Basis of Presentation and Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

The following table represents disaggregation of Material Sales and License fees, milestone and other (in thousands):



		Three months ended				Six months ended
		June 30,				June 30,
		2018		2017		2018		2017
Material Sales
	Captisol	$	7,612	$	5,550	$	12,003	$	6,672
License fees, milestones and other
	License Fees	$	47,981	$	666	$	74,936	$	3,538
	Milestone	1,919		4,497		4,744		5,505
	Other	1,135		3,071		2,301		3,108
		$	51,035	$	8,234	$	81,981	$	12,151

Schedule of Investment Categories

The Company's investments consist of the following at June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018									December 31, 2017
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value

Short-term investments
Bank deposits	$	361,826	$	36	$	(79	)	$	361,783	$	80,095	$	6	$	(42	)	$	80,059
Corporate bonds	84,275		1		(138		)	84,138		55,335		—		(96		)	55,239
Commercial paper	243,544		10		(12		)	243,542		27,933		—		(20		)	27,913
U.S. Government bonds	112,403		14		(20		)	112,397		8,939		—		(10		)	8,929
Agency bonds	—		—		—			—		4,991		—		(1		)	4,990
Municipal bonds	2,023		—		(13		)	2,010		2,028		—		(13		)	2,015
Corporate equity securities	135		1,463		—			1,598		207		1,689		—			1,896
	$	804,206	$	1,524	$	(262	)	$	805,468	$	179,528	$	1,695	$	(182	)	$	181,041

Schedule of Goodwill and Other Identifiable Intangible Assets

Goodwill and other identifiable intangible assets consist of the following (in thousands):



	June 30,			December 31,
	2018			2017
Indefinite lived intangible assets
IPR&D	$	2,410		$	7,923
Goodwill	85,961			85,959
Definite lived intangible assets
Complete technology	228,413			222,900
Less: accumulated amortization	(29,078		)	(23,301		)
Trade name	2,642			2,642
Less: accumulated amortization	(982		)	(916		)
Customer relationships	29,600			29,600
Less: accumulated amortization	(11,004		)	(10,264		)
Total goodwill and other identifiable intangible assets, net	$	307,962		$	314,543

Schedule of Commercial License Rights

Commercial license rights consist of the following (in thousands):



	June 30,			December 31,
	2018			2017
Aziyo and CorMatrix	$	17,696		$	17,696
Selexis	8,602			8,602
	$	26,298		$	26,298
Less: accumulated amortization	(5,861		)	(6,772		)
Total commercial rights, net	$	20,437		$	19,526

Schedule of Accrued Liabilities

Accrued liabilities consist of the following (in thousands):



	June 30,		December 31,
	2018		2017
Compensation	$	3,166	$	4,085
Professional fees	367		430
Amounts owed to former licensees	468		396
Royalties owed to third parties	2,245		954
Other	3,066		1,512
Total accrued liabilities	$	9,312	$	7,377

Schedule of 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				Six months ended
	June 30,				June 30,
	2018		2017		2018		2017
Stock-based compensation expense as a component of:
Research and development expenses	$	2,096	$	1,928	$	3,863	$	5,867
General and administrative expenses	2,716		2,696		5,504		4,802
	$	4,812	$	4,624	$	9,367	$	10,669

Schedule 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		Six months ended
	June 30,		June 30,
	2018	2017	2018	2017
Risk-free interest rate	2.8%	2.1%	2.8%	2.1%
Dividend yield	—	—	—	—
Expected volatility	36%	47%	34%	47%
Expected term	5.8	6.5	5.7	6.8

Schedule 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:



	Three months ended		Six months ended
	June 30,		June 30,
	2018	2017	2018	2017
Weighted average shares outstanding:	21,211,877	21,012,611	21,209,467	20,974,738
Dilutive potential common shares:
Restricted stock	59,605	156,054	61,782	170,900
Stock options	1,132,781	967,533	1,126,196	961,021
2019 Convertible Senior Notes	1,051,852	1,079,702	1,385,475	1,010,505
Warrants	981,807	—	835,329	—
Shares used to compute diluted income per share	24,437,922	23,215,900	24,618,249	23,117,164
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	2,091,908	3,811,813	1,120,156	3,761,440