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Fair value of financial instruments and marketable securities - (Tables)

6 Months Ended

Jun. 30, 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 June 30, 2019 and December 31, 2018:

		June 30, 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		$	227,447			$	—			$	227,447			$	—
Equity investment in MRI		$	4,129			$	4,129			$	—			$	—
Stock appreciation rights liability		$	1,960			$	—			$	—			$	1,960
Deferred consideration payable		$	38,200			$	—			$	38,200			$	—
Contingent consideration payable- development and regulatory milestones		$	277,400			$	—			$	—			$	277,400
Contingent consideration payable- net sales milestones and royalties		$	58,800			$	—			$	—			$	58,800

		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 June 30, 2019 and December 31, 2018:

		June 30, 2019
		Amortized Cost				Gross Unrealized								Fair Value
						Gains				Losses
Commercial paper		$	70,185			$	116			$	—			$	70,301
Corporate debt securities		129,252				464				(10		)		129,706
Asset-backed securities		27,364				76				—				27,440
Total		$	226,801			$	656			$	(10	)		$	227,447

		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 June 30, 2019 are as follows:

		June 30, 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		(10		)		17,684				—				—				(10		)		17,684
Asset-backed securities		—				—				—				—				—				—
Total		$	(10	)		$	17,684			$	—			$	—			$	(10	)		$	17,684

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 June 30, 2019 and December 31, 2018 mature as follows:

		June 30, 2019
		Less Than 12 Months				More Than 12 Months
Commercial paper		$	70,301			$	—
Corporate debt securities		70,192				59,514
Asset-backed securities		20,639				6,801
Total Marketable securities		$	161,132			$	66,315

		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 following significant unobservable inputs were used in the valuation of the SARs liability, and the contingent consideration payable for the periods ended June 30, 2019 and December 31, 2018:

		June 30, 2019
		Fair Value		Valuation Technique		Unobservable Input		Range
SARs		$1,960		Option-pricing model		Volatility		49.70%
						Risk free interest rate		2.09%
						Strike price		$6.76 - $30.86
						Fair value of common stock		$45.00
						Expected life		0.52 years
Contingent consideration payable- development and regulatory milestones		$277,400		Probability-adjusted discounted cash flow		Potential development and regulatory milestones		$0 - $555 million
						Probabilities of success		25% - 94%
						Discount rates		3.8% - 5.7%
						Projected years of payments		2020 - 2026
Contingent considerable payable- net sales milestones and royalties		$58,800		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		14.5%
						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

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

Fair Value Measurement Inputs and Valuation Techniques

The table presented below is a summary of changes in the fair value of the Company’s Level 3 valuations for the SARs liability, and the contingent consideration payable for the period ended June 30, 2019. The changes in the fair value of the Company's Level 3 valuations for the period ended June 30, 2018 were immaterial.

		Level 3 liabilities
		SARs				Contingent consideration payable- development and regulatory milestones			Contingent consideration payable- net sales milestones and royalties
Beginning balance as of December 31, 2018		$	3,814			$	257,040		$	53,200
Additions		—				—			—
Change in fair value		1,961				20,360			5,600
Payments		(3,815		)					—
Ending balance as of June 30, 2019		$	1,960			$	277,400		$	58,800

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Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis.

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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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