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Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 9 Months Ended
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Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Schedule of Revenue by Source | The following table represents disaggregation of royalties, Captisol and contract revenue (in thousands):
|  | Three months ended |  |  | Nine months ended
|  | September 30, |  |  | September 30,
|  | 2020 |  | 2019 |  |  | 2020 |  | 2019
Royalties |  |  |  |  |  |  |  |
| Kyprolis | $ | 6,923 |  |  | $ | 7,602 |  |  |  | $ | 16,809 |  |  | $ | 16,317 |
| Evomela | 1,802 |  |  | 1,515 |  |  |  | 4,577 |  |  | 3,570 |
| Other | 280 |  |  | 650 |  |  |  | 1,365 |  |  | 1,851 |
| Promacta | — |  |  | — |  |  |  | — |  |  | 14,193 |
|  | $ | 9,005 |  |  | $ | 9,767 |  |  |  | $ | 22,751 |  |  | $ | 35,931 |
Captisol |  | $ | 23,389 |  |  | $ | 6,849 |  |  |  | $ | 68,966 |  |  | $ | 24,357 |
Contract |  |  |  |  |  |  |  |
| Service Revenue | $ | 7,341 |  |  | $ | 4,548 |  |  |  | $ | 15,280 |  |  | $ | 12,990 |
| License Fees | 158 |  |  | 243 |  |  |  | 1,793 |  |  | 3,083 |
| Milestone | 960 |  |  | 2,674 |  |  |  | 4,766 |  |  | 15,425 |
| Other | 995 |  |  | 727 |  |  |  | 2,873 |  |  | 1,493 |
|  | $ | 9,454 |  |  | $ | 8,192 |  |  |  | $ | 24,712 |  |  | $ | 32,991 |
Total | $ | 41,848 |  |  | $ | 24,808 |  |  |  | $ | 116,429 |  |  | $ | 93,279 |
Schedule of Short-Term Investments | Our investments, excluding investment in Viking, consist of the following at September 30, 2020 and December 31, 2019 (in thousands):
| September 30, 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 | $ | 68,226 |  |  | $ | 101 |  |  | $ | — |  |  | $ | 68,327 |  |  | $ | 411,690 |  |  | $ | 188 |  |  | $ | (3) |  |  | $ | 411,875 |
Corporate bonds | 27,125 |  |  | 102 |  |  | — |  |  | 27,227 |  |  | 63,818 |  |  | 161 |  |  | — |  |  | 63,979 |
Commercial paper | 47,943 |  |  | 60 |  |  | — |  |  | 48,003 |  |  | 210,525 |  |  | 43 |  |  | (16) |  |  | 210,552 |
Corporate equity securities | 4,484 |  |  | 415 |  |  | (2,624) |  |  | 2,275 |  |  | 4,506 |  |  | 416 |  |  | (1,850) |  |  | 3,072 |
Mutual fund | 151,513 |  |  | 204 |  |  | — |  |  | 151,717 |  |  | 250,635 |  |  | — |  |  | (249) |  |  | 250,386 |
Warrants | — |  |  | 155 |  |  | — |  |  | 155 |  |  | — |  |  | 125 |  |  | — |  |  | 125 |
| $ | 299,291 |  |  | $ | 1,037 |  |  | $ | (2,624) |  |  | $ | 297,704 |  |  | $ | 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):
| September 30, 2020
| Amortized Cost |  | Fair Value
Within one year | $ | 121,452 |  |  | $ | 121,610 |
After one year through five years | 21,842 |  |  | 21,947 |
After five years | — |  |  | — |
Total | $ | 143,294 |  |  | $ | 143,557 |
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
September 30, 2020 |  |  |  |  |  |  |  |  |  |  |
Bank deposits | $ | — |  |  | $ | 5,011 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 5,011 |
Corporate bonds | (0.4) |  |  | 3,007 |  |  | — |  |  | — |  |  | (0.4) |  |  | 3,007 |
Total | $ | (0.4) |  |  | $ | 8,018 |  |  | $ | — |  |  | $ | — |  |  | $ | (0.4) |  |  | $ | 8,018 |
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):
| September 30, |  | December 31,
| 2020 |  | 2019
Goodwill | $ | 102,136 |  |  | $ | 95,229 |
Definite lived intangible assets |  |  |
Complete technology | 257,317 |  |  | 242,813 |
Less: accumulated amortization(1) | (59,869) |  |  | (50,203) |
Trade name | 2,642 |  |  | 2,642 |
Less: accumulated amortization | (1,279) |  |  | (1,180) |
Customer relationships | 40,700 |  |  | 29,600 |
Less: accumulated amortization | (14,929) |  |  | (13,224) |
Total goodwill and other identifiable intangible assets, net | $ | 326,718 |  |  | $ | 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):
|  | September 30, 2020 |  | December 31, 2019
|  | Gross |  | Adjustments(1) |  | Net |  | Gross |  | Adjustments(2) |  | Net
Aziyo and CorMatrix |  | $ | 17,696 |  |  | $ | (9,644) |  |  | $ | 8,052 |  |  | $ | 17,696 |  |  | $ | (5,500) |  |  | $ | 12,196 |
Palvella |  | 10,000 |  |  | (10,000) |  |  | — |  |  | 10,000 |  |  | (7,492) |  |  | 2,508 |
Selexis and Dianomi |  | 10,602 |  |  | (7,820) |  |  | 2,782 |  |  | 10,602 |  |  | (5,216) |  |  | 5,386 |
Total |  | $ | 38,298 |  |  | $ | (27,464) |  |  | $ | 10,834 |  |  | $ | 38,298 |  |  | $ | (18,208) |  |  | $ | 20,090 |
(1) Amounts represent accumulated amortization to principal or research and development expenses of $21.5 million and credit loss adjustments of $6.0 million as of September 30, 2020. (2) Amounts represent accumulated amortization to principal or research and development expenses as of December 31, 2019.
Schedule of Other Assets | Other assets consist of the following (in thousands):
|  | September 30, |  | December 31,
|  | 2020 |  | 2019
Captisol manufacturing ramp up fee |  | $ | 9,215 |  |  | $ | — |
Long-term investment receivable |  | 2,000 |  |  | — |
Equity investment |  | 813 |  |  | 750 |
Deposits |  | 138 |  |  | 219 |
Other |  | 1,538 |  |  | 1,388 |
Total other assets |  | $ | 13,704 |  |  | $ | 2,357 |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following (in thousands):
|  | September 30, |  | December 31,
|  | 2020 |  | 2019
Compensation |  | $ | 4,840 |  |  | $ | 1,986 |
Professional fees |  | 1,226 |  |  | 1,135 |
Amounts owed to former licensees |  | 407 |  |  | 381 |
Royalties owed to third parties |  | 805 |  |  | — |
Return reserve |  | 2,835 |  |  | 3,027 |
Current operating lease liabilities |  | 1,029 |  |  | 1,242 |
Accrued interest |  | 1,437 |  |  | 690 |
Other |  | 1,919 |  |  | 1,375 |
Total accrued liabilities |  | $ | 14,498 |  |  | $ | 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 |  | Nine months ended |  |  |  |
| September 30, |  | September 30, |  |  |  |
| 2020 |  | 2019 |  | 2020 |  | 2019 |  |  |  |  |  |  |  |
SBC - Research and development expenses | $ | 3,094 |  |  | $ | 2,481 |  |  | $ | 8,510 |  |  | $ | 7,136 |  |  |  |  |  |  |  |  |
SBC - General and administrative expenses | 4,646 |  |  | 3,816 |  |  | 12,242 |  |  | 11,079 |  |  |  |  |  |  |  |  |
| $ | 7,740 |  |  | $ | 6,297 |  |  | $ | 20,752 |  |  | $ | 18,215 |  |  |  |  |  |  |  |  |
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,
| 2020 |  | 2019 |  |  | 2020 |  | 2019
Risk-free interest rate | 0.3% |  | 1.6% |  |  | 1.0% |  | 2.4%
Dividend yield | — |  | — |  |  | — |  | —
Expected volatility | 59% |  | 41% |  |  | 55% |  | 43%
Expected term | 4.9 |  | 5.3 |  |  | 4.8 |  | 5.2
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,
| 2020 |  | 2019 |  |  | 2020 |  | 2019
Weighted average shares outstanding: | 16,082 |  |  | 18,770 |  |  |  | 16,222 |  |  | 19,586 |
Dilutive potential common shares: |  |  |  |  |  |  |  |
Restricted stock | — |  |  | — |  |  |  | — |  |  | 35 |
Stock options | — |  |  | — |  |  |  | — |  |  | 728 |
Shares used to compute diluted income per share | 16,082 |  |  | 18,770 |  |  |  | 16,222 |  |  | 20,349 |
Potentially dilutive shares excluded from calculation due to anti-dilutive effect | 7,028 |  |  | 11,549 |  |  |  | 8,330 |  |  | 8,694 |

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