Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | CORT | |
Entity Registrant Name | CORCEPT THERAPEUTICS INC | |
Entity Central Index Key | 0001088856 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 114,858,708 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 49,650 | $ 41,625 |
Short-term marketable securities | 137,255 | 165,135 |
Trade receivables, net of allowances | 19,218 | 17,588 |
Inventory | 5,000 | 4,732 |
Prepaid expenses and other current assets | 5,741 | 7,740 |
Total current assets | 216,864 | 236,820 |
Strategic inventory | 10,360 | 11,510 |
Operating lease right-of-use asset | 1,465 | |
Property and equipment, net of accumulated depreciation | 925 | 655 |
Long-term marketable securities | 28,842 | 0 |
Other assets | 75 | 50 |
Deferred tax assets, net | 61,681 | 62,659 |
Total assets | 320,212 | 311,694 |
Current liabilities: | ||
Accounts payable | 9,330 | 8,266 |
Accrued clinical expenses | 4,537 | 3,521 |
Other accrued liabilities | 18,830 | 23,786 |
Operating lease liability | 1,521 | |
Total current liabilities | 34,218 | 35,573 |
Long-term accrued income taxes | 239 | 239 |
Total liabilities | 34,457 | 35,812 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Common stock | 118 | 117 |
Additional paid-in capital | 427,317 | 417,228 |
Treasury stock | (42,312) | (23,657) |
Accumulated other comprehensive gain (loss) | 94 | (70) |
Accumulated deficit | (99,462) | (117,736) |
Total stockholders’ equity | 285,755 | 275,882 |
Total liabilities and stockholders’ equity | $ 320,212 | $ 311,694 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Product revenue, net | $ 64,829 | $ 57,659 |
Operating expenses: | ||
Cost of sales | 1,240 | 1,174 |
Research and development | 20,244 | 17,050 |
Selling, general and administrative | 24,389 | 18,440 |
Total operating expenses | 45,873 | 36,664 |
Income from operations | 18,956 | 20,995 |
Interest and other income | 1,097 | 294 |
Income before income taxes | 20,053 | 21,289 |
Income tax expense | (1,779) | (3,830) |
Net income | 18,274 | 17,459 |
Other comprehensive income (loss): | ||
Net unrealized income (loss) on available-for-sale investments, net of tax impact of $(52) and $48, respectively | 164 | (152) |
Total comprehensive income | $ 18,438 | $ 17,307 |
Basic net income per share (in dollars per share) | $ 0.16 | $ 0.15 |
Diluted net income per share (in dollars per share) | $ 0.15 | $ 0.14 |
Weighted-average shares outstanding used in computing net income per share | ||
Basic (in shares) | 114,844 | 114,882 |
Diluted (in shares) | 123,895 | 127,733 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net unrealized income (loss) on available-for-sale investments, tax impact | $ (52) | $ 48 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 18,274,000 | $ 17,459,000 |
Adjustments to reconcile net income to net cash generated from operations: | ||
Stock-based compensation | 6,696,000 | 4,954,000 |
Deferred income taxes | 926,000 | 3,169,000 |
Excess tax benefits from stock option activity | 0 | 54,000 |
Accretion of interest income | (634,000) | (198,000) |
Depreciation and amortization of property and equipment | 96,000 | 48,000 |
Non-cash amortization of right-of-use asset | 413,000 | |
Changes in operating assets and liabilities: | ||
Trade receivables | (1,630,000) | (1,961,000) |
Other receivable | 0 | 12,876,000 |
Inventory | 910,000 | 590,000 |
Prepaid expenses and other current assets | 1,999,000 | (635,000) |
Other assets | (25,000) | (23,000) |
Accounts payable | 953,000 | (759,000) |
Accrued clinical expenses | 1,016,000 | 1,239,000 |
Other accrued liabilities | (4,956,000) | (2,383,000) |
Operating lease liability | (357,000) | |
Net cash provided by operating activities | 23,681,000 | 34,430,000 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (257,000) | (77,000) |
Purchases of marketable securities | 70,825,000 | 16,650,000 |
Purchases of marketable securities | (70,935,000) | (50,866,000) |
Cash used in investing activities | (367,000) | (34,293,000) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock upon exercise of options, net of issuance costs | 2,435,000 | 1,922,000 |
Repurchase of common stock | (13,555,000) | 0 |
Cash paid to satisfy statutory withholding requirement for net settlement of cashless option exercise | (4,169,000) | 0 |
Net cash (used in) provided by financing activities | (15,289,000) | 1,922,000 |
Net increase in cash and cash equivalents | 8,025,000 | 2,059,000 |
Cash and cash equivalents, at beginning of period | 41,625,000 | 31,062,000 |
Cash and cash equivalents, at end of period | 49,650,000 | 33,121,000 |
Non-cash transactions: | ||
Cost of shares tendered for net settlement of cashless option exercise | 931,000 | $ 0 |
Recognition of right-of-use asset and lease liability | $ 1,878,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance at Dec. 31, 2017 | $ 190,968 | $ 115 | $ 384,074 | $ 0 | $ (75) | $ (193,146) |
Beginning balance (in shares) at Dec. 31, 2017 | 114,717 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of options (in shares) | 479 | |||||
Issuance of common stock upon exercise of options | 1,922 | 1,922 | ||||
Stock-based compensation | 4,954 | 4,954 | ||||
Net unrealized gain (loss) on marketable securities, net of tax | (77) | (77) | ||||
Net income | 17,459 | 17,459 | ||||
Ending balance (in shares) at Mar. 31, 2018 | 115,196 | |||||
Ending balance at Mar. 31, 2018 | 215,226 | $ 115 | 390,950 | 0 | (152) | (175,687) |
Beginning balance at Dec. 31, 2018 | 275,882 | $ 117 | 417,228 | (23,657) | (70) | (117,736) |
Beginning balance (in shares) at Dec. 31, 2018 | 115,031 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon exercise of options (in shares) | 1,497 | |||||
Issuance of common stock upon exercise of options | 3,366 | $ 1 | 3,365 | |||
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercise (in shares) | (428) | |||||
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercise | (5,100) | (5,100) | ||||
Stock-based compensation | 6,724 | 6,724 | ||||
Net unrealized gain (loss) on marketable securities, net of tax | 164 | 164 | ||||
Purchases of treasury stock (in shares) | (1,168) | |||||
Purchases of treasury stock | (13,555) | (13,555) | ||||
Net income | 18,274 | 18,274 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 114,932 | |||||
Ending balance at Mar. 31, 2019 | $ 285,755 | $ 118 | $ 427,317 | $ (42,312) | $ 94 | $ (99,462) |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Description of Business and Basis of Presentation Corcept Therapeutics Incorporated was incorporated in the State of Delaware in May 1998, and our headquarters are in Menlo Park, California. We are a commercial-stage pharmaceutical company engaged in the discovery, development and commercialization of medications that treat severe metabolic, oncologic and psychiatric disorders by modulating the effect of the stress hormone cortisol. In 2012, the U.S. Food and Drug Administration (“FDA”) approved our first product, Korlym® (“mifepristone”) 300 mg tablets, as a once-daily oral medication for treatment of hyperglycemia secondary to hypercortisolism in adult patients with endogenous Cushing’s syndrome who have type 2 diabetes mellitus or glucose intolerance and have failed surgery or are not candidates for surgery. We have discovered and patented three structurally distinct series of selective cortisol modulators, consisting of more than 500 compounds, and are developing compounds from these series as potential treatments for a broad range of serious disorders. Basis of Presentation We have prepared the March 31, 2019 condensed consolidated balance sheet and statements of comprehensive income, cash flows and stockholders' equity for the three months ended March 31, 2019 and 2018 in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (which in the applicable periods consist only of normal, recurring adjustments) have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results for the remainder of 2019 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2018 included in our Annual Report on Form 10-K. The December 31, 2018 balance sheet was derived from audited financial statements at that date. There have been no material changes in the significant accounting policies described in our Annual Report on Form 10-K for the year ended December 31, 2018 except for the adoption of the accounting pronouncements set forth below. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which requires lease transactions with terms longer than 12 months to be recognized on the balance sheet as a liability (“lease liabilities”), offset by an asset of equal amount (“right-of-use assets”). ASU No. 2016-02 supersedes the lease accounting requirements of ASC Topic 840, "Leases" and creates Topic 842, "Leases." We adopted this standard using the modified retrospective approach on January 1, 2019. Prior comparative periods were not adjusted under this approach. We have reviewed all contracts that may contain leases and we have determined that the only impact is to our accounting for our leased office space. We have elected to apply the package of practical expedients that allows us to not reassess lease classification for any expired or existing lease contracts. The adoption did not have a material impact on our retained earnings on the adoption date and increased our “operating right-of-use assets" and “operating lease liability” by approximately $1.9 million . See Note 4 for more information regarding our leased office space. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The standard allows companies to reclassify to retained earnings tax effects related to items that have been stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (the “Act”). An entity that elects to reclassify these amounts must reclassify stranded tax effects related to the Act’s change in US federal tax rate for all items accounted for in other comprehensive income. These entities can also elect to reclassify other stranded effects that relate to the Act but do not directly relate to the change in the federal rate. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. We adopted this standard on January 1, 2019. It had no impact on our consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from nonemployees. This standard is effective for fiscal years and interim periods within those years, beginning after December 15, 2018. We adopted this standard on January 1, 2019. It had no impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which changes the methodology for measuring credit losses on financial instruments and when such losses are recorded. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. We plan to adopt this standard on January 1, 2020. Although we have not concluded our analysis, we do not expect adoption of this standard to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurements (Topic 820),” which eliminates or modifies certain disclosure requirements for fair value measurements and requires disclosure of certain new information. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We plan to adopt this standard on January 1, 2020 and are currently evaluating the impact of this new standard on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which requires a customer that is a party to a cloud computing service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We plan to adopt this standard on January 1, 2020 and are currently evaluating the impact of this new standard on our consolidated financial statements. |
Composition of Certain Balance
Composition of Certain Balance Sheet Items | 3 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Composition of Certain Balance Sheet Items | Composition of Certain Balance Sheet Items Inventory The composition of inventory was as follows: March 31, December 31, (in thousands) Raw materials $ 2,055 $ 4,195 Work in progress 6,936 5,624 Finished goods 6,369 6,423 Total inventory 15,360 16,242 Less strategic inventory classified as non-current (10,360 ) (11,510 ) Total inventory classified as current $ 5,000 $ 4,732 Because we rely on single-source manufacturers of both the active pharmaceutical ingredient (“API”) for Korlym and Korlym tablets, we have purchased and hold significant quantities of these materials. We classify inventory we do not expect to sell within 12 months of the balance sheet date as “Strategic Inventory,” a long-term asset. Other Accrued Liabilities Other accrued liabilities consisted of the following: March 31, December 31, (in thousands) Government rebates $ 10,829 $ 11,132 Accrued compensation 3,296 7,879 Income taxes payable 2,462 1,542 Legal fees 531 314 Professional fees 493 240 Accrued selling and marketing costs 699 261 Accrued manufacturing costs 70 2,032 Other 450 386 Total other accrued liabilities $ 18,830 $ 23,786 |
Available-for-Sale Securities a
Available-for-Sale Securities and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Available For Sale Securities And Fair Value Measurements [Abstract] | |
Available-for-Sale Securities and Fair Value Measurements | Available-for-Sale Securities and Fair Value Measurements Our available-for-sale securities included: Fair Value Hierarchy Level Estimated Fair Value March 31, December 31, (in thousands) Corporate bonds Level 2 $ 70,545 $ 54,469 Commercial paper Level 2 35,738 67,906 Asset-backed securities Level 2 28,951 10,965 Repurchase agreements Level 2 15,000 15,000 U.S. treasury securities Level 1 30,863 39,287 Money market funds Level 1 12,364 4,583 Total Marketable securities $ 193,461 $ 192,210 Classified as: Cash equivalents $ 27,364 $ 27,075 Short-term marketable securities 137,255 165,135 Long-term marketable securities 28,842 — Total marketable securities $ 193,461 $ 192,210 We estimate the fair value of marketable securities classified as Level 1 using quoted market prices for these or similar investments obtained from a commercial pricing service. We estimate the fair value of marketable securities classified as Level 2 using inputs that may include benchmark yields, reported trades, broker/dealer quotes and issuer spreads. As of March 31, 2019 , all our marketable securities had original maturities of less than two years . The weighted-average maturity of our holdings was six months . As of March 31, 2019 , of our long-term marketable securities have a remaining maturity of 12 to 18 months. None of our marketable securities changed from one fair value hierarchy to another during the three months ended March 31, 2019 . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | In February 2016, we extended the operating lease for our office space through 2019. In March 2017 we terminated and replaced it with a new lease effective until March 31, 2019 . We subsequently amended the lease to add additional space in June 2017, and again in November 2018, at which time it was extended through March 31, 2020. Based on the present value of the payments for the remaining term of our operating lease, we recognized a right-of-use asset and lease liability of approximately $1.9 million for our operating lease of approximately on January 1, 2019. Operating lease right-of-use assets and liabilities commencing after January 1, 2019 are recognized at a commencement date based on the present value of lease payments over the lease term. Because the rate implicit in our lease is not readily determinable, we use an incremental borrowing rate to determine the present value of the lease payments. All operating lease expense is recognized on a straight-line basis over the lease term. Operating lease expense for the three months ended March 31, 2019 was approximately $0.4 million . Information related to our right-of-use assets and related lease liabilities were as follows: Three Months Ended March 31, 2019 (in thousands) Cash paid for operating lease liability $ 379 Right-of-use assets obtained in exchange for new operating lease liability $ 1,878 Weighted-average remaining lease term 1 year Weighted-average discount rate 5.0 % As of March 31, 2019 , future minimum lease payments under non-cancelable operating leases due in each of the next two years were as follows (in thousands): 2019 (remainder) $ 1,172 2020 391 1,563 Less imputed interest (42 ) Total lease liability $ 1,521 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies There have been no material changes in our purchase commitments described in our Annual Report on Form 10-K for the year ended December 31, 2018. In the ordinary course of business, we may be subject to legal claims and regulatory actions that could have a material adverse effect on our business or financial position. We assess our potential liability in such situations by analyzing potential outcomes, assuming various litigation, regulatory and settlement strategies. If we determine a loss is probable and its amount can be reasonably estimated, we accrue an amount equal to the estimated loss. No losses and no provision for a loss contingency have been recorded to date. |
Stockholder_s Equity
Stockholder’s Equity | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholder’s Equity | Stockholders' Equity Stock Option Plans We have two stock option plans – the 2004 Equity Incentive Plan (the “2004 Plan”) and the 2012 Incentive Award Plan (the “2012 Plan”). In February 2019, our Board of Directors authorized a 4.6 million increase in the shares available for grant under the 2012 Plan. During the three months ended March 31, 2019 , we issued 1.5 million shares of our common stock upon the exercise of stock options. Of these shares, 0.8 million were issued as part of a net-share settlement of a cashless option exercise and 0.4 million were tendered to satisfy the related cost and statutory withholding requirements. During the three months ended March 31, 2018 , we issued 0.5 million shares of our common stock upon the exercise of stock options. The following table summarizes our stock-based compensation: Three Months Ended 2019 2018 (in thousands) Stock-based compensation capitalized in inventory $ 28 $ — Cost of sales 28 — Research and development 1,979 1,464 Selling, general and administrative 4,689 3,490 Total stock-based compensation $ 6,724 $ 4,954 Stock Repurchase Program On August 9, 2018, we announced that our Board of Directors had approved a program to repurchase up to $100 million of our common stock (the “Stock Repurchase Program”). Unless it is terminated or suspended prior to its expiration, the Stock Repurchase Program will remain in effect until June 30, 2019 with the timing and amount of any repurchases to be determined based on market conditions, our stock price and other factors. The Stock Repurchase Program does not require us to acquire any specific number of shares and we may modify, suspended or discontinue it in our sole discretion at any time, without notice. Repurchases may be made through a variety of methods, including in the open market, in block trades, through privately negotiated transactions or accelerated share repurchase transactions or any combination of such methods. During the three months ended March 31, 2019 , we repurchased 1.2 million shares of common stock under the Stock Repurchase Program in open market transactions at an average price of $11.61 per share, for an aggregate purchase price of $13.6 million . Shares repurchased are recorded as treasury stock at cost on our consolidated balance sheet. At March 31, 2019 , $62.8 million of the current authorization remained available for the repurchase of shares of our common stock. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share We compute basic and diluted net income per share by dividing our net income by the weighted-average number of common shares outstanding during the period. We used the treasury stock method to determine the number of dilutive shares of common stock resulting from the potential exercise of stock options. The statements of comprehensive income show the computation of net income per share for each period, including the number of weighted-average shares outstanding. The following table shows the computation of net income per share for each period: Three Months Ended 2019 2018 (in thousands) Numerator: Net income $ 18,274 $ 17,459 Denominator: Weighted-average shares used to compute basic net income per share 114,844 114,882 Dilutive effect of employee stock options 9,051 12,851 Weighted-average shares used to compute diluted net income per share 123,895 127,733 Net income per share Basic $ 0.16 $ 0.15 Diluted $ 0.15 $ 0.14 As of March 31, 2019 and 2018, we had 24.4 million and 23.1 million stock options outstanding, respectively. On a weighted-average basis, 8.5 million and 2.6 million stock options outstanding during the three months ended March 31, 2019 and 2018 , respectively, were excluded from the computation of diluted net income per share because including them would have reduced dilution. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income taxes We recorded income tax expense of $1.8 million for the three months ended March 31, 2019 , net of a $2.8 million discrete benefit related to stock option exercises and dispositions for the three months ended March 31, 2019 compared to income tax expense of $3.8 million for the three months ended March 31, 2018 . Income tax expense for the three months ended March 31, 2019 was primarily due to the reduction of deferred tax assets of $0.9 million , caused by our utilization of federal and state net operating losses and income tax expense of 0.9 million , incurred in U.S. jurisdictions where we do not have net operating loss carryforwards to offset our tax obligations. Income tax expense for the three months ended March 31, 2018 was primarily due to a $3.2 million reduction of deferred tax assets caused by our utilization of federal and state net operating losses and a $0.6 million income tax expense incurred in states where we have no net operating loss carryforwards to offset our tax obligations. Our effective tax rate differed from the federal statutory rate due to state income taxes and non-deductible stock-based compensation, which increased our tax expense, offset by research and development tax credits and the reduction in taxable income arising from the exercise of employee stock options during the reporting period. Each quarter, we assess our ability to use our deferred tax assets to offset our expected federal and state taxable income. In the fourth quarter of 2017, we determined that it was more likely than not that we would generate sufficient taxable income to utilize our federal and state deferred tax assets in every state except California. We therefore included in our balance sheet the net value of all our deferred tax assets except those applicable to California. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation We have prepared the March 31, 2019 condensed consolidated balance sheet and statements of comprehensive income, cash flows and stockholders' equity for the three months ended March 31, 2019 and 2018 in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. They do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation (which in the applicable periods consist only of normal, recurring adjustments) have been included. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results for the remainder of 2019 or any other period. These financial statements and notes should be read in conjunction with the financial statements for the year ended December 31, 2018 included in our Annual Report on Form 10-K. The December 31, 2018 balance sheet was derived from audited financial statements at that date |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, “Leases”, which requires lease transactions with terms longer than 12 months to be recognized on the balance sheet as a liability (“lease liabilities”), offset by an asset of equal amount (“right-of-use assets”). ASU No. 2016-02 supersedes the lease accounting requirements of ASC Topic 840, "Leases" and creates Topic 842, "Leases." We adopted this standard using the modified retrospective approach on January 1, 2019. Prior comparative periods were not adjusted under this approach. We have reviewed all contracts that may contain leases and we have determined that the only impact is to our accounting for our leased office space. We have elected to apply the package of practical expedients that allows us to not reassess lease classification for any expired or existing lease contracts. The adoption did not have a material impact on our retained earnings on the adoption date and increased our “operating right-of-use assets" and “operating lease liability” by approximately $1.9 million . See Note 4 for more information regarding our leased office space. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The standard allows companies to reclassify to retained earnings tax effects related to items that have been stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act (the “Act”). An entity that elects to reclassify these amounts must reclassify stranded tax effects related to the Act’s change in US federal tax rate for all items accounted for in other comprehensive income. These entities can also elect to reclassify other stranded effects that relate to the Act but do not directly relate to the change in the federal rate. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. We adopted this standard on January 1, 2019. It had no impact on our consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, “Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting,” which expands the scope of ASC 718 to include all share-based payment arrangements related to the acquisition of goods and services from nonemployees. This standard is effective for fiscal years and interim periods within those years, beginning after December 15, 2018. We adopted this standard on January 1, 2019. It had no impact on our consolidated financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments,” which changes the methodology for measuring credit losses on financial instruments and when such losses are recorded. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. Early adoption is permitted beginning after December 15, 2018. We plan to adopt this standard on January 1, 2020. Although we have not concluded our analysis, we do not expect adoption of this standard to have a material impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurements (Topic 820),” which eliminates or modifies certain disclosure requirements for fair value measurements and requires disclosure of certain new information. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We plan to adopt this standard on January 1, 2020 and are currently evaluating the impact of this new standard on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which requires a customer that is a party to a cloud computing service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2019. We plan to adopt this standard on January 1, 2020 and are currently evaluating the impact of this new standard on our consolidated financial statements. |
Income Taxes | Each quarter, we assess our ability to use our deferred tax assets to offset our expected federal and state taxable income. In the fourth quarter of 2017, we determined that it was more likely than not that we would generate sufficient taxable income to utilize our federal and state deferred tax assets in every state except California. We therefore included in our balance sheet the net value of all our deferred tax assets except those applicable to California. |
Composition of Certain Balanc_2
Composition of Certain Balance Sheet Items (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Composition of Inventory | The composition of inventory was as follows: March 31, December 31, (in thousands) Raw materials $ 2,055 $ 4,195 Work in progress 6,936 5,624 Finished goods 6,369 6,423 Total inventory 15,360 16,242 Less strategic inventory classified as non-current (10,360 ) (11,510 ) Total inventory classified as current $ 5,000 $ 4,732 |
Schedule of Other Accrued Liabilities | Other accrued liabilities consisted of the following: March 31, December 31, (in thousands) Government rebates $ 10,829 $ 11,132 Accrued compensation 3,296 7,879 Income taxes payable 2,462 1,542 Legal fees 531 314 Professional fees 493 240 Accrued selling and marketing costs 699 261 Accrued manufacturing costs 70 2,032 Other 450 386 Total other accrued liabilities $ 18,830 $ 23,786 |
Available-for-Sale Securities_2
Available-for-Sale Securities and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Available For Sale Securities And Fair Value Measurements [Abstract] | |
Schedule of Available-for-Sale Securities | Our available-for-sale securities included: Fair Value Hierarchy Level Estimated Fair Value March 31, December 31, (in thousands) Corporate bonds Level 2 $ 70,545 $ 54,469 Commercial paper Level 2 35,738 67,906 Asset-backed securities Level 2 28,951 10,965 Repurchase agreements Level 2 15,000 15,000 U.S. treasury securities Level 1 30,863 39,287 Money market funds Level 1 12,364 4,583 Total Marketable securities $ 193,461 $ 192,210 Classified as: Cash equivalents $ 27,364 $ 27,075 Short-term marketable securities 137,255 165,135 Long-term marketable securities 28,842 — Total marketable securities $ 193,461 $ 192,210 |
Leases Leases (Tables)
Leases Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Information of Leases Asset and Liabilities | Information related to our right-of-use assets and related lease liabilities were as follows: Three Months Ended March 31, 2019 (in thousands) Cash paid for operating lease liability $ 379 Right-of-use assets obtained in exchange for new operating lease liability $ 1,878 Weighted-average remaining lease term 1 year Weighted-average discount rate 5.0 % |
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases | As of March 31, 2019 , future minimum lease payments under non-cancelable operating leases due in each of the next two years were as follows (in thousands): 2019 (remainder) $ 1,172 2020 391 1,563 Less imputed interest (42 ) Total lease liability $ 1,521 |
Stockholder_s Equity (Tables)
Stockholder’s Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Summary of Stock-Based Compensation | The following table summarizes our stock-based compensation: Three Months Ended 2019 2018 (in thousands) Stock-based compensation capitalized in inventory $ 28 $ — Cost of sales 28 — Research and development 1,979 1,464 Selling, general and administrative 4,689 3,490 Total stock-based compensation $ 6,724 $ 4,954 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Net Income Per Share | The following table shows the computation of net income per share for each period: Three Months Ended 2019 2018 (in thousands) Numerator: Net income $ 18,274 $ 17,459 Denominator: Weighted-average shares used to compute basic net income per share 114,844 114,882 Dilutive effect of employee stock options 9,051 12,851 Weighted-average shares used to compute diluted net income per share 123,895 127,733 Net income per share Basic $ 0.16 $ 0.15 Diluted $ 0.15 $ 0.14 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)series | Dec. 31, 2018compound | Jan. 01, 2019USD ($) | |
Accounting Policies [Line Items] | |||
Number of series of selective cortisol modulators | series | 3 | ||
Number of compounds | compound | 500 | ||
Total lease liability | $ 1,521 | ||
Operating lease right-of-use asset | $ 1,465 | ||
Accounting Standards Update 2016-02 | |||
Accounting Policies [Line Items] | |||
Total lease liability | $ 1,900 | ||
Operating lease right-of-use asset | $ 1,900 |
Composition of Certain Balanc_3
Composition of Certain Balance Sheet Items (Composition of Inventory) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 2,055 | $ 4,195 |
Work in progress | 6,936 | 5,624 |
Finished goods | 6,369 | 6,423 |
Total inventory | 15,360 | 16,242 |
Less strategic inventory classified as non-current | (10,360) | (11,510) |
Total inventory classified as current | $ 5,000 | $ 4,732 |
Composition of Certain Balanc_4
Composition of Certain Balance Sheet Items (Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Government rebates | $ 10,829 | $ 11,132 |
Accrued compensation | 3,296 | 7,879 |
Income taxes payable | 2,462 | 1,542 |
Legal fees | 531 | 314 |
Professional fees | 493 | 240 |
Accrued selling and marketing costs | 699 | 261 |
Accrued manufacturing costs | 70 | 2,032 |
Other | 450 | 386 |
Total other accrued liabilities | $ 18,830 | $ 23,786 |
Available-for-Sale Securities_3
Available-for-Sale Securities and Fair Value Measurements (Schedule of Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Short-term marketable securities | $ 137,255 | $ 165,135 |
Long-term marketable securities | 28,842 | 0 |
Estimated Fair Value | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities | 193,461 | 192,210 |
Cash equivalents | 27,364 | 27,075 |
Short-term marketable securities | 137,255 | 165,135 |
Long-term marketable securities | 28,842 | 0 |
Corporate Bonds | Estimated Fair Value | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities | 70,545 | 54,469 |
Commercial Paper | Estimated Fair Value | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities | 35,738 | 67,906 |
Asset Backed Securities | Estimated Fair Value | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities | 28,951 | 10,965 |
Repurchase Agreements | Estimated Fair Value | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities | 15,000 | 15,000 |
U.S. Treasury Securities | Estimated Fair Value | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities | 30,863 | 39,287 |
Money Market Funds | Estimated Fair Value | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Marketable securities | $ 12,364 | $ 4,583 |
Available-for-Sale Securities_4
Available-for-Sale Securities and Fair Value Measurements (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Maximum maturity period | 2 years |
Weighted average maturity period | 6 months |
Minimum | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long term marketable securities, remaining maturity | 12 months |
Maximum | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long term marketable securities, remaining maturity | 18 months |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use asset | $ 1,465 | |
Operating lease expenses | 400 | |
Cash paid for operating lease liability | 379 | |
Right-of-use assets obtained in exchange for new operating lease liability | $ 1,878 | |
Weighted-average remaining lease term | 1 year | |
Weighted-average discount rate | 5.00% | |
Operating Lease Liabilities, Payments Due [Abstract] | ||
2019 (remainder) | $ 1,172 | |
2020 | 391 | |
Total | 1,563 | |
Less imputed interest | (42) | |
Total lease liability | $ 1,521 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use asset | $ 1,900 | |
Operating Lease Liabilities, Payments Due [Abstract] | ||
Total lease liability | $ 1,900 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Losses for contingent liability | $ 0 |
Provision for a loss contingency | $ 0 |
Stockholder's Equity (Narrative
Stockholder's Equity (Narrative) (Details) | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2018shares | Mar. 31, 2019USD ($)stock_option_plan$ / sharesshares | Mar. 31, 2018shares | Aug. 09, 2018USD ($) | |
Shareholders Equity [Line Items] | ||||
Number of stock option plans | stock_option_plan | 2 | |||
Net-share settlement (in shares) | 800,000 | |||
Common stock repurchased | $ | $ 13,555,000 | |||
Common Stock | ||||
Shareholders Equity [Line Items] | ||||
Common shares issued upon exercise of options (in shares) | 1,497,000 | 479,000 | ||
Shares tendered to satisfy cost and withholding requirements (in shares) | 428,000 | |||
Common stock repurchased (in shares) | 1,168,000 | |||
Stock Repurchase Program | Common Stock | ||||
Shareholders Equity [Line Items] | ||||
Stock repurchase amount | $ | $ 100,000,000 | |||
Common stock repurchased (in shares) | 1,200,000 | |||
Common stock repurchased, average price (in dollars per share) | $ / shares | $ 11.61 | |||
Common stock repurchased | $ | $ 13,600,000 | |||
Stock repurchase program, remaining authorized amount available for repurchase | $ | $ 62,800,000 | |||
2012 Equity Incentive Award Plan | ||||
Shareholders Equity [Line Items] | ||||
Increase in shares authorized for grant (in shares) | 4,600,000 |
Stockholder's Equity (Summary o
Stockholder's Equity (Summary of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock-based compensation capitalized in inventory | $ 28 | $ 0 |
Total stock-based compensation | 6,724 | 4,954 |
Cost of Sales [Member] | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | 28 | 0 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | 1,979 | 1,464 |
Selling, general and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Allocated share-based compensation expense | $ 4,689 | $ 3,490 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Computation of Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income | $ 18,274 | $ 17,459 |
Denominator: | ||
Weighted-average shares used to compute basic net income per share (in shares) | 114,844 | 114,882 |
Dilutive effect of employee stock options (in shares) | 9,051 | 12,851 |
Weighted-average shares used to compute diluted net income per share (in shares) | 123,895 | 127,733 |
Net income per share | ||
Basic (in dollars per share) | $ 0.16 | $ 0.15 |
Diluted (in dollars per share) | $ 0.15 | $ 0.14 |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Stock options outstanding (in shares) | 24.4 | 23.1 |
Stock Options to Purchase Common Stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Weighted average options excluded from the computation of diluted net income per share (in shares) | 8.5 | 2.6 |
Income Taxes - (Narrative) (Det
Income Taxes - (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) | $ 1,779 | $ 3,830 |
Discrete benefit from stock option exercises | 2,800 | |
Reduction of deferred tax assets | 900 | 3,200 |
State income tax expense | $ 900 | $ 600 |