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Fair value of financial instruments and investments (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Schedule of financial assets and liabilities that are required to be measured at fair value on a recurring basis

The following represents the fair value using the hierarchy described in Note 2 for the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of December 31, 2018 and 2017:

		December 31, 2018
		Total				Quoted prices in active markets for identical assets (level 1)				Significant other observable inputs (level 2)				Significant unobservable inputs (level 3)
Marketable securities		$	58,088			$	—			$	58,088			$	—
Warrant liability		$	—			$	—			$	—			$	—
Stock appreciation rights liability		$	3,814			$	—			$	—			$	3,814
Deferred consideration payable		$	37,700			$	—			$	37,700			$	—
Contingent consideration payable- development and regulatory milestones		$	257,040			$	—			$	—			$	257,040
Contingent consideration payable- net sales milestones and royalties		$	53,200			$	—			$	—			$	53,200

		December 31, 2017
		Total				Quoted prices in active markets for identical assets (level 1)				Significant other observable inputs (level 2)				Significant unobservable inputs (level 3)
Marketable securities		$	79,454			$	—			$	79,454			$	—
Warrant Liability		$	1			$	—			$	—			$	1
Stock appreciation rights liability		$	1,665			$	—			$	—			$	1,665

Summary of marketable securities accounted for as available-for-sale securities

The following is a summary of marketable securities accounted for as available-for-sale securities at December 31, 2018 and 2017:

		December 31, 2018
		Amortized Cost				Gross Unrealized								Fair Value
													Gains					Losses
Commercial paper					$	31,657			$	43			$	(1	)			$	31,699
Corporate debt securities		26,399				—				(10		)		26,389
Total		$	58,056			$	43			$	(11	)		$	58,088

		December 31, 2017
		Amortized Cost				Gross Unrealized								Fair Value
													Gains					Losses
Commercial paper					$	13,775			$	52			$	—				$	13,827
Corporate debt securities		65,657				—				(30		)		65,627
Total		$	79,432			$	52			$	(30	)		$	79,454

Available-for-sale securities, continuous unrealized loss position, fair value

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2018 are as follows:

		December 31, 2018
		Securities in an unrealized loss position less than 12 months								Securities in an unrealized loss position greater than 12 months								Total
		Unrealized losses				Fair Value				Unrealized losses				Fair Value				Unrealized losses				Fair Value
Commercial Paper		$	(1	)		$	1,993			$	—			$	—			$	(1	)		$	1,993
Corporate debt securities		(7		)		14,230				(3		)		10,087				$	(10	)		$	24,317
Total		$	(8	)		$	16,223			$	(3	)		$	10,087			$	(11	)		$	26,310

The unrealized losses and fair values of available-for-sale securities that have been in an unrealized loss position for a period of less than and greater than 12 months as of December 31, 2017 are as follows:

		December 31, 2017
		Securities in an unrealized loss position less than 12 months								Securities in an unrealized loss position greater than 12 months								Total
		Unrealized losses				Fair Value				Unrealized losses				Fair Value				Unrealized losses				Fair Value
Corporate debt securities		$	(28	)		$	59,108			$	(2	)		$	6,519			$	(30	)		$	65,627

Schedule of marketable securities on the balance sheet

Marketable securities on the balance sheet at December 31, 2018 and 2017 mature as follows:

		December 31, 2018
		Less Than 12 Months				More Than 12 Months
Commercial paper		$	31,699			$	—
Corporate debt securities		26,389				—
Total Marketable securities		$	58,088			$	—

		December 31, 2017
		Less Than 12 Months				More Than 12 Months
Commercial paper		$	13,827			$	—
Corporate debt securities		55,550				10,077
Total Marketable securities		$	69,377			$	10,077

Fair value of the Company's Level 3 valuation for warrant liability

The following significant unobservable inputs were used in the valuation of the warrant liability, SARs liability, and the contingent consideration payable for the years ended December 31, 2018 and 2017:

		December 31, 2018
		Fair Value		Valuation Technique		Unobservable Input		Range
Warrants		—		Option-pricing model		Volatility		59.39% - 60.48%
						Risk free interest rate		2.6%
						Strike price		$128.00 - $2,520.00
						Fair value of common stock		$34.32
						Expected life		0.59 - 0.72 years
SARs		$3,814		Option-pricing model		Volatility		46.53% - 59.59%
						Risk free interest rate		2.44% - 2.63%
						Strike price		$6.76 - $30.86
						Fair value of common stock		$34.32
						Expected life		0.01 - 1.01 years
Contingent consideration payable- development and regulatory milestones		$257,040		Probability-adjusted discounted cash flow		Potential development and regulatory milestones		$0 - $555 million
						Probabilities of success		25% - 94%
						Discount rates		5.8% - 8.0%
						Projected years of payments		2020 - 2026
Contingent considerable payable- net sales milestones and royalties		$53,200		Option-pricing model with Monte Carlo simulation		Potential net sales milestones		$0 - $150 million
						Probabilities of success		25% - 89%
						Potential percentage of net sales for royalties		2% - 6%
						Discount rate		14.0%
						Projected years of payments		2021 - 2038

		December 31, 2017
		Fair Value		Valuation Technique		Unobservable Input		Range
Warrants		$1		Option-pricing model		Volatility		69%
						Risk free interest rate		$1.89
						Strike price		$128.00 - $2,520.00
						Fair value of common stock		$16.68
						Expected life		1.60 - 1.70 years
SARs		$1,665		Option-pricing model		Volatility		31% - 70%
						Risk free interest rate		1.28% - 1.89%
						Strike price		$6.76 - $30.86
						Fair value of common stock		$16.68
						Expected life		0.00 - 2.00 years

The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuation for the warrant liability, SARs liability, and the contingent consideration payable for the years ended December 31, 2018 and 2017:

		Level 3 liabilities
		Warrants				SARs				Contingent consideration payable- development and regulatory milestones				Contingent consideration payable- net sales milestones and royalties
Beginning balance as of December 31, 2016		$	1			$	865			$	—			$	—
Change in fair value		—				1,864				—				—
Payments		—				(1,064		)		—				—
Ending balance as of December 31, 2017		$	1			$	1,665			$	—			$	—
Additions		—				—				263,500				27,000
Change in fair value		(1		)		4,140				(6,460		)		26,200
Payments		—				(1,991		)		—				—
Ending balance as of December 31, 2018		$	—			$	3,814			$	257,040			$	53,200

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- Definition

Tabular disclosure of fair value amount of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale), in unrealized loss position.

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Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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