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v3.20.1

Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended
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Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Revenue by Source | The following table represents disaggregation of royalties, Captisol, service revenue and contract revenue (in thousands):
|  | Three months ended |  |  |  |  |  |  |  |  |  |
|  | March 31, |  |  |  |  |  |  |  |  |  |
|  | 2020 |  | 2019 |  |  |  |  |  |  |  |
Royalties |  |  |  |  |  |  |  |  |  |  |  |
| Kyprolis | $ | 4,405 |  |  | $ | 3,833 |  |  |  |  |  |  |  |  |
| Evomela | 1,576 |  |  | 911 |  |  |  |  |  |  |  |  |
| Other | 584 |  |  | 601 |  |  |  |  |  |  |  |  |
| Promacta | — |  |  | 14,193 |  |  |  |  |  |  |  |  |
|  | $ | 6,565 |  |  | $ | 19,538 |  |  |  |  |  |  |  |  |
Captisol |  | $ | 21,109 |  |  | $ | 8,959 |  |  |  |  |  |  |  |  |
Service Revenue |  | $ | 3,357 |  |  | $ | 3,883 |  |  |  |  |  |  |  |  |
Contract Revenue |  |  |  |  |  |  |  |  |  |  |  |
| License Fees | $ | 975 |  |  | $ | 850 |  |  |  |  |  |  |  |  |
| Milestone | 334 |  |  | 10,254 |  |  |  |  |  |  |  |  |
| Other | 821 |  |  | — |  |  |  |  |  |  |  |  |
|  | $ | 2,130 |  |  | $ | 11,104 |  |  |  |  |  |  |  |  |
Total |  | $ | 33,161 |  |  | $ | 43,484 |  |  |  |  |  |  |  |  |
Schedule of Short-Term Investments | Our investments consist of the following at March 31, 2020 and December 31, 2019 (in thousands):
| March 31, 2020 |  |  |  |  |  |  |  | December 31, 2019 |  |  |  |  |  |
| 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 | $ | 284,855 |  |  | $ | 157 |  |  | $ | (1,398) |  |  | $ | 283,614 |  |  | $ | 411,690 |  |  | $ | 188 |  |  | $ | (3) |  |  | $ | 411,875 |
Corporate bonds | 62,191 |  |  | 21 |  |  | (1,666) |  |  | 60,546 |  |  | 63,818 |  |  | 161 |  |  | — |  |  | 63,979 |
Commercial paper | 127,928 |  |  | 5 |  |  | (273) |  |  | 127,660 |  |  | 210,525 |  |  | 43 |  |  | (16) |  |  | 210,552 |
Corporate equity securities | 4,506 |  |  | 430 |  |  | (3,483) |  |  | 1,453 |  |  | 4,506 |  |  | 416 |  |  | (1,850) |  |  | 3,072 |
Mutual fund | 150,747 |  |  | — |  |  | (2,794) |  |  | 147,953 |  |  | 250,635 |  |  | — |  |  | (249) |  |  | 250,386 |
Warrants | — |  |  | 58 |  |  | — |  |  | 58 |  |  | — |  |  | 125 |  |  | — |  |  | 125 |
| $ | 630,227 |  |  | $ | 671 |  |  | $ | (9,614) |  |  | $ | 621,284 |  |  | $ | 941,174 |  |  | $ | 933 |  |  | $ | (2,118) |  |  | $ | 939,989 |
Schedule of Available-for-Sale Debt Securities | The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):
| March 31, 2020 |  |
| Amortized Cost |  | Fair Value
Within one year | $ | 401,338 |  |  | $ | 400,627 |
After one year through five years | 73,636 |  |  | 71,193 |
After five years | — |  |  | — |
Total | $ | 474,974 |  |  | $ | 471,820 |
The following table summarizes our available-for-sale debt securities in an unrealized loss position (in thousands):
| Less than 12 months |  |  |  | 12 months or greater |  |  |  | Total |  |
| Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Gross Unrealized Losses |  | Estimated Fair Value
March 31, 2020 |  |  |  |  |  |  |  |  |  |  |
Bank deposits | $ | (1,398) |  |  | $ | 214,597 |  |  | $ | — |  |  | $ | — |  |  | $ | (1,398) |  |  | $ | 214,597 |
Corporate bonds | (1,666) |  |  | 40,460 |  |  | — |  |  | — |  |  | (1,666) |  |  | 40,460 |
Commercial paper | (273) |  |  | 110,666 |  |  | — |  |  | — |  |  | (273) |  |  | 110,666 |
Total | $ | (3,337) |  |  | $ | 365,723 |  |  | $ | — |  |  | $ | — |  |  | $ | (3,337) |  |  | $ | 365,723 |
December 31, 2019 |  |  |  |  |  |  |  |  |  |  |
Bank deposits | $ | (3) |  |  | $ | 58,584 |  |  | $ | — |  |  | $ | — |  |  | $ | (3) |  |  | $ | 58,584 |
Commercial paper | (16) |  |  | 79,363 |  |  | — |  |  | — |  |  | (16) |  |  | 79,363 |
Total | $ | (19) |  |  | $ | 137,947 |  |  | $ | — |  |  | $ | — |  |  | $ | (19) |  |  | $ | 137,947 |
Schedule of Goodwill and Other Identifiable Intangible Assets | Goodwill and other identifiable intangible assets consist of the following (in thousands):
| March 31, |  | December 31,
| 2020 |  | 2019
Goodwill | $ | 94,341 |  |  | $ | 95,229 |
Definite lived intangible assets |  |  |
Complete technology | 242,813 |  |  | 242,813 |
Less: accumulated amortization(1) | (53,728) |  |  | (50,203) |
Trade name | 2,642 |  |  | 2,642 |
Less: accumulated amortization | (1,213) |  |  | (1,180) |
Customer relationships | 29,600 |  |  | 29,600 |
Less: accumulated amortization | (13,594) |  |  | (13,224) |
Total goodwill and other identifiable intangible assets, net | $ | 300,861 |  |  | $ | 305,677 |
(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):
| March 31, |  | December 31,
| 2020 |  | 2019
Aziyo and CorMatrix | $ | 17,696 |  |  | $ | 17,696 |
Palvella | 10,000 |  |  | 10,000 |
Selexis | 8,602 |  |  | 8,602 |
Dianomi | 2,000 |  |  | 2,000 |
| 38,298 |  |  | 38,298 |
Less: accumulated amortization attributed to principal or research and development | (21,939) |  |  | (18,208) |
Less: credit loss adjustments | (5,978) |  |  | — |
Total commercial license and other economic rights, net | $ | 10,381 |  |  | $ | 20,090 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands):
|  | March 31, |  | December 31,
|  | 2020 |  | 2019
Compensation |  | $ | 2,321 |  |  | $ | 1,986 |
Professional fees |  | 690 |  |  | 1,135 |
Amounts owed to former licensees |  | 383 |  |  | 381 |
Royalties owed to third parties |  | 1,062 |  |  | — |
Return reserve |  | 2,899 |  |  | 3,027 |
Current operating lease liabilities |  | 1,483 |  |  | 1,242 |
Accrued interest |  | 1,437 |  |  | 690 |
Other |  | 1,573 |  |  | 1,375 |
Total accrued liabilities |  | $ | 11,848 |  |  | $ | 9,836 |
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, |  |  |  |  |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |  |  |  |  |
Share-based compensation expense as a component of: |  |  |  |  |  |  |  |  |  |  |
Research and development expenses | $ | 2,397 |  |  | $ | 2,127 |  |  |  |  |  |  |  |  |
General and administrative expenses | 3,256 |  |  | 3,220 |  |  |  |  |  |  |  |  |
| $ | 5,653 |  |  | $ | 5,347 |  |  |  |  |  |  |  |  |
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, |  |  |  |  |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |  |  |  |  |
Risk-free interest rate | 1.4% |  | 2.5% |  |  |  |  |  |  |  |
Dividend yield | — |  | — |  |  |  |  |  |  |  |
Expected volatility | 47% |  | 44% |  |  |  |  |  |  |  |
Expected term | 4.7 |  | 5.1 |  |  |  |  |  |  |  |
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 |  |  |  |  |  |  |  |  |  |
| March 31, |  |  |  |  |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |  |  |  |  |
Weighted average shares outstanding: | 16,529 |  |  | 20,447 |  |  |  |  |  |  |  |  |
Dilutive potential common shares: |  |  |  |  |  |  |  |  |  |  |
Restricted stock | — |  |  | 45 |  |  |  |  |  |  |  |  |
Stock options | — |  |  | 785 |  |  |  |  |  |  |  |  |
Shares used to compute diluted income per share | 16,529 |  |  | 21,277 |  |  |  |  |  |  |  |  |
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 10,144 |  |  | 7,015 |  |  |  |  |  |  |  |  |

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