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Basis of Presentation and Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Restatement to Prior Year Income
The effects of these prior period corrections on the statement of operations and comprehensive income are as follows (in thousands except for per share data):

 
Nine months ended September 30, 2015
 
As Reported
 
Adjustments
 
As Restated
Income tax benefit
$
219,083

 
$
(27,481
)
 
$
191,602

Net income
250,964

 
(27,481
)
 
223,483

Comprehensive income
251,351

 
(27,481
)
 
223,870

Basic earnings per share
12.71

 
(1.39
)
 
11.32

Diluted earnings per share data
11.88

 
(1.30
)
 
10.58

     Basic
19,741

 
—

 
19,741

     Diluted
21,122

 
—

 
21,122


 
Three months ended September 30, 2015
 
As Reported
 
Adjustments
 
As Restated
Income tax benefit (expense)
$
219,362

 
$
(27,481
)
 
$
191,881

Net income
226,646

 
(27,481
)
 
199,165

Comprehensive income
222,981

 
(27,481
)
 
195,500

Basic earnings per share
11.40

 
(1.39
)
 
10.01

Diluted earnings per share data
10.56

 
(1.28
)
 
9.28
Summary of computation of basic and diluted net income (loss) per share
The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands):

 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2016
 
2015
 
2016
 
2015
Weighted average shares outstanding:
20,886,705

 
19,886,877

 
20,805,604

 
19,741,081

Dilutive potential common shares:
 
 
 
 
 
 
 
Restricted stock
134,008

 
63,324

 
102,282

 
55,899

     Stock options
792,474

 
763,856

 
788,106

 
922,051

     2019 convertible senior notes
1,184,092

 
745,591

 
1,046,257

 
402,941

Shares used to compute diluted income per share
22,997,279

 
21,459,648

 
22,742,249

 
21,121,972

Potentially dilutive shares excluded from calculation due to anti-dilutive effect
3,540,806

 
3,343,719

 
3,522,063

 
3,803,007

 
 
 
 
 
 
 
 
Summary of investment categories
The following table summarizes the various investment categories at September 30, 2016 and December 31, 2015 (in thousands):

 
Amortized cost
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated
fair value
September 30, 2016
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 


     Bank deposits
$
11,999

 
$
9

 
$
(2
)
 
$
12,006

     Corporate bonds
6,014

 
31

 
—

 
6,045

     Commercial paper
13,096

 
4

 
(9
)
 
13,091

     Asset backed securities
63

 
—

 
—

 
63

     Municipal Bonds
1,778

 
13

 
—

 
1,791

     Corporate equity securities
1,578

 
2,961

 
—

 
4,539

 
$
34,528

 
$
3,018

 
$
(11
)
 
$
37,535

December 31, 2015
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
     Bank deposits
$
43,043

 
$
—

 
$
(4
)
 
$
43,039

     Corporate bonds
41,238

 
—

 
(35
)
 
41,203

     Commercial paper
1,747

 
—

 
—

 
1,747

     Asset backed securities
10,020

 
—

 
(5
)
 
10,015

     Corporate equity securities
1,843

 
4,944

 
—

 
6,787

 
$
97,891

 
$
4,944

 
$
(44
)
 
$
102,791
Summary of goodwill and other identifiable intangible assets
Goodwill and other identifiable intangible assets consist of the following (in thousands):

 
September 30,
 
December 31,
 
2016
 
2015
Indefinite lived intangible assets
 
 
 
     Acquired IPR&D
$
12,246

 
$
12,556

     Goodwill
72,359

 
12,238

Definite lived intangible assets
 
 
 
     Complete technology
182,577

 
15,267

          Less: Accumulated amortization
(10,465
)
 
(3,762
)
     Trade name
2,642

 
2,642

          Less: Accumulated amortization
(751
)
 
(652
)
     Customer relationships
29,600

 
29,600

          Less: Accumulated amortization
(8,414
)
 
(7,304
)
Total goodwill and other identifiable intangible assets, net
$
279,794

 
$
60,585
Schedule of commercial license rights
Commercial License Rights consist of the following (in thousands):

 
September 30,
 
December 31,
 
2016
 
2015
CorMatrix
$
17,696

 
$
—

Selexis
8,601

 
8,602

 
26,297

 
8,602

Less: accumulated amortization
(312
)
 
(48
)
     Total commercial rights, net
$
25,985

 
$
8,554
Summary of property and equipment
Property and equipment is stated at cost and consists of the following (in thousands):

 
September 30,
 
December 31,
 
2016
 
2015
Lab and office equipment
$
1,068

 
$
2,248

Leasehold improvements
1,686

 
273

Computer equipment and software
568

 
632

 
3,322

 
3,153

Less accumulated depreciation and amortization
(1,496
)
 
(2,781
)
     Total property and equipment, net
$
1,826

 
$
372
Summary of accrued liabilities
Accrued liabilities consist of the following (in thousands):

 
September 30,
 
December 31,
 
2016
 
2015
Compensation
$
2,150

 
$
1,711

Professional fees
640

 
726

Amounts owed to former licensees
980

 
915

Royalties owed to third parties
1,028

 
823

Other
1,877

 
1,222

     Total accrued liabilities
$
6,675

 
$
5,397
Schedule for accounting for share-based compensation
The following table summarizes stock-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):

 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2016
 
2015
 
2016
 
2015
Stock-based compensation expense as a component of:
 
 
 
 
 
 
 
Research and development expenses
$
2,845

 
$
957

 
$
6,112

 
$
3,131

General and administrative expenses
2,486

 
1,879

 
7,578

 
6,380

 
$
5,331

 
$
2,836

 
$
13,690

 
$
9,511
Summary of fair-value options awarded to employees and directors
The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:

 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2016
 
2015
 
2016
 
2015
Risk-free interest rate
1.3%
 
2%
 
1.5%
 
1.7%-2.0%
Dividend yield
—
 
—
 
—
 
—
Expected volatility
49%
 
50%
 
50%
 
50%-58%
Expected term
6.7
 
6.5
 
6.6
 
6.6
Forfeiture rate
5.0%
 
8.5%
 
5.0%
 
8.5%
Restatement of Previously Reported Balance Sheet Information
The effects of these prior period corrections on the consolidated balance sheet is as follows:

 
As of December 31, 2015
 
As Reported
 
Adjustments
 
As Restated
Deferred income taxes
$
216,564

 
$
(27,481
)
 
$
189,083

Total assets(1)
530,542

 
(27,481
)
 
503,061

2019 convertible senior notes, net - current
—

 
201,985

 
201,985

Total current liabilities
20,836

 
201,985

 
222,821

2019 convertible senior notes, net - long term(1)
201,985

 
(201,985
)
 
—

Equity component of currently redeemable convertible notes (Note 5)

—

 
39,628

 
39,628

Additional paid-in capital
701,478

 
(39,628
)
 
661,850

Accumulated deficit
(402,010
)
 
(27,481
)
 
(429,491
)
Total stockholders' equity
304,391

 
(67,109
)
 
237,282

Total liabilities and stockholders' equity(1)
530,542

 
(27,481
)
 
503,061

(1) $3.4 million of unamortized issuance cost was reclassified to debt discount in the concurrently filed 2015 10-K/A form that it is filed after the Company's retrospective adoption of ASU 2015-03, Interest-Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs in Q1 2016.

The effects of these prior period corrections on the condensed consolidated balance sheet is as follows:

 
As of September 30, 2015
 
As Reported
 
Adjustments
 
As Restated
Deferred income taxes
$
208,530

 
$
(27,481
)
 
$
181,049

Total assets
523,807

 
(27,481
)
 
496,326

Accumulated deficit
(408,351
)
 
(27,481
)
 
(435,832
)
Total stockholders' equity
294,288

 
(27,481
)
 
266,807

Total liabilities and stockholders' equity
523,807

 
(27,481
)
 
496,326


The corrections did not have any impact on the company's cash flow statements for any period.