Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 14, 2014 | Jun. 30, 2013 |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'BMRN | ' | ' |
Entity Registrant Name | 'BIOMARIN PHARMACEUTICAL INC | ' | ' |
Entity Central Index Key | '0001048477 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 143,623,224 | ' |
Entity Public Float | ' | ' | $5,076 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $568,781 | $180,527 |
Short-term investments | 215,942 | 267,278 |
Accounts receivable, net (allowance for doubtful accounts: $529 and $348, respectively) | 117,822 | 109,066 |
Inventory | 162,605 | 128,695 |
Current deferred tax assets | 30,561 | 32,356 |
Other current assets | 41,707 | 25,509 |
Total current assets | 1,137,418 | 743,431 |
Noncurrent assets: | ' | ' |
Investment in BioMarin/Genzyme LLC | 816 | 1,080 |
Long-term investments | 267,700 | 115,993 |
Property, plant and equipment, net | 319,316 | 284,473 |
Intangible assets, net | 163,147 | 162,980 |
Goodwill | 54,258 | 51,543 |
Long-term deferred tax assets | 150,391 | 189,303 |
Other assets | 156,171 | 19,544 |
Total assets | 2,249,217 | 1,568,347 |
Current liabilities: | ' | ' |
Accounts payable and accrued liabilities | 183,271 | 147,068 |
Convertible debt | 0 | 23,365 |
Total current liabilities | 183,271 | 170,433 |
Noncurrent liabilities: | ' | ' |
Long-term convertible debt | 655,566 | 324,859 |
Long-term contingent acquisition consideration payable | 30,790 | 30,618 |
Other long-term liabilities | 38,549 | 26,674 |
Total liabilities | 908,176 | 552,584 |
Stockholders' equity: | ' | ' |
Common stock, $0.001 par value: 250,000,000 shares authorized at December 31, 2013 and 2012: 143,463,668 and 125,809,162 shares issued and outstanding at December 31, 2013 and 2012, respectively. | 144 | 126 |
Additional paid-in capital | 2,059,101 | 1,561,890 |
Company common stock held by Nonqualified Deferred Compensation Plan | -7,421 | -6,603 |
Accumulated other comprehensive income (loss) | 5,018 | -202 |
Accumulated deficit | -715,801 | -539,448 |
Total stockholders' equity | 1,341,041 | 1,015,763 |
Total liabilities and stockholders' equity | $2,249,217 | $1,568,347 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $529 | $348 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 143,463,668 | 125,809,162 |
Common stock, shares outstanding | 143,463,668 | 125,809,162 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REVENUES: | ' | ' | ' |
Net product revenues | $538,360 | $496,497 | $437,647 |
Collaborative agreement revenues | 3,918 | 1,955 | 468 |
Royalty and license revenues | 6,207 | 2,271 | 3,243 |
Total revenues | 548,485 | 500,723 | 441,358 |
OPERATING EXPENSES: | ' | ' | ' |
Cost of sales (excludes amortization of certain acquired intangible assets) | 95,742 | 91,830 | 84,023 |
Research and development | 354,780 | 302,218 | 214,374 |
Selling, general and administrative | 235,356 | 198,173 | 175,423 |
Intangible asset amortization and contingent consideration | 18,614 | 18,717 | 1,428 |
Total operating expenses | 704,492 | 610,938 | 475,248 |
LOSS FROM OPERATIONS | -156,007 | -110,215 | -33,890 |
Equity in the loss of BioMarin/Genzyme LLC | -1,149 | -1,221 | -2,426 |
Interest income | 3,083 | 2,584 | 2,934 |
Interest expense | -10,447 | -7,639 | -8,409 |
Debt conversion expense | -12,965 | 0 | -1,896 |
Other income (expense) | 982 | -1,787 | 60 |
LOSS BEFORE INCOME TAXES | -176,503 | -118,278 | -43,627 |
Provision for (benefit from) income taxes | -150 | -3,931 | 10,209 |
NET LOSS | ($176,353) | ($114,347) | ($53,836) |
NET LOSS PER SHARE, BASIC AND DILUTED | ($1.28) | ($0.95) | ($0.48) |
Weighted average common shares outstanding, basic and diluted | 137,755 | 120,271 | 112,122 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net loss | ($176,353) | ($114,347) | ($53,836) |
OTHER COMPREHENSIVE INCOME (LOSS): | ' | ' | ' |
Net foreign currency gain (loss) | 361 | -301 | 6 |
Unrealized holding gain (loss) arising during the period, net of tax impact of $(3,537), $(140) and $229 for the years ended December 31, 2013, 2012 and 2011, respectively. | 6,275 | 388 | -508 |
Reclassifications to net income (loss), net of tax impact of $1, $40 and $(12) for the years ended December 31, 2013, 2012 and 2011, respectively. | -1 | -110 | 27 |
Net Change | 6,274 | 278 | -481 |
Unrealized holding gain (loss) arising during the period, net of tax impact of $789, $5,114, and $(4,500) and for the years ended December 31, 2013, 2012 and 2011, respectively. | -1,366 | -8,749 | 8,163 |
Less reclassifications to net income (loss), net of tax impact of $28, $(2,153), and $1,648 for the years ended December 31, 2013, 2012 and 2011, respectively. | 49 | -3,683 | 2,989 |
Net Change | -1,415 | -5,066 | 5,174 |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 5,220 | -5,089 | 4,699 |
COMPREHENSIVE LOSS | ($171,133) | ($119,436) | ($49,137) |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrealized holding gain (loss) arising during the period, tax | ($3,537) | ($140) | $229 |
Reclassifications to net income (loss), tax | 1 | 40 | -12 |
Unrealized holding gain (loss) arising during the period, tax | 789 | 5,114 | -4,500 |
Reclassifications to net income (loss), tax | $28 | ($2,153) | $1,648 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Company Common Stock Held By Nonqualified Deferred Compensation Plan | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
In Thousands, except Share data | ||||||
Beginning Balance at Dec. 31, 2010 | $717,257 | $111 | $1,090,188 | ($1,965) | $188 | ($371,265) |
Beginning Balance (in shares) at Dec. 31, 2010 | ' | 110,634,000 | ' | ' | ' | ' |
Net loss | -53,836 | ' | ' | ' | ' | -53,836 |
Other comprehensive income (loss) | 4,699 | ' | ' | ' | 4,699 | ' |
Issuance of common stock under Employee Stock Purchase Plan (ESPP) (in shares) | ' | 333,000 | ' | ' | ' | ' |
Issuance of common stock under Employee Stock Purchase Plan (ESPP) | 4,411 | ' | 4,411 | ' | ' | ' |
Exercise of common stock options (in shares) | ' | 1,925,000 | ' | ' | ' | ' |
Exercise of common stock options | 29,712 | 2 | 29,710 | ' | ' | ' |
Excess tax benefit from stock option exercises | 415 | ' | 415 | ' | ' | ' |
Conversion of convertible notes (in shares) | ' | 1,761,000 | ' | ' | ' | ' |
Conversion of convertible notes | 28,982 | 2 | 28,980 | ' | ' | ' |
Restricted stock vested during the period, net (in shares) | ' | 137,000 | ' | ' | ' | ' |
Restricted stock vested during the period, net | -531 | ' | -531 | ' | ' | ' |
Common stock held by Nonqualified Deferred Compensation Plan | -1,970 | ' | ' | -1,970 | ' | ' |
Stock-based compensation | 43,909 | ' | 43,909 | ' | ' | ' |
Ending Balance at Dec. 31, 2011 | 773,048 | 115 | 1,197,082 | -3,935 | 4,887 | -425,101 |
Ending Balance (in shares) at Dec. 31, 2011 | ' | 114,790,000 | ' | ' | ' | ' |
Net loss | -114,347 | ' | ' | ' | ' | -114,347 |
Other comprehensive income (loss) | -5,089 | ' | ' | ' | -5,089 | ' |
Issuance of common stock, net of offering costs (in shares) | ' | 6,500,000 | ' | ' | ' | ' |
Issuance of common stock, net of offering costs | 235,499 | 7 | 235,492 | ' | ' | ' |
Issuance of common stock under Employee Stock Purchase Plan (ESPP) (in shares) | ' | 254,000 | ' | ' | ' | ' |
Issuance of common stock under Employee Stock Purchase Plan (ESPP) | 5,495 | ' | 5,495 | ' | ' | ' |
Exercise of common stock options (in shares) | ' | 4,097,000 | ' | ' | ' | ' |
Exercise of common stock options | 77,566 | 4 | 77,562 | ' | ' | ' |
Excess tax benefit from stock option exercises | 473 | ' | 473 | ' | ' | ' |
Conversion of convertible notes (in shares) | ' | 6,000 | ' | ' | ' | ' |
Conversion of convertible notes | 105 | ' | 105 | ' | ' | ' |
Restricted stock vested during the period, net (in shares) | ' | 162,000 | ' | ' | ' | ' |
Restricted stock vested during the period, net | -1,659 | ' | -1,659 | ' | ' | ' |
Common stock held by Nonqualified Deferred Compensation Plan | -2,668 | ' | ' | -2,668 | ' | ' |
Stock-based compensation | 47,340 | ' | 47,340 | ' | ' | ' |
Ending Balance at Dec. 31, 2012 | 1,015,763 | 126 | 1,561,890 | -6,603 | -202 | -539,448 |
Ending Balance (in shares) at Dec. 31, 2012 | ' | 125,809,000 | ' | ' | ' | ' |
Net loss | -176,353 | ' | ' | ' | ' | -176,353 |
Other comprehensive income (loss) | 5,220 | ' | ' | ' | 5,220 | ' |
Purchase of capped call share options, net of tax | -19,065 | ' | -19,065 | ' | ' | ' |
Issuance of convertible debt, net of tax and offering costs | 99,879,000 | ' | 99,879,000 | ' | ' | ' |
Issuance of common stock under Employee Stock Purchase Plan (ESPP) (in shares) | ' | 254,000 | ' | ' | ' | ' |
Issuance of common stock under Employee Stock Purchase Plan (ESPP) | 6,839 | ' | 6,839 | ' | ' | ' |
Exercise of common stock options (in shares) | 2,885,052 | 2,885,000 | ' | ' | ' | ' |
Exercise of common stock options | 65,740 | 4 | 65,736 | ' | ' | ' |
Excess tax benefit from stock option exercises | 733 | ' | 733 | ' | ' | ' |
Conversion of convertible notes (in shares) | ' | 14,313,000 | ' | ' | ' | ' |
Conversion of convertible notes | 283,319 | 14 | 283,305 | ' | ' | ' |
Restricted stock vested during the period, net (in shares) | ' | 203,000 | ' | ' | ' | ' |
Restricted stock vested during the period, net | -6,397 | ' | -6,397 | ' | ' | ' |
Common stock held by Nonqualified Deferred Compensation Plan | -818 | ' | ' | -818 | ' | ' |
Stock-based compensation | 66,181 | ' | 66,181 | ' | ' | ' |
Ending Balance at Dec. 31, 2013 | $1,341,041 | $144 | $2,059,101 | ($7,421) | $5,018 | ($715,801) |
Ending Balance (in shares) at Dec. 31, 2013 | ' | 143,464,000 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net loss | ($176,353) | ($114,347) | ($53,836) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' | ' |
Depreciation and amortization | 47,264 | 44,335 | 35,046 |
Non-cash interest expense | 5,875 | 960 | 1,048 |
Accretion of discount on investments | 5,780 | 4,469 | 4,036 |
Equity in the loss of BioMarin/Genzyme LLC | 1,149 | 1,221 | 2,426 |
Stock-based compensation | 66,181 | 47,340 | 43,909 |
Impairment of intangible assets | 939 | 6,707 | 0 |
Loss on conversion of convertible promissory note | 0 | 2,000 | 0 |
Deferred income taxes | -9,156 | -9,921 | 4,363 |
Excess tax benefit from stock option exercises | -733 | -473 | -415 |
Unrealized foreign exchange (gain) loss on forward contracts | -658 | -6,529 | 7,174 |
Non-cash changes in the fair value of contingent acquisition consideration payable | 10,197 | 8,788 | -1,795 |
Debt conversion expense | 12,965 | 0 | 1,896 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable, net | -8,756 | -4,227 | -18,456 |
Inventory | -33,910 | 1,423 | -20,420 |
Other current assets | -12,073 | -3,506 | 2,543 |
Other assets | 1,676 | -4,076 | -837 |
Accounts payable and accrued liabilities | 20,420 | 37,411 | 9,771 |
Other long-term liabilities | 9,559 | 6,034 | 1,962 |
Net cash provided by (used in) operating activities | -59,634 | 17,609 | 18,415 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of property, plant and equipment | -65,124 | -44,571 | -73,219 |
Restricted funds held in escrow | -116,500 | 0 | 0 |
Maturities and sales of investments | 288,643 | 237,837 | 281,991 |
Purchase of available-for-sale investments | -395,042 | -382,168 | -215,429 |
Purchase of intellectual property | 0 | 0 | -81,000 |
Business acquisitions, net of cash acquired | -9,875 | 0 | 0 |
Investments in BioMarin/Genzyme LLC | -885 | -1,743 | -1,903 |
Investment in convertible promissory note | 0 | -5,000 | 0 |
Net cash used in investing activities | -298,783 | -195,645 | -89,560 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from exercises of stock options and ESPP | 66,182 | 81,402 | 33,592 |
Proceeds from convertible senior note offering, net | 726,202 | 0 | 0 |
Purchase of capped call share options | -29,813 | 0 | 0 |
Proceeds from public offering of common stock, net | 0 | 235,499 | 0 |
Excess tax benefit from stock option exercises | 733 | 473 | 415 |
Payments for debt conversion | -12,965 | 0 | -1,896 |
Payment on maturity of 2013 convertible note | -98 | 0 | 0 |
Payment of contingent acquisition consideration payable | -3,061 | -4,405 | -1,894 |
Repayment of capital lease obligations | -509 | -678 | -879 |
Net cash provided by financing activities | 746,671 | 312,291 | 29,338 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 388,254 | 134,255 | -41,807 |
Cash and cash equivalents: | ' | ' | ' |
Beginning of period | 180,527 | 46,272 | 88,079 |
End of period | 568,781 | 180,527 | 46,272 |
SUPPLEMENTAL CASH FLOW DISCLOSURES: | ' | ' | ' |
Cash paid for interest, net of interest capitalized into fixed assets | 2,159 | 6,665 | 7,215 |
Cash paid for income taxes | 14,897 | 6,582 | 4,395 |
Stock-based compensation capitalized into inventory | 6,121 | 4,347 | 5,298 |
Depreciation capitalized into inventory | 11,016 | 7,335 | 6,576 |
SUPPLEMENTAL CASH FLOW DISCLOSURES FROM INVESTING AND FINANCING ACTIVITIES: | ' | ' | ' |
Increase (decrease) in accounts payable and accrued liabilities related to fixed assets | 5,001 | -511 | 320 |
Conversion of convertible debt | 286,085 | 105 | 29,192 |
Deferred offering costs reclassified into additional paid-in-capital as a result of conversion of convertible debt | 2,765 | 0 | 210 |
Increase in asset retirement obligation | $90 | $886 | $2,991 |
NATURE_OF_OPERATIONS_AND_BUSIN
NATURE OF OPERATIONS AND BUSINESS RISKS | 12 Months Ended |
Dec. 31, 2013 | |
NATURE OF OPERATIONS AND BUSINESS RISKS | ' |
(1) NATURE OF OPERATIONS AND BUSINESS RISKS | |
BioMarin Pharmaceutical Inc. (the Company or BioMarin), a Delaware corporation, develops and commercializes innovative biopharmaceuticals for serious diseases and medical conditions. BioMarin selects product candidates for diseases and conditions that represent a significant unmet medical need, have well-understood biology and provide an opportunity to be first-to-market or offer a significant benefit over existing products. The Company’s product portfolio is comprised of five approved products and multiple investigational product candidates. The Company’s approved products are Naglazyme (galsulfase), Kuvan (sapropterin dihydrochloride), Firdapse (amifampridine phosphate), Aldurazyme (laronidase) and VIMIZIM (elosufase alpha). | |
Through December 31, 2013, the Company had accumulated losses of approximately $715.8 million. If the Company elects to increase its spending on development programs significantly above current long-term plans or enters into potential licenses and other acquisitions of complementary technologies, products or companies, the Company may need additional capital. The Company expects to continue to finance future cash needs that exceed its operating activities primarily through its current cash, cash equivalents, short-term and long-term investments, and to the extent necessary, through proceeds from equity or debt financings, loans and collaborative agreements with corporate partners. | |
The Company is subject to a number of risks, including: the financial performance of Naglazyme, Kuvan, Firdapse, Aldurazyme and VIMIZIM; the potential need for additional financings; its ability to successfully commercialize its product candidates, if approved; the uncertainty of the Company’s research and development efforts resulting in future successful commercial products; obtaining regulatory approval for new products; significant competition from larger organizations; reliance on the proprietary technology of others; dependence on key personnel; uncertain patent protection; dependence on corporate partners and collaborators; and possible restrictions on reimbursement from governmental agencies and healthcare organizations, as well as other changes in the health care industry. |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2013 | |
BASIS OF PRESENTATION | ' |
(2) BASIS OF PRESENTATION | |
Basis of Presentation | |
These Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of BioMarin and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated. Management performed an evaluation of the Company’s activities through the date of filing of this Annual Report on Form 10-K, and has concluded that there are no subsequent events except for the transaction disclosed in Note 25 to these Consolidated Financial Statements. | |
Use of Estimates | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||
Dec. 31, 2013 | ||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||
(3) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Cash and Cash Equivalents | ||||
The Company treats liquid investments with original maturities of three months or less when purchased as cash and cash equivalents. | ||||
Investments | ||||
The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such designations at each balance sheet date. All of the Company’s securities are classified as available-for-sale and reported in short-term investments, other current assets or long-term investments. Available-for-sale investments are recorded at fair market value, with unrealized gains or losses included in Accumulated Other Comprehensive Income (Loss) on the Company’s Consolidated Balance Sheets, exclusive of other-than-temporary impairment losses, if any. Investments are comprised of corporate securities, commercial paper, U.S. federal government agency securities and certificates of deposit. | ||||
Inventory | ||||
The Company values inventory at the lower of cost or net realizable value and determines the cost of inventory using the average-cost method. Inventories consist of currently marketed products and may contain certain products awaiting regulatory approval. In evaluating the recoverability of inventories produced in preparation for product launches, the Company considers the likelihood that revenue will be obtained from the future sale of the related inventory together with the status of the product within the regulatory approval process. | ||||
The Company analyzes its inventory levels quarterly and writes down inventory that has become obsolete, or has a cost basis in excess of its expected net realizable value and inventory quantities in excess of expected requirements. In applying the lower of cost or net realizable value to pre-launch inventory, the Company estimates a range of likely commercial prices based on its comparable commercial products. Expired inventory is disposed of and the related costs are recognized as Cost of Sales in the Company’s Consolidated Statements of Operations. | ||||
Inventories Produced in Preparation for Product Launches | ||||
The Company capitalizes inventories produced in preparation for product launches. Typically, capitalization of such inventory begins when positive results have been obtained for the clinical trials that the Company believes are necessary to support regulatory approval, uncertainties regarding ultimate regulatory approval have been significantly reduced and the Company has determined it is probable that these capitalized costs will provide some future economic benefit in excess of capitalized costs. The material factors considered by the Company in evaluating these uncertainties include the receipt and analysis of positive Phase 3 clinical trial results for the underlying product candidate, results from meetings with the relevant regulatory authorities prior to the filing of regulatory applications, and the compilation of the regulatory application. The Company closely monitors the status of each respective product within the regulatory approval process, including all relevant communication with regulatory authorities. The Company also considers its historical experience with manufacturing and commercializing similar products and the relevant product candidate. If the Company is aware of any specific material risks or contingencies other than the normal regulatory review and approval process, or if there are any specific issues identified relating to safety, efficacy, manufacturing, marketing or labeling, the related inventory would generally not be capitalized. | ||||
For inventories that are capitalized in preparation of product launch, anticipated future sales, expected approval date and shelf lives are evaluated in assessing realizability. The shelf life of a product is determined as part of the regulatory approval process; however, in evaluating whether to capitalize pre-launch inventory production costs, the Company considers the product stability data of all of the pre-approval production to date to determine whether there is adequate expected shelf life for the capitalized pre-launch production costs. | ||||
Investment in BioMarin/Genzyme LLC and Equity in the Loss of BioMarin/Genzyme LLC | ||||
The Company accounts for its investment in the joint venture between the Company and Genzyme Corporation (BioMarin/Genzyme LLC) using the equity method. Accordingly, the Company records an increase in its investment for contributions to BioMarin/Genzyme LLC and a reduction in its investment for its 50% share of any losses of BioMarin/Genzyme LLC or disbursements of profits from the BioMarin/Genzyme LLC. Equity in the loss of BioMarin/Genzyme LLC includes the Company’s 50% share of BioMarin/Genzyme LLC loss for the period. The investment in BioMarin/Genzyme LLC includes the Company’s share of the net equity of BioMarin/Genzyme LLC. | ||||
Property, Plant and Equipment | ||||
Property, plant and equipment are stated at cost net of accumulated depreciation. Depreciation is computed using the straight-line method over the related estimated useful lives as presented in the table below. Significant additions and improvements are capitalized, while repairs and maintenance are charged to expense as incurred. Property and equipment purchased for specific research and development projects with no alternative uses are expensed as incurred. | ||||
Leasehold improvements | Shorter of life of asset or lease term | |||
Building and improvements | 20 to 30 years | |||
Manufacturing and laboratory equipment | 5 to 15 years | |||
Computer hardware and software | 3 to 8 years | |||
Office furniture and equipment | 5 years | |||
Vehicles | 5 years | |||
Land | Not applicable | |||
Construction-in-progress | Not applicable | |||
Certain of the Company’s operating lease agreements include scheduled rent escalations over the lease term, as well as tenant improvement allowances. Scheduled increases in rent expense are recognized on a straight-line basis over the lease term. The difference between rent expense and rent paid is recorded as deferred rent and included in other liabilities in the accompanying Consolidated Balance Sheets. The tenant improvement allowances and free rent periods are recognized as a reduction of rent expense over the lease term on a straight-line basis. | ||||
Impairment of Long-Lived Assets | ||||
The Company records goodwill in a business combination when the total consideration exceeds the fair value of the net tangible and identifiable intangible assets acquired. Goodwill and intangible assets with indefinite lives are not amortized but subject to an annual impairment analysis. Intangible assets with definite lives are amortized over their estimated useful lives on a straight-line basis. | ||||
The Company performs its annual impairment review of goodwill and indefinite lived intangibles during the fourth quarter and whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that the full carrying amount of an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset exceeds its fair value. The Company currently operates in one business segment, the biopharmaceutical development and commercialization segment. When reviewing goodwill for impairment, the Company assesses whether goodwill should be allocated to operating levels lower than its single operating segment for which discrete financial information is available and reviewed for decision making purposes. These lower levels are referred to as reporting units. As of December 31, 2013, the Company has only one reporting unit. | ||||
The recoverability of the carrying value of the Company’s buildings, leasehold improvements for its facilities and equipment depends on the successful execution of the Company’s business initiatives and its ability to earn sufficient returns on approved products and product candidates. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of its fixed assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. | ||||
Revenue Recognition | ||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price to the buyer is fixed or determinable and collection from the customer is reasonably assured. | ||||
Net Product Revenues—The Company recognizes revenues from product sales when title and risk of loss have passed to the customer, which typically occurs upon delivery. Product sales transactions are evidenced by customer purchase orders, customer contracts, invoices and/or the related shipping documents. Upon recognition of revenue from product sales, provisions are made for government rebates such as Medicaid reimbursements, customer incentives such as cash discounts for prompt payment, distributor fees and expected returns of expired products, as appropriate. Amounts collected from customers and remitted to governmental authorities, which are primarily comprised of value-added taxes related to product sales in foreign jurisdictions, are presented on a net basis in the Company’s Consolidated Statements of Operations, in that taxes billed to customers are not included as a component of net product revenues. | ||||
In the U.S., the Company’s commercial products are generally sold to specialty pharmacies or end-users, such as hospitals, which act as retailers. The Company also sells Kuvan to Merck Serono S.A. (Merck Serono) at a price near its manufacturing cost, and Merck Serono resells the product to end users outside the U.S., Canada and Japan. The royalty earned from Kuvan product sold by Merck Serono in the EU is included as a component of net product revenues in the period earned. Outside the U.S., the Company’s commercial products are sold to its authorized distributors or directly to government purchasers or hospitals, which act as the end-users. | ||||
The Company receives a 39.5% to 50% royalty on worldwide net Aldurazyme sales by Genzyme depending on sales volume, which is included in Net Product Revenues in the Company’s Consolidated Statements of Operations. The Company recognizes a portion of this amount as product transfer revenue when product is released to Genzyme because all of the Company’s performance obligations are fulfilled at that point and title to, and risk of loss for, the product has transferred to Genzyme. The product transfer revenue represents the fixed amount per unit of Aldurazyme that Genzyme is required to pay the Company if the product is unsold by Genzyme. The amount of product transfer revenue will eventually be deducted from the calculated royalty earned when the product is sold by Genzyme. The Company records the Aldurazyme royalty revenue based on net sales information provided by Genzyme and records product transfer revenue based on the fulfillment of Genzyme purchase orders in accordance with the terms of the related agreements with Genzyme and when the title and risk of loss for the product is transferred to Genzyme. | ||||
The Company records reserves for rebates payable under Medicaid and other government programs as a reduction of revenue at the time product revenues are recorded. The Company’s reserve calculations require estimates, including estimates of customer mix, to determine which sales will be subject to rebates and the amount of such rebates. The Company updates its estimates and assumptions each quarter and records any necessary adjustments to its reserves. The Company records fees paid to distributors as a reduction of revenue. | ||||
The Company records allowances for product returns, if appropriate, as a reduction of revenue at the time product sales are recorded. Several factors are considered in determining whether an allowance for product returns is required, including market exclusivity of the products based on their orphan drug status, the patient population, the customers’ limited return rights and the Company’s experience with returns. Because of the pricing of the Company’s commercial products, the limited number of patients and the customers’ limited return rights, most customers and retailers carry a limited inventory. | ||||
However, certain international customers, usually government entities, tend to purchase larger quantities of product less frequently. Although such buying patterns may result in revenue fluctuations from quarter to quarter, the Company has not experienced any increased product returns or risk of product returns. The Company relies on historical return rates to estimate returns. Genzyme’s contractual return rights for Aldurazyme are limited to defective product. Based on these factors and the fact that the Company has not experienced significant product returns to date, management has concluded that product returns will be minimal. In the future, if any of these factors and/or the history of product returns change, an allowance for product returns may be required. | ||||
Collaborative Agreement Revenues—Collaborative agreement revenues include both license revenue and contract research revenue. | ||||
Activities under collaborative agreements are evaluated to determine if they represent a multiple element revenue arrangement. The Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. The Company accounts for those components as separate units of accounting if the following two criteria are met: | ||||
• | The delivered item or items have value to the customer on a stand-alone basis. | |||
• | If there is a general right of return relative to the delivered items, delivery or performance of the undelivered items is considered probable and within the Company’s control. | |||
Factors considered in this determination include, among other things, whether any other vendors sell the items separately and if the licensee could use the delivered item for its intended purpose without the receipt of the remaining deliverables. If multiple deliverables included in an arrangement are separable into different units of accounting, the Company allocates the arrangement consideration to those units of accounting. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. Arrangement consideration is allocated at the inception of the arrangement to the identified units of accounting based on their relative estimated selling price. Revenue is recognized for each unit of accounting when the appropriate revenue recognition criteria are met. | ||||
Nonrefundable up-front license fees where the Company has continuing involvement through research and development collaboration are initially deferred and recognized as collaborative agreement license revenue over the estimated period for which the Company continues to have a performance obligation. | ||||
Future milestone payments that are contingent upon the achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved. A milestone is substantive if: | ||||
• | It can only be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance; | |||
• | There is substantive uncertainty at the date an arrangement is entered into that the event will be achieved; and | |||
• | It would result in additional payments being due to the entity. | |||
Royalty and License Revenues—Royalty revenues includes royalties on net sales of products with which the Company has no direct involvement and is recognized based on data reported by licensees or sublicensees. Royalties are recognized as earned in accordance with the contract terms at the time the royalty amount is fixed or determinable based on information received from the sublicensees and at the time collectibility is reasonably assured. | ||||
Due to the significant role the Company plays in the operations (primarily the manufacturing and regulatory activities) of Aldurazyme and Kuvan as well as the rights and responsibilities to deliver the products to Genzyme and Merck Serono, respectively, the Company elected not to classify these royalties earned as other royalty revenues but instead to include them as a component of Net Product Revenues in the Company’s Consolidated Statements of Operations. | ||||
Research and Development | ||||
Research and development expenses include expenses associated with contract research and development provided by third parties, product manufacturing prior to regulatory approval, clinical and regulatory costs, and internal research and development costs. In instances where the Company enters into agreements with third parties for research and development activities, costs are expensed upon the earlier of when non-refundable amounts are due or as services are performed unless there is an alternative future use of the funds in other research and development projects. Amounts due under such arrangements may be either fixed fee or fee for service and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. The Company accrues costs for clinical trial activities based upon the services received and estimates of related expenses incurred that have yet to be invoiced by the vendors that perform the activities. | ||||
Convertible Debt Transactions | ||||
The Company separately accounts for the liability and equity components of convertible debt instruments that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option, or equity component, in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the proceeds from the convertible debt issuance and the amount measured as the liability component is recorded as the equity component with a corresponding discount recorded on the debt. The Company recognizes the accretion of the resulting discount using the effective interest method as part of Interest Expense in its Consolidated Statements of Operations. | ||||
Net Loss Per Common Share | ||||
Basic net loss per share is calculated by dividing net loss by the weighted average shares of common stock outstanding during the period. Diluted net loss per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if their effect is anti-dilutive. The Company currently has no dilutive securities and as such, basic and diluted net loss per share are the same for the periods presented. | ||||
Stock-Based Compensation | ||||
The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options and the Company’s Employee Stock Purchase Plan (the ESPP) awards. The determination of the fair value of stock-based payment awards using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each award. Further, stock-based compensation expense recognized in the Company’s Consolidated Statements of Operations is based on awards expected to vest and therefore the amount of expense has been reduced for estimated forfeitures, which are based on historical experience. If actual forfeitures differ from estimates at the time of grant they will be revised in subsequent periods. | ||||
The Company uses a lattice model with a Monte Carlo simulation to value restricted stock unit awards with performance and market conditions. This valuation methodology utilizes several key assumptions, including closing price of the Company’s stock price on grant date, expected volatility of the Company’s stock price, risk-free rates of return, expected dividend yield and estimated total shareholder return. | ||||
If factors change and different assumptions are employed in determining the fair value of stock-based awards, the stock-based compensation expense recorded in future periods may differ significantly from what was recorded in the current period. See Note 17 to these Consolidated Financial Statements for further information. | ||||
Nonqualified Deferred Compensation Plan | ||||
The Company’s Nonqualified Deferred Compensation Plan (the Deferred Compensation Plan) allows eligible employees, including members of the Company’s Board of Directors (the Board), management and certain highly-compensated employees as designated by the Deferred Compensation Plan’s administrative committee, to make voluntary deferrals of compensation to specified dates, retirement or death. Participants are permitted to defer portions of their salary, annual cash bonus and restricted stock. The Company is not allowed to make additional direct contributions to the Deferred Compensation Plan on behalf of the participants without further action by the Board. | ||||
All of the investments held in the Deferred Compensation Plan are classified as trading securities and recorded at fair value with changes in the investments’ fair values recognized as earnings in the period they occur. Restricted stock issued and held by the Deferred Compensation Plan is accounted for similarly to treasury stock in that the value of the employer stock is determined on the date the restricted stock vests and the shares are issued into the Deferred Compensation Plan. The restricted stock issued into the Deferred Compensation Plan is recorded as stockholders’ equity and changes in the fair value of the corresponding liability are recognized in earnings as incurred. The corresponding liability for the Deferred Compensation Plan is included in Accounts Payable and Accrued Liabilities and Other Long-Term Liabilities in the Company’s Consolidated Balance Sheets. | ||||
Income Taxes | ||||
The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. Deferred tax assets and liabilities, measured using enacted tax rates, are recognized for the future tax consequences of temporary differences between the tax and financial statement basis of assets and liabilities. A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized. The Company establishes liabilities or reduces assets for uncertain tax positions when the Company believes certain tax positions are not more likely than not of being sustained if challenged. Each quarter, the Company evaluates these uncertain tax positions and adjusts the related tax assets and liabilities in light of changing facts and circumstances. | ||||
The Company uses financial projections to support its net deferred tax assets, which contain significant assumptions and estimates of future operations. If such assumptions were to differ significantly, it may have a material impact on the Company’s ability to realize its deferred tax assets. At the end of each period, the Company will reassess the ability to realize its deferred tax benefits. If it is more likely than not that the Company would not realize the deferred tax benefits, then all or a portion of the valuation allowance may need to be re-established, which will result in a charge to tax expense. | ||||
Foreign Currency and Other Hedging Instruments | ||||
The Company engages in transactions denominated in foreign currencies and, as a result, is exposed to changes in foreign currency exchange rates. To manage the volatility resulting from fluctuating foreign currency exchange rates, the Company nets it exposures, where possible to take advantage of natural offsets and enters into forward foreign currency exchange contracts for the remaining exposures. | ||||
The Company accounts for its derivative instruments as either assets or liabilities on the balance sheet and measures them at fair value. Derivatives that are not defined as hedging instruments are adjusted to fair value through earnings. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. | ||||
The Company assess, both at inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting the changes in cash flows of the hedged items. The Company also assesses hedge ineffectiveness on a monthly basis and records the gain or loss related to the ineffective portion to current earnings. If the Company determines that a forecasted transaction is no longer probable of occurring, it discontinues hedge accounting for the affected portion of the hedge instrument, and any related unrealized gain or loss on the contract is recognized in current earnings. | ||||
See Note 14 to these Consolidated Financial Statements for further information. | ||||
Fair Value of Financial Instruments | ||||
The Company discloses the fair value of financial instruments for assets and liabilities for which the value is practicable to estimate. The carrying amounts of all cash equivalents, short-term and long-term investments and forward exchange contracts approximate fair value based upon quoted market prices or discounted cash flows. The fair values of trade accounts receivables, accounts payable and other financial instruments approximate carrying value due to their short-term nature, and would be considered level 2 items in the fair value hierarchy. | ||||
Business Combinations | ||||
The Company allocates the purchase price of acquired businesses to the tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date. The purchase price allocation process requires management to make significant estimates and assumptions, especially at the acquisition date with respect to intangible assets and in-process research and development (IPR&D). In connection with the purchase price allocations for acquisitions, the Company estimates the fair value of contingent payments utilizing a probability-based income approach inclusive of an estimated discount rate. | ||||
Contingent Acquisition Consideration Payable | ||||
The Company determines the fair value of contingent acquisition consideration payable on the acquisition date using a probability-based income approach utilizing an appropriate discount rate. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as adjustments to Intangible Asset Amortization and Contingent Consideration in the Company’s Consolidated Statements of Operations. Changes in the fair value of the contingent acquisition consideration payable can result from adjustments to the estimated probability and assumed timing of achieving the underlying milestones, as well as from changes to the discount rates and periods. | ||||
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | ||||
Comprehensive income (loss) includes net income (loss) and certain changes in stockholders’ equity that are excluded from net income (loss), such as changes in unrealized gains and losses on the Company’s available-for-sale securities, unrealized gains (losses) on foreign currency hedges and changes in the Company’s cumulative foreign currency translation account. | ||||
Reclassifications and Adjustments | ||||
Certain items in the prior year’s Consolidated Financial Statements have been reclassified to conform to the current presentation. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 31, 2013 | |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
(4) RECENT ACCOUNTING PRONOUNCEMENTS | |
Except for FASB Accounting Standards Update 2013-02 (ASU 2013-02), Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, there have been no new accounting pronouncements or changes to accounting pronouncements during the year ended December 31, 2013, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the year-ended December 31, 2012, that are of significance or potential significance to the Company. ASU 2013-02 requires an entity to present either on the face of the financial statements where income is presented or in the notes to the financial statements, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. See Note 18 to these Consolidated Financial Statements for the expanded disclosures required by ASU 2013-02. |
CONVERTIBLE_DEBT
CONVERTIBLE DEBT | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
CONVERTIBLE DEBT | ' | ||||||||||||
(5) CONVERTIBLE DEBT | |||||||||||||
2018/2020 Notes | |||||||||||||
On October 15, 2013, the Company issued $750.0 million senior subordinated convertible notes consisting of $375.0 million 0.75% due in October 2018 (the 2018 Notes) and $375.0 million 1.50% due in October 2020 (the 2020 Notes and collectively the Notes). Net proceeds from the offering were $726.2 million. | |||||||||||||
The 2018 Notes and the 2020 Notes bear interest at a rate of 0.75% and 1.5% per year, respectively, which is payable semiannually in arrears on April 15 and October 15 of each year, beginning on April 15, 2014. | |||||||||||||
The Notes are senior unsecured obligations, and rank (i) equally to any of the Company’s existing and future unsecured senior debt, (ii) senior to any of the Company’s future indebtedness that is expressly subordinated to the Notes, and (iii) effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness. | |||||||||||||
Upon the occurrence of a “fundamental change”, as defined in the indenture, the holders may require the Company to repurchase all or a portion of the Notes for cash at 100% of the principal amount of the Notes being purchased, plus any accrued and unpaid interest. | |||||||||||||
The Notes are convertible into 7,965,975 shares of the Company’s common stock under certain circumstances prior to maturity at a conversion rate of 10.6213 shares per $1,000 principal amount of the Notes, which represents a conversion price of $94.15 per share, subject to adjustment under certain conditions. Holders may convert their notes at their option at any time prior to July 15, 2018, in the case of the 2018 Notes, and July 15, 2020, in the case of the 2020 Notes, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on March 31, 2014 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the applicable conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of the relevant notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. | |||||||||||||
Upon conversion, the Company may pay cash, shares of the Company’s common stock or a combination of cash and stock, as determined by the Company in its discretion. | |||||||||||||
The Company has separately accounted for the liability and equity components of the Notes by allocating the proceeds from issuance of the Notes between the liability component and the embedded conversion option, or equity component. This allocation was done by first estimating an interest rate at the time of issuance for similar notes that do not include the embedded conversion option. The Company allocated $156.2 million to the equity component, net of offering costs of $5.1 million. The Company recorded a discount on the notes of $161.3 million which will be accreted and recorded as additional interest expense over the life of the Notes. During 2013, the Company recognized $2.6 million and $2.2 million, for the 2018 Notes and the 2020 Notes, respectively. The effective interest rate on the liability component of the Notes for the year ended December 31, 2013 was 7.5%. | |||||||||||||
In connection with the issuance of the Notes, the Company incurred $23.8 million of issuance costs. These costs are being amortized and are recorded as additional interest expense over the life of the Notes. During 2013, the Company recognized $0.4 million and $0.3 million of amortization of deferred offering costs, for the 2018 Notes and the 2020 Notes, respectively. | |||||||||||||
To minimize the impact of potential dilution upon conversion of the 2018 Notes and the 2020 Notes, the Company entered into capped call transactions separate from the issuance of the Notes with certain counterparties covering 3,982,988 shares of the Company’s common stock, subject to adjustment. The capped calls have a strike price of $94.15 and a cap price of $121.05 and are exercisable when and if the Notes are converted. If upon conversion of the Notes, the price of the Company’s common stock is above the strike price of the capped calls, the counterparties will deliver shares of the Company’s common stock and/or cash with an aggregate value equal to the difference between the price of the Company’s common stock at the conversion date and the strike price, multiplied by the number of shares of the Company’s common stock related to the capped calls being exercised. The Company paid $29.8 million for these capped calls transactions, which was recorded as additional paid-in capital. | |||||||||||||
2017 Notes | |||||||||||||
In April 2007, the Company sold $324.9 million of senior subordinated convertible notes due in April 2017 (the 2017 Notes), of which $62.0 million remained outstanding at December 31, 2013. The 2017 Notes were issued at face value and bear interest at the rate of 1.875% per annum, payable semi-annually in cash. The 2017 Notes are convertible, at the option of the holder, at any time prior to maturity or redemption, into shares of the Company’s common stock at a conversion price of $20.36 per share, subject to adjustment in certain circumstances. The 2017 Notes do not include a call provision and the Company is unable to unilaterally redeem the 2017 Notes prior to maturity on April 23, 2017. The Company also must repay the 2017 Notes if there is a qualifying change in control or termination of trading of its common stock. If a change of control occurs, the Company will pay a make whole premium by increasing the conversion rate applicable to the 2017 Notes. | |||||||||||||
In connection with the placement of the 2017 Notes, the Company paid $8.5 million in offering costs, which have been deferred and are included in other assets. The deferred offering costs are being amortized as interest expense over the life of the debt. For the year ended December 31, 2013, the Company recognized amortization expense of $0.4 million, compared to $0.9 million in each of the years ended December 31, 2012 and 2011. | |||||||||||||
During 2013, the Company entered into separate agreements with 18 of the existing holders of the 2017 Notes pursuant to which such holders converted $262.8 million in aggregate principal amount of the 2017 Notes into 12,906,780 shares of the Company’s common stock. In addition to issuing the requisite number of shares of the Company’s common stock pursuant to the 2017 Notes, the Company also made varying cash payments to each of the holders, totaling $14.8 million in the aggregate, of which $13.0 million was recognized in total as Debt Conversion Expense in the Company’s Consolidated Statement of Operations for the year ended December 31, 2013 and $1.8 million was for accrued interest. Additionally, the Company reclassified $2.8 million of deferred offering costs to additional paid-in capital in connection with the conversion of the 2017 Notes. | |||||||||||||
2013 Notes | |||||||||||||
In March 2006, the Company sold $172.5 million of senior subordinated convertible notes due in March 2013 (the 2013 Notes), which fully matured on March 29, 2013. The 2013 Notes were issued at face value and bore interest at the rate of 2.5% per annum, payable semi-annually in cash. The 2013 Notes were convertible, at the option of the holder, at any time prior to maturity or redemption, into shares of the Company’s common stock at a conversion price of $16.58 per share, subject to adjustment in certain circumstances. The 2013 Notes did not include a call provision and the Company was unable to unilaterally redeem the debt prior to maturity on March 29, 2013. Upon maturity of the remaining 2013 Notes outstanding in March 2013, the Company issued the requisite 1,403,735 shares of common stock pursuant to the 2013 Notes to the bond holders, in exchange for $23.3 million in principal and paid one bond holder the par value at maturity in cash totaling $98. | |||||||||||||
In September 2011, the Company entered into separate agreements with six of the existing holders of its 2013 Notes pursuant to which such holders converted $29.2 million in aggregate principal amount of the 2013 Notes into 1,760,178 shares of the Company’s common stock. In addition to issuing the requisite number of shares of the Company’s common stock pursuant to the 2013 Notes, the Company paid the holders future interest of approximately $1.1 million along with $0.8 million related to varying cash premiums for agreeing to convert the 2013 Notes, which was recognized in total as debt conversion expense on the Company’s Consolidated Statement of Operations for the year ended December 31, 2011. Additionally, the Company reclassified $0.2 million of deferred offering costs to Additional Paid-In Capital in connection with the conversion of the 2013 Notes. During 2012 and 2011, certain note holders voluntarily exchanged an insignificant number of convertible notes for shares of the Company’s common stock. | |||||||||||||
In connection with the placement of the 2013 Notes, the Company paid approximately $5.5 million in offering costs, which were deferred and were included in other assets. The deferred offering costs were amortized as interest expense over the life of the debt. For the year ended December 31, 2013, the Company recognized amortization expense of $27, compared to $0.1 million and $0.2 million in the years ended December 31, 2012 and 2011, respectively. | |||||||||||||
The following table summarizes information regarding the Company’s convertible debt at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Short-Term: | |||||||||||||
Convertible Notes due 2013: | $ | 0 | $ | 23,365 | |||||||||
Total short-term convertible debt | $ | 0 | $ | 23,365 | |||||||||
Long-term: | |||||||||||||
Convertible Notes due 2020, net of unamortized discount of $87,975 | $ | 287,025 | $ | 0 | |||||||||
Convertible Notes due 2018, net of unamortized discount of $68,500 | 306,500 | 0 | |||||||||||
Convertible Notes due 2017 | 62,041 | 324,859 | |||||||||||
Total long-term convertible debt, net of unamortized discount | $ | 655,566 | $ | 324,859 | |||||||||
Total convertible debt, net of unamortized discount | $ | 655,566 | $ | 348,224 | |||||||||
Fair value of fixed rate convertible debt | |||||||||||||
Convertible Notes due in 2020 (1) | $ | 400,879 | $ | 0 | |||||||||
Convertible Notes due in 2018 (1) | 397,691 | 0 | |||||||||||
Convertible Notes due in 2017 (1) | 213,765 | 788,433 | |||||||||||
Convertible Notes due in 2013 (1) | 0 | 23,365 | |||||||||||
Total | $ | 1,012,335 | $ | 811,798 | |||||||||
-1 | The fair value of the Company’s fixed rate convertible debt is based on open market trades and is classified as Level 1 in the fair value hierarchy. | ||||||||||||
Interest expense on the Company’s convertible debt was comprised of the following: | |||||||||||||
Years Ended December, 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Coupon interest | $ | 4,550 | $ | 6,678 | $ | 7,361 | |||||||
Amortization of issuance costs | 1,053 | 960 | 1,048 | ||||||||||
Accretion of debt discount | 4,821 | 0 | 0 | ||||||||||
Total interest expense on convertible debt | $ | 10,424 | $ | 7,638 | $ | 8,409 | |||||||
See Note 6 to these Consolidated Financial Statements for further discussion of the effect of conversion on net loss per common share. |
NET_LOSS_PER_COMMON_SHARE
NET LOSS PER COMMON SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
NET LOSS PER COMMON SHARE | ' | ||||||||||||
(6) NET LOSS PER COMMON SHARE | |||||||||||||
Potentially issuable shares of common stock include shares issuable upon the exercise of outstanding employee stock option awards, common stock issuable under the ESPP, unvested restricted stock, common stock held by the Deferred Compensation Plan and contingent issuances of common stock related to convertible debt. The table below presents potential shares of common stock that were excluded from the computation as they were anti-dilutive using the treasury stock method (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Options to purchase common stock | 13,157 | 13,895 | 16,319 | ||||||||||
Common stock issuable under the 2013 and 2017 Notes | 3,047 | 17,365 | 17,372 | ||||||||||
Common stock issuable under the 2018 and 2020 Notes | 7,966 | 0 | 0 | ||||||||||
Unvested restricted stock units | 1,159 | 1,165 | 1,068 | ||||||||||
Potentially issuable common stock for ESPP purchases | 197 | 263 | 241 | ||||||||||
Common stock held by the Nonqualified Deferred Compensation Plan | 193 | 233 | 173 | ||||||||||
Total number of potentially issuable shares | 25,719 | 32,921 | 35,173 | ||||||||||
The Company accounts for the effect of the 2018 Notes and the 2020 Notes on diluted net loss per share using the treasury stock method since they may be settled in cash or shares at the Company’s option. As a result, the 2018 Notes and the 2020 Notes have no effect on diluted net loss per share until the Company’s stock price exceeds the conversion price of $94.15 per share for the Notes. In the period of conversion, the Notes will have no impact on diluted net loss if the Notes are settled in cash and will have an impact on dilutive loss per share if the Notes are settled in shares upon conversion. |
ACQUISITION_OF_ZACHARON_PHARMA
ACQUISITION OF ZACHARON PHARMACEUTICALS, INC. | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
ACQUISITION OF ZACHARON PHARMACEUTICALS, INC. | ' | ||||
(7) ACQUISITION OF ZACHARON PHARMACEUTICALS, INC. | |||||
On January 4, 2013, the Company entered into a merger agreement with Zacharon Pharmaceuticals, Inc. (Zacharon), a private biotechnology company focused on developing small molecules targeting pathways of glycan and glycolipid metabolism, for a total purchase price of $11.5 million. | |||||
In connection with its acquisition of Zacharon, the Company made an upfront payment of $9.7 million in cash to the Zacharon stockholders for all of the outstanding common stock of Zacharon, net of transaction cost of $0.8 million paid on behalf of the Zacharon stockholders. The transactions costs related to this acquisition were recognized as Sales, General and Administrative expense on the Company’s Statement of Operations for the year ended December 31, 2013. The Company also agreed to pay the Zacharon stockholders additional consideration in future periods of up to $134.0 million (undiscounted) in milestone payments if certain clinical, development and sales milestones are met. The fair value of the contingent acquisition consideration payments was $1.9 million and was estimated by applying a probability-based income approach utilizing an appropriate discount rate. This estimation was based on significant inputs that are not observable in the market, referred to as Level 3 inputs. Key assumptions included a discount rate of 4.7% and various probability factors. The range of outcomes and assumptions used to develop these estimates have been updated to estimate the fair value of the contingent consideration payable as of December 31, 2013. See Note 15 to these Consolidated Financial Statements for additional discussion regarding fair value measurements of the contingent acquisition consideration payable. | |||||
The following table presents the final allocation of the purchase consideration for the Zacharon acquisition, including the contingent acquisition consideration payable, based on fair value. The final allocation includes an adjustment to goodwill and the deferred tax assets of approximately $0.7 million resulting from the finalization of Zacharon’s tax returns. | |||||
Cash and cash equivalents | $ | 560 | |||
Other current assets | 216 | ||||
Property, plant and equipment | 398 | ||||
Acquired deferred tax assets | 2,625 | ||||
Other assets | 38 | ||||
IPR&D | 11,680 | ||||
Total identifiable assets acquired | $ | 15,517 | |||
Accounts payable and accrued expenses | $ | (1,182 | ) | ||
Debt assumed | (1,313 | ) | |||
Deferred tax liability | (4,217 | ) | |||
Total liabilities assumed | $ | (6,712 | ) | ||
Net identifiable assets acquired | $ | 8,805 | |||
Goodwill | 2,715 | ||||
Net assets acquired | $ | 11,520 | |||
A substantial portion of the assets acquired consisted of intangible assets related to Zacharon’s SENSI-Pro assay. The Company determined that the estimated acquisition-date fair value of the intangible assets related to the SENSI-Pro assay was $11.7 million. | |||||
The $2.6 million of deferred tax assets resulting from the acquisition was primarily related to federal and state net operating loss and tax credit carryforwards. The $4.2 million of deferred tax liabilities relates to the tax impact of future amortization or possible impairments associated with the identified intangible assets acquired, which are not deductible for tax purposes. | |||||
The excess of the consideration transferred over the fair values assigned to the assets acquired and liabilities assumed was $2.7 million, which represents the amount of goodwill resulting from the acquisition. The Company believes that the goodwill primarily represents synergies expected from the acquisition and other benefits that do not qualify for separate recognition as acquired intangible assets. None of the goodwill is expected to be deductible for income tax purposes. The Company recorded the goodwill in the Company’s Consolidated Balance Sheet as of the acquisition date. | |||||
Zacharon’s results of operations prior to and since the acquisition date are insignificant to the Company’s Consolidated Financial Statements. | |||||
See Note 10 to these Consolidated Financial Statements for further discussion of the acquired intangible assets. |
INVESTMENTS
INVESTMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
INVESTMENTS | ' | ||||||||||||||||
(8) INVESTMENTS | |||||||||||||||||
All investments were classified as available-for-sale at December 31, 2013 and 2012. The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s available-for-sale securities by major security type at December 31, 2013 and 2012 are summarized in the tables below: | |||||||||||||||||
Amortized | Gross | Gross | Aggregate | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value at | ||||||||||||||
Holding Gains | Holding Losses | December 31, 2013 | |||||||||||||||
Certificates of deposit | $ | 47,008 | $ | 2 | $ | 0 | $ | 47,010 | |||||||||
Corporate debt securities | 341,519 | 313 | (423 | ) | 341,409 | ||||||||||||
Commercial paper | 86,154 | 24 | 0 | 86,178 | |||||||||||||
U.S. Government agency securities | 8,900 | 1 | 0 | 8,901 | |||||||||||||
Greek government-issued bonds | 52 | 92 | 0 | 144 | |||||||||||||
Total | $ | 483,633 | $ | 432 | $ | (423 | ) | $ | 483,642 | ||||||||
Amortized | Gross | Gross | Aggregate | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value at | ||||||||||||||
Holding Gains | Holding Losses | December 31, 2012 | |||||||||||||||
Certificates of deposit | $ | 48,741 | $ | 14 | $ | (1 | ) | $ | 48,754 | ||||||||
Corporate debt securities | 316,709 | 402 | (211 | ) | 316,900 | ||||||||||||
U.S. Government agency securities | 17,512 | 5 | 0 | 17,517 | |||||||||||||
Greek government-issued bonds | 48 | 52 | 0 | 100 | |||||||||||||
Total | $ | 383,010 | $ | 473 | $ | (212 | ) | $ | 383,271 | ||||||||
Strategic Investments | |||||||||||||||||
The Company has an investment in marketable equity securities which is measured using quoted prices in its respective active market that is considered a strategic investment. As of December 31, 2013, the fair value of the Company’s marketable equity securities of $13.0 million includes an unrealized gain of $10.1 million. As of December 31, 2012, the fair value of the Company’s marketable equity securities of $2.9 million included an unrealized loss of $0.1 million. This investment is recorded in Other Assets in the Company’s Consolidated Balance Sheets. | |||||||||||||||||
The fair values of available-for-sale securities by contractual maturity at December 31, 2013 and 2012 were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Maturing in one year or less | $ | 215,942 | $ | 267,278 | |||||||||||||
Maturing after one year through three years | 267,700 | 115,993 | |||||||||||||||
Total | $ | 483,642 | $ | 383,271 | |||||||||||||
Impairment assessments are made at the individual security level each reporting period. When the fair value of an investment is less than its cost at the balance sheet date, a determination is made as to whether the impairment is other-than-temporary and, if it is other-than-temporary, an impairment loss is recognized in earnings equal to the difference between the investment’s amortized cost and fair value at such date. As of December 31, 2013, some of the Company’s investments were in an unrealized loss position. However, none of the underlying investments has been in a continuous loss position longer than twelve months, and no other-than-temporary impairment is deemed to have occurred. | |||||||||||||||||
See Note 15 to these Consolidated Financial Statements for additional discussion regarding the fair value of the Company’s available-for-sale securities. |
GOODWILL
GOODWILL | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
GOODWILL | ' | ||||
(9) GOODWILL | |||||
Goodwill is tested for impairment on an annual basis and between annual tests if the Company becomes aware of any events occurring or changes in the circumstances that would indicate a reduction in the fair value of the goodwill below its carrying amount. | |||||
The following table represents the changes in goodwill for the year ended December 31, 2013: | |||||
Balance at December 31, 2012 | $ | 51,543 | |||
Addition of goodwill related to the acquisition of Zacharon | 2,715 | ||||
Balance at December 31, 2013 | $ | 54,258 | |||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
INTANGIBLE ASSETS | ' | ||||||||||||||||
(10) INTANGIBLE ASSETS | |||||||||||||||||
Intangible assets consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Intangible assets: | |||||||||||||||||
Finite-lived intangible assets | $ | 118,242 | $ | 118,242 | |||||||||||||
Indefinite-lived intangible assets | 74,430 | 63,689 | |||||||||||||||
Gross intangible assets: | 192,672 | 181,931 | |||||||||||||||
Less: Accumulated amortization | (29,525 | ) | (18,951 | ) | |||||||||||||
Net carrying value | $ | 163,147 | $ | 162,980 | |||||||||||||
Finite-Lived Intangible Assets | |||||||||||||||||
The following table summarizes the annual amortization of the finite-lived intangible assets through 2023: | |||||||||||||||||
Net Balance at | Estimated | Remaining | Annual | ||||||||||||||
December 31, 2013 | Useful Life | Life | Amortization | ||||||||||||||
Naglazyme intellectual property | $ | 66,938 | 12 years | 9.9 years | $ | 6,750 | |||||||||||
EU marketing rights for Firdapse | 20,141 | 10 years | 6.2 years | 3,223 | |||||||||||||
License payment for Kuvan FDA Approval | 316 | 7 years | 1.0 years | 332 | |||||||||||||
License payment for Kuvan EMEA Approval | 1,322 | 10 years | 4.9 years | 269 | |||||||||||||
Total | $ | 88,717 | $ | 10,574 | |||||||||||||
In November 2011, the Company entered into an asset purchase agreement to purchase certain intellectual property from SA Pathology, a unit of the Central Adelaide Local Health Network located in Adelaide, Australia, for an upfront cash payment of $81.0 million. The intellectual property purchased by the Company includes issued and pending patents related to the purified form of Naglazyme and the method of using the enzyme in the treatment of Mucopolysaccharidosis VI, which expire between 2022 and 2023. Prior to this purchase, the Company licensed this intellectual property from SA Pathology and paid to them a 5% royalty on net sales of Naglazyme. In the years ended December 31, 2013, 2012 and 2011, the Company recognized amortization expense of $6.8 million, $6.8 million and $0.5 million, respectively, related to the Naglazyme intellectual property as a component of Cost of Sales in the Company’s Consolidated Statements of Operations. | |||||||||||||||||
Indefinite-Lived Intangible Assets | |||||||||||||||||
Indefinite-lived intangible assets consist of IPR&D assets related to both early and late stage product candidates purchased in the acquisitions of Huxley, LEAD Therapeutics, Inc. (LEAD), ZyStor Therapeutics, Inc. (ZyStor) and Zacharon. In estimating fair value of the IPR&D assets, the Company compensated for the differing phases of development of each asset by probability-adjusting its estimation of the expected future cash flows associated with each asset. The Company then determined the present value of the expected future cash flows. The projected cash flows from the IPR&D assets were based on key assumptions such as estimates of revenues and operating profits related to the feasibility and timing of achievement of development, regulatory and commercial milestones, expected costs to develop the IPR&D into commercially viable products and future expected cash flows from product sales. | |||||||||||||||||
Indefinite-lived intangible assets consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
In-Process Research and Development: | |||||||||||||||||
BMN 673 acquired through LEAD | $ | 35,150 | $ | 36,089 | |||||||||||||
BMN 701 acquired through ZyStor | 25,010 | 25,010 | |||||||||||||||
SENSI-Pro assay acquired through Zacharon | 11,680 | 0 | |||||||||||||||
Other acquired pre-clinical compounds | 2,590 | 2,590 | |||||||||||||||
Net carrying value | $ | 74,430 | $ | 63,689 | |||||||||||||
Intangible assets related to IPR&D assets are considered to be indefinite-lived until the completion or abandonment of the associated research and development efforts. During the period the assets are considered indefinite-lived, they will not be amortized but will be tested for impairment on an annual basis and between annual tests if the Company becomes aware of any events occurring or changes in circumstances that would indicate a reduction in the fair value of the IPR&D assets below their respective carrying amounts. If and when development is complete, which generally occurs if and when regulatory approval to market a product is obtained, the associated assets would be deemed finite-lived and would then be amortized based on their respective estimated useful lives at that point in time. | |||||||||||||||||
During the fourth quarter of 2013, the Company performed its annual impairment review and determined that no impairments existed as of December 31, 2013. | |||||||||||||||||
During the first quarter of 2012, the Company recorded an impairment charge of $6.7 million related to certain Firdapse IPR&D assets. These IPR&D assets were associated with marketing rights in the U.S. The Company was exploring strategic options for the Firdapse U.S. program, including the potential outlicense of rights in the U.S. In March 2012, the Company recognized an impairment charge based on the status of business development efforts at the time and the related discounted cash flow projections that no longer supported the carrying-value of the IPR&D intangible assets. The impairment charge was included in Intangible Asset Amortization and Contingent Consideration in the Company’s Consolidated Statement of Operations for the year ended December 31, 2012. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
PROPERTY, PLANT AND EQUIPMENT | ' | ||||||||
(11) PROPERTY, PLANT AND EQUIPMENT | |||||||||
Property, plant and equipment, net consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Leasehold improvements | $ | 73,973 | $ | 65,918 | |||||
Building and improvements | 159,125 | 144,700 | |||||||
Manufacturing and laboratory equipment | 95,126 | 79,915 | |||||||
Computer hardware and software | 74,948 | 56,011 | |||||||
Furniture and equipment | 12,367 | 11,143 | |||||||
Land | 11,608 | 11,608 | |||||||
Construction-in-progress | 77,212 | 64,300 | |||||||
504,359 | 433,595 | ||||||||
Less: Accumulated depreciation | (185,043 | ) | (149,122 | ) | |||||
Total property, plant and equipment, net | $ | 319,316 | $ | 284,473 | |||||
Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $36.5 million, $34.9 million and $31.9 million, respectively, of which $11.0 million, $7.3 million and $6.6 million was capitalized into inventory, respectively. | |||||||||
As of December 31, 2013 and 2012, $59.1 million and $53.5 million, respectively of our property, plant and equipment was related to the Company’s manufacturing facilities in Shanbally, Cork, Ireland. | |||||||||
On December 17, 2013, the Company entered into a Contract of Purchase and Sale and Joint Escrow Instructions (the Purchase Agreement) to purchase the office complex and vacant land commonly known as the San Rafael Corporate Center (the SRCC), located in the City of San Rafael, California. The Company currently leases approximately 40% of the complex, which it uses as its corporate headquarters. Subject to the adjustments provided in the Purchase Agreement, the purchase price of the SRCC is expected to be $116.5 million. At December 31, 2013 the Company had deposited $116.5 million into escrow in connection with the pending transaction which is expected to close during the first quarter of 2014. The Purchase Agreement contains customary representations and warranties, covenants, closing conditions and termination provisions. See Note 24 to these Consolidated Financial Statements for additional discussion regarding the Company’s Minimum Lease Commitments related to SRCC. | |||||||||
Capitalized interest related to the Company’s property, plant and equipment purchases for each of the three years ended December 31, 2013 was insignificant. |
INVENTORY
INVENTORY | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
INVENTORY | ' | ||||||||
(12) INVENTORY | |||||||||
Inventory consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 15,309 | $ | 11,943 | |||||
Work-in-process | 88,417 | 71,443 | |||||||
Finished goods | 58,879 | 45,309 | |||||||
Total inventory | $ | 162,605 | $ | 128,695 | |||||
Inventory as of December 31, 2013 and 2012 included $40.5 million and $0, respectively, of VIMIZIM inventory related to the pre-launch VIMIZIM manufacturing campaign. The Company believes that all material uncertainties related to the ultimate regulatory approval of VIMIZIM for commercial sale have been significantly reduced based on positive data from Phase 3 clinical trial results, successful pre-filing meetings with the FDA for the Biologics License Application (the BLA), the filing of the BLA with the FDA in the first quarter of 2013, and the filing of the Marketing Authorization Application (MAA) filed with the EMA in April 2013. In its evaluation, the Company also considered its historical experience with developing and commercially producing similar products. | |||||||||
Inventory as of December 31, 2013 and 2012 also included $0.3 million and $12.0 million, respectively, of product manufactured using certain process and specification changes that have not yet received regulatory approval. Although a product may have been approved by a regulatory agency, the process and specification changes must also be approved before product produced with the alternate processes and specifications can be sold commercially. | |||||||||
The Company expects to receive regulatory approval and has determined that it is probable that the Company will realize the future economic benefit associated with the costs of these inventories through future sales. |
SUPPLEMENTAL_BALANCE_SHEET_INF
SUPPLEMENTAL BALANCE SHEET INFORMATION | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
SUPPLEMENTAL BALANCE SHEET INFORMATION | ' | ||||||||||||||||||||||||
(13) SUPPLEMENTAL BALANCE SHEET INFORMATION | |||||||||||||||||||||||||
Other Assets consisted of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deposits | $ | 7,196 | $ | 6,844 | |||||||||||||||||||||
Restricted investments | 412 | 3,493 | |||||||||||||||||||||||
Escrow balance for SRCC purchase | 116,500 | 0 | |||||||||||||||||||||||
Deferred offering costs | 15,374 | 3,675 | |||||||||||||||||||||||
Strategic investment | 13,000 | 2,933 | |||||||||||||||||||||||
Other | 3,689 | 2,599 | |||||||||||||||||||||||
Total other assets | $ | 156,171 | $ | 19,544 | |||||||||||||||||||||
Accounts payable and accrued liabilities consisted of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Accounts payable | $ | 36,894 | $ | 23,993 | |||||||||||||||||||||
Accrued accounts payable | 58,408 | 43,156 | |||||||||||||||||||||||
Accrued vacation expense | 10,487 | 8,403 | |||||||||||||||||||||||
Accrued compensation expense | 33,496 | 27,530 | |||||||||||||||||||||||
Accrued royalties payable | 5,829 | 4,991 | |||||||||||||||||||||||
Accrued rebates payable | 10,429 | 9,625 | |||||||||||||||||||||||
Other accrued operating expenses | 4,875 | 6,179 | |||||||||||||||||||||||
Current portion of nonqualified deferred compensation liability | 1,363 | 6,440 | |||||||||||||||||||||||
Value added taxes payable | 3,603 | 2,072 | |||||||||||||||||||||||
Current portion of contingent acquisition consideration payable | 11,882 | 10,764 | |||||||||||||||||||||||
Other | 6,005 | 3,915 | |||||||||||||||||||||||
Total accounts payable and accrued liabilities | $ | 183,271 | $ | 147,068 | |||||||||||||||||||||
The roll forward of significant estimated accrued rebates, reserve for cash discounts and allowance for doubtful accounts for 2013, 2012 and 2011 was as follows: | |||||||||||||||||||||||||
Balance at | Provision | Provision/ | Actual Charges | Actual Charges | Balance at | ||||||||||||||||||||
Beginning | for Current | (Reversals) | Related to | Related to | End of | ||||||||||||||||||||
of Period | Period Sales | for Prior | Current | Prior Period | Period | ||||||||||||||||||||
Period Sales | Period Sales | Sales | |||||||||||||||||||||||
Year ended December 31, 2013: | |||||||||||||||||||||||||
Accrued rebates | $ | 9,625 | $ | 18,872 | $ | (1,169 | ) | $ | (12,025 | ) | $ | (4,874 | ) | $ | 10,429 | ||||||||||
Reserve for cash discounts | 372 | 4,549 | 0 | (4,191 | ) | (342 | ) | 388 | |||||||||||||||||
Sales return reserve | 0 | 907 | 0 | 0 | 0 | 907 | |||||||||||||||||||
Allowance for doubtful accounts | 348 | 138 | 43 | 0 | 0 | 529 | |||||||||||||||||||
Year ended December 31, 2012: | |||||||||||||||||||||||||
Accrued rebates | $ | 6,025 | $ | 16,449 | $ | (434 | ) | $ | (8,193 | ) | $ | (4,222 | ) | $ | 9,625 | ||||||||||
Reserve for cash discounts | 342 | 4,214 | 0 | (4,184 | ) | 0 | 372 | ||||||||||||||||||
Allowance for doubtful accounts | 513 | 0 | (165 | ) | 0 | 0 | 348 | ||||||||||||||||||
Year ended December 31, 2011: | |||||||||||||||||||||||||
Accrued rebates | $ | 5,899 | $ | 14,369 | $ | (639 | ) | $ | (10,042 | ) | $ | (3,562 | ) | $ | 6,025 | ||||||||||
Reserve for cash discounts | 304 | 3,543 | 0 | (3,209 | ) | (296 | ) | 342 | |||||||||||||||||
Allowance for doubtful accounts | 64 | 0 | 1,053 | 0 | (604 | ) | 513 |
DERIVATIVE_INSTRUMENTS_AND_HED
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES | ' | ||||||||||||
(14) DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES | |||||||||||||
Foreign Currency Exchange Rate Exposure | |||||||||||||
The Company uses forward foreign currency exchange contracts to hedge certain operational exposures resulting from changes in foreign currency exchange rates. Such exposures result from portions of the Company’s forecasted revenues and operating expenses being denominated in currencies other than the U.S. dollar, primarily the Euro, the British Pound and Brazilian Real. | |||||||||||||
The Company designates certain of these forward foreign currency exchange contracts as hedging instruments and enters into some forward foreign currency exchange contracts that are considered to be economic hedges that are not designated as hedging instruments. Whether designated or undesignated, these forward foreign currency exchange contracts protect against the reduction in value of forecasted foreign currency cash flows resulting from Naglazyme product revenues, Aldurazyme royalty revenues, operating expenses and net asset or liability positions designated in currencies other than the U.S. dollar. The fair values of forward foreign currency exchange contracts are estimated using current exchange rates and interest rates, and take into consideration the current creditworthiness of the counterparties or the Company, as applicable. Details of the specific instruments used by the Company to hedge its exposure to foreign currency exchange rate fluctuations are discussed below. See Note 15 to these Consolidated Financial Statements for additional discussion regarding the fair value of forward foreign currency exchange contracts. | |||||||||||||
At December 31, 2013, the Company had 34 forward foreign currency exchange contracts outstanding to sell a total of 41.8 million Euros with expiration dates ranging from January 2014 through December 2014. These hedges were entered into in order to protect against the fluctuations in revenue associated with Euro denominated Naglazyme and Aldurazyme sales. The Company has formally designated these forward foreign currency exchange contracts as cash flow hedges and expects them to be highly effective in offsetting fluctuations in revenues denominated in Euros related to changes in foreign currency exchange rates. | |||||||||||||
The Company also enters into forward foreign currency exchange contracts that are not designated as hedges for accounting purposes. The changes in fair value of these forward foreign currency exchange contracts are included as a part of Selling, General and Administrative expense in the Company’s Consolidated Statements of Operations. At December 31, 2013, the Company had one outstanding forward foreign currency exchange contract to sell 36.7 million Euros, which was not designated as a hedge for accounting purposes and which matured on January 31, 2014. | |||||||||||||
The maximum length of time over which the Company is hedging its exposure to the reduction in value of forecasted foreign currency cash flows through forward foreign currency exchange contracts is through December 31, 2014. Over the next twelve months, the Company expects to reclassify $2.4 million from accumulated other comprehensive income to earnings as the forecasted revenue transactions. | |||||||||||||
The fair value carrying amounts of the Company’s derivative instruments were as follows: | |||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
December 31, 2013 | December 31, 2013 | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 0 | Accounts payable and | $ | 2,186 | |||||||
accrued liabilities | |||||||||||||
Forward foreign currency exchange contracts | Other assets | 0 | Other long- term liabilities | 0 | |||||||||
Total | $ | 0 | $ | 2,186 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 59 | Accounts payable and | $ | 0 | |||||||
accrued liabilities | |||||||||||||
Total | 59 | 0 | |||||||||||
Total value of derivative contracts | $ | 59 | $ | 2,186 | |||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
December 31, 2012 | December 31, 2012 | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 1,463 | Accounts payable and | $ | 1,078 | |||||||
accrued liabilities | |||||||||||||
Forward foreign currency exchange contracts | Other assets | 0 | Other long- term liabilities | 368 | |||||||||
Total | $ | 1,463 | $ | 1,446 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 84 | Accounts payable and | $ | 0 | |||||||
accrued liabilities | |||||||||||||
Total | 84 | 0 | |||||||||||
Total value of derivative contracts | $ | 1,547 | $ | 1,446 | |||||||||
The effect of the Company’s derivative instruments on the Consolidated Financial Statements for the years ended December 31, 2013, 2012 and 2011 was as follows: | |||||||||||||
Forward Foreign Currency Exchange Contracts | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||
Net gain (loss) recognized in Other Comprehensive Income (OCI) (1) | $ | (1,366 | ) | $ | (8,749 | ) | $ | 8,163 | |||||
Net gain (loss) reclassified from accumulated OCI into income (2) | 49 | (3,683 | ) | 2,989 | |||||||||
Net gain (loss) recognized in income (3) | 310 | 927 | (1,486 | ) | |||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||
Net gain (loss) recognized in income (4) | $ | (2,041 | ) | $ | 674 | $ | 674 | ||||||
-1 | Net change in the fair value of the effective portion classified as OCI. | ||||||||||||
-2 | Effective portion classified as net product revenue. | ||||||||||||
-3 | Ineffective portion and amount excluded from effectiveness testing classified as selling, general and administrative expense. | ||||||||||||
-4 | Classified as selling, general and administrative expense. | ||||||||||||
At December 31, 2013, 2012 and 2011, accumulated other comprehensive income before taxes associated with forward foreign currency exchange contracts qualifying for hedge accounting treatment was a loss of $2.4 million and a gain of $0.2 million and a loss of $8.0 million, respectively. | |||||||||||||
The Company is exposed to counterparty credit risk on all of its derivative financial instruments. The Company has established and maintains strict counterparty credit guidelines and enters into hedges only with financial institutions that are investment grade or better to minimize the Company’s exposure to potential defaults. The Company does not require collateral to be pledged under these agreements. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
(15) FAIR VALUE MEASUREMENTS | |||||||||||||||||
The Company measures certain financial assets and liabilities at fair value on a recurring basis, including available-for-sale fixed income securities and foreign currency derivatives. The tables below present the fair value of these financial assets and liabilities determined using the following input levels. | |||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||
Quoted Price in | Significant Other | Significant | Total | ||||||||||||||
Active Markets | Observable Inputs | Unobservable | |||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Overnight deposits | $ | 156,228 | $ | 0 | $ | 0 | $ | 156,228 | |||||||||
Money market instruments | 0 | 412,553 | 0 | 412,553 | |||||||||||||
Total cash and cash equivalents | $ | 156,228 | $ | 412,553 | $ | 0 | $ | 568,781 | |||||||||
Available-for-sale securities: | |||||||||||||||||
Short-term: | |||||||||||||||||
Certificates of deposit | $ | 0 | $ | 30,513 | $ | 0 | $ | 30,513 | |||||||||
Corporate debt securities | 0 | 99,251 | 0 | 99,251 | |||||||||||||
Commercial paper | 0 | 86,178 | 0 | 86,178 | |||||||||||||
Long-term: | |||||||||||||||||
Certificates of deposit | 0 | 16,497 | 0 | 16,497 | |||||||||||||
Corporate debt securities | 0 | 242,158 | 0 | 242,158 | |||||||||||||
U.S. Government agency securities | 0 | 8,901 | 0 | 8,901 | |||||||||||||
Greek government-issued bonds | 0 | 144 | 0 | 144 | |||||||||||||
Total available-for-sale securities | $ | 0 | $ | 483,642 | $ | 0 | $ | 483,642 | |||||||||
Other Current Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | $ | 0 | $ | 136 | $ | 0 | $ | 136 | |||||||||
Forward foreign currency exchange contract assets (1) | 0 | 59 | 0 | 59 | |||||||||||||
Restricted investments (2) | 0 | 5,670 | 0 | 5,670 | |||||||||||||
Total other current assets | $ | 0 | $ | 5,865 | $ | 0 | $ | 5,865 | |||||||||
Other Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | $ | 0 | $ | 3,459 | $ | 0 | $ | 3,459 | |||||||||
Restricted investments (2) | 0 | 412 | 0 | 412 | |||||||||||||
Strategic investment (3) | 13,000 | 0 | 0 | 13,000 | |||||||||||||
Total other assets | $ | 13,000 | $ | 3,871 | $ | 0 | $ | 16,871 | |||||||||
Total assets | $ | 169,228 | $ | 905,931 | $ | 0 | $ | 1,075,159 | |||||||||
Liabilities: | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 1,227 | $ | 136 | $ | 0 | $ | 1,363 | |||||||||
Forward foreign currency exchange contract liability (1) | 0 | 2,186 | 0 | 2,186 | |||||||||||||
Contingent acquisition consideration payable | 0 | 0 | 11,882 | 11,882 | |||||||||||||
Total current liabilities | $ | 1,227 | $ | 2,322 | $ | 11,882 | $ | 15,431 | |||||||||
Other long-term liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 12,345 | $ | 3,459 | $ | 0 | $ | 15,804 | |||||||||
Contingent acquisition consideration payable | 0 | 0 | 30,790 | 30,790 | |||||||||||||
Asset retirement obligation | 0 | 0 | 4,122 | 4,122 | |||||||||||||
Total other long-term liabilities | $ | 12,345 | $ | 3,459 | $ | 34,912 | $ | 50,716 | |||||||||
Total liabilities | $ | 13,572 | $ | 5,781 | $ | 46,794 | $ | 66,147 | |||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||
Quoted Price in | Significant Other | Significant | Total | ||||||||||||||
Active Markets | Observable Inputs | Unobservable | |||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Overnight deposits | $ | 54,018 | $ | 0 | $ | 0 | $ | 54,018 | |||||||||
Money market instruments | 0 | 126,509 | 0 | 126,509 | |||||||||||||
Total cash and cash equivalents | $ | 54,018 | $ | 126,509 | $ | 0 | $ | 180,527 | |||||||||
Available-for-sale securities: | |||||||||||||||||
Short-term: | |||||||||||||||||
Certificates of deposit | $ | 0 | $ | 36,615 | $ | 0 | $ | 36,615 | |||||||||
Corporate debt securities | 0 | 222,147 | 0 | 222,147 | |||||||||||||
U.S. Government agency securities | 0 | 8,516 | 0 | 8,516 | |||||||||||||
Long-term: | |||||||||||||||||
Certificates of deposit | 0 | 12,139 | 0 | 12,139 | |||||||||||||
Corporate debt securities | 0 | 94,753 | 0 | 94,753 | |||||||||||||
U.S. Government agency securities | 0 | 9,001 | 0 | 9,001 | |||||||||||||
Greek government-issued bonds | 0 | 100 | 0 | 100 | |||||||||||||
Total available-for-sale securities | $ | 0 | $ | 383,271 | $ | 0 | $ | 383,271 | |||||||||
Other Current Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | $ | 0 | $ | 2,052 | $ | 0 | $ | 2,052 | |||||||||
Forward foreign currency exchange contract asset (1) | 0 | 1,547 | 0 | 1,547 | |||||||||||||
Restricted investments (2) | 0 | 2,243 | 0 | 2,243 | |||||||||||||
Total other current assets | $ | 0 | $ | 5,842 | $ | 0 | $ | 5,842 | |||||||||
Other Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | $ | 0 | $ | 2,375 | $ | 0 | $ | 2,375 | |||||||||
Restricted investments (2) | 0 | 3,492 | 0 | 3,492 | |||||||||||||
Strategic investment (3) | 2,933 | 0 | 0 | 2,933 | |||||||||||||
Total other assets | $ | 2,933 | $ | 5,867 | $ | 0 | $ | 8,800 | |||||||||
Total assets | $ | 56,951 | $ | 521,489 | $ | 0 | $ | 578,440 | |||||||||
Liabilities: | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 6,440 | $ | 0 | $ | 0 | $ | 6,440 | |||||||||
Forward foreign currency exchange contract liability (1) | 0 | 1,078 | 0 | 1,078 | |||||||||||||
Contingent acquisition consideration payable | 0 | 0 | 10,764 | 10,764 | |||||||||||||
Asset retirement obligation | 0 | 0 | 1,685 | 1,685 | |||||||||||||
Total current liabilities | $ | 6,440 | $ | 1,078 | $ | 12,449 | $ | 19,967 | |||||||||
Other long-term liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 5,041 | $ | 4,427 | $ | 0 | $ | 9,468 | |||||||||
Forward foreign currency exchange contract liability (1) | 0 | 368 | 0 | 368 | |||||||||||||
Contingent acquisition consideration payable | 0 | 0 | 30,618 | 30,618 | |||||||||||||
Asset retirement obligation | 0 | 0 | 2,192 | 2,192 | |||||||||||||
Total other long-term liabilities | $ | 5,041 | $ | 4,795 | $ | 32,810 | $ | 42,646 | |||||||||
Total liabilities | $ | 11,481 | $ | 5,873 | $ | 45,259 | $ | 62,613 | |||||||||
-1 | See Note 14 to these Consolidated Financial Statements for further information regarding the derivative instruments. | ||||||||||||||||
-2 | The restricted investments secure the Company’s irrevocable standby letter of credit obtained in connection with the Company’s new corporate facility lease agreements and certain commercial agreements. | ||||||||||||||||
-3 | The Company has an investment in marketable equity securities measured using quoted prices in an active market that is considered a strategic investment. See Note 6 to these Consolidated Financial Statements for additional discussion regarding the Company’s strategic investment. | ||||||||||||||||
There were no transfers between levels during the year ended December 31, 2013. | |||||||||||||||||
The Company’s Level 2 securities are valued using third-party pricing sources. The pricing services utilize industry standard valuation models, including both income and market-based approaches, for which all significant inputs are observable, either directly or indirectly, to estimate fair value. These inputs include reported trades of and broker/dealer quotes on the same or similar securities, issuer credit spreads, benchmark securities, prepayment/default projections based on historical data and other observable inputs. | |||||||||||||||||
The Company validates the prices provided by its third-party pricing services by understanding the models used, obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming those securities traded in active markets. See Note 8 to these Consolidated Financial Statements for further information regarding the Company’s financial instruments. | |||||||||||||||||
Liabilities measured at fair value using Level 3 inputs were comprised of contingent acquisition consideration payable and asset retirement obligations. | |||||||||||||||||
The Company’s contingent acquisition consideration payable is estimated using a probability-based income approach utilizing an appropriate discount rate. Key assumptions used by management to estimate the fair value of contingent acquisition consideration payable include estimated probabilities, the estimated timing of when a milestone may be attained and assumed discount periods and rates. Subsequent changes in the fair value of the contingent acquisition consideration payable, resulting from management’s revision of key assumptions, will be recorded in Intangible Asset Amortization and Contingent Consideration in the Company’s Consolidated Statements of Operations. | |||||||||||||||||
Contingent acquisition consideration payable at December 31, 2012 | $ | 41,382 | |||||||||||||||
Changes in the fair value of the contingent acquisition consideration payable | 14,453 | ||||||||||||||||
Addition of contingent consideration payable related to the Zacharon acquisition | 1,857 | ||||||||||||||||
Milestone payments to former LEAD shareholders | (15,020 | ) | |||||||||||||||
Contingent acquisition consideration payable at December 31, 2013 | $ | 42,672 | |||||||||||||||
Under certain of the Company’s lease agreements, the Company is contractually obligated to return leased space to its original condition upon termination of the lease agreement. The Company records an asset retirement obligation liability and a corresponding capital asset in an amount equal to the estimated fair value of the obligation when estimable. In subsequent periods, for each such lease, the Company records interest expense to accrete the asset retirement obligation liability to full value and depreciates each capitalized asset retirement obligation asset, both over the term of the associated lease agreement. | |||||||||||||||||
Asset retirement obligations at December 31, 2012 | $ | 3,877 | |||||||||||||||
Accretion | 155 | ||||||||||||||||
Accruals added for new leases | 90 | ||||||||||||||||
Asset retirement obligations at December 31, 2013 | $ | 4,122 | |||||||||||||||
The Company acquired intangible assets as a result of various business acquisitions. The estimated fair value of these long-lived assets was measured using Level 3 inputs as of the acquisition date. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2013 | |
STOCKHOLDERS' EQUITY | ' |
(16) STOCKHOLDERS’ EQUITY | |
2012 Inducement Plan | |
On May 8, 2012, the Board of Directors approved the 2012 Inducement Plan (the 2012 Inducement Plan), which provides for grants of up to 750,000 share-based awards to new employees, including grants of restricted stock units (RSUs) and grants of options to purchase common stock at a price equal to the fair market value of such shares on the date of grant. The awards are substantially similar to those granted under the Company’s 2006 Share Incentive Plan as amended and restated on March 22, 2010 (the Share Incentive Plan). The 2012 Inducement Plan expired in March 2013. | |
Share Incentive Plan | |
BioMarin’s 2006 Share Incentive Plan (Share Incentive Plan), which replaced the Company’s previous stock option plans (the 1997 Stock Plan and the 1998 Directors Options Plan), provides for grants of options to employees to purchase common stock at the fair market value of such shares on the grant date, as well as other forms of equity compensation. As of December 31, 2013, awards issued under the 2006 Share Incentive Plan include both stock options and restricted RSUs. Stock option awards granted to employees generally vest over a four-year period on a cliff basis six months after the grant date and then monthly thereafter. The term of the outstanding options is generally ten years. RSUs granted to employees generally vest in a straight-line annually over a four-year period after the grant date. Restricted stock units granted to directors generally vest in full one year after the grant date. | |
As of December 31, 2013, options to purchase approximately 0.4 million, 12.3 million and 0.5 million shares were outstanding under the 2012 Inducement Plan, the Share Incentive Plan, and the Company’s previous stock option plans, respectively. | |
As of December 31, 2013, an aggregate of approximately 21.5 million and 0.7 million unissued shares were authorized for future issuance under the Share Incentive Plan and 2012 Inducement Plan, respectively. | |
Employee Stock Purchase Plan | |
Under BioMarin’s ESPP, which was approved in June 2006 and replaced the Company’s previous plan, employees meeting specific employment qualifications are eligible to participate and can purchase shares on established dates (each purchase date) semi-annually through payroll deductions at the lower of 85% of the fair market value of the stock at the commencement of the offering period or each purchase date of the offering period. Each offering period will span up to two years. The ESPP permits eligible employees to purchase common stock through payroll deductions for up to 10% of qualified compensation, up to an annual limit of $25,000. The ESPP is intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. During 2013, the Company issued 253,710 shares under the ESPP. | |
As of December 31, 2013 there were approximately 0.4 million shares reserved for future issuance under the ESPP. | |
Board of Director Grants | |
An initial option is granted to each new outside member of BioMarin’s Board of Directors to purchase 30,000 shares of common stock at the fair value on the date of the grant. Until January 2007, on each anniversary date of becoming a director, each outside director was granted options to purchase 30,000 shares of common stock at the fair market value on such date. Currently, on the date of each annual meeting of stockholders, other than newly elected directors, each outside director is granted options for the purchase of 15,000 shares of common stock and 2,500 RSUs. The options vest over one year and have a term of ten years. The RSUs vest on the one year anniversary of the date of grant. | |
Stockholders’ Rights Plan | |
The Company’s Rights Plan expired on May 30, 2012. As a result, each outstanding share of the Company’s common stock is no longer accompanied by a Right. The holders of common stock were not entitled to any payment as a result of the expiration of the Rights Agreement and the Rights issued thereunder. | |
At December 31, 2013, an aggregate of approximately 23.2 million unissued shares was authorized for future issuance under the Company’s stock plans, which includes shares issuable under the Share Incentive Plan and the ESPP. Under the Share Incentive Plan awards that expire or are cancelled without delivery of shares generally become available for issuance under the respective plan. Awards that expire or are cancelled under the Company’s suspended 1997 Stock Plan, 1998 Director Option Plan or 2012 Inducement Plan may not be reissued. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||||||
(17) STOCK-BASED COMPENSATION | |||||||||||||||||
The following table summarizes activity under the Company’s stock option plans, including the 2012 Inducement Plan and those suspended upon the adoption of the Share Incentive Plan for the year ended December 31, 2013. All option grants presented in the table had exercise prices not less than the fair value of the underlying common stock on the grant date: | |||||||||||||||||
Shares | Weighted- | Weighted | Aggregate Intrinsic | ||||||||||||||
Average | Average | Value (1) | |||||||||||||||
Exercise Price | Remaining Years | ||||||||||||||||
Options outstanding as of December 31, 2012 | 13,865,151 | $ | 25.69 | ||||||||||||||
Granted | 2,555,122 | $ | 66.75 | ||||||||||||||
Exercised | (2,885,052 | ) | $ | 22.73 | |||||||||||||
Expired and forfeited | (377,938 | ) | $ | 34.43 | |||||||||||||
Options outstanding as of December 31, 2013 | 13,157,283 | $ | 34.06 | 6.7 | $ | 477,618 | |||||||||||
Options expected to vest at December 31, 2013 | 4,156,902 | $ | 47.23 | 96,260 | |||||||||||||
Exercisable at December 31, 2013 | 8,394,774 | $ | 26.33 | 5.7 | $ | 369,564 | |||||||||||
-1 | The aggregate intrinsic value for outstanding options is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock as of the last trading day of fiscal 2013. The aggregate intrinsic value of options outstanding and exercisable includes options with an exercise price below $70.35, the closing price of the Company’s common stock on December 31, 2013. | ||||||||||||||||
The weighted-average fair value per option granted in the years ended December 31, 2013, 2012 and 2011 was $30.77, $37.70 and $27.89, respectively. The total intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $119.2 million, $94.6 million and $25.1 million, respectively. The aggregate intrinsic value of options exercised was determined as of the date of option exercise. Upon the exercise of the options, the Company issues new common stock from its authorized shares. | |||||||||||||||||
There were 13.1 million options that were in-the-money at December 31, 2013. | |||||||||||||||||
Determining the Fair Value of Stock Options and Stock Purchase Rights | |||||||||||||||||
The fair value of each option award is estimated on the date of grant using the Black-Scholes valuation model and the assumptions noted in the tables below. The expected life of options is based on observed historical exercise patterns. Groups of employees that have similar historical exercise patterns were considered separately for valuation purposes, but none were identified that had distinctly different exercise patterns as of December 31, 2013. The expected volatility of stock options is based upon the weighted average of the historical volatility of the Company’s common stock and the implied volatility of traded options on the Company’s common stock for fiscal periods in which there is sufficient trading volume in options on the Company’s common stock. The risk-free interest rate is based on the implied yield on a U.S. Treasury zero-coupon issue with a remaining term equal to the expected term of the option. The dividend yield reflects that the Company has not paid any cash dividends since inception and does not intend to pay any cash dividends in the foreseeable future. The assumptions used to estimate the per share fair value of stock options granted under the 2012 Inducement Plan and the 2006 Share Incentive Plan were as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected volatility | 44 – 47% | 45 – 46% | 46 – 50% | ||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||||
Expected life | 6.6 – 6.8 years | 6.5 years | 6.3 – 6.4 years | ||||||||||||||
Risk-free interest rate | 1.0 – 2.4% | 0.8 – 1.1% | 1.2 – 2.7% | ||||||||||||||
The Company recorded $37.0 million, $32.8 million and $31.7 million of compensation costs related to current period vesting of stock options for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, the total unrecognized compensation cost related to unvested stock options was $102.1 million. These costs are expected to be recognized over a weighted average period of 2.8 years. | |||||||||||||||||
The assumptions used to estimate the per share fair value of stock purchase rights granted under the ESPP were as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected volatility | 37% | 31% | 32-48% | ||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||||
Expected life | 6-24 months | 6-24 months | 6-24 months | ||||||||||||||
Risk-free interest rate | 0.1-0.3% | 0.2-0.3% | 0.1-0.6% | ||||||||||||||
The Company recorded $3.6 million, $2.9 million and $2.4 million of compensation costs related to options granted under the ESPP for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, there was $5.0 million of total unrecognized compensation cost related to unvested stock options issuable under the ESPP. These costs are expected to be recognized over a weighted average period of 1.5 years. | |||||||||||||||||
Restricted Stock Unit Awards with Service-Based Vesting Conditions | |||||||||||||||||
RSUs are generally subject to forfeiture if employment terminates prior to the release of vesting restrictions. The Company expenses the cost of the RSUs, which is determined to be the fair market value of the shares of common stock underlying the RSUs at the date of grant, ratably over the period during which the vesting restrictions lapse. | |||||||||||||||||
A summary of non-vested RSU activity under the plan for the year ended December 31, 2013 as follows: | |||||||||||||||||
Shares | Weighted | Weighted | Aggregate Intrinsic | ||||||||||||||
Average Grant | Average | Value | |||||||||||||||
Date Fair | Remaining Years | ||||||||||||||||
Value | |||||||||||||||||
Non-vested units as of December 31, 2012 | 898,949 | $ | 33.1 | ||||||||||||||
Granted | 592,001 | $ | 66.81 | ||||||||||||||
Vested | (300,968 | ) | $ | 30.69 | |||||||||||||
Forfeited | (56,147 | ) | $ | 40.8 | |||||||||||||
Non-vested units as of December 31, 2013 | 1,133,835 | $ | 50.97 | 8.7 | $ | 79,765 | |||||||||||
Non-vested units expected to vest at December 31, 2013 | 1,039,520 | $ | 50.62 | $ | 73,130 | ||||||||||||
The weighted-average grant date fair value per share of RSUs granted during the years ended December 31, 2013, 2012 and 2011, was $66.81, $37.81 and $27.47, respectively. The total fair value of restricted stock that vested and was released in the years ended December 31, 2013, 2012 and 2011 was $19.7 million, $7.7 million and $4.2 million, respectively. | |||||||||||||||||
The Company recorded $13.0 million, $7.3 million and $4.5 million of compensation costs related to RSUs with service-based vesting conditions for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, there was $46.6 million of total unrecognized compensation cost related to unvested RSUs with service-based vesting conditions. These costs are expected to be recognized over a weighted average period of 3.0 years. | |||||||||||||||||
Restricted Stock Unit Awards with Performance and Market-Based Vesting Conditions | |||||||||||||||||
Pursuant to the approval of the Board the Company granted RSU awards with performance and market-based vesting conditions to certain executive officers that provide for a base award of 860,000 RSUs in total (Base RSUs) that may be adjusted to 75% to 125% depending on the performance of the Company’s stock as discussed further below. A summary of non-vested Base RSU activity under the plans for the year ended December 31, 2013 is as follows: | |||||||||||||||||
Base Awards | Weighted | Weighted | Aggregate | ||||||||||||||
Average Grant | Average | Intrinsic Value | |||||||||||||||
Date Fair | Remaining | ||||||||||||||||
Value | Years | ||||||||||||||||
Non-vested units with performance and market vesting conditions as of December 31, 2012 | 875,000 | $ | 33.83 | ||||||||||||||
Granted | 0 | ||||||||||||||||
Vested | 0 | ||||||||||||||||
Forfeited | (15,000 | ) | $ | 32.61 | |||||||||||||
Non-vested units with performance and market vesting conditions as of December 31, 2013 | 860,000 | $ | 34.66 | 2.2 | $ | 60,501 | |||||||||||
The number of RSUs that could potentially vest from the Base RSUs granted is contingent upon achievement of specific performance goals and will be multiplied by the Total Shareholder Return (the TSR) multiplier which could range from 75% to 125% to determine the number of earned RSUs. | |||||||||||||||||
The vesting of the Base RSUs under these specific grants is contingent upon the achievement of multiple performance conditions, as follows: | |||||||||||||||||
Strategic Performance Goals | Percentage of Base | Base Number of | |||||||||||||||
RSUs to | RSUs Granted | ||||||||||||||||
Vest Upon | Before TSR | ||||||||||||||||
Achievement of Goal | Multiplier | ||||||||||||||||
Product Goals | |||||||||||||||||
Approval of VIMIZIM in the U.S. or EU prior to December 31, 2015 | 35 | % | 301,000 | ||||||||||||||
Approval of PEG PAL or any other non-VIMIZIM product in the U.S. or EU prior to December 31, 2015 | 25 | % | 215,000 | ||||||||||||||
Financial Goal | |||||||||||||||||
Total revenues of at least $775.0 million in fiscal 2015 | 40 | % | 344,000 | ||||||||||||||
860,000 | |||||||||||||||||
The number of RSUs that could potentially vest from the Base RSUs granted is contingent upon achievement of specific performance goals and will be multiplied by the TSR multiplier which could range from 75% to 125% to determine the number of earned RSUs. The TSR multiplier will be determined based on the Company’s TSR percentile ranking relative to the TSR of the NASDAQ Biotechnology Index on December 31, 2015. TSR is calculated based on the 20-trading day average prices before the beginning and end of the performance period of the Company’s common stock and each comparator company in the NASDAQ Biotechnology Index. The measurement period for the performance and TSR conditions is from the grant date through December 31, 2015, subject to certain change of control provisions (the Performance Period). The RSUs earned at the end of the Performance Period will vest on the filing date of the Company’s Annual Report on Form 10-K for the 2015 fiscal year, subject to certain holding periods. The maximum number of RSUs that could vest if all performance conditions are achieved and a TSR multiplier of 125% is applied would be 1,075,000 RSUs. | |||||||||||||||||
The Company utilized a Monte Carlo simulation model to estimate the TSR multiplier and determined the grant date fair value on each of the grant dates. The assumptions used to estimate the fair value of the RSUs with performance and market vesting conditions were as follows: | |||||||||||||||||
Grant Date | |||||||||||||||||
September 5, 2012 | May 29, 2012 | June 1, 2011 | |||||||||||||||
Fair value of the Company’s common stock on grant date | $ | 37.45 | $ | 39.06 | $ | 28.11 | |||||||||||
Expected volatility | 31.73 | % | 44.87 | % | 47.95 | % | |||||||||||
Risk-free interest rate | 0.37 | % | 0.52 | % | 1.42 | % | |||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
The Monte Carlo simulation model also assumed correlations of returns of the stock prices of the Company’s common stock and the common stock of a peer group of companies and historical stock price volatilities of the peer group of companies. The valuation model also used terms based on the length of the performance period and compound annual growth rate goals for total stockholder return based on the provisions of the award. | |||||||||||||||||
Stock-based compensation expense for this award will be recognized over the remaining service period beginning in the period the Company determines the strategic performance goal or goals is probable of achievement. During 2013, management concluded that regulatory approval of VIMIZIM was probable and the Company recorded $6.5 million of compensation expense related to the performance based RSUs allocated to this performance goal. The Company did not recognize compensation expense for these awards for the years ended December 31, 2012 and 2011 because the Company’s management had not yet determined the goals were probable of achievement. As of December 31, 2013, there was $6.3 million of total unrecognized compensation cost related to the unvested awards allocated to the VIMIZIM performance goal. These costs are expected to be recognized over a weighted average period of 2.2 years. | |||||||||||||||||
Compensation expense included in the Company’s Consolidated Statements of Operations for all stock-based compensation arrangements was as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of sales | $ | 4,860 | $ | 4,890 | $ | 5,171 | |||||||||||
Research and development | 27,763 | 20,736 | 16,365 | ||||||||||||||
Selling, general and administrative | 31,753 | 22,346 | 22,283 | ||||||||||||||
Total stock-based compensation expense | $ | 64,376 | $ | 47,972 | $ | 43,819 | |||||||||||
Stock-based compensation of $6.1 million, $4.3 million and $5.3 million was capitalized into inventory, for the years ended December 31, 2013, 2012 and 2011, respectively. Capitalized stock-based compensation is recognized as cost of sales when the related product is sold. |
COMPREHENSIVE_INCOME
COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
COMPREHENSIVE INCOME | ' | ||||||||||||||||
(18) COMPREHENSIVE INCOME | |||||||||||||||||
The following table summarizes amounts reclassified out of Accumulated Other Comprehensive Income/(Loss) (AOCI) and their effect on the Company’s Consolidated Statements of Operations for the year ended December 31, 2013. | |||||||||||||||||
Amount Reclassified | |||||||||||||||||
from AOCI | |||||||||||||||||
(Gain) Loss | |||||||||||||||||
Details about AOCI Components | Year Ended December 31, | Consolidated Statement of | |||||||||||||||
2013 | Operations Classification | ||||||||||||||||
Gains on cash flow hedges: | |||||||||||||||||
Forward foreign currency exchange contracts | $ | (37 | ) | Net product revenues | |||||||||||||
Forward foreign currency exchange contracts | (40 | ) | Selling, general and administrative | ||||||||||||||
28 | Provision for income taxes | ||||||||||||||||
$ | (49 | ) | Net loss | ||||||||||||||
The following table summarizes changes in the accumulated balances for each component, of other comprehensive income/(loss), including current period other comprehensive income and reclassifications out of AOCI, for the year ended December 31, 2013. | |||||||||||||||||
Gains (Losses) | Unrealized | Foreign | Total | ||||||||||||||
on Cash Flow | Gain (Losses) on | Currency | |||||||||||||||
Hedges | Available-for-sale | Translation | |||||||||||||||
Securities | Adjustments | ||||||||||||||||
AOCI balance, net of tax at December 31, 2012 | $ | (97 | ) | $ | 133 | $ | (238 | ) | $ | (202 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (1,366 | ) | 6,275 | 361 | 5,270 | ||||||||||||
Less amounts reclassified from AOCI | 49 | 1 | 0 | 50 | |||||||||||||
Net increase in other comprehensive income (loss) | (1,415 | ) | 6,274 | 361 | 5,220 | ||||||||||||
AOCI balance, net of tax at December 31, 2013 | $ | (1,512 | ) | $ | 6,407 | $ | 123 | $ | 5,018 | ||||||||
REVENUE_AND_CREDIT_CONCENTRATI
REVENUE AND CREDIT CONCENTRATIONS | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
REVENUE AND CREDIT CONCENTRATIONS | ' | ||||||||||||||||||||
(19) REVENUE AND CREDIT CONCENTRATIONS | |||||||||||||||||||||
Net Product Revenue—The Company considers there to be revenue concentration risks for regions where net product revenue exceeds ten percent of consolidated net product revenue. The concentration of the Company’s net product revenue within the regions below may have a material adverse effect on the Company’s revenue and results of operations if sales in the respective regions experience difficulties. | |||||||||||||||||||||
The table below summarizes net product revenue concentrations based on patient location for Naglazyme, Kuvan and Firdapse and Genzyme’s headquarters for Aldurazyme. Although Genzyme sells Aldurazyme worldwide, the royalties earned by the Company on Genzyme’s net sales are included in the U.S. region, as the transactions are with Genzyme whose headquarters are located in the U.S. | |||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Region: | |||||||||||||||||||||
United States | 52 | % | 50 | % | 51 | % | |||||||||||||||
Europe | 22 | % | 22 | % | 23 | % | |||||||||||||||
Latin America | 13 | % | 15 | % | 13 | % | |||||||||||||||
Rest of world | 13 | % | 13 | % | 13 | % | |||||||||||||||
Total net product revenue | 100 | % | 100 | % | 100 | % | |||||||||||||||
The following table illustrates the percentage of the consolidated net product revenue attributed to the Company’s four largest customers. | |||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Customer A | 15 | % | 15 | % | 17 | % | |||||||||||||||
Customer B (1) | 16 | % | 16 | % | 19 | % | |||||||||||||||
Customer C | 9 | % | 12 | % | 10 | % | |||||||||||||||
Customer D | 11 | % | 9 | % | 8 | % | |||||||||||||||
Total | 51 | % | 52 | % | 54 | % | |||||||||||||||
-1 | Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme are comprised of royalties on worldwide net Aldurazyme sales and incremental product transfer revenue. | ||||||||||||||||||||
The accounts receivable balances at December 31, 2013 and 2012 were comprised of amounts due from customers for net product sales of Naglazyme, Kuvan and Firdapse and Aldurazyme product transfer and royalty revenues. On a consolidated basis, the Company’s two largest customers accounted for 45% and 15% of the December 31, 2013 accounts receivable balance, respectively, compared to December 31, 2012 when the two largest customers accounted for 51% and 13% of the accounts receivable balance, respectively. As of December 31, 2013 and December 31, 2012, accounts receivable for the Company’s largest customer balance included $26.3 million and $32.4 million, respectively, of unbilled accounts receivable related to net incremental Aldurazyme product transfers to Genzyme. The Company does not require collateral from its customers, but does perform periodic credit evaluations of its customers’ financial condition and requires immediate payment in certain circumstances. | |||||||||||||||||||||
The Company’s product sales to government-owned or government-funded customers in certain European countries, including Italy, Spain, Portugal and Greece, are subject to payment terms that are statutorily determined. Because these customers are government-owned or government-funded, the Company may be impacted by declines in sovereign credit ratings or sovereign defaults in these countries. A significant or further decline in sovereign credit ratings or a default in these countries may decrease the likelihood that the Company will collect accounts receivable or may increase the discount rates and the length of time until receivables are collected, which could result in a negative impact to the Company’s operating results. In the year ended December 31, 2013, approximately 4% of the Company’s net product revenues were from these countries. Additionally, approximately 16% of the Company’s outstanding accounts receivable at December 31, 2013 related to such countries. | |||||||||||||||||||||
The following table summarizes the accounts receivable by country that were past due related to Italy, Spain, Portugal and Greece, the number of days past due and the total allowance for doubtful accounts related to each of these countries at December 31, 2013. | |||||||||||||||||||||
Days Past Due | |||||||||||||||||||||
< 180 Days | 180 — 360 | > 360 Days | Total Amount | Allowance for | |||||||||||||||||
Days | Past Due | Doubtful | |||||||||||||||||||
Accounts | |||||||||||||||||||||
Italy | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Spain | 2,031 | 1,443 | 2,166 | 5,640 | 0 | ||||||||||||||||
Portugal | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Greece | 0 | 0 | 352 | 352 | 352 | ||||||||||||||||
Total | $ | 2,031 | $ | 1,443 | $ | 2,518 | $ | 5,992 | $ | 352 | |||||||||||
The Company also sells its products in other countries that face economic crises and local currency devaluation. Although the Company has historically collected receivables from customers in those countries, sustained weakness or further deterioration of the local economies and currencies may cause customers in those countries to be unable to pay for the Company’s products. The Company has not historically experienced a significant level of uncollected receivables and has received continued payments from its more aged accounts. The Company believes that the allowances for doubtful accounts related to these countries is adequate based on its analysis of the specific business circumstances and expectations of collection for each of the underlying accounts in these countries. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
INCOME TAXES | ' | ||||||||||||
(20) INCOME TAXES | |||||||||||||
The provision for (benefit from) income taxes is based on income (loss) before income taxes as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. Source | $ | 46,675 | $ | 45,422 | $ | 63,640 | |||||||
Non-U.S. Source | (223,178 | ) | (163,700 | ) | (107,267 | ) | |||||||
Loss before income taxes | $ | (176,503 | ) | $ | (118,278 | ) | $ | (43,627 | ) | ||||
The U.S. and foreign components of the provision for (benefit from) income taxes are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Provision for current income tax expense: | |||||||||||||
Federal | $ | 5,060 | $ | 2,253 | $ | 2,766 | |||||||
State and local | 1,496 | 1,879 | 1,439 | ||||||||||
Foreign | 2,199 | 1,858 | 1,641 | ||||||||||
$ | 8,755 | $ | 5,990 | $ | 5,846 | ||||||||
Provision for deferred income tax expense (benefit): | |||||||||||||
Federal | $ | (6,084 | ) | $ | (6,055 | ) | $ | 7,398 | |||||
State and local | (2,658 | ) | (3,891 | ) | (2,957 | ) | |||||||
Foreign | (163 | ) | 25 | (78 | ) | ||||||||
$ | (8,905 | ) | $ | (9,921 | ) | $ | 4,363 | ||||||
Provision for (benefit from) income taxes | $ | (150 | ) | $ | (3,931 | ) | $ | 10,209 | |||||
The following is a reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate expressed as a percentage of income (loss) before income taxes: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State and local taxes | (0.3 | ) | (1.3 | ) | (1.9 | ) | |||||||
Orphan Drug & General Business Credit | 14.7 | 27.6 | 43.9 | ||||||||||
Stock compensation expense | (1.7 | ) | (1.6 | ) | (8.2 | ) | |||||||
Changes in the fair value of contingent acquisition consideration payable | (2.9 | ) | (2.6 | ) | 1.5 | ||||||||
Foreign tax rate differential | (45.4 | ) | (50.0 | ) | (86.7 | ) | |||||||
Other | 1.6 | (3.2 | ) | (2.0 | ) | ||||||||
Valuation allowance/Deferred benefit | (0.9 | ) | (0.6 | ) | (5.0 | ) | |||||||
Effective income tax rate | 0.1 | % | 3.3 | % | (23.4 | )% | |||||||
The significant components of the Company’s net deferred tax assets are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Net deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 22,890 | $ | 20,431 | |||||||||
Credit carryforwards | 176,226 | 170,322 | |||||||||||
Property, plant and equipment | 504 | 1,791 | |||||||||||
Accrued expenses, reserves, and prepaids | 21,071 | 18,770 | |||||||||||
Intangible assets | 8,255 | 6,161 | |||||||||||
Stock-based compensation | 29,603 | 22,634 | |||||||||||
Inventory | 12,417 | 17,074 | |||||||||||
Capital loss carryforwards | 3,071 | 3,083 | |||||||||||
Other | 799 | 764 | |||||||||||
Gross deferred tax assets | $ | 274,836 | $ | 261,030 | |||||||||
Joint venture basis difference | (1,806 | ) | (1,801 | ) | |||||||||
Acquired Intangibles | (34,091 | ) | (31,420 | ) | |||||||||
Convertible notes discount | (46,029 | ) | 0 | ||||||||||
Other comprehensive loss | (3,611 | ) | (75 | ) | |||||||||
Valuation allowance | (8,347 | ) | (6,075 | ) | |||||||||
Net deferred tax assets | $ | 180,952 | $ | 221,659 | |||||||||
As of December 31, 2013, the Company had federal net operating loss carryforwards of $29.1 million and state net operating loss carryforwards of $184.1 million. The Company also had federal research and development and orphan drug credit carryforwards of $250.4 million and state research credit carryovers of $39.9 million. The Company has elected to recognize the excess benefits related to the exercise of employee stock options under a with and without approach, which will be accounted for as an increase to additional paid-in-capital if and when realized. As of December 31, 2013, the Company had unrecognized federal and state stock option benefits of $199.6 million and $71.2 million, respectively. | |||||||||||||
The federal net operating loss carryforwards will expire at various dates beginning in 2026 through 2033 if not utilized. The federal credit carryforward will expire at various dates beginning in 2020 through 2033 if not utilized. The state net operating loss carryforwards will expire at various dates beginning in 2015 through 2033 if not utilized. Certain state research credit carryovers will begin to expire in 2017 if not utilized, with others carrying forward indefinitely. The Company also has Canadian net operating loss carryforwards of $1.8 million and research credit carryovers of $0.6 million that it currently does not expect to fully utilize and therefore the Company carries a full valuation allowance on all but $0.2 million of the research credit carryforward. The Canadian net operating loss carryforwards and research credit carryovers will expire from 2014 to 2027 and from 2018 to 2022, respectively. | |||||||||||||
The Company’s net operating losses and credits could be subject to annual limitations due to ownership change limitations provided by Internal Revenue Code Section 382 and similar state provisions. An annual limitation could result in the expiration of net operating losses and tax credit carryforward before utilization. There are limitations on the tax attributes of acquired entities however, the Company does not believe the limitations will have a material impact on the utilization of the net operating losses or tax credits. | |||||||||||||
In 2013, the valuation allowance increased by $2.3 million primarily due to state net operating losses and credits that are not more likely than not to be realized. In 2012, the valuation allowance increased by $0.6 million primarily due to investment impairments that are not more likely than not to be realized. | |||||||||||||
The financial statement recognition of the benefit for a tax position is dependent upon the benefit being more likely than not to be sustainable upon audit by the applicable taxing authority. If this threshold is met, the tax benefit is then measured and recognized at the largest amount that is greater than 50% likely of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013 is as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at beginning of period | $ | 43,531 | $ | 36,350 | |||||||||
Additions based on tax positions related to the current year | 7,478 | 7,190 | |||||||||||
Additions for tax positions of prior years | (194 | ) | (9 | ) | |||||||||
Balance at end of period | $ | 50,815 | $ | 43,531 | |||||||||
Included in the balance of unrecognized tax benefits at December 31, 2013 are potential benefits of $50.8 million that, if recognized, would affect the effective tax rate. The Company’s policy for classifying interest and penalties associated with unrecognized income tax benefits is to include such items in the income tax expense. No interest or penalties have been recorded by the Company to date through December 31, 2013. | |||||||||||||
The Company files income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. For income tax returns filed before 2010, the Company is no longer subject to audit by the U.S. federal, state, local or non-U.S. tax authorities. However, carryforward tax attributes that were generated prior to 2010 may still be adjusted upon examination by tax authorities. Currently, the Company has an open tax return audit with the state of California for tax years 2010 and 2011. | |||||||||||||
U.S. income and foreign withholding taxes have not been recognized on the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. This excess totaled approximately $4.7 million as of December 31, 2013, which will be indefinitely reinvested; therefore, deferred income taxes of approximately $1.7 million have not been provided on such foreign earnings. |
COLLABORATIVE_AGREEMENTS
COLLABORATIVE AGREEMENTS | 12 Months Ended |
Dec. 31, 2013 | |
COLLABORATIVE AGREEMENTS | ' |
(21) COLLABORATIVE AGREEMENTS | |
Merck Serono | |
In May 2005, the Company entered into an agreement with Merck Serono for the further development and commercialization of BH4, both in Kuvan for PKU and for other indications, and PEG PAL (phenylalanine ammonia lyase). Through the agreement and subsequent amendment, Merck Serono acquired exclusive rights to market these products in all territories outside the U.S., Canada and Japan, and BioMarin retained exclusive rights to market these products in the U.S. and Canada. The Company and Merck Serono may collaborate on the development of Kuvan and PEG PAL. If they agree to collaborate Merck Serono will generally share equally all development costs following successful completion of Phase 2 trials for such product candidate in such indication. Merck Serono has “opted-out” of the PEG PAL development program, a decision that does not affect its exclusive rights to PEG PAL in its territory. Unless or until Merck Serono elects to opt-in, it is not obligated to pay any of the milestones related to the program or to reimburse the Company for any of the PEG PAL development costs. Merck Serono may elect to opt in at any time. If it elects to opt in prior to the unblinding of the first Phase 3 trial, it must pay 75% of the Phase 3 costs incurred prior to opting in and a $7.0 million development milestone if the Phase 3 trial has started. If Merck Serono opts in after the unblinding of the first Phase 3 trial for PEG PAL, it must pay 100% of the Phase 3 costs incurred prior to opting in and a $7.0 million development milestone. | |
BioMarin and Merck Serono are individually responsible for the costs of commercializing the products within their respective territories. Merck Serono will also pay BioMarin royalties on its net sales of these products. The term of the agreement is the later of 10 years after the first commercial sale of the products or the period through the expiration of all related patents within the territories. As of December 31, 2013 and 2012, amounts due from Merck Serono for reimbursable development costs for Kuvan totaled $0.3 million and $0.4 million, respectively. | |
Other Agreements | |
The Company is engaged in research and development collaborations with various other entities. These provide for sponsorship of research and development by the Company and may also provide for exclusive royalty-bearing intellectual property licenses or rights of first negotiation regarding licenses to intellectual property development under the collaborations. Typically, these agreements can be terminated for cause by either party upon 90 days written notice. | |
In September 2007, the Company licensed to Asubio Pharma Co., Ltd. (a subsidiary of Daiichi Sankyo) exclusive rights to data and intellectual property contained in the Kuvan new drug application. The Company receives royalties on net sales of the product in Japan. | |
In October 2012, the Company licensed to Catalyst Pharmaceutical Partners, Inc., (Catalyst) the North American rights to develop and market Firdapse. In consideration of this licensing arrangement, the Company received from Catalyst a $5.0 million convertible promissory note. Under the terms of the note agreement, the Company received 6.7 million shares of Catalyst common stock upon the automatic conversion of the convertible promissory note on December 10, 2012. The conversion price was based on $0.75 per share, which resulted in a $2.0 million loss on conversion, which was included as a component of Other Income (Expense) on the Company’s Consolidated Statement of Operations for the year ended December 31, 2012. In exchange for the North American rights to Firdapse the Company may receive royalties of 7% to 10% on net product sales of Firdapse in North America. As of December 31, 2013 and 2012, amounts due from Catalyst for reimbursable development costs totaled $0.8 million and $43, respectively. | |
In May 2013, the Company entered into a non-exclusive royalty bearing license with Shire Human Genetic Therapies, Inc, (Shire). Under the terms of the agreement, Shire was granted the right to use patents related to the intrathecal delivery of lysosomal enzymes that are within the Company’s control. In consideration of this licensing agreement, the Company received a $3.0 million non-refundable upfront payment, future milestone payments of up to $18.0 million if certain development and commercial milestones are attained by Shire and royalties ranging from 3% to 5% on Shire net sales of the product. The milestone payments to be made by Shire are based solely upon Shire’s performance; therefore the Company expects to recognize the payments as revenue upon receipt, provided that the other revenue recognition criteria have been satisfied. | |
Other Commitments | |
In the normal course of business, the Company enters into various firm purchase commitments primarily related to active pharmaceutical ingredients and certain inventory related items. As of December 31, 2013, these commitments for the next five years were approximately $38.2 million in 2013. The amounts primarily related to active pharmaceutical ingredients represent minimum purchase requirements and post marketing commitments related to the Company’s approved products. |
COMPENSATION_AGREEMENTS_AND_PL
COMPENSATION AGREEMENTS AND PLANS | 12 Months Ended |
Dec. 31, 2013 | |
COMPENSATION AGREEMENTS AND PLANS | ' |
(22) COMPENSATION AGREEMENTS AND PLANS | |
Employment Agreements | |
The Company has entered into employment agreements with certain officers. Generally, these agreements can be terminated without cause by the Company upon prior written notice and payment of specified severance, or by the officer upon four weeks’ prior written notice to the Company. | |
401(k) Plan | |
The Company sponsors the BioMarin Retirement Savings Plan (the 401(k) Plan). Most employees (Participants) are eligible to participate following the start of their employment, at the beginning of each calendar month. Participants may contribute to the 401(k) Plan up to the lesser of 100% of their current compensation or an amount up to a statutorily prescribed annual limit. The Company pays the direct expenses of the 401(k) Plan and matched 100% of each Participant’s contributions, up to a maximum of the lesser of 2% of the employee’s annual compensation or $4,000 per year through December 31, 2013. In 2014, the Company’s 401(k) match was increased to the lesser of 3% of the employee’s annual compensation or $6,000 per year. The Company’s matching contribution vests over four years from employment commencement and was approximately $3.4 million, $2.8 million and $2.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. Employer contributions not vested upon employee termination are forfeited. | |
Deferred Compensation Plan | |
In December 2005, the Company adopted the Deferred Compensation Plan. The Deferred Compensation Plan allows eligible employees, including members of the Board, management and certain highly-compensated employees as designated by the Deferred Compensation Plan’s Administrative Committee, the opportunity to make voluntary deferrals of compensation to specified future dates, retirement or death. Participants are permitted to defer portions of their salary, annual cash bonus and restricted stock. The Company may not make additional direct contributions to the Deferred Compensation Plan on behalf of the participants, without further action by the Board. Deferred compensation is held in trust and generally invested to match the investment benchmarks selected by participants. The recorded cost of any investments will approximate fair value. Company stock issued into the Deferred Compensation Plan is recorded and accounted for similarly to treasury stock in that the value of the employer stock is determined on the date the restricted stock vests and the shares are issued into the Deferred Compensation Plan. The restricted stock issued into the Deferred Compensation Plan upon vesting is recorded in stockholders’ equity. As of December 31, 2013 and 2012, the fair value of Company stock held by the Deferred Compensation Plan was $13.6 million and $11.5 million, respectively. The change in market value amounted to a loss of approximately $4.2 million in 2013, compared to losses of $3.2 million and $1.3 million in 2012 and 2011, respectively. See Note 15 to these Consolidated Financial Statements for additional discussion regarding the fair value of the Deferred Compensation Plan assets and liabilities. |
JOINT_VENTURE
JOINT VENTURE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
JOINT VENTURE | ' | ||||||||||||
(23) JOINT VENTURE | |||||||||||||
Effective January 2008, the Company and Genzyme restructured BioMarin/Genzyme LLC. Under the revised structure, the operational responsibilities for the Company and Genzyme did not significantly change, as Genzyme continues to globally market and sell Aldurazyme and the Company continues to manufacture Aldurazyme. | |||||||||||||
Genzyme records sales of Aldurazyme to third-party customers and pays the Company a tiered payment ranging from approximately 39.5% to 50% of worldwide net product sales depending on sales volume, which is recorded by the Company as product revenue. The Company recognizes a portion of this amount as product transfer revenue when the product is released to Genzyme because all of the Company’s performance obligations are fulfilled at this point and title to, and risk of loss for, the product has transferred to Genzyme. The product transfer revenue represents the fixed amount per unit of Aldurazyme that Genzyme is required to pay the Company if the product is unsold by Genzyme. The amount of product transfer revenue is deducted from the calculated royalty rate when the product is sold by Genzyme. Genzyme’s contractual return rights for Aldurazyme are limited to defective product. Certain research and development activities and intellectual property related to Aldurazyme continue to be managed in the joint venture with the costs shared equally by the Company and Genzyme. | |||||||||||||
The Company presents the related cost of sales and its Aldurazyme-related operating expenses as operating expenses in the Company’s Consolidated Statements of Operations. Equity in the loss of BioMarin/Genzyme LLC subsequent to the restructuring includes BioMarin’s 50% share of the net income (loss) of BioMarin/Genzyme LLC related to intellectual property management and ongoing research and development activities. | |||||||||||||
The results of the joint venture’s operations are presented in the table below. | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||
Revenue | $ | 0 | $ | 0 | $ | 0 | |||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||||
Gross profit | 0 | 0 | 0 | ||||||||||
Operating expenses | 2,221 | 2,534 | 4,855 | ||||||||||
Loss from operations | (2,221 | ) | (2,534 | ) | (4,855 | ) | |||||||
Other income | 3 | 4 | 5 | ||||||||||
Net loss | $ | (2,218 | ) | $ | (2,530 | ) | $ | (4,850 | ) | ||||
Equity in the loss of BioMarin/Genzyme LLC | $ | (1,149 | ) | $ | (1,221 | ) | $ | (2,426 | ) | ||||
The summarized assets and liabilities of the joint venture and the components of the Company’s investment in the joint venture are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||
Assets | $ | 1,770 | $ | 3,343 | |||||||||
Liabilities | (136 | ) | (1,747 | ) | |||||||||
Net equity | $ | 1,634 | $ | 1,596 | |||||||||
Investment in BioMarin/Genzyme LLC (50% share of net equity) | $ | 816 | $ | 1,080 | |||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
COMMITMENTS AND CONTINGENCIES | ' | ||||
(24) COMMITMENTS AND CONTINGENCIES | |||||
Lease Commitments | |||||
The Company leases office space and research, testing and manufacturing laboratory space in various facilities under operating agreements expiring at various dates through 2022. Certain of the leases provide for options by the Company to extend the lease for multiple five-year renewal periods and also provide for annual minimum increases in rent, usually based on a consumer price index or annual minimum increases. Minimum lease payments for future years are as follows: | |||||
2014 | $ | 10,897 | |||
2015 | 10,059 | ||||
2016 | 8,907 | ||||
2017 | 8,343 | ||||
2018 | 8,045 | ||||
Thereafter | 20,280 | ||||
Total | $ | 66,531 | |||
At December 31, 2013, the Company’s annual minimum lease obligations included $35.9 million related to its leases for SRCC which will be terminated upon closing of the purchase of SRCC during the first quarter of 2014. | |||||
Rent expense for the years ended December 31, 2013, 2012 and 2011 was $10.4 million, $10.1 million, and $6.0 million, respectively. Deferred rent accruals at December 31, 2013 totaled $9.9 million, of which $0.9 million was current. The December 31, 2013 deferred rent accruals include $8.8 million related to SRCC which will be released upon the completion of the purchase of SRCC. Deferred rent accruals at December 31, 2012 totaled $10.0 million, of which $1.0 million was current. | |||||
See Note 11 to these Consolidated Financial Statements for additional discussion regarding the purchase of SRCC. | |||||
Research and Development Funding and Technology Licenses | |||||
The Company uses experts and laboratories at universities and other institutions to perform certain research and development activities. These amounts are included as research and development expenses as services are provided. | |||||
The Company has also licensed technology, for which it is required to pay royalties upon future sales, subject to certain annual minimums. As of December 31, 2013, such minimum annual commitments were approximately $1.2 million. | |||||
Contingencies | |||||
From time to time the Company is involved in legal actions arising in the normal course of its business. The Company is not presently subject to any material litigation nor, to management’s knowledge, is any litigation threatened against the Company that collectively is expected to have a material adverse effect on the Company’s consolidated cash flows, financial condition or results of operations. | |||||
As of December 31, 2013 the Company is also subject to contingent payments totaling approximately $422.2 million upon achievement of certain regulatory and licensing milestones if they occur before certain dates in the future. Of this amount, $56.4 million relates to programs that are no longer being developed. | |||||
As of December 31, 2013, the Company has recorded $42.7 million of contingent acquisition consideration payable on its Consolidated Balance Sheet, of which $11.9 million current. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
SUBSEQUENT EVENTS | ' |
(25) SUBSEQUENT EVENTS | |
On February 14, 2014, the FDA granted marketing approval for VIMIZIM for the treatment of mucopolysaccharidosis Type IV A (Morquio Syndrome Type A or MPS IV A). The Company immediately began marketing VIMIZIM in the U.S. using its existing sales force and commercial organization and completed the first commercial sale in the U.S. | |
On February 20, 2014 the Committee for CHMP of the EMA adopted a positive opinion for the Company’s MAA for VIMIZIM for the treatment of MPS IV A. The CHMP’s recommendation is now referred to the European Commission (EC). The EC is expected to render a final decision for VIMIZIM in the second quarter of 2014. | |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Basis of Presentation | ' | |||
Basis of Presentation | ||||
These Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) and include the accounts of BioMarin and its wholly owned subsidiaries. All significant intercompany transactions have been eliminated. Management performed an evaluation of the Company’s activities through the date of filing of this Annual Report on Form 10-K, and has concluded that there are no subsequent events except for the transaction disclosed in Note 25 to these Consolidated Financial Statements. | ||||
Use of Estimates | ' | |||
Use of Estimates | ||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Cash And Cash Equivalents | ' | |||
Cash and Cash Equivalents | ||||
The Company treats liquid investments with original maturities of three months or less when purchased as cash and cash equivalents. | ||||
Investments | ' | |||
Investments | ||||
The Company determines the appropriate classification of its investments in debt and equity securities at the time of purchase and reevaluates such designations at each balance sheet date. All of the Company’s securities are classified as available-for-sale and reported in short-term investments, other current assets or long-term investments. Available-for-sale investments are recorded at fair market value, with unrealized gains or losses included in Accumulated Other Comprehensive Income (Loss) on the Company’s Consolidated Balance Sheets, exclusive of other-than-temporary impairment losses, if any. Investments are comprised of corporate securities, commercial paper, U.S. federal government agency securities and certificates of deposit. | ||||
Inventory | ' | |||
Inventory | ||||
The Company values inventory at the lower of cost or net realizable value and determines the cost of inventory using the average-cost method. Inventories consist of currently marketed products and may contain certain products awaiting regulatory approval. In evaluating the recoverability of inventories produced in preparation for product launches, the Company considers the likelihood that revenue will be obtained from the future sale of the related inventory together with the status of the product within the regulatory approval process. | ||||
The Company analyzes its inventory levels quarterly and writes down inventory that has become obsolete, or has a cost basis in excess of its expected net realizable value and inventory quantities in excess of expected requirements. In applying the lower of cost or net realizable value to pre-launch inventory, the Company estimates a range of likely commercial prices based on its comparable commercial products. Expired inventory is disposed of and the related costs are recognized as Cost of Sales in the Company’s Consolidated Statements of Operations. | ||||
Investment In BioMarin/Genzyme LLC And Equity In The Loss Of BioMarin/Genzyme LLC | ' | |||
Investment in BioMarin/Genzyme LLC and Equity in the Loss of BioMarin/Genzyme LLC | ||||
The Company accounts for its investment in the joint venture between the Company and Genzyme Corporation (BioMarin/Genzyme LLC) using the equity method. Accordingly, the Company records an increase in its investment for contributions to BioMarin/Genzyme LLC and a reduction in its investment for its 50% share of any losses of BioMarin/Genzyme LLC or disbursements of profits from the BioMarin/Genzyme LLC. Equity in the loss of BioMarin/Genzyme LLC includes the Company’s 50% share of BioMarin/Genzyme LLC loss for the period. The investment in BioMarin/Genzyme LLC includes the Company’s share of the net equity of BioMarin/Genzyme LLC. | ||||
Property, Plant And Equipment | ' | |||
Property, Plant and Equipment | ||||
Property, plant and equipment are stated at cost net of accumulated depreciation. Depreciation is computed using the straight-line method over the related estimated useful lives as presented in the table below. Significant additions and improvements are capitalized, while repairs and maintenance are charged to expense as incurred. Property and equipment purchased for specific research and development projects with no alternative uses are expensed as incurred. | ||||
Leasehold improvements | Shorter of life of asset or lease term | |||
Building and improvements | 20 to 30 years | |||
Manufacturing and laboratory equipment | 5 to 15 years | |||
Computer hardware and software | 3 to 8 years | |||
Office furniture and equipment | 5 years | |||
Vehicles | 5 years | |||
Land | Not applicable | |||
Construction-in-progress | Not applicable | |||
Certain of the Company’s operating lease agreements include scheduled rent escalations over the lease term, as well as tenant improvement allowances. Scheduled increases in rent expense are recognized on a straight-line basis over the lease term. The difference between rent expense and rent paid is recorded as deferred rent and included in other liabilities in the accompanying Consolidated Balance Sheets. The tenant improvement allowances and free rent periods are recognized as a reduction of rent expense over the lease term on a straight-line basis. | ||||
Impairment Of Long-Lived Assets | ' | |||
Impairment of Long-Lived Assets | ||||
The Company records goodwill in a business combination when the total consideration exceeds the fair value of the net tangible and identifiable intangible assets acquired. Goodwill and intangible assets with indefinite lives are not amortized but subject to an annual impairment analysis. Intangible assets with definite lives are amortized over their estimated useful lives on a straight-line basis. | ||||
The Company performs its annual impairment review of goodwill and indefinite lived intangibles during the fourth quarter and whenever events or circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that the full carrying amount of an asset is not recoverable, an impairment loss is recorded in the amount by which the carrying amount of the asset exceeds its fair value. The Company currently operates in one business segment, the biopharmaceutical development and commercialization segment. When reviewing goodwill for impairment, the Company assesses whether goodwill should be allocated to operating levels lower than its single operating segment for which discrete financial information is available and reviewed for decision making purposes. These lower levels are referred to as reporting units. As of December 31, 2013, the Company has only one reporting unit. | ||||
The recoverability of the carrying value of the Company’s buildings, leasehold improvements for its facilities and equipment depends on the successful execution of the Company’s business initiatives and its ability to earn sufficient returns on approved products and product candidates. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of its fixed assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If the future undiscounted cash flows are less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. | ||||
Revenue Recognition | ' | |||
Revenue Recognition | ||||
The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price to the buyer is fixed or determinable and collection from the customer is reasonably assured. | ||||
Net Product Revenues—The Company recognizes revenues from product sales when title and risk of loss have passed to the customer, which typically occurs upon delivery. Product sales transactions are evidenced by customer purchase orders, customer contracts, invoices and/or the related shipping documents. Upon recognition of revenue from product sales, provisions are made for government rebates such as Medicaid reimbursements, customer incentives such as cash discounts for prompt payment, distributor fees and expected returns of expired products, as appropriate. Amounts collected from customers and remitted to governmental authorities, which are primarily comprised of value-added taxes related to product sales in foreign jurisdictions, are presented on a net basis in the Company’s Consolidated Statements of Operations, in that taxes billed to customers are not included as a component of net product revenues. | ||||
In the U.S., the Company’s commercial products are generally sold to specialty pharmacies or end-users, such as hospitals, which act as retailers. The Company also sells Kuvan to Merck Serono S.A. (Merck Serono) at a price near its manufacturing cost, and Merck Serono resells the product to end users outside the U.S., Canada and Japan. The royalty earned from Kuvan product sold by Merck Serono in the EU is included as a component of net product revenues in the period earned. Outside the U.S., the Company’s commercial products are sold to its authorized distributors or directly to government purchasers or hospitals, which act as the end-users. | ||||
The Company receives a 39.5% to 50% royalty on worldwide net Aldurazyme sales by Genzyme depending on sales volume, which is included in Net Product Revenues in the Company’s Consolidated Statements of Operations. The Company recognizes a portion of this amount as product transfer revenue when product is released to Genzyme because all of the Company’s performance obligations are fulfilled at that point and title to, and risk of loss for, the product has transferred to Genzyme. The product transfer revenue represents the fixed amount per unit of Aldurazyme that Genzyme is required to pay the Company if the product is unsold by Genzyme. The amount of product transfer revenue will eventually be deducted from the calculated royalty earned when the product is sold by Genzyme. The Company records the Aldurazyme royalty revenue based on net sales information provided by Genzyme and records product transfer revenue based on the fulfillment of Genzyme purchase orders in accordance with the terms of the related agreements with Genzyme and when the title and risk of loss for the product is transferred to Genzyme. | ||||
The Company records reserves for rebates payable under Medicaid and other government programs as a reduction of revenue at the time product revenues are recorded. The Company’s reserve calculations require estimates, including estimates of customer mix, to determine which sales will be subject to rebates and the amount of such rebates. The Company updates its estimates and assumptions each quarter and records any necessary adjustments to its reserves. The Company records fees paid to distributors as a reduction of revenue. | ||||
The Company records allowances for product returns, if appropriate, as a reduction of revenue at the time product sales are recorded. Several factors are considered in determining whether an allowance for product returns is required, including market exclusivity of the products based on their orphan drug status, the patient population, the customers’ limited return rights and the Company’s experience with returns. Because of the pricing of the Company’s commercial products, the limited number of patients and the customers’ limited return rights, most customers and retailers carry a limited inventory. | ||||
However, certain international customers, usually government entities, tend to purchase larger quantities of product less frequently. Although such buying patterns may result in revenue fluctuations from quarter to quarter, the Company has not experienced any increased product returns or risk of product returns. The Company relies on historical return rates to estimate returns. Genzyme’s contractual return rights for Aldurazyme are limited to defective product. Based on these factors and the fact that the Company has not experienced significant product returns to date, management has concluded that product returns will be minimal. In the future, if any of these factors and/or the history of product returns change, an allowance for product returns may be required. | ||||
Collaborative Agreement Revenues—Collaborative agreement revenues include both license revenue and contract research revenue. | ||||
Activities under collaborative agreements are evaluated to determine if they represent a multiple element revenue arrangement. The Company identifies the deliverables included within the agreement and evaluates which deliverables represent separate units of accounting. The Company accounts for those components as separate units of accounting if the following two criteria are met: | ||||
• | The delivered item or items have value to the customer on a stand-alone basis. | |||
• | If there is a general right of return relative to the delivered items, delivery or performance of the undelivered items is considered probable and within the Company’s control. | |||
Factors considered in this determination include, among other things, whether any other vendors sell the items separately and if the licensee could use the delivered item for its intended purpose without the receipt of the remaining deliverables. If multiple deliverables included in an arrangement are separable into different units of accounting, the Company allocates the arrangement consideration to those units of accounting. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. Arrangement consideration is allocated at the inception of the arrangement to the identified units of accounting based on their relative estimated selling price. Revenue is recognized for each unit of accounting when the appropriate revenue recognition criteria are met. | ||||
Nonrefundable up-front license fees where the Company has continuing involvement through research and development collaboration are initially deferred and recognized as collaborative agreement license revenue over the estimated period for which the Company continues to have a performance obligation. | ||||
Future milestone payments that are contingent upon the achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved. A milestone is substantive if: | ||||
• | It can only be achieved based in whole or in part on either the Company’s performance or on the occurrence of a specific outcome resulting from the Company’s performance; | |||
• | There is substantive uncertainty at the date an arrangement is entered into that the event will be achieved; and | |||
• | It would result in additional payments being due to the entity. | |||
Royalty and License Revenues—Royalty revenues includes royalties on net sales of products with which the Company has no direct involvement and is recognized based on data reported by licensees or sublicensees. Royalties are recognized as earned in accordance with the contract terms at the time the royalty amount is fixed or determinable based on information received from the sublicensees and at the time collectibility is reasonably assured. | ||||
Due to the significant role the Company plays in the operations (primarily the manufacturing and regulatory activities) of Aldurazyme and Kuvan as well as the rights and responsibilities to deliver the products to Genzyme and Merck Serono, respectively, the Company elected not to classify these royalties earned as other royalty revenues but instead to include them as a component of Net Product Revenues in the Company’s Consolidated Statements of Operations. | ||||
Research and Development | ' | |||
Research and Development | ||||
Research and development expenses include expenses associated with contract research and development provided by third parties, product manufacturing prior to regulatory approval, clinical and regulatory costs, and internal research and development costs. In instances where the Company enters into agreements with third parties for research and development activities, costs are expensed upon the earlier of when non-refundable amounts are due or as services are performed unless there is an alternative future use of the funds in other research and development projects. Amounts due under such arrangements may be either fixed fee or fee for service and may include upfront payments, monthly payments and payments upon the completion of milestones or receipt of deliverables. The Company accrues costs for clinical trial activities based upon the services received and estimates of related expenses incurred that have yet to be invoiced by the vendors that perform the activities. | ||||
Convertible Debt Transactions | ' | |||
Convertible Debt Transactions | ||||
The Company separately accounts for the liability and equity components of convertible debt instruments that can be settled in cash by allocating the proceeds from issuance between the liability component and the embedded conversion option, or equity component, in accordance with accounting for convertible debt instruments that may be settled in cash (including partial cash settlement) upon conversion. The value of the equity component is calculated by first measuring the fair value of the liability component, using the interest rate of a similar liability that does not have a conversion feature, as of the issuance date. The difference between the proceeds from the convertible debt issuance and the amount measured as the liability component is recorded as the equity component with a corresponding discount recorded on the debt. The Company recognizes the accretion of the resulting discount using the effective interest method as part of Interest Expense in its Consolidated Statements of Operations. | ||||
Net Loss Per Common Share | ' | |||
Net Loss Per Common Share | ||||
Basic net loss per share is calculated by dividing net loss by the weighted average shares of common stock outstanding during the period. Diluted net loss per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if their effect is anti-dilutive. The Company currently has no dilutive securities and as such, basic and diluted net loss per share are the same for the periods presented. | ||||
Stock-Based Compensation | ' | |||
Stock-Based Compensation | ||||
The Company uses the Black-Scholes option-pricing model to determine the fair value of stock options and the Company’s Employee Stock Purchase Plan (the ESPP) awards. The determination of the fair value of stock-based payment awards using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for each award. Further, stock-based compensation expense recognized in the Company’s Consolidated Statements of Operations is based on awards expected to vest and therefore the amount of expense has been reduced for estimated forfeitures, which are based on historical experience. If actual forfeitures differ from estimates at the time of grant they will be revised in subsequent periods. | ||||
The Company uses a lattice model with a Monte Carlo simulation to value restricted stock unit awards with performance and market conditions. This valuation methodology utilizes several key assumptions, including closing price of the Company’s stock price on grant date, expected volatility of the Company’s stock price, risk-free rates of return, expected dividend yield and estimated total shareholder return. | ||||
If factors change and different assumptions are employed in determining the fair value of stock-based awards, the stock-based compensation expense recorded in future periods may differ significantly from what was recorded in the current period. See Note 17 to these Consolidated Financial Statements for further information. | ||||
Nonqualified Deferred Compensation Plan | ' | |||
Nonqualified Deferred Compensation Plan | ||||
The Company’s Nonqualified Deferred Compensation Plan (the Deferred Compensation Plan) allows eligible employees, including members of the Company’s Board of Directors (the Board), management and certain highly-compensated employees as designated by the Deferred Compensation Plan’s administrative committee, to make voluntary deferrals of compensation to specified dates, retirement or death. Participants are permitted to defer portions of their salary, annual cash bonus and restricted stock. The Company is not allowed to make additional direct contributions to the Deferred Compensation Plan on behalf of the participants without further action by the Board. | ||||
All of the investments held in the Deferred Compensation Plan are classified as trading securities and recorded at fair value with changes in the investments’ fair values recognized as earnings in the period they occur. Restricted stock issued and held by the Deferred Compensation Plan is accounted for similarly to treasury stock in that the value of the employer stock is determined on the date the restricted stock vests and the shares are issued into the Deferred Compensation Plan. The restricted stock issued into the Deferred Compensation Plan is recorded as stockholders’ equity and changes in the fair value of the corresponding liability are recognized in earnings as incurred. The corresponding liability for the Deferred Compensation Plan is included in Accounts Payable and Accrued Liabilities and Other Long-Term Liabilities in the Company’s Consolidated Balance Sheets. | ||||
Income Taxes | ' | |||
Income Taxes | ||||
The Company calculates and provides for income taxes in each of the tax jurisdictions in which it operates. Deferred tax assets and liabilities, measured using enacted tax rates, are recognized for the future tax consequences of temporary differences between the tax and financial statement basis of assets and liabilities. A valuation allowance reduces the deferred tax assets to the amount that is more likely than not to be realized. The Company establishes liabilities or reduces assets for uncertain tax positions when the Company believes certain tax positions are not more likely than not of being sustained if challenged. Each quarter, the Company evaluates these uncertain tax positions and adjusts the related tax assets and liabilities in light of changing facts and circumstances. | ||||
The Company uses financial projections to support its net deferred tax assets, which contain significant assumptions and estimates of future operations. If such assumptions were to differ significantly, it may have a material impact on the Company’s ability to realize its deferred tax assets. At the end of each period, the Company will reassess the ability to realize its deferred tax benefits. If it is more likely than not that the Company would not realize the deferred tax benefits, then all or a portion of the valuation allowance may need to be re-established, which will result in a charge to tax expense. | ||||
Foreign Currency and Other Hedging Instruments | ' | |||
Foreign Currency and Other Hedging Instruments | ||||
The Company engages in transactions denominated in foreign currencies and, as a result, is exposed to changes in foreign currency exchange rates. To manage the volatility resulting from fluctuating foreign currency exchange rates, the Company nets it exposures, where possible to take advantage of natural offsets and enters into forward foreign currency exchange contracts for the remaining exposures. | ||||
The Company accounts for its derivative instruments as either assets or liabilities on the balance sheet and measures them at fair value. Derivatives that are not defined as hedging instruments are adjusted to fair value through earnings. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. | ||||
The Company assess, both at inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting the changes in cash flows of the hedged items. The Company also assesses hedge ineffectiveness on a monthly basis and records the gain or loss related to the ineffective portion to current earnings. If the Company determines that a forecasted transaction is no longer probable of occurring, it discontinues hedge accounting for the affected portion of the hedge instrument, and any related unrealized gain or loss on the contract is recognized in current earnings. | ||||
See Note 14 to these Consolidated Financial Statements for further information. | ||||
Fair Value of Financial Instruments | ' | |||
Fair Value of Financial Instruments | ||||
The Company discloses the fair value of financial instruments for assets and liabilities for which the value is practicable to estimate. The carrying amounts of all cash equivalents, short-term and long-term investments and forward exchange contracts approximate fair value based upon quoted market prices or discounted cash flows. The fair values of trade accounts receivables, accounts payable and other financial instruments approximate carrying value due to their short-term nature, and would be considered level 2 items in the fair value hierarchy. | ||||
Business Combinations | ' | |||
Business Combinations | ||||
The Company allocates the purchase price of acquired businesses to the tangible and intangible assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date. The purchase price allocation process requires management to make significant estimates and assumptions, especially at the acquisition date with respect to intangible assets and in-process research and development (IPR&D). In connection with the purchase price allocations for acquisitions, the Company estimates the fair value of contingent payments utilizing a probability-based income approach inclusive of an estimated discount rate. | ||||
Contingent Acquisition Consideration Payable | ' | |||
Contingent Acquisition Consideration Payable | ||||
The Company determines the fair value of contingent acquisition consideration payable on the acquisition date using a probability-based income approach utilizing an appropriate discount rate. Each reporting period thereafter, the Company revalues these obligations and records increases or decreases in their fair value as adjustments to Intangible Asset Amortization and Contingent Consideration in the Company’s Consolidated Statements of Operations. Changes in the fair value of the contingent acquisition consideration payable can result from adjustments to the estimated probability and assumed timing of achieving the underlying milestones, as well as from changes to the discount rates and periods. | ||||
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | ' | |||
Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | ||||
Comprehensive income (loss) includes net income (loss) and certain changes in stockholders’ equity that are excluded from net income (loss), such as changes in unrealized gains and losses on the Company’s available-for-sale securities, unrealized gains (losses) on foreign currency hedges and changes in the Company’s cumulative foreign currency translation account. | ||||
Reclassifications And Adjustments | ' | |||
Reclassifications and Adjustments | ||||
Certain items in the prior year’s Consolidated Financial Statements have been reclassified to conform to the current presentation. | ||||
Prior to Regulatory Approval | ' | |||
Inventory | ' | |||
Inventories Produced in Preparation for Product Launches | ||||
The Company capitalizes inventories produced in preparation for product launches. Typically, capitalization of such inventory begins when positive results have been obtained for the clinical trials that the Company believes are necessary to support regulatory approval, uncertainties regarding ultimate regulatory approval have been significantly reduced and the Company has determined it is probable that these capitalized costs will provide some future economic benefit in excess of capitalized costs. The material factors considered by the Company in evaluating these uncertainties include the receipt and analysis of positive Phase 3 clinical trial results for the underlying product candidate, results from meetings with the relevant regulatory authorities prior to the filing of regulatory applications, and the compilation of the regulatory application. The Company closely monitors the status of each respective product within the regulatory approval process, including all relevant communication with regulatory authorities. The Company also considers its historical experience with manufacturing and commercializing similar products and the relevant product candidate. If the Company is aware of any specific material risks or contingencies other than the normal regulatory review and approval process, or if there are any specific issues identified relating to safety, efficacy, manufacturing, marketing or labeling, the related inventory would generally not be capitalized. | ||||
For inventories that are capitalized in preparation of product launch, anticipated future sales, expected approval date and shelf lives are evaluated in assessing realizability. The shelf life of a product is determined as part of the regulatory approval process; however, in evaluating whether to capitalize pre-launch inventory production costs, the Company considers the product stability data of all of the pre-approval production to date to determine whether there is adequate expected shelf life for the capitalized pre-launch production costs. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Schedule Of Property, Plant And Equipment Estimated Useful Lives | ' | ||
Leasehold improvements | Shorter of life of asset or lease term | ||
Building and improvements | 20 to 30 years | ||
Manufacturing and laboratory equipment | 5 to 15 years | ||
Computer hardware and software | 3 to 8 years | ||
Office furniture and equipment | 5 years | ||
Vehicles | 5 years | ||
Land | Not applicable | ||
Construction-in-progress | Not applicable |
CONVERTIBLE_DEBT_Tables
CONVERTIBLE DEBT (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Summary Of Convertiable Debt | ' | ||||||||||||
The following table summarizes information regarding the Company’s convertible debt at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Short-Term: | |||||||||||||
Convertible Notes due 2013: | $ | 0 | $ | 23,365 | |||||||||
Total short-term convertible debt | $ | 0 | $ | 23,365 | |||||||||
Long-term: | |||||||||||||
Convertible Notes due 2020, net of unamortized discount of $87,975 | $ | 287,025 | $ | 0 | |||||||||
Convertible Notes due 2018, net of unamortized discount of $68,500 | 306,500 | 0 | |||||||||||
Convertible Notes due 2017 | 62,041 | 324,859 | |||||||||||
Total long-term convertible debt, net of unamortized discount | $ | 655,566 | $ | 324,859 | |||||||||
Total convertible debt, net of unamortized discount | $ | 655,566 | $ | 348,224 | |||||||||
Fair value of fixed rate convertible debt | |||||||||||||
Convertible Notes due in 2020 (1) | $ | 400,879 | $ | 0 | |||||||||
Convertible Notes due in 2018 (1) | 397,691 | 0 | |||||||||||
Convertible Notes due in 2017 (1) | 213,765 | 788,433 | |||||||||||
Convertible Notes due in 2013 (1) | 0 | 23,365 | |||||||||||
Total | $ | 1,012,335 | $ | 811,798 | |||||||||
-1 | The fair value of the Company’s fixed rate convertible debt is based on open market trades and is classified as Level 1 in the fair value hierarchy. | ||||||||||||
Summary Of Convertible Debt Interest Expense | ' | ||||||||||||
Interest expense on the Company’s convertible debt was comprised of the following: | |||||||||||||
Years Ended December, 31 | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Coupon interest | $ | 4,550 | $ | 6,678 | $ | 7,361 | |||||||
Amortization of issuance costs | 1,053 | 960 | 1,048 | ||||||||||
Accretion of debt discount | 4,821 | 0 | 0 | ||||||||||
Total interest expense on convertible debt | $ | 10,424 | $ | 7,638 | $ | 8,409 | |||||||
NET_LOSS_PER_COMMON_SHARE_Tabl
NET LOSS PER COMMON SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule Of Anti-Dilutive Common Stock Excluded From Computation of Diluted Net Loss Per Share | ' | ||||||||||||
The table below presents potential shares of common stock that were excluded from the computation as they were anti-dilutive using the treasury stock method (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Options to purchase common stock | 13,157 | 13,895 | 16,319 | ||||||||||
Common stock issuable under the 2013 and 2017 Notes | 3,047 | 17,365 | 17,372 | ||||||||||
Common stock issuable under the 2018 and 2020 Notes | 7,966 | 0 | 0 | ||||||||||
Unvested restricted stock units | 1,159 | 1,165 | 1,068 | ||||||||||
Potentially issuable common stock for ESPP purchases | 197 | 263 | 241 | ||||||||||
Common stock held by the Nonqualified Deferred Compensation Plan | 193 | 233 | 173 | ||||||||||
Total number of potentially issuable shares | 25,719 | 32,921 | 35,173 | ||||||||||
ACQUISITION_OF_ZACHARON_PHARMA1
ACQUISITION OF ZACHARON PHARMACEUTICALS, INC. (Tables) (Zacharon Pharmaceuticals Inc) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Zacharon Pharmaceuticals Inc | ' | ||||
Schedule of Purchase Price Allocation | ' | ||||
The following table presents the final allocation of the purchase consideration for the Zacharon acquisition, including the contingent acquisition consideration payable, based on fair value. The final allocation includes an adjustment to goodwill and the deferred tax assets of approximately $0.7 million resulting from the finalization of Zacharon’s tax returns. | |||||
Cash and cash equivalents | $ | 560 | |||
Other current assets | 216 | ||||
Property, plant and equipment | 398 | ||||
Acquired deferred tax assets | 2,625 | ||||
Other assets | 38 | ||||
IPR&D | 11,680 | ||||
Total identifiable assets acquired | $ | 15,517 | |||
Accounts payable and accrued expenses | $ | (1,182 | ) | ||
Debt assumed | (1,313 | ) | |||
Deferred tax liability | (4,217 | ) | |||
Total liabilities assumed | $ | (6,712 | ) | ||
Net identifiable assets acquired | $ | 8,805 | |||
Goodwill | 2,715 | ||||
Net assets acquired | $ | 11,520 | |||
INVESTMENTS_Tables
INVESTMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Amortized Cost, Gross Unrealized Holding Gain or Loss, and Fair Value of Available For Sale Security by Major Security type | ' | ||||||||||||||||
The amortized cost, gross unrealized holding gains or losses, and fair value of the Company’s available-for-sale securities by major security type at December 31, 2013 and 2012 are summarized in the tables below: | |||||||||||||||||
Amortized | Gross | Gross | Aggregate | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value at | ||||||||||||||
Holding Gains | Holding Losses | December 31, 2013 | |||||||||||||||
Certificates of deposit | $ | 47,008 | $ | 2 | $ | 0 | $ | 47,010 | |||||||||
Corporate debt securities | 341,519 | 313 | (423 | ) | 341,409 | ||||||||||||
Commercial paper | 86,154 | 24 | 0 | 86,178 | |||||||||||||
U.S. Government agency securities | 8,900 | 1 | 0 | 8,901 | |||||||||||||
Greek government-issued bonds | 52 | 92 | 0 | 144 | |||||||||||||
Total | $ | 483,633 | $ | 432 | $ | (423 | ) | $ | 483,642 | ||||||||
Amortized | Gross | Gross | Aggregate | ||||||||||||||
Cost | Unrealized | Unrealized | Fair Value at | ||||||||||||||
Holding Gains | Holding Losses | December 31, 2012 | |||||||||||||||
Certificates of deposit | $ | 48,741 | $ | 14 | $ | (1 | ) | $ | 48,754 | ||||||||
Corporate debt securities | 316,709 | 402 | (211 | ) | 316,900 | ||||||||||||
U.S. Government agency securities | 17,512 | 5 | 0 | 17,517 | |||||||||||||
Greek government-issued bonds | 48 | 52 | 0 | 100 | |||||||||||||
Total | $ | 383,010 | $ | 473 | $ | (212 | ) | $ | 383,271 | ||||||||
Fair Values of Available-For-Sale Securities by Contractual Maturity | ' | ||||||||||||||||
The fair values of available-for-sale securities by contractual maturity at December 31, 2013 and 2012 were as follows: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Maturing in one year or less | $ | 215,942 | $ | 267,278 | |||||||||||||
Maturing after one year through three years | 267,700 | 115,993 | |||||||||||||||
Total | $ | 483,642 | $ | 383,271 | |||||||||||||
GOODWILL_Tables
GOODWILL (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Changes in Goodwill | ' | ||||
The following table represents the changes in goodwill for the year ended December 31, 2013: | |||||
Balance at December 31, 2012 | $ | 51,543 | |||
Addition of goodwill related to the acquisition of Zacharon | 2,715 | ||||
Balance at December 31, 2013 | $ | 54,258 | |||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule Of Intangible Assets | ' | ||||||||||||||||
Intangible assets consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Intangible assets: | |||||||||||||||||
Finite-lived intangible assets | $ | 118,242 | $ | 118,242 | |||||||||||||
Indefinite-lived intangible assets | 74,430 | 63,689 | |||||||||||||||
Gross intangible assets: | 192,672 | 181,931 | |||||||||||||||
Less: Accumulated amortization | (29,525 | ) | (18,951 | ) | |||||||||||||
Net carrying value | $ | 163,147 | $ | 162,980 | |||||||||||||
Schedule Of Amortization Of Finite-Lived Intangible Assets | ' | ||||||||||||||||
The following table summarizes the annual amortization of the finite-lived intangible assets through 2023: | |||||||||||||||||
Net Balance at | Estimated | Remaining | Annual | ||||||||||||||
December 31, 2013 | Useful Life | Life | Amortization | ||||||||||||||
Naglazyme intellectual property | $ | 66,938 | 12 years | 9.9 years | $ | 6,750 | |||||||||||
EU marketing rights for Firdapse | 20,141 | 10 years | 6.2 years | 3,223 | |||||||||||||
License payment for Kuvan FDA Approval | 316 | 7 years | 1.0 years | 332 | |||||||||||||
License payment for Kuvan EMEA Approval | 1,322 | 10 years | 4.9 years | 269 | |||||||||||||
Total | $ | 88,717 | $ | 10,574 | |||||||||||||
Schedule Of Indefinite-Lived Intangible Assets | ' | ||||||||||||||||
Indefinite-lived intangible assets consisted of the following: | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
In-Process Research and Development: | |||||||||||||||||
BMN 673 acquired through LEAD | $ | 35,150 | $ | 36,089 | |||||||||||||
BMN 701 acquired through ZyStor | 25,010 | 25,010 | |||||||||||||||
SENSI-Pro assay acquired through Zacharon | 11,680 | 0 | |||||||||||||||
Other acquired pre-clinical compounds | 2,590 | 2,590 | |||||||||||||||
Net carrying value | $ | 74,430 | $ | 63,689 | |||||||||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule Of Property Plant and Equipment Net | ' | ||||||||
Property, plant and equipment, net consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Leasehold improvements | $ | 73,973 | $ | 65,918 | |||||
Building and improvements | 159,125 | 144,700 | |||||||
Manufacturing and laboratory equipment | 95,126 | 79,915 | |||||||
Computer hardware and software | 74,948 | 56,011 | |||||||
Furniture and equipment | 12,367 | 11,143 | |||||||
Land | 11,608 | 11,608 | |||||||
Construction-in-progress | 77,212 | 64,300 | |||||||
504,359 | 433,595 | ||||||||
Less: Accumulated depreciation | (185,043 | ) | (149,122 | ) | |||||
Total property, plant and equipment, net | $ | 319,316 | $ | 284,473 | |||||
INVENTORY_Tables
INVENTORY (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Schedule Of Inventory | ' | ||||||||
Inventory consisted of the following: | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Raw materials | $ | 15,309 | $ | 11,943 | |||||
Work-in-process | 88,417 | 71,443 | |||||||
Finished goods | 58,879 | 45,309 | |||||||
Total inventory | $ | 162,605 | $ | 128,695 | |||||
SUPPLEMENTAL_BALANCE_SHEET_INF1
SUPPLEMENTAL BALANCE SHEET INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Schedule of Other Assets | ' | ||||||||||||||||||||||||
Other Assets consisted of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deposits | $ | 7,196 | $ | 6,844 | |||||||||||||||||||||
Restricted investments | 412 | 3,493 | |||||||||||||||||||||||
Escrow balance for SRCC purchase | 116,500 | 0 | |||||||||||||||||||||||
Deferred offering costs | 15,374 | 3,675 | |||||||||||||||||||||||
Strategic investment | 13,000 | 2,933 | |||||||||||||||||||||||
Other | 3,689 | 2,599 | |||||||||||||||||||||||
Total other assets | $ | 156,171 | $ | 19,544 | |||||||||||||||||||||
Schedule of Accounts Payable and Accrued Liabilities | ' | ||||||||||||||||||||||||
Accounts payable and accrued liabilities consisted of the following: | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Accounts payable | $ | 36,894 | $ | 23,993 | |||||||||||||||||||||
Accrued accounts payable | 58,408 | 43,156 | |||||||||||||||||||||||
Accrued vacation expense | 10,487 | 8,403 | |||||||||||||||||||||||
Accrued compensation expense | 33,496 | 27,530 | |||||||||||||||||||||||
Accrued royalties payable | 5,829 | 4,991 | |||||||||||||||||||||||
Accrued rebates payable | 10,429 | 9,625 | |||||||||||||||||||||||
Other accrued operating expenses | 4,875 | 6,179 | |||||||||||||||||||||||
Current portion of nonqualified deferred compensation liability | 1,363 | 6,440 | |||||||||||||||||||||||
Value added taxes payable | 3,603 | 2,072 | |||||||||||||||||||||||
Current portion of contingent acquisition consideration payable | 11,882 | 10,764 | |||||||||||||||||||||||
Other | 6,005 | 3,915 | |||||||||||||||||||||||
Total accounts payable and accrued liabilities | $ | 183,271 | $ | 147,068 | |||||||||||||||||||||
Schedule Of Estimated Accrued Rebates, Reserve For Cash Discounts And Allowance For Doubtful Accounts | ' | ||||||||||||||||||||||||
The roll forward of significant estimated accrued rebates, reserve for cash discounts and allowance for doubtful accounts for 2013, 2012 and 2011 was as follows: | |||||||||||||||||||||||||
Balance at | Provision | Provision/ | Actual Charges | Actual Charges | Balance at | ||||||||||||||||||||
Beginning | for Current | (Reversals) | Related to | Related to | End of | ||||||||||||||||||||
of Period | Period Sales | for Prior | Current | Prior Period | Period | ||||||||||||||||||||
Period Sales | Period Sales | Sales | |||||||||||||||||||||||
Year ended December 31, 2013: | |||||||||||||||||||||||||
Accrued rebates | $ | 9,625 | $ | 18,872 | $ | (1,169 | ) | $ | (12,025 | ) | $ | (4,874 | ) | $ | 10,429 | ||||||||||
Reserve for cash discounts | 372 | 4,549 | 0 | (4,191 | ) | (342 | ) | 388 | |||||||||||||||||
Sales return reserve | 0 | 907 | 0 | 0 | 0 | 907 | |||||||||||||||||||
Allowance for doubtful accounts | 348 | 138 | 43 | 0 | 0 | 529 | |||||||||||||||||||
Year ended December 31, 2012: | |||||||||||||||||||||||||
Accrued rebates | $ | 6,025 | $ | 16,449 | $ | (434 | ) | $ | (8,193 | ) | $ | (4,222 | ) | $ | 9,625 | ||||||||||
Reserve for cash discounts | 342 | 4,214 | 0 | (4,184 | ) | 0 | 372 | ||||||||||||||||||
Allowance for doubtful accounts | 513 | 0 | (165 | ) | 0 | 0 | 348 | ||||||||||||||||||
Year ended December 31, 2011: | |||||||||||||||||||||||||
Accrued rebates | $ | 5,899 | $ | 14,369 | $ | (639 | ) | $ | (10,042 | ) | $ | (3,562 | ) | $ | 6,025 | ||||||||||
Reserve for cash discounts | 304 | 3,543 | 0 | (3,209 | ) | (296 | ) | 342 | |||||||||||||||||
Allowance for doubtful accounts | 64 | 0 | 1,053 | 0 | (604 | ) | 513 |
DERIVATIVE_INSTRUMENTS_AND_HED1
DERIVATIVE INSTRUMENTS AND HEDGING STRATEGIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Fair Value Carrying Amount of Derivative Instruments | ' | ||||||||||||
The fair value carrying amounts of the Company’s derivative instruments were as follows: | |||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
December 31, 2013 | December 31, 2013 | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 0 | Accounts payable and | $ | 2,186 | |||||||
accrued liabilities | |||||||||||||
Forward foreign currency exchange contracts | Other assets | 0 | Other long- term liabilities | 0 | |||||||||
Total | $ | 0 | $ | 2,186 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 59 | Accounts payable and | $ | 0 | |||||||
accrued liabilities | |||||||||||||
Total | 59 | 0 | |||||||||||
Total value of derivative contracts | $ | 59 | $ | 2,186 | |||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||
December 31, 2012 | December 31, 2012 | ||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||
Derivatives designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 1,463 | Accounts payable and | $ | 1,078 | |||||||
accrued liabilities | |||||||||||||
Forward foreign currency exchange contracts | Other assets | 0 | Other long- term liabilities | 368 | |||||||||
Total | $ | 1,463 | $ | 1,446 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||||
Forward foreign currency exchange contracts | Other current assets | $ | 84 | Accounts payable and | $ | 0 | |||||||
accrued liabilities | |||||||||||||
Total | 84 | 0 | |||||||||||
Total value of derivative contracts | $ | 1,547 | $ | 1,446 | |||||||||
Effect of Derivative Instruments | ' | ||||||||||||
The effect of the Company’s derivative instruments on the Consolidated Financial Statements for the years ended December 31, 2013, 2012 and 2011 was as follows: | |||||||||||||
Forward Foreign Currency Exchange Contracts | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Derivatives Designated as Hedging Instruments: | |||||||||||||
Net gain (loss) recognized in Other Comprehensive Income (OCI) (1) | $ | (1,366 | ) | $ | (8,749 | ) | $ | 8,163 | |||||
Net gain (loss) reclassified from accumulated OCI into income (2) | 49 | (3,683 | ) | 2,989 | |||||||||
Net gain (loss) recognized in income (3) | 310 | 927 | (1,486 | ) | |||||||||
Derivatives Not Designated as Hedging Instruments: | |||||||||||||
Net gain (loss) recognized in income (4) | $ | (2,041 | ) | $ | 674 | $ | 674 | ||||||
-1 | Net change in the fair value of the effective portion classified as OCI. | ||||||||||||
-2 | Effective portion classified as net product revenue. | ||||||||||||
-3 | Ineffective portion and amount excluded from effectiveness testing classified as selling, general and administrative expense. | ||||||||||||
-4 | Classified as selling, general and administrative expense. |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value of Financial Assets and Liabilities | ' | ||||||||||||||||
The tables below present the fair value of these financial assets and liabilities determined using the following input levels. | |||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||
Quoted Price in | Significant Other | Significant | Total | ||||||||||||||
Active Markets | Observable Inputs | Unobservable | |||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Overnight deposits | $ | 156,228 | $ | 0 | $ | 0 | $ | 156,228 | |||||||||
Money market instruments | 0 | 412,553 | 0 | 412,553 | |||||||||||||
Total cash and cash equivalents | $ | 156,228 | $ | 412,553 | $ | 0 | $ | 568,781 | |||||||||
Available-for-sale securities: | |||||||||||||||||
Short-term: | |||||||||||||||||
Certificates of deposit | $ | 0 | $ | 30,513 | $ | 0 | $ | 30,513 | |||||||||
Corporate debt securities | 0 | 99,251 | 0 | 99,251 | |||||||||||||
Commercial paper | 0 | 86,178 | 0 | 86,178 | |||||||||||||
Long-term: | |||||||||||||||||
Certificates of deposit | 0 | 16,497 | 0 | 16,497 | |||||||||||||
Corporate debt securities | 0 | 242,158 | 0 | 242,158 | |||||||||||||
U.S. Government agency securities | 0 | 8,901 | 0 | 8,901 | |||||||||||||
Greek government-issued bonds | 0 | 144 | 0 | 144 | |||||||||||||
Total available-for-sale securities | $ | 0 | $ | 483,642 | $ | 0 | $ | 483,642 | |||||||||
Other Current Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | $ | 0 | $ | 136 | $ | 0 | $ | 136 | |||||||||
Forward foreign currency exchange contract assets (1) | 0 | 59 | 0 | 59 | |||||||||||||
Restricted investments (2) | 0 | 5,670 | 0 | 5,670 | |||||||||||||
Total other current assets | $ | 0 | $ | 5,865 | $ | 0 | $ | 5,865 | |||||||||
Other Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | $ | 0 | $ | 3,459 | $ | 0 | $ | 3,459 | |||||||||
Restricted investments (2) | 0 | 412 | 0 | 412 | |||||||||||||
Strategic investment (3) | 13,000 | 0 | 0 | 13,000 | |||||||||||||
Total other assets | $ | 13,000 | $ | 3,871 | $ | 0 | $ | 16,871 | |||||||||
Total assets | $ | 169,228 | $ | 905,931 | $ | 0 | $ | 1,075,159 | |||||||||
Liabilities: | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 1,227 | $ | 136 | $ | 0 | $ | 1,363 | |||||||||
Forward foreign currency exchange contract liability (1) | 0 | 2,186 | 0 | 2,186 | |||||||||||||
Contingent acquisition consideration payable | 0 | 0 | 11,882 | 11,882 | |||||||||||||
Total current liabilities | $ | 1,227 | $ | 2,322 | $ | 11,882 | $ | 15,431 | |||||||||
Other long-term liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 12,345 | $ | 3,459 | $ | 0 | $ | 15,804 | |||||||||
Contingent acquisition consideration payable | 0 | 0 | 30,790 | 30,790 | |||||||||||||
Asset retirement obligation | 0 | 0 | 4,122 | 4,122 | |||||||||||||
Total other long-term liabilities | $ | 12,345 | $ | 3,459 | $ | 34,912 | $ | 50,716 | |||||||||
Total liabilities | $ | 13,572 | $ | 5,781 | $ | 46,794 | $ | 66,147 | |||||||||
Fair Value Measurements at December 31, 2012 | |||||||||||||||||
Quoted Price in | Significant Other | Significant | Total | ||||||||||||||
Active Markets | Observable Inputs | Unobservable | |||||||||||||||
for Identical | (Level 2) | Inputs | |||||||||||||||
Assets | (Level 3) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets: | |||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Overnight deposits | $ | 54,018 | $ | 0 | $ | 0 | $ | 54,018 | |||||||||
Money market instruments | 0 | 126,509 | 0 | 126,509 | |||||||||||||
Total cash and cash equivalents | $ | 54,018 | $ | 126,509 | $ | 0 | $ | 180,527 | |||||||||
Available-for-sale securities: | |||||||||||||||||
Short-term: | |||||||||||||||||
Certificates of deposit | $ | 0 | $ | 36,615 | $ | 0 | $ | 36,615 | |||||||||
Corporate debt securities | 0 | 222,147 | 0 | 222,147 | |||||||||||||
U.S. Government agency securities | 0 | 8,516 | 0 | 8,516 | |||||||||||||
Long-term: | |||||||||||||||||
Certificates of deposit | 0 | 12,139 | 0 | 12,139 | |||||||||||||
Corporate debt securities | 0 | 94,753 | 0 | 94,753 | |||||||||||||
U.S. Government agency securities | 0 | 9,001 | 0 | 9,001 | |||||||||||||
Greek government-issued bonds | 0 | 100 | 0 | 100 | |||||||||||||
Total available-for-sale securities | $ | 0 | $ | 383,271 | $ | 0 | $ | 383,271 | |||||||||
Other Current Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | $ | 0 | $ | 2,052 | $ | 0 | $ | 2,052 | |||||||||
Forward foreign currency exchange contract asset (1) | 0 | 1,547 | 0 | 1,547 | |||||||||||||
Restricted investments (2) | 0 | 2,243 | 0 | 2,243 | |||||||||||||
Total other current assets | $ | 0 | $ | 5,842 | $ | 0 | $ | 5,842 | |||||||||
Other Assets: | |||||||||||||||||
Nonqualified Deferred Compensation Plan assets | $ | 0 | $ | 2,375 | $ | 0 | $ | 2,375 | |||||||||
Restricted investments (2) | 0 | 3,492 | 0 | 3,492 | |||||||||||||
Strategic investment (3) | 2,933 | 0 | 0 | 2,933 | |||||||||||||
Total other assets | $ | 2,933 | $ | 5,867 | $ | 0 | $ | 8,800 | |||||||||
Total assets | $ | 56,951 | $ | 521,489 | $ | 0 | $ | 578,440 | |||||||||
Liabilities: | |||||||||||||||||
Current Liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 6,440 | $ | 0 | $ | 0 | $ | 6,440 | |||||||||
Forward foreign currency exchange contract liability (1) | 0 | 1,078 | 0 | 1,078 | |||||||||||||
Contingent acquisition consideration payable | 0 | 0 | 10,764 | 10,764 | |||||||||||||
Asset retirement obligation | 0 | 0 | 1,685 | 1,685 | |||||||||||||
Total current liabilities | $ | 6,440 | $ | 1,078 | $ | 12,449 | $ | 19,967 | |||||||||
Other long-term liabilities: | |||||||||||||||||
Nonqualified Deferred Compensation Plan liability | $ | 5,041 | $ | 4,427 | $ | 0 | $ | 9,468 | |||||||||
Forward foreign currency exchange contract liability (1) | 0 | 368 | 0 | 368 | |||||||||||||
Contingent acquisition consideration payable | 0 | 0 | 30,618 | 30,618 | |||||||||||||
Asset retirement obligation | 0 | 0 | 2,192 | 2,192 | |||||||||||||
Total other long-term liabilities | $ | 5,041 | $ | 4,795 | $ | 32,810 | $ | 42,646 | |||||||||
Total liabilities | $ | 11,481 | $ | 5,873 | $ | 45,259 | $ | 62,613 | |||||||||
-1 | See Note 14 to these Consolidated Financial Statements for further information regarding the derivative instruments. | ||||||||||||||||
-2 | The restricted investments secure the Company’s irrevocable standby letter of credit obtained in connection with the Company’s new corporate facility lease agreements and certain commercial agreements. | ||||||||||||||||
-3 | The Company has an investment in marketable equity securities measured using quoted prices in an active market that is considered a strategic investment. See Note 6 to these Consolidated Financial Statements for additional discussion regarding the Company’s strategic investment. | ||||||||||||||||
Liabilities Measured at Fair Value Using Level 3 Inputs | ' | ||||||||||||||||
Contingent acquisition consideration payable at December 31, 2012 | $ | 41,382 | |||||||||||||||
Changes in the fair value of the contingent acquisition consideration payable | 14,453 | ||||||||||||||||
Addition of contingent consideration payable related to the Zacharon acquisition | 1,857 | ||||||||||||||||
Milestone payments to former LEAD shareholders | (15,020 | ) | |||||||||||||||
Contingent acquisition consideration payable at December 31, 2013 | $ | 42,672 | |||||||||||||||
Asset Retirement Obligation Liability and Corresponding Capital Asset | ' | ||||||||||||||||
Asset retirement obligations at December 31, 2012 | $ | 3,877 | |||||||||||||||
Accretion | 155 | ||||||||||||||||
Accruals added for new leases | 90 | ||||||||||||||||
Asset retirement obligations at December 31, 2013 | $ | 4,122 | |||||||||||||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
The following table summarizes activity under the Company’s stock option plans, including the 2012 Inducement Plan and those suspended upon the adoption of the Share Incentive Plan for the year ended December 31, 2013. All option grants presented in the table had exercise prices not less than the fair value of the underlying common stock on the grant date: | |||||||||||||||||
Shares | Weighted- | Weighted | Aggregate Intrinsic | ||||||||||||||
Average | Average | Value (1) | |||||||||||||||
Exercise Price | Remaining Years | ||||||||||||||||
Options outstanding as of December 31, 2012 | 13,865,151 | $ | 25.69 | ||||||||||||||
Granted | 2,555,122 | $ | 66.75 | ||||||||||||||
Exercised | (2,885,052 | ) | $ | 22.73 | |||||||||||||
Expired and forfeited | (377,938 | ) | $ | 34.43 | |||||||||||||
Options outstanding as of December 31, 2013 | 13,157,283 | $ | 34.06 | 6.7 | $ | 477,618 | |||||||||||
Options expected to vest at December 31, 2013 | 4,156,902 | $ | 47.23 | 96,260 | |||||||||||||
Exercisable at December 31, 2013 | 8,394,774 | $ | 26.33 | 5.7 | $ | 369,564 | |||||||||||
-1 | The aggregate intrinsic value for outstanding options is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock as of the last trading day of fiscal 2013. The aggregate intrinsic value of options outstanding and exercisable includes options with an exercise price below $70.35, the closing price of the Company’s common stock on December 31, 2013. | ||||||||||||||||
Stock Option Valuation Assumptions | ' | ||||||||||||||||
The assumptions used to estimate the per share fair value of stock options granted under the 2012 Inducement Plan and the 2006 Share Incentive Plan were as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected volatility | 44 – 47% | 45 – 46% | 46 – 50% | ||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||||
Expected life | 6.6 – 6.8 years | 6.5 years | 6.3 – 6.4 years | ||||||||||||||
Risk-free interest rate | 1.0 – 2.4% | 0.8 – 1.1% | 1.2 – 2.7% | ||||||||||||||
Employee Stock Purchase Plan Valuation Assumptions | ' | ||||||||||||||||
The assumptions used to estimate the per share fair value of stock purchase rights granted under the ESPP were as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Expected volatility | 37% | 31% | 32-48% | ||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||||
Expected life | 6-24 months | 6-24 months | 6-24 months | ||||||||||||||
Risk-free interest rate | 0.1-0.3% | 0.2-0.3% | 0.1-0.6% | ||||||||||||||
Multiple Performance Conditions for Vesting of Base RSUs | ' | ||||||||||||||||
The vesting of the Base RSUs under these specific grants is contingent upon the achievement of multiple performance conditions, as follows: | |||||||||||||||||
Strategic Performance Goals | Percentage of Base | Base Number of | |||||||||||||||
RSUs to | RSUs Granted | ||||||||||||||||
Vest Upon | Before TSR | ||||||||||||||||
Achievement of Goal | Multiplier | ||||||||||||||||
Product Goals | |||||||||||||||||
Approval of VIMIZIM in the U.S. or EU prior to December 31, 2015 | 35 | % | 301,000 | ||||||||||||||
Approval of PEG PAL or any other non-VIMIZIM product in the U.S. or EU prior to December 31, 2015 | 25 | % | 215,000 | ||||||||||||||
Financial Goal | |||||||||||||||||
Total revenues of at least $775.0 million in fiscal 2015 | 40 | % | 344,000 | ||||||||||||||
860,000 | |||||||||||||||||
Assumptions Used to Estimate Fair Value of Restricted Stock Units with Performance and Market Vesting Conditions | ' | ||||||||||||||||
The assumptions used to estimate the fair value of the RSUs with performance and market vesting conditions were as follows: | |||||||||||||||||
Grant Date | |||||||||||||||||
September 5, 2012 | May 29, 2012 | June 1, 2011 | |||||||||||||||
Fair value of the Company’s common stock on grant date | $ | 37.45 | $ | 39.06 | $ | 28.11 | |||||||||||
Expected volatility | 31.73 | % | 44.87 | % | 47.95 | % | |||||||||||
Risk-free interest rate | 0.37 | % | 0.52 | % | 1.42 | % | |||||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||||||
Compensation expense included in the Company’s Consolidated Statements of Operations for all stock-based compensation arrangements was as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Cost of sales | $ | 4,860 | $ | 4,890 | $ | 5,171 | |||||||||||
Research and development | 27,763 | 20,736 | 16,365 | ||||||||||||||
Selling, general and administrative | 31,753 | 22,346 | 22,283 | ||||||||||||||
Total stock-based compensation expense | $ | 64,376 | $ | 47,972 | $ | 43,819 | |||||||||||
Restricted Stock With Service Based Vesting Conditions | ' | ||||||||||||||||
Summary of Non-Vested Restricted Stock Unit Activity | ' | ||||||||||||||||
A summary of non-vested RSU activity under the plan for the year ended December 31, 2013 as follows: | |||||||||||||||||
Shares | Weighted | Weighted | Aggregate Intrinsic | ||||||||||||||
Average Grant | Average | Value | |||||||||||||||
Date Fair | Remaining Years | ||||||||||||||||
Value | |||||||||||||||||
Non-vested units as of December 31, 2012 | 898,949 | $ | 33.1 | ||||||||||||||
Granted | 592,001 | $ | 66.81 | ||||||||||||||
Vested | (300,968 | ) | $ | 30.69 | |||||||||||||
Forfeited | (56,147 | ) | $ | 40.8 | |||||||||||||
Non-vested units as of December 31, 2013 | 1,133,835 | $ | 50.97 | 8.7 | $ | 79,765 | |||||||||||
Non-vested units expected to vest at December 31, 2013 | 1,039,520 | $ | 50.62 | $ | 73,130 | ||||||||||||
Restricted Stock With Performance and Market Based Vesting Conditions | ' | ||||||||||||||||
Summary of Non-Vested Restricted Stock Unit Activity | ' | ||||||||||||||||
A summary of non-vested Base RSU activity under the plans for the year ended December 31, 2013 is as follows: | |||||||||||||||||
Base Awards | Weighted | Weighted | Aggregate | ||||||||||||||
Average Grant | Average | Intrinsic Value | |||||||||||||||
Date Fair | Remaining | ||||||||||||||||
Value | Years | ||||||||||||||||
Non-vested units with performance and market vesting conditions as of December 31, 2012 | 875,000 | $ | 33.83 | ||||||||||||||
Granted | 0 | ||||||||||||||||
Vested | 0 | ||||||||||||||||
Forfeited | (15,000 | ) | $ | 32.61 | |||||||||||||
Non-vested units with performance and market vesting conditions as of December 31, 2013 | 860,000 | $ | 34.66 | 2.2 | $ | 60,501 | |||||||||||
COMPREHENSIVE_INCOME_Tables
COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The following table summarizes amounts reclassified out of Accumulated Other Comprehensive Income/(Loss) (AOCI) and their effect on the Company’s Consolidated Statements of Operations for the year ended December 31, 2013. | |||||||||||||||||
Amount Reclassified | |||||||||||||||||
from AOCI | |||||||||||||||||
(Gain) Loss | |||||||||||||||||
Details about AOCI Components | Year Ended December 31, | Consolidated Statement of | |||||||||||||||
2013 | Operations Classification | ||||||||||||||||
Gains on cash flow hedges: | |||||||||||||||||
Forward foreign currency exchange contracts | $ | (37 | ) | Net product revenues | |||||||||||||
Forward foreign currency exchange contracts | (40 | ) | Selling, general and administrative | ||||||||||||||
28 | Provision for income taxes | ||||||||||||||||
$ | (49 | ) | Net loss | ||||||||||||||
Summary of Changes in Accumulated Balances of Other Comprehensive Income Loss Including Current Period Other Comprehensive Income and Reclassifications | ' | ||||||||||||||||
The following table summarizes changes in the accumulated balances for each component, of other comprehensive income/(loss), including current period other comprehensive income and reclassifications out of AOCI, for the year ended December 31, 2013. | |||||||||||||||||
Gains (Losses) | Unrealized | Foreign | Total | ||||||||||||||
on Cash Flow | Gain (Losses) on | Currency | |||||||||||||||
Hedges | Available-for-sale | Translation | |||||||||||||||
Securities | Adjustments | ||||||||||||||||
AOCI balance, net of tax at December 31, 2012 | $ | (97 | ) | $ | 133 | $ | (238 | ) | $ | (202 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (1,366 | ) | 6,275 | 361 | 5,270 | ||||||||||||
Less amounts reclassified from AOCI | 49 | 1 | 0 | 50 | |||||||||||||
Net increase in other comprehensive income (loss) | (1,415 | ) | 6,274 | 361 | 5,220 | ||||||||||||
AOCI balance, net of tax at December 31, 2013 | $ | (1,512 | ) | $ | 6,407 | $ | 123 | $ | 5,018 | ||||||||
REVENUE_AND_CREDIT_CONCENTRATI1
REVENUE AND CREDIT CONCENTRATIONS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule of Accounts Receivable by Country that were Past Due | ' | ||||||||||||||||||||
The following table summarizes the accounts receivable by country that were past due related to Italy, Spain, Portugal and Greece, the number of days past due and the total allowance for doubtful accounts related to each of these countries at December 31, 2013. | |||||||||||||||||||||
Days Past Due | |||||||||||||||||||||
< 180 Days | 180 — 360 | > 360 Days | Total Amount | Allowance for | |||||||||||||||||
Days | Past Due | Doubtful | |||||||||||||||||||
Accounts | |||||||||||||||||||||
Italy | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | |||||||||||
Spain | 2,031 | 1,443 | 2,166 | 5,640 | 0 | ||||||||||||||||
Portugal | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
Greece | 0 | 0 | 352 | 352 | 352 | ||||||||||||||||
Total | $ | 2,031 | $ | 1,443 | $ | 2,518 | $ | 5,992 | $ | 352 | |||||||||||
Geographic Concentration Risk | Net Product Revenues | ' | ||||||||||||||||||||
Schedules of Net Product Revenue Concentration | ' | ||||||||||||||||||||
The table below summarizes net product revenue concentrations based on patient location for Naglazyme, Kuvan and Firdapse and Genzyme’s headquarters for Aldurazyme. Although Genzyme sells Aldurazyme worldwide, the royalties earned by the Company on Genzyme’s net sales are included in the U.S. region, as the transactions are with Genzyme whose headquarters are located in the U.S. | |||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Region: | |||||||||||||||||||||
United States | 52 | % | 50 | % | 51 | % | |||||||||||||||
Europe | 22 | % | 22 | % | 23 | % | |||||||||||||||
Latin America | 13 | % | 15 | % | 13 | % | |||||||||||||||
Rest of world | 13 | % | 13 | % | 13 | % | |||||||||||||||
Total net product revenue | 100 | % | 100 | % | 100 | % | |||||||||||||||
Customer Concentration Risk | Net Product Revenues | ' | ||||||||||||||||||||
Schedules of Net Product Revenue Concentration | ' | ||||||||||||||||||||
The following table illustrates the percentage of the consolidated net product revenue attributed to the Company’s four largest customers. | |||||||||||||||||||||
For the Years Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Customer A | 15 | % | 15 | % | 17 | % | |||||||||||||||
Customer B (1) | 16 | % | 16 | % | 19 | % | |||||||||||||||
Customer C | 9 | % | 12 | % | 10 | % | |||||||||||||||
Customer D | 11 | % | 9 | % | 8 | % | |||||||||||||||
Total | 51 | % | 52 | % | 54 | % | |||||||||||||||
-1 | Genzyme is the Company’s sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme are comprised of royalties on worldwide net Aldurazyme sales and incremental product transfer revenue. |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Provision for (Benefit from) Income Taxes Based on Income (Loss) Before Income Taxes | ' | ||||||||||||
The provision for (benefit from) income taxes is based on income (loss) before income taxes as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. Source | $ | 46,675 | $ | 45,422 | $ | 63,640 | |||||||
Non-U.S. Source | (223,178 | ) | (163,700 | ) | (107,267 | ) | |||||||
Loss before income taxes | $ | (176,503 | ) | $ | (118,278 | ) | $ | (43,627 | ) | ||||
Schedule of Components of Provision for (Benefit From) Income Taxes | ' | ||||||||||||
The U.S. and foreign components of the provision for (benefit from) income taxes are as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Provision for current income tax expense: | |||||||||||||
Federal | $ | 5,060 | $ | 2,253 | $ | 2,766 | |||||||
State and local | 1,496 | 1,879 | 1,439 | ||||||||||
Foreign | 2,199 | 1,858 | 1,641 | ||||||||||
$ | 8,755 | $ | 5,990 | $ | 5,846 | ||||||||
Provision for deferred income tax expense (benefit): | |||||||||||||
Federal | $ | (6,084 | ) | $ | (6,055 | ) | $ | 7,398 | |||||
State and local | (2,658 | ) | (3,891 | ) | (2,957 | ) | |||||||
Foreign | (163 | ) | 25 | (78 | ) | ||||||||
$ | (8,905 | ) | $ | (9,921 | ) | $ | 4,363 | ||||||
Provision for (benefit from) income taxes | $ | (150 | ) | $ | (3,931 | ) | $ | 10,209 | |||||
Schedule of Reconciliation of Statutory Federal Income Tax Rate to Company's Effective Income Tax Rate | ' | ||||||||||||
The following is a reconciliation of the statutory federal income tax rate to the Company’s effective income tax rate expressed as a percentage of income (loss) before income taxes: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | |||||||
State and local taxes | (0.3 | ) | (1.3 | ) | (1.9 | ) | |||||||
Orphan Drug & General Business Credit | 14.7 | 27.6 | 43.9 | ||||||||||
Stock compensation expense | (1.7 | ) | (1.6 | ) | (8.2 | ) | |||||||
Changes in the fair value of contingent acquisition consideration payable | (2.9 | ) | (2.6 | ) | 1.5 | ||||||||
Foreign tax rate differential | (45.4 | ) | (50.0 | ) | (86.7 | ) | |||||||
Other | 1.6 | (3.2 | ) | (2.0 | ) | ||||||||
Valuation allowance/Deferred benefit | (0.9 | ) | (0.6 | ) | (5.0 | ) | |||||||
Effective income tax rate | 0.1 | % | 3.3 | % | (23.4 | )% | |||||||
Schedule of Components of Net Deferred Tax Assets | ' | ||||||||||||
The significant components of the Company’s net deferred tax assets are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Net deferred tax assets: | |||||||||||||
Net operating loss carryforwards | $ | 22,890 | $ | 20,431 | |||||||||
Credit carryforwards | 176,226 | 170,322 | |||||||||||
Property, plant and equipment | 504 | 1,791 | |||||||||||
Accrued expenses, reserves, and prepaids | 21,071 | 18,770 | |||||||||||
Intangible assets | 8,255 | 6,161 | |||||||||||
Stock-based compensation | 29,603 | 22,634 | |||||||||||
Inventory | 12,417 | 17,074 | |||||||||||
Capital loss carryforwards | 3,071 | 3,083 | |||||||||||
Other | 799 | 764 | |||||||||||
Gross deferred tax assets | $ | 274,836 | $ | 261,030 | |||||||||
Joint venture basis difference | (1,806 | ) | (1,801 | ) | |||||||||
Acquired Intangibles | (34,091 | ) | (31,420 | ) | |||||||||
Convertible notes discount | (46,029 | ) | 0 | ||||||||||
Other comprehensive loss | (3,611 | ) | (75 | ) | |||||||||
Valuation allowance | (8,347 | ) | (6,075 | ) | |||||||||
Net deferred tax assets | $ | 180,952 | $ | 221,659 | |||||||||
Schedule of Reconciliation of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013 is as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at beginning of period | $ | 43,531 | $ | 36,350 | |||||||||
Additions based on tax positions related to the current year | 7,478 | 7,190 | |||||||||||
Additions for tax positions of prior years | (194 | ) | (9 | ) | |||||||||
Balance at end of period | $ | 50,815 | $ | 43,531 | |||||||||
JOINT_VENTURE_Tables
JOINT VENTURE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Schedule of Joint Venture's Operations | ' | ||||||||||||
The results of the joint venture’s operations are presented in the table below. | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(unaudited) | (unaudited) | (unaudited) | |||||||||||
Revenue | $ | 0 | $ | 0 | $ | 0 | |||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||||
Gross profit | 0 | 0 | 0 | ||||||||||
Operating expenses | 2,221 | 2,534 | 4,855 | ||||||||||
Loss from operations | (2,221 | ) | (2,534 | ) | (4,855 | ) | |||||||
Other income | 3 | 4 | 5 | ||||||||||
Net loss | $ | (2,218 | ) | $ | (2,530 | ) | $ | (4,850 | ) | ||||
Equity in the loss of BioMarin/Genzyme LLC | $ | (1,149 | ) | $ | (1,221 | ) | $ | (2,426 | ) | ||||
Schedule of Assets and Liabilities, Components of Investment in Joint Venture | ' | ||||||||||||
The summarized assets and liabilities of the joint venture and the components of the Company’s investment in the joint venture are as follows: | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
(unaudited) | (unaudited) | ||||||||||||
Assets | $ | 1,770 | $ | 3,343 | |||||||||
Liabilities | (136 | ) | (1,747 | ) | |||||||||
Net equity | $ | 1,634 | $ | 1,596 | |||||||||
Investment in BioMarin/Genzyme LLC (50% share of net equity) | $ | 816 | $ | 1,080 | |||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Schedule of Minimum Lease Payments for Future Years | ' | ||||
index or annual minimum increases. Minimum lease payments for future years are as follows: | |||||
2014 | $ | 10,897 | |||
2015 | 10,059 | ||||
2016 | 8,907 | ||||
2017 | 8,343 | ||||
2018 | 8,045 | ||||
Thereafter | 20,280 | ||||
Total | $ | 66,531 | |||
Recovered_Sheet1
Nature of Operations and Business Risks - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Nature Of Operations [Line Items] | ' | ' |
Accumulated losses | ($715,801) | ($539,448) |
Recovered_Sheet2
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Significant Accounting Policies [Line Items] | ' |
Percentage of share in gain / loss from joint ventures | 50.00% |
Minimum | ' |
Significant Accounting Policies [Line Items] | ' |
Royalty payment as percentage of net sales | 39.50% |
Maximum | ' |
Significant Accounting Policies [Line Items] | ' |
Royalty payment as percentage of net sales | 50.00% |
Schedule_of_Property_Plant_and
Schedule of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Leasehold Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | 'Shorter of life of asset or lease term |
Building and Improvements | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life, (in years) | '20 years |
Building and Improvements | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life, (in years) | '30 years |
Manufacturing and Laboratory Equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life, (in years) | '5 years |
Manufacturing and Laboratory Equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life, (in years) | '15 years |
Computer Hardware and Software | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life, (in years) | '3 years |
Computer Hardware and Software | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life, (in years) | '8 years |
Office Furniture and Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life, (in years) | '5 years |
Vehicles | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, useful life, (in years) | '5 years |
Convertible_Debt_Additional_In
Convertible Debt - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 15, 2013 | Dec. 31, 2013 | Oct. 15, 2013 | Dec. 31, 2013 | Apr. 30, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2011 | Mar. 31, 2006 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Dec. 31, 2013 | Oct. 15, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Oct. 15, 2013 | Dec. 31, 2012 | |
Investment | Minimum | Convertible Senior Notes | Convertible Senior Notes | Convertible Notes due 2017 | Convertible Notes due 2017 | Convertible Notes due 2017 | Convertible Notes due 2017 | Convertible Notes due 2017 | Convertible Notes due 2017 | Convertible Notes due 2013 | Convertible Notes due 2013 | Convertible Notes due 2013 | Convertible Notes due 2013 | Convertible Notes due 2013 | Convertible Notes due 2013 | Convertible Notes due 2013 | Convertible Notes due 2018 | Convertible Notes due 2018 | Convertible Notes due 2018 | Convertible Notes due 2020 | Convertible Notes due 2020 | Convertible Notes due 2020 | ||||
D | Agreement One | Convertible Senior Notes | Investment | Convertible Senior Notes | ||||||||||||||||||||||
Investment | Agreement One | |||||||||||||||||||||||||
Debt Conversion [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | $750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $375,000,000 | ' | ' | $375,000,000 | ' |
Debt instrument, interest rate, stated percentage, per annum | ' | ' | ' | ' | ' | ' | ' | 1.88% | ' | ' | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | 0.75% | ' | ' | 1.50% | ' |
Net proceeds from offering debt | ' | ' | ' | ' | ' | 726,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of note principal amount | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes converted, number of shares | 7,965,975 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,906,780 | ' | 1,760,178 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion rate of shares | 10.6213 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount on conversion rate | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, convertible, conversion price, per share | $94.15 | ' | ' | ' | ' | ' | ' | $20.36 | ' | ' | ' | ' | ' | ' | $16.58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock trading day | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consecutive common stock trading days | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument convertible threshold percentage | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business day period | '5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trading price percentage on reported sale price of common stock | 98.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Unamortized Discount | ' | ' | ' | ' | ' | ' | 161,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68,500,000 | ' | 0 | 87,975,000 | ' | 0 |
Debt instrument, convertible, interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | 1,100,000 | ' | ' | ' | ' | ' | ' | 2,600,000 | ' | ' | 2,200,000 | ' | ' |
Carrying value of equity component | 156,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Offering costs | 15,374,000 | 3,675,000 | ' | ' | ' | ' | 5,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate on liability component | 7.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance costs | 23,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | 900,000 | 900,000 | ' | ' | ' | ' | ' | 27,000 | 100,000 | 200,000 | ' | 400,000 | ' | ' | 300,000 | ' | ' |
Common stock shares covered under capped call transactions | 3,982,988 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Strike price | 94.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cap price | 121.05 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment for capped calls transactions | 29,813,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | 324,900,000 | ' | ' | ' | ' | ' | ' | 172,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible debt | 655,566,000 | 348,224,000 | ' | ' | ' | ' | ' | ' | 62,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maturity date of convertible debt | ' | ' | ' | ' | ' | ' | ' | 23-Apr-17 | ' | ' | ' | ' | ' | ' | 29-Mar-13 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of debt issuance costs | ' | ' | ' | ' | ' | ' | ' | 8,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes aggregate principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 262,800,000 | ' | 29,200,000 | ' | 23,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible cash premium paid to holder for agreeing to convert | 12,965,000 | 0 | 1,896,000 | ' | ' | ' | ' | ' | ' | ' | ' | 14,800,000 | 13,000,000 | ' | ' | ' | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' |
Reclassified of deferred offering costs to additional paid-in capital | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued upon conversion of convertible notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,403,735 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment on debt conversion | $12,965,000 | $0 | $1,896,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $98,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Convertible_Debt_De
Summary of Convertible Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ||
Short-term convertible debt | $0 | $23,365 | ||
Long-term convertible debt, net of unamortized discount | 655,566 | 324,859 | ||
Total convertible debt, net of unamortized discount | 655,566 | 348,224 | ||
Convertible Notes, fair value | 1,012,335 | 811,798 | ||
Convertible Notes due 2013 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Short-term convertible debt | 0 | 23,365 | ||
Convertible Notes, fair value | 0 | [1] | 23,365 | [1] |
Convertible Notes due 2020 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long-term convertible debt, net of unamortized discount | 287,025 | 0 | ||
Convertible Notes, fair value | 400,879 | [1] | 0 | [1] |
Convertible Notes due 2018 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long-term convertible debt, net of unamortized discount | 306,500 | 0 | ||
Convertible Notes, fair value | 397,691 | [1] | 0 | [1] |
Convertible Notes due 2017 | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Long-term convertible debt, net of unamortized discount | 62,041 | 324,859 | ||
Total convertible debt, net of unamortized discount | 62,000 | ' | ||
Convertible Notes, fair value | $213,765 | [1] | $788,433 | [1] |
[1] | The fair value of the Company's fixed rate convertible debt is based on open market trades and is classified as Level 1 in the fair value hierarchy. |
Summary_of_Convertible_Debt_Pa
Summary of Convertible Debt (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Convertible Notes due 2020 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term convertible debt, unamortized discount | $87,975 | $0 |
Convertible Notes due 2018 | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term convertible debt, unamortized discount | $68,500 | $0 |
Summary_of_Interest_Expense_on
Summary of Interest Expense on Convertible Debt (Detail) (Convertible Senior Notes, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Convertible Senior Notes | ' | ' | ' |
Schedule Of Interest Expenses [Line Items] | ' | ' | ' |
Coupon interest | $4,550 | $6,678 | $7,361 |
Amortization of issuance costs | 1,053 | 960 | 1,048 |
Accretion of debt discount | 4,821 | 0 | 0 |
Total interest expense on convertible debt | $10,424 | $7,638 | $8,409 |
AntiDilutive_Common_Stock_Excl
Anti-Dilutive Common Stock Excluded From Computation of Diluted Net Loss Per Share (Detail) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 25,719 | 32,921 | 35,173 |
Stock Option | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 13,157 | 13,895 | 16,319 |
Common stock issuable under the 2013 and 2017 Notes | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 3,047 | 17,365 | 17,372 |
Common stock issuable under the 2018 and 2020 Notes | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 7,966 | 0 | 0 |
Unvested restricted stock units | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 1,159 | 1,165 | 1,068 |
Potentially issuable common stock for ESPP purchases | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 197 | 263 | 241 |
Common stock held by the Nonqualified Deferred Compensation Plan | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Potential shares of common stock excluded from computation of earnings (loss) per share as they are anti-dilutive | 193 | 233 | 173 |
Net_Loss_Per_Common_Share_Addi
Net Loss Per Common Share - Additional Information (Detail) (USD $) | Dec. 31, 2013 |
Earnings Per Share [Line Items] | ' |
Debt instrument, convertible, conversion price, per share | $94.15 |
Recovered_Sheet3
Acquisition of Zacharon Pharmaceuticals Incorporated - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 04, 2013 | Dec. 31, 2013 |
Zacharon Pharmaceuticals Inc | Zacharon Pharmaceuticals Inc | |||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Total purchase price | ' | ' | $11,500,000 | ' |
Acquisition cash paid, net of transaction costs | ' | ' | 9,700,000 | ' |
Acquisition, transaction cost | ' | ' | 800,000 | ' |
Maximum potential additional consideration milestone payments | ' | ' | 134,000,000 | ' |
Fair value of intangible assets | 42,700,000 | ' | 1,900,000 | ' |
Discount rate | ' | ' | ' | 4.70% |
Adjustment to goodwill and deferred tax assets | ' | ' | ' | 700,000 |
Intangible assets | ' | ' | 11,680,000 | ' |
Deferred tax assets acquisition | ' | ' | 2,625,000 | ' |
Deferred tax liability | ' | ' | 4,217,000 | ' |
Goodwill resulting from acquisition | $54,258,000 | $51,543,000 | $2,715,000 | ' |
Allocation_of_Purchase_Conside
Allocation of Purchase Consideration Including Contingent Acquisition Consideration Payable (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 04, 2013 |
In Thousands, unless otherwise specified | Zacharon Pharmaceuticals Inc | ||
Schedule of Business Acquisitions, Purchase Price Allocation [Line Items] | ' | ' | ' |
Cash and cash equivalents | ' | ' | $560 |
Other current assets | ' | ' | 216 |
Property, plant and equipment | ' | ' | 398 |
Acquired deferred tax assets | ' | ' | 2,625 |
Other assets | ' | ' | 38 |
IPR&D | ' | ' | 11,680 |
Total identifiable assets acquired | ' | ' | 15,517 |
Accounts payable and accrued expenses | ' | ' | -1,182 |
Debt assumed | ' | ' | -1,313 |
Deferred tax liability | ' | ' | -4,217 |
Total liabilities assumed | ' | ' | -6,712 |
Net identifiable assets acquired | ' | ' | 8,805 |
Goodwill | 54,258 | 51,543 | 2,715 |
Net assets acquired | ' | ' | $11,520 |
Amortized_Cost_Gross_Unrealize
Amortized Cost Gross Unrealized Holding Gain or Loss and Fair Value of Available for Sale Security by Major Security Type (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $483,633 | $383,010 |
Gross Unrealized Holding Gains | 432 | 473 |
Gross Unrealized Holding Losses | -423 | -212 |
Aggregate Fair Value | 483,642 | 383,271 |
Certificates of Deposit | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 47,008 | 48,741 |
Gross Unrealized Holding Gains | 2 | 14 |
Gross Unrealized Holding Losses | 0 | -1 |
Aggregate Fair Value | 47,010 | 48,754 |
Corporate Debt Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 341,519 | 316,709 |
Gross Unrealized Holding Gains | 313 | 402 |
Gross Unrealized Holding Losses | -423 | -211 |
Aggregate Fair Value | 341,409 | 316,900 |
Commercial Paper | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 86,154 | ' |
Gross Unrealized Holding Gains | 24 | ' |
Gross Unrealized Holding Losses | 0 | ' |
Aggregate Fair Value | 86,178 | ' |
U.S. Government Agency Securities | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 8,900 | 17,512 |
Gross Unrealized Holding Gains | 1 | 5 |
Gross Unrealized Holding Losses | 0 | 0 |
Aggregate Fair Value | 8,901 | 17,517 |
Greek Government-Issued Bonds | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 52 | 48 |
Gross Unrealized Holding Gains | 92 | 52 |
Gross Unrealized Holding Losses | 0 | 0 |
Aggregate Fair Value | $144 | $100 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Fair value of marketable equity securities | $13 | $2.90 |
Marketable equity securities, unrealized gain (loss) | $10.10 | $0.10 |
Fair_Values_of_AvailableForSal
Fair Values of Available-For-Sale Securities by Contractual Maturity (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Maturing in one year or less | $215,942 | $267,278 |
Maturing after one year through three years | 267,700 | 115,993 |
Total | $483,642 | $383,271 |
Changes_in_Goodwill_Detail
Changes in Goodwill (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Goodwill [Line Items] | ' |
Balance at December 31, 2012 | $51,543 |
Addition of goodwill related to the acquisition of Zacharon | 2,715 |
Balance at December 31, 2013 | $54,258 |
Intangible_Assets_Detail
Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Intangible assets: | ' | ' |
Finite-lived intangible assets | $118,242 | $118,242 |
Indefinite-lived intangible assets | 74,430 | 63,689 |
Gross intangible assets: | 192,672 | 181,931 |
Less: Accumulated amortization | -29,525 | -18,951 |
Net carrying value | $163,147 | $162,980 |
Schedule_of_Amortization_of_Fi
Schedule of Amortization of Finite Lived Intangible Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Naglazyme Intellectual Property | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net Balance at December 31, 2013 | $66,938 | ' | ' |
Estimated Useful Life (in years) | '12 years | ' | ' |
Remaining Life (in years) | '9 years 10 months 24 days | ' | ' |
Annual Amortization | 6,750 | 6,800 | 500 |
European Union Marketing Rights For Firdapse | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net Balance at December 31, 2013 | 20,141 | ' | ' |
Estimated Useful Life (in years) | '10 years | ' | ' |
Remaining Life (in years) | '6 years 2 months 12 days | ' | ' |
Annual Amortization | 3,223 | ' | ' |
License Payment For Kuvan Fda Approval | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net Balance at December 31, 2013 | 316 | ' | ' |
Estimated Useful Life (in years) | '7 years | ' | ' |
Remaining Life (in years) | '1 year | ' | ' |
Annual Amortization | 332 | ' | ' |
License Payment For Kuvan Emea Approval | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net Balance at December 31, 2013 | 1,322 | ' | ' |
Estimated Useful Life (in years) | '10 years | ' | ' |
Remaining Life (in years) | '4 years 10 months 24 days | ' | ' |
Annual Amortization | 269 | ' | ' |
Total | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Net Balance at December 31, 2013 | 88,717 | ' | ' |
Annual Amortization | $10,574 | ' | ' |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2011 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' |
Intangible assets license payments | $81,000 | ' | $0 | $0 | $81,000 |
Impairment charge | ' | 6,700 | 939 | 6,707 | 0 |
Naglazyme Intellectual Property | ' | ' | ' | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' |
Intangible assets recognized amortization expense | ' | ' | $6,750 | $6,800 | $500 |
Sales Revenue, Net | Naglazyme Intellectual Property | ' | ' | ' | ' | ' |
Intangible Assets by Major Class [Line Items] | ' | ' | ' | ' | ' |
Sales revenue, goods, net, percentage | ' | ' | 5.00% | ' | ' |
Schedule_of_Indefinite_Lived_I
Schedule of Indefinite Lived Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Net carrying value | $74,430 | $63,689 |
In Process Research And Development | BMN-673 acquired through LEAD | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Net carrying value | 35,150 | 36,089 |
In Process Research And Development | BMN-701 Acquired Through Zystor | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Net carrying value | 25,010 | 25,010 |
In Process Research And Development | SENSI-Pro assay acquired through Zacharon | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Net carrying value | 11,680 | 0 |
In Process Research And Development | Other Acquired Pre-Clinical Compounds | ' | ' |
Indefinite-lived Intangible Assets [Line Items] | ' | ' |
Net carrying value | $2,590 | $2,590 |
Property_Plant_and_Equipment_D
Property Plant and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Leasehold improvements | $73,973 | $65,918 |
Building and improvements | 159,125 | 144,700 |
Manufacturing and laboratory equipment | 95,126 | 79,915 |
Computer hardware and software | 74,948 | 56,011 |
Furniture and equipment | 12,367 | 11,143 |
Land | 11,608 | 11,608 |
Construction-in-progress | 77,212 | 64,300 |
Property, Plant and Equipment, Gross, Total | 504,359 | 433,595 |
Less: Accumulated depreciation | -185,043 | -149,122 |
Total property, plant and equipment, net | $319,316 | $284,473 |
Property_Plant_and_Equipment_A
Property Plant and Equipment - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Dec. 17, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Depreciation expense | ' | $36,500,000 | $34,900,000 | $31,900,000 |
Depreciation expense capitalized into inventory | ' | 11,016,000 | 7,335,000 | 6,576,000 |
Property, plant and equipment | ' | 319,316,000 | 284,473,000 | ' |
Lease percentage of complex occupied | 40.00% | ' | ' | ' |
Purchase price of SRCC | 116,500,000 | ' | ' | ' |
Escrow deposit related to pending transaction | ' | 116,500,000 | 0 | ' |
Shanbally, Cork, Ireland | ' | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Property, plant and equipment | ' | $59,100,000 | $53,500,000 | ' |
Schedule_of_Inventory_Detail
Schedule of Inventory (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Raw materials | $15,309 | $11,943 |
Work-in-process | 88,417 | 71,443 |
Finished goods | 58,879 | 45,309 |
Total inventory | $162,605 | $128,695 |
Inventory_Additional_Informati
Inventory - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Inventory | $162,605 | $128,695 |
Pending Regulatory Approvals | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | 300 | 12,000 |
Pending Regulatory Approvals | Approval of VIMIZIM In US or EU | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | $40,500 | $0 |
Schedule_of_Other_Assets_Detai
Schedule of Other Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Deposits | $7,196 | $6,844 |
Restricted investments | 412 | 3,493 |
Escrow balance for SRCC purchase | 116,500 | 0 |
Deferred offering costs | 15,374 | 3,675 |
Strategic investment | 13,000 | 2,933 |
Other | 3,689 | 2,599 |
Total other assets | $156,171 | $19,544 |
Schedule_of_Accounts_Payable_a
Schedule of Accounts Payable and Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Accounts payable | $36,894 | $23,993 |
Accrued accounts payable | 58,408 | 43,156 |
Accrued vacation expense | 10,487 | 8,403 |
Accrued compensation expense | 33,496 | 27,530 |
Accrued royalties payable | 5,829 | 4,991 |
Accrued rebates payable | 10,429 | 9,625 |
Other accrued operating expenses | 4,875 | 6,179 |
Current portion of nonqualified deferred compensation liability | 1,363 | 6,440 |
Value added taxes payable | 3,603 | 2,072 |
Current portion of contingent acquisition consideration payable | 11,882 | 10,764 |
Other | 6,005 | 3,915 |
Total accounts payable and accrued liabilities | $183,271 | $147,068 |
Schedule_of_Estimated_Accrued_
Schedule of Estimated Accrued Rebates Reserve for Cash Discounts and Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accrued Rebates | ' | ' | ' |
Supplemental Balance Sheet Information [Line Items] | ' | ' | ' |
Balance at Beginning of Period | $9,625 | $6,025 | $5,899 |
Provision for Current Period Sales | 18,872 | 16,449 | 14,369 |
Provision/(Reversals) for Prior Period Sales | -1,169 | -434 | -639 |
Actual Charges Related to Current Period Sales | -12,025 | -8,193 | -10,042 |
Actual Charges Related to Prior Period Sales | -4,874 | -4,222 | -3,562 |
Balance at End of Period | 10,429 | 9,625 | 6,025 |
Reserve for Cash Discount | ' | ' | ' |
Supplemental Balance Sheet Information [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 372 | 342 | 304 |
Provision for Current Period Sales | 4,549 | 4,214 | 3,543 |
Provision/(Reversals) for Prior Period Sales | 0 | 0 | 0 |
Actual Charges Related to Current Period Sales | -4,191 | -4,184 | -3,209 |
Actual Charges Related to Prior Period Sales | -342 | 0 | -296 |
Balance at End of Period | 388 | 372 | 342 |
Sales Return Reserve | ' | ' | ' |
Supplemental Balance Sheet Information [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 0 | ' | ' |
Provision for Current Period Sales | 907 | ' | ' |
Provision/(Reversals) for Prior Period Sales | 0 | ' | ' |
Actual Charges Related to Current Period Sales | 0 | ' | ' |
Actual Charges Related to Prior Period Sales | 0 | ' | ' |
Balance at End of Period | 907 | ' | ' |
Allowance for Doubtful Accounts | ' | ' | ' |
Supplemental Balance Sheet Information [Line Items] | ' | ' | ' |
Balance at Beginning of Period | 348 | 513 | 64 |
Provision for Current Period Sales | 138 | 0 | 0 |
Provision/(Reversals) for Prior Period Sales | 43 | -165 | 1,053 |
Actual Charges Related to Current Period Sales | 0 | 0 | 0 |
Actual Charges Related to Prior Period Sales | 0 | 0 | -604 |
Balance at End of Period | $529 | $348 | $513 |
Recovered_Sheet4
Derivative Instruments and Hedging Strategies - Additional Information (Detail) | 12 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | USD ($) | USD ($) | Minimum | Maximum | Forecasted foreign currency cash flows | Forecasted foreign currency cash flows | Derivatives Designated As Hedging Instruments | Derivatives Designated As Hedging Instruments | Derivatives Not Designated As Hedging Instruments | Derivatives Not Designated As Hedging Instruments | |
USD ($) | Maximum | Foreign Currency Derivatives | Euro | Foreign Currency Derivatives | |||||||
Sale Contracts | Sale Contracts | ||||||||||
EUR (€) | EUR (€) | ||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of forward foreign currency exchange contracts outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 34 | ' | ' |
Outstanding forward foreign currency exchange contracts | ' | ' | ' | ' | ' | ' | ' | € 41,800,000 | ' | ' | € 36,700,000 |
Maturity period of foreign currency derivatives | ' | ' | ' | 1-Jan-14 | 31-Dec-14 | ' | 31-Dec-14 | ' | ' | 31-Jan-14 | ' |
Amount reclassified from accumulated other comprehensive income to earnings as related to forecasted revenue transactions | 49,000 | -3,683,000 | 2,989,000 | ' | ' | 2,400,000 | ' | ' | ' | ' | ' |
Maximum length of time over which hedging its exposure to the reduction in value of forecasted foreign currency cash flows through foreign currency forward contracts | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' |
Gain (Loss) from foreign currency exchange contracts in accumulated other comprehensive income | ($2,400,000) | $200,000 | ($8,000,000) | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet5
Derivative Instruments and Hedging Strategies (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives Designated As Hedging Instruments | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Asset, Fair Value | $0 | $1,463 |
Derivative Liability, Fair Value | 2,186 | 1,446 |
Derivatives Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Accounts Payable and Accrued Liabilities | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liability, Fair Value | 2,186 | 1,078 |
Derivatives Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Other Long-Term Liabilities | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liability, Fair Value | 0 | 368 |
Derivatives Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Other Current Assets | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Asset, Fair Value | 0 | 1,463 |
Derivatives Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Other Assets | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Asset, Fair Value | 0 | 0 |
Derivatives Not Designated As Hedging Instruments | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Asset, Fair Value | 59 | 1,547 |
Derivative Liability, Fair Value | 2,186 | 1,446 |
Derivatives Not Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Asset, Fair Value | 59 | 84 |
Derivative Liability, Fair Value | 0 | 0 |
Derivatives Not Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Accounts Payable and Accrued Liabilities | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Liability, Fair Value | 0 | 0 |
Derivatives Not Designated As Hedging Instruments | Forward Foreign Currency Exchange Contracts | Other Current Assets | ' | ' |
Derivative [Line Items] | ' | ' |
Derivative Asset, Fair Value | $59 | $84 |
Effect_of_Derivative_Instrumen
Effect of Derivative Instruments (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Net gain (loss) recognized in Other Comprehensive Income (OCI) | ($2,400) | $200 | ($8,000) | |||
Forward Foreign Currency Exchange Contracts | Derivatives Designated As Hedging Instruments | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Net gain (loss) recognized in Other Comprehensive Income (OCI) | -1,366 | [1] | -8,749 | [1] | 8,163 | [1] |
Net gain (loss) reclassified from accumulated OCI into income | 49 | [2] | -3,683 | [2] | 2,989 | [2] |
Net gain (loss) recognized in income | 310 | [3] | 927 | [3] | -1,486 | [3] |
Forward Foreign Currency Exchange Contracts | Derivatives Not Designated As Hedging Instruments | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Net gain (loss) recognized in income | ($2,041) | [4] | $674 | [4] | $674 | [4] |
[1] | Net change in the fair value of the effective portion classified as OCI. | |||||
[2] | Effective portion classified as net product revenue. | |||||
[3] | Ineffective portion and amount excluded from effectiveness testing classified as selling, general and administrative expense. | |||||
[4] | Classified as selling, general and administrative expense. |
Fair_Value_of_Financial_Assets
Fair Value of Financial Assets and Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | $568,781 | $180,527 | ||
Fair value of Available-for-sale securities | 483,642 | 383,271 | ||
Total other current assets | ' | 5,842 | ||
Total other assets | ' | 8,800 | ||
Nonqualified Deferred Compensation Plan liability | 1,363 | 6,440 | ||
Fair value of financial assets, Total | 1,075,159 | 578,440 | ||
Contingent acquisition consideration payable | 11,882 | 10,764 | ||
Total current liabilities | 15,431 | 19,967 | ||
Total other long-term liabilities | 50,716 | 42,646 | ||
Fair value of financial liabilities, Total | 66,147 | 62,613 | ||
U.S. Government Agency Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 8,901 | 17,517 | ||
Commercial Paper | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 86,178 | ' | ||
Overnight Deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 156,228 | 54,018 | ||
Money Market Instruments | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 412,553 | 126,509 | ||
Available-For-Sale Securities Short-Term | Corporate Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 99,251 | 222,147 | ||
Available-For-Sale Securities Short-Term | U.S. Government Agency Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | ' | 8,516 | ||
Available-For-Sale Securities Short-Term | Commercial Paper | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 86,178 | ' | ||
Available-For-Sale Securities Short-Term | Certificates of Deposit | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 30,513 | 36,615 | ||
Available-For-Sale Securities Long-Term | Corporate Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 242,158 | 94,753 | ||
Available-For-Sale Securities Long-Term | U.S. Government Agency Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 8,901 | 9,001 | ||
Available-For-Sale Securities Long-Term | Greek Government-Issued Bonds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 144 | 100 | ||
Available-For-Sale Securities Long-Term | Certificates of Deposit | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 16,497 | 12,139 | ||
Other Current Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Restricted investments | 5,670 | [1] | 2,243 | [1] |
Total other current assets | 5,865 | ' | ||
Other Current Assets | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan assets | 136 | 2,052 | ||
Other Current Assets | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract asset | 59 | [2] | 1,547 | [2] |
Other Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Restricted investments | 412 | [1] | 3,492 | [1] |
Strategic investment | 13,000 | [3] | 2,933 | [3] |
Total other assets | 16,871 | ' | ||
Other Assets | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan assets | 3,459 | 2,375 | ||
Current Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contingent acquisition consideration payable | 11,882 | 10,764 | ||
Asset retirement obligation | ' | 1,685 | ||
Current Liabilities | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan liability | 1,363 | 6,440 | ||
Current Liabilities | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract liability | 2,186 | [2] | 1,078 | [2] |
Other Long-Term Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contingent acquisition consideration payable | 30,790 | 30,618 | ||
Asset retirement obligation | 4,122 | 2,192 | ||
Other Long-Term Liabilities | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan liability | 15,804 | 9,468 | ||
Other Long-Term Liabilities | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract liability | ' | 368 | [2] | |
Quoted Price In Active Markets For Identical Assets (Level 1) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 156,228 | 54,018 | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Total other current assets | ' | 0 | ||
Total other assets | ' | 2,933 | ||
Fair value of financial assets, Total | 169,228 | 56,951 | ||
Total current liabilities | 1,227 | 6,440 | ||
Total other long-term liabilities | 12,345 | 5,041 | ||
Fair value of financial liabilities, Total | 13,572 | 11,481 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Overnight Deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 156,228 | 54,018 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Money Market Instruments | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 0 | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Available-For-Sale Securities Short-Term | Corporate Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Available-For-Sale Securities Short-Term | U.S. Government Agency Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | ' | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Available-For-Sale Securities Short-Term | Commercial Paper | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | ' | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Available-For-Sale Securities Short-Term | Certificates of Deposit | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Available-For-Sale Securities Long-Term | Corporate Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Available-For-Sale Securities Long-Term | U.S. Government Agency Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Available-For-Sale Securities Long-Term | Greek Government-Issued Bonds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Available-For-Sale Securities Long-Term | Certificates of Deposit | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Other Current Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Restricted investments | 0 | [1] | 0 | [1] |
Total other current assets | 0 | ' | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Other Current Assets | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan assets | 0 | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Other Current Assets | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract asset | 0 | [2] | 0 | [2] |
Quoted Price In Active Markets For Identical Assets (Level 1) | Other Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Restricted investments | 0 | [1] | 0 | [1] |
Strategic investment | 13,000 | [3] | 2,933 | [3] |
Total other assets | 13,000 | ' | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Other Assets | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan assets | 0 | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Current Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contingent acquisition consideration payable | 0 | 0 | ||
Asset retirement obligation | ' | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Current Liabilities | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan liability | 1,227 | 6,440 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Current Liabilities | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract liability | 0 | [2] | 0 | [2] |
Quoted Price In Active Markets For Identical Assets (Level 1) | Other Long-Term Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contingent acquisition consideration payable | 0 | 0 | ||
Asset retirement obligation | 0 | 0 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Other Long-Term Liabilities | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan liability | 12,345 | 5,041 | ||
Quoted Price In Active Markets For Identical Assets (Level 1) | Other Long-Term Liabilities | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract liability | ' | 0 | [2] | |
Significant Other Observable Inputs (Level 2) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 412,553 | 126,509 | ||
Fair value of Available-for-sale securities | 483,642 | 383,271 | ||
Total other current assets | ' | 5,842 | ||
Total other assets | ' | 5,867 | ||
Fair value of financial assets, Total | 905,931 | 521,489 | ||
Total current liabilities | 2,322 | 1,078 | ||
Total other long-term liabilities | 3,459 | 4,795 | ||
Fair value of financial liabilities, Total | 5,781 | 5,873 | ||
Significant Other Observable Inputs (Level 2) | Overnight Deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | Money Market Instruments | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 412,553 | 126,509 | ||
Significant Other Observable Inputs (Level 2) | Available-For-Sale Securities Short-Term | Corporate Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 99,251 | 222,147 | ||
Significant Other Observable Inputs (Level 2) | Available-For-Sale Securities Short-Term | U.S. Government Agency Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | ' | 8,516 | ||
Significant Other Observable Inputs (Level 2) | Available-For-Sale Securities Short-Term | Commercial Paper | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 86,178 | ' | ||
Significant Other Observable Inputs (Level 2) | Available-For-Sale Securities Short-Term | Certificates of Deposit | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 30,513 | 36,615 | ||
Significant Other Observable Inputs (Level 2) | Available-For-Sale Securities Long-Term | Corporate Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 242,158 | 94,753 | ||
Significant Other Observable Inputs (Level 2) | Available-For-Sale Securities Long-Term | U.S. Government Agency Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 8,901 | 9,001 | ||
Significant Other Observable Inputs (Level 2) | Available-For-Sale Securities Long-Term | Greek Government-Issued Bonds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 144 | 100 | ||
Significant Other Observable Inputs (Level 2) | Available-For-Sale Securities Long-Term | Certificates of Deposit | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 16,497 | 12,139 | ||
Significant Other Observable Inputs (Level 2) | Other Current Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Restricted investments | 5,670 | [1] | 2,243 | [1] |
Total other current assets | 5,865 | ' | ||
Significant Other Observable Inputs (Level 2) | Other Current Assets | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan assets | 136 | 2,052 | ||
Significant Other Observable Inputs (Level 2) | Other Current Assets | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract asset | 59 | [2] | 1,547 | [2] |
Significant Other Observable Inputs (Level 2) | Other Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Restricted investments | 412 | [1] | 3,492 | [1] |
Strategic investment | 0 | [3] | 0 | [3] |
Total other assets | 3,871 | ' | ||
Significant Other Observable Inputs (Level 2) | Other Assets | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan assets | 3,459 | 2,375 | ||
Significant Other Observable Inputs (Level 2) | Current Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contingent acquisition consideration payable | 0 | 0 | ||
Asset retirement obligation | ' | 0 | ||
Significant Other Observable Inputs (Level 2) | Current Liabilities | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan liability | 136 | 0 | ||
Significant Other Observable Inputs (Level 2) | Current Liabilities | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract liability | 2,186 | [2] | 1,078 | [2] |
Significant Other Observable Inputs (Level 2) | Other Long-Term Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contingent acquisition consideration payable | 0 | 0 | ||
Asset retirement obligation | 0 | 0 | ||
Significant Other Observable Inputs (Level 2) | Other Long-Term Liabilities | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan liability | 3,459 | 4,427 | ||
Significant Other Observable Inputs (Level 2) | Other Long-Term Liabilities | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract liability | ' | 368 | [2] | |
Significant Unobservable Inputs (Level 3) | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 0 | 0 | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Total other current assets | ' | 0 | ||
Total other assets | ' | 0 | ||
Fair value of financial assets, Total | 0 | 0 | ||
Total current liabilities | 11,882 | 12,449 | ||
Total other long-term liabilities | 34,912 | 32,810 | ||
Fair value of financial liabilities, Total | 46,794 | 45,259 | ||
Significant Unobservable Inputs (Level 3) | Overnight Deposits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Money Market Instruments | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Cash and cash equivalents | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Available-For-Sale Securities Short-Term | Corporate Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Available-For-Sale Securities Short-Term | U.S. Government Agency Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | ' | 0 | ||
Significant Unobservable Inputs (Level 3) | Available-For-Sale Securities Short-Term | Commercial Paper | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | ' | ||
Significant Unobservable Inputs (Level 3) | Available-For-Sale Securities Short-Term | Certificates of Deposit | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Available-For-Sale Securities Long-Term | Corporate Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Available-For-Sale Securities Long-Term | U.S. Government Agency Securities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Available-For-Sale Securities Long-Term | Greek Government-Issued Bonds | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Available-For-Sale Securities Long-Term | Certificates of Deposit | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Fair value of Available-for-sale securities | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Other Current Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Restricted investments | 0 | [1] | 0 | [1] |
Total other current assets | 0 | ' | ||
Significant Unobservable Inputs (Level 3) | Other Current Assets | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan assets | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Other Current Assets | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract asset | 0 | [2] | 0 | [2] |
Significant Unobservable Inputs (Level 3) | Other Assets | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Restricted investments | 0 | [1] | 0 | [1] |
Strategic investment | 0 | [3] | 0 | [3] |
Total other assets | 0 | ' | ||
Significant Unobservable Inputs (Level 3) | Other Assets | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan assets | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Current Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contingent acquisition consideration payable | 11,882 | 10,764 | ||
Asset retirement obligation | ' | 1,685 | ||
Significant Unobservable Inputs (Level 3) | Current Liabilities | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan liability | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Current Liabilities | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract liability | 0 | [2] | 0 | [2] |
Significant Unobservable Inputs (Level 3) | Other Long-Term Liabilities | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Contingent acquisition consideration payable | 30,790 | 30,618 | ||
Asset retirement obligation | 4,122 | 2,192 | ||
Significant Unobservable Inputs (Level 3) | Other Long-Term Liabilities | Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Nonqualified Deferred Compensation Plan liability | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Other Long-Term Liabilities | Foreign Exchange Forward | ' | ' | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ||
Forward foreign currency exchange contract liability | ' | $0 | [2] | |
[1] | The restricted investments secure the Company's irrevocable standby letter of credit obtained in connection with the Company's new corporate facility lease agreements and certain commercial agreements. | |||
[2] | See Note 14 to these Consolidated Financial Statements for further information regarding the derivative instruments. | |||
[3] | The Company has an investment in marketable equity securities measured using quoted prices in an active market that is considered a strategic investment. See Note 6 to these Consolidated Financial Statements for additional discussion regarding the Company's strategic investment. |
Liabilities_Measured_at_Fair_V
Liabilities Measured at Fair Value Using Level 3 Inputs (Detail) (Contingent Payment, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Contingent Payment | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' |
Contingent acquisition consideration payable at December 31, 2012 | $41,382 |
Changes in the fair value of the contingent acquisition consideration payable | 14,453 |
Addition of contingent consideration payable related to the Zacharon acquisition | 1,857 |
Milestone payments to former LEAD shareholders | -15,020 |
Contingent acquisition consideration payable at December 31, 2013 | $42,672 |
Asset_Retirement_Obligation_Li
Asset Retirement Obligation Liability and Corresponding Capital Asset (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Asset Retirement Obligations [Line Items] | ' |
Asset retirement obligation, Beginning balance | $3,877 |
Accretion | 155 |
Accruals added for new leases | 90 |
Asset retirement obligations, Ending balance | $4,122 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 8-May-12 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Board of Directors Chairman | Outside director | Director | Employee Stock Purchase Plan | Unvested restricted stock units | Board Of Director Grants | 2012 Inducement Plan | 2012 Inducement Plan | Share Incentive Plan | Share Incentive Plan | Share Incentive Plan | Share Incentive Plan | Share Incentive Plan | Previous Stock Option Plans | |||
Y | Maximum | Stock Option | Restricted Stock With Service Based Vesting Conditions | Restricted Stock With Service Based Vesting Conditions | ||||||||||||
M | Board of Directors Chairman | |||||||||||||||
Stockholders Equity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share based awards, authorized | 23,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | 750,000 | 21,500,000 | 700,000 | ' | ' | ' | ' |
Vesting period, years | '1 year | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | '4 years | '4 years | '1 year | ' |
Initial time period vesting requirements, months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' |
Options vesting term, years | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | '10 years | ' | ' | ' |
Options outstanding | 13,157,283 | 13,865,151 | ' | ' | ' | ' | ' | ' | 400,000 | ' | 12,300,000 | ' | ' | ' | ' | 500,000 |
Percentage of fair market value of the stock purchased | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Span of offering period, in years | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum percentage of qualified compensation to be used for purchase | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum payroll deductions | ' | ' | ' | ' | ' | $25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued under the Employee Stock Purchase Plan | ' | ' | ' | ' | ' | 253,710 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares reserved for future issuance | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options granted | 2,555,122 | ' | 30,000,000 | 30,000,000 | 15,000,000 | ' | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | |
Shares, Options outstanding as of December 31, 2012 | 13,865,151 | |
Shares, Granted | 2,555,122 | |
Shares, Exercised | -2,885,052 | |
Shares, Expired and forfeited | -377,938 | |
Shares, Options outstanding as of December 31, 2013 | 13,157,283 | |
Shares, Options expected to vest at December 31, 2013 | 4,156,902 | |
Shares, Exercisable at December 31, 2013 | 8,394,774 | |
Weighted Average Exercise Price, Outstanding beginning of year | $25.69 | |
Weighted Average Exercise Price, Granted | $66.75 | |
Weighted Average Exercise Price, Exercised | $22.73 | |
Weighted Average Exercise Price, Expired and forfeited | $34.43 | |
Weighted Average Exercise Price, Outstanding end of year | $34.06 | |
Weighted Average Exercise Price, Options expected to vest | $47.23 | |
Weighted Average Exercise Price, Exercisable end of year | $26.33 | |
Options outstanding as of December 31, 2013 | '6 years 8 months 12 days | |
Weighted Average Remaining Years, Exercisable at December 31, 2013 | '5 years 8 months 12 days | |
Options outstanding as of December 31, 2013 | $477,618 | [1] |
Aggregate Intrinsic Value, Options expected to vest at December 31, 2013 | 96,260 | [1] |
Aggregate Intrinsic Value, Exercisable at December 31, 2013 | $369,564 | [1] |
[1] | The aggregate intrinsic value for outstanding options is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's common stock as of the last trading day of fiscal 2013. The aggregate intrinsic value of options outstanding and exercisable includes options with an exercise price below $70.35, the closing price of the Company's common stock on December 31, 2013. |
Summary_of_Stock_Option_Activi1
Summary of Stock Option Activity (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Closing price of common stock | $70.35 |
Stock_Based_Compensation_Addit
Stock Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted-average fair value per option granted | $30.77 | $37.70 | $27.89 |
Total intrinsic value of options exercised | $119,200,000 | $94,600,000 | $25,100,000 |
Options in-the-money | 13,100,000 | ' | ' |
Recognized compensation costs | 64,376,000 | 47,972,000 | 43,819,000 |
Unissued shares authorized for future issuance | 23,200,000 | ' | ' |
Stock-based compensation capitalized to inventory | 6,100,000 | 4,300,000 | 5,300,000 |
Stock Option | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Recognized compensation costs | 37,000,000 | 32,800,000 | 31,700,000 |
Unrecognized compensation cost related to unvested awards | 102,100,000 | ' | ' |
Unrecognized compensation cost expected to recognized over weighted average period, in years | '2 years 9 months 18 days | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Recognized compensation costs | 3,600,000 | 2,900,000 | 2,400,000 |
Unrecognized compensation cost related to unvested awards | 5,000,000 | ' | ' |
Unrecognized compensation cost expected to recognized over weighted average period, in years | '1 year 6 months | ' | ' |
Restricted Stock With Service Based Vesting Conditions | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Recognized compensation costs | 13,000,000 | 7,300,000 | 4,500,000 |
Unrecognized compensation cost related to unvested awards | 46,600,000 | ' | ' |
Unrecognized compensation cost expected to recognized over weighted average period, in years | '3 years | ' | ' |
Weighted-average grant date fair value per share of restricted stock units, Grants in period | $66.81 | $37.81 | $27.47 |
The total fair value of restricted stock vested and released | 19,700,000 | 7,700,000 | 4,200,000 |
Granted restricted stock units | 1,133,835 | 898,949 | ' |
Restricted Stock With Performance and Market Based Vesting Conditions | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Recognized compensation costs | 6,500,000 | ' | ' |
Unrecognized compensation cost related to unvested awards | $6,300,000 | ' | ' |
Unrecognized compensation cost expected to recognized over weighted average period, in years | '2 years 2 months 12 days | ' | ' |
Weighted-average grant date fair value per share of restricted stock units, Grants in period | ' | ' | ' |
Granted restricted stock units | 860,000 | 875,000 | ' |
TSR calculation period, days | 20 | ' | ' |
Unissued shares authorized for future issuance | 1,075,000 | ' | ' |
Restricted Stock With Performance and Market Based Vesting Conditions | Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total shareholder return, percentage of multiplier range | 75.00% | ' | ' |
Restricted Stock With Performance and Market Based Vesting Conditions | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total shareholder return, percentage of multiplier range | 125.00% | ' | ' |
Assumptions_Used_to_Estimate_P
Assumptions Used to Estimate Per Share Fair Value of Stock Options Granted (Detail) (Stock Option) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected life | ' | '6 years 6 months | ' |
Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | 44.00% | 45.00% | 46.00% |
Expected life | '6 years 7 months 6 days | ' | '6 years 3 months 18 days |
Risk-free interest rate | 1.00% | 0.80% | 1.20% |
Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | 47.00% | 46.00% | 50.00% |
Expected life | '6 years 9 months 18 days | ' | '6 years 4 months 24 days |
Risk-free interest rate | 2.40% | 1.10% | 2.70% |
Assumptions_Used_to_Estimate_P1
Assumptions Used to Estimate Per Share Fair Value of Stock Purchase Rights Granted (Detail) (Employee Stock Purchase Plan) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | 37.00% | 31.00% | ' |
Dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | ' | ' | 32.00% |
Expected life | '6 months | '6 months | '6 months |
Risk-free interest rate | 0.10% | 0.20% | 0.10% |
Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Expected volatility | ' | ' | 48.00% |
Expected life | '24 months | '24 months | '24 months |
Risk-free interest rate | 0.30% | 0.30% | 0.60% |
Summary_of_NonVested_Restricte
Summary of Non-Vested Restricted Stock Unit Activity (Detail) (Restricted Stock With Service Based Vesting Conditions, USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restricted Stock With Service Based Vesting Conditions | ' | ' | ' |
Schedule of Share based Compensation Arrangements by Share based Payment Award, Equity Instruments, Other Than Options, Restricted Stock Units [Line Items] | ' | ' | ' |
Shares, Non-vested units as of December 31, 2011 | 898,949 | ' | ' |
Shares, Granted | 592,001 | ' | ' |
Shares, Vested | -300,968 | ' | ' |
Shares, Forfeited | -56,147 | ' | ' |
Shares, Non-vested units as of December 31, 2013 | 1,133,835 | 898,949 | ' |
Shares, Non-vested units expected to vest at December 31, 2013 | 1,039,520 | ' | ' |
Weighted Average Grant Date Fair Value, Non-vested units as of December 31, 2012 | $33.10 | ' | ' |
Weighted Average Grant Date Fair Value, Granted | $66.81 | $37.81 | $27.47 |
Weighted Average Grant Date Fair Value, Vested | $30.69 | ' | ' |
Weighted Average Grant Date Fair Value, Forfeited | $40.80 | ' | ' |
Weighted Average Grant Date Fair Value, Non-vested units as of December 31, 2013 | $50.97 | $33.10 | ' |
Weighted Average Grant Date Fair Value, Non-vested units expected to vest at December 31, 2013 | $50.62 | ' | ' |
Weighted Average Remaining Years, Non-vested units as of December 31, 2013 | '8 years 8 months 12 days | ' | ' |
Aggregate Intrinsic Value, Non-vested units as of December 31, 2013 | $79,765 | ' | ' |
Aggregate Intrinsic Value, Non-vested units expected to vest at December 31, 2013 | $73,130 | ' | ' |
Non_Vested_Base_Restricted_Sto
Non Vested Base Restricted Stock Unit Activity Under Plans (Detail) (Restricted Stock With Performance and Market Based Vesting Conditions, USD $) | 12 Months Ended |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 |
Restricted Stock With Performance and Market Based Vesting Conditions | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares, Non-vested units as of December 31, 2011 | 875,000 |
Shares, Granted | 0 |
Shares, Vested | 0 |
Shares, Forfeited | -15,000 |
Shares, Non-vested units as of December 31, 2013 | 860,000 |
Weighted Average Grant Date Fair Value, Non-vested units as of December 31, 2012 | $33.83 |
Weighted Average Grant Date Fair Value, Granted | ' |
Weighted Average Grant Date Fair Value, Vested | ' |
Weighted Average Grant Date Fair Value, Forfeited | $32.61 |
Weighted Average Grant Date Fair Value, Non-vested units as of December 31, 2013 | $34.66 |
Weighted Average Remaining Years, Non-vested units as of December 31, 2012 | '2 years 2 months 12 days |
Aggregate Intrinsic Value, Non-vested units with performance and market vesting conditions as of December 31, 2013 | $60,501 |
Multiple_Performance_Condition
Multiple Performance Conditions for Vesting Of Base RSUs (Detail) (Restricted Stock With Performance and Market Based Vesting Conditions) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Product Goals | Product Goals | Financial Goal | |||
Approval of VIMIZIM In US or EU | Approval of Peg Pal or Any Other Non VIMIZIM Product In US Or EU | Total Revenue | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Percentage of Base RSUs to Vest Upon Achievement of Goal | ' | ' | 35.00% | 25.00% | 40.00% |
Base Number of RSUs Granted Before TSR Multiplier | ' | ' | 301,000 | 215,000 | 344,000 |
Restricted stock units, outstanding | 860,000 | 875,000 | ' | ' | ' |
Multiple_Performance_Condition1
Multiple Performance Conditions for Vesting Of Base RSUs (Parenthetical) (Detail) (Restricted Stock With Performance and Market Based Vesting Conditions, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Approval of VIMIZIM In US or EU | Product Goals | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Approval of product in the U.S. or EU, date | 31-Dec-15 |
Approval of Peg Pal or Any Other Non VIMIZIM Product In US Or EU | Product Goals | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Approval of product in the U.S. or EU, date | 31-Dec-15 |
Total Revenue | Financial Goal | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Total revenues expected, period | '2015 |
Total revenues expected | 775 |
Assumptions_Used_to_Estimate_F
Assumptions Used to Estimate Fair Value of Award with Performance and Market Vesting Conditions (Detail) (USD $) | Dec. 31, 2013 | Sep. 05, 2012 | 29-May-12 | Jun. 01, 2011 |
Restricted Stock With Performance and Market Based Vesting Conditions | Restricted Stock With Performance and Market Based Vesting Conditions | Restricted Stock With Performance and Market Based Vesting Conditions | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Fair value of the Company's common stock on grant date | $70.35 | $37.45 | $39.06 | $28.11 |
Expected volatility | ' | 31.73% | 44.87% | 47.95% |
Risk-free interest rate | ' | 0.37% | 0.52% | 1.42% |
Dividend yield | ' | 0.00% | 0.00% | 0.00% |
Compensation_Expense_Detail
Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $64,376 | $47,972 | $43,819 |
Cost of Sales | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 4,860 | 4,890 | 5,171 |
Research and Development | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expense | 27,763 | 20,736 | 16,365 |
Selling, General And Administrative | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Total stock-based compensation expense | $31,753 | $22,346 | $22,283 |
Amounts_Reclassified_out_of_Ac
Amounts Reclassified out of Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Net product revenues | $538,360 | $496,497 | $437,647 |
Selling, general and administrative | -235,356 | -198,173 | -175,423 |
Income tax expense | 150 | 3,931 | -10,209 |
NET LOSS | -176,353 | -114,347 | -53,836 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | Foreign Exchange Forward | Reclassification out of Accumulated Other Comprehensive Income | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Net product revenues | -37 | ' | ' |
Selling, general and administrative | -40 | ' | ' |
Income tax expense | 28 | ' | ' |
NET LOSS | ($49) | ' | ' |
Summary_of_Changes_in_Accumula
Summary of Changes in Accumulated Balances of Other Comprehensive Income Loss Including Current Period Other Comprehensive Income and Reclassifications (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | ($202) | ' | ' |
Other comprehensive income (loss) before reclassifications | 5,270 | ' | ' |
Less amounts reclassified from AOCI | 50 | ' | ' |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 5,220 | -5,089 | 4,699 |
Ending Balance | 5,018 | -202 | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -97 | ' | ' |
Other comprehensive income (loss) before reclassifications | -1,366 | ' | ' |
Less amounts reclassified from AOCI | 49 | ' | ' |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | -1,415 | ' | ' |
Ending Balance | -1,512 | ' | ' |
Unrealized Gain/(Losses) on Available-for-sale-Securities | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | 133 | ' | ' |
Other comprehensive income (loss) before reclassifications | 6,275 | ' | ' |
Less amounts reclassified from AOCI | 1 | ' | ' |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 6,274 | ' | ' |
Ending Balance | 6,407 | ' | ' |
Foreign Currency Translation Adjustments | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' |
Beginning Balance | -238 | ' | ' |
Other comprehensive income (loss) before reclassifications | 361 | ' | ' |
Less amounts reclassified from AOCI | 0 | ' | ' |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 361 | ' | ' |
Ending Balance | $123 | ' | ' |
Consolidated_Net_Product_Reven
Consolidated Net Product Revenue Attributed to Largest Customers (Detail) (Net Product Revenues) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Geographic Concentration Risk | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 100.00% | 100.00% | 100.00% | |||
Geographic Concentration Risk | UNITED STATES | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 52.00% | 50.00% | 51.00% | |||
Geographic Concentration Risk | Europe | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 22.00% | 22.00% | 23.00% | |||
Geographic Concentration Risk | Latin America | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 13.00% | 15.00% | 13.00% | |||
Geographic Concentration Risk | Rest of World | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 13.00% | 13.00% | 13.00% | |||
Customer Concentration Risk | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 51.00% | 52.00% | 54.00% | |||
Customer Concentration Risk | Customer A | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 15.00% | 15.00% | 17.00% | |||
Customer Concentration Risk | Customer B | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 16.00% | [1] | 16.00% | [1] | 19.00% | [1] |
Customer Concentration Risk | Customer C | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 9.00% | 12.00% | 10.00% | |||
Customer Concentration Risk | Customer D | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 11.00% | 9.00% | 8.00% | |||
[1] | Genzyme is the Company's sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme are comprised of royalties on worldwide net Aldurazyme sales and incremental product transfer revenue. |
Recovered_Sheet6
Revenue and Credit Concentrations - Additional Information (Detail) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Number of customers accounted for largest balance in accounts receivable | 2 | ' | ' | |||
Accounts receivable, net | 117,822 | 109,066 | ' | |||
Southern European Countries | Net Product Revenues | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 4.00% | ' | ' | |||
Southern European Countries | Accounts Receivable | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 16.00% | ' | ' | |||
Customer Concentration Risk | Net Product Revenues | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 51.00% | 52.00% | 54.00% | |||
Customer Concentration Risk | Net Product Revenues | Customer A | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 15.00% | 15.00% | 17.00% | |||
Customer Concentration Risk | Net Product Revenues | Customer B | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 16.00% | [1] | 16.00% | [1] | 19.00% | [1] |
Customer Concentration Risk | Accounts Receivable | Customer A | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 45.00% | 51.00% | ' | |||
Accounts receivable, net | 26,300 | 32,400 | ' | |||
Customer Concentration Risk | Accounts Receivable | Customer B | ' | ' | ' | |||
Concentration Risk [Line Items] | ' | ' | ' | |||
Concentration risk, percentage | 15.00% | 13.00% | ' | |||
[1] | Genzyme is the Company's sole customer for Aldurazyme and is responsible for marketing and selling Aldurazyme to third-parties. Net product revenues from Genzyme are comprised of royalties on worldwide net Aldurazyme sales and incremental product transfer revenue. |
Schedule_of_Accounts_Receivabl
Schedule of Accounts Receivable by Country that were Past Due (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | $5,992 | ' |
Allowance for Doubtful Accounts | 529 | 348 |
ITALY | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 0 | ' |
SPAIN | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 5,640 | ' |
PORTUGAL | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 0 | ' |
GREECE | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 352 | ' |
Less Than 180 Days | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 2,031 | ' |
Less Than 180 Days | ITALY | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 0 | ' |
Less Than 180 Days | SPAIN | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 2,031 | ' |
Less Than 180 Days | PORTUGAL | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 0 | ' |
Less Than 180 Days | GREECE | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 0 | ' |
180 -360 Days | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 1,443 | ' |
180 -360 Days | ITALY | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 0 | ' |
180 -360 Days | SPAIN | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 1,443 | ' |
180 -360 Days | PORTUGAL | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 0 | ' |
180 -360 Days | GREECE | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 0 | ' |
Greater Than 360 Days | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 2,518 | ' |
Greater Than 360 Days | ITALY | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 0 | ' |
Greater Than 360 Days | SPAIN | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 2,166 | ' |
Greater Than 360 Days | PORTUGAL | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 0 | ' |
Greater Than 360 Days | GREECE | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Total Amount Past Due | 352 | ' |
Foreign Operations | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Allowance for Doubtful Accounts | 352 | ' |
Foreign Operations | ITALY | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Allowance for Doubtful Accounts | 0 | ' |
Foreign Operations | SPAIN | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Allowance for Doubtful Accounts | 0 | ' |
Foreign Operations | PORTUGAL | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Allowance for Doubtful Accounts | 0 | ' |
Foreign Operations | GREECE | ' | ' |
Accounts Receivable [Line Items] | ' | ' |
Allowance for Doubtful Accounts | $352 | ' |
Provision_for_Benefit_from_Inc
Provision for Benefit from Income Taxes Based Income Loss Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Provision For Income Taxes [Line Items] | ' | ' | ' |
U.S. Source | $46,675 | $45,422 | $63,640 |
Non-U.S. Source | -223,178 | -163,700 | -107,267 |
LOSS BEFORE INCOME TAXES | ($176,503) | ($118,278) | ($43,627) |
Components_of_Provision_for_Be
Components of Provision for Benefit from Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components Of Income Tax Expense Benefit [Line Items] | ' | ' | ' |
Federal | $5,060 | $2,253 | $2,766 |
State and local | 1,496 | 1,879 | 1,439 |
Foreign | 2,199 | 1,858 | 1,641 |
Current income tax expense, total | 8,755 | 5,990 | 5,846 |
Federal | -6,084 | -6,055 | 7,398 |
State and local | -2,658 | -3,891 | -2,957 |
Foreign | -163 | 25 | -78 |
Deferred income tax expense (benefit), total | -8,905 | -9,921 | 4,363 |
Provision for (benefit from) income taxes | ($150) | ($3,931) | $10,209 |
Reconciliation_of_Statutory_Fe
Reconciliation of Statutory Federal Income Tax Rate to Company Effective Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Reconciliation of Statutory Federal Tax Rate [Line Items] | ' | ' | ' |
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes | -0.30% | -1.30% | -1.90% |
Orphan Drug & General Business Credit | 14.70% | 27.60% | 43.90% |
Stock compensation expense | -1.70% | -1.60% | -8.20% |
Changes in the fair value of contingent acquisition consideration payable | -2.90% | -2.60% | 1.50% |
Foreign tax rate differential | -45.40% | -50.00% | -86.70% |
Other | 1.60% | -3.20% | -2.00% |
Valuation allowance/Deferred benefit | -0.90% | -0.60% | -5.00% |
Effective income tax rate | 0.10% | 3.30% | -23.40% |
Components_of_Company_Net_Defe
Components of Company Net Deferred Tax Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary Of Net Deferred Tax Assets [Line Items] | ' | ' |
Net operating loss carryforwards | $22,890 | $20,431 |
Credit carryforwards | 176,226 | 170,322 |
Property, plant and equipment | 504 | 1,791 |
Accrued expenses, reserves, and prepaids | 21,071 | 18,770 |
Intangible assets | 8,255 | 6,161 |
Stock-based compensation | 29,603 | 22,634 |
Inventory | 12,417 | 17,074 |
Capital loss carryforwards | 3,071 | 3,083 |
Other | 799 | 764 |
Gross deferred tax assets | 274,836 | 261,030 |
Joint venture basis difference | -1,806 | -1,801 |
Acquired Intangibles | -34,091 | -31,420 |
Convertible notes discount | -46,029 | 0 |
Other comprehensive loss | -3,611 | -75 |
Valuation allowance | -8,347 | -6,075 |
Net deferred tax assets | $180,952 | $221,659 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Contingency [Line Items] | ' | ' | ' |
Net operating loss carryforwards | $22,890,000 | $20,431,000 | ' |
Unrecognized tax benefit | 50,815,000 | 43,531,000 | 36,350,000 |
Valuation allowance increase (decrease) | 2,300,000 | 600,000 | ' |
Unrecognized tax benefits that would affect the effective tax rate if recognized | 50,800,000 | ' | ' |
Undistributed earnings of foreign subsidiaries | 4,700,000 | ' | ' |
Deferred income taxes that have not been provided on foreign earnings | 1,700,000 | ' | ' |
Federal | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 29,100,000 | ' | ' |
Research credit carry forward | 250,400,000 | ' | ' |
Federal | Employee Stock Purchase Plan | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Unrecognized tax benefit | 199,600,000 | ' | ' |
Federal | Minimum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Operating loss carry forward if not utilized, expiration date | '2026 | ' | ' |
Research credit carryovers if not utilized, expiration date | '2020 | ' | ' |
Federal | Maximum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Operating loss carry forward if not utilized, expiration date | '2033 | ' | ' |
Research credit carryovers if not utilized, expiration date | '2033 | ' | ' |
State | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 184,100,000 | ' | ' |
Research credit carry forward | 39,900,000 | ' | ' |
State | Employee Stock Purchase Plan | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Unrecognized tax benefit | 71,200,000 | ' | ' |
State | Minimum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Operating loss carry forward if not utilized, expiration date | '2015 | ' | ' |
Research credit carryovers if not utilized, expiration date | '2017 | ' | ' |
State | Maximum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Operating loss carry forward if not utilized, expiration date | '2033 | ' | ' |
CANADA | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Net operating loss carryforwards | 1,800,000 | ' | ' |
Research credit carry forward | 600,000 | ' | ' |
Research credit carryforward, valuation allowance | $200,000 | ' | ' |
CANADA | Minimum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Operating loss carry forward if not utilized, expiration date | '2014 | ' | ' |
Research credit carryovers if not utilized, expiration date | '2018 | ' | ' |
CANADA | Maximum | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' |
Operating loss carry forward if not utilized, expiration date | '2027 | ' | ' |
Research credit carryovers if not utilized, expiration date | '2022 | ' | ' |
Reconciliation_of_Unrecognized
Reconciliation of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Contingency [Line Items] | ' | ' |
Balance at beginning of period | $43,531 | $36,350 |
Additions based on tax positions related to the current year | 7,478 | 7,190 |
Additions for tax positions of prior years | -194 | -9 |
Balance at end of period | $50,815 | $43,531 |
Collaborative_Agreements_Addit
Collaborative Agreements - Additional Information (Detail) (USD $) | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | 31-May-13 | Dec. 31, 2013 | Dec. 31, 2013 |
D | Catalyst Pharmaceutical Partners, Inc. | Catalyst Pharmaceutical Partners, Inc. | Shire Human Genetic Therapies, Inc | If Merck opts in prior to unblinding of first Phase 3 trial | If Merck opts in after unblinding of first Phase 3 trial | ||||
Y | Merck Serono's | Merck Serono's | |||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Collaborative agreements, percentage of payment if Merck elects to opt-in | ' | ' | ' | ' | ' | ' | ' | 75.00% | 100.00% |
Collaborative agreements, payment for development milestone if Merck elects to opt-in | ' | ' | ' | ' | ' | ' | ' | $7,000,000 | $7,000,000 |
Term of the collaborative agreement, years | 10 | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts receivable | 300,000 | 400,000 | ' | ' | 43,000 | 800,000 | 18,000,000 | ' | ' |
Termination of collaborative agreement prior to written notice in number of days | 90 | ' | ' | ' | ' | ' | ' | ' | ' |
Royalties on net product sales | ' | ' | ' | 7.00% | ' | ' | 3.00% | ' | ' |
Royalties on net product sales | ' | ' | ' | 10.00% | ' | ' | 5.00% | ' | ' |
Licensing arrangement, convertible promissory note received | 0 | 5,000,000 | 0 | ' | ' | ' | ' | ' | ' |
Licensing arrangement, shares received upon conversion promissory note | ' | ' | ' | ' | 6.7 | ' | ' | ' | ' |
Licensing arrangement, conversion price | $94.15 | ' | ' | ' | $0.75 | ' | ' | ' | ' |
Licensing arrangement, loss on conversion of promissory note | 0 | -2,000,000 | 0 | ' | -2,000,000 | ' | ' | ' | ' |
Non-refundable upfront payment received | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' |
Commitments for next five year | $38,200,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Recovered_Sheet7
Compensation Agreements and Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Biomarin Retirement Savings Plan | ' | ' | ' |
Compensation And Retirement Disclosure [Line Items] | ' | ' | ' |
Employee contribution of their current compensation | 100.00% | ' | ' |
Company's contribution to match employees contribution | 100.00% | ' | ' |
Employer contribution of maximum percentage over employee's annual compensation | 2.00% | ' | ' |
Employer contribution over employee's annual compensation | $4,000 | ' | ' |
Company's savings plan contribution vesting period, years | '4 years | ' | ' |
Company's contribution from employment commencement | 3,400,000 | 2,800,000 | 2,200,000 |
Employer contribution of maximum percentage over employee's next year annual compensation | 3.00% | ' | ' |
Employer contribution over employee's next year annual compensation | 6,000 | ' | ' |
Deferred Compensation Plan | ' | ' | ' |
Compensation And Retirement Disclosure [Line Items] | ' | ' | ' |
Fair value of company stock held | 13,600,000 | 11,500,000 | ' |
Gain (loss) in fair value of restricted stock issued | ($4,200,000) | ($3,200,000) | ($1,300,000) |
Joint_Venture_Additional_Infor
Joint Venture - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
BioMarin/Genzyme LLC | ' |
Jointly Owned Utility Plant Interests [Line Items] | ' |
Share of net income (loss) of BioMarin/Genzyme LLC, percentage | 50.00% |
Sales | Minimum | ' |
Jointly Owned Utility Plant Interests [Line Items] | ' |
Product revenue, net product sales percentage | 39.50% |
Sales | Maximum | ' |
Jointly Owned Utility Plant Interests [Line Items] | ' |
Product revenue, net product sales percentage | 50.00% |
Joint_Venture_Operation_Detail
Joint Venture Operation (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity in the loss of BioMarin/Genzyme LLC | ($1,149) | ($1,221) | ($2,426) |
Joint Venture | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Revenue | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Operating expenses | 2,221 | 2,534 | 4,855 |
Loss from operations | -2,221 | -2,534 | -4,855 |
Other income | 3 | 4 | 5 |
Net loss | -2,218 | -2,530 | -4,850 |
Equity in the loss of BioMarin/Genzyme LLC | ($1,149) | ($1,221) | ($2,426) |
Assets_and_Liabilities_and_Com
Assets and Liabilities and Components of Investment in Joint Venture (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Equity Method Investments [Line Items] | ' | ' |
Investment in BioMarin/Genzyme LLC (50% share of net equity) | $816 | $1,080 |
Joint Venture | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' |
Assets | 1,770 | 3,343 |
Liabilities | -136 | -1,747 |
Net equity | 1,634 | 1,596 |
Investment in BioMarin/Genzyme LLC (50% share of net equity) | $816 | $1,080 |
Recovered_Sheet8
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Commitments and Contingencies [Line Items] | ' | ' | ' |
Lease expiration date | '2022 | ' | ' |
Annual minimum lease obligation | $35.90 | ' | ' |
Rent expense | 10.4 | 10.1 | 6 |
Deferred rent accruals | 9.9 | 10 | ' |
Deferred rent accruals, current | 0.9 | 1 | ' |
Minimum annual commitments | 1.2 | ' | ' |
Contingent payments upon achievement of certain regulatory and licensing milestones | 422.2 | ' | ' |
Contingent acquisition consideration payable | 42.7 | ' | ' |
San Rafael Corporate Center | ' | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' | ' |
Deferred rent accruals | 8.8 | ' | ' |
Current Liabilities | ' | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' | ' |
Contingent acquisition consideration payable | 11.9 | ' | ' |
Completed Programs | ' | ' | ' |
Commitments and Contingencies [Line Items] | ' | ' | ' |
Contingent payments upon achievement of certain regulatory and licensing milestones | $56.40 | ' | ' |
Minimum_Lease_Payments_for_Fut
Minimum Lease Payments for Future Years (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | ' |
2014 | $10,897 |
2015 | 10,059 |
2016 | 8,907 |
2017 | 8,343 |
2018 | 8,045 |
Thereafter | 20,280 |
Total | $66,531 |