Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 01, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | NBIX | ||
Entity Registrant Name | NEUROCRINE BIOSCIENCES INC | ||
Entity Central Index Key | 914,475 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 86,452,994 | ||
Entity Public Float | $ 3,026,332,411 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 74,195 | $ 31,014 |
Short-term investments, available-for-sale | 304,996 | 162,795 |
Other current assets | 4,883 | 4,394 |
Total current assets | 384,074 | 198,203 |
Property and equipment, net | 3,432 | 2,507 |
Long-term investments, available-for-sale | 82,488 | 37,492 |
Restricted cash | 4,791 | 4,831 |
Total assets | 474,785 | 243,033 |
Current liabilities: | ||
Accounts payable | 2,561 | 246 |
Accrued liabilities | 19,034 | 11,508 |
Current portion of deferred rent | 269 | 119 |
Current portion of cease-use liability | 428 | 467 |
Current portion of deferred gain on sale of real estate | 3,423 | 3,324 |
Total current liabilities | 25,715 | 15,664 |
Deferred gain on sale of real estate | 10,898 | 14,322 |
Deferred revenue | 10,231 | 0 |
Deferred rent | 1,711 | 1,877 |
Cease-use liability | 1,555 | 2,211 |
Other liabilities | 221 | 260 |
Total liabilities | $ 50,331 | $ 34,334 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | $ 0 | $ 0 |
Common stock, $0.001 par value; 110,000,000 shares authorized; issued and outstanding shares were 86,262,594 and 76,465,942 at December 31, 2015 and 2014, respectively | 86 | 76 |
Additional paid-in capital | 1,340,579 | 1,035,205 |
Accumulated other comprehensive loss | (977) | (277) |
Accumulated deficit | (915,234) | (826,305) |
Total stockholders' equity | 424,454 | 208,699 |
Total liabilities and stockholders' equity | $ 474,785 | $ 243,033 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 86,262,594 | 76,465,942 |
Common stock, shares outstanding | 86,262,594 | 76,465,942 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | |||
Milestones and license fees | $ 19,769 | $ 0 | $ 2,919 |
Total revenues | 19,769 | 0 | 2,919 |
Operating expenses: | |||
Research and development | 81,491 | 46,425 | 39,248 |
General and administrative | 32,480 | 17,986 | 13,349 |
Total operating expenses | 113,971 | 64,411 | 52,597 |
Loss from operations | (94,202) | (64,411) | (49,678) |
Other income: | |||
Gain (loss) on sale/disposal of assets | 9 | (4) | 37 |
Deferred gain on real estate | 3,325 | 3,226 | 3,133 |
Investment income, net | 1,928 | 629 | 402 |
Other income, net | 11 | 18 | 16 |
Total other income | 5,273 | 3,869 | 3,588 |
Net loss | $ (88,929) | $ (60,542) | $ (46,090) |
Net loss per common share: | |||
Basic | $ (1.05) | $ (0.81) | $ (0.69) |
Diluted | $ (1.05) | $ (0.81) | $ (0.69) |
Shares used in the calculation of net loss per common share: | |||
Basic | 84,496 | 74,577 | 66,989 |
Diluted | 84,496 | 74,577 | 66,989 |
Other comprehensive loss: | |||
Net loss | $ (88,929) | $ (60,542) | $ (46,090) |
Net unrealized (losses) gains on available-for-sale securities | (700) | (282) | 7 |
Comprehensive loss | $ (89,629) | $ (60,824) | $ (46,083) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid in Capital | Accumulated Other Comprehensive (Loss) Gain | Accumulated Deficit |
Beginning balance at Dec. 31, 2012 | $ 154,372 | $ 66 | $ 873,981 | $ (2) | $ (719,673) |
Beginning balance (in shares) at Dec. 31, 2012 | 66,447 | ||||
Net income (loss) | (46,090) | $ 0 | 0 | 0 | (46,090) |
Unrealized gains (losses) on investments | 7 | 0 | 0 | 7 | 0 |
Share-based compensation | 6,819 | 0 | 6,819 | 0 | 0 |
Issuance of common stock for option exercises | $ 5,302 | $ 1 | 5,301 | 0 | 0 |
Issuance of common stock for option exercises (in shares) | 904 | 904 | |||
Ending balance at Dec. 31, 2013 | $ 120,410 | $ 67 | 886,101 | 5 | (765,763) |
Ending balance (in shares) at Dec. 31, 2013 | 67,351 | ||||
Net income (loss) | (60,542) | $ 0 | 0 | 0 | (60,542) |
Unrealized gains (losses) on investments | (282) | 0 | 0 | (282) | 0 |
Share-based compensation | 10,382 | 0 | 10,382 | 0 | 0 |
Issuance of common stock for restricted share units vested | 0 | $ 0 | 0 | 0 | 0 |
Issuance of common stock for restricted share units vested (in shares) | 93 | ||||
Issuance of common stock for option exercises | $ 5,560 | $ 1 | 5,559 | 0 | 0 |
Issuance of common stock for option exercises (in shares) | 1,135 | 1,022 | |||
Issuance of common stock, net of offering costs | $ 133,171 | $ 8 | 133,163 | 0 | 0 |
Issuance of common stock, net of offering costs (in shares) | 8,000 | ||||
Ending balance at Dec. 31, 2014 | 208,699 | $ 76 | 1,035,205 | (277) | (826,305) |
Ending balance (in shares) at Dec. 31, 2014 | 76,466 | ||||
Net income (loss) | (88,929) | $ 0 | 0 | 0 | (88,929) |
Unrealized gains (losses) on investments | (700) | 0 | 0 | (700) | 0 |
Share-based compensation | 28,392 | 0 | 28,392 | 0 | 0 |
Issuance of common stock for restricted share units vested | 1 | $ 1 | 0 | 0 | 0 |
Issuance of common stock for restricted share units vested (in shares) | 503 | ||||
Issuance of common stock for option exercises | $ 6,304 | $ 1 | 6,303 | 0 | 0 |
Issuance of common stock for option exercises (in shares) | 1,315 | 1,308 | |||
Issuance of common stock, net of offering costs | $ 270,687 | $ 8 | 270,679 | 0 | 0 |
Issuance of common stock, net of offering costs (in shares) | 7,986 | ||||
Ending balance at Dec. 31, 2015 | $ 424,454 | $ 86 | $ 1,340,579 | $ (977) | $ (915,234) |
Ending balance (in shares) at Dec. 31, 2015 | 86,263 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOW FROM OPERATING ACTIVITIES | |||
Net loss | $ (88,929) | $ (60,542) | $ (46,090) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 1,009 | 827 | 671 |
Gain on sale of assets, net | (3,334) | (3,222) | (3,170) |
Cease-use expense | (85) | 0 | 0 |
Deferred revenues | 10,231 | 0 | (2,919) |
Deferred rent | (16) | 14 | 142 |
Amortization of premiums on investments | 6,032 | 3,792 | 2,843 |
Non-cash share-based compensation expense | 28,392 | 10,382 | 6,819 |
Change in operating assets and liabilities: | |||
Accounts receivable and other assets | (489) | (1,671) | 13,528 |
Cease-use liability | (610) | (418) | (590) |
Other liabilities | (39) | 0 | 108 |
Accounts payable and accrued liabilities | 9,841 | 3,698 | (949) |
Net cash used in operating activities | (37,997) | (47,140) | (29,607) |
CASH FLOW FROM INVESTING ACTIVITIES | |||
Purchases of investments | (449,052) | (257,544) | (145,328) |
Sales/maturities of investments | 255,123 | 154,133 | 151,281 |
Deposits and restricted cash | 40 | (388) | (108) |
Proceeds from sales of property and equipment | 9 | 45 | 40 |
Purchases of property and equipment | (1,934) | (1,612) | (545) |
Net cash (used in) provided by investing activities | (195,814) | (105,366) | 5,340 |
CASH FLOW FROM FINANCING ACTIVITIES | |||
Issuance of common stock | 276,992 | 138,731 | 5,302 |
Net cash provided by financing activities | 276,992 | 138,731 | 5,302 |
Net change in cash and cash equivalents | 43,181 | (13,775) | (18,965) |
Cash and cash equivalents at beginning of the year | 31,014 | 44,789 | 63,754 |
Cash and cash equivalents at end of the year | 74,195 | 31,014 | 44,789 |
SUPPLEMENTAL DISCLOSURES | |||
Taxes paid | $ 0 | $ 0 | $ 0 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Activities. Neurocrine Continental, Inc., is a Delaware corporation and a wholly owned subsidiary of the Company and was inactive for all periods presented. The Company also has two wholly-owned Irish subsidiaries, Neurocrine Therapeutics, Ltd. and Neurocrine Europe, Ltd. which were formed in December 2014, both of which are inactive. Principles of Consolidation. Use of Estimates. Cash Equivalents. . Short-Term and Long-Term Investments Available-for-Sale. Concentration of Credit Risk. Collaboration Agreements. Property and Equipment. Industry Segment and Geographic Information. Impairment of Long-Lived Assets. Fair Value of Financial Instruments. Research and Development Expenses. Share-Based Compensation. Investment Income, net. Years Ended December 31, 2015 2014 2013 Interest income $ 1,928 $ 629 $ 400 Realized gains, net — — 2 Total $ 1,928 $ 629 $ 402 Net Loss Per Share. Due to the Company’s net loss position in 2015, 2014 and 2013, approximately 4.1 million, 2.9 million and 2.1 million, respectively, of common share equivalents were excluded from the diluted common shares outstanding. For the years ended December 31, 2015, 2014 and 2013, there were employee stock options, calculated on a weighted average basis, to purchase 0.1 million, 1.0 million, and 0.3 million shares of our common stock with an exercise price greater than the average market price of the underlying common shares. Impact of Recently Issued Accounting Standards. In November 2015, the FASB issued an ASU, “Income Taxes: Balance Sheet Classification of Deferred Taxes,” which ASU eliminates the current requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. This ASU applies to all organizations that present a classified balance sheet. The ASU is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has adopted this standard as of December 31, 2015 with retroactive application. |
REVENUE RECOGNITION AND SIGNIFI
REVENUE RECOGNITION AND SIGNIFICANT COLLABORATIVE RESEARCH AND DEVELOPMENT AGREEMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
REVENUE RECOGNITION AND SIGNIFICANT COLLABORATIVE RESEARCH AND DEVELOPMENT AGREEMENTS | NOTE 2. REVENUE RECOGNITION AND SIGNIFICANT COLLABORATIVE RESEARCH AND DEVELOPMENT AGREEMENTS Revenue Recognition Policy. Since 2011, the Company has followed the Accounting Standards Codification (ASC) for Revenue Recognition - Multiple-Element Arrangements, if applicable, to determine the recognition of revenue under license and collaboration agreements. The terms of these agreements generally contain multiple elements, or deliverables, which may include (i) licenses to the Company’s intellectual property, (ii) materials and technology, (iii) pharmaceutical supply, (iv) participation on joint development or joint steering committees, and (v) development services. The payments the Company receives under these arrangements typically include one or more of the following: up-front license fees; funding of research and/or development efforts; amounts due upon the achievement of specified milestones; manufacturing and royalties on future product sales. The ASC provides guidance relating to the separation of deliverables included in an arrangement into different units of accounting and the allocation of consideration to the units of accounting. The evaluation of multiple-element arrangements requires management to make judgments about (i) the identification of deliverables, (ii) whether such deliverables are separable from the other aspects of the contractual relationship, (iii) the estimated selling price of each deliverable, and (iv) the expected period of performance for each deliverable. To determine the units of accounting under a multiple-element arrangement, management evaluates certain separation criteria, including whether the deliverables have stand-alone value, based on the relevant facts and circumstances for each arrangement. The selling prices of deliverables under an arrangement may be derived using vendor specific objective evidence (VSOE), third-party evidence, or a best estimate of selling price (BESP), if VSOE or third-party evidence is not available. For most pharmaceutical licensing and collaboration agreements, BESP is utilized. The objective of BESP is to determine the price at which the Company would transact a sale if the element within the agreement was sold on a standalone basis. Establishing BESP involves management’s judgment and considers multiple factors, including market conditions and company-specific factors, including those factors contemplated in negotiating the agreements, as well as internally developed models that include assumptions related to market opportunity, discounted cash flows, estimated development costs, probability of success and the time needed to commercialize a product candidate pursuant to the agreement. In validating the BESP, management considers whether changes in key assumptions used to determine the BESP will have a significant effect on the allocation of the arrangement consideration between the multiple deliverables. The allocated consideration for each unit of accounting is recognized over the related obligation period in accordance with the applicable revenue recognition criteria. If there are deliverables in an arrangement that are not separable from other aspects of the contractual relationship, they are treated as a combined unit of accounting, with the allocated revenue for the combined unit recognized in a manner consistent with the revenue recognition applicable to the final deliverable in the combined unit. Payments received prior to satisfying the relevant revenue recognition criteria are recorded as unearned revenue in the accompanying balance sheets and recognized as revenue when the related revenue recognition criteria are met. The Company typically receives up-front payments when licensing its intellectual property, which often occurs in conjunction with a R&D agreement. The Company recognizes revenue attributed to the license upon delivery, provided that the license has stand-alone value. For payments payable on achievement of milestones that do not meet all of the conditions to be considered substantive, the Company recognizes the portion of the payment allocable to delivered items as revenue when the specific milestone is achieved, and the contingency is removed. Prior to the revised multiple element guidance described above, adopted by the Company on January 1, 2011, upfront, nonrefundable payments for license fees, grants, and advance payments for sponsored research revenues received in excess of amounts earned were classified as deferred revenue and recognized as income over the contract or development period. Revenues from development milestones are accounted for in accordance with the Revenue Recognition – Milestone Method Topic of the FASB ASC (Milestone Method). Milestones are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence that the milestone has been achieved, provided that the milestone event is substantive. A milestone event is considered to be substantive if its achievability was not reasonably assured at the inception of the agreement and the Company’s efforts led to the achievement of the milestone or the milestone was due upon the occurrence of a specific outcome resulting from the Company’s performance. The Company assesses whether a milestone is substantive at the inception of each agreement. Mitsubishi Tanabe Pharma Corporation (Mitsubishi Tanabe). Under the terms of the Company’s agreement with Mitsubishi Tanabe, the collaboration effort between the parties to advance NBI-98854 towards commercialization in Japan and other select Asian markets is governed by a joint steering committee and joint development committee with representatives from both the Company and Mitsubishi Tanabe. There are no performance, cancellation, termination or refund provisions in the agreement that would have a material financial consequence to the Company. The Company does not directly control when event-based payments will be achieved or when royalty payments will begin. Mitsubishi Tanabe may terminate the agreement at its discretion upon 180 days’ written notice to the Company. In such event, all valbenazine product rights for Japan and other select Asian markets would revert to the Company. The Company has identified the following deliverables associated with the Mitsubishi Tanabe agreement: valbenazine technology license and existing know-how, development activities to be performed as part of the collaboration, and the manufacture of pharmaceutical products. The respective standalone value from each of these deliverables has been determined by applying the BESP method and the revenue was allocated based on the relative selling price method with revenue recognition timing to be determined either by delivery or the provision of services. As discussed above, the BESP method required the use of significant estimates. The Company used an income approach to estimate the selling price for the technology license and an expense approach for estimating development activities and the manufacture of pharmaceutical products. The development activities and the manufacture of pharmaceutical products are expected to be delivered throughout the duration of the agreement. The technology license and existing know-how was delivered on the effective date of the agreement. For the year ended December 31, 2015, the Company recognized revenue under this agreement of $19.8 million associated with the delivery of a technology license and existing know-how. In accordance with the Company’s continuing performance obligations, $10.2 million of the $30 million up-front payment is being deferred and recognized in future periods. Under the terms of the agreement, there is no general obligation to return the up-front payment for any non-contingent deliverable. The Company evaluated the event-based payments under the Milestone Method and concluded only one immaterial event-based payment represents a substantive milestone. Event-based payments will be recognized when earned. The Company is eligible to receive from Mitsubishi Tanabe tiered royalty payments based on product sales in Japan and other select Asian markets. Royalties will be recognized as earned in accordance with the terms of the agreement, when product sales are reported by Mitsubishi Tanabe, the amount can be reasonably estimated, and collectability is reasonably assured. AbbVie Inc. ( AbbVie ) Under the terms of the agreement, AbbVie is responsible for all third-party development, marketing and commercialization costs. The Company will be entitled to a percentage of worldwide sales of GnRH Compounds for the longer of ten years or the life of the related patent rights. AbbVie may terminate the collaboration at its discretion upon 180 days’ written notice to the Company. In such event, the Company would be entitled to specified payments for ongoing clinical development and related activities and all GnRH Compound product rights would revert to the Company. There was no revenue recognized in 2015, 2014 or 2013 related to this collaboration. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
INVESTMENTS | NOTE 3. INVESTMENTS Available-for-sale securities are carried at fair value, with the unrealized gains and losses reported in comprehensive loss. The amortized cost of debt securities in this category is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included in investment income. Realized gains and losses and declines in value judged to be other-than-temporary, if any, on available-for-sale securities are included in other income or expense. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available-for-sale are included in investment income. Investments at December 31, 2015 and 2014 consisted of the following (in thousands): Years Ended 2015 2014 Certificates of deposit $ 10,078 $ 17,438 Commercial paper 23,955 7,498 Corporate debt securities 323,219 174,323 Securities of government-sponsored entities 30,232 1,028 Total investments $ 387,484 $ 200,287 The following is a summary of investments classified as available-for-sale securities (in thousands): Contractual Amortized Gross Gross Aggregate December 31, 2015: Classified as current assets: Certificates of deposit Less than 1 $ 9,120 $ 1 $ (1 ) $ 9,120 Commercial paper Less than 1 23,965 1 (11 ) 23,955 Corporate debt securities Less than 1 254,592 1 (414 ) 254,179 Securities of government-sponsored entities Less than 1 17,762 1 (21 ) 17,742 Total short-term available-for-sale securities $ 305,439 $ 4 $ (447 ) $ 304,996 Classified as non-current assets: Certificates of deposit 1 to 2 $ 960 $ — $ (2 ) $ 958 Corporate debt securities 1 to 2 69,528 — (488 ) 69,040 Securities of government-sponsored entities 1 to 2 12,534 — (44 ) 12,490 Total long-term available-for-sale securities $ 83,022 $ — $ (534 ) $ 82,488 December 31, 2014: Classified as current assets: Certificates of deposit Less than 1 $ 9,072 $ — $ (6 ) $ 9,066 Commercial paper Less than 1 7,497 1 — 7,498 Corporate debt securities Less than 1 145,321 5 (123 ) 145,203 Securities of government-sponsored entities Less than 1 1,029 — (1 ) 1,028 Total short-term available-for-sale securities $ 162,919 $ 6 $ (130 ) $ 162,795 Classified as non-current assets: Certificates of deposit 1 to 2 $ 8,400 $ — $ (28 ) $ 8,372 Corporate debt securities 1 to 2 29,245 — (125 ) 29,120 Total long-term available-for-sale securities $ 37,645 $ — $ (153 ) $ 37,492 (1) Unrealized gains and losses are included in other comprehensive loss. The following table presents gross unrealized losses and fair value for those available-for-sale investments that were in an unrealized loss position as of December 31, 2015 and 2014, aggregated by investment category and length of time that individual securities have been in a continuous loss position (in thousands): Less Than 12 Months 12 Months or Greater Total Estimated Unrealized Estimated Unrealized Estimated Unrealized December 31, 2015: Certificates of deposit $ 5,517 $ (3 ) $ — $ — $ 5,517 $ (3 ) Commercial paper 16,959 (11 ) — — 16,959 (11 ) Corporate debt securities 310,160 (880 ) 5,521 (22 ) 315,681 (902 ) Securities of government-sponsored entities 25,913 (65 ) — — 25,913 (65 ) Total $ 358,549 $ (959 ) $ 5,521 $ (22 ) $ 364,070 $ (981 ) December 31, 2014: Certificates of deposit $ 16,957 $ (34 ) $ — $ — $ 16,957 $ (34 ) Corporate debt securities 149,477 (248 ) — — 149,477 (248 ) Securities of government-sponsored entities 1,028 (1 ) — — 1,028 (1 ) Total $ 167,462 $ (283 ) $ — $ — $ 167,462 $ (283 ) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 4. FAIR VALUE MEASUREMENTS Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-tier fair value hierarchy has been established, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs include quoted prices for similar instruments in active markets and/or quoted prices for identical or similar instruments in markets that are not active near the measurement date; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The Company classifies its cash equivalents and available for sale investments within Level 1 or Level 2. The fair value of the Company’s high quality investment grade corporate debt securities is determined using proprietary valuation models and analytical tools. These valuation models and analytical tools use market pricing or prices for similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids and/or offers. The Company did not reclassify any investments between levels in the fair value hierarchy during the years ended December 31, 2015 and 2014. The Company’s assets which are measured at fair value on a recurring basis as of December 31, 2015 and 2014 were determined using the inputs described above (in millions): Fair Value Measurements Using Carrying Quoted Prices in Significant Other Significant December 31, 2015: Classified as current assets: Cash and money market funds $ 69.5 $ 69.5 $ — $ — Certificates of deposit 9.1 9.1 — — Commercial paper 24.0 — 24.0 — Securities of government-sponsored entities 17.7 — 17.7 — Corporate debt securities 259.0 — 259.0 — Subtotal 379.3 78.6 300.7 — Classified as long-term assets: Certificates of deposit 5.7 5.7 — — Securities of government-sponsored entities 12.5 — 12.5 — Corporate debt securities 69.0 — 69.0 — Total 466.5 84.3 382.2 — Less cash, cash equivalents and restricted cash (79.0 ) (74.2 ) (4.8 ) — Total investments $ 387.5 $ 10.1 $ 377.4 $ — December 31, 2014: Classified as current assets: Cash and money market funds $ 28.7 $ 28.7 $ — $ — Certificates of deposit 9.1 9.1 — — Commercial paper 7.5 — 7.5 — Securities of government-sponsored entities 1.5 — 1.5 — Corporate debt securities 147.0 — 147.0 — Subtotal 193.8 37.8 156.0 — Classified as long-term assets: Certificates of deposit 13.2 13.2 — — Corporate debt securities 29.1 — 29.1 — Total 236.1 51.0 185.1 — Less cash, cash equivalents and restricted cash (35.8 ) (33.5 ) (2.3 ) — Total investments $ 200.3 $ 17.5 $ 182.8 $ — |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE 5. PROPERTY AND EQUIPMENT Property and equipment, net, at December 31, 2015 and 2014 consisted of the following (in thousands): 2015 2014 Tenant improvements 1,335 1,226 Furniture and fixtures 837 819 Equipment 28,121 29,208 30,293 31,253 Less accumulated depreciation (26,861 ) (28,746 ) Property and equipment, net $ 3,432 $ 2,507 For each of the years ended December 31, 2015, 2014 and 2013, depreciation expense was $1.0 million, $0.8 million and $0.7 million, respectively. During 2015, 2014 and 2013, the Company recognized a gain/(loss) of approximately $9,000, ($4,000) and $37,000, respectively, related to disposal of capital equipment. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
ACCRUED LIABILITIES | NOTE 6. ACCRUED LIABILITIES Accrued liabilities at December 31, 2015 and 2014 consisted of the following (in thousands): 2015 2014 Accrued employee related costs $ 7,358 $ 6,520 Accrued development costs 7,359 1,706 Other accrued liabilities 4,317 3,282 $ 19,034 $ 11,508 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7. COMMITMENTS AND CONTINGENCIES Real Estate. Upon the closing of the sale of the facility and associated real property, the Company entered into a lease agreement (Lease) whereby it leased back for an initial term of 12 years its corporate headquarters comprised of two buildings located at 12790 El Camino Real (Front Building) and 12780 El Camino Real (Rear Building) in San Diego, California. The Company also entered into a series of lease amendments (Amendments), beginning in late 2008, through which it vacated the Front Building, but continues to occupy the Rear Building. The ultimate result of this real estate sale was a net gain of $39.1 million which was deferred in accordance with authoritative guidance. For the years ended December 31, 2015, 2014 and 2013, the Company recognized $3.3 million, $3.2 million and $3.1 million, respectively, of the deferred gain and will recognize the remaining $14.3 million of the deferred gain over the initial Lease term which will expire at the end of 2019. Under the terms of the Lease and the Amendments, the Company pays base annual rent (subject to an annual fixed percentage increase), plus a 3.5% annual management fee, property taxes and other normal and necessary expenses associated with the Lease such as utilities, repairs and maintenance. In lieu of a cash security deposit under the Lease, Wells Fargo Bank, N.A. issued on the Company’s behalf a letter of credit in the amount of $4.6 million, which is secured by a deposit of equal amount with the same bank. The Company also has the right to extend the Lease for two consecutive ten-year terms. As of December 31, 2015, the Company has two sublease agreements for approximately 30,000 square feet of the Rear Building. These subleases are expected to result in approximately $1.1 million of rental income in 2016 with this sublease rental income being recorded as an offset to rent expense. The income generated under these subleases is lower than the Company’s financial obligation under the Lease for the Rear Building, as determined on a per square foot basis. Consequently, at the inception of such a sublease, or in association with an amendment to such sublease, the Company is required to record a cease-use liability for the net present value of the estimated difference between the expected income to be generated under the subleases and future subleases and the Lease obligation over the remaining term of the Lease for the space that is occupied by the subtenant. The subleases provide various options to extend for additional one-year renewal periods. The current terms each of these two subleases expire in February 2017 and March 2018. The following table sets forth changes to the accrued cease-use liability during 2015 and 2014 (in thousands): Years Ended 2015 2014 Beginning balance $ 2,678 $ 3,096 Change in estimate (85 ) — Payments (610 ) (418 ) Ending balance $ 1,983 $ 2,678 Rent Expense. Lease Commitments. As of December 31, 2015, the total estimated future annual minimum lease payments under the Company’s non-cancelable building lease for the years ending after December 31, 2015 were as follows (in thousands): Payment Amount 2016 $ 7,606 2017 7,834 2018 8,070 2019 8,311 2020 and thereafter — Total future minimum lease payments $ 31,821 Product Liability. Licensing and Research Agreements. Litigation. Icahn School of Medicine at Mount Sinai v. Neurocrine Biosciences, Inc. The Company is not aware of any other proceedings or claims that it believes will have, individually or in the aggregate, a material adverse effect on its business, financial condition or results of operations. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 8. SHARE-BASED COMPENSATION Share-Based Compensation Plans. The Company also issues stock options under the Neurocrine Biosciences, Inc. Inducement Plan to certain executive level employees. During 2015 and 2014, 120,000 and 160,000 stock options, respectively, and during 2015 50,000 RSUs were granted pursuant to such inducement plan. These stock option grants have a four year vesting period and the RSUs have a three year cliff vesting. The Company currently has approximately 0.3 million in stock options and RSUs outstanding under this inducement plan. As of December 31, 2015, approximately 6.2 million remained available for future grant awards under the 2011 Plan. Only share awards made under the 2011 Plan that are subsequently cancelled due to forfeiture or expiration are returned to the share pool available for future grants. The Company issues new shares upon the exercise of stock options, the issuance of stock bonus awards and vesting of RSUs and PRSUs, and has 12.8 million shares of common stock reserved for such issuance as of December 31, 2015. Vesting Provisions of Share-Based Compensation. Share-Based Compensation. Years Ended December 31, 2015 2014 2013 General and administrative expense $ 15,281 $ 5,167 $ 3,516 Research and development expense 13,111 5,215 3,303 Share-based compensation expense $ 28,392 $ 10,382 $ 6,819 Authoritative guidance requires that cash flows resulting from tax deductions in excess of the cumulative compensation cost recognized for options exercised be classified as cash inflows provided by financing activities and cash outflows used in operating activities. Due to the Company’s net tax loss position, no tax benefits have been recognized in the consolidated statements of cash flows. Stock Options. Years Ended December 31, 2015 2014 2013 Risk-free interest rate 1.7 % 2.2 % 1.4 % Expected volatility of common stock 66 % 71 % 76 % Dividend yield 0.0 % 0.0 % 0.0 % Expected option term 6.6 years 7.2 years 7.3 years The Company estimates the fair value of stock options using a Black-Scholes option-pricing model on the date of grant. The fair value of equity instruments that are ultimately expected to vest, net of estimated forfeitures, are recognized and amortized on a straight-line basis over the requisite service period. The Black-Scholes option-pricing model incorporates various and highly sensitive assumptions including expected volatility, expected term and interest rates. The expected volatility is based on the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected term of the Company’s stock options. The expected option term is estimated based on historical experience as well as the status of the employee. For example, directors and officers have a longer expected option term than all other employees. The risk-free rate for periods within the contractual life of the option is based upon observed interest rates appropriate for the expected term of the Company’s employee stock options. The Company has never declared or paid dividends and has no plans to do so in the foreseeable future. Authoritative guidance requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Pre-vesting forfeitures for awards with monthly vesting terms were estimated to be 0% in 2015 based on historical experience. Pre-vesting forfeitures for awards with annual vesting terms were also estimated at 0% in 2015 based on historical employee turnover experience. The effect of past restructurings has been excluded from the historical review of employee turnover. The effect of pre-vesting forfeitures for awards has historically been negligible on the Company’s recorded expense. The Company’s determination of fair value is affected by the Company’s stock price as well as a number of assumptions that require judgment. The weighted-average fair values of options granted during the years ended December 31, 2015, 2014 and 2013, estimated as of the grant date using the Black-Scholes option valuation model, were $23.24, $12.57 and $6.55, respectively. A summary of the status of the Company’s stock options as of December 31, 2015, 2014 and 2013 and of changes in options outstanding under the plans during the three years ended December 31, 2015 is as follows (in thousands, except for weighted average exercise price data): 2015 2014 2013 Options Weighted Options Weighted Options Weighted Outstanding at January 1 5,750 $ 9.31 5,853 $ 7.54 6,166 $ 7.62 Granted 1,159 37.21 1,089 18.41 771 9.24 Exercised (1,315 ) 5.01 (1,135 ) 6.50 (904 ) 5.96 Canceled (87 ) 46.08 (57 ) 56.83 (180 ) 25.68 Outstanding at December 31 5,507 $ 15.63 5,750 $ 9.31 5,853 $ 7.54 Options outstanding at December 31, 2015 have a weighted average remaining contractual term of 6.8 years. For the year ended December 31, 2015, share-based compensation expense related to stock options was $13.6 million. As of December 31, 2015, there was approximately $28.0 million of unamortized compensation cost related to stock options, which is expected to be recognized over a weighted average remaining vesting period of approximately 2.6 years. As of December 31, 2015, there were approximately 3.8 million options exercisable with a weighted average exercise price of $10.44 and a weighted-average remaining contractual term of 6.1 years. The total intrinsic value, which is the amount by which the exercise price was exceeded by the sale price of the Company’s common stock on the date of sale, of stock option exercises during the years ended December 31, 2015, 2014, and 2013 was $43.6 million, $14.3 million and $6.0 million, respectively. As of December 31, 2015, the total intrinsic value of options outstanding and exercisable was $225.4 million and $177.0 million, respectively. Cash received from stock option exercises for the years ended December 31, 2015, 2014 and 2013 was $6.3 million, $5.6 million and $5.3 million, respectively. Restricted Stock Units. The total intrinsic value of RSUs converted into common shares during the years ended December 31, 2015, 2014 and 2013 was $5.7 million, $1.7 million, and $0, respectively. The RSUs, at the election of eligible employees, may be subject to deferred delivery arrangement. The total intrinsic value of RSUs outstanding at December 31, 2015 was $51.5 million based on the Company’s closing stock price on that date. A summary of the status of the Company’s RSUs as of December 31, 2015, 2014 and 2013 and of changes in RSUs outstanding under the plans for the three years ended December 31, 2015 is as follows (in thousands, except for weighted average grant date fair value per unit): 2015 2014 2013 Number of Weighted Average Number of Weighted Average Number of Weighted Average Outstanding at January 1 669 $ 15.01 373 $ 8.65 — $ — Granted 448 33.62 389 19.59 379 8.65 Cancelled (16 ) 20.83 — — (6 ) 8.65 Converted into common shares (191 ) 14.24 (93 ) 8.65 — — Outstanding at December 31 910 $ 24.23 669 $ 15.01 373 $ 8.65 Performance-Based Restricted Stock Units. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 9. STOCKHOLDERS’ EQUITY Equity Financing In February 2015, the Company completed a public offering of common stock in which the Company sold approximately 8.0 million shares of its common stock at an offering price of $36.00 per share. The shares were sold pursuant to an automatic shelf registration statement filed with the Securities and Exchange Commission (SEC). The net proceeds generated from this transaction, after underwriting discounts and commissions and offering costs, were approximately $270.7 million. In February 2014, the Company completed a public offering of common stock in which the Company sold 8.0 million shares of its common stock at an offering price of $17.75 per share. The shares were sold pursuant to a shelf registration statement previously filed with the SEC. The net proceeds generated from this transaction, after underwriting discounts and commissions and offering costs, were approximately $133.2 million. Shelf Registration Statement In February 2014, the Company filed an automatic shelf registration statement which immediately became effective by rule of the SEC. For so long as the Company continues to satisfy the requirements to be deemed a well-known seasoned issuer, this shelf registration statement allows the Company to issue an unlimited number of shares of its common stock from time to time. As of December 31, 2015, the Company had sold approximately 16.0 million shares of its common stock under this shelf registration statement . |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10. INCOME TAXES Under the FASB’s accounting guidance related to uncertain tax positions, among other things, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. Additionally, the guidance provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrual for interest or penalties on the Company’s consolidated balance sheets at December 31, 2015 or December 31, 2014, and has not recognized interest and/or penalties in the statement of comprehensive loss for the year ended December 31, 2015. The Company is subject to taxation in the United States and various state jurisdictions. The Company’s tax years for 1998 (federal)/2002 (California) and forward are subject to examination by the United States and California tax authorities due to the carry forward of unutilized net operating losses and R&D credits. At December 31, 2015, the Company had deferred tax assets of $382.4 million. Due to uncertainties surrounding the Company’s ability to generate future taxable income to realize these assets, a full valuation has been established to offset the net deferred tax asset. Additionally, the future utilization of the Company’s net operating loss and R&D credit carry forwards to offset future taxable income may be subject to an annual limitation, pursuant to Internal Revenue Code Sections 382 and 383, as a result of ownership changes that could occur in the future. The Company has determined that no ownership changes have occurred through December 31, 2015. At December 31, 2015, the Company had Federal and California income tax net operating loss carry forwards of approximately $736.0 million and $567.3 million, respectively. The Federal tax loss carry forwards will begin to expire in 2021, unless previously utilized. The California net operating loss carry forwards will expire as follows (in thousands): Year Amount 2016 116,600 2017 51,900 2018 140,600 2028 and beyond 258,100 In addition, the Company has Federal and California R&D tax credit carry forwards of $38.2 million and $27.2 million, respectively. The Federal R&D tax credit carry forwards begin expiring in 2018 and will continue to expire unless utilized. The California R&D tax credit carryforwards carry forward indefinitely. The Company also has Federal Alternative Minimum Tax credit carryforwards of approximately $213,000, which will carry forward indefinitely. At December 31, 2015, approximately $77.0 million of the net operating loss carry forwards relate to stock option exercises, which will result in an increase to additional paid-in capital and a decrease in income taxes payable at the time when the tax loss carryforwards are utilized. Significant components of the Company’s deferred tax assets as of December 31, 2015 and 2014 are listed below. A valuation allowance of $382.4 million and $367.1 million at December 31, 2015 and 2014, respectively, has been recognized to offset the deferred tax assets as realization of such assets is uncertain. Amounts are shown as of December 31 as of each respective year (in thousands): 2015 2014 Deferred tax assets: Net operating losses $ 257,900 $ 260,600 Research and development credits 33,500 29,000 Capitalized research and development 58,900 45,700 Share-based compensation expense 10,900 6,900 Deferred revenue 4,300 800 Deferred gain on sales leaseback 5,000 7,200 Intangibles 6,900 10,600 Cease-use expense 700 1,100 Fixed assets 400 500 Other 3,900 4,700 Total deferred tax assets 382,400 367,100 Valuation allowance (382,400 ) (367,100 ) Net deferred tax assets $ — $ — The provision for income taxes on earnings subject to income taxes differs from the statutory Federal rate at December 31, 2015, 2014 and 2013, due to the following (in thousands): 2015 2014 2013 Federal income taxes at 35% $ (31,126 ) $ (21,190 ) $ (16,131 ) State income tax, net of Federal benefit 2 (3,410 ) (2,611 ) Tax effect on non-deductible expenses 172 10 7 Share-based compensation expense 201 91 215 Change in tax rate 10,773 — — Expired tax attributes 5,594 315 151 Research credits (6,638 ) (1,882 ) (3,458 ) Change in valuation allowance 15,029 25,366 20,504 Uncertain tax positions 5,940 621 1,283 Other 53 79 40 $ — $ — $ — The following table summarizes the activity related to our unrecognized tax benefits (in thousands): 2015 2014 2013 Balance as of the beginning of the year $ 23,854 $ 23,131 $ 21,672 Increases related to prior year tax positions 6,636 47 543 Increases related to current year tax positions 2,584 676 916 Expiration of the statute of limitations for the assessment of taxes — — — Balance as of the end of the year $ 33,074 $ 23,854 $ 23,131 The Company, under authoritative guidance, excluded those deferred tax assets that are not more likely than not to be sustained under the technical merits of the tax position. These unrecognized tax benefits totaled $6.6 and $2.6 million for prior year tax positions and current year tax positions, respectively, as reflected in the tabular rollforward above. As of December 31, 2015, the Company had $26.2 million of unrecognized tax benefits that, if recognized and realized, would effect the effective tax rate. In the next twelve months, the Company does not expect a significant change in their unrecognized tax benefits. |
RETIREMENT PLAN
RETIREMENT PLAN | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
RETIREMENT PLAN | NOTE 11. RETIREMENT PLAN The Company has a 401(k) defined contribution savings plan (401(k) Plan). The 401(k) Plan is for the benefit of all qualifying employees and permits voluntary contributions by employees up to 60% of base salary limited by the IRS-imposed maximum. Employer contributions were $0.4 million, $0.3 million and $0.3 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 12. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) The following is a summary of the quarterly results of the Company for the years ended December 31, 2015 and 2014 (unaudited, in thousands, except for per share data) Year Ended December 31, Year Ended First Second Third Fourth 2015: Revenues $ 19,769 $ — $ — $ — $ 19,769 Operating expenses 22,057 25,322 35,844 30,748 113,971 Net loss (1,192 ) (23,987 ) (34,435 ) (29,315 ) (88,929 ) Net loss per share: Basic and Diluted $ (0.01 ) $ (0.28 ) $ (0.40 ) $ (0.34 ) $ (1.05 ) Shares used in the calculation of net loss per share: Basic and Diluted 80,349 85,518 85,856 86,184 84,496 2014: Revenues $ — $ — $ — $ — $ — Operating expenses 12,725 14,361 16,857 20,468 64,411 Net loss (11,842 ) (13,381 ) (15,875 ) (19,444 ) (60,542 ) Net loss per share: Basic and Diluted $ (0.17 ) $ (0.18 ) $ (0.21 ) $ (0.26 ) $ (0.81 ) Shares used in the calculation of net loss per share: Basic and Diluted 70,260 75,879 75,948 76,139 74,577 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable. ITEM 9A. CONTROLS AND PROCEDURES We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the timelines specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can only provide reasonable assurance of achieving the desired control objectives, and in reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. As required by SEC Rule 13a-15(b), we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the year covered by this report. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level. Management’s Report on Internal Control Over Financial Reporting Internal control over financial reporting refers to the process designed by, or under the supervision of, our Chief Executive Officer and Chief Financial Officer, and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, and includes those policies and procedures that: (1) Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; (2) Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorization of our management and directors; and (3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. Internal control over financial reporting cannot provide absolute assurance of achieving financial reporting objectives because of its inherent limitations. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper management override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk. Management is responsible for establishing and maintaining adequate internal control over financial reporting for the company. Management has used the framework set forth in the report entitled Internal Control-Integrated Framework (2013 framework) published by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), known as COSO, to evaluate the effectiveness of our internal control over financial reporting. Based on this assessment, management has concluded that our internal control over financial reporting was effective as of December 31, 2015. Ernst & Young, LLP, our independent registered public accounting firm, has issued an attestation report on our internal control over financial reporting as of December 31, 2015, which is included herein. There has been no change in our internal control over financial reporting during our most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Report of Independent Registered Public Accounting Firm The Board of Directors and Stockholders of Neurocrine Biosciences, Inc. We have audited Neurocrine Biosciences, Inc.’s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). Neurocrine Biosciences, Inc.’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the company’s internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, Neurocrine Biosciences, Inc. maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Neurocrine Biosciences, Inc. as of December 31, 2015 and 2014, and the related consolidated statements of comprehensive loss, stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2015 of Neurocrine Biosciences, Inc. and our report dated February 11, 2016 expressed an unqualified opinion thereon. /s/ Ernst & Young LLP San Diego, California February 11, 2016 ITEM 9B. OTHER INFORMATION None. PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE Information required by this item will be contained in our Definitive Proxy Statement for our 2016 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A with the Securities and Exchange Commission within 120 days of December 31, 2015. Such information is incorporated herein by reference. We have adopted a code of ethics that applies to our Chief Executive Officer, Chief Financial Officer, and to all of our other officers, directors, employees and agents. The code of ethics is available at the Corporate Governance section of the Investors page on our website at www.neurocrine.com. We intend to disclose future amendments to, or waivers from, certain provisions of our code of ethics on the above website within four business days following the date of such amendment or waiver. ITEM 11. EXECUTIVE COMPENSATION Information required by this item will be contained in our Definitive Proxy Statement for our 2016 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A with the Securities and Exchange Commission within 120 days of December 31, 2015. Such information is incorporated herein by reference. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Information required by this item will be contained in our Definitive Proxy Statement for our 2016 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A with the Securities and Exchange Commission within 120 days of December 31, 2015. Such information is incorporated herein by reference. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE Information required by this item will be contained in our Definitive Proxy Statement for our 2016 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A with the Securities and Exchange Commission within 120 days of December 31, 2015. Such information is incorporated herein by reference. ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES Information required by this item will be contained in our Definitive Proxy Statement for our 2016 Annual Meeting of Stockholders, to be filed pursuant to Regulation 14A with the Securities and Exchange Commission within 120 days of December 31, 2015. Such information is incorporated herein by reference. PART IV ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES (a) Documents filed as part of this report. 1. List of Financial Statements. The following are included in Item 8 of this report: Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets as of December 31, 2015 and 2014 Consolidated Statements of Comprehensive Loss for the years ended December 31, 2015, 2014 and 2013 Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2015, 2014 and 2013 Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013 Notes to the Consolidated Financial Statements (includes unaudited Selected Quarterly Financial Data) 2. List of all Financial Statement schedules. All schedules are omitted because they are not applicable or the required information is shown in the Financial Statements or notes thereto. 3. List of Exhibits required by Item 601 of Regulation S-K. See part (b) below. (b) Exhibits. Exhibit Number Description 3.1 Certificate of Incorporation(11) 3.2 Certificate of Amendment to Certificate of Incorporation(11) 3.3 Bylaws, as amended(11) 4.1 Form of Common Stock Certificate(1) 10.1** Neurocrine Biosciences, Inc. 2003 Incentive Stock Plan, as amended and form of stock option agreement and restricted stock unit agreement.(7) 10.2** Form of Indemnity Agreement entered into between the Company and its officers and directors.(5) 10.3** Employment Commencement Nonstatutory Stock Option Agreement dated October 31, 2005 between the Company and Christopher O’Brien.(4) 10.4 Amended and Restated Lease dated November 1, 2011 between the Company and Kilroy Realty, L.P.(8) 10.5 Letter of Credit dated December 3, 2007, issued by Wells Fargo Bank, N.A. for the benefit of Kilroy Realty, L.P., as amended on November 20, 2014.(13) 10.6** Amended and Restated Employment Agreement effective August 1, 2007 between the Company and Kevin C. Gorman, Ph.D.(3) 10.7 License agreement dated August 27, 1999 between the Company and the Mount Sinai School of Medicine of the City University of New York.(9) 10.8** Amended and Restated Employment Agreement effective August 1, 2007 between the Company and Timothy P. Coughlin.(3) 10.9** Amended and Restated Employment Agreement effective August 6, 2007 between the Company and Christopher F. O’Brien M.D.(6) 10.10** Amended and Restated Employment Agreement effective August 23, 2007 between the Company and Dimitri E. Grigoriadis, Ph.D.(6) 10.11** Amended and Restated Employment Agreement effective August 14, 2007 between the Company and Haig Bozigian, Ph.D.(6) 10.12** 2011 Equity Incentive Plan, as amended, Form of Stock Option Grant Notice and Option Agreement for use thereunder, and Form of Restricted Stock Unit Grant Notice and Restricted Stock Unit Agreement for use thereunder.(12) 10.13* Collaboration Agreement dated June 15, 2010, by and between Abbott International Luxembourg S.a.r.l. and the Company as amended on August 31, 2011. 10.14** Form of Amendment to Employment Agreement for executive officers.(10) 10.15** Neurocrine Biosciences, Inc. Inducement Plan, as amended, Form of Stock Option Grant Notice and Option Agreement for use thereunder.(2) 10.16 Collaboration and License Agreement dated March 31, 2015 between Mitsubishi Tanabe Pharma Corporation and the Company.(14) 10.17 First Amendment to Collaboration and License Agreement Dated August 31, 2011 between the Company and Abbott International Luxemburg S.a.r.l.(15) 21.1 Subsidiaries of the Company 23.1 Consent of Independent Registered Public Accounting Firm 31.1 Certification of Chief Executive Officer pursuant to Rules 13a-14 and 15d-14 promulgated under the Securities Exchange Act of 1934 31.2 Certification of Chief Financial Officer pursuant to Rules 13a-14 and 15d-14 promulgated under the Securities Exchange Act of 1934 32*** Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INS XBRL Instance Document. 101.SCH XBRL Taxonomy Extension Schema Document. 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document. 101.DEF XBRL Taxonomy Extension Definition Linkbase Document. 101.LAB XBRL Taxonomy Extension Label Linkbase Document. 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document. (1) Incorporated by reference to the Company’s Registration Statement on Form S-1 (Registration No. 333-03172) (2) Incorporated by reference to the Company’s Quarterly Report on Form 10-Q filed on July 29, 2015 (3) Incorporated by reference to the Company’s Quarterly Report on Form 10-Q filed on August 3, 2007 (4) Incorporated by reference to the Company’s Current Report on Form 8-K filed on November 1, 2005 (5) Incorporated by reference to the Company’s Current Report on Form 8-K filed on September 1, 2009 (6) Incorporated by reference to the Company’s Annual Report on Form 10-K filed on February 11, 2008 (7) Incorporated by reference to the Company’s Quarterly Report on Form 10-Q filed on July 30, 2009 (8) Incorporated by reference to the Company’s Current Report on Form 8-K filed on January 18, 2012 (9) Incorporated by reference to the Company’s Quarterly Report on Form 10-Q filed on July 26, 2013 (10) Incorporated by reference to the Company’s Annual Report on Form 10-K filed on February 10, 2011 (11) Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated October 2, 2015, and Exhibits 3.1, 3.2 and 3.3 to the Company’s Annual Report on From 10-K filed on February 8, 2013 (12) Incorporated by reference to the Company’s Current Report on Form 8-K filed on June 1, 2015 (13) Incorporated by reference to the Company’s Annual Report on Form 10-K filed on February 9, 2015 (14) Incorporated by reference to the Company’s Quarterly Report on Form 10-Q filed on April 30, 2015 (15) Incorporated by reference to the Company’s Quarterly Report on Form 10-Q filed on October 31, 2011. * Confidential treatment has been granted with respect to certain portions of the exhibit. ** Management contract or compensatory plan or arrangement. *** These certifications are being furnished solely to accompany this annual report pursuant to 18 U.S.C. Section 1350, and are not being filed for purposes of Section 18 of the Securities Exchange Act of 1934 and are not to be incorporated by reference into any filing of Neurocrine Biosciences, Inc., whether made before or after the date hereof, regardless of any general incorporation language in such filing. Except as specifically noted above, the Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K have a Commission File Number of 000-22705. (c) Financial Statement Schedules. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. NEUROCRINE BIOSCIENCES, INC. A Delaware Corporation By: /s/ Kevin C. Gorman Kevin C. Gorman President and Chief Executive Officer Date: February 11, 2016 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities and on the dates indicated: Signature Title Date /s/ Kevin C. Gorman Kevin C. Gorman President, Chief Executive Officer and Director (Principal Executive Officer) February 11, 2016 /s/ Timothy P. Coughlin Timothy P. Coughlin Chief Financial Officer (Principal Financial and Accounting Officer) February 11, 2016 /s/ William H. Rastetter William H. Rastetter Chairman of the Board of Directors February 11, 2016 /s/ Gary A. Lyons Gary A. Lyons Director February 11, 2016 /s/ W. Thomas Mitchell W. Thomas Mitchell Director February 11, 2016 /s/ Joseph A. Mollica Joseph A. Mollica Director February 11, 2016 /s/ George J. Morrow George J. Morrow Director February 11, 2016 /s/ Corinne H. Nevinny Corinne H. Nevinny Director February 11, 2016 /s/ Richard F. Pops Richard F. Pops Director February 11, 2016 /s/ Alfred W. Sandrock, Jr. Alfred W. Sandrock, Jr. Director February 11, 2016 /s/ Stephen A. Sherwin Stephen A. Sherwin Director February 11, 2016 |
ORGANIZATION AND SUMMARY OF S19
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation. |
Use of Estimates | Use of Estimates. |
Cash Equivalents | Cash Equivalents. . |
Short-Term and Long-Term Investments Available-for-Sale | Short-Term and Long-Term Investments Available-for-Sale. |
Concentration of Credit Risk | Concentration of Credit Risk. |
Collaboration Agreements | Collaboration Agreements. |
Property and Equipment | Property and Equipment. |
Industry Segment and Geographic Information | Industry Segment and Geographic Information. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. |
Research and Development Expenses | Research and Development Expenses. |
Share-Based Compensation | Share-Based Compensation. |
Investment Income, net | Investment Income, net. Years Ended December 31, 2015 2014 2013 Interest income $ 1,928 $ 629 $ 400 Realized gains, net — — 2 Total $ 1,928 $ 629 $ 402 |
Net Loss Per Share | Net Loss Per Share. Due to the Company’s net loss position in 2015, 2014 and 2013, approximately 4.1 million, 2.9 million and 2.1 million, respectively, of common share equivalents were excluded from the diluted common shares outstanding. For the years ended December 31, 2015, 2014 and 2013, there were employee stock options, calculated on a weighted average basis, to purchase 0.1 million, 1.0 million, and 0.3 million shares of our common stock with an exercise price greater than the average market price of the underlying common shares. |
Impact of Recently Issued Accounting Standards | Impact of Recently Issued Accounting Standards. In November 2015, the FASB issued an ASU, “Income Taxes: Balance Sheet Classification of Deferred Taxes,” which ASU eliminates the current requirement for organizations to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. This ASU applies to all organizations that present a classified balance sheet. The ASU is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. The Company has adopted this standard as of December 31, 2015 with retroactive application. |
Revenue Recognition Policy | Revenue Recognition Policy. Since 2011, the Company has followed the Accounting Standards Codification (ASC) for Revenue Recognition - Multiple-Element Arrangements, if applicable, to determine the recognition of revenue under license and collaboration agreements. The terms of these agreements generally contain multiple elements, or deliverables, which may include (i) licenses to the Company’s intellectual property, (ii) materials and technology, (iii) pharmaceutical supply, (iv) participation on joint development or joint steering committees, and (v) development services. The payments the Company receives under these arrangements typically include one or more of the following: up-front license fees; funding of research and/or development efforts; amounts due upon the achievement of specified milestones; manufacturing and royalties on future product sales. The ASC provides guidance relating to the separation of deliverables included in an arrangement into different units of accounting and the allocation of consideration to the units of accounting. The evaluation of multiple-element arrangements requires management to make judgments about (i) the identification of deliverables, (ii) whether such deliverables are separable from the other aspects of the contractual relationship, (iii) the estimated selling price of each deliverable, and (iv) the expected period of performance for each deliverable. To determine the units of accounting under a multiple-element arrangement, management evaluates certain separation criteria, including whether the deliverables have stand-alone value, based on the relevant facts and circumstances for each arrangement. The selling prices of deliverables under an arrangement may be derived using vendor specific objective evidence (VSOE), third-party evidence, or a best estimate of selling price (BESP), if VSOE or third-party evidence is not available. For most pharmaceutical licensing and collaboration agreements, BESP is utilized. The objective of BESP is to determine the price at which the Company would transact a sale if the element within the agreement was sold on a standalone basis. Establishing BESP involves management’s judgment and considers multiple factors, including market conditions and company-specific factors, including those factors contemplated in negotiating the agreements, as well as internally developed models that include assumptions related to market opportunity, discounted cash flows, estimated development costs, probability of success and the time needed to commercialize a product candidate pursuant to the agreement. In validating the BESP, management considers whether changes in key assumptions used to determine the BESP will have a significant effect on the allocation of the arrangement consideration between the multiple deliverables. The allocated consideration for each unit of accounting is recognized over the related obligation period in accordance with the applicable revenue recognition criteria. If there are deliverables in an arrangement that are not separable from other aspects of the contractual relationship, they are treated as a combined unit of accounting, with the allocated revenue for the combined unit recognized in a manner consistent with the revenue recognition applicable to the final deliverable in the combined unit. Payments received prior to satisfying the relevant revenue recognition criteria are recorded as unearned revenue in the accompanying balance sheets and recognized as revenue when the related revenue recognition criteria are met. The Company typically receives up-front payments when licensing its intellectual property, which often occurs in conjunction with a R&D agreement. The Company recognizes revenue attributed to the license upon delivery, provided that the license has stand-alone value. For payments payable on achievement of milestones that do not meet all of the conditions to be considered substantive, the Company recognizes the portion of the payment allocable to delivered items as revenue when the specific milestone is achieved, and the contingency is removed. Prior to the revised multiple element guidance described above, adopted by the Company on January 1, 2011, upfront, nonrefundable payments for license fees, grants, and advance payments for sponsored research revenues received in excess of amounts earned were classified as deferred revenue and recognized as income over the contract or development period. Revenues from development milestones are accounted for in accordance with the Revenue Recognition – Milestone Method Topic of the FASB ASC (Milestone Method). Milestones are recognized when earned, as evidenced by written acknowledgment from the collaborator or other persuasive evidence that the milestone has been achieved, provided that the milestone event is substantive. A milestone event is considered to be substantive if its achievability was not reasonably assured at the inception of the agreement and the Company’s efforts led to the achievement of the milestone or the milestone was due upon the occurrence of a specific outcome resulting from the Company’s performance. The Company assesses whether a milestone is substantive at the inception of each agreement. Mitsubishi Tanabe Pharma Corporation (Mitsubishi Tanabe). Under the terms of the Company’s agreement with Mitsubishi Tanabe, the collaboration effort between the parties to advance NBI-98854 towards commercialization in Japan and other select Asian markets is governed by a joint steering committee and joint development committee with representatives from both the Company and Mitsubishi Tanabe. There are no performance, cancellation, termination or refund provisions in the agreement that would have a material financial consequence to the Company. The Company does not directly control when event-based payments will be achieved or when royalty payments will begin. Mitsubishi Tanabe may terminate the agreement at its discretion upon 180 days’ written notice to the Company. In such event, all valbenazine product rights for Japan and other select Asian markets would revert to the Company. The Company has identified the following deliverables associated with the Mitsubishi Tanabe agreement: valbenazine technology license and existing know-how, development activities to be performed as part of the collaboration, and the manufacture of pharmaceutical products. The respective standalone value from each of these deliverables has been determined by applying the BESP method and the revenue was allocated based on the relative selling price method with revenue recognition timing to be determined either by delivery or the provision of services. As discussed above, the BESP method required the use of significant estimates. The Company used an income approach to estimate the selling price for the technology license and an expense approach for estimating development activities and the manufacture of pharmaceutical products. The development activities and the manufacture of pharmaceutical products are expected to be delivered throughout the duration of the agreement. The technology license and existing know-how was delivered on the effective date of the agreement. For the year ended December 31, 2015, the Company recognized revenue under this agreement of $19.8 million associated with the delivery of a technology license and existing know-how. In accordance with the Company’s continuing performance obligations, $10.2 million of the $30 million up-front payment is being deferred and recognized in future periods. Under the terms of the agreement, there is no general obligation to return the up-front payment for any non-contingent deliverable. The Company evaluated the event-based payments under the Milestone Method and concluded only one immaterial event-based payment represents a substantive milestone. Event-based payments will be recognized when earned. The Company is eligible to receive from Mitsubishi Tanabe tiered royalty payments based on product sales in Japan and other select Asian markets. Royalties will be recognized as earned in accordance with the terms of the agreement, when product sales are reported by Mitsubishi Tanabe, the amount can be reasonably estimated, and collectability is reasonably assured. AbbVie Inc. ( AbbVie ) Under the terms of the agreement, AbbVie is responsible for all third-party development, marketing and commercialization costs. The Company will be entitled to a percentage of worldwide sales of GnRH Compounds for the longer of ten years or the life of the related patent rights. AbbVie may terminate the collaboration at its discretion upon 180 days’ written notice to the Company. In such event, the Company would be entitled to specified payments for ongoing clinical development and related activities and all GnRH Compound product rights would revert to the Company. There was no revenue recognized in 2015, 2014 or 2013 related to this collaboration. |
ORGANIZATION AND SUMMARY OF S20
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Components of Investment Income | The following table presents certain information related to the components of investment income (in thousands): Years Ended December 31, 2015 2014 2013 Interest income $ 1,928 $ 629 $ 400 Realized gains, net — — 2 Total $ 1,928 $ 629 $ 402 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments Schedule [Abstract] | |
Investments | Investments at December 31, 2015 and 2014 consisted of the following (in thousands): Years Ended 2015 2014 Certificates of deposit $ 10,078 $ 17,438 Commercial paper 23,955 7,498 Corporate debt securities 323,219 174,323 Securities of government-sponsored entities 30,232 1,028 Total investments $ 387,484 $ 200,287 |
Summary of Investments Classified as Available-For-Sale Securities | The following is a summary of investments classified as available-for-sale securities (in thousands): Contractual Amortized Gross Gross Aggregate December 31, 2015: Classified as current assets: Certificates of deposit Less than 1 $ 9,120 $ 1 $ (1 ) $ 9,120 Commercial paper Less than 1 23,965 1 (11 ) 23,955 Corporate debt securities Less than 1 254,592 1 (414 ) 254,179 Securities of government-sponsored entities Less than 1 17,762 1 (21 ) 17,742 Total short-term available-for-sale securities $ 305,439 $ 4 $ (447 ) $ 304,996 Classified as non-current assets: Certificates of deposit 1 to 2 $ 960 $ — $ (2 ) $ 958 Corporate debt securities 1 to 2 69,528 — (488 ) 69,040 Securities of government-sponsored entities 1 to 2 12,534 — (44 ) 12,490 Total long-term available-for-sale securities $ 83,022 $ — $ (534 ) $ 82,488 December 31, 2014: Classified as current assets: Certificates of deposit Less than 1 $ 9,072 $ — $ (6 ) $ 9,066 Commercial paper Less than 1 7,497 1 — 7,498 Corporate debt securities Less than 1 145,321 5 (123 ) 145,203 Securities of government-sponsored entities Less than 1 1,029 — (1 ) 1,028 Total short-term available-for-sale securities $ 162,919 $ 6 $ (130 ) $ 162,795 Classified as non-current assets: Certificates of deposit 1 to 2 $ 8,400 $ — $ (28 ) $ 8,372 Corporate debt securities 1 to 2 29,245 — (125 ) 29,120 Total long-term available-for-sale securities $ 37,645 $ — $ (153 ) $ 37,492 (1) Unrealized gains and losses are included in other comprehensive loss. |
Gross Unrealized Losses and Fair Value Available-For-Sale Investments in Unrealized Loss Position | The following table presents gross unrealized losses and fair value for those available-for-sale investments that were in an unrealized loss position as of December 31, 2015 and 2014, aggregated by investment category and length of time that individual securities have been in a continuous loss position (in thousands): Less Than 12 Months 12 Months or Greater Total Estimated Unrealized Estimated Unrealized Estimated Unrealized December 31, 2015: Certificates of deposit $ 5,517 $ (3 ) $ — $ — $ 5,517 $ (3 ) Commercial paper 16,959 (11 ) — — 16,959 (11 ) Corporate debt securities 310,160 (880 ) 5,521 (22 ) 315,681 (902 ) Securities of government-sponsored entities 25,913 (65 ) — — 25,913 (65 ) Total $ 358,549 $ (959 ) $ 5,521 $ (22 ) $ 364,070 $ (981 ) December 31, 2014: Certificates of deposit $ 16,957 $ (34 ) $ — $ — $ 16,957 $ (34 ) Corporate debt securities 149,477 (248 ) — — 149,477 (248 ) Securities of government-sponsored entities 1,028 (1 ) — — 1,028 (1 ) Total $ 167,462 $ (283 ) $ — $ — $ 167,462 $ (283 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | The Company’s assets which are measured at fair value on a recurring basis as of December 31, 2015 and 2014 were determined using the inputs described above (in millions): Fair Value Measurements Using Carrying Quoted Prices in Significant Other Significant December 31, 2015: Classified as current assets: Cash and money market funds $ 69.5 $ 69.5 $ — $ — Certificates of deposit 9.1 9.1 — — Commercial paper 24.0 — 24.0 — Securities of government-sponsored entities 17.7 — 17.7 — Corporate debt securities 259.0 — 259.0 — Subtotal 379.3 78.6 300.7 — Classified as long-term assets: Certificates of deposit 5.7 5.7 — — Securities of government-sponsored entities 12.5 — 12.5 — Corporate debt securities 69.0 — 69.0 — Total 466.5 84.3 382.2 — Less cash, cash equivalents and restricted cash (79.0 ) (74.2 ) (4.8 ) — Total investments $ 387.5 $ 10.1 $ 377.4 $ — December 31, 2014: Classified as current assets: Cash and money market funds $ 28.7 $ 28.7 $ — $ — Certificates of deposit 9.1 9.1 — — Commercial paper 7.5 — 7.5 — Securities of government-sponsored entities 1.5 — 1.5 — Corporate debt securities 147.0 — 147.0 — Subtotal 193.8 37.8 156.0 — Classified as long-term assets: Certificates of deposit 13.2 13.2 — — Corporate debt securities 29.1 — 29.1 — Total 236.1 51.0 185.1 — Less cash, cash equivalents and restricted cash (35.8 ) (33.5 ) (2.3 ) — Total investments $ 200.3 $ 17.5 $ 182.8 $ — |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net, at December 31, 2015 and 2014 consisted of the following (in thousands): 2015 2014 Tenant improvements 1,335 1,226 Furniture and fixtures 837 819 Equipment 28,121 29,208 30,293 31,253 Less accumulated depreciation (26,861 ) (28,746 ) Property and equipment, net $ 3,432 $ 2,507 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities at December 31, 2015 and 2014 consisted of the following (in thousands): 2015 2014 Accrued employee related costs $ 7,358 $ 6,520 Accrued development costs 7,359 1,706 Other accrued liabilities 4,317 3,282 $ 19,034 $ 11,508 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes to Accrued Cease-Use Liability | The following table sets forth changes to the accrued cease-use liability during 2015 and 2014 (in thousands): Years Ended 2015 2014 Beginning balance $ 2,678 $ 3,096 Change in estimate (85 ) — Payments (610 ) (418 ) Ending balance $ 1,983 $ 2,678 |
Estimated Future Annual Minimum Lease Payments | As of December 31, 2015, the total estimated future annual minimum lease payments under the Company’s non-cancelable building lease for the years ending after December 31, 2015 were as follows (in thousands): Payment Amount 2016 $ 7,606 2017 7,834 2018 8,070 2019 8,311 2020 and thereafter — Total future minimum lease payments $ 31,821 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation Cost Related to Share Based Compensation | Share-Based Compensation. Years Ended December 31, 2015 2014 2013 General and administrative expense $ 15,281 $ 5,167 $ 3,516 Research and development expense 13,111 5,215 3,303 Share-based compensation expense $ 28,392 $ 10,382 $ 6,819 |
Weighted-Average Assumptions for Stock Option Grants using Black-Scholes Option-Pricing Model | common stock on the date of grant. The estimated fair value of each option award granted was determined on the date of grant using the Black-Scholes option-pricing valuation model with the following weighted-average assumptions for option grants during the three years ended December 31, 2015: Years Ended December 31, 2015 2014 2013 Risk-free interest rate 1.7 % 2.2 % 1.4 % Expected volatility of common stock 66 % 71 % 76 % Dividend yield 0.0 % 0.0 % 0.0 % Expected option term 6.6 years 7.2 years 7.3 years |
Summary and Changes in Stock Options Outstanding | A summary of the status of the Company’s stock options as of December 31, 2015, 2014 and 2013 and of changes in options outstanding under the plans during the three years ended December 31, 2015 is as follows (in thousands, except for weighted average exercise price data): 2015 2014 2013 Options Weighted Options Weighted Options Weighted Outstanding at January 1 5,750 $ 9.31 5,853 $ 7.54 6,166 $ 7.62 Granted 1,159 37.21 1,089 18.41 771 9.24 Exercised (1,315 ) 5.01 (1,135 ) 6.50 (904 ) 5.96 Canceled (87 ) 46.08 (57 ) 56.83 (180 ) 25.68 Outstanding at December 31 5,507 $ 15.63 5,750 $ 9.31 5,853 $ 7.54 |
Summary and Changes in Restricted Stock Units Outstanding | A summary of the status of the Company’s RSUs as of December 31, 2015, 2014 and 2013 and of changes in RSUs outstanding under the plans for the three years ended December 31, 2015 is as follows (in thousands, except for weighted average grant date fair value per unit): 2015 2014 2013 Number of Weighted Average Number of Weighted Average Number of Weighted Average Outstanding at January 1 669 $ 15.01 373 $ 8.65 — $ — Granted 448 33.62 389 19.59 379 8.65 Cancelled (16 ) 20.83 — — (6 ) 8.65 Converted into common shares (191 ) 14.24 (93 ) 8.65 — — Outstanding at December 31 910 $ 24.23 669 $ 15.01 373 $ 8.65 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Expiration of Net Operating Loss Carry Forwards | The California net operating loss carry forwards will expire as follows (in thousands): Year Amount 2016 116,600 2017 51,900 2018 140,600 2028 and beyond 258,100 |
Components of Deferred Tax Assets | Amounts are shown as of December 31 as of each respective year (in thousands): 2015 2014 Deferred tax assets: Net operating losses $ 257,900 $ 260,600 Research and development credits 33,500 29,000 Capitalized research and development 58,900 45,700 Share-based compensation expense 10,900 6,900 Deferred revenue 4,300 800 Deferred gain on sales leaseback 5,000 7,200 Intangibles 6,900 10,600 Cease-use expense 700 1,100 Fixed assets 400 500 Other 3,900 4,700 Total deferred tax assets 382,400 367,100 Valuation allowance (382,400 ) (367,100 ) Net deferred tax assets $ — $ — |
Provision for Income Taxes on Earnings Subject to Income Taxes Differs from Statutory Federal Rate | The provision for income taxes on earnings subject to income taxes differs from the statutory Federal rate at December 31, 2015, 2014 and 2013, due to the following (in thousands): 2015 2014 2013 Federal income taxes at 35% $ (31,126 ) $ (21,190 ) $ (16,131 ) State income tax, net of Federal benefit 2 (3,410 ) (2,611 ) Tax effect on non-deductible expenses 172 10 7 Share-based compensation expense 201 91 215 Change in tax rate 10,773 — — Expired tax attributes 5,594 315 151 Research credits (6,638 ) (1,882 ) (3,458 ) Change in valuation allowance 15,029 25,366 20,504 Uncertain tax positions 5,940 621 1,283 Other 53 79 40 $ — $ — $ — |
Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to our unrecognized tax benefits (in thousands): 2015 2014 2013 Balance as of the beginning of the year $ 23,854 $ 23,131 $ 21,672 Increases related to prior year tax positions 6,636 47 543 Increases related to current year tax positions 2,584 676 916 Expiration of the statute of limitations for the assessment of taxes — — — Balance as of the end of the year $ 33,074 $ 23,854 $ 23,131 |
SELECTED QUARTERLY FINANCIAL 28
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Results of Operations | The following is a summary of the quarterly results of the Company for the years ended December 31, 2015 and 2014 (unaudited, in thousands, except for per share data) Year Ended December 31, Year Ended First Second Third Fourth 2015: Revenues $ 19,769 $ — $ — $ — $ 19,769 Operating expenses 22,057 25,322 35,844 30,748 113,971 Net loss (1,192 ) (23,987 ) (34,435 ) (29,315 ) (88,929 ) Net loss per share: Basic and Diluted $ (0.01 ) $ (0.28 ) $ (0.40 ) $ (0.34 ) $ (1.05 ) Shares used in the calculation of net loss per share: Basic and Diluted 80,349 85,518 85,856 86,184 84,496 2014: Revenues $ — $ — $ — $ — $ — Operating expenses 12,725 14,361 16,857 20,468 64,411 Net loss (11,842 ) (13,381 ) (15,875 ) (19,444 ) (60,542 ) Net loss per share: Basic and Diluted $ (0.17 ) $ (0.18 ) $ (0.21 ) $ (0.26 ) $ (0.81 ) Shares used in the calculation of net loss per share: Basic and Diluted 70,260 75,879 75,948 76,139 74,577 |
Organization and Summary of S29
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) shares in Millions | 12 Months Ended | ||
Dec. 31, 2015Subsidiaryshares | Dec. 31, 2014shares | Dec. 31, 2013shares | |
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Number of subsidiary wholly-owned by company | Subsidiary | 2 | ||
Common share equivalents excluded from computation of earnings per share | 4.1 | 2.9 | 2.1 |
Stock Options | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Common share equivalents excluded from computation of earnings per share | 0.1 | 1 | 0.3 |
Minimum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Average estimated useful life of equipment | 3 years | ||
Requisite service period of award | 3 years | ||
Maximum | |||
Organization And Summary Of Significant Accounting Policies [Line Items] | |||
Average estimated useful life of equipment | 7 years | ||
Requisite service period of award | 4 years |
Components of Investment Income
Components of Investment Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Interest income | $ 1,928 | $ 629 | $ 400 |
Realized gains, net | 0 | 0 | 2 |
Total | $ 1,928 | $ 629 | $ 402 |
Revenue Recognition and Signi31
Revenue Recognition and Significant Collaborative Research and Development Agreements - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2010 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Mitsubishi Tanabe | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaborative agreement upfront payment received | $ 30,000,000 | |||
Collaborative agreement maximum additional payment to receive | $ 85,000,000 | |||
Patent rights period | The longer of ten years or the life of the related patent rights. | |||
Clinical trial cost | $ 12,000,000 | |||
Collaborative arrangement right description | Under the terms of the Company’s agreement with Mitsubishi Tanabe, the collaboration effort between the parties to advance NBI-98854 towards commercialization is governed by a joint steering committee and joint development committee with representatives from both the Company and Mitsubishi Tanabe. There are no performance, cancellation, termination or refund provisions in the agreement that would have a material financial consequence to the Company. The Company does not directly control when milestones will be achieved or when royalty payments will begin. Mitsubishi Tanabe may terminate the collaboration at its discretion upon 180 days’ written notice to the Company. | |||
Collaboration termination notice period | 180 days | |||
Revenues recognized under collaboration agreement | $ 19,800,000 | |||
Deferred revenues under collaboration | $ 10,200,000 | |||
AbbVie | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaborative agreement upfront payment received | $ 75,000,000 | |||
Patent rights period | Ten years or the life of the related patent rights. | |||
Collaborative arrangement right description | The Company will be entitled to a percentage of worldwide sales of GnRH Compounds for the longer of ten years or the life of the related patent rights. | |||
Collaboration termination notice period | 180 days | |||
Revenues recognized under collaboration agreement | $ 0 | $ 0 | $ 0 | |
Amount remains outstanding under collaboration agreement | 500,000,000 | |||
AbbVie | Development and regulatory event based payments | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaborative agreement maximum additional payment to receive | 480,000,000 | |||
Collaborative agreement payment received | 30,000,000 | |||
AbbVie | Commercial event based payments | ||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||
Collaborative agreement maximum additional payment to receive | $ 50,000,000 |
Investments (Detail)
Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Investments [Line Items] | ||
Investments | $ 387,484 | $ 200,287 |
Certificates of deposit | ||
Schedule of Investments [Line Items] | ||
Investments | 10,078 | 17,438 |
Commercial paper | ||
Schedule of Investments [Line Items] | ||
Investments | 23,955 | 7,498 |
Corporate debt securities | ||
Schedule of Investments [Line Items] | ||
Investments | 323,219 | 174,323 |
Securities of government sponsored entities | ||
Schedule of Investments [Line Items] | ||
Investments | $ 30,232 | $ 1,028 |
Summary of Investments Classifi
Summary of Investments Classified as Available-For-Sale Securities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Available-for-sale Securities [Line Items] | |||
Aggregate Estimated Fair Value | $ 387,484 | $ 200,287 | |
Certificates of deposit | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Aggregate Estimated Fair Value | 10,078 | 17,438 | |
Commercial paper | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Aggregate Estimated Fair Value | 23,955 | 7,498 | |
Corporate debt securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Aggregate Estimated Fair Value | 323,219 | 174,323 | |
Securities of government sponsored entities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Aggregate Estimated Fair Value | 30,232 | 1,028 | |
Short-term investments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 305,439 | 162,919 | |
Gross Unrealized Gains | [1] | 4 | 6 |
Gross Unrealized Losses | [1] | (447) | (130) |
Aggregate Estimated Fair Value | 304,996 | 162,795 | |
Short-term investments | Certificates of deposit | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 9,120 | 9,072 | |
Gross Unrealized Gains | [1] | 1 | 0 |
Gross Unrealized Losses | [1] | (1) | (6) |
Aggregate Estimated Fair Value | $ 9,120 | $ 9,066 | |
Short-term investments | Certificates of deposit | Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities contractual maturity | 1 year | 1 year | |
Short-term investments | Commercial paper | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 23,965 | $ 7,497 | |
Gross Unrealized Gains | [1] | 1 | 1 |
Gross Unrealized Losses | [1] | (11) | 0 |
Aggregate Estimated Fair Value | $ 23,955 | $ 7,498 | |
Short-term investments | Commercial paper | Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities contractual maturity | 1 year | 1 year | |
Short-term investments | Corporate debt securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 254,592 | $ 145,321 | |
Gross Unrealized Gains | [1] | 1 | 5 |
Gross Unrealized Losses | [1] | (414) | (123) |
Aggregate Estimated Fair Value | $ 254,179 | $ 145,203 | |
Short-term investments | Corporate debt securities | Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities contractual maturity | 1 year | 1 year | |
Short-term investments | Securities of government sponsored entities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 17,762 | $ 1,029 | |
Gross Unrealized Gains | [1] | 1 | 0 |
Gross Unrealized Losses | [1] | (21) | (1) |
Aggregate Estimated Fair Value | $ 17,742 | $ 1,028 | |
Short-term investments | Securities of government sponsored entities | Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities contractual maturity | 1 year | 1 year | |
Long-term investments | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 83,022 | $ 37,645 | |
Gross Unrealized Gains | [1] | 0 | 0 |
Gross Unrealized Losses | [1] | (534) | (153) |
Aggregate Estimated Fair Value | 82,488 | 37,492 | |
Long-term investments | Certificates of deposit | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | 960 | 8,400 | |
Gross Unrealized Gains | [1] | 0 | 0 |
Gross Unrealized Losses | [1] | (2) | (28) |
Aggregate Estimated Fair Value | $ 958 | $ 8,372 | |
Long-term investments | Certificates of deposit | Minimum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities contractual maturity | 1 year | 1 year | |
Long-term investments | Certificates of deposit | Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities contractual maturity | 2 years | 2 years | |
Long-term investments | Corporate debt securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 69,528 | $ 29,245 | |
Gross Unrealized Gains | [1] | 0 | 0 |
Gross Unrealized Losses | [1] | (488) | (125) |
Aggregate Estimated Fair Value | $ 69,040 | $ 29,120 | |
Long-term investments | Corporate debt securities | Minimum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities contractual maturity | 1 year | 1 year | |
Long-term investments | Corporate debt securities | Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities contractual maturity | 2 years | 2 years | |
Long-term investments | Securities of government sponsored entities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Amortized Cost | $ 12,534 | ||
Gross Unrealized Gains | [1] | 0 | |
Gross Unrealized Losses | [1] | (44) | |
Aggregate Estimated Fair Value | $ 12,490 | ||
Long-term investments | Securities of government sponsored entities | Minimum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities contractual maturity | 1 year | ||
Long-term investments | Securities of government sponsored entities | Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Available for sale securities contractual maturity | 2 years | ||
[1] | (1) Unrealized gains and losses are included in other comprehensive loss. |
Gross Unrealized Losses and Fai
Gross Unrealized Losses and Fair Value Available-For-Sale Investments in Unrealized Loss Position (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | $ 358,549 | $ 167,462 |
Less Than 12 Months, Unrealized Losses | (959) | (283) |
12 Months or Greater, Estimated Fair Value | 5,521 | 0 |
12 Months or Greater, Unrealized Losses | (22) | 0 |
Total Estimated Fair Value | 364,070 | 167,462 |
Total Unrealized Losses | (981) | (283) |
Certificates of deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 5,517 | 16,957 |
Less Than 12 Months, Unrealized Losses | (3) | (34) |
12 Months or Greater, Estimated Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Losses | 0 | 0 |
Total Estimated Fair Value | 5,517 | 16,957 |
Total Unrealized Losses | (3) | (34) |
Commercial paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 16,959 | |
Less Than 12 Months, Unrealized Losses | (11) | |
12 Months or Greater, Estimated Fair Value | 0 | |
12 Months or Greater, Unrealized Losses | 0 | |
Total Estimated Fair Value | 16,959 | |
Total Unrealized Losses | (11) | |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 310,160 | 149,477 |
Less Than 12 Months, Unrealized Losses | (880) | (248) |
12 Months or Greater, Estimated Fair Value | 5,521 | 0 |
12 Months or Greater, Unrealized Losses | (22) | 0 |
Total Estimated Fair Value | 315,681 | 149,477 |
Total Unrealized Losses | (902) | (248) |
Securities of government sponsored entities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 25,913 | 1,028 |
Less Than 12 Months, Unrealized Losses | (65) | (1) |
12 Months or Greater, Estimated Fair Value | 0 | 0 |
12 Months or Greater, Unrealized Losses | 0 | 0 |
Total Estimated Fair Value | 25,913 | 1,028 |
Total Unrealized Losses | $ (65) | $ (1) |
Assets Measured at Fair Value o
Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | $ 387.5 | $ 200.3 |
Investments Including Cash Equivalents And Restricted Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 466.5 | 236.1 |
Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 79 | 35.8 |
Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 379.3 | 193.8 |
Short-term investments | Cash and money market fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 69.5 | 28.7 |
Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 9.1 | 9.1 |
Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 24 | 7.5 |
Short-term investments | Securities of government-sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 17.7 | 1.5 |
Short-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 259 | 147 |
Long-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 5.7 | 13.2 |
Long-term investments | Securities of government-sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 12.5 | |
Long-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying Value | 69 | 29.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 10.1 | 17.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Investments Including Cash Equivalents And Restricted Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 84.3 | 51 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 74.2 | 33.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 78.6 | 37.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Cash and money market fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 69.5 | 28.7 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 9.1 | 9.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Securities of government-sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 5.7 | 13.2 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term investments | Securities of government-sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 377.4 | 182.8 |
Significant Other Observable Inputs (Level 2) | Investments Including Cash Equivalents And Restricted Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 382.2 | 185.1 |
Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 4.8 | 2.3 |
Significant Other Observable Inputs (Level 2) | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 300.7 | 156 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Cash and money market fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 24 | 7.5 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Securities of government-sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 17.7 | 1.5 |
Significant Other Observable Inputs (Level 2) | Short-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 259 | 147 |
Significant Other Observable Inputs (Level 2) | Long-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Long-term investments | Securities of government-sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 12.5 | |
Significant Other Observable Inputs (Level 2) | Long-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 69 | 29.1 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Investments Including Cash Equivalents And Restricted Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Cash and Cash Equivalents | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | Cash and money market fund | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | Securities of government-sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Short-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Long-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Long-term investments | Securities of government-sponsored entities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | 0 | |
Significant Unobservable Inputs (Level 3) | Long-term investments | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets on recurring basis | $ 0 | $ 0 |
Property and Equipment (Detail)
Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 30,293 | $ 31,253 |
Less accumulated depreciation | (26,861) | (28,746) |
Property and equipment, net | 3,432 | 2,507 |
Tenant improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,335 | 1,226 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 837 | 819 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 28,121 | $ 29,208 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 1,000 | $ 800 | $ 700 |
Gain (loss) on disposal of capital equipment | $ 9 | $ (4) | $ 37 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accrued employee related costs | $ 7,358 | $ 6,520 |
Accrued development costs | 7,359 | 1,706 |
Other accrued liabilities | 4,317 | 3,282 |
Accrued Liabilities, Current | $ 19,034 | $ 11,508 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||
Dec. 31, 2007USD ($)Building | Dec. 31, 2015USD ($)ft²RenewalOptionsLease_Agreements | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2008USD ($) | |
Commitment And Contingencies [Line Items] | |||||
Sale of facility and associated real property | $ 109,000,000 | ||||
Mortgage debt retired | 47,700,000 | ||||
Cash received net of transaction costs and debt retirement | $ 61,000,000 | ||||
Leaseback transaction lease period | 12 years | ||||
Number of building leased | Building | 2 | ||||
Net deferred gain on real estate sale | $ 14,300,000 | $ 39,100,000 | |||
Deferred gain recognized on real estate sale | $ 3,300,000 | $ 3,200,000 | $ 3,100,000 | ||
Lease expiration year | 2,019 | ||||
Percentage of management fee included in the base annual rent | 3.50% | ||||
Letter of credit | $ 4,600,000 | ||||
Lease extension period | 10 years | ||||
Number of times to renew the lease contract | RenewalOptions | 2 | ||||
Subleased area | ft² | 30,000 | ||||
Rental income from sublease agreement | $ 1,100,000 | ||||
Rent expense | $ 5,900,000 | $ 5,900,000 | $ 5,900,000 | ||
Lease period | 12 years | ||||
Lease expiration year | 2,019 | ||||
Cash and investment required to be maintained | $ 50,000,000 | ||||
Security deposit to be increased | 5,000,000 | ||||
Milestone payables | $ 17,000,000 | ||||
Minimum | |||||
Commitment And Contingencies [Line Items] | |||||
Lease cancellation, notice period | 0 days | ||||
Maximum | |||||
Commitment And Contingencies [Line Items] | |||||
Lease cancellation, notice period | 180 days | ||||
Royalty, rate | 5.00% | ||||
Sublease | |||||
Commitment And Contingencies [Line Items] | |||||
Number of sublease agreements | Lease_Agreements | 2 | ||||
Lease renewal additional periods | 1 year | ||||
Lease expiration date | 2017-02 | ||||
Second Sublease | |||||
Commitment And Contingencies [Line Items] | |||||
Lease renewal additional periods | 1 year | ||||
Lease expiration date | 2018-03 |
Changes to Accrued Cease-Use Li
Changes to Accrued Cease-Use Liability (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning balance | $ 2,678 | $ 3,096 |
Change in estimate | (85) | 0 |
Payments | (610) | (418) |
Ending balance | $ 1,983 | $ 2,678 |
Estimated Future Annual Minimum
Estimated Future Annual Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 7,606 |
2,017 | 7,834 |
2,018 | 8,070 |
2,019 | 8,311 |
2020 and thereafter | 0 |
Total future minimum lease payments | $ 31,821 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | May. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options outstanding | 5,507,000 | 5,750,000 | 5,853,000 | 6,166,000 | |
Number of common stock available for future grant | 6,200,000 | ||||
Tax benefits recognized in the consolidated statements of cash flows | $ 0 | ||||
Assumption estimated forfeiture rate | 0.00% | ||||
Weighted-average fair values of options granted | $ 23.24 | $ 12.57 | $ 6.55 | ||
Weighted average remaining contractual term for options outstanding | 6 years 9 months 18 days | ||||
Share-based compensation expense | $ 28,392,000 | $ 10,382,000 | $ 6,819,000 | ||
Number of stock options exercisable | 3,800,000 | ||||
Stock options exercisable, weighted average exercise price | $ 10.44 | ||||
Stock options exercisable, weighted-average remaining contractual term | 6 years 1 month 6 days | ||||
Stock options exercised in period intrinsic value | $ 43,600,000 | 14,300,000 | 6,000,000 | ||
Stock options intrinsic value of options outstanding | 225,400,000 | ||||
Stock options intrinsic value of options exercisable | 177,000,000 | ||||
Cash received from stock option exercises | $ 6,300,000 | $ 5,600,000 | $ 5,300,000 | ||
Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation, term | 3 years | ||||
Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation, term | 4 years | ||||
Share-based compensation, contractual term | 10 years | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Restricted stock units granted | 448,000 | 389,000 | 379,000 | ||
Assumption estimated forfeiture rate | 0.00% | ||||
Share-based compensation expense | $ 6,000,000 | $ 2,600,000 | $ 800,000 | ||
Unrecognized compensation cost | $ 16,200,000 | ||||
Stock vesting period | 2 years 8 months 12 days | ||||
Total intrinsic value vested in period | $ 5,700,000 | $ 1,700,000 | $ 0 | ||
Intrinsic value outstanding | $ 51,500,000 | ||||
Restricted Stock Units (RSUs) | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period | 4 years | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 13,600,000 | ||||
Unrecognized compensation cost | $ 28,000,000 | ||||
Stock vesting period | 2 years 7 months 6 days | ||||
Stock Options | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period | 3 years | ||||
Share-based compensation, term | 7 years | ||||
Stock Options | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period | 4 years | ||||
Share-based compensation, term | 10 years | ||||
Performance-based RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period | 5 years | ||||
Restricted stock units granted | 50,000 | 475,000 | |||
Share-based compensation expense | $ 8,800,000 | $ 0 | |||
Unrecognized compensation cost | 2,200,000 | ||||
Intrinsic value outstanding | $ 12,000,000 | ||||
Performance-based RSUs | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period | 5 years | ||||
Executive Level Employees [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options granted | 120,000 | 160,000 | |||
Stock vesting period | 4 years | ||||
Stock options outstanding | 300,000 | ||||
Executive Level Employees [Member] | Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock vesting period | 3 years | ||||
Restricted stock units granted | 50,000 | ||||
2011 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock authorized for issuance | 13,500,000 | ||||
Share Based Compensation Arrangement Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock authorized for issuance | 12,800,000 | ||||
PRSUs Converted into Common Shares | Performance-based RSUs | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Intrinsic value outstanding | $ 14,900,000 |
Compensation Cost Related to Sh
Compensation Cost Related to Share-Based Compensation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 28,392 | $ 10,382 | $ 6,819 |
General and Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | 15,281 | 5,167 | 3,516 |
Research and Development Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total share-based compensation expense | $ 13,111 | $ 5,215 | $ 3,303 |
Weighted-Average Assumptions fo
Weighted-Average Assumptions for Stock Option Grants using Black-Scholes Option-Pricing Model (Detail) - Stock Options | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.70% | 2.20% | 1.40% |
Expected volatility of common stock | 66.00% | 71.00% | 76.00% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected option term | 6 years 7 months 6 days | 7 years 2 months 12 days | 7 years 3 months 18 days |
Summary and Changes in Stock Op
Summary and Changes in Stock Options Outstanding (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares | |||
Outstanding, Beginning Balance | 5,750 | 5,853 | 6,166 |
Granted | 1,159 | 1,089 | 771 |
Exercised | (1,315) | (1,135) | (904) |
Canceled | (87) | (57) | (180) |
Outstanding, Ending Balance | 5,507 | 5,750 | 5,853 |
Weighted average exercise price | |||
Outstanding, Beginning Balance | $ 9.31 | $ 7.54 | $ 7.62 |
Granted | 37.21 | 18.41 | 9.24 |
Exercised | 5.01 | 6.50 | 5.96 |
Canceled | 46.08 | 56.83 | 25.68 |
Outstanding, Ending Balance | $ 15.63 | $ 9.31 | $ 7.54 |
Summary and Changes in Restrict
Summary and Changes in Restricted Stock Units Outstanding (Detail) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted stock units | |||
Outstanding, Beginning Balance | 669 | 373 | 0 |
Granted | 448 | 389 | 379 |
Cancelled | (16) | 0 | (6) |
Converted into common shares | (191) | (93) | 0 |
Outstanding Ending Balance | 910 | 669 | 373 |
Weighted average grant date fair value | |||
Outstanding Beginning Balance | $ 15.01 | $ 8.65 | $ 0 |
Granted | 33.62 | 19.59 | 8.65 |
Cancelled | 20.83 | 0 | 8.65 |
Converted into common shares | 14.24 | 8.65 | 0 |
Outstanding Ending Balance | $ 24.23 | $ 15.01 | $ 8.65 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | |||||
Proceeds from common stock issuance | $ 270,700 | $ 133,200 | $ 276,992 | $ 138,731 | $ 5,302 |
Common Stock | |||||
Class of Stock [Line Items] | |||||
Common stock issued | 8,000 | 8,000 | 7,986 | 8,000 | |
Common stock, offering price | $ 36 | $ 17.75 | |||
February Two Thousand Fourteen Shelf Registration [Member] | |||||
Class of Stock [Line Items] | |||||
Common stock issued | 16,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Percentage of uncertain tax positions likelihood of being sustained | 50.00% | ||
Accrual interest or penalties | $ 0 | $ 0 | |
Deferred tax assets | 382,400,000 | 367,100,000 | |
Research and development tax credit carry forwards | 33,500,000 | 29,000,000 | |
Net operating loss carry forwards related to stock option exercises | 77,000,000 | ||
Deferred tax assets, valuation allowance | 382,400,000 | 367,100,000 | |
Increases related to prior year tax positions | 6,636,000 | 47,000 | $ 543,000 |
Increases related to current year tax positions | 2,584,000 | $ 676,000 | $ 916,000 |
Unrecognized tax benefits that would affect effective tax rate | 26,200,000 | ||
Federal | |||
Income Taxes [Line Items] | |||
Operating loss carry forward, net | $ 736,000,000 | ||
Operating loss carry forward beginning expiration year | 2,021 | ||
Research and development tax credit carry forwards | $ 38,200,000 | ||
Alternative Minimum Tax credit carry forwards | $ 213,000 | ||
Federal | R&D | |||
Income Taxes [Line Items] | |||
Tax credit carry forwards beginning expiration year | 2,018 | ||
California | |||
Income Taxes [Line Items] | |||
Operating loss carry forward, net | $ 567,300,000 | ||
Research and development tax credit carry forwards | $ 27,200,000 |
Expiration of Net Operating Los
Expiration of Net Operating Loss Carry Forwards (Detail) - California $ in Thousands | Dec. 31, 2015USD ($) |
Operating Loss Carryforwards [Line Items] | |
2,016 | $ 116,600 |
2,017 | 51,900 |
2,018 | 140,600 |
2028 and beyond | $ 258,100 |
Components of Deferred Tax Asse
Components of Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Net operating losses | $ 257,900 | $ 260,600 |
Research and development credits | 33,500 | 29,000 |
Capitalized research and development | 58,900 | 45,700 |
Share-based compensation expense | 10,900 | 6,900 |
Deferred revenue | 4,300 | 800 |
Deferred gain on sales leaseback | 5,000 | 7,200 |
Intangibles | 6,900 | 10,600 |
Cease-use expense | 700 | 1,100 |
Fixed assets | 400 | 500 |
Other | 3,900 | 4,700 |
Total deferred tax assets | 382,400 | 367,100 |
Valuation allowance | (382,400) | (367,100) |
Net deferred tax assets | $ 0 | $ 0 |
Provision for Income Taxes on E
Provision for Income Taxes on Earnings Subject to Income Taxes Differs from Statutory Federal Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes at 35% | $ (31,126) | $ (21,190) | $ (16,131) |
State income tax, net of Federal benefit | 2 | (3,410) | (2,611) |
Tax effect on non-deductible expenses | 172 | 10 | 7 |
Share-based compensation expense | 201 | 91 | 215 |
Change in tax rate | 10,773 | 0 | 0 |
Expired tax attributes | 5,594 | 315 | 151 |
Research credits | (6,638) | (1,882) | (3,458) |
Change in valuation allowance | 15,029 | 25,366 | 20,504 |
Uncertain tax positions | 5,940 | 621 | 1,283 |
Other | 53 | 79 | 40 |
Income Tax Expense (Benefit), Total | $ 0 | $ 0 | $ 0 |
Provision for Income Taxes on52
Provision for Income Taxes on Earnings Subject to Income Taxes Differs from Statutory Federal Rate (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal income taxes, rate | 35.00% | 35.00% | 35.00% |
Activity Related to Unrecognize
Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefit beginning Balance | $ 23,854 | $ 23,131 | $ 21,672 |
Increases related to prior year tax positions | 6,636 | 47 | 543 |
Increases related to current year tax positions | 2,584 | 676 | 916 |
Expiration of the statute of limitations for the assessment of taxes | 0 | 0 | 0 |
Unrecognized tax benefit ending Balance | $ 33,074 | $ 23,854 | $ 23,131 |
Retirement Plan - Additional In
Retirement Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined contribution plan, maximum employee contribution percentage | 60.00% | ||
Defined contribution plan, employer contribution amount | $ 0.4 | $ 0.3 | $ 0.3 |
Summary of Quarterly Results of
Summary of Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 0 | $ 0 | $ 0 | $ 19,769 | $ 0 | $ 0 | $ 0 | $ 0 | $ 19,769 | $ 0 | $ 2,919 |
Operating expenses | 30,748 | 35,844 | 25,322 | 22,057 | 20,468 | 16,857 | 14,361 | 12,725 | 113,971 | 64,411 | 52,597 |
Net loss | $ (29,315) | $ (34,435) | $ (23,987) | $ (1,192) | $ (19,444) | $ (15,875) | $ (13,381) | $ (11,842) | $ (88,929) | $ (60,542) | $ (46,090) |
Net loss per share: | |||||||||||
Basic and Diluted | $ (0.34) | $ (0.40) | $ (0.28) | $ (0.01) | $ (0.26) | $ (0.21) | $ (0.18) | $ (0.17) | $ (1.05) | $ (0.81) | |
Shares used in the calculation of net loss per share: | |||||||||||
Basic and Diluted | 86,184 | 85,856 | 85,518 | 80,349 | 76,139 | 75,948 | 75,879 | 70,260 | 84,496 | 74,577 |