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Fair value of financial instruments and marketable securities (Tables)

3 Months Ended

Mar. 31, 2019

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 above for the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis as of March 31, 2019 and December 31, 2018:

		March 31, 2019
		Total				Quoted prices in active markets for identical assets (level 1)				Significant other observable inputs (level 2)				Significant unobservable inputs (level 3)
Marketable securities		$	206,018			$	—			$	206,018			$	—
Stock appreciation rights liability		$	1,034			$	—			$	—			$	1,034
Deferred consideration payable		$	38,200			$	—			$	38,200			$	—
Contingent consideration payable- development and regulatory milestones		$	270,800			$	—			$	—			$	270,800
Contingent consideration payable- net sales milestones and royalties		$	60,100			$	—			$	—			$	60,100

		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			$	—
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

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 March 31, 2019 and December 31, 2018:

		March 31, 2019
		Amortized Cost				Gross Unrealized								Fair Value
						Gains				Losses
Commercial paper		$	78,032			$	46			$	—			$	78,078
Corporate debt securities		114,811				68				(46		)		114,833
Asset-backed securities		13,104				4				(1		)		13,107
Total		$	205,947			$	118			$	(47	)		$	206,018

		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

Summary of unrealized losses and fair values of available-for-sale securities in a continuous unrealized loss position

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 March 31, 2019 are as follows:

		March 31, 2019
		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		$	—			$	—			$	—			$	—			$	—			$	—
Corporate debt securities		(46		)		61,716				—				—				(46		)		61,716
Asset-backed securities		(1		)		6,077				—				—				(1		)		6,077
Total		$	(47	)		$	67,793			$	—			$	—			$	(47	)		$	67,793

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

Schedule of marketable securities on the balance sheet

Marketable securities on the balance sheet at March 31, 2019 and December 31, 2018 mature as follows:

		March 31, 2019
		Less Than 12 Months				More Than 12 Months
Commercial paper		$	78,078			$	—
Corporate debt securities		55,621				59,212
Asset-backed securities		11,176				1,931
Total Marketable securities		$	144,875			$	61,143

		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			$	—

Summary of changes in the fair value of the Company's Level 3 valuation for warrant liability and SARs liability

The contingent consideration payable is fair valued each reporting period with the change in fair value recorded as a gain or loss in the consolidated statements of operations. The fair value of the development and r

The following significant unobservable inputs were used in the valuation of the SARs liability, and the contingent consideration payable for the periods ended March 31, 2019 and December 31, 2018:

		March 31, 2019
		Fair Value		Valuation Technique		Unobservable Input		Range
SARs		$1,034		Option-pricing model		Volatility		57.34%
						Risk free interest rate		2.42%
						Strike price		$6.76 - $30.86
						Fair value of common stock		$37.64
						Expected life		0.76 years
Contingent consideration payable- development and regulatory milestones		$270,800		Probability-adjusted discounted cash flow		Potential development and regulatory milestones		$0 - $555 million
						Probabilities of success		25% - 94%
						Discount rates		4.3% - 6.4%
						Projected years of payments		2020 - 2026
Contingent considerable payable- net sales milestones and royalties		$60,100		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		13.5%
						Projected years of payments		2021 - 2038

		December 31, 2018
		Fair Value		Valuation Technique		Unobservable Input		Range
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

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Tabular disclosure of fair value of investments in debt and equity securities in an unrealized loss position categorized neither as held-to-maturity nor trading securities.

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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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-Publisher FASB
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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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