Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 01, 2017 | Mar. 31, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ENTA | ||
Entity Registrant Name | ENANTA PHARMACEUTICALS INC | ||
Entity Central Index Key | 1,177,648 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 19,126,006 | ||
Entity Public Float | $ 491,133,874 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 65,675 | $ 16,577 |
Short-term marketable securities | 157,994 | 193,507 |
Accounts receivable | 10,614 | 12,841 |
Prepaid expenses and other current assets | 3,536 | 9,231 |
Total current assets | 237,819 | 232,156 |
Property and equipment, net | 8,049 | 8,004 |
Long-term marketable securities | 70,038 | 32,119 |
Deferred tax assets | 10,123 | 8,390 |
Restricted cash | 608 | 608 |
Total assets | 326,637 | 281,277 |
Current liabilities: | ||
Accounts payable | 3,714 | 3,377 |
Accrued expenses and other current liabilities | 7,970 | 4,512 |
Income taxes payable | 9,298 | |
Total current liabilities | 20,982 | 7,889 |
Warrant liability | 807 | 1,251 |
Series 1 nonconvertible preferred stock | 762 | 159 |
Other long-term liabilities | 2,410 | 2,042 |
Total liabilities | 24,961 | 11,341 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Common stock; $0.01 par value per share, 100,000 shares authorized; 19,120 and 19,036 shares issued and outstanding at September 30, 2017 and September 30, 2016, respectively | 191 | 190 |
Additional paid-in capital | 256,241 | 242,081 |
Accumulated other comprehensive income (loss) | (112) | 19 |
Retained earnings | 45,356 | 27,646 |
Total stockholders' equity | 301,676 | 269,936 |
Total liabilities and stockholders' equity | $ 326,637 | $ 281,277 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Sep. 30, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,120,000 | 19,036,000 |
Common stock, shares outstanding | 19,120,000 | 19,036,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue | |||
Milestones | $ 65,000 | $ 30,000 | $ 125,000 |
Royalties | 37,814 | 57,692 | 34,077 |
Other | 576 | 1,803 | |
Total revenue | 102,814 | 88,268 | 160,880 |
Operating expenses: | |||
Research and development | 57,451 | 40,461 | 23,189 |
General and administrative | 20,749 | 16,966 | 13,543 |
Total operating expenses | 78,200 | 57,427 | 36,732 |
Income from operations | 24,614 | 30,841 | 124,148 |
Other income (expense): | |||
Interest income | 2,532 | 1,735 | 968 |
Interest expense | (40) | (45) | (8) |
Change in fair value of warrant liability and Series 1 nonconvertible preferred stock | (159) | 29 | 347 |
Total other income (expense), net | 2,333 | 1,719 | 1,307 |
Income before income taxes | 26,947 | 32,560 | 125,455 |
Income tax expense | (9,237) | (10,894) | (46,463) |
Net income | $ 17,710 | $ 21,666 | $ 78,992 |
Net income per share: | |||
Basic | $ 0.93 | $ 1.14 | $ 4.23 |
Diluted | $ 0.91 | $ 1.13 | $ 4.09 |
Weighted average shares outstanding: | |||
Basic | 19,066 | 18,929 | 18,673 |
Diluted | 19,407 | 19,224 | 19,295 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 17,710 | $ 21,666 | $ 78,992 |
Other comprehensive income (loss): | |||
Net unrealized gains (losses) on marketable securities, net of tax of ($78), ($9) and $20 | (131) | (14) | 133 |
Total other comprehensive income (loss) | (131) | (14) | 133 |
Comprehensive income | $ 17,579 | $ 21,652 | $ 79,125 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net unrealized gains on marketable securities, tax | $ (78) | $ (9) | $ 20 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings (Accumulated Deficit) [Member] |
Beginning Balance at Sep. 30, 2014 | $ 148,654 | $ 188 | $ 221,580 | $ (2) | $ (100) | $ (73,012) |
Beginning Balance, Shares at Sep. 30, 2014 | 18,803 | (209) | ||||
Exercise of stock options | 726 | $ 1 | 725 | |||
Exercise of stock options, Shares | 123 | |||||
Stock-based compensation expense | 5,838 | 5,838 | ||||
Income tax benefit from stock option exercises | 1,814 | 1,814 | ||||
Other comprehensive income (loss) | $ 133 | 133 | ||||
Retirement of treasury stock | $ (2) | $ 2 | ||||
Retirement of treasury stock, Shares | 209 | (209) | 209 | |||
Net income | $ 78,992 | 78,992 | ||||
Ending Balance at Sep. 30, 2015 | 236,157 | $ 187 | 229,957 | 33 | 5,980 | |
Ending Balance, Shares at Sep. 30, 2015 | 18,717 | |||||
Exercise of stock options | 1,026 | $ 3 | 1,023 | |||
Exercise of stock options, Shares | 319 | |||||
Stock-based compensation expense | 9,354 | 9,354 | ||||
Income tax benefit from stock option exercises | 1,747 | 1,747 | ||||
Other comprehensive income (loss) | (14) | (14) | ||||
Net income | 21,666 | 21,666 | ||||
Ending Balance at Sep. 30, 2016 | 269,936 | $ 190 | 242,081 | 19 | 27,646 | |
Ending Balance, Shares at Sep. 30, 2016 | 19,036 | |||||
Exercise of stock options | $ 1,079 | $ 1 | 1,078 | |||
Exercise of stock options, Shares | 72 | 72 | ||||
Vesting of restricted stock units, net of withholding | $ (202) | (202) | ||||
Vesting of restricted stock units, net of withholding, Shares | 12 | |||||
Stock-based compensation expense | 13,071 | 13,071 | ||||
Income tax benefit from stock option exercises | 213 | 213 | ||||
Other comprehensive income (loss) | (131) | (131) | ||||
Net income | 17,710 | 17,710 | ||||
Ending Balance at Sep. 30, 2017 | $ 301,676 | $ 191 | $ 256,241 | $ (112) | $ 45,356 | |
Ending Balance, Shares at Sep. 30, 2017 | 19,120 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | |||
Net income | $ 17,710 | $ 21,666 | $ 78,992 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation expense | 13,071 | 9,354 | 5,838 |
Depreciation and amortization expense | 2,137 | 1,661 | 639 |
Deferred income taxes | (1,654) | (2,294) | 11,028 |
Premium on marketable securities | (1,229) | (518) | (3,042) |
Amortization of premium on marketable securities | 702 | 1,511 | 2,244 |
Income tax benefit from exercise of stock options | (213) | (1,747) | (1,814) |
Change in fair value of warrant liability and Series 1 nonconvertible preferred stock | 159 | (29) | (347) |
Other non-cash items | 34 | (35) | |
Change in operating assets and liabilities: | |||
Accounts receivable | 2,227 | 2,448 | (13,565) |
Unbilled receivables | 433 | 2,337 | |
Prepaid expenses and other current assets | 5,678 | (964) | (6,680) |
Accounts payable | 633 | 1,451 | (543) |
Accrued expenses | 3,443 | 1,858 | (227) |
Income taxes payable | 9,511 | 548 | 1,199 |
Other long-term liabilities | 478 | 397 | 649 |
Net cash provided by operating activities | 52,653 | 35,809 | 76,673 |
Cash flows from investing activities | |||
Purchase of marketable securities | (251,371) | (192,429) | (196,304) |
Maturities of marketable securities | 239,287 | 153,504 | 108,407 |
Sale of marketable securities | 10,018 | 2,210 | |
Purchase of property and equipment | (2,506) | (4,738) | (2,336) |
Other investing activities | (163) | ||
Net cash used in investing activities | (4,572) | (43,663) | (88,186) |
Cash flows from financing activities | |||
Proceeds from exercise of stock options | 1,079 | 1,026 | 726 |
Income tax benefit from exercise of stock options | 213 | 1,747 | 1,814 |
Payments of withholding tax for share-based awards | (202) | ||
Payments of capital lease obligations | (73) | (68) | |
Net cash provided by financing activities | 1,017 | 2,705 | 2,540 |
Net increase (decrease) in cash and cash equivalents | 49,098 | (5,149) | (8,973) |
Cash and cash equivalents at beginning of period | 16,577 | 21,726 | 30,699 |
Cash and cash equivalents at end of period | 65,675 | 16,577 | 21,726 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 1,588 | 12,616 | 40,072 |
Non-cash items: | |||
Purchases of fixed assets included in accounts payable and accrued expenses | $ 318 | $ 637 | 1,562 |
Fixed assets financed by landlord | 239 | ||
Fixed assets purchased through capital lease | $ 598 |
Nature of the Business
Nature of the Business | 12 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of the Business | 1. Nature of the Business Enanta Pharmaceuticals, Inc. (the “Company”), incorporated in Delaware in 1995, is a biotechnology company that uses its robust, chemistry-driven approach and drug discovery capabilities to create small molecule drugs primarily for the treatment of viral infections and liver diseases. The Company discovered glecaprevir, the second of two protease inhibitors discovered and developed through the Company’s collaboration with AbbVie and marketed as part of AbbVie’s new direct-acting antiviral (DAA) regimen under the tradenames MAVYRET™ (U.S.) or MAVIRET™ (ex-U.S.) (glecaprevir/pibrentasvir) for the treatment of chronic hepatitis C virus, or HCV. The other protease inhibitor under the Company’s HCV collaboration is part of AbbVie’s initial DAA regimens for the treatment of chronic HCV marketed under the tradenames VIEKIRA PAK ® ® The royalties from the AbbVie collaboration and the Company’s existing financial resources provides funding to support the Company’s wholly owned research and development efforts , which are currently focused on the following disease targets: The Company is subject to risks common to companies in the biotechnology industry including, but not limited to, the uncertainties of research and development, competition from technological innovations of others, dependence on collaborative arrangements, protection of proprietary technology, dependence on key personnel and compliance with government regulations and the need to obtain additional financing. Product candidates currently under development will require significant additional research and development efforts, including extensive preclinical and clinical testing and regulatory approvals, prior to commercialization. These efforts require significant amounts of capital and adequate personnel infrastructure and compliance reporting capabilities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include those of the Company and its subsidiary, Enanta Pharmaceuticals Security Corporation, after elimination of all intercompany accounts and transactions. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, management’s judgments of separate units of accounting and best estimate of selling price of those units of accounting within its revenue arrangements; valuation of warrants, Series 1 nonconvertible preferred stock and stock-based awards; and the accounting for income taxes, including uncertain tax positions and the valuation of net deferred tax assets. Cash Equivalents and Marketable Securities The Company considers all short-term, highly liquid investments with original maturities of ninety days or less at acquisition date to be cash equivalents. Marketable securities with original maturities of greater than ninety days and remaining maturities of less than one year from the balance sheet date are classified as short-term marketable securities. Marketable securities with remaining maturities of greater than one year from the balance sheet date are classified as long-term marketable securities. The Company classifies all of its marketable securities as available-for-sale. All marketable securities are held with one investment manager. The Company continually evaluates the credit ratings of its investment portfolio and underlying securities. The Company invests in accordance with its investment policy and invests at the date of purchase in securities with a rating of A3 or higher and A- or higher according to Moody’s and S&P, respectively. The Company reports available-for-sale investments at fair value as of each balance sheet date and records any unrealized gains or losses as a component of stockholders’ equity. The cost of securities sold is determined on a specific identification basis, and realized gains and losses are included in other income (expense), net within the consolidated statements of operations. If any adjustment to fair value reflects a decline in the value of the investment, the Company considers available evidence to evaluate the extent to which the decline is “other than temporary” and reduces the investment to fair value through a charge to the consolidated statements of operations. There were no such adjustments necessary during the years ended September 30, 2017, 2016, and 2015. Restricted Cash As of September 30, 2017 and 2016, the Company had an outstanding letter of credit collateralized by a money market account of $608 to the benefit of the landlord of the Company’s current building lease. This amount was classified as long-term restricted cash as of September 30, 2017 and 2016. Concentration of Credit Risk and of Significant Customers and Suppliers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, accounts receivable and unbilled receivables. The Company has all cash and investment balances at one accredited financial institution, including cash in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company has historically generated all of its revenue from its collaborative research and license agreements as well as a U.S. government contract (see Note 7). As of September 30, 2017 and 2016, accounts receivable consisted of amounts due from the Company’s principal collaborator (see Note 7). The Company is completely dependent on third-party manufacturers for product supply for preclinical and clinical research activities in its non-partnered programs. The Company relies and expects to continue to rely exclusively on several manufacturers to supply it with its requirements for the active pharmaceutical ingredients related to these programs. These research programs would be adversely affected by a significant interruption in the supply of its active pharmaceutical ingredients. Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy is based on three levels of inputs which are used to measure fair value, of which the first two levels are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s instruments that are carried at fair value are cash equivalents, marketable securities and the warrant and Series 1 nonconvertible preferred stock liabilities. The carrying values of accounts receivable and unbilled receivables, accounts payable and accrued expenses approximate their fair value due to the short-term nature of these assets and liabilities. Property and Equipment Property and equipment are stated at cost less accumulated depreciation or amortization. Depreciation and amortization expense is recognized using the straight-line method over the following estimated useful lives: Laboratory and office equipment 5 years Leasehold improvements Shorter of life of lease or estimated useful life Purchased software 3 years Computer equipment 3 years Furniture 7 years Expenditures for repairs and maintenance of assets are charged to expense as incurred. Costs of major additions and betterments are capitalized and depreciated on a straight-line basis over their useful lives. Upon retirement or sale, the cost and related accumulated depreciation or amortization of assets disposed are removed from the accounts and any resulting gain or loss is included in income from operations in the consolidated statements of operations. Impairment of Long-Lived Assets The Company reviews long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows. To date, the Company has not recorded any impairment losses on long-lived assets. Revenue Recognition The Company’s revenue has been generated primarily through collaborative research and license agreements. The terms of these agreements contain multiple deliverables, which may include (i) licenses, (ii) research and development activities, and (iii) participation in joint research and development steering committees. The terms of these agreements may include nonrefundable upfront license fees, payments for research and development activities, payments based upon the achievement of certain milestones, and royalty payments based on product sales derived from the collaboration. In all instances, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, delivery has occurred or the services have been rendered, collectibility of the resulting receivable is reasonably assured, and the Company has fulfilled its performance obligations under the contract. On October 1, 2011, the Company adopted Accounting Standards Update No. 2009-13, Multiple-Deliverable Revenue Arrangements In determining the separate units of accounting, the Company evaluates whether the license has standalone value to the collaborator based on consideration of the relevant facts and circumstances for each arrangement. Factors considered in this determination include the research and development capabilities of the collaborator and the availability of relevant research expertise in the marketplace. In addition, the Company considers whether or not (i) the collaborator can use the license for its intended purpose without the receipt of the remaining deliverables, (ii) the value of the license is dependent on the undelivered items, and (iii) the collaborator or other vendors can provide the undelivered items. For all periods presented, whenever the Company determines that an element is delivered over a period of time, revenue is recognized using either a proportional performance model or a straight-line model over the period of performance, which is typically the research and development term. Full-time equivalents (“FTEs”) are typically used as the measure of performance. At each reporting period, the Company reassesses its cumulative measure of performance and makes appropriate adjustments, if necessary. The Company recognizes revenue using the proportional performance model whenever the Company can make reasonably reliable estimates of the level of effort required to complete its performance obligations under an arrangement. Revenue recognized under the proportional performance model at each reporting period is determined by multiplying the total expected payments under the contract (excluding royalties and payments contingent upon achievement of milestones) by the ratio of the level of effort incurred to date to the estimated total level of effort required to complete the performance obligations under the arrangement. Revenue is limited to the lesser of the cumulative amount of payments received or the cumulative amount of revenue earned, as determined using the proportional performance model as of each reporting period. Alternatively, if the Company cannot make reasonably reliable estimates of the level of effort required to complete its performance obligations under an arrangement, then revenue under the arrangement is recognized on a straight-line basis over the period expected to complete the Company’s performance obligations. If and when a contingent milestone payment is earned, the additional consideration to be received is allocated to the separate units of accounting in the arrangement based on their relative selling prices at the inception of the arrangement. Revenue is limited to the lesser of the cumulative amount of payments received or the cumulative amount of revenue earned, as determined on a straight-line basis as of the period end date. If the Company cannot reasonably estimate when its performance obligation period ends, then revenue is deferred until the Company can reasonably estimate when the performance obligation period ends. Royalty revenue is recognized based on contractual terms when reported sales are reliably measurable and collectibility is reasonably assured, provided that there are no performance obligations remaining. During the years ended September 30, 2016 and 2015, the Company also generated revenue from a government contract, under which the Company was reimbursed for certain allowable costs for the funded project. Revenue from the government contract was recognized when the related service was performed. The related costs incurred by the Company under the government contract were included in research and development expenses in the consolidated statements of operations. Amounts received prior to satisfying all revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets. Amounts not expected to be recognized as revenue within the next twelve months of the consolidated balance sheet date are classified as long-term deferred revenue. In the event that a collaborative research and license agreement is terminated and the Company then has no further performance obligations, the Company recognizes as revenue any amounts that had not previously been recorded as revenue but were classified as deferred revenue at the date of such termination. Research and Development Costs Research and development costs are expensed as incurred. Included in research and development costs are wages, stock-based compensation and benefits of employees, third-party license fees and other operational costs related to the Company’s research and development activities, including facility-related expenses and external costs of outside contractors engaged to conduct both preclinical and clinical studies and manufacture quantities of product for preclinical and clinical studies. The Company also includes in research and development expense the costs to complete the Company’s obligations under research collaborations. Patent Costs All patent-related costs incurred in connection with filing and prosecuting patent applications are recorded as general and administrative expenses as incurred, as recoverability of such expenditures is uncertain. Stock-Based Compensation The Company measures all stock options and other stock-based awards granted to employees at fair value on the date of grant. The Company uses the Black-Scholes option-pricing model in the valuation of its stock options. The fair value of performance-based awards and restricted stock units is based on intrinsic value of the stock on the date of grant. The Company uses the Monte-Carlo simulation in order to calculate the fair value of the market-based awards. The fair value of options is recognized as stock-based compensation expense, net of estimated forfeitures, over the requisite service period, which is generally the vesting period of the respective award. The straight-line method of expense recognition is applied to all awards with service-based and market-based conditions. The Company records stock-based compensation expense related to performance-based awards when the performance-based targets are probable of being achieved. The Company classifies stock-based compensation expense in the consolidated statements of operations in the same manner in which the award recipient’s payroll costs are classified. Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or in the Company’s tax returns. Deferred taxes are determined based on the difference between the financial reporting and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. Uncertain tax positions represent tax positions for which reserves have been established. The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more likely than not to be sustained, the tax position is then assessed to determine the amount of benefit to be recognized in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. Net Income per Share Basic net income per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding for the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and unvested restricted stock units. Market-based awards are included in diluted net income per common share to the extent they would have vested if the period end date was the market criteria measurement date. Segment Data The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company is a biotechnology company focused on discovering and developing small molecule drugs for the treatment of viral infections and liver diseases. Revenue is generated exclusively from transactions occurring with partners located in the United States and all assets are held in the United States. Comprehensive Income Comprehensive income includes net income as well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. The Company’s only element of other comprehensive income is unrealized gains and losses on available-for-sale marketable securities. Going Concern In August 2014, the Financial Accounting Standards Board (the “ Presentation of Financial Statements - Going Concern (Subtopic 205-40) . Based on a detailed cash forecast incorporating current research and development activities and related spending plans, the Company believes that current cash, cash equivalents and marketable securities on hand at September 30, 2017 should be sufficient to fund operations for the foreseeable future, including at least the next twelve months beyond the date of issuance of these financial statements. The amount of capital available will depend on the Company’s management of its existing cash, cash equivalents and marketable securities, as well as the level of future royalties the Company earns under its collaboration with AbbVie. If the Company should require financing beyond these resources to fund its research and development efforts, it may not be able to obtain financing on acceptable terms, or at all. Recently Issued Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which intends to simplify several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, a choice to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This amendment will be effective for the Company in the fiscal year beginning October 1, 2017. The Company expects to change its forfeiture rate policy on a prospective basis by recording forfeitures as they occur. Upon adoption, the cumulative impact of this policy change to retained earnings will not be material to the consolidated balance sheet. Once adopted, the consolidated statements of cash flows will present any excess tax benefits as a cash flow from operating activities. The Company has elected to adopt this change on a prospective basis. The adoption of the standard is also expected to create variability in the consolidated statements of operations on a prospective basis as the tax consequences of settled share-based payments will be recognized in income tax expense when share-based payment awards are settled. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB has continued to issue accounting standards updates to clarify and provide implementation guidance related to Revenue from Contracts with Customers, including ASU 2016-08 , Revenue from Contract with Customers: Principal versus Agent Considerations , ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing , and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. These amendments address a number of areas, including an entity’s identification of its performance obligations in a contract, collectibility, non-cash consideration, presentation of sales tax and an entity’s evaluation of the nature of its promise to grant a license of intellectual property and whether or not that revenue is recognized over time or at a point in time. The new guidance must be adopted using either a modified retrospective approach or a full retrospective approach for all periods presented. Under the modified retrospective method, the cumulative effect of applying the new standard would be recognized at the adoption date in retained earnings on the consolidated balance sheet. Under the full retrospective approach, the new standard would be applied to each prior reporting period presented. These new standards will be effective for the Company beginning October 1, 2018. Currently, the Company has only one revenue-generating contract – the AbbVie Agreement. The Company has completed its substantial performance obligations under the contract and is eligible to earn annually tiered per-product royalties on the portion of AbbVie’s net sales of HCV regimens allocable to the protease inhibitor in the regimen. The Company is in process of determining the method of adoption but under either method, the impact of adoption is not expected to have a material impact on the Company’s consolidated financial statements as it only has one revenue-generating arrangement outstanding to date in which all performance obligations have been achieved. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) that changes the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amendment is effective for the Company in the fiscal year beginning October 1, 2018, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2016-18 may have on its statement of cash flows. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which will replace the existing guidance in ASC 840, “Leases.” The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize leased assets and leased liabilities on the consolidated balance sheets and requiring disclosure of key information about leasing arrangements. This amendment is effective for the Company in the fiscal year beginning October 1, 2019, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2016-02 may have on its financial position and results of operations. In March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”) which requires companies to amend the amortization period for premiums on debt securities with explicit call features to be the earliest call date rather than through the contractual life of the debt instrument. This amendment aims to more closely align the recognition of interest income with the manner in which market participants price such instruments. This amendment is effective for the Company in the fiscal year beginning October 1, 2019, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2017-08 may have on its financial position and results of operations. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718) (“ASU 2017-09”) which This amendment is effective for the Company in the fiscal year beginning October 1, 2018, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2017-09 may have on its financial position and results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (“ASU 2016-13”), which introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. This amendment is effective for the Company in the fiscal year beginning October 1, 2020. The Company is currently evaluating the potential impact that ASU 2016-13 may have on its financial position and results of operations. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption . |
Fair Value of Financial Assets
Fair Value of Financial Assets and Liabilities | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Assets and Liabilities | 3. Fair Value of Financial Assets and Liabilities The following tables present information about the Company’s financial assets and liabilities that were subject to fair value measurement on a recurring basis as of September 30, 2017 and 2016 and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: Fair Value Measurements at September 30, 2017 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 19,863 $ — $ — $ 19,863 Commercial paper — 29,756 — 29,756 Corporate bonds — 3,000 — 3,000 Marketable securities: U.S. Treasury notes 60,843 — — 60,843 Corporate bonds — 150,731 — 150,731 Commercial paper — 12,458 — 12,458 U.S. Agency bonds — 4,000 — 4,000 $ 80,706 $ 199,945 $ — $ 280,651 Liabilities: Warrant liability $ — $ — $ 807 $ 807 Series 1 nonconvertible preferred stock — — 762 762 $ — $ — $ 1,569 $ 1,569 Fair Value Measurements at September 30, 2016 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 15,295 $ — $ — $ 15,295 Marketable securities: U.S. Treasury notes 69,608 — — 69,608 Corporate bonds — 76,073 — 76,073 Commercial paper — 49,900 — 49,900 U.S. Agency bonds — 30,045 — 30,045 $ 84,903 $ 156,018 $ — $ 240,921 Liabilities: Warrant liability $ — $ — $ 1,251 $ 1,251 Series 1 nonconvertible preferred stock — — 159 159 $ — $ — $ 1,410 $ 1,410 Cash equivalents at September 30, 2017 and 2016 consist of money market funds, corporate bonds and commercial paper which are readily convertible to cash and with less than 90 days until maturity. During the years ended September 30, 2017, 2016, and 2015, there were no transfers between Level 1, Level 2 and Level 3. As of September 30, 2017 and 2016, the warrant liability was comprised of the value of the warrants for the purchase of Series 1 nonconvertible preferred stock measured at fair value. As of September 30, 2017 and 2016, the outstanding Series 1 nonconvertible preferred stock was also measured at fair value. The fair values of these instruments were based on significant inputs not observable in the market, which represented a Level 3 measurement within the fair value hierarchy. The Company utilized a probability-weighted valuation model which takes into consideration various outcomes that may require the Company to transfer assets upon exercise. Changes in the fair values of the warrant liability and Series 1 nonconvertible preferred stock are recognized in other income (expense), net, in the consolidated statements of operations. The recurring Level 3 fair value measurements of the Company’s warrant liability and Series 1 nonconvertible preferred stock using probability-weighted discounted cash flow include the following significant unobservable inputs: Range (Weighted Average) September 30, Unobservable Input 2017 2016 Probabilities of payout 0%-65% 0%-60% Discount rate 5.25% 4.50% The following table provides a rollforward of the aggregate fair values of the Company’s warrants for the purchase of Series 1 nonconvertible preferred stock and the outstanding Series 1 nonconvertible preferred stock for which fair value is determined by Level 3 inputs: Warrant Liability Series 1 Nonconvertible Preferred Stock (in thousands) Balance, September 30, 2014 $ 1,584 $ 202 Decrease in fair value (308 ) (39 ) Balance, September 30, 2015 $ 1,276 $ 163 Decrease in fair value (25 ) (4 ) Balance, September 30, 2016 $ 1,251 $ 159 Warrants exercised (549 ) 549 Increase in fair value 105 54 Balance, September 30, 2017 $ 807 $ 762 |
Marketable Securities
Marketable Securities | 12 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities As of September 30, 2017 and 2016, the fair value of available-for-sale marketable securities, by type of security, was as follows: September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate bonds $ 150,841 $ 9 $ (119 ) $ 150,731 U.S. Treasury notes 60,908 — (65 ) 60,843 Commercial paper 12,458 — — 12,458 U.S. Agency bonds 4,004 — (4 ) 4,000 $ 228,211 $ 9 $ (188 ) $ 228,032 September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate bonds $ 76,077 $ 27 $ (31 ) $ 76,073 U.S. Treasury notes 69,579 38 (9 ) 69,608 Commercial paper 49,900 — — 49,900 U.S. Agency bonds 30,040 15 (10 ) 30,045 $ 225,596 $ 80 $ (50 ) $ 225,626 As of September 30, 2017 and 2016, marketable securities consisted of investments that mature within one year, with the exception of certain corporate bonds and U.S. Treasury notes, which have maturities between one and three years and an aggregate fair value of $70,038 and $32,119, respectively. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Sep. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment consisted of the following as of September 30, 2017 and 2016: September 30, 2017 2016 (in thousands) Laboratory and office equipment $ 9,521 $ 7,440 Leasehold improvements 3,717 3,715 Purchased software 775 705 Furniture 595 551 Construction in progress 250 504 Computer equipment 245 187 15,103 13,102 Less: Accumulated depreciation and amortization (7,054 ) (5,098 ) $ 8,049 $ 8,004 Depreciation and amortization expense for property and equipment, including assets acquired under capital leases, was $2,137, $1,661 and $639 for the years ended September 30, 2017, 2016, and 2015, respectively. |
Accrued Expenses, Other Current
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities | 12 Months Ended |
Sep. 30, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities | 6. Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities Accrued expenses, other current liabilities and other long-term liabilities consisted of the following as of September 30, 2017 and 2016: September 30, 2017 2016 Accrued expenses: (in thousands) Accrued preclinical and clinical expenses $ 3,156 $ 899 Accrued payroll and related expenses 2,829 2,384 Accrued vendor manufacturing 1,130 459 Accrued professional fees 456 393 Capital lease obligation 79 73 Accrued other 320 304 $ 7,970 $ 4,512 Other long-term liabilities: Uncertain tax positions $ 1,175 $ 745 Accrued rent expense 676 696 Capital lease obligation 379 458 Asset retirement obligation 180 143 $ 2,410 $ 2,042 |
Collaboration Agreements
Collaboration Agreements | 12 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Collaboration Agreements | 7. Collaboration Agreements AbbVie Collaboration On November 27, 2006, the Company entered into a Collaborative Development and License Agreement (the “AbbVie Agreement”) with Abbott Laboratories to identify, develop and commercialize HCV NS3 and NS3/4A protease inhibitor compounds, including paritaprevir and glecaprevir. The agreement was assigned by Abbott to AbbVie Inc. on January 1, 2013 in connection with Abbott’s transfer of its research-based pharmaceuticals business to AbbVie. Under the terms of the AbbVie Agreement, as amended, AbbVie paid the Company upfront license payments and FTE reimbursements to fund research activities. The Company is also eligible to receive milestone payments for the successful development by AbbVie of one or more HCV compounds, as well as annually tiered, per-product royalties on the portion of AbbVie’s net sales of its HCV treatment regimens allocated to the protease inhibitor product. The Company determined that the deliverables under the AbbVie Agreement included (i) the non-exclusive, royalty-free, worldwide research license and the exclusive, royalty-bearing development and commercialization license, (ii) the research services, and (iii) a commitment to participate on a steering committee, all of which were to be delivered over a three-year period. The Company concluded that the license did not have standalone value as it was dependent, in part, upon the Company’s continuing involvement in the HCV protease inhibitor research and its involvement in the joint steering committee. Additionally, the undelivered items, including the Company’s participation in the joint steering committee, which was considered participatory due to its decision making responsibilities, and the research services, did not have VSOE or VOE of fair value. Therefore, the license, the research services, and the joint steering committee participation were treated as a single unit of accounting. Accordingly, all amounts received were deferred, and revenue was recognized using the proportional performance model over the period during which the Company performed research services in connection with the AbbVie Agreement, as amended. Subsequent to the research and evaluation period, which ended in June 2011, all decisions related to the development, commercialization and marketing have been made by AbbVie. The Company has the right to continue to attend the joint steering committee meetings to monitor the development and marketing plans; however, the Company has no decision-making rights. As such, the joint steering committee commitment became protective in nature as of June 16, 2011. During the years ended September 30, 2017, 2016, and 2015, the Company received $65,000, $30,000, and $125,000, respectively, in milestone payments under the AbbVie Agreement as a result of AbbVie’s commercialization regulatory approvals for regimens containing the collaboration’s first protease inhibitor. From commencement of the collaboration through September 30, 2017, the Company received a total of $500,000 under the AbbVie Agreement consisting of an upfront license payment, research funding, milestone payments, royalties and preferred stock financing. As of September 30, 2017, the Company is eligible to receive an additional milestone payment of $15,000 upon AbbVie’s achievement of commercialization regulatory approval in Japan for MAVIRET. Since the Company completed all its performance obligations under the AbbVie Agreement by the end of fiscal 2011, any milestone payments earned since then have been and will be recognized as revenue when the associated milestone is achieved by AbbVie. The Company receives annually tiered royalties on each protease product developed under the AbbVie Agreement, ranging from the low double digits up to twenty percent, o r on a blended basis from the low double digits up to the high teens, bbVie’s calendar year net sales of the corresponding HCV regimen that is allocated to the protease product contained in the regimen Royalties owed to the Company under the agreement can be reduced by AbbVie in certain circumstances, including (i) if AbbVie exercises its right to license or otherwise acquire rights to intellectual property controlled by a third party where a product could not be legally developed or commercialized in a country without the third-party intellectual property right, (ii) where a product developed under the collaboration agreement is sold in a country and not covered by a valid patent claim in such country, and (iii) where sales of a generic product are equal to at least a specified percentage of AbbVie’s market share of its product in a country. AbbVie’s obligation to pay royalties on a product developed under the agreement expires on a country-by-country basis upon the later of (i) the date of expiration of the last of the licensed patents with a valid claim covering the product in the applicable country, or (ii) ten years after the first commercial sale of the product in the applicable country. Subject to certain exceptions, a party’s rights and obligations under the agreement continue until (i) such time as AbbVie is no longer developing a product candidate or (ii) if, as of the time AbbVie is no longer developing any product candidates, AbbVie is commercializing any other protease inhibitor product, such time as all royalty terms for all covered products have ended. Accordingly, the final expiration date of the agreement is currently indeterminable. Either party may terminate the agreement for cause in the event of a material breach, subject to prior notice and the opportunity to cure, or in the event of the other party’s bankruptcy. Additionally, AbbVie may terminate the agreement for any reason upon specified prior notice. If the Company terminates the agreement for cause or AbbVie terminates without cause, any licenses and other rights granted to AbbVie will terminate and AbbVie will be deemed to have granted the Company (i) a non-exclusive, perpetual, fully-paid, worldwide, royalty-free license, with the right to sublicense, under AbbVie’s intellectual property used in any product candidate, and (ii) an exclusive (even as to AbbVie), perpetual, fully-paid, worldwide, royalty-free license, with the right to sublicense, under AbbVie’s interest in any joint intellectual property rights to develop product candidates resulting from covered compounds and to commercialize any products derived from such compounds. Upon the Company’s request, AbbVie will also transfer to the Company all right, title and interest in any related product trademarks, regulatory filings and clinical trials. If AbbVie terminates the agreement for the Company’s uncured breach, the milestone and royalty payments payable by AbbVie may be reduced, the licenses granted to AbbVie will remain in place, the Company will be deemed to have granted AbbVie an exclusive license under the Company’s interest in joint intellectual property, AbbVie will continue to have the right to commercialize any covered products, and all rights and licenses granted to the Company by AbbVie will terminate. NIAID Contract On September 30, 2011, the Company entered into a contract with the National Institute of Allergy and Infectious Diseases (“NIAID”), a division of the National Institutes of Health (“NIH”), providing development funding to the Company for the preclinical and clinical development of a bridged bicyclic antibiotic. The contract was completed in August 2015 upon the Company’s delivery of the study report for the Phase 1 clinical study. The Company recognized revenue under this contract as development services were performed in accordance with the funding agreement. During the years ended September 30, 2016 and 2015, the Company recognized revenue of $576 and $1,803, respectively, under this contract. The Company received aggregate payments of $20,637 under the NIAID contract from its commencement through January 31, 2016. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | 8. Stockholders’ Equity The Company is authorized to issue 100,000 shares of common stock at a par value of $0.01. Each share of common stock entitles the holder to one vote on all matters submitted to a vote of the Company’s stockholders. Common stockholders are entitled to receive such dividends as may be declared by the board of directors, if any. The Company previously had 209 shares of treasury stock outstanding, which were retired on September 30, 2015, resulting in a decrease in the same number of issued shares of common stock. |
Series 1 Nonconvertible Preferr
Series 1 Nonconvertible Preferred Stock and Warrants | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Series 1 Nonconvertible Preferred Stock and Warrants | 9. Series 1 Nonconvertible Preferred Stock and Warrants The Company’s Certificate of Incorporation authorizes the issuance of up to 2,000 shares of Series 1 nonconvertible preferred stock at a par value of $0.01 per share. Holders of Series 1 nonconvertible preferred stock are not entitled to receive dividends. In the event of any liquidation, deemed liquidation, dissolution or winding up of the Company, the Series 1 nonconvertible preferred stockholders are entitled to receive in preference to all other stockholders, an amount equal to $1.00 per share, adjusted for any stock dividends, stock splits or reclassifications. Series 1 nonconvertible preferred stockholders will not be entitled to vote unless required by the Company pursuant to the laws of the State of Delaware. The Company may redeem the Series 1 nonconvertible preferred stock with the approval of the holders of a majority of the outstanding shares of Series 1 nonconvertible preferred stock at a redemption price of $1.00 per share. The Company must redeem the stock within 60 days of such election. Shares that are redeemed will be retired or canceled and not reissued by the Company. In October and November 2010, a total of 2,000 warrants to purchase Series 1 nonconvertible preferred stock were issued. The warrants had an expiration date of October 4, 2017. As these warrants are free-standing financial instruments that may require the Company to transfer assets upon exercise, up to a maximum of $2,000, these warrants are classified as liabilities on the Company’s consolidated balance sheet. The following table summarizes the Company’s outstanding warrants: Series 1 Nonconvertible Preferred Stock Warrants Exercisable Weighted Average Exercise Price (in thousands, except per share data) Outstanding, as of September 30, 2014 1,775 $ 0.01 Granted — — Expired — — Exercised — — Outstanding, as of September 30, 2015 1,775 $ 0.01 Granted — — Expired — — Exercised — — Outstanding, as of September 30, 2016 1,775 $ 0.01 Granted — — Expired — — Exercised (745 ) $ 0.01 Outstanding, as of September 30, 2017 1,030 $ 0.01 For the years ended September 30, 2017, 2016, and 2015, the remeasurement of the warrants and Series 1 nonconvertible preferred stock resulted in income (expense) recorded in the consolidated statements of operations of ($159), $29, and $347, respectively. As of September 30, 2017 and 2016, the total fair value of the Series 1 nonconvertible preferred stock was $762 and $159, respectively. As of September 30, 2017 and 2016, the total fair value of the Series 1 nonconvertible preferred stock warrants was $807 and $1,251, respectively. Subsequent to September 30, 2017, warrants to purchase a total of 977 shares of Series 1 nonconvertible preferred stock were exercised prior to warrant expiration, resulting in the issuance of 970 shares of Series 1 nonconvertible preferred stock. |
Stock-Based Awards
Stock-Based Awards | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Awards | 10. Stock-Based Awards The Company’s 2012 Equity Incentive Plan (the “2012 Plan”) permits the Company to sell or issue awards of common stock or restricted common stock or to grant awards of incentive stock options or nonqualified stock options for the purchase of common stock, restricted stock units, performance units, stock appreciation rights or other cash incentive awards, to employees, members of the board of directors and consultants of the Company. The number of shares of common stock that may be issued under the 2012 Plan is subject to increase by the number of shares forfeited under any options terminated and not exercised under the 2012 Plan or a predecessor plan, known as the 1995 Equity Incentive Plan, as well as by the number of shares added on the first day of each fiscal year, which is the lowest amount among the following: (i) 3% of the Company’s outstanding shares of common stock as of that date, (ii) 2,088 shares of common stock, or (iii) an amount determined by the Compensation Committee of the Board of Directors. On October 1, 2017, the number of shares of common stock that might be issued under the 2012 Plan was increased by 574 The 2012 Plan replaces and is the successor to the 1995 Equity Incentive Plan (the “1995 Plan”). The 1995 Plan provided for the Company to sell or issue awards of common stock or restricted common stock, or to grant awards of incentive stock options or nonqualified stock options for the purchase of common stock, to employees, members of the board of directors and consultants of the Company. Sales, issuances or grants of shares entitle the holder to purchase common stock from the Company, for a specified exercise price, during a period specified by the applicable equity award agreement. Upon the closing of the Company’s initial public offering, all remaining shares reserved for issuance under the 1995 Plan were transferred to the 2012 Plan and no further awards were or will be made under the 1995 Plan. Under the Company’s Employee Stock Purchase Plan (“ESPP”) a total of 186 shares of common stock are reserved for issuance. As of September 30, 2017, the Company had not commenced any offering under the ESPP and no plan shares have been issued. The Company applies the fair value recognition provisions for all stock-based awards granted or modified. In the case of service-based awards, the compensation cost is recorded over the requisite service period of the award on the straight-line method based on the grant-date fair value. The requisite service period for service-based option awards is generally four years. Options granted under the 2012 Plan to employees generally vest over four years and to non-employee directors over one year, and expire after ten years. Stock Option Valuation The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option-pricing model. The Company estimates expected volatility based on the historical volatility of publicly traded peer companies. The Company expects to continue to do so until such time as adequate historical data regarding the volatility of the Company’s traded stock price following our March 2013 IPO is available. The expected term of the Company’s options has been determined utilizing the “simplified” method for awards that qualify as “plain-vanilla” options. The Company expects to continue to utilize this method until such time as we have adequate historical data regarding our employee exercise patterns. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. The expected dividend yield is zero on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future. The relevant data used to determine the value of the stock option awards are as follows, presented on a weighted average basis: Years Ended September 30, 2017 2016 2015 Risk-free interest rate 1.97 % 1.77 % 1.85 % Expected term (in years) 6.05 6.10 6.03 Expected volatility 60 % 70 % 74 % Expected dividends 0 % 0 % 0 % The Company recognizes stock-based compensation expense for only the portion of awards that are expected to vest. In developing a forfeiture rate estimate, the Company has considered its historical experience to estimate pre-vesting forfeitures for service-based awards. The impact of a forfeiture rate adjustment will be recognized in full in the period of adjustment, and if the actual forfeiture rate is materially different from the Company’s estimate, the Company may be required to record adjustments to its stock-based compensation expense in future periods. Beginning in fiscal 2018, the Company will no longer utilize a forfeiture rate estimate in calculating stock-based compensation expense and will recognize forfeitures as they occur. As required by the 1995 Plan and the 2012 Plan, the exercise price for awards granted is not to be less than the fair value of common shares as estimated by the Company as of the date of grant. The following table summarizes stock option activity, including aggregate intrinsic value for the year ended September 30, 2017: Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in years Aggregate Intrinsic Value (in thousands) (in thousands) Outstanding as of September 30, 2016 1,895 $ 28.75 7.6 $ 7,369 Granted 613 30.93 Exercised (72 ) 14.95 Forfeited (138 ) 18.73 Outstanding as of September 30, 2017 2,298 $ 30.36 7.4 $ 37,821 Options vested and expected to vest as of September 30, 2017 2,283 $ 30.35 7.4 $ 37,596 Options exercisable as of September 30, 2017 1,350 $ 28.52 6.7 $ 24,705 The aggregate intrinsic value of options is calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock. The following tables summarize additional exercise and grant date information: Years Ended September 30, 2017 2016 2015 (in thousands) Aggregate intrinsic value of stock options exercised $ 1,503 $ 7,705 $ 4,827 Proceeds from stock options exercised $ 1,079 $ 1,026 $ 726 Years Ended September 30, 2017 2016 2015 Weighted average grant date fair value of options granted (per share) $ 17.52 $ 19.12 $ 27.77 Performance-Based Options In March 2013, the Company granted to certain executives 167 options that vest upon the achievement of certain performance-based targets. The aggregate grant date fair value of these options was $2,479. During the years ended September 30, 2017 and 2016, certain performance-based targets were achieved and the Company recorded stock-based compensation expense of $413 and $620, respectively, related to achievement of those targets. No stock-based compensation expense related to these options was recognized during the year ended September 30, 2015, as none of the performance-based targets was deemed to have become probable of being achieved in that period. The performance period for these options ended during the year ended September 30, 2017. Market and Performance-Based Stock Unit Awards The Company awards both performance share units, or PSUs, and relative total stockholder return units, or rTSRUs, to its executive officers. The number of units represents the target number of shares of common stock that may be earned; however, the actual number of shares that may be earned ranges from 0% to 200% of the target number. The PSUs will vest and result in issuance, or settlement, of common shares for each recipient, based upon the recipient’s continued employment with the Company through the settlement date of the award and the Company’s achievement of specified research and development milestones. The requisite service period of the PSUs is generally 2 years. The rTSRUs will vest and result in the issuance of common stock based upon the recipient’s continuing employment with the Company through the settlement date of the award and the relative ranking of the total stockholder return, or TSR, of the Company’s common stock in relation to the TSR of the component companies in the NASDAQ Biotech Index over a two-year period based on a comparison of average closing stock prices in specified periods noted in the award agreement. The number of market-based rTSRUs awarded represents the target number of shares of common stock that may be earned; however, the actual number of shares that may be earned ranges from 0% to 200% of the target number. The Company used a Monte Carlo simulation model to estimate the grant-date fair value of the rTSRUs. Assumptions and estimates utilized in the calculation of the fair value of the rTSRUs include the risk-free interest rate, dividend yield, expected volatility based on the historical volatility of publicly traded peer companies and the remaining performance period of the award. The table below sets forth the weighted average grant date fair value assumptions used to value the rTSRUs: Years Ended September 30, 2017 2016 2015 Risk-free interest rate 1.24 % 0.94 % 0.61 % Dividend yield 0 % 0 % 0 % Expected volatility 66 % 65 % 56 % Remaining performance period (years) 1.99 1.93 1.86 The following table summarizes activity for the year ended September 30, 2017 based on a target achievement of 100%: PSUs Weighted Average Grant Date Fair Value - PSUs rTSRUs Weighted Average Grant Date Fair Value - rTSRUs (in thousands, except per share data) Unvested at September 30, 2016 49 $ 33.70 49 $ 31.74 Granted 45 $ 35.89 45 $ 46.11 Vested (19 ) $ 35.47 — $ — Cancelled (5 ) $ 35.47 (24 ) $ 25.44 Unvested at September 30, 2017 70 $ 34.51 70 $ 43.07 The PSUs that vested in fiscal 2017 relate to awards that achieved certain research and development milestones for which the Company recognized stock-based compensation expense during the year ended September 30, 2017. The following table summarizes the weighted average grant date fair value of these awards granted: Years Ended September 30, 2017 2016 2015 Weighted average grant date fair value of PSUs granted (per unit) $ 35.89 $ 32.04 $ 35.90 Weighted average grant date fair value of rTSRUs granted (per unit) $ 46.11 $ 35.70 $ 26.51 Restricted Stock Units In November 2016, the Company awarded restricted stock units to its employees, of which 50% vests in three years and 50% vests in four years, provided the employee remains employed with the Company at the time of vesting. The fair value of these awards was determined based on the intrinsic value of the stock on the date of grant and is recognized as stock-based compensation expense, net of estimated forfeitures, over the requisite service period. The following table summarizes the restricted stock unit activity for the year to date period ending September 30, 2017: Restricted Stock Units Weighted Average Grant Date Fair Value (in thousands, except per share data) Unvested at September 30, 2016 — $ — Granted 112 $ 30.00 Vested — $ — Cancelled (2 ) $ 30.00 Unvested at September 30, 2017 110 $ 30.00 Stock-Based Compensation Expense The Company recorded the following stock-based compensation expense for the years ended September 30, 2017, 2016, and 2015: Years Ended September 30, 2017 2016 2015 (in thousands) Research and development $ 4,078 $ 2,882 $ 1,644 General and administrative 8,993 6,472 4,194 $ 13,071 $ 9,354 $ 5,838 Years Ended September 30, 2017 2016 2015 (in thousands) Stock options $ 10,442 $ 8,661 $ 5,657 PSUs 668 — — rTSRUs 1,267 693 181 Restricted stock units 694 — — $ 13,071 $ 9,354 $ 5,838 As of September 30, 2017, the Company had an aggregate of $24,613 of unrecognized stock-based compensation cost, which is expected to be recognized over a weighted average period of 2.2 years. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 11. Net Income Per Share Basic and diluted net income per common share was calculated as follows for the years ended September 30, 2017, 2016, and 2015: Years Ended September 30, 2017 2016 2015 (in thousands, except per share data) Basic net income per share: Numerator: Net income $ 17,710 $ 21,666 $ 78,992 Denominator: Weighted average common shares outstanding — basic 19,066 18,929 18,673 Net income per share common share — basic $ 0.93 $ 1.14 $ 4.23 Diluted net income per share: Numerator: Net income $ 17,710 $ 21,666 $ 78,992 Denominator: Weighted average common shares outstanding — basic 19,066 18,929 18,673 Dilutive effect of common stock equivalents 341 295 622 Weighted average common shares outstanding — diluted 19,407 19,224 19,295 Net income per share common share — diluted $ 0.91 $ 1.13 $ 4.09 Anti-dilutive common stock equivalents excluded from above 2,161 1,475 605 The impact of certain common stock equivalents were excluded from the computation of diluted net income per common share attributable to common stockholders for the years ended September 30, 2017, 2016, and 2015, because those options had an anti-dilutive impact due to the assumed proceeds per share using the treasury stock method being greater than the average fair value of the Company’s common shares for those periods. As of September 30, 2017, 2016, and 2015, the Company excluded unvested performance stock awards from the calculation of diluted net income per common share as these awards contain performance conditions that would not have been achieved as of the end of each reporting period had the measurement period ended as of that date. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Leases The Company had an office and laboratory lease that was effective from fiscal 2011 to 2018. During the year ended September 30, 2015, the Company amended the lease to expand the rented space and extend the lease term through September 2022. Payment escalations specified in the lease agreement, as amended, are accrued such that rent expense is recognized on a straight-line basis over the term of occupancy. For the years ended September 30, 2017, 2016, and 2015, the Company recognized rent expense of $2,025, $2,025, and $1,326, respectively, in the consolidated statements of operations. Future minimum lease payments as of September 30, 2017 are as follows: Years Ended September 30, Operating Leases Capital Leases (in thousands) 2018 $ 2,062 $ 79 2019 2,117 86 2020 2,172 93 2021 2,229 101 2022 2,093 99 Thereafter — — Total $ 10,673 $ 458 In connection with the current lease, the Company has an outstanding letter of credit in the amount of $608 as of September 30, 2017 and 2016, collateralized by a money market account. As of September 30, 2017 and 2016, the Company classified the money market account as long-term restricted cash. The amended lease also included a $598 tenant improvement allowance from the landlord, which was accounted for as a capital lease obligation. Intellectual Property Licenses The Company has a non-exclusive intellectual property license agreement with a licensor of research technology. Under the 2012 agreement, the Company was required to pay the third party licensor an upfront license fee and additional fees up to the third anniversary of the agreement. In addition, the Company was required to pay annual maintenance fees for each year that the agreement remains in effect, commencing on the first anniversary of the agreement, in order to maintain the right to use the license. During the years ended September 30, 2017, 2016, and 2015, the Company paid $115, $120 and $200, respectively, under the agreement. The license agreement was terminated during the year ended September 30, 2017. During the year ended September 30, 2013, the Company amended an existing license agreement to extend rights to patents previously licensed for one of its programs for use in its HCV research. Under the license, the Company is obligated to pay milestones totaling up to $5,000 plus low single-digit royalties, for the development and regulatory approval of each HCV product outside of the Company’s collaboration with AbbVie and any other collaboration it may enter into in the future with a partner that has already licensed these patents. During the year ended September 30, 2016, the Company paid a $500 milestone payment under this amended agreement as a result of the Company’s filing to commence clinical development of its own HCV product candidate which was recorded as a research and development expense. There were no such payments made during the years ended September 30, 2017 and 2015. The Company has stopped further development of . Litigation and Contingencies Related to Use of Intellectual Property From time to time, the Company may become subject to legal proceedings, claims and litigation arising in the ordinary course of business. The Company currently is not a party to any threatened or pending litigation. However, third parties might allege that the Company or its collaborators are infringing their patent rights or that the Company is otherwise violating their intellectual property rights. Such third parties may resort to litigation against the Company or its collaborators, which the Company has agreed to indemnify. With respect to some of these patents, the Company expects that it will be required to obtain licenses and could be required to pay license fees or royalties, or both. These licenses may not be available on acceptable terms, or at all. A costly license, or inability to obtain a necessary license, would have a material adverse effect on the Company’s financial condition, results of operations or cash flows. The Company accrues contingent liabilities when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification Agreements In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to customers, vendors, lessors, business partners, and other parties with respect to certain matters including, but not limited to, losses arising out of breach of such agreements, from services to be provided by the Company, or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with members of its board of directors that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is, in many cases, unlimited. To date, the Company has not incurred any material costs as a result of such indemnifications. In addition, the Company maintains officers and directors insurance coverage. The Company does not believe that the outcome of any claims under indemnification arrangements will have a material effect on its financial position, results of operations or cash flows, and it has not accrued any liabilities related to such obligations in its financial statements as of September 30, 2017 and 2016. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Income before income taxes for all periods presented is from domestic operations, which are the Company’s only operations. During the years ended September 30, 2017, 2016, and 2015, the Company recorded income tax expense as follows: Years Ended September 30, 2017 2016 2015 (in thousands) Current income tax (expense) benefit: Federal $ (10,078 ) $ (12,233 ) $ (35,040 ) State (813 ) (956 ) (2,172 ) Deferred income tax (expense) benefit: Federal 1,503 2,136 (7,371 ) State 151 159 (1,880 ) $ (9,237 ) $ (10,894 ) $ (46,463 ) A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate is as follows: Years Ended September 30, 2017 2016 2015 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 2.7 2.7 2.6 Federal research and development tax credit (7.4 ) (3.8 ) (0.1 ) Share-based compensation 4.5 2.6 0.5 Change in statutory rate — — 0.3 Other (0.5 ) (3.0 ) (1.3 ) Effective income tax rate 34.3 % 33.5 % 37.0 % Net deferred tax assets as of September 30, 2017 and 2016 consisted of the following: September 30, 2017 2016 (in thousands) Deferred tax assets: Share-based compensation $ 7,899 $ 4,919 Capitalized research and development expenses 1,199 2,052 Other temporary differences 2,172 1,498 Unrealized loss 67 — Total deferred tax assets 11,337 8,469 Valuation allowance — — Net deferred tax assets 11,337 8,469 Deferred tax liabilities: Depreciation (1,026 ) (68 ) Prepaid expenses (188 ) — Unrealized gain — (11 ) Total deferred tax liabilities (1,214 ) (79 ) Net deferred income tax assets (liabilities) $ 10,123 $ 8,390 The net deferred tax asset is presented as a long-term asset on the consolidated balance sheets. After consideration of all the evidence, both positive and negative, the Company determined that no valuation allowance is needed for all or a portion of its deferred tax assets as of September 30, 2017 because it is more likely than not that the deferred tax assets will be realized. In subsequent periods, the Company may determine that it is more likely than not that the deferred tax assets will not be realized and thus, a valuation allowance may be recorded against all or any portion of its deferred tax assets on the Company’s consolidated balance sheet with a corresponding non-cash charge to income tax expense in the consolidated statements of operations. During the year ended September 30, 2015, the Company utilized $0 and $8,433 of federal and state net operating loss carryforwards, respectively generated during fiscal 2014. During the year ended September 30, 2015, the Company also utilized $4,481 and $2,214 of federal and state research and development tax credit and other credit carryforwards, respectively, generated during 2014. The Company files tax returns as prescribed by the tax laws of the jurisdictions in which it operates. In the normal course of business, the Company is subject to examination by federal and state jurisdictions, where applicable. The Company’s tax years are still open under statute from 2013 to the present. Earlier years may be examined to the extent that tax credit or net operating loss carryforwards are used in future periods. The Company has recently received notification of examination by the Internal Revenue Service for the year ending September 30, 2016. No adjustments have been proposed to date. The Company has not received notice of examination by any other jurisdictions for any other tax year open under statute. Uncertain tax positions represent tax positions for which reserves have been established. The Company’s policy is to record interest and penalties related to uncertain tax positions as part of income tax expense. A reconciliation of the beginning and ending amount of uncertain tax positions is summarized as follows: September 30, 2017 2016 (in thousands) Beginning Balance $ 745 $ 448 Additions based on tax positions for the current period 134 294 Additions based on tax positions for prior periods 355 16 Reductions for tax positions of prior periods (59 ) (13 ) Ending Balance $ 1,175 $ 745 The Company does not expect that its uncertain tax position will materially change within the next twelve months. |
401(k) Plan
401(k) Plan | 12 Months Ended |
Sep. 30, 2017 | |
Postemployment Benefits [Abstract] | |
401(k) Plan | 14. 401(k) Plan The Company has a 401(k) plan. This plan covers substantially all employees who meet minimum age and service requirements. During the years ended September 30, 2017, 2016, and 2015, the Company recognized $712, $513 and $382, respectively, of expense related to its contributions to this plan. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (unaudited) | 15. Selected Quarterly Financial Data (unaudited) Quarterly financial information for fiscal 2017 and 2016 is presented in the following table: 2017 Quarter Ended December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 (in thousands, except per share data) Revenue (1) $ 10,417 $ 8,959 $ 7,511 $ 75,927 Operating expenses 17,463 18,465 20,640 21,632 Other income (expense), net 524 549 600 660 Income tax (expense) benefit 1,542 3,565 4,103 (18,447 ) Net income (loss) (4,980 ) (5,392 ) (8,426 ) 36,508 Net income (loss) per common share — basic $ (0.26 ) $ (0.28 ) $ (0.44 ) $ 1.91 Net income (loss) per common share — diluted $ (0.26 ) $ (0.28 ) $ (0.44 ) $ 1.86 2016 Quarter Ended December 31, 2015 March 31, 2016 June 30, 2016 September 30, 2016 (in thousands, except per share data) Revenue (2) $ 48,445 $ 13,004 $ 13,978 $ 12,841 Operating expenses 12,851 13,569 15,067 15,940 Other income (expense), net 329 472 447 471 Income tax (expense) benefit (9,734 ) (1,552 ) (434 ) 826 Net income (loss) 26,189 (1,645 ) (1,076 ) (1,802 ) Net income (loss) per common share — basic $ 1.39 $ (0.09 ) $ (0.06 ) $ (0.09 ) Net income (loss) per common share — diluted $ 1.37 $ (0.09 ) $ (0.06 ) $ (0.09 ) (1) During the fourth quarter of 2017, the Company recognized $65,000 in milestone revenue from AbbVie upon achievement of commercialization regulatory approval of AbbVie’s glecaprevir-containing regimen in the U.S. and EU (2) During the first quarter of 2016, the Company recognized $30,000 in milestone revenue from AbbVie upon achievement of commercialization regulatory approval of AbbVie’s paritaprevir-containing regimen in Japan. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events In November 2017, the Company earned the remaining $15,000 milestone payment for the commercialization regulatory approval of AbbVie’s MAVIRET in Japan, which will be reflected in the Company’s consolidated statement of operations for the quarter ending December 31, 2017. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include those of the Company and its subsidiary, Enanta Pharmaceuticals Security Corporation, after elimination of all intercompany accounts and transactions. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Significant estimates and assumptions reflected in these consolidated financial statements include, but are not limited to, management’s judgments of separate units of accounting and best estimate of selling price of those units of accounting within its revenue arrangements; valuation of warrants, Series 1 nonconvertible preferred stock and stock-based awards; and the accounting for income taxes, including uncertain tax positions and the valuation of net deferred tax assets. |
Cash Equivalents and Marketable Securities | Cash Equivalents and Marketable Securities The Company considers all short-term, highly liquid investments with original maturities of ninety days or less at acquisition date to be cash equivalents. Marketable securities with original maturities of greater than ninety days and remaining maturities of less than one year from the balance sheet date are classified as short-term marketable securities. Marketable securities with remaining maturities of greater than one year from the balance sheet date are classified as long-term marketable securities. The Company classifies all of its marketable securities as available-for-sale. All marketable securities are held with one investment manager. The Company continually evaluates the credit ratings of its investment portfolio and underlying securities. The Company invests in accordance with its investment policy and invests at the date of purchase in securities with a rating of A3 or higher and A- or higher according to Moody’s and S&P, respectively. The Company reports available-for-sale investments at fair value as of each balance sheet date and records any unrealized gains or losses as a component of stockholders’ equity. The cost of securities sold is determined on a specific identification basis, and realized gains and losses are included in other income (expense), net within the consolidated statements of operations. If any adjustment to fair value reflects a decline in the value of the investment, the Company considers available evidence to evaluate the extent to which the decline is “other than temporary” and reduces the investment to fair value through a charge to the consolidated statements of operations. There were no such adjustments necessary during the years ended September 30, 2017, 2016, and 2015. |
Restricted Cash | Restricted Cash As of September 30, 2017 and 2016, the Company had an outstanding letter of credit collateralized by a money market account of $608 to the benefit of the landlord of the Company’s current building lease. This amount was classified as long-term restricted cash as of September 30, 2017 and 2016. |
Concentration of Credit Risk and of Significant Customers and Suppliers | Concentration of Credit Risk and of Significant Customers and Suppliers Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities, accounts receivable and unbilled receivables. The Company has all cash and investment balances at one accredited financial institution, including cash in amounts that exceed federally insured limits. The Company does not believe that it is subject to unusual credit risk beyond the normal credit risk associated with commercial banking relationships. The Company has historically generated all of its revenue from its collaborative research and license agreements as well as a U.S. government contract (see Note 7). As of September 30, 2017 and 2016, accounts receivable consisted of amounts due from the Company’s principal collaborator (see Note 7). The Company is completely dependent on third-party manufacturers for product supply for preclinical and clinical research activities in its non-partnered programs. The Company relies and expects to continue to rely exclusively on several manufacturers to supply it with its requirements for the active pharmaceutical ingredients related to these programs. These research programs would be adversely affected by a significant interruption in the supply of its active pharmaceutical ingredients. |
Fair Value Measurements | Fair Value Measurements Certain assets and liabilities are carried at fair value under GAAP. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. A fair value hierarchy is based on three levels of inputs which are used to measure fair value, of which the first two levels are considered observable and the last is considered unobservable: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Observable inputs (other than Level 1 quoted prices) such as quoted prices in active markets for similar assets or liabilities, quoted prices in markets that are not active for identical or similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to determining the fair value of the assets or liabilities, including pricing models, discounted cash flow methodologies and similar techniques. The Company’s instruments that are carried at fair value are cash equivalents, marketable securities and the warrant and Series 1 nonconvertible preferred stock liabilities. The carrying values of accounts receivable and unbilled receivables, accounts payable and accrued expenses approximate their fair value due to the short-term nature of these assets and liabilities. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation or amortization. Depreciation and amortization expense is recognized using the straight-line method over the following estimated useful lives: Laboratory and office equipment 5 years Leasehold improvements Shorter of life of lease or estimated useful life Purchased software 3 years Computer equipment 3 years Furniture 7 years Expenditures for repairs and maintenance of assets are charged to expense as incurred. Costs of major additions and betterments are capitalized and depreciated on a straight-line basis over their useful lives. Upon retirement or sale, the cost and related accumulated depreciation or amortization of assets disposed are removed from the accounts and any resulting gain or loss is included in income from operations in the consolidated statements of operations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews long-lived assets, including property and equipment, for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable. Factors that the Company considers in deciding when to perform an impairment review include significant underperformance of the business in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets. If an impairment review is performed to evaluate a long-lived asset for recoverability, the Company compares forecasts of undiscounted cash flows expected to result from the use and eventual disposition of the long-lived asset to its carrying value. An impairment loss would be recognized when estimated undiscounted future cash flows expected to result from the use of an asset are less than its carrying amount. The impairment loss would be based on the excess of the carrying value of the impaired asset over its fair value, determined based on discounted cash flows. To date, the Company has not recorded any impairment losses on long-lived assets. |
Revenue Recognition | Revenue Recognition The Company’s revenue has been generated primarily through collaborative research and license agreements. The terms of these agreements contain multiple deliverables, which may include (i) licenses, (ii) research and development activities, and (iii) participation in joint research and development steering committees. The terms of these agreements may include nonrefundable upfront license fees, payments for research and development activities, payments based upon the achievement of certain milestones, and royalty payments based on product sales derived from the collaboration. In all instances, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, delivery has occurred or the services have been rendered, collectibility of the resulting receivable is reasonably assured, and the Company has fulfilled its performance obligations under the contract. On October 1, 2011, the Company adopted Accounting Standards Update No. 2009-13, Multiple-Deliverable Revenue Arrangements In determining the separate units of accounting, the Company evaluates whether the license has standalone value to the collaborator based on consideration of the relevant facts and circumstances for each arrangement. Factors considered in this determination include the research and development capabilities of the collaborator and the availability of relevant research expertise in the marketplace. In addition, the Company considers whether or not (i) the collaborator can use the license for its intended purpose without the receipt of the remaining deliverables, (ii) the value of the license is dependent on the undelivered items, and (iii) the collaborator or other vendors can provide the undelivered items. For all periods presented, whenever the Company determines that an element is delivered over a period of time, revenue is recognized using either a proportional performance model or a straight-line model over the period of performance, which is typically the research and development term. Full-time equivalents (“FTEs”) are typically used as the measure of performance. At each reporting period, the Company reassesses its cumulative measure of performance and makes appropriate adjustments, if necessary. The Company recognizes revenue using the proportional performance model whenever the Company can make reasonably reliable estimates of the level of effort required to complete its performance obligations under an arrangement. Revenue recognized under the proportional performance model at each reporting period is determined by multiplying the total expected payments under the contract (excluding royalties and payments contingent upon achievement of milestones) by the ratio of the level of effort incurred to date to the estimated total level of effort required to complete the performance obligations under the arrangement. Revenue is limited to the lesser of the cumulative amount of payments received or the cumulative amount of revenue earned, as determined using the proportional performance model as of each reporting period. Alternatively, if the Company cannot make reasonably reliable estimates of the level of effort required to complete its performance obligations under an arrangement, then revenue under the arrangement is recognized on a straight-line basis over the period expected to complete the Company’s performance obligations. If and when a contingent milestone payment is earned, the additional consideration to be received is allocated to the separate units of accounting in the arrangement based on their relative selling prices at the inception of the arrangement. Revenue is limited to the lesser of the cumulative amount of payments received or the cumulative amount of revenue earned, as determined on a straight-line basis as of the period end date. If the Company cannot reasonably estimate when its performance obligation period ends, then revenue is deferred until the Company can reasonably estimate when the performance obligation period ends. Royalty revenue is recognized based on contractual terms when reported sales are reliably measurable and collectibility is reasonably assured, provided that there are no performance obligations remaining. During the years ended September 30, 2016 and 2015, the Company also generated revenue from a government contract, under which the Company was reimbursed for certain allowable costs for the funded project. Revenue from the government contract was recognized when the related service was performed. The related costs incurred by the Company under the government contract were included in research and development expenses in the consolidated statements of operations. Amounts received prior to satisfying all revenue recognition criteria are recorded as deferred revenue in the accompanying consolidated balance sheets. Amounts not expected to be recognized as revenue within the next twelve months of the consolidated balance sheet date are classified as long-term deferred revenue. In the event that a collaborative research and license agreement is terminated and the Company then has no further performance obligations, the Company recognizes as revenue any amounts that had not previously been recorded as revenue but were classified as deferred revenue at the date of such termination. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed as incurred. Included in research and development costs are wages, stock-based compensation and benefits of employees, third-party license fees and other operational costs related to the Company’s research and development activities, including facility-related expenses and external costs of outside contractors engaged to conduct both preclinical and clinical studies and manufacture quantities of product for preclinical and clinical studies. The Company also includes in research and development expense the costs to complete the Company’s obligations under research collaborations. |
Patent Costs | Patent Costs All patent-related costs incurred in connection with filing and prosecuting patent applications are recorded as general and administrative expenses as incurred, as recoverability of such expenditures is uncertain. |
Stock-Based Compensation | Stock-Based Compensation The Company measures all stock options and other stock-based awards granted to employees at fair value on the date of grant. The Company uses the Black-Scholes option-pricing model in the valuation of its stock options. The fair value of performance-based awards and restricted stock units is based on intrinsic value of the stock on the date of grant. The Company uses the Monte-Carlo simulation in order to calculate the fair value of the market-based awards. The fair value of options is recognized as stock-based compensation expense, net of estimated forfeitures, over the requisite service period, which is generally the vesting period of the respective award. The straight-line method of expense recognition is applied to all awards with service-based and market-based conditions. The Company records stock-based compensation expense related to performance-based awards when the performance-based targets are probable of being achieved. The Company classifies stock-based compensation expense in the consolidated statements of operations in the same manner in which the award recipient’s payroll costs are classified. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the financial statements or in the Company’s tax returns. Deferred taxes are determined based on the difference between the financial reporting and tax basis of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Changes in deferred tax assets and liabilities are recorded in the provision for income taxes. The Company assesses the likelihood that its deferred tax assets will be recovered from future taxable income and, to the extent it believes based upon the weight of available evidence, that it is more likely than not that all or a portion of deferred tax assets will not be realized, a valuation allowance is established through a charge to income tax expense. Potential for recovery of deferred tax assets is evaluated by estimating the future taxable profits expected and considering prudent and feasible tax planning strategies. Uncertain tax positions represent tax positions for which reserves have been established. The Company accounts for uncertainty in income taxes recognized in the consolidated financial statements by applying a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination by the taxing authorities. If the tax position is deemed more likely than not to be sustained, the tax position is then assessed to determine the amount of benefit to be recognized in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50% likelihood of being realized upon ultimate settlement. The provision for income taxes includes the effects of any resulting tax reserves, or unrecognized tax benefits, that are considered appropriate as well as the related net interest and penalties. |
Net Income per Share | Net Income per Share Basic net income per common share is computed by dividing the net income by the weighted average number of shares of common stock outstanding for the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock options and unvested restricted stock units. Market-based awards are included in diluted net income per common share to the extent they would have vested if the period end date was the market criteria measurement date. |
Segment Data | Segment Data The Company manages its operations as a single segment for the purposes of assessing performance and making operating decisions. The Company is a biotechnology company focused on discovering and developing small molecule drugs for the treatment of viral infections and liver diseases. Revenue is generated exclusively from transactions occurring with partners located in the United States and all assets are held in the United States. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net income as well as other changes in stockholders’ equity that result from transactions and economic events other than those with stockholders. The Company’s only element of other comprehensive income is unrealized gains and losses on available-for-sale marketable securities. |
Going Concern | Going Concern In August 2014, the Financial Accounting Standards Board (the “ Presentation of Financial Statements - Going Concern (Subtopic 205-40) . Based on a detailed cash forecast incorporating current research and development activities and related spending plans, the Company believes that current cash, cash equivalents and marketable securities on hand at September 30, 2017 should be sufficient to fund operations for the foreseeable future, including at least the next twelve months beyond the date of issuance of these financial statements. The amount of capital available will depend on the Company’s management of its existing cash, cash equivalents and marketable securities, as well as the level of future royalties the Company earns under its collaboration with AbbVie. If the Company should require financing beyond these resources to fund its research and development efforts, it may not be able to obtain financing on acceptable terms, or at all. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which intends to simplify several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, a choice to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. This amendment will be effective for the Company in the fiscal year beginning October 1, 2017. The Company expects to change its forfeiture rate policy on a prospective basis by recording forfeitures as they occur. Upon adoption, the cumulative impact of this policy change to retained earnings will not be material to the consolidated balance sheet. Once adopted, the consolidated statements of cash flows will present any excess tax benefits as a cash flow from operating activities. The Company has elected to adopt this change on a prospective basis. The adoption of the standard is also expected to create variability in the consolidated statements of operations on a prospective basis as the tax consequences of settled share-based payments will be recognized in income tax expense when share-based payment awards are settled. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”) which supersedes all existing revenue recognition requirements, including most industry-specific guidance. The new standard requires a company to recognize revenue when it transfers goods or services to customers in an amount that reflects the consideration that the company expects to receive for those goods or services. The FASB has continued to issue accounting standards updates to clarify and provide implementation guidance related to Revenue from Contracts with Customers, including ASU 2016-08 , Revenue from Contract with Customers: Principal versus Agent Considerations , ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing , and ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients. These amendments address a number of areas, including an entity’s identification of its performance obligations in a contract, collectibility, non-cash consideration, presentation of sales tax and an entity’s evaluation of the nature of its promise to grant a license of intellectual property and whether or not that revenue is recognized over time or at a point in time. The new guidance must be adopted using either a modified retrospective approach or a full retrospective approach for all periods presented. Under the modified retrospective method, the cumulative effect of applying the new standard would be recognized at the adoption date in retained earnings on the consolidated balance sheet. Under the full retrospective approach, the new standard would be applied to each prior reporting period presented. These new standards will be effective for the Company beginning October 1, 2018. Currently, the Company has only one revenue-generating contract – the AbbVie Agreement. The Company has completed its substantial performance obligations under the contract and is eligible to earn annually tiered per-product royalties on the portion of AbbVie’s net sales of HCV regimens allocable to the protease inhibitor in the regimen. The Company is in process of determining the method of adoption but under either method, the impact of adoption is not expected to have a material impact on the Company’s consolidated financial statements as it only has one revenue-generating arrangement outstanding to date in which all performance obligations have been achieved. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (“ASU 2016-18”) that changes the presentation of restricted cash and cash equivalents on the statement of cash flows. Restricted cash and restricted cash equivalents will be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This amendment is effective for the Company in the fiscal year beginning October 1, 2018, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2016-18 may have on its statement of cash flows. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”), which will replace the existing guidance in ASC 840, “Leases.” The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize leased assets and leased liabilities on the consolidated balance sheets and requiring disclosure of key information about leasing arrangements. This amendment is effective for the Company in the fiscal year beginning October 1, 2019, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2016-02 may have on its financial position and results of operations. In March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities (“ASU 2017-08”) which requires companies to amend the amortization period for premiums on debt securities with explicit call features to be the earliest call date rather than through the contractual life of the debt instrument. This amendment aims to more closely align the recognition of interest income with the manner in which market participants price such instruments. This amendment is effective for the Company in the fiscal year beginning October 1, 2019, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2017-08 may have on its financial position and results of operations. In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718) (“ASU 2017-09”) which This amendment is effective for the Company in the fiscal year beginning October 1, 2018, but early adoption is permissible. The Company is currently evaluating the potential impact that ASU 2017-09 may have on its financial position and results of operations. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (“ASU 2016-13”), which introduces a new methodology for accounting for credit losses on financial instruments, including available-for-sale debt securities. The guidance establishes a new “expected loss model” that requires entities to estimate current expected credit losses on financial instruments by using all practical and relevant information. Any expected credit losses are to be reflected as allowances rather than reductions in the amortized cost of available-for-sale debt securities. This amendment is effective for the Company in the fiscal year beginning October 1, 2020. The Company is currently evaluating the potential impact that ASU 2016-13 may have on its financial position and results of operations. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on the Company’s consolidated financial statements upon adoption . |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Property and Equipment Estimated Useful Lives | Property and equipment are stated at cost less accumulated depreciation or amortization. Depreciation and amortization expense is recognized using the straight-line method over the following estimated useful lives: Laboratory and office equipment 5 years Leasehold improvements Shorter of life of lease or estimated useful life Purchased software 3 years Computer equipment 3 years Furniture 7 years |
Fair Value of Financial Asset27
Fair Value of Financial Assets and Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities that were Subject to Fair Value Measurement on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that were subject to fair value measurement on a recurring basis as of September 30, 2017 and 2016 and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value: Fair Value Measurements at September 30, 2017 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 19,863 $ — $ — $ 19,863 Commercial paper — 29,756 — 29,756 Corporate bonds — 3,000 — 3,000 Marketable securities: U.S. Treasury notes 60,843 — — 60,843 Corporate bonds — 150,731 — 150,731 Commercial paper — 12,458 — 12,458 U.S. Agency bonds — 4,000 — 4,000 $ 80,706 $ 199,945 $ — $ 280,651 Liabilities: Warrant liability $ — $ — $ 807 $ 807 Series 1 nonconvertible preferred stock — — 762 762 $ — $ — $ 1,569 $ 1,569 Fair Value Measurements at September 30, 2016 Using: Level 1 Level 2 Level 3 Total (in thousands) Assets: Cash equivalents: Money market funds $ 15,295 $ — $ — $ 15,295 Marketable securities: U.S. Treasury notes 69,608 — — 69,608 Corporate bonds — 76,073 — 76,073 Commercial paper — 49,900 — 49,900 U.S. Agency bonds — 30,045 — 30,045 $ 84,903 $ 156,018 $ — $ 240,921 Liabilities: Warrant liability $ — $ — $ 1,251 $ 1,251 Series 1 nonconvertible preferred stock — — 159 159 $ — $ — $ 1,410 $ 1,410 |
Fair Value Measurements of the Company's Warrant Liability and Series 1 Nonconvertible Preferred Stock | The recurring Level 3 fair value measurements of the Company’s warrant liability and Series 1 nonconvertible preferred stock using probability-weighted discounted cash flow include the following significant unobservable inputs: Range (Weighted Average) September 30, Unobservable Input 2017 2016 Probabilities of payout 0%-65% 0%-60% Discount rate 5.25% 4.50% |
Rollforward of Aggregate Fair Values of Warrants and Outstanding Series 1 Nonconvertible Preferred Stock | The following table provides a rollforward of the aggregate fair values of the Company’s warrants for the purchase of Series 1 nonconvertible preferred stock and the outstanding Series 1 nonconvertible preferred stock for which fair value is determined by Level 3 inputs: Warrant Liability Series 1 Nonconvertible Preferred Stock (in thousands) Balance, September 30, 2014 $ 1,584 $ 202 Decrease in fair value (308 ) (39 ) Balance, September 30, 2015 $ 1,276 $ 163 Decrease in fair value (25 ) (4 ) Balance, September 30, 2016 $ 1,251 $ 159 Warrants exercised (549 ) 549 Increase in fair value 105 54 Balance, September 30, 2017 $ 807 $ 762 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Fair Value of Available-for-Sale Marketable Securities by Type of Security | As of September 30, 2017 and 2016, the fair value of available-for-sale marketable securities, by type of security, was as follows: September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate bonds $ 150,841 $ 9 $ (119 ) $ 150,731 U.S. Treasury notes 60,908 — (65 ) 60,843 Commercial paper 12,458 — — 12,458 U.S. Agency bonds 4,004 — (4 ) 4,000 $ 228,211 $ 9 $ (188 ) $ 228,032 September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Corporate bonds $ 76,077 $ 27 $ (31 ) $ 76,073 U.S. Treasury notes 69,579 38 (9 ) 69,608 Commercial paper 49,900 — — 49,900 U.S. Agency bonds 30,040 15 (10 ) 30,045 $ 225,596 $ 80 $ (50 ) $ 225,626 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following as of September 30, 2017 and 2016: September 30, 2017 2016 (in thousands) Laboratory and office equipment $ 9,521 $ 7,440 Leasehold improvements 3,717 3,715 Purchased software 775 705 Furniture 595 551 Construction in progress 250 504 Computer equipment 245 187 15,103 13,102 Less: Accumulated depreciation and amortization (7,054 ) (5,098 ) $ 8,049 $ 8,004 |
Accrued Expenses, Other Curre30
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Payables And Accruals [Abstract] | |
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities | Accrued expenses, other current liabilities and other long-term liabilities consisted of the following as of September 30, 2017 and 2016: September 30, 2017 2016 Accrued expenses: (in thousands) Accrued preclinical and clinical expenses $ 3,156 $ 899 Accrued payroll and related expenses 2,829 2,384 Accrued vendor manufacturing 1,130 459 Accrued professional fees 456 393 Capital lease obligation 79 73 Accrued other 320 304 $ 7,970 $ 4,512 Other long-term liabilities: Uncertain tax positions $ 1,175 $ 745 Accrued rent expense 676 696 Capital lease obligation 379 458 Asset retirement obligation 180 143 $ 2,410 $ 2,042 |
Series 1 Nonconvertible Prefe31
Series 1 Nonconvertible Preferred Stock and Warrants (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Outstanding Warrants | The following table summarizes the Company’s outstanding warrants: Series 1 Nonconvertible Preferred Stock Warrants Exercisable Weighted Average Exercise Price (in thousands, except per share data) Outstanding, as of September 30, 2014 1,775 $ 0.01 Granted — — Expired — — Exercised — — Outstanding, as of September 30, 2015 1,775 $ 0.01 Granted — — Expired — — Exercised — — Outstanding, as of September 30, 2016 1,775 $ 0.01 Granted — — Expired — — Exercised (745 ) $ 0.01 Outstanding, as of September 30, 2017 1,030 $ 0.01 |
Stock-Based Awards (Tables)
Stock-Based Awards (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Data Used to Determine Value of Stock Option Grants, Presented on Weighted Average Basis | The relevant data used to determine the value of the stock option awards are as follows, presented on a weighted average basis: Years Ended September 30, 2017 2016 2015 Risk-free interest rate 1.97 % 1.77 % 1.85 % Expected term (in years) 6.05 6.10 6.03 Expected volatility 60 % 70 % 74 % Expected dividends 0 % 0 % 0 % |
Stock Option Activity | The following table summarizes stock option activity, including aggregate intrinsic value for the year ended September 30, 2017: Shares Issuable Under Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in years Aggregate Intrinsic Value (in thousands) (in thousands) Outstanding as of September 30, 2016 1,895 $ 28.75 7.6 $ 7,369 Granted 613 30.93 Exercised (72 ) 14.95 Forfeited (138 ) 18.73 Outstanding as of September 30, 2017 2,298 $ 30.36 7.4 $ 37,821 Options vested and expected to vest as of September 30, 2017 2,283 $ 30.35 7.4 $ 37,596 Options exercisable as of September 30, 2017 1,350 $ 28.52 6.7 $ 24,705 |
Summary of Additional Exercise and Grant Date Information | The aggregate intrinsic value of options is calculated as the difference between the exercise price of the options and the fair value of the Company’s common stock. The following tables summarize additional exercise and grant date information: Years Ended September 30, 2017 2016 2015 (in thousands) Aggregate intrinsic value of stock options exercised $ 1,503 $ 7,705 $ 4,827 Proceeds from stock options exercised $ 1,079 $ 1,026 $ 726 Years Ended September 30, 2017 2016 2015 Weighted average grant date fair value of options granted (per share) $ 17.52 $ 19.12 $ 27.77 |
Summary of Restricted Stock Unit Activity | The following table summarizes the restricted stock unit activity for the year to date period ending September 30, 2017: Restricted Stock Units Weighted Average Grant Date Fair Value (in thousands, except per share data) Unvested at September 30, 2016 — $ — Granted 112 $ 30.00 Vested — $ — Cancelled (2 ) $ 30.00 Unvested at September 30, 2017 110 $ 30.00 |
Stock-Based Compensation Expense | The Company recorded the following stock-based compensation expense for the years ended September 30, 2017, 2016, and 2015: Years Ended September 30, 2017 2016 2015 (in thousands) Research and development $ 4,078 $ 2,882 $ 1,644 General and administrative 8,993 6,472 4,194 $ 13,071 $ 9,354 $ 5,838 Years Ended September 30, 2017 2016 2015 (in thousands) Stock options $ 10,442 $ 8,661 $ 5,657 PSUs 668 — — rTSRUs 1,267 693 181 Restricted stock units 694 — — $ 13,071 $ 9,354 $ 5,838 |
Relative Total Stockholder Return Units [Member] | |
Data Used to Determine Value of Stock Option Grants, Presented on Weighted Average Basis | . The table below sets forth the weighted average grant date fair value assumptions used to value the rTSRUs: Years Ended September 30, 2017 2016 2015 Risk-free interest rate 1.24 % 0.94 % 0.61 % Dividend yield 0 % 0 % 0 % Expected volatility 66 % 65 % 56 % Remaining performance period (years) 1.99 1.93 1.86 |
Performance Share Units and Relative Total Stockholder Return Units [Member] | |
Summary of Additional Exercise and Grant Date Information | The following table summarizes the weighted average grant date fair value of these awards granted: Years Ended September 30, 2017 2016 2015 Weighted average grant date fair value of PSUs granted (per unit) $ 35.89 $ 32.04 $ 35.90 Weighted average grant date fair value of rTSRUs granted (per unit) $ 46.11 $ 35.70 $ 26.51 |
Summary of PSUs and rTSRUs Activity | The following table summarizes activity for the year ended September 30, 2017 based on a target achievement of 100%: PSUs Weighted Average Grant Date Fair Value - PSUs rTSRUs Weighted Average Grant Date Fair Value - rTSRUs (in thousands, except per share data) Unvested at September 30, 2016 49 $ 33.70 49 $ 31.74 Granted 45 $ 35.89 45 $ 46.11 Vested (19 ) $ 35.47 — $ — Cancelled (5 ) $ 35.47 (24 ) $ 25.44 Unvested at September 30, 2017 70 $ 34.51 70 $ 43.07 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income Per Common Share | Basic and diluted net income per common share was calculated as follows for the years ended September 30, 2017, 2016, and 2015: Years Ended September 30, 2017 2016 2015 (in thousands, except per share data) Basic net income per share: Numerator: Net income $ 17,710 $ 21,666 $ 78,992 Denominator: Weighted average common shares outstanding — basic 19,066 18,929 18,673 Net income per share common share — basic $ 0.93 $ 1.14 $ 4.23 Diluted net income per share: Numerator: Net income $ 17,710 $ 21,666 $ 78,992 Denominator: Weighted average common shares outstanding — basic 19,066 18,929 18,673 Dilutive effect of common stock equivalents 341 295 622 Weighted average common shares outstanding — diluted 19,407 19,224 19,295 Net income per share common share — diluted $ 0.91 $ 1.13 $ 4.09 Anti-dilutive common stock equivalents excluded from above 2,161 1,475 605 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Lease Payments | Future minimum lease payments as of September 30, 2017 are as follows: Years Ended September 30, Operating Leases Capital Leases (in thousands) 2018 $ 2,062 $ 79 2019 2,117 86 2020 2,172 93 2021 2,229 101 2022 2,093 99 Thereafter — — Total $ 10,673 $ 458 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | During the years ended September 30, 2017, 2016, and 2015, the Company recorded income tax expense as follows: Years Ended September 30, 2017 2016 2015 (in thousands) Current income tax (expense) benefit: Federal $ (10,078 ) $ (12,233 ) $ (35,040 ) State (813 ) (956 ) (2,172 ) Deferred income tax (expense) benefit: Federal 1,503 2,136 (7,371 ) State 151 159 (1,880 ) $ (9,237 ) $ (10,894 ) $ (46,463 ) |
Reconciliation of Income Tax Provision at Federal Statutory Income Tax Rate and Effective Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to the Company’s effective tax rate is as follows: Years Ended September 30, 2017 2016 2015 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State taxes, net of federal benefit 2.7 2.7 2.6 Federal research and development tax credit (7.4 ) (3.8 ) (0.1 ) Share-based compensation 4.5 2.6 0.5 Change in statutory rate — — 0.3 Other (0.5 ) (3.0 ) (1.3 ) Effective income tax rate 34.3 % 33.5 % 37.0 % |
Net Deferred Tax Assets and Liabilities | Net deferred tax assets as of September 30, 2017 and 2016 consisted of the following: September 30, 2017 2016 (in thousands) Deferred tax assets: Share-based compensation $ 7,899 $ 4,919 Capitalized research and development expenses 1,199 2,052 Other temporary differences 2,172 1,498 Unrealized loss 67 — Total deferred tax assets 11,337 8,469 Valuation allowance — — Net deferred tax assets 11,337 8,469 Deferred tax liabilities: Depreciation (1,026 ) (68 ) Prepaid expenses (188 ) — Unrealized gain — (11 ) Total deferred tax liabilities (1,214 ) (79 ) Net deferred income tax assets (liabilities) $ 10,123 $ 8,390 |
Schedule of Reconciliation of Uncertain Tax Positions | A reconciliation of the beginning and ending amount of uncertain tax positions is summarized as follows: September 30, 2017 2016 (in thousands) Beginning Balance $ 745 $ 448 Additions based on tax positions for the current period 134 294 Additions based on tax positions for prior periods 355 16 Reductions for tax positions of prior periods (59 ) (13 ) Ending Balance $ 1,175 $ 745 |
Selected Quarterly Financial 36
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Quarterly financial information for fiscal 2017 and 2016 is presented in the following table: 2017 Quarter Ended December 31, 2016 March 31, 2017 June 30, 2017 September 30, 2017 (in thousands, except per share data) Revenue (1) $ 10,417 $ 8,959 $ 7,511 $ 75,927 Operating expenses 17,463 18,465 20,640 21,632 Other income (expense), net 524 549 600 660 Income tax (expense) benefit 1,542 3,565 4,103 (18,447 ) Net income (loss) (4,980 ) (5,392 ) (8,426 ) 36,508 Net income (loss) per common share — basic $ (0.26 ) $ (0.28 ) $ (0.44 ) $ 1.91 Net income (loss) per common share — diluted $ (0.26 ) $ (0.28 ) $ (0.44 ) $ 1.86 2016 Quarter Ended December 31, 2015 March 31, 2016 June 30, 2016 September 30, 2016 (in thousands, except per share data) Revenue (2) $ 48,445 $ 13,004 $ 13,978 $ 12,841 Operating expenses 12,851 13,569 15,067 15,940 Other income (expense), net 329 472 447 471 Income tax (expense) benefit (9,734 ) (1,552 ) (434 ) 826 Net income (loss) 26,189 (1,645 ) (1,076 ) (1,802 ) Net income (loss) per common share — basic $ 1.39 $ (0.09 ) $ (0.06 ) $ (0.09 ) Net income (loss) per common share — diluted $ 1.37 $ (0.09 ) $ (0.06 ) $ (0.09 ) (1) During the fourth quarter of 2017, the Company recognized $65,000 in milestone revenue from AbbVie upon achievement of commercialization regulatory approval of AbbVie’s glecaprevir-containing regimen in the U.S. and EU (2) During the first quarter of 2016, the Company recognized $30,000 in milestone revenue from AbbVie upon achievement of commercialization regulatory approval of AbbVie’s paritaprevir-containing regimen in Japan. |
Nature of the Business - Additi
Nature of the Business - Additional Information (Detail) | Sep. 30, 2017Drug |
Protease Inhibitors [Member] | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of product discovered | 2 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2017USD ($)Contract | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Summary of Accounting and Financial Policies [Line Items] | |||
Adjustment to fair value | $ 0 | $ 0 | $ 0 |
Cash and investment restricted as a collateral for outstanding letter of credit | $ 608,000 | 608,000 | |
Number of revenue-generating contract | Contract | 1 | ||
Money Market Funds [Member] | |||
Summary of Accounting and Financial Policies [Line Items] | |||
Cash and investment restricted as a collateral for outstanding letter of credit | $ 608,000 | $ 608,000 | |
Maximum [Member] | |||
Summary of Accounting and Financial Policies [Line Items] | |||
Short-term investments maturity period | 90 days | ||
Short-term marketable securities maturity period | 1 year | ||
Minimum [Member] | |||
Summary of Accounting and Financial Policies [Line Items] | |||
Short-term marketable securities maturity period | 90 days | ||
Long-term marketable securities maturity period | 1 year | ||
Income tax benefit recognition, percentage of likelihood of being realized upon settlement | 50.00% |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Property and Equipment Estimated Useful Lives (Detail) | 12 Months Ended |
Sep. 30, 2017 | |
Laboratory and Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Leasehold improvements useful life | Shorter of life of lease or estimated useful life |
Purchased Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 3 years |
Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment useful life | 7 years |
Fair Value of Financial Asset40
Fair Value of Financial Assets and Liabilities - Financial Assets and Liabilities that were Subject to Fair Value Measurement on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Assets: | ||||
Available for sale securities, fair value | $ 228,032 | $ 225,626 | ||
Assets, Fair Value Disclosure, Total | 280,651 | 240,921 | ||
Liabilities: | ||||
Liabilities, Fair Value Disclosure, Total | 1,569 | 1,410 | ||
Warrant Liability [Member] | ||||
Liabilities: | ||||
Liabilities | 807 | 1,251 | $ 1,276 | $ 1,584 |
Series 1 Nonconvertible Preferred Stock [Member] | ||||
Liabilities: | ||||
Liabilities | 762 | 159 | $ 163 | $ 202 |
Series 1 Nonconvertible Preferred Stock [Member] | Warrant Liability [Member] | ||||
Liabilities: | ||||
Liabilities | 807 | 1,251 | ||
U.S. Treasury Notes [Member] | ||||
Assets: | ||||
Available for sale securities, fair value | 60,843 | 69,608 | ||
Money Market Funds [Member] | ||||
Assets: | ||||
Cash equivalents | 19,863 | 15,295 | ||
Corporate Bonds [Member] | ||||
Assets: | ||||
Cash equivalents | 3,000 | |||
Available for sale securities, fair value | 150,731 | 76,073 | ||
Commercial Paper [Member] | ||||
Assets: | ||||
Cash equivalents | 29,756 | |||
Available for sale securities, fair value | 12,458 | 49,900 | ||
U.S. Agency Bonds [Member] | ||||
Assets: | ||||
Available for sale securities, fair value | 4,000 | 30,045 | ||
Level 1 [Member] | ||||
Assets: | ||||
Assets, Fair Value Disclosure, Total | 80,706 | 84,903 | ||
Level 1 [Member] | U.S. Treasury Notes [Member] | ||||
Assets: | ||||
Available for sale securities, fair value | 60,843 | 69,608 | ||
Level 1 [Member] | Money Market Funds [Member] | ||||
Assets: | ||||
Cash equivalents | 19,863 | 15,295 | ||
Level 2 [Member] | ||||
Assets: | ||||
Assets, Fair Value Disclosure, Total | 199,945 | 156,018 | ||
Level 2 [Member] | Corporate Bonds [Member] | ||||
Assets: | ||||
Cash equivalents | 3,000 | |||
Available for sale securities, fair value | 150,731 | 76,073 | ||
Level 2 [Member] | Commercial Paper [Member] | ||||
Assets: | ||||
Cash equivalents | 29,756 | |||
Available for sale securities, fair value | 12,458 | 49,900 | ||
Level 2 [Member] | U.S. Agency Bonds [Member] | ||||
Assets: | ||||
Available for sale securities, fair value | 4,000 | 30,045 | ||
Level 3 [Member] | ||||
Liabilities: | ||||
Liabilities, Fair Value Disclosure, Total | 1,569 | 1,410 | ||
Level 3 [Member] | Warrant Liability [Member] | ||||
Liabilities: | ||||
Liabilities | 807 | 1,251 | ||
Level 3 [Member] | Series 1 Nonconvertible Preferred Stock [Member] | ||||
Liabilities: | ||||
Liabilities | $ 762 | $ 159 |
Fair Value of Financial Asset41
Fair Value of Financial Assets and Liabilities - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |||
Transfers between Level 1, Level 2 and Level 3 | $ 0 | $ 0 | $ 0 |
Fair Value of Financial Asset42
Fair Value of Financial Assets and Liabilities - Fair Value Measurements of the Company's Warrant Liability and Series 1 Nonconvertible Preferred Stock (Detail) - Warrant Liability [Member] - Series 1 Nonconvertible Preferred Stock [Member] | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Discount rate | 5.25% | 4.50% |
Minimum [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Probabilities of payout | 0.00% | 0.00% |
Maximum [Member] | ||
Fair Value Inputs, Liabilities, Quantitative Information [Line Items] | ||
Probabilities of payout | 65.00% | 60.00% |
Fair Value of Financial Asset43
Fair Value of Financial Assets and Liabilities - Rollforward of Aggregate Fair Values of Warrants (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Series 1 Nonconvertible Preferred Stock [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning Balance | $ 159 | $ 163 | $ 202 |
Warrants exercised | 549 | ||
Increase (Decrease) in fair value | 54 | (4) | (39) |
Ending Balance | 762 | 159 | 163 |
Warrant Liability [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning Balance | 1,251 | 1,276 | 1,584 |
Warrants exercised | (549) | ||
Increase (Decrease) in fair value | 105 | (25) | (308) |
Ending Balance | 807 | 1,251 | $ 1,276 |
Warrant Liability [Member] | Series 1 Nonconvertible Preferred Stock [Member] | |||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||
Beginning Balance | 1,251 | ||
Ending Balance | $ 807 | $ 1,251 |
Marketable Securities - Fair Va
Marketable Securities - Fair Value of Available-for-Sale Marketable Securities by Type of Security (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 228,211 | $ 225,596 |
Gross Unrealized Gains | 9 | 80 |
Gross Unrealized Losses | (188) | (50) |
Fair Value | 228,032 | 225,626 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 150,841 | 76,077 |
Gross Unrealized Gains | 9 | 27 |
Gross Unrealized Losses | (119) | (31) |
Fair Value | 150,731 | 76,073 |
U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 60,908 | 69,579 |
Gross Unrealized Gains | 38 | |
Gross Unrealized Losses | (65) | (9) |
Fair Value | 60,843 | 69,608 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,458 | 49,900 |
Fair Value | 12,458 | 49,900 |
U.S. Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,004 | 30,040 |
Gross Unrealized Gains | 15 | |
Gross Unrealized Losses | (4) | (10) |
Fair Value | $ 4,000 | $ 30,045 |
Marketable Securities - Additio
Marketable Securities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Marketable securities maturing in greater than one year, aggregate fair value | $ 70,038 | $ 32,119 |
Short Term Marketable Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity period of the marketable securities | Within one year | |
Corporate Bond Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity period of the marketable securities | Between one and three years | |
U.S. Treasury Notes [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Maturity period of the marketable securities | Between one and three years |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 15,103 | $ 13,102 |
Less: Accumulated depreciation and amortization | (7,054) | (5,098) |
Property and equipment, net | 8,049 | 8,004 |
Laboratory and Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 9,521 | 7,440 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 3,717 | 3,715 |
Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 775 | 705 |
Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 595 | 551 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 250 | 504 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 245 | $ 187 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property Plant And Equipment [Abstract] | |||
Depreciation and amortization expense | $ 2,137 | $ 1,661 | $ 639 |
Accrued Expenses, Other Curre48
Accrued Expenses, Other Current Liabilities and Other Long-Term Liabilities - Accrued Expenses, Other Current Liabilities and Other Long-term Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Accrued expenses: | ||
Accrued preclinical and clinical expenses | $ 3,156 | $ 899 |
Accrued payroll and related expenses | 2,829 | 2,384 |
Accrued vendor manufacturing | 1,130 | 459 |
Accrued professional fees | 456 | 393 |
Capital lease obligation | 79 | 73 |
Accrued other | 320 | 304 |
Accrued expenses | 7,970 | 4,512 |
Other long-term liabilities: | ||
Uncertain tax positions | 1,175 | 745 |
Accrued rent expense | 676 | 696 |
Capital lease obligation | 379 | 458 |
Asset retirement obligation | 180 | 143 |
Other long-term liabilities | $ 2,410 | $ 2,042 |
Collaboration Agreements - Addi
Collaboration Agreements - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Collaboration agreement date | Nov. 27, 2006 | ||
Milestone revenue payments received | $ 65,000 | $ 30,000 | $ 125,000 |
Collaboration agreement date | Sep. 30, 2011 | ||
Revenue from grants | 576 | 1,803 | |
AbbVie [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Agreement continuation period | 10 years | ||
AbbVie [Member] | Paritaprevir 3-DAA Regimen [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Percentage of net sales to be allocated | 30.00% | ||
AbbVie [Member] | Paritaprevir 2-DAA Regimen [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Percentage of net sales to be allocated | 45.00% | ||
AbbVie [Member] | Glecaprevir [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Percentage of net sales to be allocated | 50.00% | ||
AbbVie [Member] | Additional Funding Agreement Terms [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Potential future milestone | $ 15,000 | ||
AbbVie [Member] | Milestone Payments [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Milestone revenue payments received | 65,000 | 30,000 | 125,000 |
AbbVie [Member] | Milestone Payments and Royalties [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Proceed received to fund research activities and preferred stock financing | 500,000 | ||
National Institutes of Health, National Institute of Allergy and Infectious Diseases Contract [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Revenue from grants | $ 576 | $ 1,803 | |
Funding received for research and development | $ 20,637 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | |||
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, par value | $ 0.01 | $ 0.01 | |
Treasury stock outstanding shares retired | 209,000 |
Series 1 Nonconvertible Prefe51
Series 1 Nonconvertible Preferred Stock and Warrants - Additional Information (Detail) - USD ($) | Oct. 04, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | Nov. 30, 2010 |
Class of Stock [Line Items] | ||||||
Fair value of the Series 1 nonconvertible preferred stock | $ 762,000 | $ 159,000 | ||||
Expiration of oustanding warrants | 0 | 0 | 0 | |||
Warrants to purchase total shares | 745,000 | |||||
Warrant Liability [Member] | ||||||
Class of Stock [Line Items] | ||||||
Fair value of series 1 nonconvertible preferred stock warrants | $ 807,000 | $ 1,251,000 | $ 1,276,000 | $ 1,584,000 | ||
Series 1 Nonconvertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred Shares authorized | 2,000,000 | |||||
Par value of outstanding convertible preferred stock | $ 0.01 | |||||
Per share value adjusted for stock dividend | 1 | |||||
Preferred stock redemption price per share | $ 1 | |||||
Redemption period | 60 days | |||||
Number of shares issuable upon exercise of the warrants | 2,000,000 | |||||
Warrant expiration date | Oct. 4, 2017 | |||||
Transfer of assets upon exercise of warrants maximum amount | $ 2,000,000 | |||||
Change in fair value of warrants | $ (159,000) | 29,000 | 347,000 | |||
Fair value of the Series 1 nonconvertible preferred stock | 762,000 | 159,000 | ||||
Fair value of series 1 nonconvertible preferred stock warrants | 762,000 | 159,000 | $ 163,000 | $ 202,000 | ||
Series 1 Nonconvertible Preferred Stock [Member] | Subsequent Event [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of shares issuable upon exercise of the warrants | 970,000 | |||||
Expiration of oustanding warrants | 52,000 | |||||
Warrants to purchase total shares | 977,000 | |||||
Series 1 Nonconvertible Preferred Stock [Member] | Warrant Liability [Member] | ||||||
Class of Stock [Line Items] | ||||||
Fair value of series 1 nonconvertible preferred stock warrants | $ 807,000 | $ 1,251,000 |
Series 1 Nonconvertible Prefe52
Series 1 Nonconvertible Preferred Stock and Warrants - Summary of Outstanding Warrants (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Warrants And Rights Note Disclosure [Abstract] | |||
Beginning Balance | 1,775 | 1,775 | 1,775 |
Granted | 0 | 0 | 0 |
Expired | 0 | 0 | 0 |
Exercised | (745) | ||
Ending Balance | 1,030 | 1,775 | 1,775 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 0.01 | $ 0.01 | $ 0.01 |
Weighted Average Exercise Price Outstanding, Exercised | 0.01 | ||
Weighted Average Exercise Price Outstanding, Ending Balance | $ 0.01 | $ 0.01 | $ 0.01 |
Stock-Based Awards - Additional
Stock-Based Awards - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 01, 2017 | Nov. 30, 2016 | Mar. 31, 2013 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |||
Compensation expenses | $ 13,071 | $ 9,354 | $ 5,838 | |||
Target to achieve, percentage | 100.00% | |||||
Aggregate of unrecognized stock-based compensation cost | $ 24,613 | |||||
Weighted average recognition period | 2 years 2 months 13 days | |||||
Relative Total Stockholder Return Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares awarded | 45,000 | |||||
Compensation expenses | $ 1,267 | 693 | 181 | |||
PSU [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares awarded | 45,000 | |||||
Compensation expenses | $ 668 | |||||
Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares awarded | 112,000 | |||||
Compensation expenses | $ 694 | |||||
Restricted Stock Units [Member] | Tranche One [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Vesting percentage | 50.00% | |||||
Restricted Stock Units [Member] | Tranche Two [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Vesting percentage | 50.00% | |||||
Certain Executives [Member] | Performance-Based Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares awarded | 167,000 | |||||
Aggregate grant date fair value of award | $ 2,479 | |||||
Compensation expenses | $ 413 | $ 620 | $ 0 | |||
Certain Executives [Member] | PSU [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted, requisite service period | 2 years | |||||
Maximum [Member] | Executive Officers [Member] | Relative Total Stockholder Return Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares range percentage | 200.00% | |||||
Minimum [Member] | Executive Officers [Member] | Relative Total Stockholder Return Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares range percentage | 0.00% | |||||
2012 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of potential common stock shares to be issued | 3.00% | |||||
Shares available for future grant | 274,000 | |||||
2012 Equity Incentive Plan [Member] | Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options granted, requisite service period | 4 years | |||||
Options granted, expiration period | 10 years | |||||
2012 Equity Incentive Plan [Member] | Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock shares authorized | 574,000 | |||||
2012 Equity Incentive Plan [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock shares authorized | 2,088,000 | |||||
2012 Equity Incentive Plan [Member] | Maximum [Member] | Employees [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
2012 Equity Incentive Plan [Member] | Maximum [Member] | Non-Employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year | |||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future grant | 186,000 | |||||
Shares issued | 0 |
Stock-Based Awards - Data Used
Stock-Based Awards - Data Used to Determine Value of Stock Option Grants, Presented on Weighted Average Basis (Detail) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | |||
Expected volatility | 60.00% | 70.00% | 74.00% |
Risk-free interest rate | 1.97% | 1.77% | 1.85% |
Expected term (in years) | 6 years 18 days | 6 years 1 month 6 days | 6 years 11 days |
Expected dividends | 0.00% | 0.00% | 0.00% |
Executive Officer [Member] | Relative Total Stockholder Return Units [Member] | |||
Share Based Payment Award Stock Options Valuation Assumptions [Line Items] | |||
Risk-free interest rate | 1.24% | 0.94% | 0.61% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 66.00% | 65.00% | 56.00% |
Expected term (in years) | 1 year 11 months 26 days | 1 year 11 months 4 days | 1 year 10 months 10 days |
Stock-Based Awards - Stock Opti
Stock-Based Awards - Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Options | |||
Outstanding as of beginning of period | 1,895 | ||
Granted | 613 | ||
Exercised | (72) | ||
Forfeited | (138) | ||
Outstanding as of end of period | 2,298 | 1,895 | |
Options vested and expected to vest as of end of period | 2,283 | ||
Options exercisable as of end of period | 1,350 | ||
Weighted Average Exercise Price | |||
Outstanding | $ 28.75 | ||
Granted | 30.93 | ||
Exercised | 14.95 | ||
Forfeited | 18.73 | ||
Outstanding | 30.36 | $ 28.75 | |
Options vested and expected to vest as of end of period | 30.35 | ||
Options exercisable as of end of period | $ 28.52 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding as of end of period | 7 years 4 months 24 days | 7 years 7 months 6 days | |
Options vested and expected to vest as of end period | 7 years 4 months 24 days | ||
Options exercisable as of end of period | 6 years 8 months 12 days | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value | $ 37,821 | $ 7,369 | |
Options vested and expected to vest as of end of period | 37,596 | ||
Options exercisable as of end of period | 24,705 | ||
Aggregate intrinsic value of stock options exercised | 1,503 | 7,705 | $ 4,827 |
Proceeds from stock options exercised | $ 1,079 | $ 1,026 | $ 726 |
Weighted average grant date fair value of options granted (per share) | $ 17.52 | $ 19.12 | $ 27.77 |
Stock-Based Awards - Summary of
Stock-Based Awards - Summary of PSUs and rTSRUs Activity (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
PSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested, beginning balance | 49 | ||
Granted | 45 | ||
Vested | (19) | ||
Cancelled | (5) | ||
Unvested, ending balance | 70 | 49 | |
Weighted Average Grant Date Fair Value, Unvested beginning balance | $ 33.70 | ||
Weighted Average Grant Date Fair Value, Granted | 35.89 | $ 32.04 | $ 35.90 |
Weighted Average Grant Date Fair Value, Vested | 35.47 | ||
Weighted Average Grant Date Fair Value, Cancelled | 35.47 | ||
Weighted Average Grant Date Fair Value, Unvested ending balance | $ 34.51 | $ 33.70 | |
rTSRUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unvested, beginning balance | 49 | ||
Granted | 45 | ||
Cancelled | (24) | ||
Unvested, ending balance | 70 | 49 | |
Weighted Average Grant Date Fair Value, Unvested beginning balance | $ 31.74 | ||
Weighted Average Grant Date Fair Value, Granted | 46.11 | $ 35.70 | $ 26.51 |
Weighted Average Grant Date Fair Value, Cancelled | 25.44 | ||
Weighted Average Grant Date Fair Value, Unvested ending balance | $ 43.07 | $ 31.74 |
Stock-Based Awards - Summary 57
Stock-Based Awards - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Units [Member] shares in Thousands | 12 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 112 |
Cancelled | shares | (2) |
Unvested, ending balance | shares | 110 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | $ 30 |
Weighted Average Grant Date Fair Value, Cancelled | $ / shares | 30 |
Weighted Average Grant Date Fair Value, Unvested ending balance | $ / shares | $ 30 |
Stock-Based Awards - Stock-Base
Stock-Based Awards - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 13,071 | $ 9,354 | $ 5,838 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 10,442 | 8,661 | 5,657 |
PSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 668 | ||
rTSRUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 1,267 | 693 | 181 |
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 694 | ||
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | 4,078 | 2,882 | 1,644 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation expense | $ 8,993 | $ 6,472 | $ 4,194 |
Net Income Per Share - Basic an
Net Income Per Share - Basic and Diluted Net Income Per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic net income per share: | |||||||||||
Net income | $ 36,508 | $ (8,426) | $ (5,392) | $ (4,980) | $ (1,802) | $ (1,076) | $ (1,645) | $ 26,189 | $ 17,710 | $ 21,666 | $ 78,992 |
Weighted average common shares outstanding — basic | 19,066 | 18,929 | 18,673 | ||||||||
Net income (loss) per share common share — basic | $ 1.91 | $ (0.44) | $ (0.28) | $ (0.26) | $ (0.09) | $ (0.06) | $ (0.09) | $ 1.39 | $ 0.93 | $ 1.14 | $ 4.23 |
Diluted net income per share: | |||||||||||
Net income | $ 36,508 | $ (8,426) | $ (5,392) | $ (4,980) | $ (1,802) | $ (1,076) | $ (1,645) | $ 26,189 | $ 17,710 | $ 21,666 | $ 78,992 |
Weighted average common shares outstanding — basic | 19,066 | 18,929 | 18,673 | ||||||||
Dilutive effect of common stock equivalents | 341 | 295 | 622 | ||||||||
Weighted average common shares outstanding — diluted | 19,407 | 19,224 | 19,295 | ||||||||
Net income (loss) per share common share — diluted | $ 1.86 | $ (0.44) | $ (0.28) | $ (0.26) | $ (0.09) | $ (0.06) | $ (0.09) | $ 1.37 | $ 0.91 | $ 1.13 | $ 4.09 |
Anti-dilutive common stock equivalents excluded from above | 2,161 | 1,475 | 605 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Commitments And Contingencies [Line Items] | |||
Office lease expiration period | Sep. 30, 2022 | ||
Rent expense | $ 2,025,000 | $ 2,025,000 | $ 1,326,000 |
Outstanding letter of credit | 608,000 | 608,000 | |
Restricted cash | 608,000 | 608,000 | |
Tenant improvement allowance | 598,000 | ||
Company's obligation to pay | 5,000,000 | ||
Research and Development [Member] | |||
Commitments And Contingencies [Line Items] | |||
Milestone payment made | 0 | 500,000 | 0 |
License Agreement Terms [Member] | |||
Commitments And Contingencies [Line Items] | |||
License agreement, recorded liability paid | $ 115,000 | $ 120,000 | $ 200,000 |
Commitments and Contingencies61
Commitments and Contingencies - Future Minimum Lease Payments (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,018 | $ 2,062 |
2,019 | 2,117 |
2,020 | 2,172 |
2,021 | 2,229 |
2,022 | 2,093 |
Total | 10,673 |
2,018 | 79 |
2,019 | 86 |
2,020 | 93 |
2,021 | 101 |
2,022 | 99 |
Total | $ 458 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Current income tax (expense) benefit: | |||||||||||
Federal | $ (10,078) | $ (12,233) | $ (35,040) | ||||||||
State | (813) | (956) | (2,172) | ||||||||
Deferred income tax (expense) benefit: | |||||||||||
Federal | 1,503 | 2,136 | (7,371) | ||||||||
State | 151 | 159 | (1,880) | ||||||||
Total tax (expense) benefit | $ 18,447 | $ (4,103) | $ (3,565) | $ (1,542) | $ (826) | $ 434 | $ 1,552 | $ 9,734 | $ (9,237) | $ (10,894) | $ (46,463) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Provision at Federal Statutory Income Tax Rate and Effective Tax Rate (Detail) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State taxes, net of federal benefit | 2.70% | 2.70% | 2.60% |
Federal research and development tax credit | (7.40%) | (3.80%) | (0.10%) |
Share-based compensation | 4.50% | 2.60% | 0.50% |
Change in statutory rate | 0.30% | ||
Other | (0.50%) | (3.00%) | (1.30%) |
Effective income tax rate | 34.30% | 33.50% | 37.00% |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Deferred tax assets: | ||
Share-based compensation | $ 7,899 | $ 4,919 |
Capitalized research and development expenses | 1,199 | 2,052 |
Other temporary differences | 2,172 | 1,498 |
Unrealized loss | 67 | |
Total deferred tax assets | 11,337 | 8,469 |
Valuation allowance | 0 | 0 |
Net deferred tax assets | 11,337 | 8,469 |
Deferred tax liabilities: | ||
Depreciation | (1,026) | (68) |
Prepaid expenses | (188) | |
Unrealized gain | (11) | |
Total deferred tax liabilities | (1,214) | (79) |
Net deferred income tax assets (liabilities) | $ 10,123 | $ 8,390 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Thousands | Sep. 30, 2014USD ($) |
Federal [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | $ 0 |
Research and development tax credit carryforwards | 4,481 |
State [Member] | |
Income Tax [Line Items] | |
Net operating loss carryforwards | 8,433 |
Research and development tax credit carryforwards | $ 2,214 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||
Beginning Balance | $ 745 | $ 448 |
Additions based on tax positions for the current period | 134 | 294 |
Additions based on tax positions for prior periods | 355 | 16 |
Reductions for tax positions of prior periods | (59) | (13) |
Ending Balance | $ 1,175 | $ 745 |
401(k) Plan - Additional Inform
401(k) Plan - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Compensation Related Costs [Abstract] | |||
Benefits charged to operating expenses | $ 712 | $ 513 | $ 382 |
Selected Quarterly Financial 68
Selected Quarterly Financial Data (unaudited) - Schedule of Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 75,927 | $ 7,511 | $ 8,959 | $ 10,417 | $ 12,841 | $ 13,978 | $ 13,004 | $ 48,445 | $ 102,814 | $ 88,268 | $ 160,880 |
Operating expenses | 21,632 | 20,640 | 18,465 | 17,463 | 15,940 | 15,067 | 13,569 | 12,851 | |||
Other income (expense), net | 660 | 600 | 549 | 524 | 471 | 447 | 472 | 329 | |||
Income tax (expense) benefit | (18,447) | 4,103 | 3,565 | 1,542 | 826 | (434) | (1,552) | (9,734) | 9,237 | 10,894 | 46,463 |
Net income (loss) | $ 36,508 | $ (8,426) | $ (5,392) | $ (4,980) | $ (1,802) | $ (1,076) | $ (1,645) | $ 26,189 | $ 17,710 | $ 21,666 | $ 78,992 |
Net income (loss) per share common share — basic | $ 1.91 | $ (0.44) | $ (0.28) | $ (0.26) | $ (0.09) | $ (0.06) | $ (0.09) | $ 1.39 | $ 0.93 | $ 1.14 | $ 4.23 |
Net income (loss) per share common share — diluted | $ 1.86 | $ (0.44) | $ (0.28) | $ (0.26) | $ (0.09) | $ (0.06) | $ (0.09) | $ 1.37 | $ 0.91 | $ 1.13 | $ 4.09 |
Selected Quarterly Financial 69
Selected Quarterly Financial Data (unaudited) - Schedule of Quarterly Financial Information (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Schedule Of Quarterly Financial Information [Line Items] | |||||
Milestones | $ 65,000 | $ 30,000 | $ 125,000 | ||
AbbVie [Member] | United States and European Union [Member] | |||||
Schedule Of Quarterly Financial Information [Line Items] | |||||
Milestones | $ 65,000 | ||||
AbbVie [Member] | Japan [Member] | |||||
Schedule Of Quarterly Financial Information [Line Items] | |||||
Milestones | $ 30,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Subsequent Event [Line Items] | |||||
Milestone payments earned | $ 65,000 | $ 30,000 | $ 125,000 | ||
AbbVie [Member] | Japan [Member] | |||||
Subsequent Event [Line Items] | |||||
Milestone payments earned | $ 30,000 | ||||
Milestone Payments [Member] | AbbVie [Member] | |||||
Subsequent Event [Line Items] | |||||
Milestone payments earned | $ 65,000 | $ 30,000 | $ 125,000 | ||
Subsequent Event [Member] | Milestone Payments [Member] | AbbVie [Member] | Japan [Member] | MAVIRET [Member] | |||||
Subsequent Event [Line Items] | |||||
Milestone payments earned | $ 15,000 |