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Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended
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Sep. 30, 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 |  |  |  | Nine months ended |  |  |  |  |  |
|  | September 30, |  |  |  | September 30, |  |  |  |  |  |
|  | 2019 |  | 2018 |  | 2019 |  | 2018 |  |  |  |
Royalties |  |  |  |  |  |  |  |  |  |  |  |
| Promacta | $ | — |  |  | $ | 27,812 |  |  | $ | 14,193 |  |  | $ | 68,191 |  |  |  |  |
| Kyprolis | 7,602 |  |  | 6,286 |  |  | 16,317 |  |  | 14,411 |  |  |  |  |
| Evomela | 1,515 |  |  | 1,356 |  |  | 3,570 |  |  | 4,116 |  |  |  |  |
| Other | 650 |  |  | 673 |  |  | 1,851 |  |  | 1,625 |  |  |  |  |
|  | $ | 9,767 |  |  | $ | 36,127 |  |  | $ | 35,931 |  |  | $ | 88,343 |  |  |  |  |
Material Sales |  |  |  |  |  |  |  |  |  |  |  |
| Captisol | $ | 6,849 |  |  | $ | 7,027 |  |  | $ | 24,357 |  |  | $ | 19,030 |  |  |  |  |
License fees, milestones and other |  |  |  |  |  |  |  |  |  |  |  |
| License Fees | $ | 243 |  |  | $ | 265 |  |  | $ | 3,083 |  |  | $ | 75,201 |  |  |  |  |
| Milestone | 4,790 |  |  | 1,308 |  |  | 20,897 |  |  | 6,052 |  |  |  |  |
| Other | 3,159 |  |  | 936 |  |  | 9,011 |  |  | 3,237 |  |  |  |  |
|  | $ | 8,192 |  |  | $ | 2,509 |  |  | $ | 32,991 |  |  | $ | 84,490 |  |  |  |  |
Total |  | $ | 24,808 |  |  | $ | 45,663 |  |  | $ | 93,279 |  |  | $ | 191,863 |  |  |  |  |
Schedule of Investment Categories | Our investments consist of the following at September 30, 2019 and December 31, 2018 (in thousands):
| September 30, 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 | $ | 490,828 |  |  | $ | 294 |  |  | $ | (11) |  |  | $ | 491,111 |  |  | $ | 311,066 |  |  | $ | 26 |  |  | $ | (29) |  |  | $ | 311,063 |
Corporate bonds | 58,581 |  |  | 240 |  |  | — |  |  | 58,821 |  |  | 53,223 |  |  | 1 |  |  | (45) |  |  | 53,179 |
Commercial paper | 322,160 |  |  | 86 |  |  | (29) |  |  | 322,217 |  |  | 225,731 |  |  | 8 |  |  | (76) |  |  | 225,663 |
U.S. Government bonds | — |  |  | — |  |  | — |  |  | — |  |  | 7,982 |  |  | — |  |  | (9) |  |  | 7,973 |
Municipal bonds | — |  |  | — |  |  | — |  |  | — |  |  | 2,017 |  |  | — |  |  | (4) |  |  | 2,013 |
Corporate equity securities(1) | 4,505 |  |  | 325 |  |  | (2,661) |  |  | 2,169 |  |  | 135 |  |  | 1,191 |  |  | — |  |  | 1,326 |
Warrants | — |  |  | 65 |  |  | — |  |  | 65 |  |  | — |  |  | — |  |  | — |  |  | — |
| $ | 876,074 |  |  | $ | 1,010 |  |  | $ | (2,701) |  |  | $ | 874,383 |  |  | $ | 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):
| September 30, |  | December 31,
| 2019 |  | 2018
Goodwill | $ | 93,513 |  |  | $ | 86,646 |
Definite lived intangible assets |  |  |
Complete technology | 242,813 |  |  | 235,413 |
Less: accumulated amortization(1) | (44,786) |  |  | (35,070) |
Trade name | 2,642 |  |  | 2,642 |
Less: accumulated amortization | (1,147) |  |  | (1,048) |
Customer relationships | 29,600 |  |  | 29,600 |
Less: accumulated amortization | (12,854) |  |  | (11,744) |
Total goodwill and other identifiable intangible assets, net | $ | 309,781 |  |  | $ | 306,439 |
(1) accumulated amortization for complete technology includes immaterial amount of foreign currency translation adjustments for the complete technology acquired from the Vernalis acquisition. |  |  |
Schedule of Commercial License Rights | Commercial license and other economic rights consist of the following (in thousands):
| September 30, |  | December 31,
| 2019 |  | 2018
Aziyo and CorMatrix | $ | 17,696 |  |  | $ | 17,696 |
Novan | 12,000 |  |  | — |
Palvella | 10,000 |  |  | 10,000 |
Selexis | 8,602 |  |  | 8,602 |
Dianomi | 2,000 |  |  | — |
| 50,298 |  |  | 36,298 |
Less: accumulated amortization attributed to principal or research and development | (14,885) |  |  | (4,838) |
Total commercial license and other economic rights, net | $ | 35,413 |  |  | $ | 31,460 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands):
|  | September 30, |  | December 31,
|  | 2019 |  | 2018
Compensation |  | $ | 3,605 |  |  | $ | 4,045 |
Professional fees |  | 771 |  |  | 942 |
Amounts owed to former licensees |  | 367 |  |  | 428 |
Royalties owed to third parties |  | 1,049 |  |  | 1,025 |
Payments due to broker for share repurchases |  | — |  |  | 4,613 |
Return reserve |  | 3,157 |  |  | 3,590 |
Restructuring |  | 7 |  |  | 1,093 |
Current operating lease liabilities |  | 926 |  |  | — |
Other |  | 3,178 |  |  | 3,464 |
Total accrued liabilities |  | $ | 13,060 |  |  | $ | 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 |  |  |  | Nine months ended |  |  |  |  |  |
| September 30, |  |  |  | September 30, |  |  |  |  |  |
| 2019 |  | 2018 |  | 2019 |  | 2018 |  |  |  |
Share-based compensation expense as a component of: |  |  |  |  |  |  |  |  |  |  |
Research and development expenses | $ | 2,481 |  |  | $ | 2,257 |  |  | $ | 7,136 |  |  | $ | 6,120 |  |  |  |  |
General and administrative expenses | 3,816 |  |  | 3,213 |  |  | 11,079 |  |  | 8,717 |  |  |  |  |
| $ | 6,297 |  |  | $ | 5,470 |  |  | $ | 18,215 |  |  | $ | 14,837 |  |  |  |  |
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 |  |  |  | Nine months ended |  |  |  |  |  |
| September 30, |  |  |  | September 30, |  |  |  |  |  |
| 2019 |  | 2018 |  | 2019 |  | 2018 |  |  |  |
Risk-free interest rate | 1.6% |  |  | N/A |  |  | 2.4% |  |  | 2.8% |  |  |  |  |
Dividend yield | — |  |  | N/A |  |  | — |  |  | — |  |  |  |  |
Expected volatility | 41% |  |  | N/A |  |  | 43% |  |  | 34% |  |  |  |  |
Expected term | 5.3 |  | N/A |  | 5.2 |  | 5.7 |  |  |  |
Schedule of Computation of Basic and Diluted Earnings 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, |  |  |  |  |  |
| 2019 |  | 2018 |  | 2019 |  | 2018 |  |  |  |
Weighted average shares outstanding: | 18,770 |  |  | 21,148 |  |  | 19,586 |  |  | 21,189 |  |  |  |  |
Dilutive potential common shares: |  |  |  |  |  |  |  |  |  |  |
Restricted stock | — |  |  | 83 |  |  | 35 |  |  | 69 |  |  |  |  |
Stock options | — |  |  | 1,248 |  |  | 728 |  |  | 1,167 |  |  |  |  |
2019 Convertible Senior Notes | — |  |  | — |  |  | — |  |  | 924 |  |  |  |  |
Warrants | — |  |  | 1,573 |  |  | — |  |  | 1,081 |  |  |  |  |
Shares used to compute diluted income per share | 18,770 |  |  | 24,052 |  |  | 20,349 |  |  | 24,430 |  |  |  |  |
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 11,549 |  |  | 3,126 |  |  | 8,694 |  |  | 1,789 |  |  |  |  |

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