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Fair value of financial instruments and marketable securities - (Tables) | 9 Months Ended
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Sep. 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 September 30, 2019 and December 31, 2018:
|  | September 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 |  | $ | 185,072 |  |  | $ | — |  |  | $ | 185,072 |  |  | $ | — |
Equity investment in MRI |  | $ | 6,529 |  |  | $ | 6,529 |  |  | $ | — |  |  | $ | — |
Stock appreciation rights liability |  | $ | 2,235 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,235 |
Deferred consideration payable |  | $ | 39,000 |  |  | $ | — |  |  | $ | 39,000 |  |  | $ | — |
Contingent consideration payable- development and regulatory milestones |  | $ | 285,300 |  |  | $ | — |  |  | $ | — |  |  | $ | 285,300 |
Contingent consideration payable- net sales milestones and royalties |  | $ | 59,600 |  |  | $ | — |  |  | $ | — |  |  | $ | 59,600 |
|  | 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 September 30, 2019 and December 31, 2018:
|  | September 30, 2019
|  | Amortized Cost |  | Gross Unrealized |  | Fair Value
|  |  | Gains |  | Losses |
Commercial paper |  | $ | 47,898 |  |  | $ | 80 |  |  | $ | — |  |  | $ | 47,978 |
Corporate debt securities |  | 115,109 |  |  | 612 |  |  | (4 | ) |  | 115,717 |
Asset-backed securities |  | 21,310 |  |  | 67 |  |  | — |  |  | 21,377 |
Total |  | $ | 184,317 |  |  | $ | 759 |  |  | $ | (4 | ) |  | $ | 185,072 |
|  | 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 September 30, 2019 are as follows:
|  | September 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
Corporate debt securities |  | (4 | ) |  | 3,017 |  |  | — |  |  | — |  |  | (4 | ) |  | 3,017 |
Total |  | $ | (4 | ) |  | $ | 3,017 |  |  | $ | — |  |  | $ | — |  |  | $ | (4 | ) |  | $ | 3,017 |
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 September 30, 2019 and December 31, 2018 mature as follows:
|  | September 30, 2019
|  | Less Than 12 Months |  | More Than 12 Months
Commercial paper |  | $ | 47,978 |  |  | $ | — |
Corporate debt securities |  | 58,533 |  |  | 57,184 |
Asset-backed securities |  | 21,377 |  |  | — |
Total Marketable securities |  | $ | 127,888 |  |  | $ | 57,184 |
|  | 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 September 30, 2019 and December 31, 2018:
|  | September 30, 2019
|  | Fair Value |  | Valuation Technique |  | Unobservable Input |  | Range
SARs |  | $2,235 | Option-pricing model | Volatility | 43.23%
Risk free interest rate | 1.88%
Strike price | $6.76 - $30.86
Fair value of common stock | $33.82
Expected life | 0.26 years
Contingent consideration payable- development and regulatory milestones | $285,300 | Probability-adjusted discounted cash flow | Potential development and regulatory milestones | $0 - $555 million
Probabilities of success | 25% - 94%
Discount rates | 2.7% - 5.1%
Projected years of payments | 2020 - 2026
Contingent considerable payable- net sales milestones and royalties | $59,600 | 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, 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
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 September 30, 2019. The changes in the fair value of the Company's Level 3 valuations for the period ended September 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 |  | 2,236 |  |  | 28,260 |  | 6,400 |
Payments |  | (3,815 | ) |  | $ | — |  | — |
Ending balance as of September 30, 2019 |  | $ | 2,235 |  |  | $ | 285,300 |  | $ | 59,600 |

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- Definition Tabular disclosure of fair value 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, without allowance for credit loss. Includes beneficial interest in securitized financial asset. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 30 -Section 55 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=118942371&loc=SL82922954-210456 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=118939692&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 30 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=118955579&loc=SL82922888-210455 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 + Details
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- Definition 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). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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