Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 24, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 28-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'exel | ' |
Entity Registrant Name | 'EXELIXIS, INC. | ' |
Entity Central Index Key | '0000939767 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Current Fiscal Year End Date | '--01-02 | ' |
Entity Common Stock, Shares Outstanding | ' | 194,694,949 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Current assets: | ' | ' | |
Cash and cash equivalents | $157,539 | $103,978 | [1] |
Short-term investments | 116,033 | 138,475 | [1] |
Short-term restricted cash and investments | 12,208 | 12,213 | [1] |
Trade and other receivables | 4,457 | 3,941 | [1] |
Inventory | 2,686 | 2,890 | [1] |
Prepaid expenses and other current assets | 5,386 | 5,112 | [1] |
Total current assets | 298,309 | 266,609 | [1] |
Long-term investments | 111,155 | 144,299 | [1] |
Long-term restricted cash and investments | 10,814 | 16,897 | [1] |
Property and equipment, net | 4,685 | 4,910 | [1] |
Goodwill | 63,684 | 63,684 | [1] |
Other assets | 8,918 | 6,888 | [1] |
Total assets | 497,565 | 503,287 | [1] |
Current liabilities: | ' | ' | |
Accounts payable | 4,943 | 9,345 | [1] |
Accrued clinical trial liabilities | 39,118 | 34,958 | [1] |
Accrued compensation and benefits | 8,088 | 12,797 | [1] |
Other accrued liabilities | 11,974 | 13,116 | [1] |
Current portion of convertible notes | 0 | 10,000 | [1] |
Current portion of loans payable | 1,392 | 1,762 | [1] |
Current portion of restructuring | 4,298 | 4,425 | [1] |
Deferred revenue | 1,243 | 1,450 | [1] |
Total current liabilities | 71,056 | 87,853 | [1] |
Long-term portion of convertible notes | 261,408 | 255,147 | [1] |
Long-term portion of loans payable | 80,219 | 80,328 | [1] |
Long-term portion of restructuring | 7,933 | 9,047 | [1] |
Other long-term liabilities | 5,467 | 4,674 | [1] |
Total liabilities | 426,083 | 437,049 | [1] |
Commitments | ' | ' | [1] |
Stockholders' Equity: | ' | ' | |
Preferred stock | 0 | 0 | [1] |
Common stock, $0.001 par value; 400,000,000 shares authorized; issued and outstanding: 194,652,943 and 184,533,651 shares at March 31, 2014 and December 31, 2013, respectively | 194 | 184 | [1] |
Additional paid-in capital | 1,644,516 | 1,564,670 | [1] |
Accumulated other comprehensive income | 153 | 146 | [1] |
Accumulated deficit | -1,573,381 | -1,498,762 | [1] |
Total stockholders’ equity | 71,482 | 66,238 | [1] |
Total liabilities and stockholders' equity | $497,565 | $503,287 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited financial statements as of that date. |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value, in dollars per share | $0.00 | $0.00 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 194,652,943 | 184,533,651 |
Common stock, shares outstanding | 194,652,943 | 184,533,651 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Net product revenues | $4,905 | $1,856 |
License and contract revenues | 0 | 7,813 |
Total revenues | 4,905 | 9,669 |
Operating expenses: | ' | ' |
Cost of goods sold | 309 | 280 |
Research and development | 54,847 | 32,735 |
Selling, general and administrative | 14,691 | 10,545 |
Restructuring charge | 46 | 119 |
Total operating expenses | 69,893 | 43,679 |
Loss from operations | -64,988 | -34,010 |
Other income (expense), net: | ' | ' |
Interest income and other, net | 2,131 | 338 |
Interest expense | -11,762 | -11,057 |
Total other income (expense), net | -9,631 | -10,719 |
Net loss | ($74,619) | ($44,729) |
Net loss per share, basic and diluted, in dollars per share | ($0.39) | ($0.24) |
Shares used in computing basic and diluted net loss per share, in shares | 191,699 | 183,742 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Loss (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Statement of Comprehensive Income [Abstract] | ' | ' | ||
Net loss | ($74,619) | ($44,729) | ||
Other comprehensive income | 7 | [1] | 194 | [1] |
Comprehensive loss | ($74,612) | ($44,535) | ||
[1] | Other comprehensive income consisted solely of unrealized gains or losses, net on available for sale securities arising during the periods presented. There were no reclassification adjustments to net loss resulting from realized gains or losses on the sale of securities and there was no income tax expense related to other comprehensive income during those periods. |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Cash flows from operating activities: | ' | ' | |
Net loss | ($74,619) | ($44,729) | |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | |
Depreciation and amortization | 498 | 842 | |
Stock-based compensation expense | 3,758 | 2,679 | |
Accretion of debt discount | 6,988 | 6,314 | |
Gain on warrants | -1,739 | 0 | |
Other | 1,475 | 1,733 | |
Changes in assets and liabilities: | ' | ' | |
Trade and other receivables | -516 | -1,114 | |
Inventory | 204 | -280 | |
Prepaid expenses and other current assets | -359 | -4,757 | |
Other assets | -5 | 0 | |
Accounts payable, accrued compensation, and other accrued liabilities | -10,254 | -4,769 | |
Clinical trial liabilities | 4,160 | -703 | |
Restructuring liability | -1,241 | -2,378 | |
Other long-term liabilities | -229 | -143 | |
Deferred revenue | -207 | -7,110 | |
Net cash used in operating activities | -72,086 | -54,415 | |
Cash flows from investing activities: | ' | ' | |
Purchases of property and equipment | -384 | -729 | |
Proceeds from sale of property and equipment | 276 | 0 | |
Proceeds from maturities of restricted cash and investments | 6,598 | 6,647 | |
Purchase of restricted cash and investments | -504 | -504 | |
Proceeds from maturities of investments | 90,311 | 157,096 | |
Purchases of investments | -35,937 | -96,157 | |
Net cash provided by investing activities | 60,360 | 66,353 | |
Cash flows from financing activities: | ' | ' | |
Proceeds from issuance of common stock, net | 75,646 | 0 | |
Proceeds from exercise of stock options and warrants | 120 | 16 | |
Principal payments on debt | -10,479 | -10,791 | |
Net cash provided by (used in) financing activities | 65,287 | -10,775 | |
Net increase in cash and cash equivalents | 53,561 | 1,163 | |
Cash and cash equivalents at beginning of period | 103,978 | [1] | 170,069 |
Cash and cash equivalents at end of period | 157,539 | 171,232 | |
Supplemental cash flow disclosure - non-cash financing activity: | ' | ' | |
Issuance of warrants in connection with amendment to convertible notes | $2,762 | $0 | |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited financial statements as of that date. |
Organization_and_Summary_of_Si
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Summary of Significant Accounting Policies | ' |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Organization | |
Exelixis, Inc. (“Exelixis,” “we,” “our” or “us”) is a biopharmaceutical company committed to developing small molecule therapies for the treatment of cancer. Our two most advanced assets, COMETRIQ® (cabozantinib), our wholly-owned inhibitor of multiple receptor tyrosine kinases, and cobimetinib (GDC-0973/XL518), a potent, highly selective inhibitor of MEK, which we out-licensed to Genentech, Inc. (a member of the Roche Group) (“Genentech”), are currently the subject of six ongoing phase 3 pivotal trials. | |
We are focusing our development and commercialization efforts primarily on COMETRIQ (cabozantinib), which was approved by the U.S. Food and Drug Administration (“FDA”) on November 29, 2012, for the treatment of progressive, metastatic medullary thyroid cancer (“MTC”) in the United States, where it became commercially available in late January 2013. In March 2014, the European Commission approved COMETRIQ for the treatment of adult patients with progressive, unresectable locally advanced or metastatic MTC. The European Commission granted conditional marketing authorization following a positive opinion from the European Committee for Medicinal Products for Human Use (“CHMP”) issued in December 2013. | |
Basis of Consolidation | |
The consolidated financial statements include the accounts of Exelixis and those of our wholly-owned subsidiaries. These entities’ functional currency is the U.S. dollar. All intercompany balances and transactions have been eliminated. | |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results of operations and cash flows for the period presented have been included. | |
Exelixis adopted a 52- or 53-week fiscal year that generally ends on the Friday closest to December 31st. Fiscal year 2013, a 52-week year, ended on December 27, 2013, and fiscal year 2014, a 53-week year, will end on January 2, 2015. For convenience, references in this report as of and for the fiscal quarters ended March 29, 2013 and March 28, 2014, and as of the fiscal year ended December 27, 2013, are indicated as ended March 31, 2013, March 31, 2014, and December 31, 2013, respectively. | |
Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending January 2, 2015 or for any future period. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2013, included in our Annual Report on Form 10-K filed with the SEC on February 20, 2014. | |
Segment Information | |
We operate as a single reportable segment. | |
Use of Estimates | |
The preparation of our consolidated financial statements is in conformity with accounting principles generally accepted in the United States which requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. On an ongoing basis, management evaluates its estimates including, but not limited to, those related to inventory, revenue recognition, valuation of long-lived assets, certain accrued liabilities including clinical trial accruals and restructuring liability, valuation of warrants, share-based compensation and the valuation of the debt and equity components of our convertible debt at issuance. We base our estimates on historical experience and on various other market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. | |
Revenue Recognition | |
We recognize revenue from the sale of COMETRIQ and from license fees and milestones earned on research and collaboration arrangements. See “Note 1 - Organization and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a description of our policies for revenue recognition on research and collaboration agreements. We did not enter into any new collaboration agreements during the three months ended March 31, 2014. See “Note 2 - Research and Collaboration Agreements” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a description of our existing collaboration agreements. | |
Net Product Revenues | |
We recognize revenue when it is both realized or realizable and earned, meaning persuasive evidence of an arrangement exists, delivery has occurred, title has transferred, the price is fixed or determinable, there are no remaining customer acceptance requirements, and collectability of the resulting receivable is reasonably assured. For product sales in the United States, this generally occurs upon shipment of the product to the patient by our distributor. For product sales in Europe, this occurs when our European distribution partner has accepted the product. | |
We sell our product, COMETRIQ, in the United States to a specialty pharmacy that benefits from customer incentives and has a right of return. We have a limited sales history and cannot reliably estimate expected returns of the product nor the discounts and rebates due to payors at the time of shipment to the specialty pharmacy. Accordingly, upon shipment to the specialty pharmacy, we record deferred revenue on our Consolidated Balance Sheets. We recognize revenue when the specialty pharmacy provides the product to a patient based on the fulfillment of a prescription. We record revenue using an analysis of prescription data from our specialty pharmacy to ascertain the date of shipment and the payor mix. This approach is frequently referred to as the “sell-through” revenue recognition model. Once the prescription has been provided to the patient, it is not subject to return unless the product is damaged. | |
Product sales to our European distribution partner are generally not subject to customer incentives, rights of return or discounts and allowances. We record revenue at the time our European distribution partner has accepted the product, a method also known as the “sell-in” revenue recognition model. | |
Product Sales Discounts and Allowances | |
We calculate gross product revenues based on the price that we charge our United States specialty pharmacy and our European distribution partner. We estimate our net product revenues by deducting from our gross product revenues (a) trade allowances, such as discounts for prompt payment, (b) estimated government rebates and chargebacks, and (c) estimated costs of patient assistance programs. We initially record estimates for these deductions at the time we recognize the gross revenue. We update our estimates on a recurring basis as new information becomes available. These discounts and allowances apply only to gross product revenues earned in the United States. See “Note 1 - Organization and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a further description of those discounts and allowances. | |
Cost of Goods Sold | |
Cost of goods sold is related to our product revenues and consisted primarily of a 3% royalty and indirect labor costs, and to a lesser extent, the cost of manufacturing and other third party logistics costs of our product. A significant portion of the manufacturing costs for product sales were incurred prior to regulatory approval of COMETRIQ for the treatment of progressive, metastatic MTC and, therefore, were expensed as research and development costs when those costs were incurred, rather than capitalized as inventory. | |
In accordance with our product development and commercialization agreement with GlaxoSmithKline, we are required to pay GlaxoSmithKline a 3% royalty on the Net Sales of any product incorporating cabozantinib, including COMETRIQ. Net Sales is defined in the product development and commercialization agreement generally as the gross invoiced sales price less customer credits, rebates, chargebacks, shipping costs, customs duties, and sales tax and other similar tax payments we are required to make. |
Restructurings
Restructurings | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Restructuring Charges [Abstract] | ' | ||||||||||||
Restructurings | ' | ||||||||||||
RESTRUCTURINGS | |||||||||||||
Between March 2010 and May 2013, we implemented five restructurings (referred to collectively as the “Restructurings”) as a consequence of our decision to focus our proprietary resources and development efforts on the development and commercialization of cabozantinib and strategy to manage costs. The aggregate reduction in headcount from the Restructurings was 429 employees. Charges and credits related to the Restructurings were recorded in periods other than those in which the Restructurings were implemented as a result of sublease activities for certain of our buildings in South San Francisco, California, changes in assumptions regarding anticipated sublease activities, the effect of the passage of time on our discounted cash flow computations, previously planned employee terminations, and sales of excess equipment and other assets. | |||||||||||||
We have recorded aggregate restructuring charges of $53.3 million in connection with the Restructurings, of which $29.4 million related to facility charges, $21.7 million related to termination benefits, $2.2 million related to the impairment of excess equipment and other assets, and an additional minor amount related to legal and other fees. | |||||||||||||
For the three months ended March 31, 2014 and 2013, we recorded restructuring charges of $46 thousand and $0.1 million, respectively. The charges for both periods presented were related to the effect of the passage of time on our discounted cash flow computations. During the three months ended March 31, 2014, those charges were partially offset by $0.1 million in recoveries recorded in connection with the sale of excess equipment and other assets. | |||||||||||||
The total outstanding restructuring liability related to the Restructurings is included in the current and long-term portion of restructuring on the accompanying Consolidated Balance Sheets. The components and changes of these liabilities during the annual periods from inception of the restructuring activities through the year ended December 31, 2013 and during the three months ended March 31, 2014 are summarized in the following table (in thousands): | |||||||||||||
Facility | Other | Total | |||||||||||
Charges | |||||||||||||
Restructuring liability as of December 31, 2012 | $ | 19,202 | $ | 20 | $ | 19,222 | |||||||
Restructuring charge | 662 | 569 | 1,231 | ||||||||||
Cash payments | (6,331 | ) | (434 | ) | (6,765 | ) | |||||||
Adjustments or non-cash credits including stock compensation expense | (73 | ) | (238 | ) | (311 | ) | |||||||
Proceeds from sale of assets | — | 95 | 95 | ||||||||||
Restructuring liability as of December 31, 2013 | 13,460 | 12 | 13,472 | ||||||||||
Restructuring charge (credit) | 159 | (113 | ) | 46 | |||||||||
Cash payments | (1,403 | ) | (6 | ) | (1,409 | ) | |||||||
Adjustments or non-cash credits | 9 | (86 | ) | (77 | ) | ||||||||
Proceeds from sale of assets | — | 199 | 199 | ||||||||||
Restructuring liability as of March 31, 2014 | $ | 12,225 | $ | 6 | $ | 12,231 | |||||||
We expect to pay accrued facility charges of $12.2 million, net of cash received from our subtenants, through the end of our lease terms of the buildings, the last of which ends in 2017. With respect to our Restructurings, we expect to incur additional restructuring charges of approximately $2.5 million which relates to the effect of the passage of time on our discounted cash flow computations for the exit, in prior periods, of certain of our South San Francisco buildings. These charges will be recorded through the end of the building lease terms, the last of which ends in 2017. | |||||||||||||
The Restructurings have resulted in aggregate cash expenditures of $36.6 million, net of $11.3 million in cash received from subtenants and $2.9 million in cash received in connection with the sale of excess equipment and other assets. Net cash expenditures for the Restructurings were $1.2 million and $2.4 million during the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||
The restructuring charges that we expect to incur in connection with the Restructurings are subject to a number of assumptions, and actual results may materially differ. We may also incur other material charges not currently contemplated due to events that may occur as a result of, or associated with, the Restructurings. |
Cash_and_Investments
Cash and Investments | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Cash and Investments | ' | |||||||||||||||
CASH AND INVESTMENTS | ||||||||||||||||
The following table summarizes cash and cash equivalents, investments, and restricted cash and investments by balance sheet line item as of March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
March 31, 2014 | ||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Cash and cash equivalents | $ | 157,538 | $ | 1 | $ | — | $ | 157,539 | ||||||||
Short-term investments | 115,931 | 119 | (17 | ) | 116,033 | |||||||||||
Short-term restricted cash and investments | 12,142 | 66 | — | 12,208 | ||||||||||||
Long-term investments | 111,110 | 54 | (9 | ) | 111,155 | |||||||||||
Long-term restricted cash and investments | 10,768 | 46 | — | 10,814 | ||||||||||||
Total cash and investments | $ | 407,489 | $ | 286 | $ | (26 | ) | $ | 407,749 | |||||||
December 31, 2013 | ||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Cash and cash equivalents | $ | 103,978 | $ | — | $ | — | $ | 103,978 | ||||||||
Short-term investments | 138,403 | 94 | (22 | ) | 138,475 | |||||||||||
Short-term restricted cash and investments | 12,173 | 40 | — | 12,213 | ||||||||||||
Long-term investments | 144,226 | 106 | (33 | ) | 144,299 | |||||||||||
Long-term restricted cash and investments | 16,837 | 60 | — | 16,897 | ||||||||||||
Total cash and investments | $ | 415,617 | $ | 300 | $ | (55 | ) | $ | 415,862 | |||||||
Under our loan and security agreement with Silicon Valley Bank, we are required to maintain compensating balances on deposit in one or more investment accounts with Silicon Valley Bank or one of its affiliates. The total collateral balances as of March 31, 2014 and December 31, 2013 were $83.2 million and $83.7 million, respectively, and are reflected on the accompanying Consolidated Balance Sheets in short- and long-term investments. See “Note 8 - Debt” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013, for more information regarding the collateral balance requirements under our Silicon Valley Bank loan and security agreement. | ||||||||||||||||
All of our cash equivalents and investments are classified as available-for-sale. The following table summarizes our cash equivalents and investments by security type as of March 31, 2014 and December 31, 2013. The amounts presented exclude cash, but include investments classified as cash equivalents (in thousands): | ||||||||||||||||
March 31, 2014 | ||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Money market funds | $ | 71,150 | $ | — | $ | — | $ | 71,150 | ||||||||
Commercial paper | 103,273 | — | — | 103,273 | ||||||||||||
Corporate bonds | 208,208 | 166 | (26 | ) | 208,348 | |||||||||||
U.S. Treasury and government sponsored enterprises | 21,372 | 116 | — | 21,488 | ||||||||||||
Municipal bonds | 2,752 | 4 | — | 2,756 | ||||||||||||
Total investments | $ | 406,755 | $ | 286 | $ | (26 | ) | $ | 407,015 | |||||||
December 31, 2013 | ||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Money market funds | $ | 24,813 | $ | — | $ | — | $ | 24,813 | ||||||||
Commercial paper | 94,682 | — | — | 94,682 | ||||||||||||
Corporate bonds | 239,937 | 190 | (55 | ) | 240,072 | |||||||||||
U.S. Treasury and government sponsored enterprises | 44,284 | 102 | — | 44,386 | ||||||||||||
Municipal bonds | 6,005 | 8 | 6,013 | |||||||||||||
Total investments | $ | 409,721 | $ | 300 | $ | (55 | ) | $ | 409,966 | |||||||
There were no gains or losses on the sales of investments during the three months ended March 31, 2014 and 2013. | ||||||||||||||||
All of our investments are subject to a quarterly impairment review. During the three months ended March 31, 2014 and 2013, we did not record any other-than-temporary impairment charges on our available-for-sale securities. As of March 31, 2014, there were 27 investments in an unrealized loss position with an aggregate fair value $39.5 million. All of our investments in an unrealized loss position are corporate bonds. All of our investments in an unrealized loss position have been so for less than one year and the unrealized losses were not attributed to credit risk, but rather associated with the changes in interest rates. Based on the scheduled maturities of our investments, we concluded that the unrealized losses in our investment securities are not other-than-temporary, as it is more likely than not that we will hold these investments for a period of time sufficient for a recovery of our cost basis. | ||||||||||||||||
The following summarizes the fair value of securities classified as available-for-sale by contractual maturity as of March 31, 2014 (in thousands): | ||||||||||||||||
Mature within One Year | After One Year through Two Years | Fair Value | ||||||||||||||
Money market funds | $ | 71,150 | $ | — | $ | 71,150 | ||||||||||
Commercial paper | 103,273 | — | 103,273 | |||||||||||||
Corporate bonds | 168,772 | 39,576 | 208,348 | |||||||||||||
U.S. Treasury and government sponsored enterprises | 15,400 | 6,088 | 21,488 | |||||||||||||
Municipal bonds | — | 2,756 | 2,756 | |||||||||||||
Total investments | $ | 358,595 | $ | 48,420 | $ | 407,015 | ||||||||||
Cash is excluded from the table above. The classification of certain compensating balances and restricted investments are dependent upon the term of the underlying restriction on the asset and not the maturity date of the investment. Therefore, certain long-term investments and long-term restricted cash and investments have contractual maturities within one year. |
Inventory
Inventory | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventory | ' | |||||||
INVENTORY | ||||||||
Inventory consists of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 678 | $ | 529 | ||||
Work in process | 1,665 | 2,280 | ||||||
Finished goods | 343 | 81 | ||||||
Total | $ | 2,686 | $ | 2,890 | ||||
We received regulatory approval for our first product, COMETRIQ, on November 29, 2012. A significant portion of the manufacturing costs for our inventory were incurred prior to regulatory approval of COMETRIQ for the treatment of progressive, metastatic MTC and, therefore, were expensed as research and development costs when those costs were incurred, rather than capitalized as inventory. |
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
DEBT | ||||||||
The amortized carrying amount of our debt consists of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Convertible Senior Subordinated Notes due 2019 | $ | 169,415 | $ | 165,296 | ||||
Secured Convertible Notes due 2015 | 91,993 | 99,851 | ||||||
Silicon Valley Bank term loan | 80,000 | 80,000 | ||||||
Silicon Valley Bank line of credit | 1,611 | 2,090 | ||||||
Total debt | 343,019 | 347,237 | ||||||
Less: current portion | (1,392 | ) | (11,762 | ) | ||||
Long-term debt | $ | 341,627 | $ | 335,475 | ||||
See “Note 8 - Debt” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013, for additional information on the terms of our debt, including a description of the conversion features of the of 4.25% Convertible Senior Subordinated Notes due 2019 (the “2019 Notes”) and our Secured Convertible Notes due June 2015 (the “Deerfield Notes”). | ||||||||
Convertible Senior Subordinated Notes due 2019 | ||||||||
In August 2012, we issued and sold $287.5 million aggregate principal amount the 2019 Notes. As of March 31, 2014, the entire principal balance remains outstanding. The following is a summary of the liability component of the 2019 Notes (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Net carrying amount of the liability component | $ | 169,415 | $ | 165,296 | ||||
Unamortized discount of the liability component | 118,085 | 122,204 | ||||||
Face amount of the 2019 Notes | $ | 287,500 | $ | 287,500 | ||||
The debt discount and debt issuance costs will be amortized as interest expense through August 2019. During the three months ended March 31, 2014, total interest expense was $7.4 million, including stated coupon interest of $3.1 million and the amortization of the debt discount and debt issuance costs of $4.3 million. During the three months ended March 31, 2013, total interest expense was $7.0 million including stated coupon interest of $3.1 million and the amortization of the debt discount and debt issuance costs of $3.9 million. The balance of unamortized fees and costs was $3.8 million and $4.0 million as of March 31, 2014 and December 31, 2013, respectively, which is included in Other assets on the accompanying Consolidated Balance Sheets. | ||||||||
Secured Convertible Notes due June 2015 | ||||||||
In June 2010, we entered into a note purchase agreement with entities affiliated with Deerfield Management Company, L.P. (“Deerfield”), pursuant to which, on July 1, 2010, we sold to Deerfield an aggregate of $124.0 million initial principal amount of the Deerfield Notes. As of March 31, 2014 and December 31, 2013, the remaining outstanding principal balance on the Deerfield Notes was $104.0 million and $114.0 million, respectively, which, subject to certain limitations, is payable in cash or in stock at our discretion. During the three months ended March 31, 2014, and 2013, total interest expense for the Deerfield Notes was $4.2 million and $3.9 million, respectively, including the stated coupon rate and the amortization of the debt discount and debt issuance costs. The non-cash expense relating to the amortization of the debt discount and debt issuance costs was $2.7 million and $2.4 million, during the three months ended March 31, 2014 and 2013, respectively. The balance of unamortized fees and costs was $3.6 million and $1.4 million as of March 31, 2014 and December 31, 2013, respectively, which is included in Other assets on the accompanying Consolidated Balance Sheets. | ||||||||
On January 22, 2014, the note purchase agreement was amended to provide us with an option to extend the maturity date of our indebtedness under the note purchase agreement to July 1, 2018 (the “Extension Option”). Under the terms of the Extension Option, which expires on March 31, 2015, we have the right to require Deerfield Partners, L.P. and Deerfield International Master Fund, L.P. (the “New Deerfield Purchasers”) to acquire $100 million principal amount of the Deerfield Notes and extend the maturity date to July 1, 2018. If we exercise the Extension Option, the Deerfield Notes would bear interest on and after July 2, 2015 at the rate of 7.5% per annum to be paid in cash, quarterly in arrears, and 7.5% per annum to be paid in kind, quarterly in arrears, for a total interest rate of 15% per annum. We are under no obligation to exercise the Extension Option. | ||||||||
In connection with the amendment to the note purchase agreement, on January 22, 2014 we issued to the New Deerfield Purchasers two-year warrants (the “2014 Deerfield Warrants”) to purchase an aggregate of 1,000,000 shares of our common stock at an exercise price of $9.70 per share, which exercise price is subject to change in the event we exercise the Extension Option. See “Note 6 - Common Stock and Warrants” for further information on those warrants. | ||||||||
We determined that the amendment resulted in the Deerfield Notes being modified. In connection with the amendment, we recorded a $2.8 million deferred commitment fee upon the issuance of the 2014 Deerfield Warrants. See “Note 6 - Common Stock and Warrants” for further information on those warrants. The deferred commitment fee is included in Other assets and will be amortized into interest expense as a yield adjustment through the current maturity date of the Deerfield Notes, July 1, 2015. Third-party expenses, comprised primarily of legal and accounting fees, were expensed as of the date of the amendment. |
Common_Stock_And_Warrants
Common Stock And Warrants | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Warrants and Rights Note Disclosure [Abstract] | ' | |||||||||
Common Stock And Warrants | ' | |||||||||
COMMON STOCK AND WARRANTS | ||||||||||
Sale of Shares of Common Stock | ||||||||||
In January 2014 we completed a registered underwritten public offering of 10.0 million shares of our common stock at a price of $8.00 per share pursuant to a shelf registration statement previously filed with the SEC, which the SEC declared effective on June 8, 2012. We received $75.6 million in net proceeds from the offering after deducting the underwriting discount and related offering expenses. | ||||||||||
Warrants | ||||||||||
On January 22, 2014, in connection with the amendment to the note purchase agreement to provide us with the Extension Option, we issued to the New Deerfield Purchasers the 2014 Deerfield Warrants to purchase an aggregate of 1,000,000 shares of our common stock at an exercise price of $9.70 per share. If we exercise the Extension Option, the term of the 2014 Deerfield Warrants will be extended by two years and the exercise price will be reset to the lower of (i) the existing exercise price and (ii) 120% of the volume weighted average price of our common stock for the ten trading days immediately following the date of such extension election. Due to the potential increase in term and decrease of the exercise price, the 2014 Deerfield Warrants were recorded as a liability which is included in Other long-term liabilities. The 2014 Deerfield Warrants are recorded at fair value, on a recurring basis, which was $1.0 million and $2.8 million as of March 31, 2014 and January 22, 2014, respectively. We recorded an unrealized gain on the warrants of $1.7 million during the three months ended March 31, 2014 which is included in Interest income and other, net. See “Note 7 - Fair Value Measurements” for more information on the valuation of these warrants. | ||||||||||
At March 31, 2014, the following warrants to purchase common stock were outstanding and exercisable: | ||||||||||
Date Issued | Exercise | Expiration Date | Number | |||||||
Price per Share | of Shares | |||||||||
June 4, 2008 | $ | 7.4 | June 4, 2014 | 1,000,000 | ||||||
June 10, 2009 | $ | 6.05 | June 10, 2014 | 186,362 | ||||||
January 22, 2014 | $ | 9.7 | January 22, 2016 | 1,000,000 | ||||||
2,186,362 | ||||||||||
The warrants issued in June 2008 and January 2014 are Participating Securities. The warrant holders do not have a contractual obligation to share in our losses. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
FAIR VALUE MEASUREMENTS | ||||||||||||||||
The following table sets forth the fair value of our financial assets and liabilities that were measured and recorded on a recurring basis as of March 31, 2014 and December 31, 2013. We did not have any financial liabilities that were measured and recorded on a recurring basis or Level 3 investments as of December 31, 2013. The amounts presented exclude cash, but include investments classified as cash equivalents (in thousands): | ||||||||||||||||
March 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets: | ||||||||||||||||
Money market funds | $ | 71,150 | $ | — | $ | — | $ | 71,150 | ||||||||
Commercial paper | — | 103,273 | — | 103,273 | ||||||||||||
Corporate bonds | — | 208,348 | — | 208,348 | ||||||||||||
U.S. Treasury and government sponsored enterprises | — | 21,488 | — | 21,488 | ||||||||||||
Municipal bonds | — | 2,756 | — | 2,756 | ||||||||||||
Total financial assets | $ | 71,150 | $ | 335,865 | $ | — | $ | 407,015 | ||||||||
Financial liabilities: | ||||||||||||||||
Warrants | $ | — | $ | — | $ | 1,022 | $ | 1,022 | ||||||||
Total financial liabilities | $ | — | $ | — | $ | 1,022 | $ | 1,022 | ||||||||
December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Total | ||||||||||||||
Money market funds | $ | 24,813 | $ | — | $ | 24,813 | ||||||||||
Commercial paper | — | 94,682 | 94,682 | |||||||||||||
Corporate bonds | — | 240,072 | 240,072 | |||||||||||||
U.S. Treasury and government sponsored enterprises | — | 44,386 | 44,386 | |||||||||||||
Municipal bonds | — | 6,013 | 6,013 | |||||||||||||
Total financial assets | $ | 24,813 | $ | 385,153 | $ | 409,966 | ||||||||||
There were no transfers between any of the fair value hierarchies, as determined at the end of each reporting period. | ||||||||||||||||
The estimated fair values of our financial instruments that are carried at amortized cost for which it is practicable to determine a fair value were as follows (in thousands): | ||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
2019 Notes | $ | 169,415 | $ | 255,731 | $ | 165,296 | $ | 339,883 | ||||||||
Silicon Valley Bank term loan | $ | 80,000 | $ | 79,900 | $ | 80,000 | $ | 79,946 | ||||||||
Silicon Valley Bank line of credit | $ | 1,611 | $ | 1,611 | $ | 2,090 | $ | 2,090 | ||||||||
We believe it is not practicable to determine the fair value of the Deerfield Notes due to the unique structure of the instrument that was financed by entities affiliated with Deerfield. | ||||||||||||||||
The carrying amounts of cash, trade and other receivables, accounts payable and accrued clinical trial liabilities approximate their fair values and are excluded from the tables above. | ||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate a value: | ||||||||||||||||
• | When available, we value investments based on quoted prices for those financial instruments, which is a Level 1 input. Our remaining investments are valued using third-party pricing sources, which use observable market prices, interest rates and yield curves observable at commonly quoted intervals of similar assets as observable inputs for pricing, which is a Level 2 input. | |||||||||||||||
• | The 2019 Notes are valued using a third-party pricing model that is based in part on average trading prices, which is a Level 2 input. The 2019 Notes are not marked-to-market and are shown at their initial fair value less the unamortized discount; the portion of the value allocated to the conversion option is included in Stockholders’ equity on the accompanying Consolidated Balance Sheets. | |||||||||||||||
• | We estimate the fair value of our other debt instruments, where possible, using the net present value of the payments discounted at an interest rate that is consistent with money-market rates that would have been earned on our non-interest-bearing compensating balances, which is a Level 2 input. | |||||||||||||||
• | The 2014 Deerfield Warrants are valued using a Monte Carlo simulation model. The expected life is based on the contractual terms of the 2014 Deerfield Warrants, and in certain simulations, assumes the two year extension that would result from our exercise of the Extension Option. We consider implied volatility as well as our historical volatility in developing our estimate of expected volatility. The fair value of the 2014 Deerfield Warrants were estimated using the following assumptions, which, except for risk-free interest rate, are Level 3 inputs (dollars in thousands): | |||||||||||||||
22-Jan-14 | ||||||||||||||||
31-Mar-14 | (issuance date) | |||||||||||||||
Fair value of warrants | $ | 1,022 | $ | 2,762 | ||||||||||||
Risk-free interest rate | 0.98 | % | 0.95 | % | ||||||||||||
Dividend yield | — | % | — | % | ||||||||||||
Volatility | 84 | % | 57 | % | ||||||||||||
Average expected life | 3.0 years | 3.2 years | ||||||||||||||
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Stock-Based Compensation | ' | ||||||||||||
STOCK-BASED COMPENSATION | |||||||||||||
We recorded and allocated employee stock-based compensation expenses for our equity incentive plans and our 2000 Employee Stock Purchase Plan (“ESPP”) as follows (in thousands): | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Research and development expense | $ | 1,565 | $ | 1,407 | |||||||||
Selling, general and administrative expense | 2,193 | 1,268 | |||||||||||
Total employee stock-based compensation expense | $ | 3,758 | $ | 2,675 | |||||||||
We use the Black-Scholes option pricing model to value our stock options. The expected life computation is based on historical exercise patterns and post-vesting termination behavior. We considered implied volatility as well as our historical volatility in developing our estimate of expected volatility. The fair value of employee stock option awards and ESPP purchases was estimated using the following assumptions and weighted average fair values: | |||||||||||||
Stock Options | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Weighted average grant-date fair value | $ | 4.7 | $ | 2.45 | |||||||||
Risk-free interest rate | 1.59 | % | 0.78 | % | |||||||||
Dividend yield | — | % | — | % | |||||||||
Volatility | 81 | % | 62 | % | |||||||||
Expected life | 5.5 years | 5.2 years | |||||||||||
Employee Stock Purchase Plan | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Weighted average grant-date fair value | $ | 1.59 | $ | 1.59 | |||||||||
Risk-free interest rate | 0.08 | % | 0.15 | % | |||||||||
Dividend yield | — | % | — | % | |||||||||
Volatility | 62 | % | 67 | % | |||||||||
Expected life | 6 months | 6 months | |||||||||||
Of the stock options outstanding as of March 31, 2014, 3,720,752 were granted subject to performance objectives tied to the achievement of goals set by the Compensation Committee of our Board of Directors and will vest in full or part based on achievement of such goals. As of March 31, 2014, we expect that achievement of some of those performance objectives is probable and have, therefore, recorded for stock-based compensation expense in connection with such awards. We have not included any stock-based compensation expense for stock options with performance objectives where the performance goals cannot be reasonably assured of achievement; the grant date fair value of such awards was $6.9 million. | |||||||||||||
A summary of all stock option activity for the three months ended March 31, 2014 is presented below (dollars in thousands, except per share amounts): | |||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise Price | Remaining Contractual | Value | |||||||||||
Term (Years) | |||||||||||||
Options outstanding at December 31, 2013 | 23,983,275 | $ | 6.48 | ||||||||||
Granted | 626,290 | $ | 6.96 | ||||||||||
Exercised | (19,090 | ) | $ | 6.28 | |||||||||
Forfeited | (5,979 | ) | $ | 5.73 | |||||||||
Expired | (352,342 | ) | $ | 7.75 | |||||||||
Options outstanding at March 31, 2014 | 24,232,154 | $ | 6.47 | 4.46 | $ | 2 | |||||||
Exercisable at March 31, 2014 | 14,057,195 | $ | 7.12 | 3.35 | $ | 2 | |||||||
As of March 31, 2014, $26.6 million of total unrecognized compensation expense related to employee stock options was expected to be recognized over a weighted-average period of 2.52 years. | |||||||||||||
A summary of all restricted stock unit (“RSU”) activity for the three months ended March 31, 2014 is presented below (dollars in thousands, except per share amounts): | |||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Grant Date | Remaining | Value | |||||||||||
Fair Value | Contractual | ||||||||||||
Term (Years) | |||||||||||||
Awards outstanding at December 31, 2013 | 1,810,521 | $ | 5.56 | ||||||||||
Awarded | 32,096 | $ | 6.77 | ||||||||||
Released | (81,590 | ) | $ | 7.11 | |||||||||
Forfeited | (14,687 | ) | $ | 5.56 | |||||||||
Awards outstanding at March 31, 2014 | 1,746,340 | $ | 5.51 | 3.18 | $ | 5,903 | |||||||
As of March 31, 2014, $6.7 million of total unrecognized compensation expense related to employee RSUs was expected to be recognized over a weighted-average period of 3.18 years. |
Net_Loss_Per_Share
Net Loss Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Net Loss Per Share | ' | |||||||
NET LOSS PER SHARE | ||||||||
The following table sets forth a reconciliation of basic and diluted net loss per share (in thousands, except per share amounts): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net loss | $ | (74,619 | ) | $ | (44,729 | ) | ||
Denominator: | ||||||||
Shares used in computing basic and diluted net loss per share | 191,699 | 183,742 | ||||||
Net loss per share, basic and diluted | $ | (0.39 | ) | $ | (0.24 | ) | ||
The following table sets forth outstanding potential shares of common stock that are not included in the computation of diluted net loss per share because, to do so would be anti-dilutive (in thousands): | ||||||||
31-Mar | ||||||||
2014 | 2013 | |||||||
Convertible debt | 54,123 | 54,123 | ||||||
Outstanding stock options, unvested RSUs and ESPP contributions | 26,302 | 18,181 | ||||||
Warrants | 2,186 | 1,441 | ||||||
Total potentially dilutive shares | 82,611 | 73,745 | ||||||
Concentrations_of_Credit_Risk
Concentrations of Credit Risk | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Risks and Uncertainties [Abstract] | ' | |||||
Concentrations of Credit Risk | ' | |||||
CONCENTRATIONS OF CREDIT RISK | ||||||
Financial instruments that potentially subject us to concentrations of credit risk are primarily trade and other receivables and investments. Investments consist of money market funds, taxable commercial paper, corporate bonds with high credit quality, U.S. Treasury and government sponsored enterprises, and municipal bonds. All investments are maintained with financial institutions that management believes are creditworthy. | ||||||
Trade and other receivables are unsecured and are concentrated in the pharmaceutical and biotechnology industries. Accordingly, we may be exposed to credit risk generally associated with pharmaceutical and biotechnology companies. We have incurred no bad debt expense since inception. As of March 31, 2014, 70% of our trade receivables are with the specialty pharmacy that sells COMETRIQ in the United States and 6% are with our European distribution partner. Both of these customers pay promptly and within their respective payment terms. | ||||||
We have operations primarily in the United States, while some of our collaboration partners have headquarters outside of the United States and certain of our clinical trials for cabozantinib are conducted outside of the United States. During the three months ended March 31, 2013, 100% of our revenues were earned in the United States. During the second quarter of 2013, we initiated a Named Patient Use (“NPU”) program through our distribution partner, Swedish Orphan Biovitrum, to support the distribution and commercialization of COMETRIQ for metastatic MTC primarily in the European Union and potentially other countries. During the three months ended March 31, 2014, 98%, of our revenues were earned in the United States; the remainder of our revenues were earned in the European Union under this NPU program. All of our long-lived assets are located in the United States. | ||||||
The following table sets forth the percentage of revenues recognized under our collaboration agreements and product sales to the specialty pharmacy that represent 10% or more of total revenues during the three months ended March 31, 2014 and 2013: | ||||||
Three Months Ended March 31, | ||||||
2014 | 2013 | |||||
Collaboration agreement: | ||||||
Bristol-Myers Squibb | — | % | 81 | % | ||
Product sales: | ||||||
Diplomat Specialty Pharmacy | 98 | % | 19 | % |
Organization_and_Summary_of_Si1
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization | ' |
Organization | |
Exelixis, Inc. (“Exelixis,” “we,” “our” or “us”) is a biopharmaceutical company committed to developing small molecule therapies for the treatment of cancer. Our two most advanced assets, COMETRIQ® (cabozantinib), our wholly-owned inhibitor of multiple receptor tyrosine kinases, and cobimetinib (GDC-0973/XL518), a potent, highly selective inhibitor of MEK, which we out-licensed to Genentech, Inc. (a member of the Roche Group) (“Genentech”), are currently the subject of six ongoing phase 3 pivotal trials. | |
We are focusing our development and commercialization efforts primarily on COMETRIQ (cabozantinib), which was approved by the U.S. Food and Drug Administration (“FDA”) on November 29, 2012, for the treatment of progressive, metastatic medullary thyroid cancer (“MTC”) in the United States, where it became commercially available in late January 2013. In March 2014, the European Commission approved COMETRIQ for the treatment of adult patients with progressive, unresectable locally advanced or metastatic MTC. The European Commission granted conditional marketing authorization following a positive opinion from the European Committee for Medicinal Products for Human Use (“CHMP”) issued in December 2013. | |
Basis of Consolidation | ' |
Basis of Consolidation | |
The consolidated financial statements include the accounts of Exelixis and those of our wholly-owned subsidiaries. These entities’ functional currency is the U.S. dollar. All intercompany balances and transactions have been eliminated. | |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results of operations and cash flows for the period presented have been included. | |
Exelixis adopted a 52- or 53-week fiscal year that generally ends on the Friday closest to December 31st. Fiscal year 2013, a 52-week year, ended on December 27, 2013, and fiscal year 2014, a 53-week year, will end on January 2, 2015. For convenience, references in this report as of and for the fiscal quarters ended March 29, 2013 and March 28, 2014, and as of the fiscal year ended December 27, 2013, are indicated as ended March 31, 2013, March 31, 2014, and December 31, 2013, respectively. | |
Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending January 2, 2015 or for any future period. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2013, included in our Annual Report on Form 10-K filed with the SEC on February 20, 2014. | |
Fiscal Period, Policy | ' |
Exelixis adopted a 52- or 53-week fiscal year that generally ends on the Friday closest to December 31st. Fiscal year 2013, a 52-week year, ended on December 27, 2013, and fiscal year 2014, a 53-week year, will end on January 2, 2015. For convenience, references in this report as of and for the fiscal quarters ended March 29, 2013 and March 28, 2014, and as of the fiscal year ended December 27, 2013, are indicated as ended March 31, 2013, March 31, 2014, and December 31, 2013, respectively. | |
Segment Information | ' |
Segment Information | |
We operate as a single reportable segment. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of our consolidated financial statements is in conformity with accounting principles generally accepted in the United States which requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. On an ongoing basis, management evaluates its estimates including, but not limited to, those related to inventory, revenue recognition, valuation of long-lived assets, certain accrued liabilities including clinical trial accruals and restructuring liability, valuation of warrants, share-based compensation and the valuation of the debt and equity components of our convertible debt at issuance. We base our estimates on historical experience and on various other market-specific and other relevant assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. | |
Revenue Recognition | ' |
Revenue Recognition | |
We recognize revenue from the sale of COMETRIQ and from license fees and milestones earned on research and collaboration arrangements. See “Note 1 - Organization and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a description of our policies for revenue recognition on research and collaboration agreements. We did not enter into any new collaboration agreements during the three months ended March 31, 2014. See “Note 2 - Research and Collaboration Agreements” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a description of our existing collaboration agreements. | |
Net Product Revenues | |
We recognize revenue when it is both realized or realizable and earned, meaning persuasive evidence of an arrangement exists, delivery has occurred, title has transferred, the price is fixed or determinable, there are no remaining customer acceptance requirements, and collectability of the resulting receivable is reasonably assured. For product sales in the United States, this generally occurs upon shipment of the product to the patient by our distributor. For product sales in Europe, this occurs when our European distribution partner has accepted the product. | |
We sell our product, COMETRIQ, in the United States to a specialty pharmacy that benefits from customer incentives and has a right of return. We have a limited sales history and cannot reliably estimate expected returns of the product nor the discounts and rebates due to payors at the time of shipment to the specialty pharmacy. Accordingly, upon shipment to the specialty pharmacy, we record deferred revenue on our Consolidated Balance Sheets. We recognize revenue when the specialty pharmacy provides the product to a patient based on the fulfillment of a prescription. We record revenue using an analysis of prescription data from our specialty pharmacy to ascertain the date of shipment and the payor mix. This approach is frequently referred to as the “sell-through” revenue recognition model. Once the prescription has been provided to the patient, it is not subject to return unless the product is damaged. | |
Product sales to our European distribution partner are generally not subject to customer incentives, rights of return or discounts and allowances. We record revenue at the time our European distribution partner has accepted the product, a method also known as the “sell-in” revenue recognition model. | |
Product Sales Discounts and Allowances | |
We calculate gross product revenues based on the price that we charge our United States specialty pharmacy and our European distribution partner. We estimate our net product revenues by deducting from our gross product revenues (a) trade allowances, such as discounts for prompt payment, (b) estimated government rebates and chargebacks, and (c) estimated costs of patient assistance programs. We initially record estimates for these deductions at the time we recognize the gross revenue. We update our estimates on a recurring basis as new information becomes available. These discounts and allowances apply only to gross product revenues earned in the United States. See “Note 1 - Organization and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a further description of those discounts and allowances. | |
Cost of Goods Sold | ' |
Cost of Goods Sold | |
Cost of goods sold is related to our product revenues and consisted primarily of a 3% royalty and indirect labor costs, and to a lesser extent, the cost of manufacturing and other third party logistics costs of our product. A significant portion of the manufacturing costs for product sales were incurred prior to regulatory approval of COMETRIQ for the treatment of progressive, metastatic MTC and, therefore, were expensed as research and development costs when those costs were incurred, rather than capitalized as inventory. | |
In accordance with our product development and commercialization agreement with GlaxoSmithKline, we are required to pay GlaxoSmithKline a 3% royalty on the Net Sales of any product incorporating cabozantinib, including COMETRIQ. Net Sales is defined in the product development and commercialization agreement generally as the gross invoiced sales price less customer credits, rebates, chargebacks, shipping costs, customs duties, and sales tax and other similar tax payments we are required to make. |
Restructurings_Tables
Restructurings (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Restructuring Charges [Abstract] | ' | ||||||||||||
Summary Of Components Of Restructuring Liability | ' | ||||||||||||
The components and changes of these liabilities during the annual periods from inception of the restructuring activities through the year ended December 31, 2013 and during the three months ended March 31, 2014 are summarized in the following table (in thousands): | |||||||||||||
Facility | Other | Total | |||||||||||
Charges | |||||||||||||
Restructuring liability as of December 31, 2012 | $ | 19,202 | $ | 20 | $ | 19,222 | |||||||
Restructuring charge | 662 | 569 | 1,231 | ||||||||||
Cash payments | (6,331 | ) | (434 | ) | (6,765 | ) | |||||||
Adjustments or non-cash credits including stock compensation expense | (73 | ) | (238 | ) | (311 | ) | |||||||
Proceeds from sale of assets | — | 95 | 95 | ||||||||||
Restructuring liability as of December 31, 2013 | 13,460 | 12 | 13,472 | ||||||||||
Restructuring charge (credit) | 159 | (113 | ) | 46 | |||||||||
Cash payments | (1,403 | ) | (6 | ) | (1,409 | ) | |||||||
Adjustments or non-cash credits | 9 | (86 | ) | (77 | ) | ||||||||
Proceeds from sale of assets | — | 199 | 199 | ||||||||||
Restructuring liability as of March 31, 2014 | $ | 12,225 | $ | 6 | $ | 12,231 | |||||||
Cash_and_Investments_Cash_and_
Cash and Investments Cash and Investments (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||
Schedule of Available-for-Sale Securities | ' | |||||||||||||||
The following table summarizes cash and cash equivalents, investments, and restricted cash and investments by balance sheet line item as of March 31, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
March 31, 2014 | ||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Cash and cash equivalents | $ | 157,538 | $ | 1 | $ | — | $ | 157,539 | ||||||||
Short-term investments | 115,931 | 119 | (17 | ) | 116,033 | |||||||||||
Short-term restricted cash and investments | 12,142 | 66 | — | 12,208 | ||||||||||||
Long-term investments | 111,110 | 54 | (9 | ) | 111,155 | |||||||||||
Long-term restricted cash and investments | 10,768 | 46 | — | 10,814 | ||||||||||||
Total cash and investments | $ | 407,489 | $ | 286 | $ | (26 | ) | $ | 407,749 | |||||||
December 31, 2013 | ||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Cash and cash equivalents | $ | 103,978 | $ | — | $ | — | $ | 103,978 | ||||||||
Short-term investments | 138,403 | 94 | (22 | ) | 138,475 | |||||||||||
Short-term restricted cash and investments | 12,173 | 40 | — | 12,213 | ||||||||||||
Long-term investments | 144,226 | 106 | (33 | ) | 144,299 | |||||||||||
Long-term restricted cash and investments | 16,837 | 60 | — | 16,897 | ||||||||||||
Total cash and investments | $ | 415,617 | $ | 300 | $ | (55 | ) | $ | 415,862 | |||||||
Summary of Cash and Investments by Security Type | ' | |||||||||||||||
The amounts presented exclude cash, but include investments classified as cash equivalents (in thousands): | ||||||||||||||||
March 31, 2014 | ||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Money market funds | $ | 71,150 | $ | — | $ | — | $ | 71,150 | ||||||||
Commercial paper | 103,273 | — | — | 103,273 | ||||||||||||
Corporate bonds | 208,208 | 166 | (26 | ) | 208,348 | |||||||||||
U.S. Treasury and government sponsored enterprises | 21,372 | 116 | — | 21,488 | ||||||||||||
Municipal bonds | 2,752 | 4 | — | 2,756 | ||||||||||||
Total investments | $ | 406,755 | $ | 286 | $ | (26 | ) | $ | 407,015 | |||||||
December 31, 2013 | ||||||||||||||||
Amortized | Gross | Gross | Fair Value | |||||||||||||
Cost | Unrealized | Unrealized | ||||||||||||||
Gains | Losses | |||||||||||||||
Money market funds | $ | 24,813 | $ | — | $ | — | $ | 24,813 | ||||||||
Commercial paper | 94,682 | — | — | 94,682 | ||||||||||||
Corporate bonds | 239,937 | 190 | (55 | ) | 240,072 | |||||||||||
U.S. Treasury and government sponsored enterprises | 44,284 | 102 | — | 44,386 | ||||||||||||
Municipal bonds | 6,005 | 8 | 6,013 | |||||||||||||
Total investments | $ | 409,721 | $ | 300 | $ | (55 | ) | $ | 409,966 | |||||||
Summary of Available-for-Sale Securities by Contractual Maturity | ' | |||||||||||||||
The following summarizes the fair value of securities classified as available-for-sale by contractual maturity as of March 31, 2014 (in thousands): | ||||||||||||||||
Mature within One Year | After One Year through Two Years | Fair Value | ||||||||||||||
Money market funds | $ | 71,150 | $ | — | $ | 71,150 | ||||||||||
Commercial paper | 103,273 | — | 103,273 | |||||||||||||
Corporate bonds | 168,772 | 39,576 | 208,348 | |||||||||||||
U.S. Treasury and government sponsored enterprises | 15,400 | 6,088 | 21,488 | |||||||||||||
Municipal bonds | — | 2,756 | 2,756 | |||||||||||||
Total investments | $ | 358,595 | $ | 48,420 | $ | 407,015 | ||||||||||
Inventory_Tables
Inventory (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory | ' | |||||||
Inventory consists of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Raw materials | $ | 678 | $ | 529 | ||||
Work in process | 1,665 | 2,280 | ||||||
Finished goods | 343 | 81 | ||||||
Total | $ | 2,686 | $ | 2,890 | ||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule Of Debt | ' | |||||||
The amortized carrying amount of our debt consists of the following (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Convertible Senior Subordinated Notes due 2019 | $ | 169,415 | $ | 165,296 | ||||
Secured Convertible Notes due 2015 | 91,993 | 99,851 | ||||||
Silicon Valley Bank term loan | 80,000 | 80,000 | ||||||
Silicon Valley Bank line of credit | 1,611 | 2,090 | ||||||
Total debt | 343,019 | 347,237 | ||||||
Less: current portion | (1,392 | ) | (11,762 | ) | ||||
Long-term debt | $ | 341,627 | $ | 335,475 | ||||
Summary Of The Liability Component Of The 2019 Notes | ' | |||||||
The following is a summary of the liability component of the 2019 Notes (in thousands): | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
Net carrying amount of the liability component | $ | 169,415 | $ | 165,296 | ||||
Unamortized discount of the liability component | 118,085 | 122,204 | ||||||
Face amount of the 2019 Notes | $ | 287,500 | $ | 287,500 | ||||
Common_Stock_And_Warrants_Tabl
Common Stock And Warrants (Tables) | 3 Months Ended | |||||||||
Mar. 31, 2014 | ||||||||||
Warrants and Rights Note Disclosure [Abstract] | ' | |||||||||
Schedule Of Warrants To Purchase Common Stock Outstanding And Exercisable | ' | |||||||||
At March 31, 2014, the following warrants to purchase common stock were outstanding and exercisable: | ||||||||||
Date Issued | Exercise | Expiration Date | Number | |||||||
Price per Share | of Shares | |||||||||
June 4, 2008 | $ | 7.4 | June 4, 2014 | 1,000,000 | ||||||
June 10, 2009 | $ | 6.05 | June 10, 2014 | 186,362 | ||||||
January 22, 2014 | $ | 9.7 | January 22, 2016 | 1,000,000 | ||||||
2,186,362 | ||||||||||
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2014 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Schedule Of Fair Value Of Financial Assets Measured On A Recurring Basis | ' | |||||||||||||||
The amounts presented exclude cash, but include investments classified as cash equivalents (in thousands): | ||||||||||||||||
March 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Financial assets: | ||||||||||||||||
Money market funds | $ | 71,150 | $ | — | $ | — | $ | 71,150 | ||||||||
Commercial paper | — | 103,273 | — | 103,273 | ||||||||||||
Corporate bonds | — | 208,348 | — | 208,348 | ||||||||||||
U.S. Treasury and government sponsored enterprises | — | 21,488 | — | 21,488 | ||||||||||||
Municipal bonds | — | 2,756 | — | 2,756 | ||||||||||||
Total financial assets | $ | 71,150 | $ | 335,865 | $ | — | $ | 407,015 | ||||||||
Financial liabilities: | ||||||||||||||||
Warrants | $ | — | $ | — | $ | 1,022 | $ | 1,022 | ||||||||
Total financial liabilities | $ | — | $ | — | $ | 1,022 | $ | 1,022 | ||||||||
December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Total | ||||||||||||||
Money market funds | $ | 24,813 | $ | — | $ | 24,813 | ||||||||||
Commercial paper | — | 94,682 | 94,682 | |||||||||||||
Corporate bonds | — | 240,072 | 240,072 | |||||||||||||
U.S. Treasury and government sponsored enterprises | — | 44,386 | 44,386 | |||||||||||||
Municipal bonds | — | 6,013 | 6,013 | |||||||||||||
Total financial assets | $ | 24,813 | $ | 385,153 | $ | 409,966 | ||||||||||
Schedule Of Estimated Fair Value Of Outstanding Debt | ' | |||||||||||||||
The estimated fair values of our financial instruments that are carried at amortized cost for which it is practicable to determine a fair value were as follows (in thousands): | ||||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | |||||||||||||||
2019 Notes | $ | 169,415 | $ | 255,731 | $ | 165,296 | $ | 339,883 | ||||||||
Silicon Valley Bank term loan | $ | 80,000 | $ | 79,900 | $ | 80,000 | $ | 79,946 | ||||||||
Silicon Valley Bank line of credit | $ | 1,611 | $ | 1,611 | $ | 2,090 | $ | 2,090 | ||||||||
Schedule of Assumptions Used | ' | |||||||||||||||
The fair value of the 2014 Deerfield Warrants were estimated using the following assumptions, which, except for risk-free interest rate, are Level 3 inputs (dollars in thousands): | ||||||||||||||||
22-Jan-14 | ||||||||||||||||
31-Mar-14 | (issuance date) | |||||||||||||||
Fair value of warrants | $ | 1,022 | $ | 2,762 | ||||||||||||
Risk-free interest rate | 0.98 | % | 0.95 | % | ||||||||||||
Dividend yield | — | % | — | % | ||||||||||||
Volatility | 84 | % | 57 | % | ||||||||||||
Average expected life | 3.0 years | 3.2 years | ||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Share-based Compensation [Abstract] | ' | ||||||||||||
Schedule Of Allocated Employee Stock-Based Compensation Expenses | ' | ||||||||||||
We recorded and allocated employee stock-based compensation expenses for our equity incentive plans and our 2000 Employee Stock Purchase Plan (“ESPP”) as follows (in thousands): | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Research and development expense | $ | 1,565 | $ | 1,407 | |||||||||
Selling, general and administrative expense | 2,193 | 1,268 | |||||||||||
Total employee stock-based compensation expense | $ | 3,758 | $ | 2,675 | |||||||||
Schedule Of Fair Value Of Employee Share-Based Payments Awards Estimated Using The Assumptions And Weighted Average Fair Values | ' | ||||||||||||
The fair value of employee stock option awards and ESPP purchases was estimated using the following assumptions and weighted average fair values: | |||||||||||||
Stock Options | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Weighted average grant-date fair value | $ | 4.7 | $ | 2.45 | |||||||||
Risk-free interest rate | 1.59 | % | 0.78 | % | |||||||||
Dividend yield | — | % | — | % | |||||||||
Volatility | 81 | % | 62 | % | |||||||||
Expected life | 5.5 years | 5.2 years | |||||||||||
Employee Stock Purchase Plan | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Weighted average grant-date fair value | $ | 1.59 | $ | 1.59 | |||||||||
Risk-free interest rate | 0.08 | % | 0.15 | % | |||||||||
Dividend yield | — | % | — | % | |||||||||
Volatility | 62 | % | 67 | % | |||||||||
Expected life | 6 months | 6 months | |||||||||||
Summary Of All Stock Option Activity | ' | ||||||||||||
A summary of all stock option activity for the three months ended March 31, 2014 is presented below (dollars in thousands, except per share amounts): | |||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Exercise Price | Remaining Contractual | Value | |||||||||||
Term (Years) | |||||||||||||
Options outstanding at December 31, 2013 | 23,983,275 | $ | 6.48 | ||||||||||
Granted | 626,290 | $ | 6.96 | ||||||||||
Exercised | (19,090 | ) | $ | 6.28 | |||||||||
Forfeited | (5,979 | ) | $ | 5.73 | |||||||||
Expired | (352,342 | ) | $ | 7.75 | |||||||||
Options outstanding at March 31, 2014 | 24,232,154 | $ | 6.47 | 4.46 | $ | 2 | |||||||
Exercisable at March 31, 2014 | 14,057,195 | $ | 7.12 | 3.35 | $ | 2 | |||||||
Summary Of All RSU Activity | ' | ||||||||||||
A summary of all restricted stock unit (“RSU”) activity for the three months ended March 31, 2014 is presented below (dollars in thousands, except per share amounts): | |||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||
Average | Average | Intrinsic | |||||||||||
Grant Date | Remaining | Value | |||||||||||
Fair Value | Contractual | ||||||||||||
Term (Years) | |||||||||||||
Awards outstanding at December 31, 2013 | 1,810,521 | $ | 5.56 | ||||||||||
Awarded | 32,096 | $ | 6.77 | ||||||||||
Released | (81,590 | ) | $ | 7.11 | |||||||||
Forfeited | (14,687 | ) | $ | 5.56 | |||||||||
Awards outstanding at March 31, 2014 | 1,746,340 | $ | 5.51 | 3.18 | $ | 5,903 | |||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share [Abstract] | ' | |||||||
Schedule Of Reconciliation Of Basic And Diluted Net Income (Loss) Per Share | ' | |||||||
The following table sets forth a reconciliation of basic and diluted net loss per share (in thousands, except per share amounts): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
Numerator: | ||||||||
Net loss | $ | (74,619 | ) | $ | (44,729 | ) | ||
Denominator: | ||||||||
Shares used in computing basic and diluted net loss per share | 191,699 | 183,742 | ||||||
Net loss per share, basic and diluted | $ | (0.39 | ) | $ | (0.24 | ) | ||
Schedule Of Potential Shares Of Common Stock Not Included In Computation Of Diluted Net Loss Per Share | ' | |||||||
The following table sets forth outstanding potential shares of common stock that are not included in the computation of diluted net loss per share because, to do so would be anti-dilutive (in thousands): | ||||||||
31-Mar | ||||||||
2014 | 2013 | |||||||
Convertible debt | 54,123 | 54,123 | ||||||
Outstanding stock options, unvested RSUs and ESPP contributions | 26,302 | 18,181 | ||||||
Warrants | 2,186 | 1,441 | ||||||
Total potentially dilutive shares | 82,611 | 73,745 | ||||||
Concentrations_of_Credit_Risk_
Concentrations of Credit Risk (Tables) | 3 Months Ended | |||||
Mar. 31, 2014 | ||||||
Risks and Uncertainties [Abstract] | ' | |||||
Schedules of collaborators that represent 10% or more of total revenues | ' | |||||
The following table sets forth the percentage of revenues recognized under our collaboration agreements and product sales to the specialty pharmacy that represent 10% or more of total revenues during the three months ended March 31, 2014 and 2013: | ||||||
Three Months Ended March 31, | ||||||
2014 | 2013 | |||||
Collaboration agreement: | ||||||
Bristol-Myers Squibb | — | % | 81 | % | ||
Product sales: | ||||||
Diplomat Specialty Pharmacy | 98 | % | 19 | % |
Organization_and_Summary_of_Si2
Organization and Summary of Significant Accounting Policies (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
segment | ||
trial | ||
Operations [Line Items] | ' | ' |
Operating Cycle | '371 days | '364 days |
Number of trials in process | 6 | ' |
Number of operating segments | 1 | ' |
Glaxo Smith Kline [Member] | ' | ' |
Operations [Line Items] | ' | ' |
Percent of royalty on net sale | 3.00% | ' |
Minimum [Member] | ' | ' |
Operations [Line Items] | ' | ' |
Operating Cycle | '364 days | ' |
Maximum [Member] | ' | ' |
Operations [Line Items] | ' | ' |
Operating Cycle | '371 days | ' |
Restructurings_Narrative_Detai
Restructurings (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 49 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2012 | |
employee | restructuring | ||||
employee | |||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Number of restructurings implemented | ' | ' | ' | 5 | ' |
Aggregate reduction in headcount | 429 | ' | ' | 429 | ' |
Restructuring charge (credit) | $46,000 | $119,000 | $1,231,000 | $53,300,000 | ' |
Restructuring reserve | 12,231,000 | ' | 13,472,000 | 12,231,000 | 19,222,000 |
Expected additional payment for restructuring | 2,500,000 | ' | ' | ' | ' |
Restructuring reserve, settled with cash | 1,409,000 | ' | 6,765,000 | 36,600,000 | ' |
Proceeds from subtenants | ' | ' | ' | 11,300,000 | ' |
Proceeds from sale of property and equipment | 276,000 | 0 | ' | ' | ' |
Restructuring reserve, cash settlement net of proceeds | 1,200,000 | 2,400,000 | ' | ' | ' |
Facility Closing [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring charge (credit) | 159,000 | ' | 662,000 | 29,400,000 | ' |
Restructuring reserve | 12,225,000 | ' | 13,460,000 | 12,225,000 | 19,202,000 |
Restructuring reserve, settled with cash | 1,403,000 | ' | 6,331,000 | ' | ' |
Termination Benefits [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring charge (credit) | ' | ' | ' | 21,700,000 | ' |
Asset Impairment [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring charge (credit) | -100,000 | ' | ' | 2,200,000 | ' |
Proceeds from sale of property and equipment | ' | ' | ' | $2,900,000 | ' |
Restructurings_Summary_of_Comp
Restructurings (Summary of Components of Restructuring Liability) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 49 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring liability | $13,472 | $19,222 | $19,222 | ' |
Restructuring charge (credit) | 46 | 119 | 1,231 | 53,300 |
Cash payments | -1,409 | ' | -6,765 | -36,600 |
Adjustments or non-cash credits | -77 | ' | -311 | ' |
Proceeds from sale of assets | 199 | ' | 95 | ' |
Restructuring liability | 12,231 | ' | 13,472 | 12,231 |
Facility Charges [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring liability | 13,460 | 19,202 | 19,202 | ' |
Restructuring charge (credit) | 159 | ' | 662 | 29,400 |
Cash payments | -1,403 | ' | -6,331 | ' |
Adjustments or non-cash credits | 9 | ' | -73 | ' |
Proceeds from sale of assets | 0 | ' | 0 | ' |
Restructuring liability | 12,225 | ' | 13,460 | 12,225 |
Other [Member] | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Restructuring liability | 12 | 20 | 20 | ' |
Restructuring charge (credit) | -113 | ' | 569 | ' |
Cash payments | -6 | ' | -434 | ' |
Adjustments or non-cash credits | -86 | ' | -238 | ' |
Proceeds from sale of assets | 199 | ' | 95 | ' |
Restructuring liability | $6 | ' | $12 | $6 |
Cash_and_Investments_Cash_and_1
Cash and Investments Cash and Investments (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | |
account | |||
affiliate | |||
investment | |||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | $407,489,000 | ' | $415,617,000 |
Gross Unrealized Gains | 286,000 | ' | 300,000 |
Gross Unrealized Losses | -26,000 | ' | -55,000 |
Fair Value | 407,749,000 | ' | 415,862,000 |
Debt collateral, number of required investment accounts | 1 | ' | ' |
Debt collateral, number of affiliate banks | 1 | ' | ' |
Amortized Cost | 406,755,000 | ' | 409,721,000 |
Gross Unrealized Gains | 286,000 | ' | 300,000 |
Gross Unrealized Losses | -26,000 | ' | -55,000 |
Fair Value | 407,015,000 | ' | 409,966,000 |
Gain (loss) on sale of investments | 0 | 0 | ' |
Number of investments in an unrealized loss position, less than 1 year | 27 | ' | ' |
Unrealized loss position, less than 1 year | 39,500,000 | ' | ' |
Number of investments in an unrealized loss position, greater than 1 year | 0 | ' | ' |
Unrealized loss position, greater than 1 year | 0 | ' | ' |
Mature within One Year | 358,595,000 | ' | ' |
After One Year through Two Years | 48,420,000 | ' | ' |
Money market funds [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 71,150,000 | ' | 24,813,000 |
Gross Unrealized Gains | 0 | ' | 0 |
Gross Unrealized Losses | 0 | ' | 0 |
Fair Value | 71,150,000 | ' | 24,813,000 |
Mature within One Year | 71,150,000 | ' | ' |
After One Year through Two Years | 0 | ' | ' |
Commercial paper [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 103,273,000 | ' | 94,682,000 |
Gross Unrealized Gains | 0 | ' | 0 |
Gross Unrealized Losses | 0 | ' | 0 |
Fair Value | 103,273,000 | ' | 94,682,000 |
Mature within One Year | 103,273,000 | ' | ' |
After One Year through Two Years | 0 | ' | ' |
Corporate bonds [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 208,208,000 | ' | 239,937,000 |
Gross Unrealized Gains | 166,000 | ' | 190,000 |
Gross Unrealized Losses | -26,000 | ' | -55,000 |
Fair Value | 208,348,000 | ' | 240,072,000 |
Mature within One Year | 168,772,000 | ' | ' |
After One Year through Two Years | 39,576,000 | ' | ' |
U.S. Treasury and government sponsored enterprises [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 21,372,000 | ' | 44,284,000 |
Gross Unrealized Gains | 116,000 | ' | 102,000 |
Gross Unrealized Losses | 0 | ' | 0 |
Fair Value | 21,488,000 | ' | 44,386,000 |
Mature within One Year | 15,400,000 | ' | ' |
After One Year through Two Years | 6,088,000 | ' | ' |
Municipal bonds [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 2,752,000 | ' | 6,005,000 |
Gross Unrealized Gains | 4,000 | ' | 8,000 |
Gross Unrealized Losses | 0 | ' | ' |
Fair Value | 2,756,000 | ' | 6,013,000 |
Mature within One Year | 0 | ' | ' |
After One Year through Two Years | 2,756,000 | ' | ' |
Silicon Valley Bank Loan And Security Agreement [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Collateral balance | 83,200,000 | ' | 83,700,000 |
Cash and cash equivalents [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 157,538,000 | ' | 103,978,000 |
Gross Unrealized Gains | 1,000 | ' | 0 |
Gross Unrealized Losses | 0 | ' | 0 |
Fair Value | 157,539,000 | ' | 103,978,000 |
Short-term investments [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 115,931,000 | ' | 138,403,000 |
Gross Unrealized Gains | 119,000 | ' | 94,000 |
Gross Unrealized Losses | -17,000 | ' | -22,000 |
Fair Value | 116,033,000 | ' | 138,475,000 |
Short-term restricted cash and investments [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 12,142,000 | ' | 12,173,000 |
Gross Unrealized Gains | 66,000 | ' | 40,000 |
Gross Unrealized Losses | 0 | ' | 0 |
Fair Value | 12,208,000 | ' | 12,213,000 |
Long-term investments [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 111,110,000 | ' | 144,226,000 |
Gross Unrealized Gains | 54,000 | ' | 106,000 |
Gross Unrealized Losses | -9,000 | ' | -33,000 |
Fair Value | 111,155,000 | ' | 144,299,000 |
Long-term restricted cash and investments [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Amortized Cost | 10,768,000 | ' | 16,837,000 |
Gross Unrealized Gains | 46,000 | ' | 60,000 |
Gross Unrealized Losses | 0 | ' | 0 |
Fair Value | $10,814,000 | ' | $16,897,000 |
Inventory_Details
Inventory (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | ' | ' | |
Raw materials | $678 | $529 | |
Work in process | 1,665 | 2,280 | |
Finished goods | 343 | 81 | |
Total | $2,686 | $2,890 | [1] |
[1] | The condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited financial statements as of that date. |
Debt_Schedule_Of_Debt_Details
Debt (Schedule Of Debt) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Total debt | $343,019 | $347,237 |
Less: current portion | -1,392 | -11,762 |
Long-term debt | 341,627 | 335,475 |
Senior Subordinated Notes [Member] | Convertible Senior Subordinated Notes due 2019 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Convertible Debt | 169,415 | 165,296 |
Secured Debt [Member] | Deerfield Notes [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Convertible Debt | 91,993 | 99,851 |
Term Loan [Member] | Silicon Valley Bank term loan and Line of Credit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Silicon Valley Bank term loan | 80,000 | 80,000 |
Line of Credit [Member] | Silicon Valley Bank term loan and Line of Credit [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Silicon Valley Bank Line of Credit | $1,611 | $2,090 |
Debt_Narrative_Details
Debt (Narrative) (Details) (USD $) | Mar. 31, 2014 | Jan. 22, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Aug. 14, 2012 | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 22, 2014 | Dec. 31, 2013 | Jun. 30, 2010 | Jan. 22, 2014 | Jan. 22, 2014 |
Issued On January 22, 2014 [Member] | Issued On January 22, 2014 [Member] | Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] | Secured Convertible Notes Due June 2015 [Member] | Secured Convertible Notes Due June 2015 [Member] | Secured Convertible Notes Due June 2015 [Member] | Secured Convertible Notes Due June 2015 [Member] | Secured Convertible Notes Due June 2015 [Member] | Secured Convertible Notes Due June 2015 [Member] | Secured Convertible Notes Due June 2015 [Member] | ||
4.25% Convertible Senior Subordinated Notes due August 15, 2019 [Member] | 4.25% Convertible Senior Subordinated Notes due August 15, 2019 [Member] | 4.25% Convertible Senior Subordinated Notes due August 15, 2019 [Member] | 4.25% Convertible Senior Subordinated Notes due August 15, 2019 [Member] | Deerfield Financing [Member] | Deerfield Financing [Member] | Deerfield Financing [Member] | Deerfield Financing [Member] | Deerfield Financing [Member] | Deerfield Financing [Member] | Deerfield Financing [Member] | ||||
Coupon Interest [Member] | Payment-in-Kind Interest [Member] | |||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt, interest rate | ' | ' | ' | ' | ' | ' | 4.25% | ' | ' | ' | ' | ' | ' | ' |
Debt, principal amount | ' | ' | ' | $287,500,000 | ' | $287,500,000 | $287,500,000 | ' | ' | ' | ' | $124,000,000 | ' | ' |
Convertible debt | ' | ' | ' | 169,415,000 | ' | 165,296,000 | ' | 104,000,000 | ' | ' | 114,000,000 | ' | ' | ' |
Interest expense, debt | ' | ' | ' | 7,400,000 | 7,000,000 | ' | ' | 4,200,000 | 3,900,000 | ' | ' | ' | ' | ' |
Interest expense, coupon interest | ' | ' | ' | 3,100,000 | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of financing costs and discounts | ' | ' | ' | 4,300,000 | 3,900,000 | ' | ' | 2,700,000 | 2,400,000 | ' | ' | ' | ' | ' |
Balance of unamortized closing fees and expenses | ' | ' | ' | 3,800,000 | ' | 4,000,000 | ' | 3,600,000 | ' | ' | 1,400,000 | ' | ' | ' |
Principal eligible for extension option | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' |
Debt instrument, interest rate, stated percentage after extension option election | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | ' | ' | 7.50% | 7.50% |
Warrant period | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants outstanding | 2,186,362 | 1,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant exercise price (in dollars per warrant) | ' | 9.7 | 9.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,800,000 | ' | ' | ' | ' |
Debt_2019_Notes_Details
Debt (2019 Notes) (Details) (Senior Subordinated Notes [Member], 4.25% Convertible Senior Subordinated Notes due August 15, 2019 [Member], USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Aug. 14, 2012 |
Senior Subordinated Notes [Member] | 4.25% Convertible Senior Subordinated Notes due August 15, 2019 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Net carrying amount of the liability component | $169,415,000 | $165,296,000 | ' |
Unamortized discount of the liability component | 118,085,000 | 122,204,000 | ' |
Face amount | $287,500,000 | $287,500,000 | $287,500,000 |
Common_Stock_And_Warrants_Narr
Common Stock And Warrants (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |
Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Jan. 22, 2014 | Mar. 31, 2014 | |
Issued On January 22, 2014 [Member] | Issued On January 22, 2014 [Member] | ||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' |
Public offering of common stock | 10,000,000 | ' | ' | ' | ' |
Share price (dollars per share) | $8 | ' | ' | ' | ' |
Net proceeds from public offering | $75,600,000 | $75,646,000 | $0 | ' | ' |
Warrant period | ' | ' | ' | '2 years | ' |
Warrants outstanding | ' | 2,186,362 | ' | 1,000,000 | 1,000,000 |
Warrant exercise price (in dollars per warrant) | ' | ' | ' | 9.7 | 9.7 |
Warrant repricing terms on exercise of extension option | ' | ' | ' | 120.00% | ' |
Fair value of warrants | ' | ' | ' | 2,800,000 | 1,000,000 |
Unrealized gain on warrants | ' | ' | ' | ' | $1,700,000 |
Common_Stock_And_Warrants_Sche
Common Stock And Warrants (Schedule Of Warrants To Purchase Common Stock Outstanding And Exercisable) (Details) | 3 Months Ended | |
Mar. 31, 2014 | Jan. 22, 2014 | |
Class of Warrant or Right [Line Items] | ' | ' |
Number of Shares | 2,186,362 | ' |
Issued On June 4, 2008 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Exercise Price per Share | 7.4 | ' |
Expiration Date | '6/4/2014 | ' |
Number of Shares | 1,000,000 | ' |
Issued On June 10, 2009 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Exercise Price per Share | 6.05 | ' |
Expiration Date | '6/10/2014 | ' |
Number of Shares | 186,362 | ' |
Issued On January 22, 2014 [Member] | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' |
Exercise Price per Share | 9.7 | 9.7 |
Expiration Date | '1/22/2016 | ' |
Number of Shares | 1,000,000 | 1,000,000 |
Fair_Value_Measurements_Schedu
Fair Value Measurements (Schedule Of Fair Value Of Financial Assets Measured On A Recurring Basis) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | $407,015 | $409,966 |
Warrants | 1,022 | ' |
Total financial liabilities | 1,022 | ' |
Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 71,150 | 24,813 |
Warrants | 0 | ' |
Total financial liabilities | 0 | ' |
Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 335,865 | 385,153 |
Warrants | 0 | ' |
Total financial liabilities | 0 | ' |
Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 0 | ' |
Warrants | 1,022 | ' |
Total financial liabilities | 1,022 | ' |
Money market funds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 71,150 | 24,813 |
Money market funds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 71,150 | 24,813 |
Money market funds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 0 | 0 |
Money market funds [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 0 | ' |
Commercial paper [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 103,273 | 94,682 |
Commercial paper [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 0 | 0 |
Commercial paper [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 103,273 | 94,682 |
Commercial paper [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 0 | ' |
Corporate bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 208,348 | 240,072 |
Corporate bonds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 0 | 0 |
Corporate bonds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 208,348 | 240,072 |
Corporate bonds [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 0 | ' |
U.S. Treasury and government sponsored enterprises [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 21,488 | 44,386 |
U.S. Treasury and government sponsored enterprises [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 0 | 0 |
U.S. Treasury and government sponsored enterprises [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 21,488 | 44,386 |
U.S. Treasury and government sponsored enterprises [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 0 | ' |
Municipal bonds [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 2,756 | 6,013 |
Municipal bonds [Member] | Level 1 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 0 | 0 |
Municipal bonds [Member] | Level 2 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | 2,756 | 6,013 |
Municipal bonds [Member] | Level 3 [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Total fair value of financial assets | $0 | ' |
Fair_Value_Measurements_Schedu1
Fair Value Measurements (Schedule of Estimated Fair Value of Outstanding Debt) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount [Member] | Senior Subordinated Notes [Member] | 2019 Notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair values of financial instruments | $169,415 | $165,296 |
Carrying Amount [Member] | Term Loan [Member] | Silicon Valley Bank term loan and Line of Credit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair values of financial instruments | 80,000 | 80,000 |
Carrying Amount [Member] | Line of Credit [Member] | Silicon Valley Bank term loan and Line of Credit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair values of financial instruments | 1,611 | 2,090 |
Fair Value [Member] | Senior Subordinated Notes [Member] | 2019 Notes [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair values of financial instruments | 255,731 | 339,883 |
Fair Value [Member] | Term Loan [Member] | Silicon Valley Bank term loan and Line of Credit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair values of financial instruments | 79,900 | 79,946 |
Fair Value [Member] | Line of Credit [Member] | Silicon Valley Bank term loan and Line of Credit [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Fair values of financial instruments | $1,611 | $2,090 |
Fair_Value_Measurements_Schedu2
Fair Value Measurements (Schedule of Assumptions Used) (Details) (Issued On January 22, 2014 [Member], USD $) | 0 Months Ended | 3 Months Ended |
In Thousands, unless otherwise specified | Jan. 22, 2014 | Mar. 31, 2014 |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Warrant period | '2 years | ' |
Warrant liability [Member] | ' | ' |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ' | ' |
Fair value of warrants | $2,762 | $1,022 |
Risk-free interest rate | 0.95% | 0.98% |
Dividend yield | 0.00% | 0.00% |
Volatility | 57.00% | 84.00% |
Average expected life | '3 years 2 months 12 days | '3 years 0 months 7 days |
StockBased_Compensation_Schedu
Stock-Based Compensation (Schedule of Allocated Employee Stock-Based Compensation Expenses) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Total employee stock-based compensation expense | $3,758 | $2,675 |
Research and development expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Total employee stock-based compensation expense | 1,565 | 1,407 |
Selling, general and administrative expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Total employee stock-based compensation expense | $2,193 | $1,268 |
StockBased_Compensation_Schedu1
Stock-Based Compensation (Schedule of Fair Value of Employee Share-Based Payments Awards Estimated Using the Assumptions and Weighted Average Fair Values) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Stock Options [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average grant date fair value | $4.70 | $2.45 |
Risk-free interest rate | 1.59% | 0.78% |
Dividend yield | 0.00% | 0.00% |
Volatility | 81.00% | 62.00% |
Expected life | '5 years 6 months | '5 years 2 months 12 days |
Employee Stock Purchase Plan [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Weighted average grant date fair value | $1.59 | $1.59 |
Risk-free interest rate | 0.08% | 0.15% |
Dividend yield | 0.00% | 0.00% |
Volatility | 62.00% | 67.00% |
Expected life | '6 months | '6 months |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, except Share data, unless otherwise specified | Performance Stock Options [Member] | Performance Stock Options [Member] | Stock Options [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' |
Options outstanding, in shares | 24,232,154 | 23,983,275 | 3,720,752 | ' | ' | ' |
Grant date fair value | ' | ' | ' | $6.90 | ' | ' |
Unrecognized compensation expense | ' | ' | ' | ' | $26.60 | $6.70 |
Unrecognized compensation expense, weighted-average period for recognition (in years) | ' | ' | ' | ' | '2 years 6 months 7 days | '3 years 2 months 4 days |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of All Stock Option Activity) (Details) (USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Shares [Roll Forward] | ' |
Options outstanding at beginning of period, Shares | 23,983,275 |
Granted, Shares | 626,290 |
Exercised, Shares | -19,090 |
Forfeited, Shares | -5,979 |
Expired, Shares | -352,342 |
Options outstanding at end of period, Shares | 24,232,154 |
Exercisable at end of period, Shares | 14,057,195 |
Weighted Average Exercise Price [Roll Forward] | ' |
Options outstanding at beginning of period, Weighted Average Exercise Price | $6.48 |
Granted, Weighted Average Exercise Price | $6.96 |
Exercised, Weighted Average Exercise Price | $6.28 |
Forfeited, Weighted Average Exercise Price | $5.73 |
Expired, Weighted Average Exercise Price | $7.75 |
Options outstanding at end of period, Weighted Average Exercise Price | $6.47 |
Exercisable at end of period, Weighted Average Exercise Price | $7.12 |
Options outstanding at end of period, Weighted Average Remaining Contractual Term | '4 years 5 months 15 days |
Exercisable at end of period, Weighted Average Remaining Contractual Term | '3 years 4 months 6 days |
Options outstanding at end of period, Aggregate Intrinsic Value, in dollars | $2 |
Exercisable at end of period, Aggregate Intrinsic Value, in dollars | $2 |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary of All RSU Activity) (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Restricted Stock Units (RSUs) [Member] | ' |
Shares [Roll Forward] | ' |
RSUs outstanding at beginning of period, Shares | 1,810,521 |
Awarded, Shares | 32,096 |
Released, Shares | -81,590 |
Forfeited, Shares | -14,687 |
RSUs outstanding at end of period, Shares | 1,746,340 |
Weighted Average Grant DateFair Value [Roll Forward] | ' |
RSUs outstanding at beginning of period, Weighted Average Grant Date Fair Value | $5.56 |
Awarded, Weighted Average Grant Date Fair Value | $6.77 |
Released, Weighted Average Grant Date Fair Value | $7.11 |
Forfeited, Weighted Average Grant Date Fair Value | $5.56 |
RSUs outstanding at end of period, Weighted Average Grant Date Fair Value | $5.51 |
RSUs outstanding at end of period, Weighted Average Remaining Contractual Term | '3 years 2 months 4 days |
RSUs outstanding at end of period, Aggregate Intrinsic Value, in dollars | $5,903 |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Net loss, in dollars | ($74,619) | ($44,729) |
Shares used in computing basic and diluted net loss per share | 191,699 | 183,742 |
Net loss per share, basic and diluted, in dollars per share | ($0.39) | ($0.24) |
Potentially dilutive shares | 82,611 | 73,745 |
Convertible debt [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potentially dilutive shares | 54,123 | 54,123 |
Outstanding stock options, unvested RSUs and ESPP contributions [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potentially dilutive shares | 26,302 | 18,181 |
Warrants [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Potentially dilutive shares | 2,186 | 1,441 |
Concentrations_of_Credit_Risk_1
Concentrations of Credit Risk (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenue from Rights Concentration Risk [Member] | Accounts Receivable [Member] | European Distribution Partner [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 6.00% | ' |
Revenue from Rights Concentration Risk [Member] | Accounts Receivable [Member] | Diplomat Specialty Pharmacy [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 70.00% | ' |
Revenue from Rights Concentration Risk [Member] | Revenue, Rights Granted [Member] | Bristol-Myers Squibb [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 0.00% | 81.00% |
Revenue from Rights Concentration Risk [Member] | Revenue, Rights Granted [Member] | Diplomat Specialty Pharmacy [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 98.00% | 19.00% |
Geographic Concentration Risk [Member] | Sales [Member] | UNITED STATES | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 98.00% | 100.00% |