based on certain assumptions and other estimates regarding the apportionment of taxable income and the states in which we have has nexus in 2018. Our apportionment of taxable income includes estimates of the apportionment of the BMS upfront payment based on estimates of activities to be carried out under the collaboration agreement with BMS, as well as estimates of the apportionment of other sources of income. We will refine our estimates in future periods as more information becomes available. Our effective tax rate reflects the release of the valuation allowance of net operating loss carryforwards and other tax credits to offset U.S. federal and state taxable income. It also reflects a benefit of $1.9 million for stock-based compensation windfalls during the first half of 2018. Our remaining deferred tax assets continue to be fully reserved, as we believe it is not more likely than not that the benefit of such assets will be realized in the future. Our effective tax rate in 2018, including the benefit from utilization of net operating loss carryforwards and stock-based compensation windfalls, may vary based on changes in our estimates of taxable income, apportionment of the BMS upfront payment as well as other sources of income, and net operating loss carryforwards in states where we have previously not filed tax returns. The U.S. Tax Cuts and Jobs Act was enacted on December 22, 2017 and reduces the U.S. federal corporate tax rate from 35% in 2017 to 21% in 2018. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the FASB issued guidance to amend a number of aspects of lease accounting, including requiring lessees to recognize almost all leases with a term greater than one year as a right-of-use asset and corresponding liability, measured at the present value of the lease payments. The guidance will become effective for us beginning in the first quarter of 2019 and is required to be adopted using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard. |
Inventory | Inventory is valued at the lower of cost or net realizable value and defective or excess inventory is written down to net realizable value based on historical experience or projected usage. |
Liability Related to Sale of Future Royalties | We periodically assess the estimated royalty payments to RPI from UCB and Roche and to the extent such payments are greater or less than our initial estimates or the timing of such payments is materially different from our original estimates, we will prospectively adjust the amortization of the Royalty Obligation. |
Organization and Summary of S16
Organization and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
ASC 606 [Member] | |
Impact of Adoption of ASC 606 on Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations | The impact of the adoption of ASC 606 on our Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations as of and for the three and six months ended June 30, 2018 was as follows (in thousands): As reported Adjustments Balances Without the Adoption of Topic 606 Condensed Consolidated Balance Sheet data as of June 30, 2018 Accounts receivable, net $ 35,315 $ (9,875 ) $ 25,440 Deferred revenue, current portion 17,988 650 18,638 Deferred revenue, less current portion 13,780 978 14,758 Accumulated deficit (1,229,696 ) (11,503 ) (1,241,199 ) Condensed Consolidated Statement of Operations data for the three months ended June 30, 2018 Product sales $ 5,863 $ (192 ) $ 5,671 Royalty revenue 8,563 1,201 9,764 License, collaboration and other revenue 1,064,246 305 1,064,551 Total revenue 1,087,717 1,314 1,089,031 Condensed Consolidated Statement of Operations data for the six months ended June 30, 2018 Product sales $ 12,158 $ (192 ) $ 11,966 Royalty revenue 19,639 869 20,508 License, collaboration and other revenue 1,077,973 518 1,078,491 Total revenue 1,125,735 1,195 1,126,930 |
Cash and Investments in Marke17
Cash and Investments in Marketable Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Cash and Investments in Marketable Securities, Including Cash Equivalents | Cash and investments in marketable securities, including cash equivalents, are as follows (in thousands): Estimated Fair Value at June 30, 2018 December 31, 2017 Cash and cash equivalents $ 911,125 $ 4,762 Short-term investments 912,683 291,370 Long-term investments 282,277 57,088 Total cash and investments in marketable securities $ 2,106,085 $ 353,220 |
Portfolio of Cash and Investments in Marketable Securities | Our portfolio of cash and investments in marketable securities includes (in thousands): Estimated Fair Value at Fair Value Hierarchy Level June 30, 2018 December 31, 2017 Corporate commercial paper 2 $ 1,201,026 $ 128,096 Corporate notes and bonds 2 671,323 216,253 Obligations of U.S. government agencies 2 123,972 2,977 Available-for-sale investments 1,996,321 347,326 Money market funds 1 100,299 302 Certificate of deposit N/A 6,713 1,132 Cash N/A 2,752 4,460 Total cash and investments in marketable securities $ 2,106,085 $ 353,220 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory consists of the following (in thousands): June 30, 2018 December 31, 2017 Raw materials $ 1,807 $ 1,796 Work-in-process 9,483 4,843 Finished goods 594 4,087 Total inventory $ 11,884 $ 10,726 |
License and Collaboration Agr19
License and Collaboration Agreements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
License, Collaboration and Other Revenue | In accordance with our collaboration agreements, we recognized license, collaboration and other revenue as follows (in thousands): Three months ended June 30, Six months ended June 30, Partner Drug or Drug Candidate 2018 2017 2018 2017 Bristol-Myers Squibb NKTR-214 $ 1,059,768 $ — $ 1,059,768 $ — Baxalta Incorporated/Shire ADYNOVATE ® 18 45 10,028 45 Eli Lilly and Company NKTR-358 3,052 — 5,406 — Amgen, Inc. Neulasta ® 1,250 1,250 2,500 2,500 AstraZeneca AB MOVANTIK ® ® — 1,600 — 4,600 Other 158 1,929 271 3,771 License, collaboration and other revenue $ 1,064,246 $ 4,824 $ 1,077,973 $ 10,916 |
Changes in Deferred Revenue Balance from Collaboration Agreements | The following table presents the changes in our deferred revenue balance from our collaboration agreements during the six months ended June 30, 2018 (in thousands): Six months ended June 30, 2018 Deferred revenue—December 31, 2017 $ 37,970 Transition adjustment related to adoption of ASC 606 (1,953 ) Additions to deferred revenue 4,000 Recognition of previously unearned revenue (8,249 ) Deferred revenue—June 30, 2018 $ 31,768 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation Expense | Total stock-based compensation expense was recognized in our Condensed Consolidated Statements of Operations as follows (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Cost of goods sold $ 1,163 $ 538 $ 2,294 $ 1,092 Research and development 12,991 4,620 25,084 9,217 General and administrative 6,506 2,941 13,230 5,974 Total stock-based compensation $ 20,660 $ 8,099 $ 40,608 $ 16,283 |
Organization and Summary of S21
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Segment | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2018USD ($) | |
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Cash and investments in marketable securities | $ 2,106,085 | $ 353,220 | $ 2,106,085 | $ 353,220 | ||||
Senior secured notes | 250,000 | $ 250,000 | ||||||
Senior secured notes, maturity date | Oct. 5, 2020 | |||||||
Number of operating business segment | Segment | 1 | |||||||
Revenue recognized from contracts with customers | $ 1,087,717 | $ 34,589 | $ 1,125,735 | $ 59,317 | ||||
Effective income tax rate | 0.50% | 0.50% | ||||||
Benefit of stock-based compensation windfalls | $ 1,900 | |||||||
Statutory income tax rate | 21.00% | 35.00% | ||||||
India | ||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Effective income tax rate | 35.00% | 35.00% | ||||||
Royalty [Member] | ||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Revenue recognized from contracts with customers | $ 8,563 | $ 7,434 | $ 19,639 | $ 14,651 | ||||
ASC 606 [Member] | ||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Adjustment to retained earnings | $ 12,700 | |||||||
ASC 606 [Member] | Royalty [Member] | MOVANTIK and ADYNOVATE [Member] | ||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Revenue recognized from contracts with customers | $ 11,100 | $ 9,600 | ||||||
ASC 606 [Member] | Recognition of Royalties [Member] | ||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Adjustment to retained earnings | 10,700 | |||||||
ASC 606 [Member] | Recognition of Royalties [Member] | MOVANTIK and ADYNOVATE [Member] | ||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Adjustment to retained earnings | 10,700 | |||||||
ASC 606 [Member] | Reduction of Deferred Revenue [Member] | ||||||||
Organization And Summary Of Significant Accounting Policies [Line Items] | ||||||||
Adjustment to retained earnings | $ (2,000) |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies - Impact of Adoption of ASC 606 on Condensed Consolidated Balance Sheet and Condensed Consolidated Statement of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Condensed Consolidated Balance Sheet data | |||||
Accounts receivable, net | $ 35,315 | $ 35,315 | $ 5,014 | ||
Deferred revenue, current portion | 17,988 | 17,988 | 18,949 | ||
Deferred revenue, less current portion | 13,780 | 13,780 | 19,021 | ||
Accumulated deficit | (1,229,696) | (1,229,696) | $ (2,117,941) | ||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | 1,087,717 | $ 34,589 | 1,125,735 | $ 59,317 | |
Royalty [Member] | |||||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | 8,563 | 7,434 | 19,639 | 14,651 | |
License, Collaboration and Other Revenue [Member] | |||||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | 1,064,246 | 4,824 | 1,077,973 | 10,916 | |
Product Sales [Member] | |||||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | 5,863 | $ 15,693 | 12,158 | $ 20,449 | |
ASC 606 [Member] | Adjustments [Member] | |||||
Condensed Consolidated Balance Sheet data | |||||
Accounts receivable, net | (9,875) | (9,875) | |||
Deferred revenue, current portion | 650 | 650 | |||
Deferred revenue, less current portion | 978 | 978 | |||
Accumulated deficit | (11,503) | (11,503) | |||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | 1,314 | 1,195 | |||
ASC 606 [Member] | Adjustments [Member] | Royalty [Member] | |||||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | 1,201 | 869 | |||
ASC 606 [Member] | Adjustments [Member] | License, Collaboration and Other Revenue [Member] | |||||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | 305 | 518 | |||
ASC 606 [Member] | Adjustments [Member] | Product Sales [Member] | |||||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | (192) | (192) | |||
ASC 606 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||||
Condensed Consolidated Balance Sheet data | |||||
Accounts receivable, net | 25,440 | 25,440 | |||
Deferred revenue, current portion | 18,638 | 18,638 | |||
Deferred revenue, less current portion | 14,758 | 14,758 | |||
Accumulated deficit | (1,241,199) | (1,241,199) | |||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | 1,089,031 | 1,126,930 | |||
ASC 606 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Royalty [Member] | |||||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | 9,764 | 20,508 | |||
ASC 606 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | License, Collaboration and Other Revenue [Member] | |||||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | 1,064,551 | 1,078,491 | |||
ASC 606 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Product Sales [Member] | |||||
Condensed Consolidated Statement of Operations data | |||||
Total revenue | $ 5,671 | $ 11,966 |
Cash and Investments in Marke23
Cash and Investments in Marketable Securities - Cash and Investments in Marketable Securities, Including Cash Equivalents (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||||
Cash and cash equivalents | $ 911,125 | $ 4,762 | $ 16,149 | $ 59,640 |
Short-term investments | 912,683 | 291,370 | ||
Long-term investments | 282,277 | 57,088 | ||
Total cash and investments in marketable securities | $ 2,106,085 | $ 353,220 |
Cash and Investments in Marke24
Cash and Investments in Marketable Securities - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash and Investments in Marketable Securities [Line Items] | ||||
Maximum maturity term for debt securities investment | Two years or less | |||
Weighted average maturity term for debt securities investment | One year or less | |||
Available-for-sale securities, sold | $ 0 | $ 0 | $ 11,963,000 | $ 8,823,000 |
Senior secured notes, maturity date | Oct. 5, 2020 | |||
Level 1 to level 2 transfers | 0 | 0 | $ 0 | 0 |
Level 2 to level 1 transfers | 0 | $ 0 | 0 | $ 0 |
Senior secured notes, principal amount | $ 250,000,000 | $ 250,000,000 | ||
Senior Notes [Member] | Level 3 [Member] | ||||
Cash and Investments in Marketable Securities [Line Items] | ||||
Debt instrument redemption terms | We may redeem some or all of these notes at a redemption price equal to 104% of the principal amount of the notes if the redemption date is prior to October 5, 2018, 102% of the principal amount of the notes if the redemption date is prior to October 5, 2019, or 100% of the principal amount of the notes if the redemption date is on or after October 5, 2019, plus, in each case, accrued and unpaid interest to the applicable redemption date. | |||
Senior Notes [Member] | 7.75% Senior Secured Notes Due October 2020 [Member] | ||||
Cash and Investments in Marketable Securities [Line Items] | ||||
Senior secured notes, interest rate | 7.75% | 7.75% | ||
Senior secured notes, maturity date | Oct. 5, 2020 | |||
Minimum cash and investments in marketable securities to be maintained | $ 60,000,000 | $ 60,000,000 | ||
Senior Notes [Member] | 7.75% Senior Secured Notes Due October 2020 [Member] | Level 3 [Member] | ||||
Cash and Investments in Marketable Securities [Line Items] | ||||
Senior secured notes, interest rate | 7.75% | 7.75% | ||
Senior secured notes, maturity date | Oct. 5, 2020 | |||
Senior secured notes, principal amount | $ 250,000,000 | $ 250,000,000 | ||
Senior notes fair value | $ 259,000,000 | $ 259,000,000 | ||
Senior Notes [Member] | 7.75% Senior Secured Notes Redemption Date Before October 5, 2018 [Member] | Level 3 [Member] | ||||
Cash and Investments in Marketable Securities [Line Items] | ||||
Debt redemption price percentage of principal amount | 104.00% | |||
Senior Notes [Member] | 7.75% Senior Secured Notes Redemption Date Before October 5, 2019 [Member] | Level 3 [Member] | ||||
Cash and Investments in Marketable Securities [Line Items] | ||||
Debt redemption price percentage of principal amount | 102.00% | |||
Senior Notes [Member] | 7.75% Senior Secured Notes Redemption Date After October 5, 2019 [Member] | Level 3 [Member] | ||||
Cash and Investments in Marketable Securities [Line Items] | ||||
Debt redemption price percentage of principal amount | 100.00% |
Cash and Investments in Marke25
Cash and Investments in Marketable Securities - Portfolio of Cash and Investments in Marketable Securities (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | $ 1,996,321 | $ 347,326 |
Cash | 2,752 | 4,460 |
Total cash and investments in marketable securities | 2,106,085 | 353,220 |
Corporate Commercial Paper [Member] | Fair Value Hierarchy Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 1,201,026 | 128,096 |
Corporate Notes and Bonds [Member] | Fair Value Hierarchy Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 671,323 | 216,253 |
Obligations of U.S. government agencies [Member] | Fair Value Hierarchy Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | 123,972 | 2,977 |
Money Market Funds [Member] | Fair Value Hierarchy Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in marketable securities | 100,299 | 302 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in marketable securities | $ 6,713 | $ 1,132 |
Inventory - Inventory (Detail)
Inventory - Inventory (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,807 | $ 1,796 |
Work-in-process | 9,483 | 4,843 |
Finished goods | 594 | 4,087 |
Total inventory | $ 11,884 | $ 10,726 |
Liability Related to Sale of 27
Liability Related to Sale of Future Royalties - Additional Information (Detail) - USD ($) $ in Thousands | Feb. 24, 2012 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 |
Liability Related to Sale of Future Royalties [Line Items] | ||||||
Non-cash royalty revenue related to sale of future royalties | $ 15,965 | $ 13,301 | ||||
Non-cash interest expense on liability related to sale of future royalties | $ 4,975 | $ 4,512 | $ 9,994 | $ 9,064 | ||
Annual interest rate | 17.60% | 17.00% | ||||
Prospective interest rate | 21.00% | |||||
Purchase and Sale Agreement with RPI [Member] | ||||||
Liability Related to Sale of Future Royalties [Line Items] | ||||||
Proceeds from sale of royalty rights | $ 124,000 | |||||
Transaction costs related to sale of potential future royalties | $ 4,400 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 6 Months Ended | |
May 31, 2018ft²yr | Jun. 30, 2018USD ($)ft² | Dec. 31, 2017USD ($) | |
Indemnification Obligation [Member] | |||
Loss Contingencies [Line Items] | |||
Litigation matters, liabilities | $ | $ 0 | $ 0 | |
Kilroy Realty Finance Partnership, L.P [Member] | |||
Loss Contingencies [Line Items] | |||
Lease space | ft² | 135,936 | ||
Leased space delivered | ft² | 1,726 | ||
Lease term start year | 2,018 | ||
Lease expiration year | 2,030 | ||
Remaining square feet of space expected delivery year | 2,019 | ||
Lease expiration date | Jan. 31, 2030 | ||
Lease, option to extend, description | The lease term will end on January 31, 2030, subject to our right to extend the term of the Lease for a consecutive five-year period. | ||
Number of consecutive 5 year terms to extend lease | yr | 1 | ||
Lease extension term | 5 years | ||
Annual base rent of operating lease | $ | $ 10,900,000 | ||
Operating lease, annual rate of increase in rent | 3.00% |
License and Collaboration Agr29
License and Collaboration Agreements - License, Collaboration and Other Revenue (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
License And Collaboration Agreements [Line Items] | ||||
License, collaboration and other revenue | $ 1,064,246 | $ 4,824 | $ 1,077,973 | $ 10,916 |
Bristol-Myers Squibb [Member] | NKTR-214 [Member] | ||||
License And Collaboration Agreements [Line Items] | ||||
License, collaboration and other revenue | 1,059,768 | 0 | 1,059,768 | 0 |
Baxalta Incorporated/Shire [Member] | ADYNOVATE [Member] | ||||
License And Collaboration Agreements [Line Items] | ||||
License, collaboration and other revenue | 18 | 45 | 10,028 | 45 |
Eli Lilly and Company [Member] | NKTR-358 [Member] | ||||
License And Collaboration Agreements [Line Items] | ||||
License, collaboration and other revenue | 3,052 | 0 | 5,406 | 0 |
Amgen, Inc. [Member] | Neulasta [Member] | ||||
License And Collaboration Agreements [Line Items] | ||||
License, collaboration and other revenue | 1,250 | 1,250 | 2,500 | 2,500 |
AstraZeneca AB [Member] | MOVANTIK and MOVANTIK fixed-dose combination program [Member] | ||||
License And Collaboration Agreements [Line Items] | ||||
License, collaboration and other revenue | 0 | 1,600 | 0 | 4,600 |
Other [Member] | ||||
License And Collaboration Agreements [Line Items] | ||||
License, collaboration and other revenue | $ 158 | $ 1,929 | $ 271 | $ 3,771 |
License and Collaboration Agr30
License and Collaboration Agreements - Additional Information (Detail) - USD ($) | Feb. 13, 2018 | Aug. 23, 2017 | Apr. 30, 2018 | Nov. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2010 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2015 | Dec. 31, 2017 |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Revenue recognized in period related to performance in prior periods | $ 17,600,000 | $ 45,600,000 | ||||||||||||
Deferred revenue, current portion | 17,988,000 | 17,988,000 | $ 18,949,000 | |||||||||||
Deferred revenue, less current portion | 13,780,000 | 13,780,000 | 19,021,000 | |||||||||||
Potential future additional development and regulatory milestones | 1,700,000,000 | 1,700,000,000 | ||||||||||||
Accounts receivable, net | 35,315,000 | 35,315,000 | 5,014,000 | |||||||||||
Revenue related to license activities | 1,087,717,000 | $ 34,589,000 | 1,125,735,000 | $ 59,317,000 | ||||||||||
Deferred revenue | 31,768,000 | $ 31,768,000 | $ 37,970,000 | |||||||||||
AstraZeneca-Kirin [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of upfront payment, market access milestone payments, royalties and sales milestone payments | 40.00% | |||||||||||||
Nektar's [Member] | NKTR-358 [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Received upfront and milestone payment | $ 150,000,000 | |||||||||||||
Percentage of sharing in Phase 2 development costs | 25.00% | |||||||||||||
Regulatory milestones payment, description | A portion of the development milestones may be reduced by 50% under certain conditions, related to the final formulation of the approved product and the timing of prior approval (if any) of competitive products with a similar mechanism of action, which could reduce these milestone payments by 75% if both conditions occur. | |||||||||||||
Deferred revenue | 14,500,000 | $ 14,500,000 | ||||||||||||
NKTR-214 [Member] | Nektar's [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Upfront and milestone payments received from license agreements | $ 1,000,000,000 | |||||||||||||
NKTR-214 [Member] | Nektar's [Member] | Maximum [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Maximum total additional cash payments receivable upon achievement of certain development and regulatory milestones | 1,400,000,000 | |||||||||||||
Eligible additional cash payments receivable upon achievement of certain sales milestones | 350,000,000 | |||||||||||||
NKTR-214 [Member] | Nektar's [Member] | BMS Collaboration Agreement [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Global commercialization profits and losses sharing percentage | 65.00% | |||||||||||||
NKTR-214 [Member] | Nektar's [Member] | BMS Collaboration Agreement [Member] | Opdivo [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of sharing development costs | 32.50% | |||||||||||||
NKTR-214 [Member] | Nektar's [Member] | BMS Collaboration Agreement [Member] | Opdivo and Yervoy [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of sharing development costs | 22.00% | |||||||||||||
Baxalta Incorporated/Shire [Member] | Hemophilia | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Received under right to sublicense agreement | $ 12,000,000 | |||||||||||||
Baxalta Incorporated/Shire [Member] | Hemophilia | European Union [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Upfront and milestone payments received from license agreements | 10,000,000 | |||||||||||||
Baxalta Incorporated/Shire [Member] | Hemophilia | ASC 606 [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Deferred revenue | 1,000,000 | 1,000,000 | ||||||||||||
Baxalta Incorporated/Shire [Member] | Hemophilia | ASC 606 [Member] | European Union [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Development milestones received | 10,000,000 | |||||||||||||
Bristol-Myers Squibb [Member] | Purchase Agreement [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Shares of common stock purchased | 8,284,600 | |||||||||||||
Sale of stock consideration received | $ 850,000,000 | |||||||||||||
Bristol-Myers Squibb [Member] | BMS Collaboration Agreement [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Accounts receivable, net | 21,600,000 | 21,600,000 | ||||||||||||
Bristol-Myers Squibb [Member] | BMS Collaboration Agreement [Member] | Purchase Agreement [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Total consideration received under agreements | 1,850,000,000 | |||||||||||||
Estimated fair value of shares | $ 790,200,000 | |||||||||||||
Closing date price of common stock | $ 99.36 | |||||||||||||
Remaining amount allocated to transaction price | $ 1,059,800,000 | |||||||||||||
Potential future development, regulatory and sales milestones | 1,800,000,000 | 1,800,000,000 | ||||||||||||
Bristol-Myers Squibb [Member] | NKTR-214 [Member] | Research and Development Expense [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Reimbursement of costs | 22,500,000 | 24,800,000 | ||||||||||||
Bristol-Myers Squibb [Member] | NKTR-214 [Member] | BMS Collaboration Agreement [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Global commercialization profits and losses sharing percentage | 35.00% | |||||||||||||
Amount recognized for granting licenses | 1,059,800,000 | 1,059,800,000 | ||||||||||||
Bristol-Myers Squibb [Member] | NKTR-214 [Member] | BMS Collaboration Agreement [Member] | Research and Development Expense [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Reimbursement of costs | 900,000 | 900,000 | ||||||||||||
Bristol-Myers Squibb [Member] | NKTR-214 [Member] | BMS Collaboration Agreement [Member] | Opdivo [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of sharing development costs | 67.50% | |||||||||||||
Bristol-Myers Squibb [Member] | NKTR-214 [Member] | BMS Collaboration Agreement [Member] | Opdivo and Yervoy [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of sharing development costs | 78.00% | |||||||||||||
Bristol-Myers Squibb [Member] | NKTR-214 [Member] | Clinical Trial Agreement [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of out-of-pocket costs to be reimbursed by partner | 50.00% | |||||||||||||
Eli Lilly and Company [Member] | NKTR-358 [Member] | Phase 1 Clinical Development [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Received upfront and milestone payment | 17,600,000 | |||||||||||||
Eli Lilly and Company [Member] | NKTR-358 [Member] | Drug Product Development [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Received upfront and milestone payment | 6,500,000 | |||||||||||||
Eli Lilly and Company [Member] | NKTR-358 [Member] | Maximum [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Potential future additional development and regulatory milestones | 250,000,000 | 250,000,000 | ||||||||||||
Eli Lilly and Company [Member] | Nektar's [Member] | NKTR-358 [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of regulatory milestones payments will be reduced under certain conditions | 50.00% | |||||||||||||
Percentage of regulatory milestones payments will be reduced if conditions occur | 75.00% | |||||||||||||
Eli Lilly and Company [Member] | Nektar's [Member] | NKTR-358 [Member] | Maximum [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of funding phase 3 development costs on an indication by indication basis borne | 25.00% | |||||||||||||
Eli Lilly and Company [Member] | Nektar's [Member] | NKTR-358 [Member] | Minimum [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of funding phase 3 development costs on an indication by indication basis borne | 0.00% | |||||||||||||
Eli Lilly and Company [Member] | License and Maintenance | NKTR-358 [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Received upfront and milestone payment | 125,900,000 | |||||||||||||
Eli Lilly and Company [Member] | License and Maintenance | NKTR-358 [Member] | ASC 606 [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Revenue related to license activities | $ 125,900,000 | |||||||||||||
Eli Lilly [Member] | NKTR-358 [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of sharing in Phase 2 development costs | 75.00% | |||||||||||||
Amgen, Inc. [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Received upfront and milestone payment | $ 50,000,000 | |||||||||||||
Amgen, Inc. [Member] | ASC 606 [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Deferred revenue | 11,700,000 | 11,700,000 | ||||||||||||
AstraZeneca AB [Member] | MOVANTIK and MOVANTIK fixed-dose combination program [Member] | Upfront Payment Arrangement [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Received upfront and milestone payment | $ 385,000,000 | |||||||||||||
AstraZeneca AB [Member] | MOVANTIK Fixed-dose Combination Program [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Potential contingent payments based on development events | 75,000,000 | 75,000,000 | ||||||||||||
AstraZeneca AB [Member] | AstraZeneca-Kirin [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Received upfront and milestone payment | $ 4,600,000 | |||||||||||||
Deferred revenue | 0 | 0 | ||||||||||||
Percentage of upfront payment, market access milestone payments, royalties and sales milestone payments from sublicense agreement retained by our collaboration partner | 60.00% | |||||||||||||
Other [Member] | ||||||||||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||||||||||||
Potential future additional payments for development and regulatory milestones | 45,500,000 | |||||||||||||
Deferred revenue | $ 4,600,000 | $ 4,600,000 |
License and Collaboration Agr31
License and Collaboration Agreements - Changes in Deferred Revenue Balance from Collaboration Agreements (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jan. 01, 2018 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Deferred revenue, Beginning balance | $ 37,970 | |
Additions to deferred revenue | 4,000 | |
Recognition of previously unearned revenue | (8,249) | |
Deferred revenue, Ending balance | $ 31,768 | |
ASC 606 [Member] | ||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||
Transition adjustment related to adoption of ASC 606 | $ (1,953) |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 20,660 | $ 8,099 | $ 40,608 | $ 16,283 |
Cost of Goods Sold [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 1,163 | 538 | 2,294 | 1,092 |
Research and Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | 12,991 | 4,620 | 25,084 | 9,217 |
General and Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation | $ 6,506 | $ 2,941 | $ 13,230 | $ 5,974 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock issuances under equity compensation plans | 1,750,908 | 1,130,164 | 4,605,724 | 2,648,769 |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted stock options | 528,975 | 956,160 | 738,675 | 1,285,020 |
Weighted average grant-date fair value | $ 44.32 | $ 8.96 | $ 41.53 | $ 8.70 |
Restricted Stock Units (RSU) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Awards granted | 396,240 | 0 | 406,240 | 0 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average of potentially dilutive securities (stock options and RSUs) included in calculation of diluted securities under treasury stock method | 10.9 | 12.1 | ||
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average antidilutive securities excluded from computation of earnings per share | 3.2 | 3.1 | ||
Stock Options and Restricted Stock Units [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted average antidilutive securities excluded from computation of earnings per share | 20.2 | 20.7 |