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

3 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Revenue by Source

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

						Three months ended
						March 31,
						2019						2018
Royalties
			Promacta			$	14,193					$	15,573
			Kyprolis			3,833						3,262
			Evomela			911						1,600
			Other			601						385
						$	19,538					$	20,820
Material Sales
			Captisol			$	8,959					$	4,391
License fees, milestones and other
			License Fees			$	850					$	26,955
			Milestone			11,932						2,825
			Other			2,205						1,166
						$	14,987					$	30,946
Total									$	43,484					$	56,157

Schedule of Investment Categories

Our investments consist of the following at March 31, 2019 and December 31, 2018 (in thousands):

			March 31, 2019																																										December 31, 2018
			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			$	673,988					$	184					$	(20)					$	674,152					$	311,066					$	26					$	(29)					$	311,063
Corporate bonds			74,875						56						(1)						74,930						53,223						1						(45)						53,179
Commercial paper			563,585						60						(112)						563,533						225,731						8						(76)						225,663
U.S. Government bonds			3,013						—						(3)						3,010						7,982						—						(9)						7,973
Municipal bonds			—						—						—						—						2,017						—						(4)						2,013
Corporate equity securities(1)			4,525						2,915						—						7,440						135						1,191						—						1,326
Warrants			—						510						—						510						—						—						—						—
			$	1,319,986					$	3,725					$	(136)					$	1,323,575					$	600,154					$	1,226					$	(163)					$	601,217

(1) The amortized cost for corporate equity securities represents the original purchase cost of the equity securities.

Schedule of Goodwill and Other Identifiable Intangible Assets

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

			March 31,						December 31,
			2019						2018
Goodwill			$	86,809					$	86,646
Definite lived intangible assets
Complete technology			235,413						235,413
Less: accumulated amortization			(38,169)						(35,070)
Trade name			2,642						2,642
Less: accumulated amortization			(1,081)						(1,048)
Customer relationships			29,600						29,600
Less: accumulated amortization			(12,115)						(11,744)
Total goodwill and other identifiable intangible assets, net			$	303,099					$	306,439

Schedule of Commercial License Rights

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

			March 31,						December 31,
			2019						2018
Aziyo and CorMatrix			$	17,696					$	17,696
Palvella			10,000						10,000
Selexis			8,602						8,602
Dianomi			2,000						—
			38,298						36,298
Less: accumulated amortization attributed to principal or research and development			(7,275)						(4,838)
Total commercial license and other economic rights, net			$	31,023					$	31,460

Schedule of Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

						March 31,						December 31,
						2019						2018
Compensation						$	2,384					$	4,045
Professional fees						1,022						942
Amounts owed to former licensees						427						428
Royalties owed to third parties						1,084						1,025
Payments due to broker for share repurchases						—						4,613
Return reserve						2,813						3,590
Restructuring						287						1,093
Current lease liabilities						1,187						—
Other						5,567						3,464
Total accrued liabilities						$	14,771					$	19,200

Schedule of Accounting for Share-Based Compensation

The following table summarizes share-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
			March 31,
			2019						2018
Share-based compensation expense as a component of:
Research and development expenses			$	2,127					$	1,767
General and administrative expenses			3,220						2,788
			$	5,347					$	4,555

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
			March 31,
			2019						2018
Risk-free interest rate			2.5%						2.7%
Dividend yield			—						—
Expected volatility			44%						33%
Expected term			5.1						5.7

Schedule of Inputs and Assumptions Used to Calculate Fair Value of Derivatives

The following table summarizes the inputs and assumptions used in the Black-Scholes model to calculate the fair value of the derivative assets and the inputs and assumptions used in the Binomial model to calculate the fair value of the derivative liability associated with the 2019 Notes:

									As of March 31, 2019
Common stock price									$125.71
Exercise price, conversion premium and bond hedge									$75.05
Risk-free interest rate									2.46%
Volatility									35%
Dividend yield									—
Annual coupon rate									0.75%
Remaining contractual term (in years)									0.38

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 (in thousands):

			Three months ended
			March 31,
			2019						2018
Weighted average shares outstanding:			20,447						21,209
Dilutive potential common shares:
Restricted stock			45						64
Stock options			785						1,119
2019 Convertible Senior Notes			—						1,719
Warrants			—						689
Shares used to compute diluted income per share			21,277						24,800
Potentially dilutive shares excluded from calculation due to anti-dilutive effect			7,015						148

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