Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | May 03, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity File Number | 001-35092 | |
Entity Registrant Name | EXACT SCIENCES CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 02-0478229 | |
Entity Address, Address Line One | 5505 Endeavor Lane | |
Entity Address, City or Town | Madison | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53719 | |
City Area Code | 608 | |
Local Phone Number | 535-8815 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | EXAS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001124140 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 171,550,650 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 1,103,816 | $ 1,491,288 |
Marketable securities | 274,151 | 348,699 |
Accounts receivable, net | 256,135 | 233,185 |
Inventory | 89,033 | 92,265 |
Prepaid expenses and other current assets | 52,167 | 33,157 |
Total current assets | 1,775,302 | 2,198,594 |
Long-term Assets: | ||
Property, plant and equipment, net | 482,736 | 451,986 |
Operating lease right-of-use assets | 161,687 | 125,947 |
Goodwill | 2,183,915 | 1,237,672 |
Intangible assets, net | 2,073,932 | 847,123 |
Other long-term assets, net | 56,945 | 63,770 |
Total assets | 6,734,517 | 4,925,092 |
Current Liabilities: | ||
Accounts payable | 34,704 | 35,709 |
Accrued liabilities | 214,143 | 233,604 |
Operating lease liabilities, current portion | 15,290 | 11,483 |
Debt, current portion | 1,319 | 1,319 |
Convertible notes, net, current portion | 312,832 | 312,716 |
Other current liabilities | 50,626 | 38,265 |
Total current liabilities | 628,914 | 633,096 |
Long-term Liabilities: | ||
Convertible notes, net, less current portion | 1,862,992 | 1,861,685 |
Long-term debt, less current portion | 22,041 | 22,342 |
Other long-term liabilities | 414,195 | 51,342 |
Operating lease liabilities, less current portion | 157,380 | 121,075 |
Total liabilities | 3,085,522 | 2,689,540 |
Commitments and contingencies (Note 14) | ||
Stockholders’ Equity: | ||
Preferred stock, $0.01 par value Authorized—5,000,000 shares issued and outstanding—no shares at March 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.01 par value Authorized—400,000,000 shares issued and outstanding—171,293,312 and 159,423,410 shares at March 31, 2021 and December 31, 2020 | 1,714 | 1,595 |
Additional paid-in capital | 5,723,977 | 4,279,327 |
Accumulated other comprehensive income | 364 | 526 |
Accumulated deficit | (2,077,060) | (2,045,896) |
Total stockholders’ equity | 3,648,995 | 2,235,552 |
Total liabilities and stockholders’ equity | $ 6,734,517 | $ 4,925,092 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, Authorized shares (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, Issued shares (in shares) | 0 | 0 |
Preferred stock, outstanding shares (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized shares (in shares) | 400,000,000 | 400,000,000 |
Common stock, Issued shares (in shares) | 171,293,312 | 159,423,410 |
Common stock, outstanding shares (in shares) | 171,293,312 | 159,423,410 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 402,077 | $ 347,821 |
Operating expenses | ||
Cost of sales (exclusive of amortization of acquired intangible assets) | 109,993 | 81,606 |
Research and development | 115,567 | 43,509 |
Sales and marketing | 186,141 | 167,749 |
General and administrative | 267,727 | 113,991 |
Amortization of acquired intangible assets | 23,190 | 23,339 |
Total operating expenses | 702,618 | 430,194 |
Loss from operations | (300,541) | (82,373) |
Other income (expense) | ||
Investment income, net | 31,188 | 97 |
Interest expense | (4,616) | (54,604) |
Total other income (expense) | 26,572 | (54,507) |
Net loss before tax | (273,969) | (136,880) |
Income tax benefit | 242,805 | 2,237 |
Net loss | $ (31,164) | $ (134,643) |
Net loss per share - basic and diluted (in usd per share) | $ (0.18) | $ (0.91) |
Weighted average common shares outstanding - basic and diluted (in shares) | 169,434 | 148,151 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (31,164) | $ (134,643) |
Other comprehensive income (loss), before tax: | ||
Unrealized gain on available-for-sale investments | (332) | (1,642) |
Foreign currency adjustment | 0 | 25 |
Comprehensive loss, before tax | (31,496) | (136,260) |
Income tax expense related to items of other comprehensive loss | 170 | 0 |
Comprehensive loss, net of tax | $ (31,326) | $ (136,260) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning Balance at Dec. 31, 2019 | $ 1,957,548 | $ 1,477 | $ 3,178,552 | $ (100) | $ (1,222,381) |
Balance (in shares) at Dec. 31, 2019 | 147,625,696 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Exercise of common stock options | 4,300 | $ 2 | 4,298 | ||
Exercise of common stock options (in shares) | 160,286 | ||||
Issuance of common stock to fund the Company's 401(k) match | 12,007 | $ 1 | 12,006 | ||
Issuance of common stock to fund the Company's 401(k) match (in shares) | 136,559 | ||||
Compensation expense related to issuance of stock options and restricted stock awards | 29,560 | $ 11 | 29,549 | ||
Compensation expense related to issuance of stock options and restricted stock awards (in shares) | 1,141,376 | ||||
Issuance of common stock for business combination and asset acquisition | $ 28,597 | $ 4 | 28,593 | ||
Issuance of common stock for business combinations and asset acquisition (in shares) | 382,947 | 382,947 | |||
Net loss | $ (134,643) | (134,643) | |||
Accumulated other comprehensive loss | (1,617) | (1,617) | |||
Ending Balance at Mar. 31, 2020 | 1,895,752 | $ 1,495 | 3,252,998 | (1,717) | (1,357,024) |
Balance (in shares) at Mar. 31, 2020 | 149,446,864 | ||||
Beginning Balance at Dec. 31, 2020 | $ 2,235,552 | $ 1,595 | 4,279,327 | 526 | (2,045,896) |
Balance (in shares) at Dec. 31, 2020 | 159,423,410 | 159,423,410 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Settlement of convertible notes, net of tax (in shares) | 344 | ||||
Settlement of convertible notes, net of tax | $ 26 | 26 | |||
Exercise of common stock options | 8,759 | $ 10 | 8,749 | ||
Exercise of common stock options (in shares) | 967,107 | ||||
Issuance of common stock to fund the Company's 401(k) match | 22,934 | $ 2 | 22,932 | ||
Issuance of common stock to fund the Company's 401(k) match (in shares) | 162,606 | ||||
Compensation expense related to issuance of stock options and restricted stock awards | 158,252 | $ 13 | 158,239 | ||
Compensation expense related to issuance of stock options and restricted stock awards (in shares) | 1,355,435 | ||||
Issuance of common stock for business combination and asset acquisition | $ 1,254,798 | $ 94 | 1,254,704 | ||
Issuance of common stock for business combinations and asset acquisition (in shares) | 9,384,410 | 9,384,410 | |||
Net loss | $ (31,164) | (31,164) | |||
Accumulated other comprehensive loss | (162) | (162) | |||
Ending Balance at Mar. 31, 2021 | $ 3,648,995 | $ 1,714 | $ 5,723,977 | $ 364 | $ (2,077,060) |
Balance (in shares) at Mar. 31, 2021 | 171,293,312 | 171,293,312 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders Equity (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Statement of Financial Position [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (31,164) | $ (134,643) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 20,508 | 16,006 |
Loss on disposal of property, plant and equipment | 337 | 272 |
Unrealized gain on equity investments | (7) | 669 |
Deferred tax benefit | (243,130) | (2,423) |
Stock-based compensation | 77,292 | 29,560 |
Post-combination expense for acceleration of unvested equity | 80,960 | 0 |
Realized gain on preferred stock investment | (30,500) | 0 |
Loss on settlement of convertible notes | 0 | 50,819 |
Amortization of deferred financing costs, convertible note debt discount and issuance costs, and other liabilities | 1,633 | (64) |
Amortization of premium on short-term investments | 439 | 53 |
Amortization of acquired intangible assets | 23,190 | 23,339 |
Asset acquisition IPR&D expense | 52,263 | 0 |
Changes in fair value | 2,879 | 0 |
Non-cash lease expense | 5,740 | 3,329 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (22,950) | (6,322) |
Inventory, net | 3,232 | (7,469) |
Operating lease liabilities | (3,120) | (1,942) |
Accounts payable and accrued liabilities | (15,862) | (18,296) |
Other assets and liabilities | 1,033 | (2,715) |
Net cash used in operating activities | (77,227) | (49,827) |
Cash flows from investing activities: | ||
Purchases of marketable securities | (162,498) | (425,168) |
Maturities and sales of marketable securities | 236,295 | 39,143 |
Purchases of property, plant and equipment | (12,920) | (13,048) |
Business combination, net of cash acquired | (343,248) | (6,807) |
Asset acquisition | (25,000) | 0 |
Investments in privately held companies | (10,000) | 0 |
Other investing activities | (141) | 33 |
Net cash used in investing activities | (317,512) | (405,847) |
Cash flows from financing activities: | ||
Proceeds from issuance of convertible notes, net | 0 | 1,125,547 |
Proceeds from exercise of common stock options | 8,759 | 4,300 |
Payments on settlement of convertible notes | 0 | (150,054) |
Other financing activities | (1,514) | (313) |
Net cash provided by financing activities | 7,245 | 979,480 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (387,494) | 523,806 |
Cash and cash equivalents, beginning of period | 1,491,594 | 177,528 |
Cash and cash equivalents, end of period | 1,104,100 | 701,334 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Property, plant and equipment acquired but not paid | 8,697 | 13,631 |
Unrealized gain on available-for-sale investments, before tax | (332) | (1,642) |
Issuance of 162,606 and 136,559 shares of common stock to fund the Company’s 401(k) matching contribution for 2020 and 2019, respectively | 22,934 | 12,007 |
Issuance of common stock for business combination and asset acquisition | 1,254,798 | 28,597 |
Business combination contingent consideration liability | 331,348 | 0 |
Supplemental disclosure of cash flow information: | ||
Interest paid | $ 5,274 | $ 3,725 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows (Parenthetical) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Issuance of shares of common stock to fund the Company's 401(k) matching contribution (in shares) | 162,606 | 136,559 |
Issuance of common stock for business combinations and asset acquisition (in shares) | 9,384,410 | 382,947 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Exact Sciences Corporation (together with its subsidiaries, “Exact,” or the “Company”) was incorporated in February 1995. Exact is a leading global cancer diagnostics company. It has developed some of the most impactful brands in cancer screening and diagnostics, including Cologuard® and Oncotype DX®. Exact is currently working on the development of additional tests, with the goal of bringing new, innovative cancer tests to patients throughout the world. Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements, which include the accounts of Exact Sciences Corporation and those of its wholly owned subsidiaries and variable interest entities, are unaudited and have been prepared on a basis substantially consistent with the Company’s audited financial statements and notes as of and for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K (the “2020 Form 10-K”). All intercompany transactions and balances have been eliminated upon consolidation. These condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and follow the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair statement of its financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2020 has been derived from audited financial statements, but does not contain all of the footnote disclosures from the 2020 Form 10-K. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. The statements should be read in conjunction with the audited financial statements and related notes included in the 2020 Form 10-K. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical accounting policies are those that affect the Company’s financial statements materially and involve difficult, subjective or complex judgments by management, and actual results could differ from those estimates. These estimates include revenue recognition, valuation of intangible assets and goodwill, and accounting for income taxes among others. The Company’s critical accounting policies and estimates are explained further in the notes to the condensed consolidated financial statements in this Quarterly Report and the 2020 Form 10-K. The spread of the coronavirus (“COVID-19”) has affected many segments of the global economy, including the cancer screening and diagnostics industry. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of March 31, 2021 and through the date of the filing of this Quarterly Report on Form 10-Q. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, equity investments, software, and the carrying value of the goodwill and other long-lived assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to the Company’s consolidated financial statements in future reporting periods. The pandemic and related precautionary measures began to materially disrupt the Company's operations in March 2020 and may continue to disrupt the business for an unknown period of time. As a result, the pandemic impacted the Company's revenues and operating results for the three months ended March 31, 2021. The ultimate impact of COVID-19 depends on factors beyond the Company’s knowledge or control, including the duration and severity of the outbreak, as well as third-party actions taken to contain its spread and mitigate its public health effects. As a result, the Company is unable to estimate the extent to which COVID-19 will negatively impact its financial results or liquidity. Significant Accounting Policies During the first quarter of 2021, there were no changes to the Company’s significant accounting policies as described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, except as described in the Recently Adopted Accounting Pronouncements section below. Reclassifications Certain prior year amounts have been reclassified to conform to the current year presentation in the condensed consolidated financial statements and accompanying notes to the condensed consolidated financial statements. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In August 2020, The Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2020-06, Debt – Debt with Conversion and Other Options (subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) . This update simplifies the accounting for convertible debt instruments by removing the beneficial conversion and cash conversion separation models for convertible instruments. Under the update, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives or that do not result in substantial premiums accounted for as paid-in capital. The update also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will no longer be available. This standard may be adopted through either a modified retrospective method of transition or a full retrospective method of transition. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted the standard on January 1, 2021 through application of the full retrospective method of transition. This method of adoption was applied to enhance comparability between the periods presented in the Company’s financial statements. The Company applied the standard to convertible notes outstanding as of the date of the first offering of the Company’s outstanding convertible notes as discussed in Note 9. The Company’s convertible debt instruments will be accounted for as a single liability measured at its amortized cost. The notes are no longer bifurcated between debt and equity, rather accounted for entirely as debt at face value net of any discount or premium and issuance costs. Interest expense is comprised of (1) cash interest payments, (2) amortization of any debt discounts or premiums based on the original offering, and (3) amortization of any debt issuance costs. Gain or loss on extinguishment of convertible notes is calculated as the difference between the (i) fair value of the consideration transferred and (ii) the sum of the carrying value of the debt at the time of repurchase. As of January 1, 2019, the cumulative effect of adoption resulted in a decrease in additional-paid-in-capital of $260.2 million, a decrease in accumulated deficit of $26.6 million, and an increase to net deferred tax assets of $55.7 million offset by a corresponding increase of $55.7 million in the valuation allowance. As of January 1, 2020, the cumulative effect of adoption resulted in a decrease in additional-paid-in-capital of $227.8 million, an increase in accumulated deficit of $102.6 million, and an increase to the net deferred tax assets of $83.2 million offset by a corresponding increase of $74.7 million in the valuation allowance resulting in a net decrease of $8.5 million in recorded deferred tax liabilities. As of December 31, 2020, the cumulative effect of adoption resulted in an increase in the net carrying amount of convertible notes, net, current portion of $57.3 million and convertible notes, net, less current portion of $540.9 million, a decrease in additional-paid-in-capital of $510.3 million and other long-term liabilities of $10.2 million, an increase in accumulated deficit of $77.7 million, and an increase to net deferred tax assets of $146.0 million offset by a corresponding increase of $135.8 million in the valuation allowance resulting in a net decrease of $10.2 million in recorded deferred tax liabilities. For the three months ended March 31, 2020, interest expense in the condensed consolidated statement of operations increased by $29.4 million as a result of a decrease in cash interest and amortization of debt discounts, premiums, and issuance costs of $13.4 million, which was offset by an increase in loss on extinguishment of $42.8 million in connection with the extinguishment of $100.0 million face value of 2025 Notes, income tax benefit increased by $0.5 million and net loss per share, basic and diluted, reported for the three months ended March 31, 2020 increased by $0.20 per share. Net Loss Per Share Basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. Basic and diluted net loss per share is the same because all outstanding common stock equivalents have been excluded, as they are anti-dilutive as a result of the Company’s losses. The following potentially issuable common shares were not included in the computation of diluted net loss per share because they would have an anti-dilutive effect due to net losses for each period: March 31, (In thousands) 2021 2020 Shares issuable in connection with acquisitions 157 157 Shares issuable upon exercise of stock options 2,633 2,841 Shares issuable upon the release of restricted stock awards 4,433 4,224 Shares issuable upon the release of performance share units 846 599 Shares issuable upon conversion of convertible notes 20,309 20,309 28,378 28,130 |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company’s revenue is primarily generated by its laboratory testing services utilizing its Cologuard, Oncotype DX, and COVID-19 tests. The services are completed upon release of a patient’s test result to the ordering healthcare provider. Disaggregation of Revenue The following table presents the Company’s revenues disaggregated by revenue source: Three Months Ended March 31, (In thousands) 2021 2020 Screening Medicare Parts B & C $ 101,559 $ 98,159 Commercial 127,874 109,369 Other 10,895 11,924 Total Screening 240,328 219,452 Precision Oncology Medicare Parts B & C $ 43,116 $ 47,034 Commercial 53,255 54,416 International 26,056 20,936 Other 6,980 5,983 Total Precision Oncology 129,407 128,369 COVID-19 Testing $ 32,342 $ — Total $ 402,077 $ 347,821 Screening revenue primarily includes laboratory service revenue from the Cologuard test while Precision Oncology revenue primarily includes laboratory service revenue from global Oncotype DX products. Revenue recognized from changes in transaction prices was $1.7 million and $5.4 million for the three months ended March 31, 2021 and 2020, respectively. Deferred revenue balances are reported in other current liabilities in the Company’s condensed consolidated balance sheets and were $39.8 million and $25.0 million as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021, $38.5 million of the Company’s deferred revenue balance is a result of the billing terms pursuant to the existing COVID-19 laboratory service agreements (“LSAs”) with customers. Revenue recognized for the three months ended March 31, 2021 and 2020, which was included in the deferred revenue balance at the beginning of each period was $14.0 million and $0.2 million, respectively. Of the $14.0 million of revenue recognized for the three months ended March 31, 2021, which was included in the deferred revenue balance at the beginning of the period, $13.8 million related to COVID-19 testing. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 3 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
MARKETABLE SECURITIES | MARKETABLE SECURITIES The following table sets forth the Company’s cash, cash equivalents, restricted cash, and marketable securities at March 31, 2021 and December 31, 2020: (In thousands) March 31, 2021 December 31, 2020 Cash, cash equivalents, and restricted cash Cash and money market $ 770,267 $ 901,294 Cash equivalents 333,549 589,994 Restricted cash 284 306 Total cash, cash equivalents, and restricted cash 1,104,100 1,491,594 Marketable securities Available-for-sale debt securities 274,151 347,178 Equity securities — 1,521 Total marketable securities 274,151 348,699 Total cash and cash equivalents, restricted cash and marketable securities $ 1,378,251 $ 1,840,293 Available-for-sale debt securities at March 31, 2021 consisted of the following: (In thousands) Amortized Cost Gains in Accumulated Losses in Accumulated Estimated Fair Cash equivalents U.S. government agency securities $ 318,194 $ 5 $ — $ 318,199 Certificates of deposit 15,350 — — 15,350 Total cash equivalents 333,544 5 — 333,549 Marketable securities Corporate bonds 143,885 337 (21) 144,201 U.S. government agency securities 7,105 36 — 7,141 Certificates of deposit 90,360 2 (3) 90,359 Commercial paper 27,992 1 (1) 27,992 Asset backed securities 4,450 8 — 4,458 Total marketable securities 273,792 384 (25) 274,151 Total available-for-sale securities $ 607,336 $ 389 $ (25) $ 607,700 ______________ (1) Gains and losses in accumulated other comprehensive income (loss) (“AOCI”) are reported before tax impact. Available-for-sale debt securities at December 31, 2020 consisted of the following: (In thousands) Amortized Cost Gains in Accumulated Losses in Accumulated Estimated Fair Value Cash equivalents U.S. government agency securities $ 589,986 $ 8 $ — $ 589,994 Total cash equivalents 589,986 8 — 589,994 Marketable securities U.S. government agency securities 207,119 52 — 207,171 Asset backed securities 7,070 24 — 7,094 Corporate bonds 132,301 612 — 132,913 Total marketable securities 346,490 688 — 347,178 Total available-for-sale securities $ 936,476 $ 696 $ — $ 937,172 ______________ (1) Gains and losses in AOCI are reported before tax impact. The following table summarizes contractual underlying maturities of the Company’s available-for-sale debt securities at March 31, 2021: Due one year or less Due after one year through four years (In thousands) Cost Fair Value Cost Fair Value Cash equivalents U.S. government agency securities $ 318,194 $ 318,199 $ — $ — Certificates of deposit 15,350 15,350 — — Total cash equivalents 333,544 333,549 — — Marketable securities U.S. government agency securities 7,105 7,141 — — Corporate bonds 119,523 119,857 24,362 24,344 Certificates of deposit 90,360 90,359 — — Asset backed securities — — 4,450 4,458 Commercial paper 27,992 27,992 — — Total marketable securities 244,980 245,349 28,812 28,802 Total $ 578,524 $ 578,898 $ 28,812 $ 28,802 The following table summarizes the gross unrealized losses and fair values of available-for-sale debt securities in an unrealized loss position as of March 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less than one year One year or greater Total (In thousands) Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Cash equivalents Certificates of deposit $ 11,000 $ — $ — $ — $ 11,000 $ — Total cash equivalents 11,000 — — — 11,000 — Marketable securities Corporate bonds 53,635 (21) — — 53,635 (21) Certificates of deposit 32,347 (3) — — 32,347 (3) Commercial paper 9,999 (1) — — 9,999 (1) Total marketable securities 95,981 (25) — — 95,981 (25) Total available-for-sale securities $ 106,981 $ (25) $ — $ — $ 106,981 $ (25) The Company evaluates investments, including investments in privately-held companies, that are in an unrealized loss position for impairment as a result of credit loss. It was determined that no credit losses exist as of March 31, 2021 and December 31, 2020 because the change in market value for those securities in an unrealized loss position has resulted from fluctuating interest rates rather than a deterioration of the credit worthiness of the issuers. The realized gain recorded on available-for-sale debt securities was not material to the condensed consolidated statements of income for the three months ended March 31, 2021 and 2020. The Company recorded a loss of $16,000 and $0.7 million from its equity securities for the three months ended March 31, 2021 and 2020, respectively. The gains and losses recorded are included in investment income, net in the Company’s condensed consolidated statements of operations. |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY Inventory consisted of the following: (In thousands) March 31, December 31, Raw materials $ 40,858 $ 43,083 Semi-finished and finished goods 48,175 49,182 Total inventory $ 89,033 $ 92,265 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The estimated useful lives of property, plant and equipment are as follows: (In thousands) Estimated March 31, December 31, Property, plant and equipment Land n/a $ 4,466 $ 4,466 Leasehold and building improvements (1) 138,342 117,865 Land improvements 15 years 4,910 4,864 Buildings 30 - 40 years 200,997 200,980 Computer equipment and computer software 3 years 84,902 75,417 Laboratory equipment 3 - 10 years 156,001 142,110 Furniture and fixtures 3 - 10 years 26,810 24,968 Assets under construction n/a 22,948 18,854 Property, plant and equipment, at cost 639,376 589,524 Accumulated depreciation (156,640) (137,538) Property, plant and equipment, net $ 482,736 $ 451,986 ______________ (1) Lesser of remaining lease term, building life, or estimated useful life. Depreciation expense for the three months ended March 31, 2021 and 2020 was $20.5 million and $16.0 million, respectively. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS AND GOODWILL | INTANGIBLE ASSETS AND GOODWILL Intangible Assets The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of March 31, 2021: (In thousands) Weighted Average Cost Accumulated Amortization Net Balance at March 31, 2021 Finite-lived intangible assets Trade name 14.6 $ 100,700 $ (8,832) $ 91,868 Customer relationships 12.5 2,700 (449) 2,251 Patents 3.5 10,441 (5,758) 4,683 Acquired developed technology 8.7 814,171 (113,525) 700,646 Supply agreements 6.2 30,000 (5,516) 24,484 Total finite-lived intangible assets 958,012 (134,080) 823,932 In-process research and development n/a 1,250,000 — 1,250,000 Total intangible assets $ 2,208,012 $ (134,080) $ 2,073,932 The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2020: (In thousands) Weighted Average Cost Accumulated Amortization Net Balance at December 31, 2020 Finite-lived intangible assets Trade name 14.9 $ 100,700 $ (7,258) $ 93,442 Customer relationships 12.8 2,700 (404) 2,296 Patents 3.7 10,441 (5,422) 5,019 Acquired developed technology 9.0 814,171 (93,278) 720,893 Supply agreements 6.5 30,000 (4,527) 25,473 Total intangible assets $ 958,012 $ (110,889) $ 847,123 As of March 31, 2021, the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows: (In thousands) 2021 $ 69,572 2022 92,758 2023 92,755 2024 92,421 2025 91,373 Thereafter 385,053 $ 823,932 The Company’s acquired intangible assets are being amortized on a straight-line basis over the estimated useful life. There were no impairment losses for the three months ended March 31, 2021 and 2020. Goodwill The change in the carrying amount of goodwill for the periods ended March 31, 2021 and December 31, 2020 is as follows: (In thousands) Balance, January 1, 2020 $ 1,203,197 Paradigm & Viomics acquisition 30,431 Genomic Health acquisition adjustment (1) 4,044 Balance, December 31, 2020 $ 1,237,672 Thrive acquisition 946,243 Balance, March 31, 2021 $ 2,183,915 ______________ (1) The Company recognized a measurement period adjustment to goodwill related to an increase in Genomic Health’s pre-acquisition deferred tax liability due to finalization of certain income-tax related items. There were no impairment losses for the three months ended March 31, 2021 and 2020. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The three levels of the fair value hierarchy established are as follows: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. Level 3 Unobservable inputs that reflect the Company’s assumptions about the assumptions that market participants would use in pricing the asset or liability. Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available. The following table presents the Company’s fair value measurements as of March 31, 2021 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall. (In thousands) Fair Value at March 31, Quoted Prices Significant Significant Cash, cash equivalents, and restricted cash Cash and money market $ 770,267 $ 770,267 $ — $ — U.S. government agency securities 318,199 — 318,199 — Certificates of deposit 15,350 — 15,350 — Restricted cash 284 284 — — Marketable securities Corporate bonds 144,201 — 144,201 — Certificates of deposit 90,359 — 90,359 — Commercial paper 27,992 — 27,992 — U.S. government agency securities 7,141 — 7,141 — Asset backed securities 4,458 — 4,458 — Liabilities Contingent consideration (336,540) — — (336,540) Total $ 1,041,711 $ 770,551 $ 607,700 $ (336,540) The following table presents the Company’s fair value measurements as of December 31, 2020 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall. (In thousands) Fair Value at December 31, Quoted Prices Significant Significant Cash and cash equivalents Cash and money market $ 901,294 $ 901,294 $ — $ — U.S. government agency securities 589,994 — 589,994 — Restricted cash 306 306 — — Marketable securities U.S. government agency securities 207,171 — 207,171 — Corporate bonds 132,913 — 132,913 — Asset backed securities 7,094 — 7,094 — Equity securities 1,521 1,521 — — Liabilities Contingent consideration (2,477) — — (2,477) Total $ 1,837,816 $ 903,121 $ 937,172 $ (2,477) There have been no changes in valuation techniques or transfers between fair value measurement levels during the periods ended March 31, 2021 and December 31, 2020. The fair value of Level 2 instruments classified as cash equivalents and marketable debt securities are valued using a third-party pricing agency where the valuation is based on observable inputs including pricing for similar assets and other observable market factors. The Company’s marketable equity security investment in Biocartis held as of December 31, 2020 was classified as a Level 1 instrument prior to being sold in the first quarter of 2021. Contingent Consideration Certain of the Company’s business combinations involve potential payment of future consideration that is contingent upon the achievement of certain regulatory and product revenue milestones being achieved. A liability is recorded for the estimated fair value of the contingent consideration on the acquisition date. The fair value of the contingent consideration is remeasured at each reporting period, and the change in fair value is recognized within general and administrative expenses on the Company’s condensed consolidated statements of operations. The fair value of contingent consideration as of March 31, 2021 and December 31, 2020 was $336.5 million and $2.5 million, respectively, which was recorded in other long-term liabilities in the condensed consolidated balance sheets. The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Three months ended (In thousands) March 31, 2021 March 31, 2020 Beginning balance, January 1, $ 2,477 $ 2,879 Purchase price contingent consideration (1) 331,348 — Changes in fair value 2,879 — Payments (164) (140) Ending balance, March 31, $ 336,540 $ 2,739 ______________ (1) The increase in the contingent consideration liability during the three months ended March 31, 2021 is due to the contingent consideration associated with the acquisition of Thrive Earlier Detection Corporation (“Thrive”). Refer to Note 17 for further information. This fair value measurement of contingent consideration is categorized as a Level 3 liability, as the measurement amount is based primarily on significant inputs not observable in the market. The fair value of the contingent consideration liability recorded relating to the U.S. Food and Drug Administration (“FDA”) approval and Centers for Medicare & Medicaid Services (“CMS”) coverage milestones associated with the Thrive acquisition was $334.2 million as of March 31, 2021. The Company evaluates the fair value of the Thrive related expected contingent consideration and the corresponding liability using the probability-weighted scenario based discounted cash flow model, which is consistent with the initial measurement of the expected contingent consideration liability. Probabilities of success are applied to each potential scenario and the resulting values are discounted using a rate that considers present-value factor. The passage of time in addition to changes in projected milestone achievement timing, present-value factor, the degree of achievement if applicable, and probabilities of success may result in adjustments to the fair value measurement. The fair value measurements of contingent consideration for which a liability is recorded include significant unobservable inputs. As of March 31, 2021, the fair value of the contingent consideration liability was determined using a probability of success of 90.0% and a present-value factor of 2.3% to 2.5%, which equates to a weighted average present-value factor of 2.4%. The projected fiscal year of payment range is from 2025 to 2027 for a median projected fiscal year of payment of 2026. The fair value of the contingent consideration earnout liability related to certain revenue milestones associated with the Biomatrica acquisition was $2.3 million as of March 31, 2021 and is measured using the Monte Carlo Method. As of March 31, 2021, the fair value of the earnout liability was determined using a volume volatility rate of 29.0%, volume discount rate of 13.1%, and a counter party discount rate of 5.2%. The projected fiscal year of payment range is from 2021 to 2023 for a median projected fiscal year of payment of 2022. Unobservable inputs were weighted by the relative fair value of the contingent consideration liability. Non-Marketable Equity Investments The Company has non-marketable equity investments which are initially recorded at the estimated fair value based on observable transactions. The Company has concluded it is not a primary beneficiary with regards to these investments and does not have the ability to exercise significant influence over the investees and thus has not consolidated the investees pursuant to the requirements of Accounting Standards Codification (“ASC”) 810, Consolidation. The Company will continue to assess its investments and future commitments to the investees and to the extent its relationship with the investees change and whether such change may require consolidation of the investees in future periods. The Company remeasures the fair value only when an observable transaction occurs during the period that would suggest a change in the carrying value of the investment. As of March 31, 2021 and December 31, 2020, the Company had non-marketable equity investments of $26.7 million and $29.1 million, respectively, which are classified as a component of other long-term assets in the Company’s condensed consolidated balance sheets. As of March 31, 2021, the balance primarily consists of the Company’s preferred stock investments in 18,258,838 shares of Epic Sciences, Inc. (“Epic Sciences”) and 21,520,648 shares of Renovia, Inc. of $10.8 million and $10.0 million, respectively. As of December 31, 2020, the balance primarily consisted of the Company’s preferred stock investments in Epic Sciences and 5,025,764 shares of Thrive of $10.8 million and $12.5 million, respectively. See Note 17 for additional information regarding the Company’s investment in Thrive. Other than the Company’s acquisition of Thrive further described in Note 17, there have been no other observable transactions during the three months ended March 31, 2021 and 2020 on the Company’s non-marketable equity investments. Derivative Financial Instruments As of March 31, 2021 and December 31, 2020, the Company had open foreign currency forward contracts with notional amounts of $26.4 million and $22.4 million, respectively. The Company's foreign exchange derivative instruments are classified as Level 2 within the fair value hierarchy as they are valued using inputs that are observable in the market or can be derived principally from or corroborated by observable market data. The fair value of the foreign currency forward contracts was zero at March 31, 2021 and December 31, 2020, and there were no gains or losses recorded for the three months ended March 31, 2021 and 2020. |
LONG-TERM DEBT
LONG-TERM DEBT | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Construction Loan Agreement During December 2017, the Company entered into a loan agreement with Fifth Third Bank (formerly MB Financial Bank, N.A.) (the “Construction Loan Agreement”), which provides the Company with a non-revolving construction loan (the “Construction Loan”) of $25.6 million. The Company is using the Construction Loan proceeds to finance the construction of an additional clinical laboratory and related facilities in Madison, Wisconsin. The Construction Loan is collateralized by the additional clinical laboratory and related facilities. Pursuant to the Construction Loan Agreement, funds drawn will bear interest at a rate equal to the sum of the 1-month LIBOR rate plus 2.25 percent. Regular monthly payments are interest-only for the first 24 months, with further payments based on a 20-year amortization schedule. Amounts borrowed pursuant to the Construction Loan Agreement may be prepaid at any time without penalty. The maturity date of the Construction Loan Agreement is December 10, 2022. In November 2017, Fifth Third Bank, on behalf of the Company, issued an Irrevocable Standby Letter of Credit in the amount of $0.6 million in favor of the City of Madison, Wisconsin (the “City Letter of Credit”). The City Letter of Credit is deemed to have been issued pursuant to the Construction Loan Agreement. The amount of the City Letter of Credit will reduce, dollar for dollar, the amount available for borrowing under the Construction Loan Agreement. As a condition to Fifth Third Bank’s initial advance of loan proceeds under the Construction Loan Agreement, the Company was required to first invest at least $16.4 million of its own cash into the construction project. The Company fulfilled its required initial investment and made its first draw on the Construction Loan in June 2018. In December 2019, the Company began making monthly payments towards the outstanding principal balance plus accrued interest. As of March 31, 2021 and December 31, 2020, the outstanding balance was $23.4 million and $23.8 million, respectively, from the Construction Loan, including $0.7 million of interest incurred, which is accrued for as an interest reserve and represents a portion of the loan balance. The Company capitalized the $0.7 million of interest to the construction project. The Company incurred approximately $0.2 million of debt issuance costs related to the Construction Loan, which are recorded as a direct deduction from the liability. The debt issuance costs are being amortized over the life of the Construction Loan. The carrying amount of the Construction Loan approximates fair value due to the short maturity of this instrument. The Construction Loan is privately held with no public market for this debt and therefore is classified as a Level 3 fair value measurement. The change in the fair value during the three months ended March 31, 2021 was due to payments made on the loan resulting in a decrease in the liability. The Construction Loan Agreement was amended effective June 30, 2020 to include a financial covenant to maintain a minimum liquidity of $250 million and remove the minimum tangible net worth covenant. As of March 31, 2021, the Company is in compliance with the covenant included in the amended agreement. Tax Increment Financing Loan Agreements The Company entered into two separate Tax Increment Financing Loan Agreements (“TIFs”) in February 2019 and June 2019 with the City of Madison, Wisconsin. The TIFs provide for $4.6 million of financing in the aggregate. In return for the loans, the Company is obligated to create and maintain 500 full-time jobs over a five-year period, starting on the date of occupancy of the buildings constructed. In the event that the job creation goals are not met, the Company would be required to pay a penalty. The Company records the earned financial incentives as the full-time equivalent positions are filled. The amount earned is recorded as a liability and amortized as a reduction of operating expenses over a two-year period, which is the timeframe when the TIFs will be repaid through property taxes. |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 3 Months Ended |
Mar. 31, 2021 | |
CONVERTIBLE NOTES [Abstract] | |
CONVERTIBLE NOTES | CONVERTIBLE NOTES Convertible note obligations included in the condensed consolidated balance sheet consisted of the following as of March 31, 2021: Fair Value (2) (In thousands) Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount Amount Leveling 2028 Convertible notes - 0.375% $ 1,150,000 $ (21,125) $ 1,128,875 $ 1,493,563 2 2027 Convertible notes - 0.375% 747,500 (13,383) 734,117 1,011,255 2 2025 Convertible notes - 1.000% (1) 315,023 (2,191) 312,832 594,921 2 Convertible note obligations included in the condensed consolidated balance sheet consisted of the following as of December 31, 2020: Fair Value (2) (In thousands) Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount Amount Leveling 2028 Convertible notes - 0.375% $ 1,150,000 $ (21,878) $ 1,128,122 $ 1,526,625 2 2027 Convertible notes - 0.375% 747,500 (13,937) 733,563 992,306 2 2025 Convertible notes - 1.000% (1) 315,049 (2,333) 312,716 601,744 2 ______________ (1) Based on the Company’s share price on the days leading up to March 31, 2021 and December 31, 2020, holders of the 2025 Convertible Notes have the right to convert their debentures. As a result, the 2025 Convertible Notes are included within convertible notes, net, current portion on the condensed consolidated balance sheets. (2) The fair values are based on observable market prices for this debt, which is traded in active markets and therefore is classified as a Level 2 fair value measurement. Issuances and Settlements In January 2018, the Company issued and sold $690.0 million in aggregate principal amount of 1.0% Convertible Notes (the “January 2025 Notes”) with a maturity date of January 15, 2025. The January 2025 Notes accrue interest at a fixed rate of 1.0% per year, payable semi-annually in arrears on January 15 and July 15 of each year, beginning on July 15, 2018. The net proceeds from the issuance of the January 2025 Notes were approximately $671.1 million, after deducting underwriting discounts and commissions and the offering expenses payable by the Company. In June 2018, the Company issued and sold an additional $218.5 million in aggregate principal amount of 1.0% Convertible Notes (the “June 2025 Notes”). The June 2025 Notes were issued under the same indenture pursuant to which the Company previously issued the January 2025 Notes (the “Indenture”). The January 2025 Notes and the June 2025 Notes (collectively, the “2025 Notes”) have identical terms (including the same January 15, 2025 maturity date) and are treated as a single series of securities. The net proceeds from the issuance of the June 2025 Notes were approximately $225.3 million, after deducting underwriting discounts and commissions and the offering expenses payable by the Company. In March 2019, the Company issued and sold $747.5 million in aggregate principal amount of 0.375% Convertible Notes (the “2027 Notes”) with a maturity date of March 15, 2027. The 2027 Notes accrue interest at a fixed rate of 0.375% per year, payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019. The net proceeds from the issuance of the 2027 Notes were approximately $729.5 million, after deducting underwriting discounts and commissions and the offering expenses payable by the Company. The Company utilized a portion of the proceeds from the issuance of the 2027 Notes to settle a portion of the 2025 Notes in privately negotiated transactions. In March 2019, the Company used cash of $494.1 million and an aggregate of 2.2 million shares of the Company’s common stock valued at $182.4 million for total consideration of $676.5 million to settle $493.4 million of the 2025 Notes, of which $0.7 million was used to pay off interest accrued on the 2025 Notes. The transaction resulted in a loss on settlement of convertible notes of $187.7 million, which is reflected in accumulated deficit in the Company’s condensed consolidated balance sheets. The loss represents the difference between (i) the fair value of the consideration transferred and (ii) the carrying value of the debt at the time of repurchase. In February 2020, the Company issued and sold $1.15 billion in aggregate principal amount of 0.375% Convertible Notes (the “2028 Notes” and, collectively with the 2025 Notes and the 2027 Notes, the “Notes”) with a maturity date of March 1, 2028. The 2028 Notes accrue interest at a fixed rate of 0.375% per year, payable semi-annually in arrears on March 1 and September 1 of each year, beginning on September 1, 2020. The net proceeds from the issuance of the 2028 Notes were approximately $1.13 billion, after deducting underwriting discounts and commissions and the offering expenses payable by the Company. In February 2020, the Company used $150.1 million of the proceeds from the issuance of the 2028 Notes to settle $100.0 million of the 2025 Notes, of which $0.1 million was used to pay off interest accrued on the 2025 Notes. The transaction resulted in a loss on settlement of convertible notes of $50.8 million, which is recorded in interest expense in the Company’s condensed consolidated statement of operations. The loss represents the difference between (i) the fair value of the consideration transferred and (ii) the carrying value of the debt at the time of repurchase. Summary of Conversion Features Until the six-months immediately preceding the maturity date of the applicable series of Notes, each series of Notes is convertible only upon the occurrence of certain events and during certain periods, as set forth in the Indentures filed at the time of the original offerings. On or after the date that is six-months immediately preceding the maturity date of the applicable series of Notes until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert such Notes at any time. The Notes will be convertible into cash, shares of the Company’s common stock (plus, if applicable, cash in lieu of any fractional share), or a combination of cash and shares of the Company’s common stock, at the Company’s election. It is the Company’s intent and policy to settle all conversions through combination settlement. The initial conversion rate is 13.26, 8.96, and 8.21 shares of common stock per $1,000 principal amount for the 2025 Notes, 2027 Notes, and 2028 Notes, respectively, which is equivalent to an initial conversion price of approximately $75.43, $111.66, and $121.84 per share of the Company’s common stock for the 2025 Notes, 2027 Notes, and 2028 Notes, respectively. The 2025 Notes, 2027 Notes, and 2028 Notes may be convertible in up to 4.2 million, 6.7 million, and 9.4 million shares, respectively. The conversion rate is subject to adjustment upon the occurrence of certain specified events as set forth in the Indentures filed at the time of the original offerings but will not be adjusted for accrued and unpaid interest. In addition, holders of the Notes who convert their Notes in connection with a “make-whole fundamental change” (as defined in the Indenture), will, under certain circumstances, be entitled to an increase in the conversion rate. If the Company undergoes a “fundamental change” (as defined in the Indenture), holders of the Notes may require the Company to repurchase for cash all or part of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest. Based on the closing price of the Company’s common stock of $131.78 on March 31, 2021, the if-converted values exceed the principal amount by $235.3 million, $134.7 million, and $93.8 million for the 2025 Notes, 2027 Notes, and 2028 Notes, respectively. Ranking of Convertible Notes The Notes are the Company’s senior unsecured obligations and (i) rank senior in right of payment to all of its future indebtedness that is expressly subordinated in right of payment to the Notes; (ii) rank equal in right of payment to each outstanding series thereof and to all of the Company’s future liabilities that are not so subordinated, unsecured indebtedness; (iii) are effectively junior to all of the Company’s existing and future secured indebtedness and other secured obligations, to the extent of the value of the assets securing that indebtedness and other secured obligations; and (iv) are structurally subordinated to all indebtedness and other liabilities of the Company’s subsidiaries. Issuance costs are amortized to interest expense over the term of the Notes. The following table summarizes the original issuance costs at the time of issuance for each set of Notes: (In thousands) January 2025 Notes $ 10,284 June 2025 Notes 7,363 2027 Notes 14,285 2028 Notes 24,453 The Notes do not contain any financial or operating covenants or any restrictions on the payment of dividends, the issuance of other indebtedness or the issuance or repurchase of securities by the Company. Interest expense includes the following: Three Months Ended March 31, (In thousands) 2021 2020 Coupon interest expense $ 2,567 $ 1,932 Amortization of debt discount and issuance costs 1,449 1,009 Loss on settlement of convertible notes — 50,819 Total interest expense on convertible notes 4,016 53,760 Other interest expense 600 844 Total interest expense $ 4,616 $ 54,604 The effective interest rates on the 2025 Notes, 2027 Notes, and 2028 Notes for the three months ended March 31, 2021 and 2020 were 1.18%, 0.67%, and 0.64% and 1.26%, 0.67%, and 0.63%, respectively. The remaining period over which the unamortized debt discount will be recognized as non-cash interest expense is 3.80, 5.96, and 6.92 years for the 2025 Notes, 2027 Notes, and 2028 Notes, respectively. |
LICENSE AND COLLABORATION AGREE
LICENSE AND COLLABORATION AGREEMENTS | 3 Months Ended |
Mar. 31, 2021 | |
LICENSE AGREEMENTS [Abstract] | |
LICENSE AND COLLABORATION AGREEMENTS | LICENSE AND COLLABORATION AGREEMENTS The Company licenses certain technologies that are, or may be, incorporated into its technology under several license agreements, as well as the rights to commercialize certain diagnostic tests through collaboration agreements. Generally, the license agreements require the Company to pay royalties based on net revenues received using the technologies and may require minimum royalty amounts or maintenance fees. Mayo In June 2009 the Company entered into a license agreement with Mayo Foundation for Medical Education and Research (“Mayo”). The Company’s license agreement with Mayo was most recently amended and restated in September 2020. Under the license agreement, Mayo granted the Company an exclusive, worldwide license to certain Mayo patents and patent applications, as well as a non-exclusive, worldwide license with regard to certain Mayo know-how. The scope of the license covers any screening, surveillance or diagnostic test or tool for use in connection with any type of cancer, pre-cancer, disease or condition. The licensed Mayo patents and patent applications contain both method and composition claims that relate to sample processing, analytical testing and data analysis associated with nucleic acid screening for cancers and other diseases. The jurisdictions covered by these patents and patent applications include the U.S., Australia, Canada, the European Union, China, Japan and Korea. Under the license agreement, the Company assumed the obligation and expense of prosecuting and maintaining the licensed Mayo patents and is obligated to make commercially reasonable efforts to bring to market products using the licensed Mayo intellectual property. Pursuant to the Company’s agreement with Mayo, the Company is required to pay Mayo a low-single-digit royalty on the Company’s net sales of current and future products using the licensed Mayo intellectual property each year during the term of the Mayo agreement. As part of the most recent amendment, the Company agreed to pay Mayo an additional $6.3 million, payable in five equal annual installments through 2024. The annual installments are recorded in research and development expenses in the Company’s condensed consolidated statements of operations. The license agreement will remain in effect, unless earlier terminated by the parties in accordance with the agreement, until the last of the licensed patents expires in 2038 (or later, if certain licensed patent applications are issued). However, if the Company is still using the licensed Mayo know-how or certain Mayo-provided biological specimens or their derivatives on such expiration date, the term shall continue until the earlier of the date the Company stops using such know-how and materials and the date that is five years after the last licensed patent expires. The license agreement contains customary termination provisions and permits Mayo to terminate the license agreement if the Company sues Mayo or its affiliates, other than any such suit claiming an uncured material breach by Mayo of the license agreement. In addition to granting the Company a license to the covered Mayo intellectual property, Mayo provides the Company with product development and research and development assistance pursuant to the license agreement and other collaborative arrangements. In September 2020, Mayo also agreed to make available certain personnel to provide such assistance through January 2025. In connection with this collaboration, the Company incurred charges of $1.2 million and $1.0 million for the three months ended March 31, 2021 and 2020, respectively. The charges incurred in connection with this collaboration are recorded in research and development expenses in the Company’s condensed consolidated statements of operations. John Hopkins University (“JHU”) Through the acquisition of Thrive, the Company acquired a worldwide exclusive license agreement with JHU for use of several JHU patents and licensed know-how. The license is designed to enable the Company to leverage JHU proprietary data in the development and commercialization of a blood-based, multi-cancer screening test. The agreement terms include single-digit sales-based royalties and sales-based milestone payments of $10.0 million, $15.0 million, $20.0 million and upon achieving calendar year licensed product revenue using JHU proprietary data of $0.50 billion, $1.00 billion, and $1.50 billion, respectively. |
PFIZER PROMOTION AGREEMENT
PFIZER PROMOTION AGREEMENT | 3 Months Ended |
Mar. 31, 2021 | |
PFIZER PROMOTION AGREEMENT | |
PFIZER PROMOTION AGREEMENT | PFIZER PROMOTION AGREEMENTIn August 2018, the Company entered into a Promotion Agreement (the “Original Promotion Agreement”) with Pfizer Inc. (“Pfizer”), which was amended and restated in October 2020 (the “Restated Promotion Agreement”). The Restated Promotion Agreement extends the relationship between the Company and Pfizer and restructures the manner in which the Company compensates Pfizer for promotion of the Cologuard test through a service fee, and provision of certain other sales and marketing services related to the Cologuard test. The Restated Promotion Agreement includes fixed and performance-related fees, some of which retroactively went into effect on April 1, 2020. All payments to Pfizer are recorded in sales and marketing expenses in the Company’s condensed consolidated statements of operations. Under the Original Promotion Agreement, the service fee was calculated based on incremental gross profits over specified baselines during the term. Under the Restated Promotion Agreement, the service fee provides a fee-for-service model that includes certain fixed fees and performance-related bonuses. The performance-related bonuses are contingent upon the achievement of certain annual performance criteria with any applicable expense being recognized ratably upon achievement of the payment becoming probable. The Company incurred charges of $22.7 million and $19.4 million for the service fee for the three months ended March 31, 2021 and 2020, respectively. The Company incurred charges of $26.6 million and $19.5 million for promotion, sales and marketing services performed by Pfizer on behalf of the Company during the three months ended March 31, 2021 and 2020, respectively. During 2022, and contingent upon the achievement of certain Cologuard test revenue metrics during 2021, the Company will pay Pfizer a royalty based on a low single-digit royalty rate applied to actual 2022 Cologuard test revenues. The term of the Restated Promotion Agreement runs through December 31, 2022. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Thrive Acquisition Stock Issuance In January 2021, the Company completed its acquisition of Thrive. In connection with the acquisition, which is further described in Note 17, the Company issued 9.3 million common shares that had a fair value of $1.19 billion. Targeted Digital Sequencing (“TARDIS”) License Acquisition Stock Issuance In January 2021, the Company acquired a worldwide exclusive license to the TARDIS technology from The Translational Genomics Research Institute (“TGen”), which is further described in Note 17. As part of the consideration transferred, the Company issued 0.2 million shares valued at $27.3 million. Paradigm and Viomics Acquisition Stock Issuance In March 2020, the Company completed the acquisitions of Paradigm and Viomics. The purchase price for these acquisitions consisted of cash and stock valued at $40.4 million. Of the $40.4 million purchase price, $32.2 million is expected to be settled through the issuance of 0.4 million shares of common stock. Of the $32.2 million that will be settled through the issuance of common stock, $28.8 million was issued as of March 31, 2021, and the remainder was withheld and may become issuable as additional merger consideration on June 3, 2021 subject to the terms and conditions of the acquisition agreements. Changes in Accumulated Other Comprehensive Income (Loss) The amount recognized in AOCI for the three months ended March 31, 2021 were as follows: (In thousands) Unrealized Accumulated Balance at December 31, 2020 $ 526 $ 526 Other comprehensive loss before reclassifications (292) (292) Amounts reclassified from accumulated other comprehensive loss (40) (40) Net current period change in accumulated other comprehensive loss, before tax (332) (332) Income tax expense related to items of other comprehensive income 170 170 Balance at March 31, 2021 $ 364 $ 364 The amounts recognized in AOCI for the three months ended March 31, 2020 were as follows: (In thousands) Foreign Unrealized Accumulated Balance at December 31, 2019 $ (25) $ (75) $ (100) Other comprehensive loss before reclassifications — (1,642) (1,642) Amounts reclassified from accumulated other comprehensive loss 25 — 25 Net current period change in accumulated other comprehensive loss 25 (1,642) (1,617) Balance at March 31, 2020 $ — $ (1,717) $ (1,717) ______________ (1) There was no tax impact from the amounts recognized in AOCI for the three months ended March 31, 2020. Amounts reclassified from AOCI for the three months ended March 31, 2021 and 2020 were as follows: Affected Line Item in the Three Months Ended March 31, Details about AOCI Components (In thousands) 2021 2020 Change in value of available-for-sale investments Sales and maturities of available-for-sale investments Investment income, net $ (40) $ — Foreign currency adjustment General and administrative — 25 Total reclassifications $ (40) $ 25 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-Based Compensation Plans The Company maintains the 2010 Omnibus Long-Term Incentive Plan (As Amended and Restated Effective July 27, 2017), the 2019 Omnibus Long-Term Incentive Plan, the 2010 Employee Stock Purchase Plan, and the 2016 Inducement Award Plan (collectively, the “Stock Plans”). Stock-Based Compensation Expense The Company records stock-based compensation expense in connection with the amortization of restricted stock and restricted stock unit awards (“RSUs”), stock purchase rights granted under the Company’s employee stock purchase plan and stock options granted to employees, non-employee consultants and non-employee directors. The Company recorded $163.5 million and $29.6 million in stock-based compensation expense during the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, there was $492.3 million of expected total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under all equity compensation plans. The Company expects to recognize that cost over a weighted average period of 3.0 years. In connection with the acquisition of Thrive, the Company accelerated the vesting of shares of previously unvested stock options and restricted stock units for employees with qualifying termination events. During the three months ended March 31, 2021, the Company accelerated 99,014 shares of previously unvested stock options and 27,479 shares of previously unvested restricted stock awards and restricted stock units. During the three months ended March 31, 2021, the Company recorded $13.5 million of non-cash stock-based compensation for the accelerated awards. As further discussed in Note 17, the Company also recorded $86.2 million in stock-based compensation related to accelerated vesting of awards held by Thrive employees in connection with the acquisition. Stock Options The Company determines the fair value of each service-based option award on the date of grant using the Black-Scholes option-pricing model, which utilizes several key assumptions which are disclosed in the following table: Three Months Ended March 31, 2021 2020 Option Plan Shares Risk-free interest rates (1) 1.26% - 1.47% Expected term (in years) (1) 6.15 Expected volatility (1) 65.67% - 65.71% Dividend yield (1) —% ______________ (1) The Company did not grant stock options under its 2010 Omnibus Long-Term Incentive Plan or 2019 Omnibus Long-Term Incentive Plan during the period. A summary of stock option activity under the Stock Plans is as follows: Options Shares Weighted Weighted Aggregate (Aggregate intrinsic value in thousands) Outstanding, January 1, 2021 2,231,059 $ 39.67 6.0 Granted — — Assumed through acquisition 1,393,748 5.51 Exercised (967,135) 9.06 Forfeited (24,850) 66.87 Outstanding, March 31, 2021 2,632,822 $ 32.57 6.5 $ 261,190 Vested and expected to vest, March 31, 2021 2,632,822 $ 32.57 6.5 $ 261,190 Exercisable, March 31, 2021 1,895,614 $ 25.36 5.8 $ 201,724 ______________ (1) The weighted average grant date fair value of options granted during the three months ended March 31, 2020 was $58.86. (2) The total intrinsic value of options exercised during the three months ended March 31, 2021 and 2020 was $126.0 million and $10.2 million, respectively, determined as of the date of exercise. The Company received approximately $8.8 million and $4.3 million from stock option exercises during the three months ended March 31, 2021 and 2020, respectively. Restricted Stock and Restricted Stock Units The fair value of restricted stock and restricted stock units is determined on the date of grant using the closing stock price on that day. A summary of restricted stock and restricted stock unit activity during the three months ended March 31, 2021 is as follows: Restricted stock and restricted stock units Shares Weighted Outstanding, January 1, 2021 3,968,214 $ 79.39 Granted 1,540,278 143.66 Assumed through acquisition 242,123 127.79 Released (1) (1,197,282) 67.58 Forfeited (86,286) 94.47 Outstanding, March 31, 2021 4,467,047 $ 107.05 ______________ (1) The fair value of restricted stock units vested and converted to shares of the Company’s common stock was $80.9 million and $54.6 million during the three months ended March 31, 2021 and 2020, respectively. (2) The weighted average grant date fair value of the restricted stock units granted during the three months ended March 31, 2020 was $93.21. Performance Share Units The Company issued performance-based equity awards to certain employees which vest upon the achievement of certain performance goals, including financial performance targets and operational milestones. In February 2021, the Company issued additional performance-based equity awards to certain employees which vest upon the achievement of certain performance goals, including financial performance targets and operational milestones. A summary of performance share-based compensation arrangements granted under all equity compensation unit activity is as follows: Performance share units Shares (1) Weighted Outstanding, January 1, 2021 618,515 $ 93.22 Granted 229,618 147.81 Released — — Forfeited (2,075) 147.81 Outstanding, March 31, 2021 846,058 $ 107.90 ______________ (1) The performance share units listed above assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding performance share units as of March 31, 2021 was 239,533. (2) The weighted average grant date fair value of the performance share units granted during the three months ended March 31, 2020 was $98.18. Employee Stock Purchase Plan (“ESPP”) |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases Supplemental disclosure of cash flow information related to the Company’s cash and non-cash activities with its leases are as follows: Three Months Ended March 31, 2021 (In thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,558 $ 5,619 Operating cash flows from finance leases 248 5 Finance cash flows from finance leases 1,203 61 Non-cash investing and financing activities: Right-of-use assets obtained in exchange for new operating lease liabilities (1) 40,406 1,254 Right-of-use assets obtained in exchange for new finance lease liabilities 639 663 Weighted-average remaining lease term - operating leases (in years) 8.69 9.50 Weighted-average remaining lease term - finance leases (in years) 3.45 2.60 Weighted-average discount rate - operating leases 6.41 % 6.78 % Weighted-average discount rate - finance leases 5.66 % 5.44 % _____________ (1) For the three months ended March 31, 2021, this includes right-of-use assets acquired as part of the acquisition of Thrive of $39.0 million. As of March 31, 2021 and December 31, 2020, the Company’s right-of-use assets from operating leases are $161.7 million and $125.9 million, respectively, which are reported in operating lease right-of-use assets in the Company’s condensed consolidated balance sheets. As of March 31, 2021, the Company has outstanding operating lease obligations of $172.7 million, of which $15.3 million is reported in operating lease liabilities, current portion and $157.4 million is reported in operating lease liabilities, less current portion in the Company’s condensed consolidated balance sheets. As of December 31, 2020, the Company had outstanding operating lease obligations of $132.6 million, of which $11.5 million is reported in operating lease liabilities, current portion and $121.1 million is reported in operating lease liabilities, less current portion in the Company’s condensed consolidated balance sheets. The Company calculates its incremental borrowing rates for specific lease terms, used to discount future lease payments, as a function of the U.S. Treasury rate and an indicative Moody’s rating for operating leases. As of March 31, 2021 and December 31, 2020, the Company’s right-of-use assets from finance leases are $17.9 million and $18.6 million, respectively, which are reported in other long-term assets other current liabilities other long-term liabilities The Company executed a lease agreement for a new facility in Redwood City, California that will commence in the second quarter of 2021. The Company anticipates that it will recognize $8.5 million for the operating lease right-of-use assets and $8.4 million for the operating lease liabilities in the condensed consolidated balance sheet, respectively, upon commencement of the lease. The Company executed a lease agreement for a new facility in La Jolla, California that will commence in 2021. The Company anticipates that it will recognize $22.8 million for the operating lease right-of-use assets and $22.8 million for the operating lease liabilities in the condensed consolidated balance sheet, respectively, upon commencement of the lease. Legal Matters The Company is currently responding to civil investigative demands initiated by the United States Department of Justice (“DOJ”) concerning (1) Genomic Health’s compliance with the Medicare Date of Service billing regulations and (2) allegations that the Company offered or gave gift cards to patients in exchange for returning the Cologuard screening test, in violation of the Federal Anti-Kickback Statute and False Claims Act. The Company has been cooperating with these inquires and has produced documents in response thereto. Adverse outcomes from these investigations could include the Company being required to pay treble damages, incur civil and criminal penalties, paying attorneys' fees, entering into a corporate integrity agreement, being excluded from participation in government healthcare programs, including Medicare and Medicaid, and other adverse actions that could materially and adversely affect the Company's business, financial condition and results of operation. Refer to the Company’s 2020 Form 10-K for additional information on the Company's fair value determination of the pre-acquisition loss contingency related to the Genomic Health investigation. In connection with the Company's combination with Genomic Health, on June 22, 2020, Suzanne Flannery, a purported former stockholder of Genomic Health, filed a Verified Individual and Class Action Complaint in the Delaware Court of Chancery, captioned Flannery v. Genomic Health, Inc., et al., C.A. No. 2020-0492. Flannery amended her complaint on November 23, 2020. The amended complaint asserts individual and class action claims, including: (i) a violation of 8 Del. C. § 203 by Genomic Health, Exact Sciences and a purported controlling group of former Genomic Health stockholders; (ii) conversion by Genomic Health, Exact Sciences and Spring Acquisition Corp.; (iii) breach of fiduciary duty by Genomic Health's former directors; (iv) breach of fiduciary duty by the purported controlling group; and (v) aiding and abetting breach of fiduciary duty against Exact Sciences, Spring Acquisition and Goldman Sachs & Co. LLC, Genomic Health's financial advisor in the combination. The amended complaint seeks, among other things, declaratory relief, unspecified monetary damages and attorneys' fees and costs. All defendants moved to dismiss the amended complaint. Oral argument on defendants’ motions to dismiss the amended complaint has been set for May 2021. These investigations and litigation matters are still in process and their scope and outcome is not determinable at this time. There can be no assurance that any settlement, resolution, or other outcome of these matters during any subsequent reporting period will not have a material adverse effect on the Company’s results of operations or cash flows for that period or on the Company’s financial position. |
NEW MARKET TAX CREDIT
NEW MARKET TAX CREDIT | 3 Months Ended |
Mar. 31, 2021 | |
NEW MARKET TAX CREDIT | |
NEW MARKET TAX CREDIT | NEW MARKET TAX CREDIT During the fourth quarter of 2014, the Company received approximately $2.4 million in net proceeds from financing agreements related to working capital and capital improvements at one of its Madison, Wisconsin facilities. This financing arrangement was structured with an unrelated third-party financial institution (the “Investor”), an investment fund, and its majority owned community development entity in connection with the Company’s participation in transactions qualified under the federal New Markets Tax Credit (“NMTC”) program, pursuant to Section 45D of the Internal Revenue Code of 1986, as amended. The Company is required to be in compliance through December 2021 with various regulations and contractual provisions that apply to the NMTC arrangement. Noncompliance with applicable requirements could result in the Investor’s projected tax benefits not being realized and, therefore, require the Company to indemnify the Investor for any loss or recapture of NMTC related to the financing until such time as the recapture provisions have expired under the applicable statute of limitations. The Company does not anticipate any credit recapture will be required in connection with this financing arrangement. The Investor and its majority owned community development entity are considered Variable Interest Entities (“VIEs”) and the Company is the primary beneficiary of the VIEs. This conclusion was reached based on the following: • the ongoing activities of the VIEs — collecting and remitting interest and fees and NMTC compliance — were all considered in the initial design and are not expected to significantly affect performance throughout the life of the VIE; • contractual arrangements obligate the Company to comply with NMTC rules and regulations and provide various other guarantees to the Investor and community development entity; • the Investor lacks a material interest in the underlying economics of the project; and • the Company is obligated to absorb losses of the VIEs. |
WISCONSIN ECONOMIC DEVELOPMENT
WISCONSIN ECONOMIC DEVELOPMENT TAX CREDITS | 3 Months Ended |
Mar. 31, 2021 | |
WISCONSIN ECONOMIC DEVELOPMENT TAX CREDITS [Abstract] | |
WISCONSIN ECONOMIC DEVELOPMENT TAX CREDITS | WISCONSIN ECONOMIC DEVELOPMENT TAX CREDITS During the first quarter of 2015, the Company entered into an agreement with the Wisconsin Economic Development Corporation (“WEDC”) to earn $9.0 million in refundable tax credits on the condition that the Company expends $26.3 million in capital investments and establishes and maintains 758 full-time positions over a seven-year period. The tax credits earned are first applied against the tax liability otherwise due, and if there is no such liability present, the claim for tax credits will be reimbursed in cash to the Company. The maximum amount of the refundable tax credit to be earned for each year is fixed, and the Company earns the credits by meeting certain capital investment and job creation thresholds over the seven-year period. Should the Company earn and receive the job creation tax credits but not maintain those full-time positions through the end of the agreement, the Company may be required to pay those credits back to the WEDC. The Company records the earned tax credits as job creation and capital investments occur. The amount of tax credits earned is recorded as a liability and amortized as a reduction of operating expenses over the expected period of benefit. The tax credits earned from capital investment are recognized as an offset to depreciation expense over the expected life of the acquired capital assets. The tax credits earned related to job creation are recognized as an offset to operational expenses over the life of the agreement, as the Company is required to maintain the minimum level of full-time positions through the seven-year period. As of March 31, 2021, the Company has earned all $9.0 million of the refundable tax credits and has received payment of $7.5 million from the WEDC. The unpaid portion is $1.5 million, which is reported in prepaid expenses and other current assets, reflecting when collection of the refundable tax credits is expected to occur. As of March 31, 2021 and December 31, 2020, the corresponding liability, which reflected when the expected benefit of tax credit amortization would reduce future operating expenses, has been fully amortized. |
BUSINESS COMBINATIONS AND ASSET
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS | BUSINESS COMBINATIONS AND ASSET ACQUISITIONS Business Combinations Thrive Earlier Detection Corporation On January 5, 2021, the Company completed the acquisition (“Thrive Merger”) of all of the outstanding capital stock of Thrive. Thrive, headquartered in Cambridge, Massachusetts, is a healthcare company dedicated to incorporating earlier cancer detection into routine medical care. The Company expects that combining Thrive's early-stage screening test, CancerSEEK, with the Company’s scientific platform, clinical organization and commercial infrastructure will establish the Company as a leading competitor in blood-based, multi-cancer screening. The Company has included the financial results of Thrive in the consolidated financial statements from the date of the combination. The combination date fair value of the consideration transferred for Thrive was approximately $2.19 billion, which consisted of the following: (In thousands) Common stock issued $ 1,175,431 Cash 584,996 Contingent consideration 331,348 Fair value of replaced equity awards 52,245 Previously held equity investment fair value 43,034 Total purchase price $ 2,187,054 The Company issued 9,323,266 common shares that had a fair value of $1.19 billion based on the average of the high and low market price of the Company's shares on the acquisition date, which was $127.79. Of the total consideration for common stock issued, $1.18 billion was allocated to the purchase consideration and $16.0 million was recorded as compensation within general and administrative expenses in the condensed consolidated statement of operations on the acquisition date due to accelerated vesting of legacy Thrive restricted stock awards (“RSA”) and RSU awards in connection with the acquisition. The company paid $590.2 million in cash on the acquisition date. Of the total consideration for cash, $585.0 million was allocated to the purchase consideration and $5.2 million was recorded as compensation within general and administrative expenses on the acquisition date due to accelerated vesting of legacy Thrive RSU and RSA awards that were cash-settled in connection with the acquisition. The contingent consideration arrangement requires the Company to pay up to $450.0 million of additional cash consideration to Thrive’s former shareholders upon the achievement of two discrete events, FDA approval and CMS coverage, for $150.0 million and up to $300.0 million, respectively. The fair value of the contingent consideration arrangement at the acquisition date was $352.0 million. The fair value of the contingent consideration was estimated using a probability-weighted scenario based discounted cash flow model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. The key assumptions are described in Note 7. Of the total fair value of the contingent consideration, $331.3 million was allocated to the consideration transferred, $6.4 million was allocated to the Company’s previous ownership interest in Thrive, and $14.3 million was deemed compensatory as participation is dependent on replaced unvested equity awards vesting which requires future service. Compensation expense related to the milestones could be up to $18.2 million undiscounted and will be recognized in the future once probable and payable. As of March 31, 2021, there were no significant changes in the range of outcomes for the contingent consideration recognized as a result of the acquisition of Thrive, although the recognized amount increased by $2.9 million as a result of the passage of time. The Company replaced unvested stock options, RSUs, and RSAs and vested stock options with a combination-date fair value of $197.0 million. Of the total consideration for replaced equity awards, $52.2 million was allocated to the consideration transferred and $144.8 million was deemed compensatory as it was attributable to post acquisition vesting. Of the total compensation related to replaced awards, $65.0 million was expensed on the acquisition date due to accelerated vesting of stock options in connection with the acquisition and $79.8 million relates to future services and will be expensed over the remaining service periods of the unvested stock options, RSUs, and RSAs on a straight-line basis. Including expense recognized for accelerated vesting of RSUs and RSAs described above, total expected stock-based compensation expense is $166.0 million, of which $86.2 million was recognized immediately to general and administrative expenses in the condensed consolidated statement of operations due to accelerated vesting. The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The fair value of the RSA and RSUs assumed by the Company was determined based on the average of the high and low market price of the Company's shares on the acquisition date. The share conversion ratio of 0.06216 was applied to convert Thrive’s outstanding equity awards for Thrive’s common stock into equity awards for shares of the Company’s common stock. The fair value of options assumed were based on the assumptions in the following table: Option Plan Shares Assumed Risk-free interest rates 0.11% - 0.12% Expected term (in years) 1.26 - 1.57 Expected volatility 65.54% - 71.00% Dividend yield —% Weighted average fair value per share of options assumed $109.74 - $124.89 The company previously held a preferred stock investment of $12.5 million in Thrive and recognized a gain of approximately $30.5 million on the transaction within investment income, net on the Company’s consolidated statement of operations, which represented the adjustment of the Company’s historical investment to the acquisition date fair value. The fair value of the Company’s previous ownership in Thrive was determined based on the pro-rata share payout applied to the Company’s interest combined with the fair value of the Company’s share of the contingent consideration arrangement, as discussed above. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. (In thousands) Cash and cash equivalents $ 241,748 Prepaid expenses and other current assets 3,939 Property, plant and equipment 29,977 Operating lease right-of-use assets 39,027 Other long-term assets 67 In-process research and development (IPR&D) 1,250,000 Total identifiable assets acquired $ 1,564,758 Accounts payable (3,222) Accrued liabilities (6,218) Operating lease liabilities, current portion (2,980) Operating lease liabilities, less current portion (38,622) Deferred tax liability (272,905) Total liabilities assumed $ (323,947) Net identifiable assets acquired $ 1,240,811 Goodwill 946,243 Net assets acquired $ 2,187,054 IPR&D represents the fair value assigned to research and development assets that have not reached technological feasibility. The primary basis for determining technological feasibility of these projects is obtaining regulatory approval to market the underlying product and expected commercial release. The amounts capitalized are accounted for as indefinite-lived intangible assets, subject to impairment testing, until completion or abandonment of the research and development efforts associated with the projects. The company recorded $1.25 billion of IPR&D related to a project associated with the development of an FDA approved blood-based, multi cancer screening test. The IPR&D asset was valued using the multiple-period excess earnings method approach, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, required rate of return and tax rate, as well as estimates of achievement probability and timing related to the royalty and milestone obligations due to JHU, as described in Note 10. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the research and development workforce expertise, next generation sequencing capabilities and expected synergies. The total goodwill related to this combination is not deductible for tax purposes. The total purchase price allocation is preliminary and based upon estimates and assumptions that are subject to change within the measurement period as additional information for the estimates is obtained. The measurement period remains open pending the completion of valuation procedures related to certain acquired assets and liabilities assumed, primarily in connection with the IPR&D asset, as well as finalization of the pre-combination income tax returns. The net loss before tax of Thrive included in the Company’s consolidated statement of operations from the combination date of January 5, 2021 to March 31, 2021 was $142.8 million. The following unaudited pro forma financial information summarizes the combined results of operations for the Company and Thrive, as though the companies were combined as of the beginning of January 1, 2020. Three Months Ended March 31, (In thousands) 2021 2020 Total revenues $ 402,077 $ 347,821 Net loss before tax (192,569) (230,359) The unaudited pro forma financial information for all periods presented above has been calculated after adjusting the results of Thrive to reflect the business combination accounting effects resulting from this combination. The Company incurred $86.2 million of stock-based compensation expense related to accelerated vesting in connection with the acquisition, $13.5 million of stock-based compensation expense related to accelerated vesting for employees with qualifying termination events, and $10.3 million of transaction costs incurred to execute the acquisition. These expenses are included in general and administrative expenses on the condensed consolidated statement of operations for the three months ended March 31, 2021 and are reflected in pro forma earnings for the three months ended March 31, 2020 in the table above. The Company recorded a realized gain of $30.5 million during the three months ended March 31, 2021 in investment income, net on the Company’s condensed consolidated statement of operations relating to the Company’s pre-acquisition investment in Thrive. This gain has been adjusted to $7.6 million based on the Company’s interest in Thrive as of January 1, 2020 and is reflected in pro forma earnings for the three months ended March 31, 2020 in the table above. The historical consolidated financial statements have been adjusted in the unaudited pro forma combined financial information to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The unaudited pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the combination had taken place as of January 1, 2020. During 2021, the Company incurred $10.3 million of acquisition-related costs recorded in general and administrative expenses in the condensed consolidated statement of operations. These costs include fees associated with financial, legal, accounting and other advisors incurred to complete the merger. In connection with acquisition-related severances, the Company recorded $13.5 million of expense related to vesting of previously unvested equity awards and $2.0 million of additional benefit charges in the first quarter of 2021. Paradigm Diagnostics, Inc. and Viomics, Inc. On March 3, 2020, the Company acquired all of the outstanding capital stock of Paradigm and Viomics, two related party companies of one another headquartered in Phoenix, Arizona, in transactions that were deemed to be a single business combination in accordance with ASC 805, Business Combinations, (“the Paradigm Acquisition”). Paradigm provides comprehensive genomic-based profiling tests that assist in the diagnosis and therapy recommendations for late-stage cancer. Viomics provides a platform for identification of biomarkers. The Company entered into this acquisition to enhance its product portfolio in cancer diagnostics and to enhance its capabilities for biomarker identification. The acquisition date fair value of the consideration to be transferred for Paradigm and Viomics was $40.4 million, which consists of $32.2 million payable in shares of the Company’s common stock and $8.2 million which was settled through a cash payment. Of the $32.2 million to be settled through the issuance of common stock, $28.8 million was issued as of March 31, 2021, and the remaining $3.4 million, which was withheld and may become payable as additional merger consideration, is included in other current liabilities in the condensed consolidated balance sheet as of March 31, 2021. The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values as follows: (In thousands) Preliminary Allocation Measurement Period Adjustments Final Allocation Net operating assets $ 6,133 $ (760) $ 5,373 Goodwill 29,695 736 30,431 Developed technology 7,800 — 7,800 Net operating liabilities (3,123) (80) (3,203) Total purchase price $ 40,505 $ (104) $ 40,401 The measurement period adjustments primarily related to accounts receivable valuation and working capital adjustments. The fair value of identifiable intangible assets has been determined using the income approach, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, weighted average cost of capital and tax rate. Developed technology represents purchased technology that had reached technological feasibility and for which development had been completed as of the acquisition date. Fair value was determined using future discounted cash flows related to the projected income stream of the developed technology for a discrete projection period. Cash flows were discounted to their present value as of the closing date. Developed technology is amortized on a straight-line basis over its estimated useful life of 15 years. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the assembled workforce, and expected synergies. The total goodwill related to this acquisition is not deductible for tax purposes. The Company agreed to issue to the previous investors in Viomics equity interests with an acquisition-date fair value of up to $8.4 million in Viomics, vesting over 4 years based on certain retention arrangements. Payment is contingent upon continued employment with the Company over the four Pro forma disclosures have not been included due to immateriality. Asset Acquisitions TARDIS License Agreement On January 11 2021, the Company entered into a worldwide exclusive license to the proprietary TARDIS technology from TGen, an affiliate of City of Hope. Under the agreement, the Company acquired a royalty-free, worldwide exclusive license to proprietary TARDIS patents and know-how. The Company intends to develop and commercialize the TARDIS technology as a minimal residual disease (“MRD”) test. The Company accounted for this transaction as an asset acquisition. In connection with the asset acquisition, the Company paid upfront fair value consideration of $52.3 million comprised of $25.0 million in cash and issuance of 0.2 million shares of common stock valued at $27.3 million based on the average of the high and low market price of the Company’s shares on the acquisition date. In addition, the Company is obligated to make milestone payments to TGen of $10.0 million and $35.0 million upon achieving cumulative product revenue related to MRD detection and/or treatment totaling $100.0 million and $250.0 million, respectively. These payments are contingent upon achievement of these cumulative revenues on or before December 31, 2030. The upfront consideration was recorded to research and development expense in the condensed consolidated statement of operations immediately after acquisition as the asset was deemed to be incomplete and had no alternative future use at the time of acquisition. The Company will record the sales milestones once achievement is deemed probable. No acquisition related costs were incurred in this asset acquisition. |
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS | BUSINESS COMBINATIONS AND ASSET ACQUISITIONS Business Combinations Thrive Earlier Detection Corporation On January 5, 2021, the Company completed the acquisition (“Thrive Merger”) of all of the outstanding capital stock of Thrive. Thrive, headquartered in Cambridge, Massachusetts, is a healthcare company dedicated to incorporating earlier cancer detection into routine medical care. The Company expects that combining Thrive's early-stage screening test, CancerSEEK, with the Company’s scientific platform, clinical organization and commercial infrastructure will establish the Company as a leading competitor in blood-based, multi-cancer screening. The Company has included the financial results of Thrive in the consolidated financial statements from the date of the combination. The combination date fair value of the consideration transferred for Thrive was approximately $2.19 billion, which consisted of the following: (In thousands) Common stock issued $ 1,175,431 Cash 584,996 Contingent consideration 331,348 Fair value of replaced equity awards 52,245 Previously held equity investment fair value 43,034 Total purchase price $ 2,187,054 The Company issued 9,323,266 common shares that had a fair value of $1.19 billion based on the average of the high and low market price of the Company's shares on the acquisition date, which was $127.79. Of the total consideration for common stock issued, $1.18 billion was allocated to the purchase consideration and $16.0 million was recorded as compensation within general and administrative expenses in the condensed consolidated statement of operations on the acquisition date due to accelerated vesting of legacy Thrive restricted stock awards (“RSA”) and RSU awards in connection with the acquisition. The company paid $590.2 million in cash on the acquisition date. Of the total consideration for cash, $585.0 million was allocated to the purchase consideration and $5.2 million was recorded as compensation within general and administrative expenses on the acquisition date due to accelerated vesting of legacy Thrive RSU and RSA awards that were cash-settled in connection with the acquisition. The contingent consideration arrangement requires the Company to pay up to $450.0 million of additional cash consideration to Thrive’s former shareholders upon the achievement of two discrete events, FDA approval and CMS coverage, for $150.0 million and up to $300.0 million, respectively. The fair value of the contingent consideration arrangement at the acquisition date was $352.0 million. The fair value of the contingent consideration was estimated using a probability-weighted scenario based discounted cash flow model. This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. The key assumptions are described in Note 7. Of the total fair value of the contingent consideration, $331.3 million was allocated to the consideration transferred, $6.4 million was allocated to the Company’s previous ownership interest in Thrive, and $14.3 million was deemed compensatory as participation is dependent on replaced unvested equity awards vesting which requires future service. Compensation expense related to the milestones could be up to $18.2 million undiscounted and will be recognized in the future once probable and payable. As of March 31, 2021, there were no significant changes in the range of outcomes for the contingent consideration recognized as a result of the acquisition of Thrive, although the recognized amount increased by $2.9 million as a result of the passage of time. The Company replaced unvested stock options, RSUs, and RSAs and vested stock options with a combination-date fair value of $197.0 million. Of the total consideration for replaced equity awards, $52.2 million was allocated to the consideration transferred and $144.8 million was deemed compensatory as it was attributable to post acquisition vesting. Of the total compensation related to replaced awards, $65.0 million was expensed on the acquisition date due to accelerated vesting of stock options in connection with the acquisition and $79.8 million relates to future services and will be expensed over the remaining service periods of the unvested stock options, RSUs, and RSAs on a straight-line basis. Including expense recognized for accelerated vesting of RSUs and RSAs described above, total expected stock-based compensation expense is $166.0 million, of which $86.2 million was recognized immediately to general and administrative expenses in the condensed consolidated statement of operations due to accelerated vesting. The fair value of the stock options assumed by the Company was determined using the Black-Scholes option pricing model. The fair value of the RSA and RSUs assumed by the Company was determined based on the average of the high and low market price of the Company's shares on the acquisition date. The share conversion ratio of 0.06216 was applied to convert Thrive’s outstanding equity awards for Thrive’s common stock into equity awards for shares of the Company’s common stock. The fair value of options assumed were based on the assumptions in the following table: Option Plan Shares Assumed Risk-free interest rates 0.11% - 0.12% Expected term (in years) 1.26 - 1.57 Expected volatility 65.54% - 71.00% Dividend yield —% Weighted average fair value per share of options assumed $109.74 - $124.89 The company previously held a preferred stock investment of $12.5 million in Thrive and recognized a gain of approximately $30.5 million on the transaction within investment income, net on the Company’s consolidated statement of operations, which represented the adjustment of the Company’s historical investment to the acquisition date fair value. The fair value of the Company’s previous ownership in Thrive was determined based on the pro-rata share payout applied to the Company’s interest combined with the fair value of the Company’s share of the contingent consideration arrangement, as discussed above. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. (In thousands) Cash and cash equivalents $ 241,748 Prepaid expenses and other current assets 3,939 Property, plant and equipment 29,977 Operating lease right-of-use assets 39,027 Other long-term assets 67 In-process research and development (IPR&D) 1,250,000 Total identifiable assets acquired $ 1,564,758 Accounts payable (3,222) Accrued liabilities (6,218) Operating lease liabilities, current portion (2,980) Operating lease liabilities, less current portion (38,622) Deferred tax liability (272,905) Total liabilities assumed $ (323,947) Net identifiable assets acquired $ 1,240,811 Goodwill 946,243 Net assets acquired $ 2,187,054 IPR&D represents the fair value assigned to research and development assets that have not reached technological feasibility. The primary basis for determining technological feasibility of these projects is obtaining regulatory approval to market the underlying product and expected commercial release. The amounts capitalized are accounted for as indefinite-lived intangible assets, subject to impairment testing, until completion or abandonment of the research and development efforts associated with the projects. The company recorded $1.25 billion of IPR&D related to a project associated with the development of an FDA approved blood-based, multi cancer screening test. The IPR&D asset was valued using the multiple-period excess earnings method approach, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, required rate of return and tax rate, as well as estimates of achievement probability and timing related to the royalty and milestone obligations due to JHU, as described in Note 10. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the research and development workforce expertise, next generation sequencing capabilities and expected synergies. The total goodwill related to this combination is not deductible for tax purposes. The total purchase price allocation is preliminary and based upon estimates and assumptions that are subject to change within the measurement period as additional information for the estimates is obtained. The measurement period remains open pending the completion of valuation procedures related to certain acquired assets and liabilities assumed, primarily in connection with the IPR&D asset, as well as finalization of the pre-combination income tax returns. The net loss before tax of Thrive included in the Company’s consolidated statement of operations from the combination date of January 5, 2021 to March 31, 2021 was $142.8 million. The following unaudited pro forma financial information summarizes the combined results of operations for the Company and Thrive, as though the companies were combined as of the beginning of January 1, 2020. Three Months Ended March 31, (In thousands) 2021 2020 Total revenues $ 402,077 $ 347,821 Net loss before tax (192,569) (230,359) The unaudited pro forma financial information for all periods presented above has been calculated after adjusting the results of Thrive to reflect the business combination accounting effects resulting from this combination. The Company incurred $86.2 million of stock-based compensation expense related to accelerated vesting in connection with the acquisition, $13.5 million of stock-based compensation expense related to accelerated vesting for employees with qualifying termination events, and $10.3 million of transaction costs incurred to execute the acquisition. These expenses are included in general and administrative expenses on the condensed consolidated statement of operations for the three months ended March 31, 2021 and are reflected in pro forma earnings for the three months ended March 31, 2020 in the table above. The Company recorded a realized gain of $30.5 million during the three months ended March 31, 2021 in investment income, net on the Company’s condensed consolidated statement of operations relating to the Company’s pre-acquisition investment in Thrive. This gain has been adjusted to $7.6 million based on the Company’s interest in Thrive as of January 1, 2020 and is reflected in pro forma earnings for the three months ended March 31, 2020 in the table above. The historical consolidated financial statements have been adjusted in the unaudited pro forma combined financial information to give effect to pro forma events that are directly attributable to the business combination and factually supportable. The unaudited pro forma financial information is for informational purposes only and is not indicative of the results of operations that would have been achieved if the combination had taken place as of January 1, 2020. During 2021, the Company incurred $10.3 million of acquisition-related costs recorded in general and administrative expenses in the condensed consolidated statement of operations. These costs include fees associated with financial, legal, accounting and other advisors incurred to complete the merger. In connection with acquisition-related severances, the Company recorded $13.5 million of expense related to vesting of previously unvested equity awards and $2.0 million of additional benefit charges in the first quarter of 2021. Paradigm Diagnostics, Inc. and Viomics, Inc. On March 3, 2020, the Company acquired all of the outstanding capital stock of Paradigm and Viomics, two related party companies of one another headquartered in Phoenix, Arizona, in transactions that were deemed to be a single business combination in accordance with ASC 805, Business Combinations, (“the Paradigm Acquisition”). Paradigm provides comprehensive genomic-based profiling tests that assist in the diagnosis and therapy recommendations for late-stage cancer. Viomics provides a platform for identification of biomarkers. The Company entered into this acquisition to enhance its product portfolio in cancer diagnostics and to enhance its capabilities for biomarker identification. The acquisition date fair value of the consideration to be transferred for Paradigm and Viomics was $40.4 million, which consists of $32.2 million payable in shares of the Company’s common stock and $8.2 million which was settled through a cash payment. Of the $32.2 million to be settled through the issuance of common stock, $28.8 million was issued as of March 31, 2021, and the remaining $3.4 million, which was withheld and may become payable as additional merger consideration, is included in other current liabilities in the condensed consolidated balance sheet as of March 31, 2021. The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values as follows: (In thousands) Preliminary Allocation Measurement Period Adjustments Final Allocation Net operating assets $ 6,133 $ (760) $ 5,373 Goodwill 29,695 736 30,431 Developed technology 7,800 — 7,800 Net operating liabilities (3,123) (80) (3,203) Total purchase price $ 40,505 $ (104) $ 40,401 The measurement period adjustments primarily related to accounts receivable valuation and working capital adjustments. The fair value of identifiable intangible assets has been determined using the income approach, which involves significant unobservable inputs (Level 3 inputs). These inputs include projected sales, margin, weighted average cost of capital and tax rate. Developed technology represents purchased technology that had reached technological feasibility and for which development had been completed as of the acquisition date. Fair value was determined using future discounted cash flows related to the projected income stream of the developed technology for a discrete projection period. Cash flows were discounted to their present value as of the closing date. Developed technology is amortized on a straight-line basis over its estimated useful life of 15 years. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill, which is primarily attributed to the assembled workforce, and expected synergies. The total goodwill related to this acquisition is not deductible for tax purposes. The Company agreed to issue to the previous investors in Viomics equity interests with an acquisition-date fair value of up to $8.4 million in Viomics, vesting over 4 years based on certain retention arrangements. Payment is contingent upon continued employment with the Company over the four Pro forma disclosures have not been included due to immateriality. Asset Acquisitions TARDIS License Agreement On January 11 2021, the Company entered into a worldwide exclusive license to the proprietary TARDIS technology from TGen, an affiliate of City of Hope. Under the agreement, the Company acquired a royalty-free, worldwide exclusive license to proprietary TARDIS patents and know-how. The Company intends to develop and commercialize the TARDIS technology as a minimal residual disease (“MRD”) test. The Company accounted for this transaction as an asset acquisition. In connection with the asset acquisition, the Company paid upfront fair value consideration of $52.3 million comprised of $25.0 million in cash and issuance of 0.2 million shares of common stock valued at $27.3 million based on the average of the high and low market price of the Company’s shares on the acquisition date. In addition, the Company is obligated to make milestone payments to TGen of $10.0 million and $35.0 million upon achieving cumulative product revenue related to MRD detection and/or treatment totaling $100.0 million and $250.0 million, respectively. These payments are contingent upon achievement of these cumulative revenues on or before December 31, 2030. The upfront consideration was recorded to research and development expense in the condensed consolidated statement of operations immediately after acquisition as the asset was deemed to be incomplete and had no alternative future use at the time of acquisition. The Company will record the sales milestones once achievement is deemed probable. No acquisition related costs were incurred in this asset acquisition. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION Management determined that the Company functions as a single operating segment, and thus reports as a single reportable segment. This operating segment is focused on the development and global commercialization of clinical laboratory services allowing healthcare providers and patients to make individualized treatment decisions. Management assessed the discrete financial information routinely reviewed by the Company's Chief Operating Decision Maker, its President and Chief Executive Officer, to monitor the Company's operating performance and support decisions regarding allocation of resources to its operations. Performance is continuously monitored at the consolidated level to timely identify deviations from expected results. The following table summarizes total revenue from customers by geographic region. Product revenues are attributed to countries based on ship-to location. Three Months Ended March 31, (In thousands) 2021 2020 United States $ 376,021 $ 326,885 Outside of United States 26,056 20,936 Total revenues $ 402,077 $ 347,821 Long-lived assets located in countries outside of the United States are not significant. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded an income tax benefit of $242.8 million and a benefit of $2.2 million for the three months ended March 31, 2021 and 2020, respectively. The Company’s income tax benefit recorded during the three months ended March 31, 2021, is primarily related to an income tax benefit of $239.2 million recorded as a result of the change in the deferred tax asset valuation allowance resulting from the Thrive Merger. In connection with the Thrive Merger, a deferred tax liability was recorded for identified intangible assets. These deferred tax liabilities are considered a source of future taxable income which allowed the Company to reduce its pre-merger deferred tax asset valuation allowance As a result, a deferred tax liability of approximately $38.9 million was recorded as of March 31, 2021, which is included in other long-term liabilities on the Company’s condensed consolidated balance sheet. The Company’s income tax benefit recorded during the three months ended March 31, 2020 was primarily related to future limitations on and expiration of certain Federal and State deferred tax assets. The Company continues to maintain a full valuation allowance against its deferred tax assets based on management’s determination that it is more likely than not the benefit will not be realized. The Company had $17.7 million and $16.6 million of unrecognized tax benefits at March 31, 2021 and December 31, 2020, respectively. These amounts have been recorded as a reduction to the Company’s deferred tax asset, if recognized they would not have an impact on the effective tax rate due to the existing valuation allowance. Certain of the Company's unrecognized tax benefits could change due to activities of various tax authorities, including possible settlement of audits, or through normal expiration of various statutes of limitations. The Company does not expect a material change in unrecognized tax benefits in the next twelve months. As of March 31, 2021, due to the carryforward of unutilized net operating losses and research and development credits, the Company is subject to U.S.federal income tax examinations for the tax years 2001 through 2021, and to state income tax examinations for the tax years 2001 through 2021. No interest or penalties related to income taxes have been accrued or recognized as of March 31, 2021. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On April 14, 2021 the Company completed the acquisition of all of the outstanding equity interests of Ashion Analytics, LLC (“Ashion”; such transaction the “Ashion Acquisition”) from PMed Management, LLC (“PMed”), which is a subsidiary of TGen for a fair value of approximately $89.4 million, comprised of $73.2 million, net of cash received, and 125,444 shares of the Company’s common stock with an acquisition date fair value of $16.2 million based on the average of the high and low market price of the Company’s shares on the acquisition date. An additional $20.0 million and $30.0 million would be payable in cash upon the Company’s commercial launch, on or before the tenth anniversary of the Ashion Acquisition, of a test for MRD detection and/or treatment (the “Commercial Launch Milestone”) and the Company’s achievement, on or before the fifth anniversary of the Ashion Acquisition of cumulative revenues from MRD products of $500.0 million (the “MRD Product Revenue Milestone”), respectively. Ashion is a Clinical Laboratory Improvement Amendments (“CLIA”) certified and College of American Pathologists “(CAP”) accredited sequencing lab based in Phoenix, Arizona. Ashion developed GEMExTra®, one of the most comprehensive genomic cancer tests available, and provides access to whole exome, matched germline, and transcriptome sequencing capabilities. Due to the proximity of the completion of the acquisition to the filing of this Form 10-Q, the accounting for the preliminary purchase price allocation is not complete, including the valuation of assets acquired and liabilities assumed. On May 3, 2021, the Company acquired approximately 90% of the outstanding capital stock of PFS Genomics Inc. (“PFS”; such transaction, the “PFS Acquisition”), pursuant to a share purchase agreement. PFS is a healthcare company focused on personalizing treatment for breast cancer patients to improve outcomes and reduce unnecessary treatment. The Company expects this acquisition to expand our ability to help guide early stage breast cancer treatment through individualized radiotherapy treatment decisions. Under the terms of the PFS Acquisition, the Company paid $30.6 million cash at closing. Due to the proximity of the completion of the acquisition to the filing of this Form 10-Q, the accounting for the preliminary purchase price allocation is not complete. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of ConsolidationThe accompanying condensed consolidated financial statements, which include the accounts of Exact Sciences Corporation and those of its wholly owned subsidiaries and variable interest entities, are unaudited and have been prepared on a basis substantially consistent with the Company’s audited financial statements and notes as of and for the year ended December 31, 2020 included in the Company’s Annual Report on Form 10-K (the “2020 Form 10-K”). All intercompany transactions and balances have been eliminated upon consolidation. These condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and follow the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments (consisting only of adjustments of a normal and recurring nature) considered necessary for a fair statement of its financial position, operating results and cash flows for the periods presented. The condensed consolidated balance sheet at December 31, 2020 has been derived from audited financial statements, but does not contain all of the footnote disclosures from the 2020 Form 10-K. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. The statements should be read in conjunction with the audited financial statements and related notes included in the 2020 Form 10-K. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Critical accounting policies are those that affect the Company’s financial statements materially and involve difficult, subjective or complex judgments by management, and actual results could differ from those estimates. These estimates include revenue recognition, valuation of intangible assets and goodwill, and accounting for income taxes among others. The Company’s critical accounting policies and estimates are explained further in the notes to the condensed consolidated financial statements in this Quarterly Report and the 2020 Form 10-K. The spread of the coronavirus (“COVID-19”) has affected many segments of the global economy, including the cancer screening and diagnostics industry. The Company assessed certain accounting matters that generally require consideration of forecasted financial information in context with the information reasonably available to the Company and the unknown future impacts of COVID-19 as of March 31, 2021 and through the date of the filing of this Quarterly Report on Form 10-Q. The accounting matters assessed included, but were not limited to, the Company’s allowance for doubtful accounts and credit losses, equity investments, software, and the carrying value of the goodwill and other long-lived assets. The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in additional material impacts to the Company’s consolidated financial statements in future reporting periods. The pandemic and related precautionary measures began to materially disrupt the Company's operations in March 2020 and may continue to disrupt the business for an unknown period of time. As a result, the pandemic impacted the Company's revenues and operating results for the three months ended March 31, 2021. The ultimate impact of COVID-19 depends on factors beyond the Company’s knowledge or control, including the duration and severity of the outbreak, as well as third-party actions taken to contain its spread and mitigate its public health effects. As a result, the Company is unable to estimate the extent to which COVID-19 will negatively impact its financial results or liquidity. |
Reclassifications | ReclassificationsCertain prior year amounts have been reclassified to conform to the current year presentation in the condensed consolidated financial statements and accompanying notes to the condensed consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In August 2020, The Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2020-06, Debt – Debt with Conversion and Other Options (subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40) . This update simplifies the accounting for convertible debt instruments by removing the beneficial conversion and cash conversion separation models for convertible instruments. Under the update, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives or that do not result in substantial premiums accounted for as paid-in capital. The update also amends the accounting for certain contracts in an entity’s own equity that are currently accounted for as derivatives because of specific settlement provisions. In addition, ASU 2020-06 requires the application of the if-converted method for calculating diluted earnings per share and the treasury stock method will no longer be available. This standard may be adopted through either a modified retrospective method of transition or a full retrospective method of transition. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020. The Company adopted the standard on January 1, 2021 through application of the full retrospective method of transition. This method of adoption was applied to enhance comparability between the periods presented in the Company’s financial statements. The Company applied the standard to convertible notes outstanding as of the date of the first offering of the Company’s outstanding convertible notes as discussed in Note 9. The Company’s convertible debt instruments will be accounted for as a single liability measured at its amortized cost. The notes are no longer bifurcated between debt and equity, rather accounted for entirely as debt at face value net of any discount or premium and issuance costs. Interest expense is comprised of (1) cash interest payments, (2) amortization of any debt discounts or premiums based on the original offering, and (3) amortization of any debt issuance costs. Gain or loss on extinguishment of convertible notes is calculated as the difference between the (i) fair value of the consideration transferred and (ii) the sum of the carrying value of the debt at the time of repurchase. |
Net Loss Per Share | Net Loss Per Share Basic net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted average common shares outstanding during the period. Basic and diluted net loss per share is the same because all outstanding common stock equivalents have been excluded, as they are anti-dilutive as a result of the Company’s losses. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect | The following potentially issuable common shares were not included in the computation of diluted net loss per share because they would have an anti-dilutive effect due to net losses for each period: March 31, (In thousands) 2021 2020 Shares issuable in connection with acquisitions 157 157 Shares issuable upon exercise of stock options 2,633 2,841 Shares issuable upon the release of restricted stock awards 4,433 4,224 Shares issuable upon the release of performance share units 846 599 Shares issuable upon conversion of convertible notes 20,309 20,309 28,378 28,130 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | The following table presents the Company’s revenues disaggregated by revenue source: Three Months Ended March 31, (In thousands) 2021 2020 Screening Medicare Parts B & C $ 101,559 $ 98,159 Commercial 127,874 109,369 Other 10,895 11,924 Total Screening 240,328 219,452 Precision Oncology Medicare Parts B & C $ 43,116 $ 47,034 Commercial 53,255 54,416 International 26,056 20,936 Other 6,980 5,983 Total Precision Oncology 129,407 128,369 COVID-19 Testing $ 32,342 $ — Total $ 402,077 $ 347,821 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table sets forth the Company’s cash, cash equivalents, restricted cash, and marketable securities at March 31, 2021 and December 31, 2020: (In thousands) March 31, 2021 December 31, 2020 Cash, cash equivalents, and restricted cash Cash and money market $ 770,267 $ 901,294 Cash equivalents 333,549 589,994 Restricted cash 284 306 Total cash, cash equivalents, and restricted cash 1,104,100 1,491,594 Marketable securities Available-for-sale debt securities 274,151 347,178 Equity securities — 1,521 Total marketable securities 274,151 348,699 Total cash and cash equivalents, restricted cash and marketable securities $ 1,378,251 $ 1,840,293 |
Schedule of restricted cash and cash equivalents | The following table sets forth the Company’s cash, cash equivalents, restricted cash, and marketable securities at March 31, 2021 and December 31, 2020: (In thousands) March 31, 2021 December 31, 2020 Cash, cash equivalents, and restricted cash Cash and money market $ 770,267 $ 901,294 Cash equivalents 333,549 589,994 Restricted cash 284 306 Total cash, cash equivalents, and restricted cash 1,104,100 1,491,594 Marketable securities Available-for-sale debt securities 274,151 347,178 Equity securities — 1,521 Total marketable securities 274,151 348,699 Total cash and cash equivalents, restricted cash and marketable securities $ 1,378,251 $ 1,840,293 |
Schedule of available-for-sale securities | Available-for-sale debt securities at March 31, 2021 consisted of the following: (In thousands) Amortized Cost Gains in Accumulated Losses in Accumulated Estimated Fair Cash equivalents U.S. government agency securities $ 318,194 $ 5 $ — $ 318,199 Certificates of deposit 15,350 — — 15,350 Total cash equivalents 333,544 5 — 333,549 Marketable securities Corporate bonds 143,885 337 (21) 144,201 U.S. government agency securities 7,105 36 — 7,141 Certificates of deposit 90,360 2 (3) 90,359 Commercial paper 27,992 1 (1) 27,992 Asset backed securities 4,450 8 — 4,458 Total marketable securities 273,792 384 (25) 274,151 Total available-for-sale securities $ 607,336 $ 389 $ (25) $ 607,700 ______________ (1) Gains and losses in accumulated other comprehensive income (loss) (“AOCI”) are reported before tax impact. Available-for-sale debt securities at December 31, 2020 consisted of the following: (In thousands) Amortized Cost Gains in Accumulated Losses in Accumulated Estimated Fair Value Cash equivalents U.S. government agency securities $ 589,986 $ 8 $ — $ 589,994 Total cash equivalents 589,986 8 — 589,994 Marketable securities U.S. government agency securities 207,119 52 — 207,171 Asset backed securities 7,070 24 — 7,094 Corporate bonds 132,301 612 — 132,913 Total marketable securities 346,490 688 — 347,178 Total available-for-sale securities $ 936,476 $ 696 $ — $ 937,172 ______________ (1) Gains and losses in AOCI are reported before tax impact. |
Schedule of contractual maturities of available-for-sale investments | The following table summarizes contractual underlying maturities of the Company’s available-for-sale debt securities at March 31, 2021: Due one year or less Due after one year through four years (In thousands) Cost Fair Value Cost Fair Value Cash equivalents U.S. government agency securities $ 318,194 $ 318,199 $ — $ — Certificates of deposit 15,350 15,350 — — Total cash equivalents 333,544 333,549 — — Marketable securities U.S. government agency securities 7,105 7,141 — — Corporate bonds 119,523 119,857 24,362 24,344 Certificates of deposit 90,360 90,359 — — Asset backed securities — — 4,450 4,458 Commercial paper 27,992 27,992 — — Total marketable securities 244,980 245,349 28,812 28,802 Total $ 578,524 $ 578,898 $ 28,812 $ 28,802 |
Schedule of gross unrealized losses and fair values of investments in an unrealized loss position | The following table summarizes the gross unrealized losses and fair values of available-for-sale debt securities in an unrealized loss position as of March 31, 2021, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: Less than one year One year or greater Total (In thousands) Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Cash equivalents Certificates of deposit $ 11,000 $ — $ — $ — $ 11,000 $ — Total cash equivalents 11,000 — — — 11,000 — Marketable securities Corporate bonds 53,635 (21) — — 53,635 (21) Certificates of deposit 32,347 (3) — — 32,347 (3) Commercial paper 9,999 (1) — — 9,999 (1) Total marketable securities 95,981 (25) — — 95,981 (25) Total available-for-sale securities $ 106,981 $ (25) $ — $ — $ 106,981 $ (25) |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventory consisted of the following: (In thousands) March 31, December 31, Raw materials $ 40,858 $ 43,083 Semi-finished and finished goods 48,175 49,182 Total inventory $ 89,033 $ 92,265 |
PROPERTY, PLANT, AND EQUIPMENT
PROPERTY, PLANT, AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, plant and equipment, net | The estimated useful lives of property, plant and equipment are as follows: (In thousands) Estimated March 31, December 31, Property, plant and equipment Land n/a $ 4,466 $ 4,466 Leasehold and building improvements (1) 138,342 117,865 Land improvements 15 years 4,910 4,864 Buildings 30 - 40 years 200,997 200,980 Computer equipment and computer software 3 years 84,902 75,417 Laboratory equipment 3 - 10 years 156,001 142,110 Furniture and fixtures 3 - 10 years 26,810 24,968 Assets under construction n/a 22,948 18,854 Property, plant and equipment, at cost 639,376 589,524 Accumulated depreciation (156,640) (137,538) Property, plant and equipment, net $ 482,736 $ 451,986 ______________ (1) Lesser of remaining lease term, building life, or estimated useful life. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of net-book value and estimated remaining life and finite lived intangible assets | The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of March 31, 2021: (In thousands) Weighted Average Cost Accumulated Amortization Net Balance at March 31, 2021 Finite-lived intangible assets Trade name 14.6 $ 100,700 $ (8,832) $ 91,868 Customer relationships 12.5 2,700 (449) 2,251 Patents 3.5 10,441 (5,758) 4,683 Acquired developed technology 8.7 814,171 (113,525) 700,646 Supply agreements 6.2 30,000 (5,516) 24,484 Total finite-lived intangible assets 958,012 (134,080) 823,932 In-process research and development n/a 1,250,000 — 1,250,000 Total intangible assets $ 2,208,012 $ (134,080) $ 2,073,932 The following table summarizes the net-book-value and estimated remaining life of the Company’s intangible assets as of December 31, 2020: (In thousands) Weighted Average Cost Accumulated Amortization Net Balance at December 31, 2020 Finite-lived intangible assets Trade name 14.9 $ 100,700 $ (7,258) $ 93,442 Customer relationships 12.8 2,700 (404) 2,296 Patents 3.7 10,441 (5,422) 5,019 Acquired developed technology 9.0 814,171 (93,278) 720,893 Supply agreements 6.5 30,000 (4,527) 25,473 Total intangible assets $ 958,012 $ (110,889) $ 847,123 |
Schedule of estimated future amortization expense, intangible assets | As of March 31, 2021, the estimated future amortization expense associated with the Company’s finite-lived intangible assets for each of the five succeeding fiscal years is as follows: (In thousands) 2021 $ 69,572 2022 92,758 2023 92,755 2024 92,421 2025 91,373 Thereafter 385,053 $ 823,932 |
Schedule of Carrying Amount of Goodwill | The change in the carrying amount of goodwill for the periods ended March 31, 2021 and December 31, 2020 is as follows: (In thousands) Balance, January 1, 2020 $ 1,203,197 Paradigm & Viomics acquisition 30,431 Genomic Health acquisition adjustment (1) 4,044 Balance, December 31, 2020 $ 1,237,672 Thrive acquisition 946,243 Balance, March 31, 2021 $ 2,183,915 ______________ (1) The Company recognized a measurement period adjustment to goodwill related to an increase in Genomic Health’s pre-acquisition deferred tax liability due to finalization of certain income-tax related items. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements along with the level within the fair value hierarchy in which the fair value measurements fall | The following table presents the Company’s fair value measurements as of March 31, 2021 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall. (In thousands) Fair Value at March 31, Quoted Prices Significant Significant Cash, cash equivalents, and restricted cash Cash and money market $ 770,267 $ 770,267 $ — $ — U.S. government agency securities 318,199 — 318,199 — Certificates of deposit 15,350 — 15,350 — Restricted cash 284 284 — — Marketable securities Corporate bonds 144,201 — 144,201 — Certificates of deposit 90,359 — 90,359 — Commercial paper 27,992 — 27,992 — U.S. government agency securities 7,141 — 7,141 — Asset backed securities 4,458 — 4,458 — Liabilities Contingent consideration (336,540) — — (336,540) Total $ 1,041,711 $ 770,551 $ 607,700 $ (336,540) The following table presents the Company’s fair value measurements as of December 31, 2020 along with the level within the fair value hierarchy in which the fair value measurements, in their entirety, fall. (In thousands) Fair Value at December 31, Quoted Prices Significant Significant Cash and cash equivalents Cash and money market $ 901,294 $ 901,294 $ — $ — U.S. government agency securities 589,994 — 589,994 — Restricted cash 306 306 — — Marketable securities U.S. government agency securities 207,171 — 207,171 — Corporate bonds 132,913 — 132,913 — Asset backed securities 7,094 — 7,094 — Equity securities 1,521 1,521 — — Liabilities Contingent consideration (2,477) — — (2,477) Total $ 1,837,816 $ 903,121 $ 937,172 $ (2,477) |
Schedule of fair value of contingent consideration | The following table provides a reconciliation of the beginning and ending balances of contingent consideration: Three months ended (In thousands) March 31, 2021 March 31, 2020 Beginning balance, January 1, $ 2,477 $ 2,879 Purchase price contingent consideration (1) 331,348 — Changes in fair value 2,879 — Payments (164) (140) Ending balance, March 31, $ 336,540 $ 2,739 ______________ |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
CONVERTIBLE NOTES [Abstract] | |
Schedule of Convertible note obligations included in the condensed consolidated balance sheets | Convertible note obligations included in the condensed consolidated balance sheet consisted of the following as of March 31, 2021: Fair Value (2) (In thousands) Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount Amount Leveling 2028 Convertible notes - 0.375% $ 1,150,000 $ (21,125) $ 1,128,875 $ 1,493,563 2 2027 Convertible notes - 0.375% 747,500 (13,383) 734,117 1,011,255 2 2025 Convertible notes - 1.000% (1) 315,023 (2,191) 312,832 594,921 2 Convertible note obligations included in the condensed consolidated balance sheet consisted of the following as of December 31, 2020: Fair Value (2) (In thousands) Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount Amount Leveling 2028 Convertible notes - 0.375% $ 1,150,000 $ (21,878) $ 1,128,122 $ 1,526,625 2 2027 Convertible notes - 0.375% 747,500 (13,937) 733,563 992,306 2 2025 Convertible notes - 1.000% (1) 315,049 (2,333) 312,716 601,744 2 ______________ (1) Based on the Company’s share price on the days leading up to March 31, 2021 and December 31, 2020, holders of the 2025 Convertible Notes have the right to convert their debentures. As a result, the 2025 Convertible Notes are included within convertible notes, net, current portion on the condensed consolidated balance sheets. |
Schedule of Allocation of Transaction Costs Related to Convertible Debt | The following table summarizes the original issuance costs at the time of issuance for each set of Notes: (In thousands) January 2025 Notes $ 10,284 June 2025 Notes 7,363 2027 Notes 14,285 2028 Notes 24,453 |
Schedule of interest expense | Interest expense includes the following: Three Months Ended March 31, (In thousands) 2021 2020 Coupon interest expense $ 2,567 $ 1,932 Amortization of debt discount and issuance costs 1,449 1,009 Loss on settlement of convertible notes — 50,819 Total interest expense on convertible notes 4,016 53,760 Other interest expense 600 844 Total interest expense $ 4,616 $ 54,604 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of amounts recognized in accumulated other comprehensive income (loss) (AOCI) | The amount recognized in AOCI for the three months ended March 31, 2021 were as follows: (In thousands) Unrealized Accumulated Balance at December 31, 2020 $ 526 $ 526 Other comprehensive loss before reclassifications (292) (292) Amounts reclassified from accumulated other comprehensive loss (40) (40) Net current period change in accumulated other comprehensive loss, before tax (332) (332) Income tax expense related to items of other comprehensive income 170 170 Balance at March 31, 2021 $ 364 $ 364 The amounts recognized in AOCI for the three months ended March 31, 2020 were as follows: (In thousands) Foreign Unrealized Accumulated Balance at December 31, 2019 $ (25) $ (75) $ (100) Other comprehensive loss before reclassifications — (1,642) (1,642) Amounts reclassified from accumulated other comprehensive loss 25 — 25 Net current period change in accumulated other comprehensive loss 25 (1,642) (1,617) Balance at March 31, 2020 $ — $ (1,717) $ (1,717) ______________ |
Schedule of amounts reclassified from accumulated other comprehensive income (loss) | Amounts reclassified from AOCI for the three months ended March 31, 2021 and 2020 were as follows: Affected Line Item in the Three Months Ended March 31, Details about AOCI Components (In thousands) 2021 2020 Change in value of available-for-sale investments Sales and maturities of available-for-sale investments Investment income, net $ (40) $ — Foreign currency adjustment General and administrative — 25 Total reclassifications $ (40) $ 25 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of valuation assumptions | The Company determines the fair value of each service-based option award on the date of grant using the Black-Scholes option-pricing model, which utilizes several key assumptions which are disclosed in the following table: Three Months Ended March 31, 2021 2020 Option Plan Shares Risk-free interest rates (1) 1.26% - 1.47% Expected term (in years) (1) 6.15 Expected volatility (1) 65.67% - 65.71% Dividend yield (1) —% ______________ (1) The Company did not grant stock options under its 2010 Omnibus Long-Term Incentive Plan or 2019 Omnibus Long-Term Incentive Plan during the period. A summary of stock option activity under the Stock Plans is as follows: Options Shares Weighted Weighted Aggregate (Aggregate intrinsic value in thousands) Outstanding, January 1, 2021 2,231,059 $ 39.67 6.0 Granted — — Assumed through acquisition 1,393,748 5.51 Exercised (967,135) 9.06 Forfeited (24,850) 66.87 Outstanding, March 31, 2021 2,632,822 $ 32.57 6.5 $ 261,190 Vested and expected to vest, March 31, 2021 2,632,822 $ 32.57 6.5 $ 261,190 Exercisable, March 31, 2021 1,895,614 $ 25.36 5.8 $ 201,724 ______________ (1) The weighted average grant date fair value of options granted during the three months ended March 31, 2020 was $58.86. (2) The total intrinsic value of options exercised during the three months ended March 31, 2021 and 2020 was $126.0 million and $10.2 million, respectively, determined as of the date of exercise. |
Summary of restricted stock and restricted stock unit activity under the Stock Plans | A summary of restricted stock and restricted stock unit activity during the three months ended March 31, 2021 is as follows: Restricted stock and restricted stock units Shares Weighted Outstanding, January 1, 2021 3,968,214 $ 79.39 Granted 1,540,278 143.66 Assumed through acquisition 242,123 127.79 Released (1) (1,197,282) 67.58 Forfeited (86,286) 94.47 Outstanding, March 31, 2021 4,467,047 $ 107.05 ______________ (1) The fair value of restricted stock units vested and converted to shares of the Company’s common stock was $80.9 million and $54.6 million during the three months ended March 31, 2021 and 2020, respectively. (2) The weighted average grant date fair value of the restricted stock units granted during the three months ended March 31, 2020 was $93.21. |
Share-based Payment Arrangement, Performance Shares, Activity | A summary of performance share-based compensation arrangements granted under all equity compensation unit activity is as follows: Performance share units Shares (1) Weighted Outstanding, January 1, 2021 618,515 $ 93.22 Granted 229,618 147.81 Released — — Forfeited (2,075) 147.81 Outstanding, March 31, 2021 846,058 $ 107.90 ______________ (1) The performance share units listed above assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding performance share units as of March 31, 2021 was 239,533. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supplemental disclosure of cash flow information related to our operating leases | Supplemental disclosure of cash flow information related to the Company’s cash and non-cash activities with its leases are as follows: Three Months Ended March 31, 2021 (In thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,558 $ 5,619 Operating cash flows from finance leases 248 5 Finance cash flows from finance leases 1,203 61 Non-cash investing and financing activities: Right-of-use assets obtained in exchange for new operating lease liabilities (1) 40,406 1,254 Right-of-use assets obtained in exchange for new finance lease liabilities 639 663 Weighted-average remaining lease term - operating leases (in years) 8.69 9.50 Weighted-average remaining lease term - finance leases (in years) 3.45 2.60 Weighted-average discount rate - operating leases 6.41 % 6.78 % Weighted-average discount rate - finance leases 5.66 % 5.44 % _____________ (1) For the three months ended March 31, 2021, this includes right-of-use assets acquired as part of the acquisition of Thrive of $39.0 million. |
BUSINESS COMBINATIONS AND ASS_2
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The combination date fair value of the consideration transferred for Thrive was approximately $2.19 billion, which consisted of the following: (In thousands) Common stock issued $ 1,175,431 Cash 584,996 Contingent consideration 331,348 Fair value of replaced equity awards 52,245 Previously held equity investment fair value 43,034 Total purchase price $ 2,187,054 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value of options assumed were based on the assumptions in the following table: Option Plan Shares Assumed Risk-free interest rates 0.11% - 0.12% Expected term (in years) 1.26 - 1.57 Expected volatility 65.54% - 71.00% Dividend yield —% Weighted average fair value per share of options assumed $109.74 - $124.89 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. (In thousands) Cash and cash equivalents $ 241,748 Prepaid expenses and other current assets 3,939 Property, plant and equipment 29,977 Operating lease right-of-use assets 39,027 Other long-term assets 67 In-process research and development (IPR&D) 1,250,000 Total identifiable assets acquired $ 1,564,758 Accounts payable (3,222) Accrued liabilities (6,218) Operating lease liabilities, current portion (2,980) Operating lease liabilities, less current portion (38,622) Deferred tax liability (272,905) Total liabilities assumed $ (323,947) Net identifiable assets acquired $ 1,240,811 Goodwill 946,243 Net assets acquired $ 2,187,054 (In thousands) Preliminary Allocation Measurement Period Adjustments Final Allocation Net operating assets $ 6,133 $ (760) $ 5,373 Goodwill 29,695 736 30,431 Developed technology 7,800 — 7,800 Net operating liabilities (3,123) (80) (3,203) Total purchase price $ 40,505 $ (104) $ 40,401 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma financial information summarizes the combined results of operations for the Company and Thrive, as though the companies were combined as of the beginning of January 1, 2020. Three Months Ended March 31, (In thousands) 2021 2020 Total revenues $ 402,077 $ 347,821 Net loss before tax (192,569) (230,359) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | The following table summarizes total revenue from customers by geographic region. Product revenues are attributed to countries based on ship-to location. Three Months Ended March 31, (In thousands) 2021 2020 United States $ 376,021 $ 326,885 Outside of United States 26,056 20,936 Total revenues $ 402,077 $ 347,821 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Recent Accounting Pronouncements (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||||
Feb. 29, 2020 | Mar. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | $ 3,648,995 | $ 1,895,752 | $ 2,235,552 | $ 1,957,548 | |||
Increase in current portion of convertible notes | 312,832 | 312,716 | |||||
Increase in convertible notes, net | 1,862,992 | 1,861,685 | |||||
Other long-term liabilities | 414,195 | 51,342 | |||||
Interest expense | 4,616 | 54,604 | |||||
Amortization of debt discount and issuance costs | 1,449 | 1,009 | |||||
Loss on settlement of convertible notes | $ 50,800 | $ 187,700 | 0 | 50,819 | |||
Tax expense (benefit) | (242,805) | (2,237) | |||||
Additional Paid-In Capital | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | 5,723,977 | 3,252,998 | 4,279,327 | 3,178,552 | |||
Accumulated Deficit | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | $ (2,077,060) | (1,357,024) | (2,045,896) | (1,222,381) | |||
2025 notes | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Amount of debt extinguished | $ 100,000 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Deferred tax assets, net | 146,000 | 83,200 | $ 55,700 | ||||
Deferred tax assets, valuation allowance | 135,800 | 74,700 | 55,700 | ||||
Deferred tax liability | (10,200) | (8,500) | |||||
Increase in current portion of convertible notes | 57,300 | ||||||
Increase in convertible notes, net | (540,900) | ||||||
Other long-term liabilities | (10,200) | ||||||
Interest expense | 29,400 | ||||||
Amortization of debt discount and issuance costs | (13,400) | ||||||
Loss on settlement of convertible notes | 42,800 | ||||||
Tax expense (benefit) | $ (500) | ||||||
Increase in net loss per share (in usd per share) | $ 0.20 | ||||||
Increase in net loss per share (in usd per share) | $ 0.20 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | (510,300) | (227,800) | (260,200) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | $ (77,700) | $ (102,600) | $ 26,600 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Common shares not included in the computation of diluted net loss per share | ||
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect | 28,378 | 28,130 |
Shares issuable in connection with acquisitions | ||
Common shares not included in the computation of diluted net loss per share | ||
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect | 157 | 157 |
Shares issuable upon exercise of stock options | ||
Common shares not included in the computation of diluted net loss per share | ||
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect | 2,633 | 2,841 |
Shares issuable upon the release of restricted stock awards | ||
Common shares not included in the computation of diluted net loss per share | ||
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect | 4,433 | 4,224 |
Shares issuable upon the release of performance share units | ||
Common shares not included in the computation of diluted net loss per share | ||
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect | 846 | 599 |
Shares issuable upon conversion of convertible notes | ||
Common shares not included in the computation of diluted net loss per share | ||
Potentially issuable common shares not included in the computation of diluted net loss per share because they would have an anti-dilutive effect | 20,309 | 20,309 |
REVENUE - Schedule of Disaggreg
REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 402,077 | $ 347,821 |
Screening | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 240,328 | 219,452 |
Screening | Medicare Parts B & C | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 101,559 | 98,159 |
Screening | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 127,874 | 109,369 |
Screening | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 10,895 | 11,924 |
Precision Oncology | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 129,407 | 128,369 |
Precision Oncology | Medicare Parts B & C | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 43,116 | 47,034 |
Precision Oncology | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 53,255 | 54,416 |
Precision Oncology | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 26,056 | 20,936 |
Precision Oncology | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | 6,980 | 5,983 |
COVID-19 Testing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue recognized | $ 32,342 | $ 0 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 39.8 | $ 25 | |
Deferred revenue, revenue recognized during period | 14 | $ 0.2 | |
COVID-19 | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | 38.5 | ||
Deferred revenue, revenue recognized during period | 13.8 | ||
Variable consideration | |||
Disaggregation of Revenue [Line Items] | |||
Revenue recognized from changes in transaction prices | $ 1.7 | $ 5.4 |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | ||
Equity securities, realized gain | $ 16 | $ 700 |
MARKETABLE SECURITIES - Schedul
MARKETABLE SECURITIES - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Cash and cash equivalents, and restricted cash | $ 1,104,100 | $ 1,491,594 |
Available-for-sale debt securities | 607,700 | 937,172 |
Equity securities | 0 | 1,521 |
Total marketable securities | 274,151 | 348,699 |
Total cash and cash equivalents, restricted cash and marketable securities | 1,378,251 | 1,840,293 |
Cash equivalents | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, and restricted cash | 333,549 | 589,994 |
Available-for-sale debt securities | 333,549 | 589,994 |
Marketable securities | ||
Marketable Securities [Line Items] | ||
Available-for-sale debt securities | 274,151 | 347,178 |
Cash and money market | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, and restricted cash | 770,267 | 901,294 |
Restricted cash | ||
Marketable Securities [Line Items] | ||
Cash and cash equivalents, and restricted cash | $ 284 | $ 306 |
MARKETABLE SECURITIES - Sched_2
MARKETABLE SECURITIES - Schedule of Available For Sale Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale securities | ||
Amortized Cost | $ 607,336 | $ 936,476 |
Gains in Accumulated Other Comprehensive Income (Loss) | 389 | 696 |
Losses in Accumulated Other Comprehensive Income (Loss) | (25) | 0 |
Estimated Fair Value | 607,700 | 937,172 |
Cash equivalents | ||
Available-for-sale securities | ||
Amortized Cost | 333,544 | 589,986 |
Gains in Accumulated Other Comprehensive Income (Loss) | 5 | 8 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Estimated Fair Value | 333,549 | 589,994 |
Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 273,792 | 346,490 |
Gains in Accumulated Other Comprehensive Income (Loss) | 384 | 688 |
Losses in Accumulated Other Comprehensive Income (Loss) | (25) | 0 |
Estimated Fair Value | 274,151 | 347,178 |
U.S. government agency securities | Cash equivalents | ||
Available-for-sale securities | ||
Amortized Cost | 318,194 | 589,986 |
Gains in Accumulated Other Comprehensive Income (Loss) | 5 | 8 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Estimated Fair Value | 318,199 | 589,994 |
U.S. government agency securities | Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 7,105 | 207,119 |
Gains in Accumulated Other Comprehensive Income (Loss) | 36 | 52 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Estimated Fair Value | 7,141 | 207,171 |
Asset backed securities | Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 4,450 | 7,070 |
Gains in Accumulated Other Comprehensive Income (Loss) | 8 | 24 |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | 0 |
Estimated Fair Value | 4,458 | 7,094 |
Corporate bonds | Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 143,885 | 132,301 |
Gains in Accumulated Other Comprehensive Income (Loss) | 337 | 612 |
Losses in Accumulated Other Comprehensive Income (Loss) | (21) | 0 |
Estimated Fair Value | 144,201 | $ 132,913 |
Certificates of deposit | Cash equivalents | ||
Available-for-sale securities | ||
Amortized Cost | 15,350 | |
Gains in Accumulated Other Comprehensive Income (Loss) | 0 | |
Losses in Accumulated Other Comprehensive Income (Loss) | 0 | |
Estimated Fair Value | 15,350 | |
Certificates of deposit | Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 90,360 | |
Gains in Accumulated Other Comprehensive Income (Loss) | 2 | |
Losses in Accumulated Other Comprehensive Income (Loss) | (3) | |
Estimated Fair Value | 90,359 | |
Commercial paper | Marketable securities | ||
Available-for-sale securities | ||
Amortized Cost | 27,992 | |
Gains in Accumulated Other Comprehensive Income (Loss) | 1 | |
Losses in Accumulated Other Comprehensive Income (Loss) | (1) | |
Estimated Fair Value | $ 27,992 |
MARKETABLE SECURITIES - Sched_3
MARKETABLE SECURITIES - Schedule of Underlying Maturities of AFS Securities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Available-for-sale securities | |
Due in one year or less, Cost | $ 578,524 |
Due in one year or less, Fair Value | 578,898 |
Due after one year through four years, Cost | 28,812 |
Due after one year through four years, Fair Value | 28,802 |
Cash equivalents | |
Available-for-sale securities | |
Due in one year or less, Cost | 333,544 |
Due in one year or less, Fair Value | 333,549 |
Cash equivalents | U.S. government agency securities | |
Available-for-sale securities | |
Due in one year or less, Cost | 318,194 |
Due in one year or less, Fair Value | 318,199 |
Cash equivalents | Certificates of deposit | |
Available-for-sale securities | |
Due in one year or less, Cost | 15,350 |
Due in one year or less, Fair Value | 15,350 |
Marketable securities | |
Available-for-sale securities | |
Due in one year or less, Cost | 244,980 |
Due in one year or less, Fair Value | 245,349 |
Due after one year through four years, Cost | 28,812 |
Due after one year through four years, Fair Value | 28,802 |
Marketable securities | U.S. government agency securities | |
Available-for-sale securities | |
Due in one year or less, Cost | 7,105 |
Due in one year or less, Fair Value | 7,141 |
Due after one year through four years, Cost | 0 |
Due after one year through four years, Fair Value | 0 |
Marketable securities | Corporate bonds | |
Available-for-sale securities | |
Due in one year or less, Cost | 119,523 |
Due in one year or less, Fair Value | 119,857 |
Due after one year through four years, Cost | 24,362 |
Due after one year through four years, Fair Value | 24,344 |
Marketable securities | Certificates of deposit | |
Available-for-sale securities | |
Due in one year or less, Cost | 90,360 |
Due in one year or less, Fair Value | 90,359 |
Due after one year through four years, Cost | 0 |
Due after one year through four years, Fair Value | 0 |
Marketable securities | Asset backed securities | |
Available-for-sale securities | |
Due in one year or less, Cost | 0 |
Due in one year or less, Fair Value | 0 |
Due after one year through four years, Cost | 4,450 |
Due after one year through four years, Fair Value | 4,458 |
Marketable securities | Commercial paper | |
Available-for-sale securities | |
Due in one year or less, Cost | 27,992 |
Due in one year or less, Fair Value | 27,992 |
Due after one year through four years, Cost | 0 |
Due after one year through four years, Fair Value | $ 0 |
MARKETABLE SECURITIES - Sched_4
MARKETABLE SECURITIES - Schedule of Gross Unrealized Losses And Fair Value of Available For Sale Securities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | $ 106,981 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | (25) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 106,981 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | (25) |
Cash equivalents | |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 11,000 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 11,000 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | 0 |
Marketable securities | |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 95,981 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | (25) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 95,981 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | (25) |
Certificates of deposit | Cash equivalents | |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 11,000 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 11,000 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | 0 |
Certificates of deposit | Marketable securities | |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 32,347 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | (3) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 32,347 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | (3) |
Corporate bonds | Marketable securities | |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 53,635 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | (21) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 53,635 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | (21) |
Commercial paper | Marketable securities | |
Marketable Securities [Line Items] | |
Total fair value of available-for-sale securities in a continuous unrealized loss position for less than twelve months | 9,999 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position for less than twelve months | (1) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months of longer, accumulated loss | 0 |
Total fair value of available-for-sale securities in a continuous unrealized loss position | 9,999 |
Total gross unrealized losses of available-for-sale securities in a continuous unrealized loss position | $ (1) |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 40,858 | $ 43,083 |
Semi-finished and finished goods | 48,175 | 49,182 |
Total inventory | $ 89,033 | $ 92,265 |
PROPERTY, PLANT, AND EQUIPMEN_2
PROPERTY, PLANT, AND EQUIPMENT - Schedule of Estimated Useful Lives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 639,376 | $ 589,524 |
Accumulated depreciation | (156,640) | (137,538) |
Property, plant and equipment, net | 482,736 | 451,986 |
Land | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | 4,466 | 4,466 |
Leasehold and building improvements | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 138,342 | 117,865 |
Land improvements | ||
Property, plant and equipment | ||
Estimated Useful Life | 15 years | |
Property, plant and equipment, at cost | $ 4,910 | 4,864 |
Buildings | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 200,997 | 200,980 |
Computer equipment and computer software | ||
Property, plant and equipment | ||
Estimated Useful Life | 3 years | |
Property, plant and equipment, at cost | $ 84,902 | 75,417 |
Laboratory equipment | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | 156,001 | 142,110 |
Furniture and fixtures | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | 26,810 | 24,968 |
Assets under construction | ||
Property, plant and equipment | ||
Property, plant and equipment, at cost | $ 22,948 | $ 18,854 |
Minimum | Buildings | ||
Property, plant and equipment | ||
Estimated Useful Life | 30 years | |
Minimum | Laboratory equipment | ||
Property, plant and equipment | ||
Estimated Useful Life | 3 years | |
Minimum | Furniture and fixtures | ||
Property, plant and equipment | ||
Estimated Useful Life | 3 years | |
Maximum | Buildings | ||
Property, plant and equipment | ||
Estimated Useful Life | 40 years | |
Maximum | Laboratory equipment | ||
Property, plant and equipment | ||
Estimated Useful Life | 10 years | |
Maximum | Furniture and fixtures | ||
Property, plant and equipment | ||
Estimated Useful Life | 10 years |
PROPERTY, PLANT, AND EQUIPMEN_3
PROPERTY, PLANT, AND EQUIPMENT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Property, plant and equipment | |||
Depreciation | $ 20,500 | $ 16,000 | |
Property, plant and equipment, at cost | 639,376 | $ 589,524 | |
Laboratory equipment | |||
Property, plant and equipment | |||
Property, plant and equipment, at cost | 156,001 | 142,110 | |
Assets under construction | 7,400 | ||
Leasehold and building improvements | |||
Property, plant and equipment | |||
Property, plant and equipment, at cost | 138,342 | 117,865 | |
Assets under construction | 8,900 | ||
Assets under construction | |||
Property, plant and equipment | |||
Property, plant and equipment, at cost | 22,948 | 18,854 | |
Computer software | |||
Property, plant and equipment | |||
Assets under construction | 6,600 | ||
Furniture and fixtures | |||
Property, plant and equipment | |||
Property, plant and equipment, at cost | $ 26,810 | $ 24,968 |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL - Schedule of Finite Lived Intangible Assets Net Balances and Weighted Average Useful Lives (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 958,012 | |
Less: Accumulated amortization | (134,080) | $ (110,889) |
Intangibles, net | 823,932 | |
In-process research and development | 1,250,000 | |
Finite-lived and indefinite-lived intangible assets, gross | 2,208,012 | 958,012 |
Finite-lived and indefinite-lived intangible assets, net | $ 2,073,932 | $ 847,123 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 14 years 7 months 6 days | 14 years 10 months 24 days |
Finite-lived intangible assets, gross | $ 100,700 | $ 100,700 |
Less: Accumulated amortization | (8,832) | (7,258) |
Intangibles, net | $ 91,868 | $ 93,442 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 12 years 6 months | 12 years 9 months 18 days |
Finite-lived intangible assets, gross | $ 2,700 | $ 2,700 |
Less: Accumulated amortization | (449) | (404) |
Intangibles, net | $ 2,251 | $ 2,296 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 3 years 6 months | 3 years 8 months 12 days |
Finite-lived intangible assets, gross | $ 10,441 | $ 10,441 |
Less: Accumulated amortization | (5,758) | (5,422) |
Intangibles, net | $ 4,683 | $ 5,019 |
Acquired developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 8 years 8 months 12 days | 9 years |
Finite-lived intangible assets, gross | $ 814,171 | $ 814,171 |
Less: Accumulated amortization | (113,525) | (93,278) |
Intangibles, net | $ 700,646 | $ 720,893 |
Supply agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 6 years 2 months 12 days | 6 years 6 months |
Finite-lived intangible assets, gross | $ 30,000 | $ 30,000 |
Less: Accumulated amortization | (5,516) | (4,527) |
Intangibles, net | $ 24,484 | $ 25,473 |
INTANGIBLE ASSETS AND GOODWIL_3
INTANGIBLE ASSETS AND GOODWILL - Schedule of Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 69,572 |
2022 | 92,758 |
2023 | 92,755 |
2024 | 92,421 |
2025 | 91,373 |
Thereafter | 385,053 |
Intangibles, net | $ 823,932 |
INTANGIBLE ASSETS AND GOODWIL_4
INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Impairment of intangible assets, finite-lived | $ 0 | $ 0 |
INTANGIBLE ASSETS AND GOODWIL_5
INTANGIBLE ASSETS AND GOODWILL - Schedule of Changes in Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Recognized Goodwill | ||||
Goodwill, beginning balance | $ 1,237,672 | $ 1,203,197 | $ 1,203,197 | |
Goodwill, ending balance | 2,183,915 | 1,237,672 | ||
Impairment losses | 0 | $ 0 | ||
Paradigm & Viomics | ||||
Recognized Goodwill | ||||
Goodwill acquired during the period | $ 30,431 | |||
Merger Agreement with Genomic Health, Inc. | ||||
Recognized Goodwill | ||||
Genomic Health acquisition adjustment | $ 4,044 | |||
Thrive | ||||
Recognized Goodwill | ||||
Goodwill acquired during the period | $ 946,243 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | $ 1,104,100 | $ 1,491,594 |
Estimated Fair Value | 607,700 | 937,172 |
Equity securities | 0 | 1,521 |
Restricted cash | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 284 | 306 |
Fair Value, Recurring | ||
Fair value measurements | ||
Equity securities | 1,521 | |
Contingent consideration | (336,540) | (2,477) |
Total | 1,041,711 | 1,837,816 |
Fair Value, Recurring | Corporate bonds | ||
Fair value measurements | ||
Estimated Fair Value | 144,201 | 132,913 |
Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Estimated Fair Value | 90,359 | |
Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Estimated Fair Value | 27,992 | |
Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Estimated Fair Value | 7,141 | 207,171 |
Fair Value, Recurring | Asset backed securities | ||
Fair value measurements | ||
Estimated Fair Value | 4,458 | 7,094 |
Fair Value, Recurring | Cash and money market | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 770,267 | 901,294 |
Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 318,199 | 589,994 |
Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 15,350 | |
Fair Value, Recurring | Restricted cash | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 284 | 306 |
Level 1 | Fair Value, Recurring | ||
Fair value measurements | ||
Equity securities | 1,521 | |
Contingent consideration | 0 | 0 |
Total | 770,551 | 903,121 |
Level 1 | Fair Value, Recurring | Corporate bonds | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Estimated Fair Value | 0 | |
Level 1 | Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Estimated Fair Value | 0 | |
Level 1 | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Asset backed securities | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Level 1 | Fair Value, Recurring | Cash and money market | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 770,267 | 901,294 |
Level 1 | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | 0 |
Level 1 | Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | |
Level 1 | Fair Value, Recurring | Restricted cash | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 284 | 306 |
Level 2 | Fair Value, Recurring | ||
Fair value measurements | ||
Equity securities | 0 | |
Contingent consideration | 0 | 0 |
Total | 607,700 | 937,172 |
Level 2 | Fair Value, Recurring | Corporate bonds | ||
Fair value measurements | ||
Estimated Fair Value | 144,201 | 132,913 |
Level 2 | Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Estimated Fair Value | 90,359 | |
Level 2 | Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Estimated Fair Value | 27,992 | |
Level 2 | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Estimated Fair Value | 7,141 | 207,171 |
Level 2 | Fair Value, Recurring | Asset backed securities | ||
Fair value measurements | ||
Estimated Fair Value | 4,458 | 7,094 |
Level 2 | Fair Value, Recurring | Cash and money market | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | 0 |
Level 2 | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 318,199 | 589,994 |
Level 2 | Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 15,350 | |
Level 2 | Fair Value, Recurring | Restricted cash | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | 0 |
Level 3 | Fair Value, Recurring | ||
Fair value measurements | ||
Equity securities | 0 | |
Contingent consideration | (336,540) | (2,477) |
Total | (336,540) | (2,477) |
Level 3 | Fair Value, Recurring | Corporate bonds | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Estimated Fair Value | 0 | |
Level 3 | Fair Value, Recurring | Commercial paper | ||
Fair value measurements | ||
Estimated Fair Value | 0 | |
Level 3 | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Asset backed securities | ||
Fair value measurements | ||
Estimated Fair Value | 0 | 0 |
Level 3 | Fair Value, Recurring | Cash and money market | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | 0 |
Level 3 | Fair Value, Recurring | U.S. government agency securities | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | 0 |
Level 3 | Fair Value, Recurring | Certificates of deposit | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | 0 | |
Level 3 | Fair Value, Recurring | Restricted cash | ||
Fair value measurements | ||
Cash and cash equivalents, and restricted cash | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Thousands | 3 Months Ended | ||||
Mar. 31, 2021USD ($)shares | Mar. 31, 2020USD ($) | Jan. 05, 2021USD ($) | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration | $ 336,540 | $ 2,739 | $ 2,477 | $ 2,879 | |
Investment income, net | $ 31,188 | $ 97 | |||
Product Development and Other Milestone-based Payments | Measurement Input, Probability of Payment | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration liability, measurement input | 0.900 | ||||
Product Development and Other Milestone-based Payments | Minimum | Measurement Input, Present-value Factor | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration liability, measurement input | 0.023 | ||||
Product Development and Other Milestone-based Payments | Maximum | Measurement Input, Present-value Factor | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration liability, measurement input | 0.025 | ||||
Product Development and Other Milestone-based Payments | Weighted Average | Measurement Input, Present-value Factor | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration liability, measurement input | 0.024 | ||||
Foreign Exchange Forward | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Derivative, notional amount | $ 26,400 | 22,400 | |||
Level 3 | Fair Value, Nonrecurring | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment owned, at fair value | 26,700 | 29,100 | |||
Biomatrica, Inc | Revenue and Other Performance-based Payments | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration | $ 2,300 | ||||
Biomatrica, Inc | Revenue and Other Performance-based Payments | Measurement Input, Volume Volatility | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration liability, measurement input | 0.290 | ||||
Biomatrica, Inc | Revenue and Other Performance-based Payments | Measurement Input, Volume Discount Rate | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration liability, measurement input | 0.131 | ||||
Biomatrica, Inc | Revenue and Other Performance-based Payments | Measurement Input, Counter Party Discount Rate | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration liability, measurement input | 0.052 | ||||
Thrive | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration | $ 450,000 | ||||
Thrive | Fair Value | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Contingent consideration | $ 334,200 | $ 352,000 | |||
Epic Sciences | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment owned, at fair value | $ 10,800 | 10,800 | |||
Investment owned (in shares) | shares | 18,258,838 | ||||
Thrive | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment owned, at fair value | $ 12,500 | ||||
Investment owned (in shares) | shares | 5,025,764 | ||||
Renovia, Inc | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Investment owned, at fair value | $ 10,000 | ||||
Investment owned (in shares) | shares | 21,520,648 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ (2,477) | $ (2,879) |
Purchase price contingent consideration | 331,348 | 0 |
Changes in fair value | 2,879 | 0 |
Payments | (164) | (140) |
Ending balance | $ (336,540) | $ (2,739) |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2017USD ($) | Mar. 31, 2021USD ($)employeeagreement | Dec. 31, 2020USD ($) | Nov. 30, 2017USD ($) | |
Long-term debt | |||||
Timeframe when amount will be repaid through property taxes | 2 years | ||||
Other current liabilities | $ 50,626,000 | $ 38,265,000 | |||
Construction Loan Agreement | |||||
Long-term debt | |||||
Face amount | $ 25,600,000 | ||||
Amortization period | 20 years | ||||
Initial investment | $ 16,400,000 | ||||
Amount drawn from loan | 23,400,000 | 23,800,000 | |||
Interest incurred, accrued for as an interest reserve | 700,000 | $ 700,000 | |||
Interest costs capitalized | $ 700,000 | ||||
Debt issuance costs, net | 200,000 | ||||
Minimum liquidity covenant for construction loan | 250,000,000 | ||||
Construction Loan Agreement | 1-month LIBOR | |||||
Long-term debt | |||||
Variable rate | 2.25% | ||||
Tax Increment Financing | |||||
Long-term debt | |||||
Face amount | $ 4,600,000 | $ 4,600,000 | |||
Number of agreements | agreement | 2 | ||||
Number of jobs required to create and maintain | employee | 500 | ||||
Term | 5 years | ||||
City Letter of Credit | |||||
Long-term debt | |||||
Interest-only payment, period | 24 months | ||||
City Letter of Credit | Construction Loan Agreement | |||||
Long-term debt | |||||
Maximum borrowing capacity | $ 600,000 |
CONVERTIBLE NOTES - Schedule of
CONVERTIBLE NOTES - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Feb. 29, 2020 | Mar. 08, 2019 | Jan. 17, 2018 |
Convertible Notes | |||||
Long-term debt | |||||
Coupon Interest Rate | 1.00% | ||||
Notes | |||||
Long-term debt | |||||
Coupon Interest Rate | 0.375% | ||||
2028 Notes | |||||
Long-term debt | |||||
Coupon Interest Rate | 0.375% | 0.375% | 0.375% | ||
Principal Amount | $ 1,150,000 | $ 1,150,000 | |||
Unamortized Debt Discount and Issuance Costs | (21,125) | (21,878) | |||
Net Carrying Amount | 1,128,875 | 1,128,122 | |||
2028 Notes | Level 2 | Fair Value | |||||
Long-term debt | |||||
Convertible notes, fair value | $ 1,493,563 | $ 1,526,625 | |||
2027 Notes | |||||
Long-term debt | |||||
Coupon Interest Rate | 0.375% | 0.375% | |||
Principal Amount | $ 747,500 | $ 747,500 | |||
Unamortized Debt Discount and Issuance Costs | (13,383) | (13,937) | |||
Net Carrying Amount | 734,117 | 733,563 | |||
2027 Notes | Level 2 | Fair Value | |||||
Long-term debt | |||||
Convertible notes, fair value | $ 1,011,255 | $ 992,306 | |||
2025 notes | |||||
Long-term debt | |||||
Coupon Interest Rate | 1.00% | 1.00% | |||
Principal Amount | $ 315,023 | $ 315,049 | |||
Unamortized Debt Discount and Issuance Costs | (2,191) | (2,333) | |||
Net Carrying Amount | 312,832 | 312,716 | |||
2025 notes | Level 2 | Fair Value | |||||
Long-term debt | |||||
Convertible notes, fair value | $ 594,921 | $ 601,744 |
CONVERTIBLE NOTES - Schedule _2
CONVERTIBLE NOTES - Schedule of Transaction Costs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
January 2025 Notes | |
Long-term debt | |
Total transaction costs | $ 10,284 |
June 2025 Notes | |
Long-term debt | |
Total transaction costs | 7,363 |
2027 Notes | |
Long-term debt | |
Total transaction costs | 14,285 |
2028 Notes | |
Long-term debt | |
Total transaction costs | $ 24,453 |
CONVERTIBLE NOTES - Additional
CONVERTIBLE NOTES - Additional information (Details) $ / shares in Units, shares in Millions | Mar. 08, 2019USD ($) | Jun. 12, 2018USD ($) | Jan. 17, 2018USD ($) | Feb. 29, 2020USD ($) | Mar. 31, 2019USD ($)shares | Mar. 31, 2021USD ($)shares$ / shares | Mar. 31, 2020USD ($) | Dec. 31, 2020 |
Long-term debt | ||||||||
Net proceeds from issuance | $ 0 | $ 1,125,547,000 | ||||||
Repayments of debt in cash | $ 0 | 150,054,000 | ||||||
Closing price of common stock (in dollars per share) | $ / shares | $ 131.78 | |||||||
Interest expense | ||||||||
Coupon interest expense | $ 2,567,000 | 1,932,000 | ||||||
Amortization of debt discount and issuance costs | 1,449,000 | 1,009,000 | ||||||
Loss on settlement of convertible notes | $ 50,800,000 | $ 187,700,000 | 0 | 50,819,000 | ||||
Total interest expense on convertible notes | 4,016,000 | 53,760,000 | ||||||
Other interest expense | 600,000 | 844,000 | ||||||
Total interest expense | $ 4,616,000 | $ 54,604,000 | ||||||
Convertible Notes | ||||||||
Long-term debt | ||||||||
Fixed interest rate (as a percent) | 1.00% | |||||||
Net proceeds from issuance | $ 671,100,000 | |||||||
Notes | ||||||||
Long-term debt | ||||||||
Amount issued and sold | $ 747,500,000 | |||||||
Fixed interest rate (as a percent) | 0.375% | |||||||
Net proceeds from issuance | $ 729,500,000 | |||||||
Repurchase price, as percentage of principal amount, if company undergoes change of control | 100 | |||||||
January 2018 Notes | ||||||||
Long-term debt | ||||||||
Amount issued and sold | $ 690,000,000 | |||||||
Fixed interest rate (as a percent) | 1.00% | |||||||
June 2018 Notes | ||||||||
Long-term debt | ||||||||
Amount issued and sold | $ 218,500,000 | |||||||
Fixed interest rate (as a percent) | 1.00% | |||||||
Net proceeds from issuance | $ 225,300,000 | |||||||
2025 notes | ||||||||
Long-term debt | ||||||||
Fixed interest rate (as a percent) | 1.00% | 1.00% | ||||||
Repayments of debt in cash | 150,100,000 | |||||||
Repayments of debt | 493,400,000 | |||||||
Amount of debt extinguished | 100,000,000 | |||||||
Amount used to pay off interest accrued | 100,000 | 700,000 | ||||||
Conversion rate, number of shares to be issued per $1,000 of principal amount (in shares) | 0.1326 | |||||||
Conversion price (in dollars per share) | $ / shares | $ 75.43 | |||||||
Convertible debt, if-converted (in shares) | shares | 4.2 | |||||||
If-converted value of debt in excess of principal amount | $ 235,300,000 | |||||||
Effective interest rate (as a percent) | 1.18% | 1.26% | ||||||
Interest expense amortization term | 3 years 9 months 18 days | |||||||
2027 Notes | ||||||||
Long-term debt | ||||||||
Fixed interest rate (as a percent) | 0.375% | 0.375% | ||||||
Repayments of debt in cash | $ 494,100,000 | |||||||
Issuance of common stock upon convertible notes settlement (in shares) | shares | 2.2 | |||||||
Conversion of convertible securities, value issued | $ 182,400,000 | |||||||
Total consideration | $ 676,500,000 | |||||||
Conversion rate, number of shares to be issued per $1,000 of principal amount (in shares) | 0.0896 | |||||||
Conversion price (in dollars per share) | $ / shares | $ 111.66 | |||||||
Convertible debt, if-converted (in shares) | shares | 6.7 | |||||||
If-converted value of debt in excess of principal amount | $ 134,700,000 | |||||||
Effective interest rate (as a percent) | 0.67% | 0.67% | ||||||
Interest expense amortization term | 5 years 11 months 15 days | |||||||
2028 Notes | ||||||||
Long-term debt | ||||||||
Amount issued and sold | $ 1,150,000,000 | |||||||
Fixed interest rate (as a percent) | 0.375% | 0.375% | 0.375% | |||||
Net proceeds from issuance | $ 1,130,000,000 | |||||||
Conversion rate, number of shares to be issued per $1,000 of principal amount (in shares) | 0.0821 | |||||||
Conversion price (in dollars per share) | $ / shares | $ 121.84 | |||||||
Convertible debt, if-converted (in shares) | shares | 9.4 | |||||||
If-converted value of debt in excess of principal amount | $ 93,800,000 | |||||||
Effective interest rate (as a percent) | 0.64% | 0.63% | ||||||
Interest expense amortization term | 6 years 11 months 1 day |
LICENSE AND COLLABORATION AGR_2
LICENSE AND COLLABORATION AGREEMENTS - Mayo (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Research and development expense | $ 115,567 | $ 43,509 |
Licensing Agreements | Mayo | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
License Agreement Fee Commitment | 6,300 | |
Licensing Agreements | Mayo | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Research and development expense | $ 1,200 | $ 1,000 |
LICENSE AND COLLABORATION AGR_3
LICENSE AND COLLABORATION AGREEMENTS - John Hopkins University (Details) - Jan. 05, 2021 - Thrive - Licensing Agreements € in Millions, $ in Millions | USD ($) | EUR (€) |
Sales Milestone Range One | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Payments contingent on milestones | € | € 10 | |
Collaborative arrangement sales milestone amount | $ | $ 500 | |
Sales Milestone Range Two | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Payments contingent on milestones | € | 15 | |
Collaborative arrangement sales milestone amount | $ | 1,000 | |
Sales Milestone Range Three | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Payments contingent on milestones | € | € 20 | |
Collaborative arrangement sales milestone amount | $ | $ 1,500 |
PFIZER PROMOTION AGREEMENT (Det
PFIZER PROMOTION AGREEMENT (Details) - Pfizer Inc - Cologuard promotion agreement - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Service fee based on incremental gross profits over specified baselines and royalties | $ 22.7 | $ 19.4 |
Charges for promotion, sales and marketing | $ 26.6 | $ 19.5 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) $ in Thousands | Jan. 11, 2021 | Jan. 05, 2021 | Jan. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Subsidiary or Equity Method Investee [Line Items] | ||||||
Issuance of common stock for business combination and asset acquisition | $ 1,254,798 | $ 28,597 | ||||
Issuance of common stock for business combinations and asset acquisition (in shares) | 400,000 | 9,384,410 | 382,947 | |||
TARDIS Technology | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Payments to acquire productive assets (in shares) | 200,000 | |||||
Stock issued to acquire productive assets, value | $ 27,300 | |||||
Thrive | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Business acquisition, equity interest issued or issuable (in shares) | 9,323,266 | 9,300,000 | ||||
Fair value of stock issued in acquisition | $ 1,190,000 | |||||
Total purchase price | 2,187,054 | |||||
Value of common stock issued in acquisition, allocated to purchase consideration | $ 1,175,431 | |||||
Paradigm & Viomics | ||||||
Subsidiary or Equity Method Investee [Line Items] | ||||||
Total purchase price | $ 40,400 | |||||
Issuance of common stock for business combination and asset acquisition | 28,800 | |||||
Value of common stock issued in acquisition, allocated to purchase consideration | $ 32,200 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | $ 2,235,552 | $ 1,957,548 |
Other comprehensive loss before reclassifications | (292) | (1,642) |
Amounts reclassified from accumulated other comprehensive loss | (40) | 25 |
Net current period change in accumulated other comprehensive loss | (332) | (1,617) |
Income tax expense related to items of other comprehensive income | 170 | |
Ending Balance | 3,648,995 | 1,895,752 |
Foreign Currency Translation Adjustments | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | (25) | |
Other comprehensive loss before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 25 | |
Net current period change in accumulated other comprehensive loss | 25 | |
Ending Balance | 0 | |
Unrealized Gain (Loss) on Marketable Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 526 | (75) |
Other comprehensive loss before reclassifications | (292) | (1,642) |
Amounts reclassified from accumulated other comprehensive loss | (40) | 0 |
Net current period change in accumulated other comprehensive loss | (332) | (1,642) |
Ending Balance | 364 | (1,717) |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning Balance | 526 | (100) |
Ending Balance | $ 364 | $ (1,717) |
STOCKHOLDERS' EQUITY - Schedu_2
STOCKHOLDERS' EQUITY - Schedule of amounts reclassified from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Changes in Accumulated Other Comprehensive Income (Loss) | ||
Investment income, net | $ 31,188 | $ 97 |
General and administrative | (267,727) | (113,991) |
Reclassification Out Of Accumulated Other Comprehensive Income | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
Total reclassifications | (40) | 25 |
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized Gain (Loss) on Marketable Securities | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
Investment income, net | (40) | 0 |
Reclassification Out Of Accumulated Other Comprehensive Income | Foreign Currency Translation Adjustments | ||
Changes in Accumulated Other Comprehensive Income (Loss) | ||
General and administrative | $ 0 | $ 25 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | Jan. 05, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Stock-based compensation | |||
Stock-based compensation expense | $ 163,500 | $ 29,600 | |
Noncash stock-based compensation expense | 77,292 | 29,560 | |
Proceeds from stock options exercised | 8,800 | $ 4,300 | |
Stock Plans | |||
Stock-based compensation | |||
Unrecognized compensation cost | $ 492,300 | ||
Weighted average period for recognition of cost | 3 years | ||
Thrive | |||
Stock-based compensation | |||
Stock-based compensation expense | $ 166,000 | ||
Noncash stock-based compensation expense | $ 13,500 | ||
Accelerated vesting compensation expense | $ 65,000 | ||
Option Plan Shares | Thrive | |||
Stock-based compensation | |||
Accelerated vesting (in shares) | 99,014 | ||
Restricted Stock Units | Thrive | |||
Stock-based compensation | |||
Accelerated vesting (in shares) | 27,479 |
STOCK-BASED COMPENSATION - Fair
STOCK-BASED COMPENSATION - Fair Value and Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Option Plan Shares | |||
Valuation assumptions | |||
Risk-free interest rates, minimum (as a percent) | 1.26% | ||
Risk-free interest rates, maximum (as a percent) | 1.47% | ||
Expected term (in years) | 6 years 1 month 24 days | ||
Expected volatility, minimum (as a percent) | 65.67% | ||
Expected volatility, maximum (as a percent) | 65.71% | ||
Dividend yield (as a percent) | 0.00% | ||
Weighted average fair value per share of options granted during the period (in dollars per share) | $ 58.86 | ||
Restricted Shares and RSUs | |||
Restricted Shares, RSUs, and Performance Share Units | |||
Outstanding at the beginning of the period (in shares) | 3,968,214 | ||
Granted (in shares) | 1,540,278 | ||
Assumed through acquisition (in shares) | 242,123 | ||
Released (in shares) | (1,197,282) | ||
Forfeited (in shares) | (86,286) | ||
Outstanding at the end of the period (in shares) | 4,467,047 | 3,968,214 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 79.39 | ||
Granted (in dollars per share) | 143.66 | ||
Assumed through acquisition (in dollars per share) | 127.79 | ||
Released (in dollars per share) | 67.58 | ||
Forfeited (in dollars per share) | 94.47 | ||
Outstanding at the end of the period (in dollars per share) | $ 107.05 | $ 79.39 | |
Fair value of equity instruments other than options vested in period | $ 80,900 | $ 54,600 | |
Performance Share Units | |||
Restricted Shares, RSUs, and Performance Share Units | |||
Outstanding at the beginning of the period (in shares) | 618,515 | ||
Granted (in shares) | 229,618 | ||
Released (in shares) | 0 | ||
Forfeited (in shares) | (2,075) | ||
Outstanding at the end of the period (in shares) | 846,058 | 618,515 | |
Weighted Average Grant Date Fair Value | |||
Outstanding at the beginning of the period (in dollars per share) | $ 93.22 | ||
Granted (in dollars per share) | 147.81 | $ 98.18 | |
Released (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 147.81 | ||
Outstanding at the end of the period (in dollars per share) | $ 107.90 | $ 93.22 | |
Number of outstanding performance share units (in shares) | 239,533 | ||
Restricted Stock Units | |||
Weighted Average Grant Date Fair Value | |||
Granted (in dollars per share) | $ 93.21 | ||
Stock Plans | |||
Shares | |||
Outstanding at the beginning of the period (in shares) | 2,231,059 | ||
Granted (in shares) | 0 | ||
Assumed through acquisition (in shares) | 1,393,748 | ||
Exercised (in shares) | (967,135) | ||
Forfeited (in shares) | (24,850) | ||
Outstanding at the end of the period (in shares) | 2,632,822 | 2,231,059 | |
Vested and expected to vest at end of period (in shares) | 2,632,822 | ||
Exercisable at the end of the period (in shares) | 1,895,614 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ 39.67 | ||
Granted (in dollars per share) | 0 | ||
Assumed through acquisition (in dollars per share) | 5.51 | ||
Exercised (in dollars per share) | 9.06 | ||
Forfeited (in dollars per share) | 66.87 | ||
Outstanding at the end of the period (in dollars per share) | 32.57 | $ 39.67 | |
Vested and expected to vest at end of period (in dollars per share) | 32.57 | ||
Exercisable at the end of the period (in dollars per share) | $ 25.36 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding | 6 years 6 months | 6 years | |
Vested and expected to vest at end of period | 6 years 6 months | ||
Exercisable at the end of the period | 5 years 9 months 18 days | ||
Aggregate Intrinsic Value | |||
Outstanding at the end of the period | $ 261,190 | ||
Vested and expected to vest at end of period | 261,190 | ||
Exercisable at the end of the period | 201,724 | ||
Total intrinsic value of options exercised | $ 126,000 | $ 10,200 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 5,558 | $ 5,619 |
Operating cash flows from finance leases | 248 | 5 |
Finance cash flows from finance leases | 1,203 | 61 |
Non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for new finance lease liabilities | 40,406 | 1,254 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 639 | $ 663 |
Operating lease, weighted average lease term remaining | 8 years 8 months 8 days | 9 years 6 months |
Finance lease, weighted average remaining lease term | 3 years 5 months 12 days | 2 years 7 months 6 days |
Operating lease, weighted average discount rate | 6.41% | 6.78% |
Finance lease, weighted average discount rate | 5.66% | 5.44% |
Thrive | ||
Non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 39,000 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | ||
Operating lease right-of-use assets | $ 161,687 | $ 125,947 |
Additional amount to be recognized at lease commencement for the lease liability | 172,700 | 132,600 |
Operating lease liability, current | 15,290 | 11,483 |
Operating lease liability, noncurrent | 157,380 | 121,075 |
Finance lease, right-of-use asset | 17,900 | 18,600 |
Finance lease liability | 18,100 | 18,700 |
Finance lease liability, current | $ 4,900 | 4,700 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | |
Finance lease liability, noncurrent | $ 13,200 | $ 14,000 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | |
Facility in Redwood City, CA | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease not yet commenced, asset | $ 8,500 | |
Operating lease not yet commenced, liability | 8,400 | |
Facility in La Jolla, CA | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease not yet commenced, asset | 22,800 | |
Operating lease not yet commenced, liability | $ 22,800 |
NEW MARKET TAX CREDIT (Details)
NEW MARKET TAX CREDIT (Details) - New Market Tax Credit Program $ in Millions | 3 Months Ended |
Dec. 31, 2014USD ($)facility | |
Disclosures related to New Market Tax Credit | |
Net proceeds received from financing arrangements | $ | $ 2.4 |
Number of facilities receiving working capital and capital improvements from financing agreements | facility | 1 |
WISCONSIN ECONOMIC DEVELOPMEN_2
WISCONSIN ECONOMIC DEVELOPMENT TAX CREDIT (Details) - Wisconsin Economic Development Tax Credit Agreement $ in Millions | 3 Months Ended | |||
Mar. 31, 2020USD ($) | Dec. 31, 2015 | Mar. 31, 2015USD ($)item | Mar. 31, 2021USD ($) | |
Agreements | ||||
Refundable tax credits available, contingent | $ 9 | |||
Capital investment expenditures over specified period, requirement to earn the refundable tax credits | $ 26.3 | |||
Full-time positions that must be created over a specified time period to earn the refundable tax credits | item | 758 | |||
Period over which the capital investment expenditures must be incurred and the creation of full-time positions must be completed | 7 years | 7 years | ||
Refundable tax credits earned | $ 9 | |||
Refundable tax credit received | 7.5 | |||
Refundable tax credit receivable | $ 1.5 | |||
Amortization of tax credits | $ 0.6 |
BUSINESS COMBINATIONS AND ASS_3
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Business Combinations Textual (Details) $ / shares in Units, $ in Thousands | Jan. 05, 2021USD ($)$ / sharesshares | Mar. 03, 2020USD ($) | Jan. 31, 2021shares | Mar. 31, 2020USD ($) | Mar. 31, 2021USD ($)$ / shares | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||||||
Closing price of common stock (in dollars per share) | $ / shares | $ 131.78 | |||||||
Stock-based compensation expense | $ 163,500 | $ 29,600 | ||||||
Contingent consideration | $ 2,739 | 336,540 | 2,739 | $ 2,477 | $ 2,879 | |||
Business combination, equity interest in acquiree, remeasurement gain | 30,500 | 0 | ||||||
Net loss before tax | (273,969) | (136,880) | ||||||
Cash payments to acquire business, net of cash acquired | 343,248 | 6,807 | ||||||
Issuance of common stock for business combination and asset acquisition | $ 1,254,798 | 28,597 | ||||||
Equity interests issued or issuable to previous investors | $ 8,400 | |||||||
Acquired developed technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 8 years 8 months 12 days | 9 years | ||||||
Thrive | ||||||||
Business Acquisition [Line Items] | ||||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 12,500 | |||||||
Business combination, equity interest in acquiree, remeasurement gain | $ 7,600 | |||||||
Investment Income | Thrive | ||||||||
Business Acquisition [Line Items] | ||||||||
Business combination, equity interest in acquiree, remeasurement gain | 30,500 | |||||||
Thrive | ||||||||
Business Acquisition [Line Items] | ||||||||
Total purchase price | $ 2,187,054 | |||||||
Business acquisition, equity interest issued or issuable (in shares) | shares | 9,323,266 | 9,300,000 | ||||||
Fair value of stock issued in acquisition | $ 1,190,000 | |||||||
Closing price of common stock (in dollars per share) | $ / shares | $ 127.79 | |||||||
Value of common stock issued in acquisition, allocated to purchase consideration | $ 1,175,431 | |||||||
Payments to acquire businesses and accelerated vesting of awards | 590,200 | |||||||
Cash | 584,996 | |||||||
Stock-based compensation expense | 166,000 | |||||||
Contingent consideration | $ 450,000 | |||||||
Change in amount of contingent consideration liability | 2,900 | |||||||
Share conversion ratio (share per share) | 0.06216 | |||||||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Fair Value | $ 43,034 | |||||||
In-process research and development (IPR&D) | 1,250,000 | |||||||
Compensation consideration assumed | 197,000 | |||||||
Compensation consideration assumed and allocated to consideration transferred | 52,200 | |||||||
Compensation consideration assumed and deemed compensatory | 144,800 | |||||||
Accelerated vesting compensation expense | 65,000 | |||||||
Unrecognized compensation expense | 79,800 | |||||||
Business combination, pro forma loss | 142,800 | |||||||
Acquisition related costs | 10,300 | |||||||
Additional benefit charges | 2,000 | |||||||
Thrive | Employees with Qualifying Termination Events | ||||||||
Business Acquisition [Line Items] | ||||||||
Accelerated vesting compensation expense | 13,500 | |||||||
Thrive | Fair Value | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | 352,000 | 334,200 | ||||||
Thrive | FDA Approval | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | 150,000 | |||||||
Thrive | CSM Coverage | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | 300,000 | |||||||
Thrive | Allocated to Consideration Transferred | Fair Value | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | 331,300 | |||||||
Thrive | Allocated to Previous Ownership Interest | Fair Value | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | 6,400 | |||||||
Thrive | Allocated to Compensation | Fair Value | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent consideration | 14,300 | |||||||
Thrive | Compensation Expense | ||||||||
Business Acquisition [Line Items] | ||||||||
Contingent payment obligations | 18,200 | |||||||
Thrive | General and Administrative Expense | ||||||||
Business Acquisition [Line Items] | ||||||||
Incremental share based compensation expense | 16,000 | |||||||
Stock-based compensation expense | $ 5,200 | |||||||
Accelerated vesting compensation expense | 86,200 | |||||||
Paradigm & Viomics | ||||||||
Business Acquisition [Line Items] | ||||||||
Total purchase price | 40,400 | |||||||
Value of common stock issued in acquisition, allocated to purchase consideration | 32,200 | |||||||
Cash payments to acquire business, net of cash acquired | $ 8,200 | |||||||
Issuance of common stock for business combination and asset acquisition | $ 28,800 | |||||||
Amount of shares held for future issuance | $ 3,400 | |||||||
Equity interests issued or issuable to previous investors, vesting period | 4 years | |||||||
Paradigm & Viomics | Acquired developed technology | ||||||||
Business Acquisition [Line Items] | ||||||||
Weighted-average remaining useful life of finite-lived intangible asset (in years) | 15 years |
BUSINESS COMBINATIONS AND ASS_4
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Consideration Transferred, Thrive (Details) - Thrive $ in Thousands | Jan. 05, 2021USD ($) |
Business Acquisition [Line Items] | |
Common stock issued | $ 1,175,431 |
Cash | 584,996 |
Contingent consideration | 331,348 |
Fair value of replaced equity awards | 52,245 |
Previously held equity investment fair value | 43,034 |
Total purchase price | $ 2,187,054 |
BUSINESS COMBINATIONS AND ASS_5
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Assumptions on Fair Value of Options Assumed (Details) - Options - Thrive | Jan. 05, 2021$ / shares |
Business Acquisition [Line Items] | |
Risk-free interest rates, minimum (as a percent) | 0.11% |
Risk-free interest rates, maximum (as a percent) | 0.12% |
Expected volatility, minimum (as a percent) | 65.54% |
Expected volatility, maximum (as a percent) | 71.00% |
Dividend yield (as a percent) | 0.00% |
Minimum | |
Business Acquisition [Line Items] | |
Expected term (in years) | 1 year 3 months 3 days |
Weighted average fair value per share of options granted during the period (in dollars per share) | $ 109.74 |
Maximum | |
Business Acquisition [Line Items] | |
Expected term (in years) | 1 year 6 months 25 days |
Weighted average fair value per share of options granted during the period (in dollars per share) | $ 124.89 |
BUSINESS COMBINATIONS AND ASS_6
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed, Thrive (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jan. 05, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,183,915 | $ 1,237,672 | $ 1,203,197 | |
Thrive | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 241,748 | |||
Prepaid expenses and other current assets | 3,939 | |||
Property, plant and equipment | 29,977 | |||
Operating lease right-of-use assets | 39,027 | |||
Other long-term assets | 67 | |||
In-process research and development (IPR&D) | 1,250,000 | |||
Total identifiable assets acquired | 1,564,758 | |||
Accounts payable | (3,222) | |||
Accrued liabilities | (6,218) | |||
Operating lease liabilities, current portion | (2,980) | |||
Operating lease liabilities, less current portion | (38,622) | |||
Deferred tax liability | (272,905) | |||
Total liabilities assumed | (323,947) | |||
Net identifiable assets acquired | 1,240,811 | |||
Goodwill | 946,243 | |||
Net assets acquired | $ 2,187,054 |
BUSINESS COMBINATIONS AND ASS_7
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Pro Forma Thrive Information (Details) - Thrive - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 402,077 | $ 347,821 |
Net loss before tax | $ (192,569) | $ (230,359) |
BUSINESS COMBINATIONS AND ASS_8
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed From Paradigm Diagnostics Acquisition (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Mar. 03, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 03, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 2,183,915 | $ 1,237,672 | $ 1,203,197 | ||
Paradigm & Viomics | |||||
Business Acquisition [Line Items] | |||||
Net operating assets | $ 5,373 | $ 6,133 | |||
Goodwill | 30,431 | 29,695 | |||
Developed technology | 7,800 | 7,800 | |||
Net operating liabilities | (3,203) | (3,123) | |||
Net assets acquired | 40,401 | $ 40,505 | |||
Fair Value, Adjustment Disclosure [Abstract] | |||||
Net operating assets | (760) | ||||
Goodwill | 736 | ||||
Developed technology | 0 | ||||
Net operating liabilities | (80) | ||||
Total purchase price | $ (104) |
BUSINESS COMBINATIONS AND ASS_9
BUSINESS COMBINATIONS AND ASSET ACQUISITIONS - Asset Acquisitions Textual (Details) - TARDIS Technology € in Millions, shares in Millions, $ in Millions | Jan. 11, 2021USD ($)shares | Jan. 31, 2021USD ($) | Jan. 11, 2021EUR (€) |
Business Acquisition [Line Items] | |||
Asset acquisition, consideration transferred | $ 52.3 | ||
Payments to acquire productive assets | $ 25 | ||
Payments to acquire productive assets (in shares) | shares | 0.2 | ||
Stock issued to acquire productive assets, value | $ 27.3 | ||
Sales Milestone Range One | |||
Business Acquisition [Line Items] | |||
Payments contingent on milestones | € | € 10 | ||
Collaborative arrangement sales milestone amount | $ 100 | ||
Sales Milestone Range Two | |||
Business Acquisition [Line Items] | |||
Payments contingent on milestones | € | € 35 | ||
Collaborative arrangement sales milestone amount | $ 250 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 402,077 | $ 347,821 |
United States | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | 376,021 | 326,885 |
Outside of United States | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Revenue | $ 26,056 | $ 20,936 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax expense (benefit) | $ (242,805) | $ (2,237) | |
Deferred tax liabilities, net | 38,900 | ||
Unrecognized tax benefits | 17,700 | $ 16,600 | |
Tax benefit from change in deferred tax asset valuation allowance resulting from merger | $ 239,200 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands, € in Millions | May 03, 2021USD ($) | Apr. 14, 2021USD ($)shares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Apr. 14, 2021EUR (€) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Subsequent Event [Line Items] | |||||||
Cash payments to acquire business, net of cash acquired | $ 343,248 | $ 6,807 | |||||
Contingent consideration | $ 336,540 | $ 2,739 | $ 2,477 | $ 2,879 | |||
Subsequent Event | Ashion Analytics | |||||||
Subsequent Event [Line Items] | |||||||
Total purchase price | $ 89,400 | ||||||
Cash payments to acquire business, net of cash acquired | $ 73,200 | ||||||
Business acquisition, equity interest issued or issuable (in shares) | shares | 125,444 | ||||||
Fair value of stock issued in acquisition | $ 16,200 | ||||||
Subsequent Event | Ashion Analytics | Commercial Launch Milestone | |||||||
Subsequent Event [Line Items] | |||||||
Contingent consideration | € | € 20 | ||||||
Subsequent Event | Ashion Analytics | MRD Product Revenue Milestone | |||||||
Subsequent Event [Line Items] | |||||||
Contingent consideration | € | € 30 | ||||||
Revenue milestone | $ 500,000 | ||||||
Subsequent Event | PFS Genomics | |||||||
Subsequent Event [Line Items] | |||||||
Cash payments to acquire business, net of cash acquired | $ 30,600 | ||||||
Percent of equity interests acquired | 90.00% |