Revenue recognition (Tables)

12 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Contract liabilities, rollforward and revenue recognition

The following table presents changes in the Company’s contract liabilities from December 31, 2017 to December 31, 2018:



	Balance as of December 31, 2017		Additions		Deductions			ASC 606 Adjustment			Balance as of December 31, 2018
Deferred Revenue	$	11,891	$	6,417	$	(1,433	)	$	(3,937	)	$	12,938

The Company did not have any contract assets for the During the twelve months ended December 31, 2018.

During the twelve months ended December 31, 2018, the Company recognized revenue in the period from:



	December 31, 2018
Amounts included in contract liabilities at the beginning of the period	$	—
Performance obligations satisfied in previous period	—
Performance obligations satisfied in current period	263,005
Total product revenue	$	263,005

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The impact of adoption using the modified retrospective method on the Company’s consolidated financial statements is as follows:

i.Consolidated balance sheets



	Impact of changes in accounting policies
	As reported December 31, 2018			Adjustments			As reported Balances without adoption of Topic 606
Assets
Current assets:
Cash and cash equivalents	$	169,498		$	—		$	169,498
Marketable securities	58,088			—			58,088
Trade receivables, net	67,907			—			67,907
Inventory	16,117			(84		)	16,033
Prepaid expenses and other current assets	9,247			—			9,247
Total current assets	320,857			(84		)	320,773
Fixed assets, net	12,694			—			12,694
Intangible assets, net	701,031			—			701,031
Goodwill	82,341			—			82,341
Deposits and other assets	2,299			—			2,299
Total assets	$	1,119,222		$	(84	)	$	1,119,138
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable and accrued expenses	$	128,199		$	(2,120	)	$	126,079
Current portion of long-term debt	11,667			—			11,667
Deferred revenue	3,716			10,563			14,279
Other current liabilities	3,814			—			3,814
Deferred consideration payable- current	19,400			—			19,400
Total current liabilities	166,796			8,443			175,239
Deferred revenue - long-term	9,722			—			9,722
Long-term debt	141,347			—			141,347
Contingent consideration payable	310,240			—			310,240
Deferred consideration payable - long-term	18,300			—			18,300
Deferred tax liability	122,032			—			122,032
Other long-term liabilities	58			—			58
Total liabilities	768,495			8,443			776,938

Stockholders’ equity:
Common stock	51			—			51
Additional paid-in capital	1,288,137			—			1,288,137
Accumulated other comprehensive income	1,462			—			1,462
Accumulated deficit	(938,923		)	(8,527		)	(947,450		)
Total stockholders’ equity	350,727			(8,527		)	342,200
Total liabilities and stockholders’ equity	$	1,119,222		$	(84	)	$	1,119,138

Consolidated statements of operations



	Impact of changes in accounting policies Twelve Months Ended
	As reported for the period ended December 31, 2018			Adjustments			As reported Balances without adoption of Topic 606
Revenues:
Net product revenue	$	263,005		$	(5,177	)	$	257,828
Collaboration and grant revenue	1,729			—			1,729
Total revenues	264,734			(5,177		)	259,557
Operating expenses:
Cost of product sales, excluding amortization of acquired intangible asset	12,670			(84		)	12,586
Amortization of acquired intangible asset	22,877			—			22,877
Research and development	171,984			—			171,984
Selling, general and administrative	153,548			—			153,548
Change in the fair value of deferred and contingent consideration	19,340			—			19,340
Total operating expenses	380,419			(84		)	380,335
Loss from operations	(115,685		)	(5,093		)	(120,778		)
Interest expense, net	(12,554		)	—			(12,554		)
Other income, net	129			—			129
Loss before income tax expense	(128,110		)	(5,093		)	(133,203		)
Income tax benefit	29			—			29
Net loss attributable to common stockholders	$	(128,081	)	$	(5,093	)	$	(133,174	)

iii.Consolidated statements of comprehensive loss



	Impact of changes in accounting policies Twelve Months Ended
	As reported for the period ended December 31, 2018			Adjustments			As reported Balances without adoption of Topic 606
Net loss	$	(128,081	)	$	(5,093	)	$	(133,174	)
Other comprehensive loss:
Unrealized gain on marketable securities, net of tax	9			—			9
Foreign currency translation loss	(2,516		)	—			(2,516		)
Comprehensive loss	$	(130,588	)	$	(5,093	)	$	(135,681	)

iv.Consolidated statements of cash flows



	Impact of changes in accounting policies
	As reported for the period ended December 31, 2018			Adjustments			Balances without adoption of Topic 606
Cash flows from operating activities
Net loss	$	(128,081	)	$	(5,093	)	$	(133,174	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	26,087			—			26,087
Change in valuation of deferred and contingent consideration	19,340			—			19,340
Amortization of premiums on investments	(433		)	—			(433		)
Amortization of debt issuance costs	524			—			524
Share-based compensation expense	33,252			—			33,252
Non-cash interest expense	7,518			—			7,518
Disposal of asset	2			—			2
Unrealized foreign currency transaction (gains) losses, net	(59		)	—			(59		)
Changes in operating assets and liabilities:							0
Inventory, net	(5,823		)	(84		)	(5,907		)
Prepaid expenses and other current assets	(1,609		)	—			(1,609		)
Trade receivables, net	(29,589		)	—			(29,589		)
Deposits and other assets	(1,093		)	—			(1,093		)
Accounts payable and accrued expenses	43,877			(2,120		)	41,757
Other long-term liabilities	1,932			—			1,932
Deferred revenue	6,514			7,297			13,811
Net cash used in operating activities	(27,641		)	—			(27,641		)
Cash flows from investing activities
Purchases of fixed assets	(7,097		)	—			(7,097		)
Purchases of marketable securities	(68,614		)	—			(68,614		)
Sale & redemption of marketable securities	90,423			—			90,423
Acquisition of product rights	(8,433		)	—			(8,433		)
Business acquisition, net of cash acquired	(48,892		)	—			(48,892		)
Net cash used in investing activities	(42,613		)	—			(42,613		)
Cash flows from financing activities
Proceeds from exercise of options	10,868			—			10,868
Proceeds from shares issued under employee stock purchase plan	2,787			—			2,787
Net proceeds from public offerings	117,916			—			117,916
Net cash provided by financing activities	131,571			—			131,571
Effect of exchange rate changes on cash	(3,611		)	—			(3,611		)
Net increase in cash and cash equivalents	57,706			—			57,706
Cash and cash equivalents, beginning of period	111,792			—			111,792
Cash and cash equivalents, end of period	$	169,498		$	—		$	169,498