Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 21, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-50679 | ||
Entity Registrant Name | CORCEPT THERAPEUTICS INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 77-0487658 | ||
Entity Address, Address Line One | 149 Commonwealth Drive | ||
Entity Address, City or Town | Menlo Park | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94025 | ||
City Area Code | 650 | ||
Local Phone Number | 327-3270 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | CORT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,058,080,161 | ||
Entity Common Stock, Shares Outstanding | 107,899,316 | ||
Documents Incorporated by Reference | Portions of the Registrant’s definitive proxy statement for its 2023 Annual Meeting of Stockholders are incorporated by reference in Items 10, 11, 12, 13 and 14 of Part III. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001088856 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 42 |
Auditor Name | Ernst & Young LLP |
Auditor Location | San Mateo, California |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 66,329 | $ 77,617 |
Short-term marketable securities | 365,343 | 145,918 |
Trade receivables, net of allowances | 31,057 | 27,625 |
Insurance recovery receivable related to Melucci litigation (Note 10) | 14,000 | 0 |
Inventory | 6,100 | 4,988 |
Prepaid expenses and other current assets | 16,424 | 10,315 |
Total current assets | 499,253 | 266,463 |
Strategic inventory | 10,931 | 12,962 |
Operating lease right-of-use asset | 1,143 | 514 |
Property and equipment, net of accumulated depreciation and amortization | 633 | 1,002 |
Long-term marketable securities | 4,947 | 112,277 |
Other assets | 5,058 | 3,083 |
Deferred tax assets, net | 61,465 | 27,455 |
Total assets | 583,430 | 423,756 |
Current liabilities: | ||
Accounts payable | 11,976 | 6,908 |
Accrued research and development expenses | 14,573 | 12,442 |
Accrued and other liabilities | 30,799 | 27,665 |
Accrued settlement related to Melucci litigation (Note 10) | 14,000 | 0 |
Short-term operating lease liability | 1,143 | 526 |
Total current liabilities | 72,491 | 47,541 |
Long-term accrued income taxes payable | 9,097 | 409 |
Total liabilities | 81,588 | 47,950 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Preferred stock, par value $0.001 per share, 10,000 shares authorized and no shares outstanding as of December 31, 2022 and December 31, 2021 | 0 | 0 |
Common stock, par value $0.001 per share, 280,000 shares authorized and 130,959 issued and 107,835 outstanding as of December 31, 2022 and 127,218 shares issued and 105,940 outstanding as of December 31, 2021 | 131 | 127 |
Treasury stock; at cost; 23,124 shares of common stock as of December 31, 2022 and 21,278 shares of common stock as of December 31, 2021 | (456,148) | (410,411) |
Additional paid-in capital | 662,342 | 591,349 |
Accumulated other comprehensive loss | (869) | (227) |
Retained earnings | 296,386 | 194,968 |
Total stockholders’ equity | 501,842 | 375,806 |
Total liabilities and stockholders’ equity | $ 583,430 | $ 423,756 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 280,000,000 | 280,000,000 |
Common stock, shares, issued | 130,959,000 | 127,218,000 |
Common stock, shares, outstanding | 107,835,000 | 105,940,000 |
Treasury stock (in shares) | 23,124,000 | 21,278,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Product revenue, net | $ 401,858 | $ 365,978 | $ 353,874 |
Operating expenses: | |||
Cost of sales | 5,385 | 5,281 | 5,582 |
Research and development | 130,991 | 113,864 | 114,764 |
Selling, general and administrative | 152,848 | 122,356 | 105,326 |
Settlement expense related to Melucci litigation | 14,000 | 0 | 0 |
Insurance recovery related to Melucci litigation | (14,000) | 0 | 0 |
Total operating expenses | 289,224 | 241,501 | 225,672 |
Income from operations | 112,634 | 124,477 | 128,202 |
Interest and other income | 3,557 | 529 | 3,400 |
Income before income taxes | 116,191 | 125,006 | 131,602 |
Income tax expense | (14,773) | (12,494) | (25,591) |
Net income | 101,418 | 112,512 | 106,011 |
Net income attributable to common stockholders, basic | 101,288 | 112,512 | 106,011 |
Net income attributable to common stockholders, diluted | $ 101,288 | $ 112,512 | $ 106,011 |
Basic net income per share (in dollars per share) | $ 0.95 | $ 0.97 | $ 0.92 |
Diluted net income per share (in dollars per share) | $ 0.87 | $ 0.89 | $ 0.85 |
Weighted-average shares outstanding used in computing net income per common share | |||
Basic (in shares) | 106,787 | 115,653 | 115,412 |
Diluted (in shares) | 115,966 | 125,963 | 124,194 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 101,418 | $ 112,512 | $ 106,011 |
Other comprehensive income (loss): | |||
Unrealized loss on available-for-sale investments, net of tax impact of $105, $198, and $15 | (331) | (621) | (50) |
Foreign currency translation loss, net of tax | (311) | (21) | 204 |
Total comprehensive income | $ 100,776 | $ 111,870 | $ 106,165 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized gain (loss) on available-for-sale investments, tax (expense) benefit | $ 105 | $ 198 | $ 15 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 101,418 | $ 112,512 | $ 106,011 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Stock-based compensation | 42,442 | 42,931 | 33,539 |
Amortization of interest income | 1,383 | 5,083 | 1,303 |
Depreciation and amortization of property and equipment | 782 | 1,072 | 525 |
Deferred income taxes | (33,905) | 4,346 | 14,089 |
Non-cash amortization of right-of-use asset | 2,187 | 1,995 | 1,712 |
Other | 0 | 10 | 148 |
Changes in operating assets and liabilities: | |||
Trade receivables | (3,432) | (1,427) | (6,270) |
Insurance recovery receivable related to Melucci litigation | (14,000) | 0 | 0 |
Inventory | 1,199 | 3,444 | (3,514) |
Prepaid expenses and other current assets | (6,080) | (3,597) | (653) |
Other assets | (1,975) | 1,917 | (1,552) |
Accounts payable | 4,757 | (3,597) | 3,161 |
Accrued research and development expenses | 2,131 | (1,262) | 7,227 |
Accrued and other liabilities | 2,927 | 6,479 | (2,083) |
Accrued settlement related to Melucci litigation | 14,000 | 0 | 0 |
Long-term accrued income taxes | 8,688 | 11 | 12 |
Operating lease liability | (2,199) | (2,025) | (1,685) |
Net cash provided by operating activities | 120,323 | 167,892 | 151,970 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (413) | (469) | (1,238) |
Proceeds from maturities of marketable securities | 241,152 | 398,937 | 302,089 |
Proceeds from sales of marketable securities | 0 | 50,463 | 0 |
Purchases of marketable securities | (355,066) | (312,805) | (420,114) |
Net cash (used in) provided by investing activities | (114,327) | 136,126 | (119,263) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock under our incentive award plan, net of issuance costs | 4,381 | 16,229 | 23,226 |
Cash paid to satisfy statutory withholding requirement for net settlement of cashless option exercises and vesting of restricted stock grants | (21,665) | (22,835) | (1,067) |
Net cash (used in) provided by financing activities | (17,284) | (302,591) | 12,214 |
Net (decrease) increase in cash and cash equivalents | (11,288) | 1,427 | 44,921 |
Cash and cash equivalents, at beginning of period | 77,617 | 76,190 | 31,269 |
Cash and cash equivalents, at end of period | 66,329 | 77,617 | 76,190 |
Supplemental disclosure: | |||
Income taxes paid | 39,747 | 9,104 | 10,856 |
Exercise cost of shares repurchased for net settlement of cashless option exercises | 24,388 | 15,796 | 2,079 |
Recognition of right-of-use asset and lease liability | 2,816 | 0 | 775 |
Tender Offer | |||
Cash flows from financing activities: | |||
Repurchase of common stock | 0 | (207,500) | 0 |
Stock Repurchase Program | |||
Cash flows from financing activities: | |||
Repurchase of common stock | $ 0 | $ (88,485) | $ (9,945) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Stock Repurchase Program | Tender Offer | Employees and Directors | Common Stock | Common Stock Tender Offer | Additional Paid-in Capital | Additional Paid-in Capital Employees and Directors | Treasury Stock | Treasury Stock Stock Repurchase Program | Treasury Stock Tender Offer | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) |
Beginning balance (in shares) at Dec. 31, 2019 | 114,549 | ||||||||||||
Beginning balance at Dec. 31, 2019 | $ 371,182 | $ 120 | $ 457,060 | $ (62,704) | $ 261 | $ (23,555) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock upon exercise of options (in shares) | 2,819 | ||||||||||||
Issuance of common stock under our incentive award plan | 25,305 | $ 2 | 25,303 | ||||||||||
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises (in shares) | (154) | ||||||||||||
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises | (3,146) | (3,146) | |||||||||||
Stock-based compensation | $ 33,777 | $ 33,777 | |||||||||||
Other comprehensive income (loss), net of tax | 154 | 154 | |||||||||||
Purchases of treasury stock (in shares) | (479) | ||||||||||||
Purchase of treasury stock in connection with Stock Repurchase Program | (9,945) | (9,945) | |||||||||||
Net income | 106,011 | 106,011 | |||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 116,735 | ||||||||||||
Ending balance at Dec. 31, 2020 | 523,338 | $ 122 | 516,140 | (75,795) | 415 | 82,456 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock upon exercise of options (in shares) | 4,632 | ||||||||||||
Issuance of common stock under our incentive award plan | 32,046 | $ 5 | 32,041 | ||||||||||
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises (in shares) | (1,560) | ||||||||||||
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises | (38,631) | (38,631) | |||||||||||
Stock-based compensation | 43,168 | 43,168 | |||||||||||
Other comprehensive income (loss), net of tax | (642) | (642) | |||||||||||
Purchases of treasury stock (in shares) | (3,867) | (10,000) | |||||||||||
Purchase of treasury stock in connection with Stock Repurchase Program | $ (88,485) | $ (207,500) | $ (88,485) | $ (207,500) | |||||||||
Net income | 112,512 | 112,512 | |||||||||||
Ending balance (in shares) at Dec. 31, 2021 | 105,940 | ||||||||||||
Ending balance at Dec. 31, 2021 | $ 375,806 | $ 127 | 591,349 | (410,411) | (227) | 194,968 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock upon exercise of options (in shares) | 3,681 | 3,741 | |||||||||||
Issuance of common stock under our incentive award plan | $ 28,482 | $ 4 | 28,478 | ||||||||||
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises (in shares) | (1,846) | ||||||||||||
Shares tendered to satisfy cost and statutory withholding requirements for net settlement of cashless option exercises | (45,737) | (45,737) | |||||||||||
Stock-based compensation | $ 42,515 | $ 42,515 | |||||||||||
Other comprehensive income (loss), net of tax | (642) | (642) | |||||||||||
Net income | 101,418 | 101,418 | |||||||||||
Ending balance (in shares) at Dec. 31, 2022 | 107,835 | ||||||||||||
Ending balance at Dec. 31, 2022 | $ 501,842 | $ 131 | $ 662,342 | $ (456,148) | $ (869) | $ 296,386 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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 (collectively, “Corcept,” the “Company,” “we,” “us” and “our”) is a commercial-stage pharmaceutical company engaged in the discovery and development of medications to treat severe endocrine, oncologic, metabolic and neurological disorders by modulating the effects of the hormone cortisol. In 2012, the United States Food and Drug Administration (“FDA”) approved Korlym (“mifepristone”) 300 mg tablets, as a once-daily oral medication for the 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 four structurally distinct series of selective cortisol modulators, consisting of more than 1,000 compounds. We are developing compounds from these series as potential treatments for a broad range of serious disorders. We were incorporated in the State of Delaware in May 1998. Our headquarters are located in Menlo Park, California. Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). Principles of Consolidation Our consolidated financial statements include the financial position and results of operations of Corcept Therapeutics UK Limited, our wholly owned subsidiary, which we incorporated in the United Kingdom in March 2017. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. We reevaluate our estimates and assumptions each quarter, including those related to revenue recognition, recognition and measurement of income tax assets and liabilities, inventory, allowances for doubtful accounts and other accrued liabilities, including our bonus accrual, clinical trial accruals and stock-based compensation. Fair Value Measurements We value financial instruments using assumptions we believe third-party market participants would use. When choosing which assumptions to make when determining the value of a financial instrument, we look first for quoted prices in active markets for identical instruments (“Level 1 inputs”). If no Level 1 inputs are available, we consider (i) quoted prices in non-active markets for identical instruments; (ii) active markets for similar instruments; (iii) inputs other than quoted prices for the instrument; and (iv) inputs that are not directly observable, but that can be corroborated by observable data (“Level 2 inputs”). In the absence of Level 2 inputs, we rely on unobservable inputs, such as our estimates of the assumptions market participants would use in pricing the instrument (“Level 3 inputs”). Cash and Cash Equivalents and Marketable Securities We consider highly liquid investments that will mature in three months or less from the time we purchase them to be cash equivalents. Cash equivalents are valued using Level 1 inputs, which approximate our cost. We invest the majority of our funds in marketable securities, primarily corporate notes, U.S. Treasury and government agency securities, asset-backed securities and commercial paper. We classify our marketable securities as available-for-sale securities and report them at fair value as “cash equivalents” or “marketable securities” on our consolidated balance sheet, with related unrealized gains and losses included in stockholders' equity. Realized gains and losses and permanent declines in value are included in “interest and other income (expense)” on our consolidated statements of income. Credit and Concentration Risks Our cash, cash equivalents and marketable securities are held in one financial institution. We are subject to credit risk from our cash equivalents and marketable securities. We limit our investments to U.S. Treasury obligations and high-grade corporate debt and asset-backed securities with less than a 36-month maturity at the time of purchase. These investments are diversified and do not expose us to concentrations of credit risk. We have never experienced a loss in, or lack of access to, our operating or investment accounts. We have a single-source manufacturer of mifepristone, the active pharmaceutical ingredient (“API”), in Korlym – Produits Chimiques Auxiliaires et de Synthèse SA (“PCAS,” a member of the Seqens Group). If PCAS is unable or unwilling to manufacture API in the amounts and time frames required, we may not be able to manufacture Korlym in a timely manner. In order to mitigate this risk, we have purchased and hold in inventory a reserve quantity of mifepristone. We have a concentration of risk in regard to the distribution of our product. A single specialty pharmacy, Optime Care, Inc. (“Optime”), dispenses Korlym to patients for us. Optime is an independent third party. Its unwillingness or inability to dispense Korlym to patients in a timely manner would harm our business. We sell Korlym that Optime dispenses directly to patients, with title to the medicine passing directly from us to the patient upon the patient’s receipt of the drug. Our receivables risk is spread among various third-party payers – pharmacy benefit managers, insurance companies, government programs and private charities. We monitor our exposure and record an allowance against uncollectible trade receivables as necessary. To date, we have not recorded an allowance for credit losses. Inventory and Cost of Sales Regulatory approval of product candidates is uncertain. Because product manufactured prior to regulatory approval may not be sold unless regulatory approval is obtained, we record the cost of manufacturing our product candidates as research and development expense at the time such costs are incurred. Once a product candidate is approved by the FDA, we begin capitalizing manufacturing costs. We capitalize to inventory manufacturing costs related to Korlym. We value inventory at the lower of cost or net realizable value and determine the cost of inventory we sell using the specific identification method, which approximates a first-in, first-out basis. We assess our inventory levels at each reporting period and write down inventory that is either expected to be at risk of expiration prior to sale, has a cost basis in excess of its expected net realizable value, or for which there are inventory quantities in excess of expected requirements. We destroy expired inventory and recognize the related costs as cost of sales in that period’s statement of income. Cost of sales also includes the cost of manufacturing Korlym, including materials, third-party manufacturing costs and indirect personnel and other overhead costs, based on the number of Korlym tablets for which we recognize revenue, as well as costs of stability testing, logistics and distribution. We classify inventory we do not expect to sell within 12 months of the balance sheet date as strategic inventory, a non-current asset. Net Product Revenue We sell Korlym directly to patients through a single specialty pharmacy. We also sell Korlym to a specialty distributor (“SD”), for which we recognize revenue at the time the SD receives Korlym. SD sales were less than one percent of our net revenue in each of the years ended December 31, 2022, 2021 and 2020. To determine our revenue from the sale of Korlym, we (i) identify our contract with each customer; (ii) identify the obligations of Corcept and the customer under the contract; (iii) determine the contracted transaction price; (iv) allocate the transaction price to the contract’s performance obligations, which in our case consists of delivering Korlym to the customer; and (v) recognize revenue once Korlym has been delivered, provided we deem it probable that we will collect the payment due to us. Confirmation of coverage by private or government insurance or by a third-party charity is a prerequisite for selling Korlym to a patient. To determine net product revenue, we deduct from sales the cost of our patient co-pay assistance program and our estimates of (a) government chargebacks and rebates, (b) discounts provided to our SD for prompt payment and (c) reserves for expected returns. We record these estimates at the time we recognize revenue and update them as new information becomes available. Our estimates take into account our understanding of the range of possible outcomes. If results differ from our estimates, we adjust our estimates, which changes our net product revenue and earnings. We report any changes in the period they become known, even if they concern transactions occurring in prior periods. Government Rebates: Korlym is eligible for purchase by, or qualifies for reimbursement from, Medicaid, Medicare and other government programs that are eligible for rebates on the price they pay for Korlym. To determine the appropriate amount to reserve against these rebates, we identify Korlym sold to patients covered by government-funded programs, apply the applicable government discount to these sales, then estimate the portion of total rebates we expect will be claimed. We (i) deduct this reserve from revenue in the period to which the rebates relate and (ii) include in accrued expenses on our consolidated balance sheet a current liability of an equal amount. Chargebacks: Although we sell Korlym to the SD at full price, some of the government entities to which the SD sells receive a discount. The SD recovers the full amount of any related discounts by reducing its payment to us (this reduction is called a “chargeback”). Chargebacks sometimes relate to Korlym purchased by the SD in prior periods. We deduct from our revenue in each period chargebacks claimed by the SD for Korlym it purchased in that period. We also create a reserve for chargebacks we estimate the SD will claim in future periods against Korlym it purchased in the current period but has not yet resold. We determine the amount of this reserve based on our experience with SD chargebacks and our understanding of the SD’s customer base and business practices. We deduct this reserve from revenue and include in accrued expenses on our consolidated balance sheet a current liability of equal amount. Patient Assistance Program and Charitable Support: It is our policy that no patient be denied Korlym due to inability to pay. We provide financial assistance to eligible patients whose insurance policies have high deductibles or co-payments and deduct the amount of such assistance from gross revenue. We determine the assistance we provide each patient by applying our program guidelines to that patient’s financial position and their insurance policy’s co-payment and deductible requirements for the purchase of Korlym. We donate cash to charities that help patients with financial need pay for the treatment of Cushing’s syndrome. We do not include payments from these charities in revenue, but as a deduction to selling, general and administrative expenses. We provide Korlym at no cost to uninsured patients who do not qualify for charitable support. Sales Returns: Federal law prohibits the return of Korlym sold to patients. Sales to our SD are subject to return. We deduct the amount of Korlym we estimate the SD will return from each period’s gross revenue. We base our estimates on quantitative and qualitative information including, but not limited to, historical return rates, the amount of Korlym held by the SD and projected demand. If we cannot reasonably estimate returns with respect to a particular sale, we defer recognition of revenue until we can make a reasonable estimate. To date, returns have not been significant. The following table summarizes activity in each of the product revenue allowance and reserve categories for the years ended December 31, 2022, 2021 and 2020: Chargebacks Government Rebates Total (in thousands) Balance at December 31, 2019 $ 277 $ 8,209 $ 8,486 Provision related to current period sales 519 27,698 28,217 Provision related to prior period sales (3) (631) (634) Credit or payments made during the period (630) (25,864) (26,494) Balance at December 31, 2020 163 9,412 9,575 Provision related to current period sales 394 33,709 34,103 Provision related to prior period sales (29) (1,047) (1,076) Credit or payments made during the period (478) (30,900) (31,378) Balance at December 31, 2021 50 11,174 11,224 Provision related to current period sales 557 38,745 39,302 Provision related to prior period sales 78 (68) 10 Credit or payments made during the period (455) (38,753) (39,208) Balance at December 31, 2022 $ 230 $ 11,098 $ 11,328 Leases We determine whether an arrangement contains a lease at inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To determine whether a contract is or contains a lease, we consider all relevant facts and circumstances to assess whether the customer has the right to both (i) obtain substantially all of the economic benefits from use of the identified asset and (ii) direct the use of the identified asset. We recognize right-of-use assets and lease liabilities at lease commencement. We measure lease liabilities based on the present value of lease payments over the lease term discounted by the rate equal to the rate we would pay on a collateralized loan with monthly payments and a term equal to the monthly payments and remaining term of our lease. We estimate our incremental borrowing rate based on non-tender bank quotes and an analysis of public companies with debt and credit carrying terms similar to our lease term. We do not include in the lease term options to extend or terminate the lease unless it is reasonably certain at commencement that we will exercise any such options. We account for the lease components separately from non-lease components for our operating leases. We measure right-of-use assets based on the corresponding lease liabilities adjusted for (i) prepayments made to the lessor at or before the commencement date, (ii) initial direct costs we incur, and (iii) tenant incentives under the lease. We evaluate the recoverability of our right-of-use assets for possible impairment in accordance with our long-lived assets policy. We do not recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less; rather, we recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Operating leases are reflected on our consolidated balance sheets as operating lease right-of-use assets, short-term operating lease liabilities and long-term operating lease liabilities. We begin recognizing operating lease expense when the lessor makes the underlying asset available to us. We recognize operating lease expense under our operating leases on a straight-line basis. Variable lease payments are expensed as incurred. The Company did not have any finance leases at either December 31, 2022 or 2021 . Research and Development Research and development expense includes the direct cost of discovering and screening new compounds, pre-clinical studies, clinical trials, manufacturing development, submissions to regulatory agencies and related overhead costs. We expense nonrefundable payments and the cost of technologies and materials used in research and development as we incur them. We base our accruals for discovery research, preclinical studies and clinical trials on our estimates of work completed, milestones achieved, patient enrollment and past experience with similar activities. Our estimates include assessments of information from contract research organizations and the status of our own research, development and administrative activities. Segment Reporting We determine our operating segments based on the way we organize our business, make decisions and assess performance. We have one operating segment, which is the discovery, development and commercialization of pharmaceutical products. Stock-Based Compensation We recognize stock-based compensation expense for stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), net of estimated forfeitures, on a straight-line basis over the period during which an employee is required to provide services in exchange for the award (the vesting period of the award). We estimate future forfeitures during the first quarter of each fiscal year, and revise the estimates, if necessary, in subsequent periods if actual forfeitures differ significantly from those estimates. We determine the fair value of stock options based on the value of the award at the grant date, using the Black-Scholes model. We recognize stock-based compensation expense over the applicable vesting period, net of estimated forfeitures. If actual forfeitures differ from our estimates, we adjust stock-based compensation expense accordingly. In addition, we have issued RSAs in connection with our Employee Stock Purchase Plan (“ESPP”) that vest on the condition that the participating employee hold the corresponding shares purchased under the ESPP for one year from the purchase date. The participating employee is granted one RSA for each share purchased in the ESPP. We initially measure the fair value of these RSAs based on the grant date fair value determined using the closing price of our common stock on the date the purchase of the corresponding ESPP shares is made. This fair value of the RSA is amortized over the one-year holding period. As a result of the RSA’s being reported as liability-classified awards, they must be remeasured at each reporting date until settlement. Ultimately, the compensation cost recognized for the RSA award will equal the fair value of the Company’s common stock on the date the RSA is fully vested and settled. See Note 7, Preferred Stock and Stockholders’ Equity regarding our ESPP . Income Taxes We account for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires recognition of deferred tax assets and liabilities for the expected tax consequences of our future financial and operating activities. Under ASC 740, we determine deferred tax assets and liabilities based on the temporary difference between the financial statement and tax bases of assets and liabilities using the tax rates in effect for the year in which we expect such differences to reverse. If we determine that it is more likely than not that we will not generate sufficient taxable income to realize the value of some or all of our deferred tax assets (net of our deferred tax liabilities), we establish a valuation allowance offsetting the amount we do not expect to realize. We perform this analysis each reporting period and reduce our measurement of deferred taxes if the likelihood we will realize them becomes uncertain. The deferred tax assets that we record each period depend primarily on our ability to generate future taxable income in the United States. Each period, we evaluate the need for a valuation allowance against our deferred tax assets and, if necessary, adjust the valuation allowance so that net deferred tax assets are recorded only to the extent we conclude it is more likely than not that these deferred tax assets will be realized. If our outlook for future taxable income changes significantly, our assessment of the need for, and the amount of, a valuation allowance may also change. We are also required to evaluate and quantify other sources of taxable income, such as the possible reversal of future deferred tax liabilities, should any arise, and the implementation of tax planning strategies. Evaluating and quantifying these amounts is difficult and involves significant judgment, based on all of the available evidence and assumptions about our future activities. We account for uncertain tax positions in accordance with ASC 740, which requires us to adjust our consolidated financial statements to reflect only those tax positions that are more-likely-than-not to be sustained upon review by federal or state examiners. We recognize in the consolidated financial statements the largest expected tax benefit that has a greater than 50 percent likelihood of being sustained on examination by the taxing authorities. We report interest and penalties related to unrecognized tax benefits as income tax expense. |
Significant Agreements
Significant Agreements | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Significant Agreements | Significant Agreements Commercial Agreements In August 2017, we entered into a distribution services agreement with an independent third party, Optime, to provide exclusive specialty pharmacy and patient services programs for Korlym beginning August 10, 2017. Under the terms of this agreement, Optime acts as the exclusive specialty pharmacy distributor of Korlym in the United States, subject to certain exceptions. Optime provides services related to pharmacy operations; patient intake, access and reimbursement; patient support; claims management and accounts receivable; and data and reporting. We provide Korlym to Optime, which it dispenses to patients. Optime does not purchase Korlym from us and it does not take title to the product. Title passes directly from us to the patient at the time the patient receives the medicine. The initial term of our agreement with Optime was five years. In August 2022, we amended our agreement to extend its term to September 30, 2022. In September 2022, we amended our agreement to further extend its term to March 31, 2024, unless terminated earlier by us upon 90 days’ notice. The agreement contains additional customary termination provisions, representations, warranties and covenants. Subject to certain limitations, we have agreed to indemnify Optime for certain third-party claims related to the product, and we have each agreed to indemnify the other for certain breaches of representations, warranties, covenants and other specified matters. Manufacturing Agreements Related to Korlym We purchase all of our API for Korlym from PCAS. On July 25, 2018, we amended our agreement with PCAS to add a second manufacturing site and to extend its term to December 31, 2021, with two one-year automatic renewals, unless either party provides 12 months advance written notice of its intent not to renew. The agreement was renewed through December 31, 2023. The amendment provides exclusivity between PCAS and Corcept. In the event PCAS cannot meet our requirements, we may purchase API from another supplier. As of December 31, 2022, we had non-cancelable commitments to purchase $1.5 million worth of API from PCAS over the next 12 months. We have agreements with two third-party manufacturers to produce and bottle Korlym tablets. Lease Agreement See discussion below in Note 5, Leases |
Available-for-Sale Securities a
Available-for-Sale Securities and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
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 The available-for-sale securities in our Consolidated Balance Sheets are as follows: Year Ended December 31, 2022 2021 (in thousands) Cash equivalents $ 36,380 $ 45,088 Short-term marketable securities 365,343 145,918 Long-term marketable securities 4,947 112,277 Total marketable securities $ 406,670 $ 303,283 The following table presents our available-for-sale securities grouped by asset type: Fair Value December 31, 2022 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Corporate bonds Level 2 $ 151,069 $ — $ (625) $ 150,444 $ 125,370 $ 3 $ (276) $ 125,097 Commercial paper Level 2 136,132 — — 136,132 30,963 — — 30,963 U.S. government agency securities Level 2 25,113 23 — 25,136 — — — — Asset-backed securities Level 2 185 — — 185 57,801 — (67) 57,734 U.S. Treasury securities Level 1 58,536 — (142) 58,394 44,473 — (72) 44,401 Money market funds Level 1 36,379 — — 36,379 45,088 — — 45,088 Total marketable securities $ 407,414 $ 23 $ (767) $ 406,670 $ 303,695 $ 3 $ (415) $ 303,283 We estimate the fair value of marketable securities classified as Level 1 using quoted market prices obtained from a commercial pricing service for these or identical investments. 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. We periodically review our debt securities to determine if any of our investments is impaired due to the issuer’s poor credit or other reasons. If the fair value of our investment is less than our amortized cost, we evaluate quantitative and subjective factors – including, but not limited to, the nature of security, changes in credit ratings and analyst reports concerning the security’s issuer and industry, and interest rate fluctuations and general market conditions to determine whether an allowance for credit losses is appropriate. None of our investments, including those with unrealized losses, are impaired. Unrealized losses on our investments are due to interest rate fluctuations. We do not intend to sell investments that currently have unrealized losses and it is highly unlikely that we will sell any investment before recovery of its amortized cost basis, which may be at maturity. Accordingly, we have not recorded an allowance for credit losses for these investments. We classified accrued interest on our marketable securities of $1.8 million and $1.4 million as of December 31, 2022 and 2021, respectively, as prepaid and other current assets on our consolidated balance sheets. As of December 31, 2022, all our marketable securities had original maturities of less than two years and all our marketable securities classified as short-term have maturities of less than one year. The weighted-average maturity of our holdings was four months. As of December 31, 2022, our long-term marketable securities had remaining maturities of 15 |
Composition of Certain Balance
Composition of Certain Balance Sheet Items | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Composition of Certain Balance Sheet Items | Composition of Certain Balance Sheet Items Inventory Year Ended December 31, 2022 2021 (in thousands) Work in progress $ 7,827 $ 11,450 Finished goods 9,204 6,500 Total inventory 17,031 17,950 Less strategic inventory classified as non-current (10,931) (12,962) Total inventory classified as current $ 6,100 $ 4,988 Because we rely on a single manufacturer to produce Korlym’s API, we have purchased and hold significant quantities of API, included in work in progress inventory. We classify inventory we do not expect to sell within 12 months of the balance sheet date as “Strategic inventory,” a long-term asset. Property and equipment, net of accumulated depreciation and amortization Year Ended December 31, 2022 2021 (in thousands) Furniture and equipment $ 1,235 $ 1,157 Software 1,508 1,508 Leasehold improvements 1,597 1,262 Total property and equipment 4,340 3,927 Less accumulated depreciation and amortization (3,707) (2,925) Property and equipment, net of accumulated depreciation and amortization $ 633 $ 1,002 Accrued and other liabilities Year Ended December 31, 2022 2021 (in thousands) Accrued compensation $ 15,511 $ 13,339 Government rebates 11,098 11,174 Legal fees 2,673 842 Accrued selling and marketing costs 434 1,351 Professional fees 211 150 Income taxes payable 89 513 Other 783 296 Total accrued and other liabilities $ 30,799 $ 27,665 Other assets |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases We lease our office facilities in Menlo Park, California. In March 2022, we amended our lease to extend its term from March 31, 2022 to June 30, 2023. As a result of this amendment, we recognized an additional right-of-use asset and corresponding lease liability of $2.8 million. The right-of-use asset and lease liability recognized equals the present value of the remaining payments due under our amended lease. As the operating lease for our facilities does not expressly state an interest rate, we calculated the present value of remaining lease payments using a discount rate equal to the interest rate we would pay on a collateralized loan with monthly payments and a term equal to the monthly payments and remaining term of our lease. We recognize operating lease payments as expenses using the straight-line method over the term of the lease. Operating lease expense for the years ended December 31, 2022, 2021 and 2020 was $2.3 million, $2.1 million and $1.9 million, respectively. Our right-of-use assets and related lease liabilities were as follows (in thousands, except weighted average amounts): Year Ended December 31, 2022 2021 Cash paid for operating lease liabilities $ 2,265 $ 2,104 Right-of-use assets obtained in connection with operating lease obligations $ 2,816 $ — Weighted-average remaining lease term 6 months 3 months Weighted-average discount rate 4.0 % 4.8 % As of December 31, 2022, future minimum lease payments under non-cancelable operating leases were as follows (in thousands): 2023 $ 1,157 Total operating lease payments 1,157 Less imputed interest (14) Present value of operating lease liabilities $ 1,143 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In February 2020, we purchased from our Chief Executive Officer $0.3 million of our common stock at a price of $13.54 per share, which was the last quoted price per share on the Nasdaq Capital Market on the date of purchase. We purchased the shares in order to provide him with liquidity to satisfy the tax liability arising from his net (cashless) exercise in 2019 of stock options that were about to expire. There were no other related party transactions during the years ended December 31, 2022, 2021, and 2020. |
Preferred Stock and Stockholder
Preferred Stock and Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Preferred Stock and Stockholders' Equity | Preferred Stock and Stockholders’ Equity Preferred Stock Our Board of Directors is authorized, subject to any limitations prescribed by law, without stockholder approval, to issue up to an aggregate of 10.0 million shares of preferred stock at $0.001 par value in one or more series and to fix the rights, preferences, privileges and restrictions granted to or imposed upon the preferred stock, including voting rights, dividend rights, conversion rights, redemption privileges and liquidation preferences. The rights of the holders of common stock will be subject to the rights of holders of any preferred stock that may be issued in the future. As of December 31, 2022 and 2021, we had no outstanding shares of preferred stock. Common Stock On November 3, 2020, we announced that our Board of Directors approved a program to repurchase up to $200 million of our common stock (the “Stock Repurchase Program”). The terms of this program did not require us to acquire any shares and allowed for repurchases by a variety of methods, including open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions or any combination of such methods. The Stock Repurchase Program expired by its terms on September 30, 2021. During the years ended December 31, 2021 and 2020, we purchased 3.9 million and 0.5 million shares of common stock under the Stock Repurchase Program in open market transactions at an average price of $22.88 and $21.08 per share, for an aggregate purchase price of $88.5 million and $9.7 million, respectively. Over the term of the Stock Repurchase Program, we repurchased 4.3 million shares at an average price of $22.69 per share and a total cost of $98.2 million. On November 8, 2021, we announced that our Board of Directors approved a tender offer to purchase up to 10 million shares of our common stock. The tender offer commenced on November 8, 2021 and expired on December 15, 2021. We repurchased 10 million shares through the tender offer at a price of $20.75 per share for an aggregate purchase price of $207.5 million, excluding fees and expenses relating to the tender offer. We recorded purchased shares as treasury stock on our consolidated balance sheets, at cost. It has not been determined whether purchased shares will be retired or sold. We have never declared or paid any dividends. Incentive Award Plan We have one stock option plan – the Corcept Therapeutics Incorporated 2012 Incentive Award Plan (the “2012 Plan”). In 2012, our Board of Directors and stockholders approved the 2012 Plan. Under the 2012 Plan, we can issue options, stock purchase and stock appreciation rights, and restricted stock awards to our employees, officers, directors and consultants. The 2012 Plan provides that the exercise price for incentive stock options will be no less than 100 percent of the fair value of our common stock as of the date of grant. Options granted under the 2012 Plan carry a contractual term of ten years and are expected to vest over periods ranging from one year to four years. We assume the vesting period of the options that we grant under the 2012 Plan to be equal to the option grantee’s period of service. As of December 31, 2022, we had 10.9 million shares available for future issuance under the 2012 plan. Option activity during 2022 The following table summarizes option activity under the 2012 Plan: Outstanding Options Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance at December 31, 2021 24,453 $ 13.50 Options granted 2,958 $ 20.38 Options exercised (3,681) $ 7.56 Options cancelled and forfeited (532) $ 21.79 Balance at December 31, 2022 23,198 $ 15.13 6.20 $ 152,681 Options exercisable at December 31, 2022 16,850 $ 12.74 5.38 $ 141,743 Options fully vested and expected to vest at 22,789 $ 15.00 6.16 $ 152,179 The total intrinsic value of options exercised during the years ended December 31, 2022, 2021 and 2020 was $63.4 million, $78.9 million and $28.8 million, respectively, based on the difference between the closing price of our common stock on the date of exercise and the exercise price. The total fair value of options that vested during the years ended December 31, 2022, 2021 and 2020 was $43.2 million, $40.4 million and $34.0 million, respectively. As of December 31, 2022, we had $68.7 million of unrecognized compensation expense for options outstanding, which had a weighted-average remaining vesting period of 2.36 years. RSA and RSU (collectively, “restricted stock”) activity during 2022 The following table summarizes restricted stock activity under the 2012 Plan: Outstanding Restricted Stock Number of Restricted Stock Weighted-Average Grant Date Fair Value Weighted-Average Remaining Vesting Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance at December 31, 2021 — $ — Restricted stock granted 534 $ 23.37 Restricted stock vested (34) $ 19.49 Restricted stock cancelled and forfeited (45) $ 20.87 Balance at December 31, 2022 455 $ 23.91 3.35 $ 896 As of December 31, 2022, we had $7.8 million of unrecognized compensation expense for restricted stock outstanding, which had a weighted-average remaining vesting period of 3.32 years. ESPP In February 2022, we adopted an ESPP that allows employees to set aside, by means of payroll deductions, up to ten percent of their annual cash compensation for the purchase of our common stock. Shares are issued to participating employees from the 2012 Plan on March 1st and September 1st of each year (or, if those dates fall on holidays or weekends, on the first business day thereafter) at the then-current fair market value of our stock, as determined at the close of trading on those days. Payroll deductions for participating employees began April 1, 2022, and the first purchase under the plan took place on September 1, 2022. In January 2023, we increased the number of ESPP purchase dates to occur quarterly on March 1st, June 1st, September 1st and December 1st (or, if those dates fall on holidays or weekends, on the first business day thereafter). For each purchased share, the participating employee will receive one matching share, also issued from the 2012 Plan, if certain conditions are met. There is no vesting requirement for shares issued pursuant to the ESPP purchase. The matching share will be granted in the form of a RSA that will vest on the one-year anniversary of the respective ESPP purchase date, net of any applicable tax withholding. The vesting condition on the RSA is that the participating employee hold the corresponding share purchased under the ESPP for one year from the purchase date. Shares purchased pursuant to the ESPP and any matching shares issued upon satisfaction of the one-year holding requirement may be held, sold or transferred at the employee’s discretion. As of December 31, 2022, we recorded $0.2 million of stock-based compensation related to RSAs granted in connection with our ESPP in “Accrued and other liabilities” on our consolidated balance sheet. Option Valuation Assumptions The following table summarizes the weighted-average assumptions and resultant fair value-based measurements for options granted. Year Ended December 31, 2022 2021 2020 Weighted-average assumptions for options granted: Risk-free interest rate 1.97% 0.76% 1.20% Expected term 6.4 years 6.3 years 6.0 years Expected volatility of stock price 56.5% 60.7% 59.1% Dividend rate 0% 0% 0% Weighted-average grant date fair value-based measurement $11.27 $15.06 $7.55 The expected term of options reflected in the table above is based on a formula that considers the expected service period and expected post-vesting termination behavior depending on whether the option holder is an employee, officer or director. The expected volatility of our stock used in determining the fair value-based measurement of option grants to employees, officers and directors is based on the volatility of our stock price. The volatility is based on historical data of the price for our common stock for periods of time equal to the expected term of these grants. We calculate employee stock-based compensation expense using the number of options we expect to vest, based on our estimate of the option grantees’ average length of employment, and reduced by our estimate of option forfeitures. We estimate forfeitures at the time of option grant and revise this estimate in subsequent periods if actual forfeitures differ from our estimates. Stock-based Compensation The following table summarizes our stock-based compensation by financial statement classification. Year Ended December 31, 2022 2021 2020 (in thousands) Stock-based compensation capitalized in inventory $ 280 $ 237 $ 238 Cost of sales 70 59 66 Research and development 12,800 14,106 11,222 Selling, general and administrative 29,572 28,766 22,251 Total stock-based compensation $ 42,722 $ 43,168 $ 33,777 |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per ShareWe compute our basic and diluted net income per share in conformity with the two-class method required for companies with participating shares. Under the two-class method, net income is determined by allocating net income between common stock and unvested RSAs. We compute basic net income per share by dividing our net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. We compute diluted net income per share by dividing our net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, including potentially dilutive stock options and unvested RSUs, less unvested RSAs. We use the treasury stock method to determine the number of dilutive shares of common stock resulting from stock options and unvested RSUs. The following table shows the computation of net income per share for each period: Year Ended December 31, 2022 2021 2020 (in thousands, except per share data) Numerator: Net income attributable to common stockholders $ 101,288 $ 112,512 $ 106,011 Denominator: Weighted-average shares used to compute basic net income per common share 106,787 115,653 115,412 Dilutive effect of employee stock options and unvested RSUs 9,179 10,310 8,782 Weighted-average shares used to compute diluted net income per common share 115,966 125,963 124,194 Net income per share attributable to common stockholders Basic $ 0.95 $ 0.97 $ 0.92 Diluted $ 0.87 $ 0.89 $ 0.85 We excluded from the computation of diluted net income per share, on a weighted-average basis, 7.3 million stock options and unvested RSUs outstanding during the year ended December 31, 2022, and 4.5 million and 11.2 million stock options outstanding during the years ended December 31, 2021 and 2020, respectively, because including them would have reduced dilution. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Domestic $ 116,871 $ 126,308 $ 131,634 Foreign (680) (1,302) (32) Income before income taxes $ 116,191 $ 125,006 $ 131,602 The income tax expense for the years ended December 31, 2022, 2021, and 2020 consisted of the following: Year Ended December 31, 2022 2021 2020 (in thousands) U.S. federal taxes: Current $ 39,132 $ 4,675 $ 6,094 Deferred (28,122) 5,066 14,418 Total U.S. federal taxes 11,010 9,741 20,512 State taxes: Current 9,515 3,432 5,368 Deferred (5,313) (274) 520 Total state taxes 4,202 3,158 5,888 Foreign taxes: Current 30 41 41 Deferred (469) (446) (850) Total foreign taxes (439) (405) (809) Total provision for income taxes $ 14,773 $ 12,494 $ 25,591 Beginning in 2022, the Tax Cuts and Jobs Act of 2017 eliminates the right to deduct research and development expenditures for tax purposes in the period the expenses were incurred and instead requires all U.S. and foreign research and development expenditures to be amortized over five and fifteen tax years, respectively. Congress has considered legislation that would defer the amortization requirement to later years, but as of December 31, 2022, the requirement has not been modified. Accordingly, we have capitalized our research and development expenses for tax purposes, resulting in higher cash paid for taxes as compared to prior years. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets are as follows: Year Ended December 31, 2022 2021 Deferred tax assets: (in thousands) Federal and state net operating losses $ 4,882 $ 5,377 Capitalized research and patent costs 1,911 3,412 Capitalized research expenditures 36,465 — Research credits 9,963 9,953 Stock-based compensation costs 17,956 17,831 Operating lease liability 280 130 Other 5,127 3,851 Total deferred tax assets 76,584 40,554 Valuation allowance (14,839) (12,972) Deferred tax liabilities Operating lease right-of-use asset (280) (127) Total deferred tax liabilities (280) (127) Net deferred tax assets $ 61,465 $ 27,455 Each quarter, we assess the likelihood that we will generate sufficient taxable income to use our federal and state deferred tax assets. Except for the valuation allowances that offset the value of our California net deferred tax assets, we have determined that it is more likely than not we will realize the benefit related to our deferred tax assets. To the extent we increase a valuation allowance, we will include an expense in the Consolidated Statement of Income in the period in which such determination is made. The valuation allowance increased by $1.9 million, $1.4 million and $0.2 million for the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022, we had California net operating loss carryforwards of $68.6 million, which will begin to expire in the year 2032, and net operating loss carryforwards from other states of $1.5 million, which will begin to expire in the year 2035 if not utilized. As of December 31, 2022, we also had California research and development credits of $14.1 million, which have no expiration date. The following table presents a reconciliation from the statutory federal income tax rate to the effective rate. Year Ended December 31, 2022 2021 2020 (in thousands) U.S. federal taxes at statutory rate $ 24,400 $ 26,251 $ 27,636 R&D and other credits (9,114) (7,579) (6,666) State income taxes, net of federal benefit 3,320 2,495 4,651 Non-deductible compensation 4,354 990 1,508 Stock-based compensation (7,980) (9,568) (1,551) Other (207) (95) 13 Total $ 14,773 $ 12,494 $ 25,591 We maintain liabilities for uncertain tax positions. The measurement of these liabilities involves considerable judgment and estimation and are continuously monitored by management based on the best information available, including changes in tax regulations, the outcome of relevant court cases, and other pertinent information. The aggregate annual changes in the balance of gross unrecognized tax benefits are as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Beginning balance $ 9,237 $ 7,471 $ 6,029 Increase in tax positions for prior years 53 103 158 Decreases in tax positions for prior years — — — Increase in tax positions for current year 2,135 1,663 1,284 Decrease in tax positions for current year — — — Ending balance $ 11,425 $ 9,237 $ 7,471 As of December 31, 2022, the amount of unrecognized tax benefits that would favorably impact the effective tax rate were approximately $9.3 million, and approximately $2.2 million of unrecognized tax benefits would be offset by a change in the valuation allowance. A valuation allowance is maintained on the remaining tax benefits related to California deferred tax assets and would not impact the effective tax rate. We had no or insignificant amounts of accrued interest and no accrued penalties related to unrecognized tax benefits as of December 31, 2022, 2021 and 2020. We do not expect our unrecognized tax benefits to change materially over the next 12 months. While we believe we have adequately provided for all tax positions, amounts asserted by tax authorities could be greater or less than the recorded position. Accordingly, our provisions on federal and state tax-related matters to be recorded in the future may change as revised estimates are made or the underlying matters are settled or otherwise resolved. The Company’s primary tax jurisdiction is the United States. For federal and state tax purposes, the years 1999 through 2022 remain open and subject to tax examination by the appropriate federal or state taxing authorities. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Manufacturing Agreements We have entered into a number of agreements to purchase API for the manufacturing of relacorilant, miricorilant and exicorilant. See the discussion in Note 2, Significant Agreements , for further discussion regarding the commitments under these agreements. In December 2021, to ensure we have sufficient API to meet future demand for Korlym tablets, we committed to purchase 162 kilograms of API from PCAS for a total price of $2.3 million. In January 2022, we committed to purchase an additional 75 kilograms of API from PCAS for a total price of $0.9 million. As of December 31, 2022, there remained a $1.5 million obligation in connection with this purchase commitment. Taxes As of December 31, 2022 , we have recorded non-current taxes payable of $9.1 million related to uncertain tax positions. Legal Proceedings 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 the possible outcomes of 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. Melucci Litigation and Settlement On March 14, 2019, a purported securities class action complaint was filed in the United States District Court for the Northern District of California by Nicholas Melucci (Melucci v. Corcept Therapeutics Incorporated, et al., Case No. 5:19-cv-01372-LHK) (the “Melucci litigation”). The complaint named us and certain of our executive officers as defendants asserting violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder and alleges that the defendants made false and materially misleading statements and failed to disclose adverse facts about our business, operations and prospects. The complaint asserts a putative class period extending from August 2, 2017 to February 5, 2019 and seeks unspecified monetary relief, interest and attorneys’ fees. On October 7, 2019, the Court appointed a lead plaintiff and lead counsel. The lead plaintiff’s consolidated complaint was filed on December 6, 2019. On February 8, 2023, we reached an agreement in principle (the “Proposed Settlement”) to resolve all claims in the Melucci litigation. Under the Proposed Settlement, we have agreed to make a one-time payment of $14.0 million, which will be covered in full by our insurers. In connection with the Proposed Settlement, we recorded a settlement expense of $14.0 million and corresponding insurance recovery of $14.0 million in Operating Expenses on our Consolidated Statement of Income in the fourth quarter of 2022. Accordingly, we recorded an accrued liability of $14.0 million for this settlement and a corresponding insurance recovery receivable of $14.0 million on our Consolidated Balance Sheet. The Proposed Settlement is subject to the final approval of the United States District Court for the Northern District of California. No other losses and no other provisions for a loss contingency have been recorded to date. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation Our consolidated financial statements include the financial position and results of operations of Corcept Therapeutics UK Limited, our wholly owned subsidiary, which we incorporated in the United Kingdom in March 2017. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. We reevaluate our estimates and assumptions each quarter, including those related to revenue recognition, recognition and measurement of income tax assets and liabilities, inventory, allowances for doubtful accounts and other accrued liabilities, including our bonus accrual, clinical trial accruals and stock-based compensation. |
Fair Value Measurements | Fair Value Measurements We value financial instruments using assumptions we believe third-party market participants would use. When choosing which assumptions to make when determining the value of a financial instrument, we look first for quoted prices in active markets for identical instruments (“Level 1 inputs”). If no Level 1 inputs are available, we consider (i) quoted prices in non-active markets for identical instruments; (ii) active markets for similar instruments; (iii) inputs other than quoted prices for the instrument; and (iv) inputs that are not directly observable, but that can be corroborated by observable data (“Level 2 inputs”). In the absence of Level 2 inputs, we rely on unobservable inputs, such as our estimates of the assumptions market participants would use in pricing the instrument (“Level 3 inputs”). |
Cash and Cash Equivalents and Marketable Securities | Cash and Cash Equivalents and Marketable Securities We consider highly liquid investments that will mature in three months or less from the time we purchase them to be cash equivalents. Cash equivalents are valued using Level 1 inputs, which approximate our cost. We invest the majority of our funds in marketable securities, primarily corporate notes, U.S. Treasury and government agency securities, asset-backed securities and commercial paper. We classify our marketable securities as available-for-sale securities and report them at fair value as “cash equivalents” or “marketable securities” on our consolidated balance sheet, with related unrealized gains and losses included in stockholders' equity. Realized gains and losses and permanent declines in value are included in “interest and other income (expense)” on our consolidated statements of income. |
Credit and Concentration Risks | Credit and Concentration Risks Our cash, cash equivalents and marketable securities are held in one financial institution. We are subject to credit risk from our cash equivalents and marketable securities. We limit our investments to U.S. Treasury obligations and high-grade corporate debt and asset-backed securities with less than a 36-month maturity at the time of purchase. These investments are diversified and do not expose us to concentrations of credit risk. We have never experienced a loss in, or lack of access to, our operating or investment accounts. We have a single-source manufacturer of mifepristone, the active pharmaceutical ingredient (“API”), in Korlym – Produits Chimiques Auxiliaires et de Synthèse SA (“PCAS,” a member of the Seqens Group). If PCAS is unable or unwilling to manufacture API in the amounts and time frames required, we may not be able to manufacture Korlym in a timely manner. In order to mitigate this risk, we have purchased and hold in inventory a reserve quantity of mifepristone. We have a concentration of risk in regard to the distribution of our product. A single specialty pharmacy, Optime Care, Inc. (“Optime”), dispenses Korlym to patients for us. Optime is an independent third party. Its unwillingness or inability to dispense Korlym to patients in a timely manner would harm our business. We sell Korlym that Optime dispenses directly to patients, with title to the medicine passing directly from us to the patient upon the patient’s receipt of the drug. Our receivables risk is spread among various third-party payers – pharmacy benefit managers, insurance companies, government programs and private charities. We monitor our exposure and record an allowance against uncollectible trade receivables as necessary. To date, we have not recorded an allowance for credit losses. |
Inventory and Cost of Sales | Inventory and Cost of Sales Regulatory approval of product candidates is uncertain. Because product manufactured prior to regulatory approval may not be sold unless regulatory approval is obtained, we record the cost of manufacturing our product candidates as research and development expense at the time such costs are incurred. Once a product candidate is approved by the FDA, we begin capitalizing manufacturing costs. We capitalize to inventory manufacturing costs related to Korlym. We value inventory at the lower of cost or net realizable value and determine the cost of inventory we sell using the specific identification method, which approximates a first-in, first-out basis. We assess our inventory levels at each reporting period and write down inventory that is either expected to be at risk of expiration prior to sale, has a cost basis in excess of its expected net realizable value, or for which there are inventory quantities in excess of expected requirements. We destroy expired inventory and recognize the related costs as cost of sales in that period’s statement of income. Cost of sales also includes the cost of manufacturing Korlym, including materials, third-party manufacturing costs and indirect personnel and other overhead costs, based on the number of Korlym tablets for which we recognize revenue, as well as costs of stability testing, logistics and distribution. We classify inventory we do not expect to sell within 12 months of the balance sheet date as strategic inventory, a non-current asset. |
Net Product Revenue | Net Product Revenue We sell Korlym directly to patients through a single specialty pharmacy. We also sell Korlym to a specialty distributor (“SD”), for which we recognize revenue at the time the SD receives Korlym. SD sales were less than one percent of our net revenue in each of the years ended December 31, 2022, 2021 and 2020. To determine our revenue from the sale of Korlym, we (i) identify our contract with each customer; (ii) identify the obligations of Corcept and the customer under the contract; (iii) determine the contracted transaction price; (iv) allocate the transaction price to the contract’s performance obligations, which in our case consists of delivering Korlym to the customer; and (v) recognize revenue once Korlym has been delivered, provided we deem it probable that we will collect the payment due to us. Confirmation of coverage by private or government insurance or by a third-party charity is a prerequisite for selling Korlym to a patient. To determine net product revenue, we deduct from sales the cost of our patient co-pay assistance program and our estimates of (a) government chargebacks and rebates, (b) discounts provided to our SD for prompt payment and (c) reserves for expected returns. We record these estimates at the time we recognize revenue and update them as new information becomes available. Our estimates take into account our understanding of the range of possible outcomes. If results differ from our estimates, we adjust our estimates, which changes our net product revenue and earnings. We report any changes in the period they become known, even if they concern transactions occurring in prior periods. Government Rebates: Korlym is eligible for purchase by, or qualifies for reimbursement from, Medicaid, Medicare and other government programs that are eligible for rebates on the price they pay for Korlym. To determine the appropriate amount to reserve against these rebates, we identify Korlym sold to patients covered by government-funded programs, apply the applicable government discount to these sales, then estimate the portion of total rebates we expect will be claimed. We (i) deduct this reserve from revenue in the period to which the rebates relate and (ii) include in accrued expenses on our consolidated balance sheet a current liability of an equal amount. Chargebacks: Although we sell Korlym to the SD at full price, some of the government entities to which the SD sells receive a discount. The SD recovers the full amount of any related discounts by reducing its payment to us (this reduction is called a “chargeback”). Chargebacks sometimes relate to Korlym purchased by the SD in prior periods. We deduct from our revenue in each period chargebacks claimed by the SD for Korlym it purchased in that period. We also create a reserve for chargebacks we estimate the SD will claim in future periods against Korlym it purchased in the current period but has not yet resold. We determine the amount of this reserve based on our experience with SD chargebacks and our understanding of the SD’s customer base and business practices. We deduct this reserve from revenue and include in accrued expenses on our consolidated balance sheet a current liability of equal amount. Patient Assistance Program and Charitable Support: It is our policy that no patient be denied Korlym due to inability to pay. We provide financial assistance to eligible patients whose insurance policies have high deductibles or co-payments and deduct the amount of such assistance from gross revenue. We determine the assistance we provide each patient by applying our program guidelines to that patient’s financial position and their insurance policy’s co-payment and deductible requirements for the purchase of Korlym. We donate cash to charities that help patients with financial need pay for the treatment of Cushing’s syndrome. We do not include payments from these charities in revenue, but as a deduction to selling, general and administrative expenses. We provide Korlym at no cost to uninsured patients who do not qualify for charitable support. Sales Returns: Federal law prohibits the return of Korlym sold to patients. Sales to our SD are subject to return. We deduct the amount of Korlym we estimate the SD will return from each period’s gross revenue. We base our estimates on quantitative and qualitative information including, but not limited to, historical return rates, the amount of Korlym held by the SD and projected demand. If we cannot reasonably estimate returns with respect to a particular sale, we defer recognition of revenue until we can make a reasonable estimate. To date, returns have not been significant. |
Leases | Leases We determine whether an arrangement contains a lease at inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To determine whether a contract is or contains a lease, we consider all relevant facts and circumstances to assess whether the customer has the right to both (i) obtain substantially all of the economic benefits from use of the identified asset and (ii) direct the use of the identified asset. We recognize right-of-use assets and lease liabilities at lease commencement. We measure lease liabilities based on the present value of lease payments over the lease term discounted by the rate equal to the rate we would pay on a collateralized loan with monthly payments and a term equal to the monthly payments and remaining term of our lease. We estimate our incremental borrowing rate based on non-tender bank quotes and an analysis of public companies with debt and credit carrying terms similar to our lease term. We do not include in the lease term options to extend or terminate the lease unless it is reasonably certain at commencement that we will exercise any such options. We account for the lease components separately from non-lease components for our operating leases. We measure right-of-use assets based on the corresponding lease liabilities adjusted for (i) prepayments made to the lessor at or before the commencement date, (ii) initial direct costs we incur, and (iii) tenant incentives under the lease. We evaluate the recoverability of our right-of-use assets for possible impairment in accordance with our long-lived assets policy. We do not recognize right-of-use assets or lease liabilities for leases with a term of twelve months or less; rather, we recognize the associated lease payments in the consolidated statements of income on a straight-line basis over the lease term. Operating leases are reflected on our consolidated balance sheets as operating lease right-of-use assets, short-term operating lease liabilities and long-term operating lease liabilities. We begin recognizing operating lease expense when the lessor makes the underlying asset available to us. We recognize operating lease expense under our operating leases on a straight-line basis. Variable lease payments are expensed as incurred. The Company did not have any finance leases at either December 31, 2022 or 2021 . |
Research and Development | Research and Development Research and development expense includes the direct cost of discovering and screening new compounds, pre-clinical studies, clinical trials, manufacturing development, submissions to regulatory agencies and related overhead costs. We expense nonrefundable payments and the cost of technologies and materials used in research and development as we incur them. We base our accruals for discovery research, preclinical studies and clinical trials on our estimates of work completed, milestones achieved, patient enrollment and past experience with similar activities. Our estimates include assessments of information from contract research organizations and the status of our own research, development and administrative activities. |
Segment Reporting | Segment Reporting We determine our operating segments based on the way we organize our business, make decisions and assess performance. We have one operating segment, which is the discovery, development and commercialization of pharmaceutical products. |
Stock-Based Compensation | Stock-Based Compensation We recognize stock-based compensation expense for stock options, restricted stock awards (“RSAs”) and restricted stock units (“RSUs”), net of estimated forfeitures, on a straight-line basis over the period during which an employee is required to provide services in exchange for the award (the vesting period of the award). We estimate future forfeitures during the first quarter of each fiscal year, and revise the estimates, if necessary, in subsequent periods if actual forfeitures differ significantly from those estimates. We determine the fair value of stock options based on the value of the award at the grant date, using the Black-Scholes model. We recognize stock-based compensation expense over the applicable vesting period, net of estimated forfeitures. If actual forfeitures differ from our estimates, we adjust stock-based compensation expense accordingly. In addition, we have issued RSAs in connection with our Employee Stock Purchase Plan (“ESPP”) that vest on the condition that the participating employee hold the corresponding shares purchased under the ESPP for one year from the purchase date. The participating employee is granted one RSA for each share purchased in the ESPP. We initially measure the fair value of these RSAs based on the grant date fair value determined using the closing price of our common stock on the date the purchase of the corresponding ESPP shares is made. This fair value of the RSA is amortized over the one-year holding period. As a result of the RSA’s being reported as liability-classified awards, they must be remeasured at each reporting date until settlement. Ultimately, the compensation cost recognized for the RSA award will equal the fair value of the Company’s common stock on the date the RSA is fully vested and settled. See Note 7, Preferred Stock and Stockholders’ Equity regarding our ESPP . |
Income Taxes | Income Taxes We account for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), which requires recognition of deferred tax assets and liabilities for the expected tax consequences of our future financial and operating activities. Under ASC 740, we determine deferred tax assets and liabilities based on the temporary difference between the financial statement and tax bases of assets and liabilities using the tax rates in effect for the year in which we expect such differences to reverse. If we determine that it is more likely than not that we will not generate sufficient taxable income to realize the value of some or all of our deferred tax assets (net of our deferred tax liabilities), we establish a valuation allowance offsetting the amount we do not expect to realize. We perform this analysis each reporting period and reduce our measurement of deferred taxes if the likelihood we will realize them becomes uncertain. The deferred tax assets that we record each period depend primarily on our ability to generate future taxable income in the United States. Each period, we evaluate the need for a valuation allowance against our deferred tax assets and, if necessary, adjust the valuation allowance so that net deferred tax assets are recorded only to the extent we conclude it is more likely than not that these deferred tax assets will be realized. If our outlook for future taxable income changes significantly, our assessment of the need for, and the amount of, a valuation allowance may also change. We are also required to evaluate and quantify other sources of taxable income, such as the possible reversal of future deferred tax liabilities, should any arise, and the implementation of tax planning strategies. Evaluating and quantifying these amounts is difficult and involves significant judgment, based on all of the available evidence and assumptions about our future activities. We account for uncertain tax positions in accordance with ASC 740, which requires us to adjust our consolidated financial statements to reflect only those tax positions that are more-likely-than-not to be sustained upon review by federal or state examiners. We recognize in the consolidated financial statements the largest expected tax benefit that has a greater than 50 percent likelihood of being sustained on examination by the taxing authorities. We report interest and penalties related to unrecognized tax benefits as income tax expense. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Allowance Activity Included in Trade Receivables Includes Allowance for Doubtful Accounts, Prompt Pay Cash Discounts and Chargebacks | The following table summarizes activity in each of the product revenue allowance and reserve categories for the years ended December 31, 2022, 2021 and 2020: Chargebacks Government Rebates Total (in thousands) Balance at December 31, 2019 $ 277 $ 8,209 $ 8,486 Provision related to current period sales 519 27,698 28,217 Provision related to prior period sales (3) (631) (634) Credit or payments made during the period (630) (25,864) (26,494) Balance at December 31, 2020 163 9,412 9,575 Provision related to current period sales 394 33,709 34,103 Provision related to prior period sales (29) (1,047) (1,076) Credit or payments made during the period (478) (30,900) (31,378) Balance at December 31, 2021 50 11,174 11,224 Provision related to current period sales 557 38,745 39,302 Provision related to prior period sales 78 (68) 10 Credit or payments made during the period (455) (38,753) (39,208) Balance at December 31, 2022 $ 230 $ 11,098 $ 11,328 |
Available-for-Sale Securities_2
Available-for-Sale Securities and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Available For Sale Securities And Fair Value Measurements [Abstract] | |
Summary of the Classification of Available-for-Sale Securities in Condensed Consolidated Balance Sheets | The available-for-sale securities in our Consolidated Balance Sheets are as follows: Year Ended December 31, 2022 2021 (in thousands) Cash equivalents $ 36,380 $ 45,088 Short-term marketable securities 365,343 145,918 Long-term marketable securities 4,947 112,277 Total marketable securities $ 406,670 $ 303,283 |
Schedule of Available-for-Sale Securities | The following table presents our available-for-sale securities grouped by asset type: Fair Value December 31, 2022 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (in thousands) Corporate bonds Level 2 $ 151,069 $ — $ (625) $ 150,444 $ 125,370 $ 3 $ (276) $ 125,097 Commercial paper Level 2 136,132 — — 136,132 30,963 — — 30,963 U.S. government agency securities Level 2 25,113 23 — 25,136 — — — — Asset-backed securities Level 2 185 — — 185 57,801 — (67) 57,734 U.S. Treasury securities Level 1 58,536 — (142) 58,394 44,473 — (72) 44,401 Money market funds Level 1 36,379 — — 36,379 45,088 — — 45,088 Total marketable securities $ 407,414 $ 23 $ (767) $ 406,670 $ 303,695 $ 3 $ (415) $ 303,283 |
Composition of Certain Balanc_2
Composition of Certain Balance Sheet Items (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Composition of Inventory | Inventory Year Ended December 31, 2022 2021 (in thousands) Work in progress $ 7,827 $ 11,450 Finished goods 9,204 6,500 Total inventory 17,031 17,950 Less strategic inventory classified as non-current (10,931) (12,962) Total inventory classified as current $ 6,100 $ 4,988 |
Property, Plant and Equipment | Property and equipment, net of accumulated depreciation and amortization Year Ended December 31, 2022 2021 (in thousands) Furniture and equipment $ 1,235 $ 1,157 Software 1,508 1,508 Leasehold improvements 1,597 1,262 Total property and equipment 4,340 3,927 Less accumulated depreciation and amortization (3,707) (2,925) Property and equipment, net of accumulated depreciation and amortization $ 633 $ 1,002 |
Schedule of Other Accrued Liabilities | Accrued and other liabilities Year Ended December 31, 2022 2021 (in thousands) Accrued compensation $ 15,511 $ 13,339 Government rebates 11,098 11,174 Legal fees 2,673 842 Accrued selling and marketing costs 434 1,351 Professional fees 211 150 Income taxes payable 89 513 Other 783 296 Total accrued and other liabilities $ 30,799 $ 27,665 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Information of Leases Asset and Liabilities | Our right-of-use assets and related lease liabilities were as follows (in thousands, except weighted average amounts): Year Ended December 31, 2022 2021 Cash paid for operating lease liabilities $ 2,265 $ 2,104 Right-of-use assets obtained in connection with operating lease obligations $ 2,816 $ — Weighted-average remaining lease term 6 months 3 months Weighted-average discount rate 4.0 % 4.8 % |
Schedule of Future Minimum Lease Payments under Non-Cancelable Operating Leases | As of December 31, 2022, future minimum lease payments under non-cancelable operating leases were as follows (in thousands): 2023 $ 1,157 Total operating lease payments 1,157 Less imputed interest (14) Present value of operating lease liabilities $ 1,143 |
Preferred Stock and Stockhold_2
Preferred Stock and Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of Stock Plan Activity | The following table summarizes option activity under the 2012 Plan: Outstanding Options Number of Options Weighted-Average Exercise Price Weighted-Average Remaining Contractual Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance at December 31, 2021 24,453 $ 13.50 Options granted 2,958 $ 20.38 Options exercised (3,681) $ 7.56 Options cancelled and forfeited (532) $ 21.79 Balance at December 31, 2022 23,198 $ 15.13 6.20 $ 152,681 Options exercisable at December 31, 2022 16,850 $ 12.74 5.38 $ 141,743 Options fully vested and expected to vest at 22,789 $ 15.00 6.16 $ 152,179 |
Summary of Restricted Stock Activity | The following table summarizes restricted stock activity under the 2012 Plan: Outstanding Restricted Stock Number of Restricted Stock Weighted-Average Grant Date Fair Value Weighted-Average Remaining Vesting Life Aggregate Intrinsic Value (in thousands) (in years) (in thousands) Balance at December 31, 2021 — $ — Restricted stock granted 534 $ 23.37 Restricted stock vested (34) $ 19.49 Restricted stock cancelled and forfeited (45) $ 20.87 Balance at December 31, 2022 455 $ 23.91 3.35 $ 896 |
Summary of Weighted-Average Assumptions and Resultant Fair Value-Based Measurements for Options Granted to Employees and Directors | The following table summarizes the weighted-average assumptions and resultant fair value-based measurements for options granted. Year Ended December 31, 2022 2021 2020 Weighted-average assumptions for options granted: Risk-free interest rate 1.97% 0.76% 1.20% Expected term 6.4 years 6.3 years 6.0 years Expected volatility of stock price 56.5% 60.7% 59.1% Dividend rate 0% 0% 0% Weighted-average grant date fair value-based measurement $11.27 $15.06 $7.55 |
Summary of Stock-Based Compensation | The following table summarizes our stock-based compensation by financial statement classification. Year Ended December 31, 2022 2021 2020 (in thousands) Stock-based compensation capitalized in inventory $ 280 $ 237 $ 238 Cost of sales 70 59 66 Research and development 12,800 14,106 11,222 Selling, general and administrative 29,572 28,766 22,251 Total stock-based compensation $ 42,722 $ 43,168 $ 33,777 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: Year Ended December 31, 2022 2021 2020 (in thousands, except per share data) Numerator: Net income attributable to common stockholders $ 101,288 $ 112,512 $ 106,011 Denominator: Weighted-average shares used to compute basic net income per common share 106,787 115,653 115,412 Dilutive effect of employee stock options and unvested RSUs 9,179 10,310 8,782 Weighted-average shares used to compute diluted net income per common share 115,966 125,963 124,194 Net income per share attributable to common stockholders Basic $ 0.95 $ 0.97 $ 0.92 Diluted $ 0.87 $ 0.89 $ 0.85 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The domestic and foreign components of income before income taxes were as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Domestic $ 116,871 $ 126,308 $ 131,634 Foreign (680) (1,302) (32) Income before income taxes $ 116,191 $ 125,006 $ 131,602 |
Schedule of Components of Income Tax (Benefit) | The income tax expense for the years ended December 31, 2022, 2021, and 2020 consisted of the following: Year Ended December 31, 2022 2021 2020 (in thousands) U.S. federal taxes: Current $ 39,132 $ 4,675 $ 6,094 Deferred (28,122) 5,066 14,418 Total U.S. federal taxes 11,010 9,741 20,512 State taxes: Current 9,515 3,432 5,368 Deferred (5,313) (274) 520 Total state taxes 4,202 3,158 5,888 Foreign taxes: Current 30 41 41 Deferred (469) (446) (850) Total foreign taxes (439) (405) (809) Total provision for income taxes $ 14,773 $ 12,494 $ 25,591 |
Schedule of Significant Components of Deferred Tax Assets | Significant components of our deferred tax assets are as follows: Year Ended December 31, 2022 2021 Deferred tax assets: (in thousands) Federal and state net operating losses $ 4,882 $ 5,377 Capitalized research and patent costs 1,911 3,412 Capitalized research expenditures 36,465 — Research credits 9,963 9,953 Stock-based compensation costs 17,956 17,831 Operating lease liability 280 130 Other 5,127 3,851 Total deferred tax assets 76,584 40,554 Valuation allowance (14,839) (12,972) Deferred tax liabilities Operating lease right-of-use asset (280) (127) Total deferred tax liabilities (280) (127) Net deferred tax assets $ 61,465 $ 27,455 |
Schedule of Reconciliation of Statutory Federal Income Tax Rate to Effective Rate | The following table presents a reconciliation from the statutory federal income tax rate to the effective rate. Year Ended December 31, 2022 2021 2020 (in thousands) U.S. federal taxes at statutory rate $ 24,400 $ 26,251 $ 27,636 R&D and other credits (9,114) (7,579) (6,666) State income taxes, net of federal benefit 3,320 2,495 4,651 Non-deductible compensation 4,354 990 1,508 Stock-based compensation (7,980) (9,568) (1,551) Other (207) (95) 13 Total $ 14,773 $ 12,494 $ 25,591 |
Schedule of Changes in Balance of Gross Unrecognized Tax Benefits | The aggregate annual changes in the balance of gross unrecognized tax benefits are as follows: Year Ended December 31, 2022 2021 2020 (in thousands) Beginning balance $ 9,237 $ 7,471 $ 6,029 Increase in tax positions for prior years 53 103 158 Decreases in tax positions for prior years — — — Increase in tax positions for current year 2,135 1,663 1,284 Decrease in tax positions for current year — — — Ending balance $ 11,425 $ 9,237 $ 7,471 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) compound in Thousands | 12 Months Ended | ||
Dec. 31, 2022 series compound segment | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Line Items] | |||
Number of series of selective cortisol modulators | series | 4 | ||
Number of compounds (more than) | compound | 1 | ||
Number of operating segments | segment | 1 | ||
Sales Revenue, Net | Customer Concentration Risk | Specialty Distributor | |||
Accounting Policies [Line Items] | |||
Percentage of sales to one specialty distributor, less than | 1% | 1% | 1% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Summary of Allowance Activity Included in Trade Receivables Includes Allowance for Doubtful Accounts, Prompt Pay Cash Discounts and Chargebacks) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts Receivable [Roll Forward} | |||
Balance at beginning of period | $ 11,224 | $ 9,575 | $ 8,486 |
Provision related to current period sales | 28,217 | ||
Credit or payments made during the period | (39,208) | (31,378) | (26,494) |
Provision related to current period sales | 39,302 | 34,103 | |
Provision related to prior period sales | 10 | 1,076 | 634 |
Balance at end of period | 11,328 | 11,224 | 9,575 |
Chargebacks | |||
Allowance for Doubtful Accounts Receivable [Roll Forward} | |||
Balance at beginning of period | 50 | 163 | 277 |
Provision related to current period sales | 519 | ||
Credit or payments made during the period | (455) | (478) | (630) |
Provision related to current period sales | 557 | 394 | |
Provision related to prior period sales | 78 | 29 | 3 |
Balance at end of period | 230 | 50 | 163 |
Government Rebates | |||
Allowance for Doubtful Accounts Receivable [Roll Forward} | |||
Balance at beginning of period | 11,174 | 9,412 | 8,209 |
Provision related to current period sales | 27,698 | ||
Credit or payments made during the period | (38,753) | (30,900) | (25,864) |
Provision related to current period sales | 38,745 | 33,709 | |
Provision related to prior period sales | (68) | 1,047 | 631 |
Balance at end of period | $ 11,098 | $ 11,174 | $ 9,412 |
Significant Agreements (Narrati
Significant Agreements (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 25, 2018 renewalOption | Aug. 31, 2017 | Dec. 31, 2022 USD ($) | Jan. 31, 2022 USD ($) | Dec. 02, 2021 USD ($) | |
PCAs | |||||
Debt And Credit Agreements [Line Items] | |||||
Purchase obligation | $ 1.5 | $ 0.9 | $ 2.3 | ||
Optime Care, Inc. | |||||
Debt And Credit Agreements [Line Items] | |||||
Initial agreement period | 5 years | ||||
Active Pharmaceutical Ingredient | |||||
Debt And Credit Agreements [Line Items] | |||||
Number of renewal options | renewalOption | 2 | ||||
Renewal option period | 1 year | ||||
Active Pharmaceutical Ingredient | PCAs | |||||
Debt And Credit Agreements [Line Items] | |||||
Initial agreement period | 12 months | ||||
Purchase obligation | $ 1.5 |
Available-for-Sale Securities_3
Available-for-Sale Securities and Fair Value Measurements - (Summary of the classification of available-for-sale securities in condensed consolidated balance sheets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 406,670 | $ 303,283 |
Cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 36,380 | 45,088 |
Short-term marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | 365,343 | 145,918 |
Long-term marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 4,947 | $ 112,277 |
Available-for-Sale Securities_4
Available-for-Sale Securities and Fair Value Measurements - (Schedule of Available-for-Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Estimated Fair Value | $ 406,670 | $ 303,283 |
Estimate of fair value measurement | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 407,414 | 303,695 |
Gross Unrealized Gains | 23 | 3 |
Gross Unrealized Losses | (767) | (415) |
Estimated Fair Value | 406,670 | 303,283 |
Estimate of fair value measurement | Corporate bonds | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 151,069 | 125,370 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (625) | (276) |
Estimated Fair Value | 150,444 | 125,097 |
Estimate of fair value measurement | Commercial paper | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 136,132 | 30,963 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 136,132 | 30,963 |
Estimate of fair value measurement | U.S. government agency securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,113 | 0 |
Gross Unrealized Gains | 23 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 25,136 | 0 |
Estimate of fair value measurement | Asset-backed securities | Level 2 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 185 | 57,801 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (67) |
Estimated Fair Value | 185 | 57,734 |
Estimate of fair value measurement | U.S. treasury securities | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 58,536 | 44,473 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (142) | (72) |
Estimated Fair Value | 58,394 | 44,401 |
Estimate of fair value measurement | Money market funds | Level 1 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 36,379 | 45,088 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 36,379 | $ 45,088 |
Available-for-Sale Securities_5
Available-for-Sale Securities and Fair Value Measurements - (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest receivable, current | $ 1.8 | $ 1.4 |
Maximum maturity period | 2 years | |
Maximum maturity period, short-term securities | 1 year | |
Weighted average maturity period | 4 months | |
Maximum | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Long term marketable securities, remaining maturity | 15 months |
Composition of Certain Balanc_3
Composition of Certain Balance Sheet Items (Composition of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Work in progress | $ 7,827 | $ 11,450 |
Finished goods | 9,204 | 6,500 |
Total inventory | 17,031 | 17,950 |
Less strategic inventory classified as non-current | (10,931) | (12,962) |
Total inventory classified as current | $ 6,100 | $ 4,988 |
Composition of Certain Balanc_4
Composition of Certain Balance Sheet Items - (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 4,340 | $ 3,927 |
Less accumulated depreciation and amortization | (3,707) | (2,925) |
Property and equipment, net of accumulated depreciation and amortization | 633 | 1,002 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,235 | 1,157 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 1,508 | 1,508 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Leasehold improvements | $ 1,597 | $ 1,262 |
Composition of Certain Balanc_5
Composition of Certain Balance Sheet Items (Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation | $ 15,511 | $ 13,339 |
Government rebates | 11,098 | 11,174 |
Legal fees | 2,673 | 842 |
Accrued selling and marketing costs | 434 | 1,351 |
Professional fees | 211 | 150 |
Income taxes payable | 89 | 513 |
Other | 783 | 296 |
Total accrued and other liabilities | $ 30,799 | $ 27,665 |
Composition of Certain Balanc_6
Composition of Certain Balance Sheet Items (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Balance Sheet Related Disclosures [Abstract] | ||
Deposits for clinical trials | $ 4.9 | $ 2.9 |
Leases - (Details)
Leases - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Oct. 31, 2019 | |
Lessee, Lease, Description [Line Items] | |||||
Operating lease right-of-use asset | $ 1,143 | $ 514 | |||
Present value of operating lease liabilities | 1,143 | ||||
Operating lease expense | $ 2,300 | $ 2,100 | $ 1,900 | ||
Accounting Standards Update 2016-02 | |||||
Lessee, Lease, Description [Line Items] | |||||
Operating lease right-of-use asset | $ 2,800 | ||||
Present value of operating lease liabilities | $ 2,800 |
Leases - (Right-of-use Assets a
Leases - (Right-of-use Assets and Related Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Cash paid for operating lease liabilities | $ 2,265 | $ 2,104 |
Right-of-use assets obtained in connection with operating lease obligations | $ 2,816 | $ 0 |
Weighted-average remaining lease term | 6 months | 3 months |
Weighted-average discount rate | 4% | 4.80% |
Leases - (Future Minimum Lease
Leases - (Future Minimum Lease Payments) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 1,157 |
Total operating lease payments | 1,157 |
Less imputed interest | (14) |
Present value of operating lease liabilities | $ 1,143 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended |
Feb. 29, 2020 | Dec. 31, 2020 | |
Shareholders Equity [Line Items] | ||
Aggregate purchase price | $ 9,945 | |
Chief Executive Officer | ||
Shareholders Equity [Line Items] | ||
Aggregate purchase price | $ 300 | |
Cost per share (in dollars per share) | $ 13.54 |
Preferred Stock and Stockhold_3
Preferred Stock and Stockholders' Equity (Narrative) (Details) | 1 Months Ended | 12 Months Ended | 14 Months Ended | ||||
Dec. 15, 2021 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) stockOptionPlan $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Nov. 08, 2021 USD ($) | Nov. 03, 2020 USD ($) | |
Shareholders Equity [Line Items] | |||||||
Preferred stock, shares authorized (in shares) | shares | 10,000,000 | 10,000,000 | 10,000,000 | ||||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Preferred stock, shares outstanding (in shares) | shares | 0 | 0 | 0 | ||||
Aggregate purchase price | $ 9,945,000 | ||||||
Total intrinsic value of options exercised | $ 63,400,000 | $ 78,900,000 | 28,800,000 | ||||
Fair value of options vested | 43,200,000 | 40,400,000 | $ 34,000,000 | ||||
Restricted Stock | |||||||
Shareholders Equity [Line Items] | |||||||
Non-cash stock-based compensation expense | $ 7,800,000 | ||||||
Weighted-average remaining vesting period | 3 years 3 months 25 days | ||||||
Restricted Stock Awards (RSAs) | |||||||
Shareholders Equity [Line Items] | |||||||
Non-cash stock-based compensation expense | $ 200,000 | ||||||
Employee and Director Stock Option | |||||||
Shareholders Equity [Line Items] | |||||||
Unrecognized compensation expense | $ 68,700,000 | ||||||
Unrecognized compensation expense, weighted-average vesting period | 2 years 4 months 9 days | ||||||
2012 Equity Incentive Award Plan | |||||||
Shareholders Equity [Line Items] | |||||||
Number of stock option plans | stockOptionPlan | 1 | ||||||
Exercise price as percentage of fair value of common stock, no less than | 100% | ||||||
Expiration period | 10 years | ||||||
Shares available for future issuance (in shares) | shares | 10,900,000 | ||||||
2012 Equity Incentive Award Plan | Restricted Stock | |||||||
Shareholders Equity [Line Items] | |||||||
Weighted-average remaining vesting period | 3 years 4 months 6 days | ||||||
2012 Equity Incentive Award Plan | Minimum | |||||||
Shareholders Equity [Line Items] | |||||||
Stock options, vesting period | 1 year | ||||||
2012 Equity Incentive Award Plan | Maximum | |||||||
Shareholders Equity [Line Items] | |||||||
Stock options, vesting period | 4 years | ||||||
Stock Repurchase Program | |||||||
Shareholders Equity [Line Items] | |||||||
Shares repurchased (in shares) | shares | 4,300,000 | ||||||
Cost per share (in dollars per share) | $ / shares | $ 22.69 | ||||||
Aggregate purchase price | 88,485,000 | ||||||
Treasury stock, value, acquired, cost method, net | $ 98,200,000 | ||||||
Tender Offer | |||||||
Shareholders Equity [Line Items] | |||||||
Aggregate purchase price | $ 207,500,000 | ||||||
Common Stock | Stock Repurchase Program | |||||||
Shareholders Equity [Line Items] | |||||||
Authorized amount | $ 200,000,000 | ||||||
Shares repurchased (in shares) | shares | 3,900,000 | 500,000 | |||||
Cost per share (in dollars per share) | $ / shares | $ 22.88 | $ 21.08 | |||||
Aggregate purchase price | $ 88,500,000 | $ 9,700,000 | |||||
Common Stock | Tender Offer | |||||||
Shareholders Equity [Line Items] | |||||||
Authorized amount | $ 10,000,000 | ||||||
Shares repurchased (in shares) | shares | 10,000,000 | ||||||
Cost per share (in dollars per share) | $ / shares | $ 20.75 | ||||||
Aggregate purchase price | $ 207,500,000 |
Preferred Stock and Stockhold_4
Preferred Stock and Stockholders' Equity (Summary of Stock Plan Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Number of Options | |
Beginning balance (in shares) | shares | 24,453 |
Options granted (in shares) | shares | 2,958 |
Options exercised (in shares) | shares | (3,681) |
Options canceled and forfeited (in shares) | shares | (532) |
Ending balance (in shares) | shares | 23,198 |
Options exercisable (in shares) | shares | 16,850 |
Options fully vested and expected to vest (in shares) | shares | 22,789 |
Weighted-Average Exercise Price | |
Beginning balance (in dollars per share) | $ / shares | $ 13.50 |
Options granted (in dollars per share) | $ / shares | 20.38 |
Options exercised (in dollars per share) | $ / shares | 7.56 |
Options canceled and forfeited (in dollars per share) | $ / shares | 21.79 |
Ending balance (in dollars per share) | $ / shares | 15.13 |
Options exercisable (in dollars per share) | $ / shares | 12.74 |
Options fully vested and expected to vest (in dollars per share) | $ / shares | $ 15 |
Weighted-Average Remaining Contractual Life | |
Weighted average remaining contractual life | 6 years 2 months 12 days |
Weighted average remaining contractual life, Options exercisable | 5 years 4 months 17 days |
Weighted average remaining contractual life, Options fully vested and expected to vest | 6 years 1 month 28 days |
Aggregate Intrinsic Value | |
Aggregate intrinsic value | $ | $ 152,681 |
Options exercisable | $ | 141,743 |
Options fully vested and expected to vest | $ | $ 152,179 |
Preferred Stock and Stockhold_5
Preferred Stock and Stockholders' Equity (Summary of Restricted Stock Activity) (Details) - Restricted Stock $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Additional Disclosures | |
Weighted-Average Remaining Vesting Life | 3 years 3 months 25 days |
2012 Equity Incentive Award Plan | |
Number of Restricted Stock | |
Beginning balance (in shares) | shares | 0 |
Restricted stock granted (in shares) | shares | 534 |
Restricted stock vested (in shares) | shares | (34) |
Restricted stock cancelled and forfeited (in shares) | shares | (45) |
Ending balance (in shares) | shares | 455 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 0 |
Restricted stock granted (in dollars per share) | $ / shares | 23.37 |
Restricted stock vested (in dollars per share) | $ / shares | 19.49 |
Restricted stock cancelled and forfeited (in dollars per share) | $ / shares | 20.87 |
Ending balance (in dollars per share) | $ / shares | $ 23.91 |
Additional Disclosures | |
Weighted-Average Remaining Vesting Life | 3 years 4 months 6 days |
Aggregate Intrinsic Value | $ | $ 896 |
Preferred Stock and Stockhold_6
Preferred Stock and Stockholders' Equity (Summary of Weighted-Average Assumptions and Resultant Fair Value-Based Measurements for Options Granted to Employees and Directors) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted-average assumptions for options granted: | |||
Risk-free interest rate | 1.97% | 0.76% | 1.20% |
Expected term | 6 years 4 months 24 days | 6 years 3 months 18 days | 6 years |
Expected volatility of stock price | 56.50% | 60.70% | 59.10% |
Dividend rate | 0% | 0% | 0% |
Weighted-average grant date fair value-based measurement (in dollars per share) | $ 11.27 | $ 15.06 | $ 7.55 |
Preferred Stock and Stockhold_7
Preferred Stock and Stockholders' Equity (Summary of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation capitalized in inventory | $ 280 | $ 237 | $ 238 |
Total stock-based compensation | 42,722 | 43,168 | 33,777 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 70 | 59 | 66 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | 12,800 | 14,106 | 11,222 |
Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation | $ 29,572 | $ 28,766 | $ 22,251 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Computation of Net Income) (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income attributable to common stockholders | $ 101,288 | $ 112,512 | $ 106,011 |
Denominator: | |||
Weighted-average shares used to compute basic net income per common share (in shares) | 106,787 | 115,653 | 115,412 |
Dilutive effect of employee stock options and unvested RSUs (in shares) | 9,179 | 10,310 | 8,782 |
Weighted average shares used to compute diluted net income per common share (in shares) | 115,966 | 125,963 | 124,194 |
Net income per share attributable to common stockholders | |||
Basic (in dollars per share) | $ 0.95 | $ 0.97 | $ 0.92 |
Diluted (in dollars per share) | $ 0.87 | $ 0.89 | $ 0.85 |
Net Income Per Share (Details)
Net Income Per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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) | 7.3 | ||
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) | 4.5 | 11.2 |
Income Taxes - (Schedule of Com
Income Taxes - (Schedule of Components of income Tax (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 116,871 | $ 126,308 | $ 131,634 |
Foreign | (680) | (1,302) | (32) |
Income before income taxes | $ 116,191 | $ 125,006 | $ 131,602 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
U.S. federal taxes: | |||
Current | $ 39,132 | $ 4,675 | $ 6,094 |
Deferred | (28,122) | 5,066 | 14,418 |
Total U.S. federal taxes | 11,010 | 9,741 | 20,512 |
State taxes: | |||
Current | 9,515 | 3,432 | 5,368 |
Deferred | (5,313) | (274) | 520 |
Total state taxes | 4,202 | 3,158 | 5,888 |
Foreign taxes: | |||
Current | 30 | 41 | 41 |
Deferred | (469) | (446) | (850) |
Total foreign taxes | (439) | (405) | (809) |
Total provision for income taxes | $ 14,773 | $ 12,494 | $ 25,591 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Increase in valuation allowance | $ 1,900,000 | $ 1,400,000 | $ 200,000 |
Unrecognized tax benefits that would impact effective tax rate | 9,300,000 | ||
Unrecognized tax benefits that would be offset by a change in valuation allowance | 2,200,000 | ||
Unrecognized tax benefits, accrued interest | 0 | 0 | 0 |
Unrecognized tax benefits, accrued penalties | 0 | $ 0 | $ 0 |
California State | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | 68,600,000 | ||
Research and development tax credits | 14,100,000 | ||
Other States | |||
Income Taxes [Line Items] | |||
Net operating loss carryforwards | $ 1,500,000 |
Income Taxes (Significant Compo
Income Taxes (Significant Components of Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Federal and state net operating losses | $ 4,882 | $ 5,377 |
Capitalized research and patent costs | 1,911 | 3,412 |
Capitalized research expenditures | 36,465 | 0 |
Research credits | 9,963 | 9,953 |
Stock-based compensation costs | 17,956 | 17,831 |
Operating lease liability | 280 | 130 |
Other | 5,127 | 3,851 |
Total deferred tax assets | 76,584 | 40,554 |
Valuation allowance | (14,839) | (12,972) |
Deferred tax liabilities | ||
Operating lease right-of-use asset | (280) | (127) |
Total deferred tax liabilities | (280) | (127) |
Net deferred tax assets | $ 61,465 | $ 27,455 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Statutory Federal Income Tax Rate to Effective Rate) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal taxes at statutory rate | $ 24,400 | $ 26,251 | $ 27,636 |
R&D and other credits | (9,114) | (7,579) | (6,666) |
State income taxes, net of federal benefit | 3,320 | 2,495 | 4,651 |
Non-deductible compensation | 4,354 | 990 | 1,508 |
Stock-based compensation | (7,980) | (9,568) | (1,551) |
Other | (207) | (95) | 13 |
Total provision for income taxes | $ 14,773 | $ 12,494 | $ 25,591 |
Income Taxes (Changes in Balanc
Income Taxes (Changes in Balance of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 9,237 | $ 7,471 | $ 6,029 |
Increase in tax positions for prior years | 53 | 103 | 158 |
Decreases in tax positions for prior years | 0 | 0 | 0 |
Increase in tax positions for current year | 2,135 | 1,663 | 1,284 |
Decrease in tax positions for current year | 0 | 0 | 0 |
Ending balance | $ 11,425 | $ 9,237 | $ 7,471 |
Commitments and Contingencies (
Commitments and Contingencies (Narratives) (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 08, 2023 USD ($) | Dec. 02, 2021 USD ($) kg | Jan. 31, 2022 USD ($) kg | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Commitment And Contingencies [Line Items] | |||||||
Taxes payable | $ 9,100,000 | $ 9,100,000 | |||||
Litigation settlement, expense | 14,000,000 | $ 0 | $ 0 | ||||
Insurance recoveries | 14,000,000 | 0 | $ 0 | ||||
Accrued liability, litigation | 14,000,000 | 14,000,000 | 0 | ||||
Insurance recovery receivable | 14,000,000 | 14,000,000 | $ 0 | ||||
Other losses for contingent liability | 0 | 0 | |||||
Other provisions for a loss contingency | 0 | ||||||
Melucci | Settled Litigation | |||||||
Commitment And Contingencies [Line Items] | |||||||
Litigation settlement, expense | 14,000,000 | ||||||
Insurance recoveries | 14,000,000 | ||||||
Accrued liability, litigation | 14,000,000 | 14,000,000 | |||||
Insurance recovery receivable | 14,000,000 | 14,000,000 | |||||
Subsequent event | Melucci | Settled Litigation | |||||||
Commitment And Contingencies [Line Items] | |||||||
Payment awarded to other party | $ 14,000,000 | ||||||
PCAs | |||||||
Commitment And Contingencies [Line Items] | |||||||
Short-term purchase commitment, minimum mass required | kg | 162 | 75 | |||||
Purchase obligation | $ 2,300,000 | $ 900,000 | $ 1,500,000 | $ 1,500,000 |