Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 01, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ATNX | |
Entity Registrant Name | Athenex, Inc. | |
Entity Central Index Key | 0001300699 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 67,065,698 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 71,003 | $ 49,794 |
Short-term investments | 341 | 57,629 |
Accounts receivable, net of chargebacks and other deductions of $10,448 and $13,101, respectively, and allowance for doubtful accounts of $8 and $9, respectively | 20,576 | 12,951 |
Inventories | 25,191 | 28,787 |
Prepaid expenses and other current assets | 33,569 | 21,658 |
Total current assets | 150,680 | 170,819 |
Property and equipment, net | 12,249 | 11,447 |
Goodwill | 37,589 | 37,495 |
Intangible assets, net | 10,361 | 10,848 |
Operating lease right-of-use assets, net | 9,428 | |
Deferred income tax assets | 486 | |
Total assets | 220,307 | 231,095 |
Current liabilities: | ||
Accounts payable | 20,389 | 12,997 |
Accrued expenses | 42,571 | 37,718 |
Current portion of operating lease liabilities | 3,067 | |
Current portion of long-term debt | 1,720 | 961 |
Total current liabilities | 67,747 | 51,676 |
Long-term liabilities: | ||
Deferred compensation | 2,605 | 2,825 |
Deferred rent | 2,022 | |
Long-term operating lease liabilities | 8,362 | |
Long-term debt and finance lease obligations | 46,012 | 45,803 |
Total liabilities | 124,726 | 102,326 |
Commitments and contingencies (See Note 15) | ||
Stockholders' equity: | ||
Common stock, par value $0.001 per share, 250,000,000 shares authorized at March 31, 2019 and December 31, 2018; 68,718,618 and 68,668,986 shares issued at March 31, 2019 and December 31, 2018, respectively; 67,045,698 and 66,996,066 shares outstanding at March 31, 2019 and December 31, 2018, respectively | 69 | 69 |
Additional paid-in capital | 593,035 | 591,064 |
Accumulated other comprehensive income (loss) | 415 | (656) |
Accumulated deficit | (478,949) | (443,716) |
Less: treasury stock, at cost; 1,672,920 shares at March 31, 2019 and December 31, 2018 | (7,406) | (7,406) |
Total Athenex, Inc. stockholders' equity | 107,164 | 139,355 |
Non-controlling interests | (11,583) | (10,586) |
Total stockholders' equity | 95,581 | 128,769 |
Total liabilities and stockholders' equity | $ 220,307 | $ 231,095 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, chargebacks and other deductions (in dollars) | $ 10,448 | $ 13,101 |
Allowance for doubtful accounts (in dollars) | $ 8 | $ 9 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 68,718,618 | 68,668,986 |
Common Stock, shares outstanding | 67,045,698 | 66,996,066 |
Treasury stock, shares | 1,672,920 | 1,672,920 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue: | ||
Total revenue | $ 25,307 | $ 37,836 |
Costs and operating expenses: | ||
Cost of sales | 19,902 | 11,326 |
Research and development expenses | 24,475 | 21,303 |
Selling, general, and administrative expenses | 15,188 | 13,080 |
Total costs and operating expenses | 59,565 | 45,709 |
Operating loss | (34,258) | (7,873) |
Interest expense (income) | 1,472 | (227) |
Loss before income tax expense (benefit) | (35,730) | (7,646) |
Income tax expense (benefit) | 500 | (307) |
Net loss | (36,230) | (7,339) |
Less: net loss attributable to non-controlling interests | (997) | (41) |
Net loss attributable to Athenex, Inc. | (35,233) | (7,298) |
Unrealized gain (loss) on investment, net of income taxes | 3 | (35) |
Foreign currency translation adjustment, net of income taxes | 1,068 | 718 |
Comprehensive loss | $ (34,162) | $ (6,615) |
Net loss per share attributable to Athenex, Inc. common stockholders, basic and diluted (See Note 12) | $ (0.53) | $ (0.12) |
Weighted-average shares used in computing net loss per share attributable to Athenex, Inc. common stockholders, basic and diluted (See Note 12) | 67,011,432 | 61,655,294 |
Product Sales, Net | ||
Revenue: | ||
Total revenue | $ 25,163 | $ 12,605 |
License Fees and Consulting Revenue | ||
Revenue: | ||
Total revenue | 105 | 25,091 |
Grant Revenue | ||
Revenue: | ||
Total revenue | $ 39 | $ 140 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total Athenex, Inc. Stockholders' Equity | Non-Controlling Interests |
Beginning Balance at Dec. 31, 2017 | $ 90,722 | $ 60 | $ 423,805 | $ (326,276) | $ (146) | $ (7,406) | $ 90,037 | $ 685 |
Beginning balance, shares at Dec. 31, 2017 | 59,894,362 | (1,672,920) | ||||||
Sale of common stock | 68,055 | $ 4 | 68,051 | 68,055 | ||||
Sale of common stock, shares | 4,765,000 | |||||||
Stock-based compensation cost | 2,161 | 2,161 | 2,161 | |||||
Restricted stock expense | 540 | 540 | 540 | |||||
Stock options and warrants exercised | 1,263 | $ 1 | 1,262 | 1,263 | ||||
Stock options and warrants exercised, shares | 289,487 | |||||||
Net loss | (7,339) | (7,298) | (7,298) | (41) | ||||
Other comprehensive income, net of tax | 683 | 683 | 683 | |||||
Ending balance at Mar. 31, 2018 | 156,085 | $ 65 | 495,819 | (333,574) | 537 | $ (7,406) | 155,441 | 644 |
Ending balance, shares at Mar. 31, 2018 | 64,948,849 | (1,672,920) | ||||||
Beginning Balance at Dec. 31, 2018 | 128,769 | $ 69 | 591,064 | (443,716) | (656) | $ (7,406) | 139,355 | (10,586) |
Beginning balance, shares at Dec. 31, 2018 | 68,668,986 | (1,672,920) | ||||||
Stock-based compensation cost | 1,693 | 1,693 | 1,693 | |||||
Stock options and warrants exercised | 278 | 278 | 278 | |||||
Stock options and warrants exercised, shares | 49,632 | |||||||
Net loss | (36,230) | (35,233) | (35,233) | (997) | ||||
Other comprehensive income, net of tax | 1,071 | 1,071 | 1,071 | |||||
Ending balance at Mar. 31, 2019 | $ 95,581 | $ 69 | $ 593,035 | $ (478,949) | $ 415 | $ (7,406) | $ 107,164 | $ (11,583) |
Ending balance, shares at Mar. 31, 2019 | 68,718,618 | (1,672,920) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Stock issuance costs and discounts | $ 4,611 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (36,230) | $ (7,339) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 879 | 868 |
Stock-based compensation expense | 1,778 | 2,701 |
Amortization of debt discount | 257 | |
Deferred rent expense | 168 | |
Gain on disposal of assets | (62) | |
Deferred income taxes | 486 | (321) |
Changes in operating assets and liabilities: | ||
Receivables, net | (7,624) | 623 |
Prepaid expenses and other assets | (11,911) | 494 |
Inventories | 3,596 | (2,010) |
Accounts payable and accrued expenses | 15,798 | (7,848) |
Net cash used in operating activities | (32,971) | (12,726) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (918) | (1,177) |
Payments for licenses | (4,175) | |
Purchases of short-term investments | (67,256) | |
Sale of short-term investments | 57,291 | 11,633 |
Net cash provided by (used in) investing activities | 52,198 | (56,800) |
Cash flows from financing activities: | ||
Proceeds from sale of stock | 72,666 | |
Proceeds from issuance of debt | 743 | |
Costs incurred related to the sale of stock | (4,611) | |
Proceeds from exercise of stock options | 278 | 1,263 |
Repayment of finance lease obligations and long-term debt | (45) | (337) |
Net cash provided by financing activities | 976 | 68,981 |
Net increase (decrease) in cash and cash equivalents | 20,203 | (545) |
Cash and cash equivalents, beginning of period | 49,794 | 39,284 |
Effect of exchange rate changes on cash and cash equivalents | 1,006 | 478 |
Cash and cash equivalents, end of period | 71,003 | 39,217 |
Supplemental cash flow disclosures | ||
Interest paid | 981 | 13 |
Non-cash investing and financing activities: | ||
Accrued purchases of property and equipment | 634 | $ 104 |
Right-of-use assets recognized in exchange for new operating lease obligations | $ 583 |
Company and Nature of Business
Company and Nature of Business | 3 Months Ended |
Mar. 31, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Company and Nature of Business | 1. Company and Nature of Business Organization and Description of Business Athenex, Inc. and subsidiaries (the “Company” or “Athenex”), originally under the name Kinex Pharmaceuticals LLC (“Kinex”), formed in November 2003, commenced operations on February 5, 2004, and operated as a limited liability company until it was incorporated in the State of Delaware under the name Kinex Pharmaceuticals, Inc. on December 31, 2012. The Company changed its name to Athenex, Inc. on August 26, 2015. Athenex is a global biopharmaceutical company dedicated to the discovery, development and commercialization of novel therapies for the treatment of cancer. The Company’s mission is to improve the lives of cancer patients by creating more effective, safer and tolerable treatments. The Company’s current clinical pipeline is derived from Orascovery, Src Kinase Inhibition, T-cell receptor-engineered T-cells (TCR-T), and Arginine deprivation therapy research platforms. The Company has assembled a leadership team and has established global operations in the U.S. and China across the pharmaceutical value chain to execute its mission to become a global leader in bringing innovative cancer treatments to the market and improve health outcomes. The Company’s primary activities since commencement have been conducting research and development internally and through corporate collaborators, in-licensing and out-licensing pharmaceutical compounds and technology, and conducting clinical trials. The Company also conducts commercial sales of specialty products through its wholly-owned subsidiary, Athenex Pharmaceutical Division (APD), under its Commercial Platform. Follow-On Offering In January 2018, the Company completed an underwritten public follow-on offering of 4,300,000 shares of its common stock. The Company granted the underwriters a 30-day option to purchase up to an additional 645,000 shares of common stock. In February 2018, the underwriters partially exercised their option, purchasing an additional 465,000 shares of common stock. All shares were offered by the Company at a price of $15.25 per share. Net proceeds were $68.1 million, after deducting underwriting discounts and commissions and offering expenses of $4.6 million. Debt and Equity Offering On July 3, 2018, the Company closed a privately placed debt and equity financing deal with Perceptive Advisors LLC and its affiliates (“Perceptive”) for gross proceeds of $100.0 million and received aggregate net proceeds of $97.1 million, net of fees and offering expenses. The Company entered into a 5-year senior secured loan for $50.0 million of this financing and issued 2,679,528 shares of its common stock at a purchase price of $18.66 per share for the remaining $50.0 million. The loan matures on the fifth anniversary from the closing date and bears interest at a floating per annum rate equal to London Interbank Offering Rates (“LIBOR”) (with a floor of 2.0%) plus 9.0%. The Company is required to make monthly interest-only payments with a bullet payment of the principal at maturity. The loan agreement contains specified financial maintenance covenants. Significant Risks and Uncertainties The Company has incurred operating losses since its inception and, as a result, as of March 31, 2019 and December 31, 2018 had an accumulated deficit of $478.9 million and $443.7 million, respectively. Operations have been funded primarily through the sale of common stock and, to a lesser extent, from convertible bond financing, senior secured loan, revenue, and grant funding. The Company will require significant additional funds to conduct clinical trials and to fund its operations. There can be no assurances, however, that additional funding will be available on favorable terms, or at all. If adequate funds are not available, the Company may be required to delay, modify, or terminate its research and development programs or reduce its planned commercialization efforts. The Company believes that it will be able to obtain additional working capital through equity financings or other arrangements to fund operations, including additional public offerings; however, there can be no assurance that such additional financing, if available, can be obtained on terms acceptable to the Company. If the Company is unable to obtain such additional financing, the Company will need to reevaluate future operating plans and might delay, modify, or terminate its research and development programs or reduce its planned commercialization efforts. Accordingly, there is substantial doubt regarding the Company’s ability to continue as a going concern. These condensed consolidated financial statements have been prepared on a going concern basis, which implies the Company will continue to realize its assets and discharge its liabilities in the normal course of the business. The Company’s recurring losses from operations and negative cash flows from operations have raised substantial doubt regarding its ability to continue as a going concern. The condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might result from the outcome of this uncertainty. The Company has a senior secured loan agreement which contains various covenants. A breach of any of these covenants could result in a default. If a default under this loan agreement is not cured or waived, the default could result in the acceleration of debt, which could require us to repurchase or repay the debt in full prior to the date it is otherwise due. If we default, the lender may seek repayment through our subsidiary guarantors or by executing on the security interest granted pursuant to the loan agreement. Athenex is subject to a number of risks similar to other biopharmaceutical companies, including, but not limited to, the lack of available capital, possible failure of preclinical testing or clinical trials, inability to obtain marketing approval of product candidates, competitors developing new technological innovations, unsuccessful commercialization strategy and launch plans for our proprietary drug candidates, market acceptance of the Company’s products, and protection of proprietary technology. If the Company does not successfully commercialize any of its product candidates, it will be unable to generate sufficient product revenue and might not, if ever, achieve profitability and positive cash flow. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting ) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments ) considered necessary for a fair presentation of the results of the Company for the periods presented. These condensed consolidated financial statements reflect the accounts and operations of the Company and those of its subsidiaries in which the Company has a controlling financial interest. Intercompany transactions and balances have been fully eliminated in consolidation. Results of the operations for the three months ended March 31, 2019 are not necessarily indicative of the results expected for the full fiscal year or for any future annual or interim period. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (“SEC”) on March 11, 2019. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amount of revenue and expenses during the reporting period. Such management estimates include those relating to assumptions used in clinical research accruals, chargebacks, allowance for doubtful accounts, inventory reserves, income taxes, the estimated useful life and recoverability of long-lived assets, and the valuation of stock-based awards. Actual results could differ from those estimates. Leases The Company determines if an arrangement contains a lease at inception. For arrangements where the Company is the lessee, the Company will evaluate whether to account for the lease as either an operating or financing lease. Operating leases are included in right-of-use assets (“ROU assets”) and operating lease liabilities on the condensed consolidated balance sheet as of March 31, 2019. The Company’s finance leases are included in property and equipment, net and long-term debt and finance lease obligations on the condensed consolidated balance sheet. A majority of the Company’s operating leases are for real estate properties used in operations located in the U.S. and Asia. The Company’s finance leases are for manufacturing equipment in the U.S. ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the operating lease liabilities as the Company’s leases generally do not provide an implicit rate. The Company uses the stated rate per each lease agreement in determining the finance lease liabilities. Lease terms may include options to extend or terminate when the Company is reasonably certain that the option will be exercised. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for short-term leases. Concentration of Credit Risk, Other Risks and Uncertainties Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and short-term investments. The Company deposits its cash equivalents in interest-bearing money market accounts and invests in highly liquid U.S. treasury notes, commercial paper and corporate bonds. The Company deposits its cash with multiple financial institutions. Cash balances exceed federally insured limits. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer and establishing a minimum allowable credit rating. The Company also has significant assets and liabilities held in its overseas manufacturing facility in China, and therefore is subject to foreign currency fluctuation. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, " Leases (Topic 842), The Company adopted the new lease standard on January 1, 2019 and used the effective date as our date of initial application. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company (1) to not reassess whether any expired or existing contracts are or contain leases, (2) to not reassess the lease classification for any expired or existing leases, and (3) to not reassess initial direct costs for any existing leases. The Company also elected the single component practical expedient, which requires the Company, by class of underlying asset, not to allocate the total consideration to the lease and nonlease components based on their relative stand-alone selling prices. This single component practical expedient requires the Company to account for the lease component and nonlease component(s) associated with that lease as a single component if (i) the timing and pattern of transfer of the lease component and the nonlease component(s) associated with it are the same and (ii) the lease component would be classified as an operating lease if it were accounted for separately. In preparation for adoption of the standard, the Company implemented internal controls to enable the preparation of financial information. The standard had a material impact on our consolidated balance sheet, with no material impact on our consolidated statement of operations and comprehensive loss. On the adoption date, the Company recognized $9.8 million of operating lease ROU assets, $11.9 million of operating lease liabilities, and derecognized its existing deferred rent balance of $2.1 million. In June 2018, the FASB issued ASU No. 2018-07, “ Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Compensation – Stock Compensation |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories consist of the following (in thousands): March 31, 2019 December 31, 2018 Raw materials and purchased parts $ 3,962 $ 4,092 Work in progress 3,174 3,166 Finished goods 18,055 21,529 Total inventories $ 25,191 $ 28,787 |
Intangible Assets, net
Intangible Assets, net | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | 4. Intangible Assets, net The Company’s identifiable intangible assets, net, consist of the following (in thousands): March 31, 2019 Cost/Fair Value Accumulated Amortization Impairments Net Amortizable intangible assets: Licenses $ 8,935 $ 2,432 $ — $ 6,503 Polymed customer list 1,593 974 — 619 Polymed technology 3,712 1,125 — 2,587 Product rights 530 295 — 235 Indefinite-lived intangible assets: CDE in-process research and development (IPR&D) 728 — — 728 Effect of currency translation adjustment (311 ) — — (311 ) Total intangible assets, net $ 15,187 $ 4,826 $ — $ 10,361 December 31, 2018 Cost/Fair Value Accumulated Amortization Impairments Net Amortizable intangible assets Licenses $ 8,935 $ 2,060 $ — $ 6,875 Polymed customer list 1,593 938 — 655 Polymed technology 3,712 999 — 2,713 Product rights 530 263 — 267 Indefinite-lived intangible assets: CDE in-process research and development (IPR&D) 1,026 — 298 728 Effect of currency translation adjustment (390 ) — — (390 ) Total intangibles, net $ 15,406 $ 4,260 $ 298 $ 10,848 As of March 31, 2019, licenses at cost include an Orascovery license of $0.4 million and licenses purchased from Gland Pharma Limited (“Gland”) of $4.3 million, and a license purchased from MAIA Pharmaceuticals, Inc. (“MAIA”) for $4.0 million. The Orascovery license with Hanmi Pharmaceuticals Co. Ltd. (“Hanmi”) was purchased directly from Hanmi and is being amortized on a straight-line basis over a period of 12.75 years, the remaining life of the license agreement at the time of purchase. The licenses purchased from Gland are being amortized on a straight-line basis over a period of 5 years, the remaining life of the license agreement at the time of purchase. The license purchased from MAIA is being amortized over a period of 7 years, the remaining life of the license agreement at the time of purchase. The remaining intangible assets were acquired in connection with the acquisitions of Athenex Pharma Solutions (“APS” or “Athenex Pharma Solutions,” and formerly known as QuaDPharma), Polymed Therapeutics, Inc. (“Polymed”), and Comprehensive Drug Enterprises (“CDE”). Intangible assets are amortized using an economic consumption model over their useful lives. The APS customer list was being amortized on a straight-line basis over 7 years. The Polymed customer list and technology are amortized on a straight-line basis over 6 and 12 years, respectively. The CDE in-process research and development, (“IPR&D”), will not be amortized until the related projects are completed. IPR&D will be tested annually for impairment, unless conditions exist causing an earlier impairment test (e.g., abandonment of project). No impairment charges were recorded during the three months ended March 31, 2019. The weighted-average useful life for all intangible assets was 7.58 years as of March 31, 2019. The Company recorded $0.5 million and $0.4 million of amortization expense for the three months ended March 31, 2019 and 2018, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements Financial instruments consist of cash and cash equivalents, short-term investments, an equity investment, accounts receivable, accounts payable, accrued liabilities, and debt. Short-term investments and the equity investment are stated at fair value. Cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, and debt, are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date of such amounts. ASC 820, Fair Value Measurements , establishes a framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under the ASC 820 are described as follows: Level 1 —Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 —Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means; and • If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 —Inputs to the valuation methodology are unobservable, supported by little or no market activity, and are significant to the fair value measurement. Transfers between levels, if any, are recorded as of the beginning of the reporting period in which the transfer occurs. There were no transfers between Levels 1, 2 or 3 for any of the periods presented. The following tables represent the fair value hierarchy for those assets and liabilities that the Company measures at fair value on a recurring basis (in thousands): Fair Value Measurements at March 31, 2019 Using: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Available-for-sale investment $ 341 $ 341 $ — $ — Total assets $ 341 $ 341 $ — $ — Fair Value Measurements at December 31, 2018 Using: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Financial assets included within cash and cash equivalents Money market funds $ 25 $ 25 $ — $ — Short-term investments - commercial paper 5,396 — 5,396 — Financial assets included within short-term investments Short-term investments - commercial paper 36,544 — 36,544 — Short-term investments - corporate notes 16,699 — 16,699 — Short-term investments - U.S. government bonds 3,998 — 3,998 — Available-for-sale investment 388 388 — — Total assets $ 63,050 $ 413 $ 62,637 $ — The Company classifies its money market funds within Level 1 because it uses quoted market prices to determine their fair value. The Company classifies its commercial paper, corporate notes, and U.S. government bonds within Level 2 because it uses quoted prices for similar assets or liabilities in active markets and each has a specified term and all Level 2 inputs are observable for substantially the full term of each instrument. The Company owns 68,000 shares of PharmaEssentia, a company publicly traded on the Taiwan OTC Exchange. As of March 31, 2019 and December 31, 2018, the Company’s investment in PharmaEssentia was valued at the reported closing price. This investment is classified as a Level 1 investment. |
Asset Acquisition
Asset Acquisition | 3 Months Ended |
Mar. 31, 2019 | |
Asset Acquisition [Abstract] | |
Asset Acquisition | 6. Asset Acquisition On June 29, 2018, the Company entered into a Share Subscription Agreement (“SSA”) for Axis Therapeutics (“Axis”), a subsidiary of the Company jointly owned by Athenex and Xiangxue Life Sciences Limited (“XLifeSc”). Under the SSA, Athenex contributed $30.0 million cash for a 55% ownership interest in Axis and XLifeSc contributed a license for The Company has consolidated the financial statements of Axis into its condensed consolidated financial statements as of and for the three months ended March 31, 2019 and as of and for the year ended December 31, 2018 using the voting interest model. The nonmonetary exchange of 45% of the shares of Axis for the IPR&D from XLife has been accounted for as an asset acquisition that does not constitute a business under ASC 805. Therefore, the acquisition of IPR&D was expensed as research and development expense at its fair value. The Company determined that the fair value of the equity issued to XLifeSc was $24.5 million, considering the $30.0 million contribution made by the Company for its 55% ownership interest and the arms-length nature of the transaction. Accordingly, the Company recorded an expense of $24.5 million within research and development expenses on its consolidated statements of operations and comprehensive loss for the year ended December 31, 2018. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses consist of the following (in thousands): March 31, December 31, 2019 2018 Accrued wages and benefits $ 6,508 $ 5,061 Accrued clinical expenses 1,888 2,653 Accrued operating expenses 3,646 8,128 Deferred revenue 131 190 Accrued R&D licensing fees 654 4,827 Accrued tax withholdings 192 — Accrued selling fees and rebates 1,910 423 Accrued construction costs 27,642 16,436 Total accrued expenses $ 42,571 $ 37,718 The accrued construction costs relate to the building of the manufacturing facility in Dunkirk, NY. Of this amount, the Company expects $27.1 million to be reimbursed by New York State. This amount is recorded within prepaid expenses and other current assets on the Company’s condensed consolidated balance sheet as of March 31, 2019. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Company did not record a provision for federal income taxes for the three months ended March 31, 2019 because it expects to generate a loss for the year ending December 31, 2019 and the Company’s net deferred tax assets continue to be fully offset by a valuation allowance. |
Debt and Lease Obligations
Debt and Lease Obligations | 3 Months Ended |
Mar. 31, 2019 | |
Debt And Lease Obligations [Abstract] | |
Debt and Lease Obligations | 9. Debt and Lease Obligations Debt The Company’s debt as of March 31, 2019 and December 31, 2018, consists of the following (in thousands): March 31, December 31, 2019 2018 Current portion of mortgage $ 792 $ 779 Current portion of bank loan 743 — Current portion of finance and capital lease obligation 185 182 Long-term portion of finance and capital lease obligation 374 422 Senior secured loan, net of debt discount and financing fees of $4,362 and $4,619, respectively 45,638 45,381 Total $ 47,732 $ 46,764 The mortgage payments, assumed in connection with the acquisition of CDE, extend through July 30, 2019. During 2018, the Company issued a senior secured loan with a principal value of $50.0 million and a maturity date of June 30, 2023. The loan bears interest at a floating per annum rate equal to LIBOR (with a floor of 2.0%) plus 9.0%. The Company is required to make monthly interest-only payments with a bullet payment of the principal at maturity. During the first quarter of 2019, the Company was issued an unsecured, subordinated bank loan to fund operations in China. This loan has a principal value of $0.7 million, a maturity date of December 11, 2019, and bears interest at a fixed rate of 5.7% annually. Lease Obligations The Company has operating leases for office and manufacturing facilities in several locations in the U.S. and Asia and has three finance leases for manufacturing equipment used in its facilities near Buffalo, NY. The components of lease expense are as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 781 Finance lease cost: Amortization of assets 12 Interest on lease liabilities 9 Total net lease cost $ 802 The Company has elected to exclude short-term leases from its operating lease ROU assets and lease liabilities. Lease costs for short-term leases were not material to the financial statements for the three months ended March 31, 2019. Variable lease costs for the three months ended March 31, 2019 were not material to the financial statements. Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate): March 31, 2019 Operating leases: Operating lease ROU assets, net $ 9,428 Current operating lease liabilities $ 3,067 Long-term operating lease liabilities 8,362 Total operating lease liabilities $ 11,429 Finance leases: Property and equipment, at cost $ 688 Accumulated amortization, net (40 ) Property and equipment, net $ 648 Current obligations of finance leases $ 185 Long-term portion of finance leases 374 Total finance lease obligations $ 559 Weighted average remaining lease term (in years): Operating leases 5.83 Finance leases 2.86 Weighted average discount rate: Operating leases 13.0 % Finance leases 5.9 % Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended March 31, 2019 Cash paid for amount included in the measurements of lease liabilities: Operating cash flows from operating leases $ 803 Operating cash flows from finance leases 9 Financing cash flows from finance leases 45 ROU assets recognized in exchange for new operating lease obligations $ 583 Future minimum payments and maturities of leases is as follows (in thousands): Year ending December 31: Operating Leases Finance Leases 2019 (remaining nine months) $ 2,551 $ 161 2020 2,968 214 2021 2,535 214 2022 2,356 20 2023 2,096 — Thereafter 3,952 — Total lease payments 16,458 609 Less: Imputed interest (5,029 ) (50 ) Total lease obligations 11,429 559 Less: Current obligations (3,067 ) (185 ) Long-term lease obligations $ 8,362 $ 374 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions During the three months ended March 31, 2019 and 2018, the Company entered into transactions with individuals and companies that have financial interests in the Company. Related party transactions included the following: a. In 2015, CDE signed an agreement with Avalon BioMedical (Management) Limited and its subsidiaries (“Avalon”) under which Avalon would receive certain administrative services and would occupy space at CDE’s research location. Avalon would reimburse CDE for these administrative services as incurred and pay CDE a percentage of the total rent payment based on its staff headcount occupying the Hong Kong research and development facility (See Note 15— Commitments and Contingencies In June 2018, the Company entered into two in-licensing agreements with Avalon wherein the Company obtained certain intellectual property from Avalon in an effort to develop and commercialize the underlying products. Under these agreements the Company is required to pay upfront fees and future milestone payments and sales-based royalties. During the year ended December 31, 2018, the Company recorded $5.5 million of upfront fees, consisting of $3.5 million in cash and $2.0 million in equity, as research and development expense on its condensed consolidated statement of operations and comprehensive loss. b. The Company receives consulting and licensing revenue from PharmaEssentia, a company in which Athenex has an investment classified as available-for-sale (see Note 5— Fair Value Measurements c. The Company receives certain clinical development services from ZenRx Limited and its subsidiaries (“ZenRx”), a company for which one of our executive officers serves on the board of directors. In connection with such services, the Company made payments to ZenRx of d . Certain family members of executives perform consulting services to the Company. Such services were not significant to the condensed consolidated financial statements. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | 11. Stock-Based Compensation Common Stock Option Plans The Company has four equity compensation plans, adopted in 2017, 2013, 2007 and 2004 (the “Plans”) which authorize the grant of up to 16,000,000 shares of common stock to employees, directors, and consultants. Additionally, on June 14, 2017, the Company adopted its 2017 Employee Stock Purchase Plan (the “ESPP”), which authorizes the issuance of up to 1,000,000 shares of common stock for future issuances to eligible employees. Stock Options The total fair value of stock options vested and recorded as compensation expense during the three months ended March 31, 2019 and 2018 was $1.7 million and $2.2 million, respectively. As of March 31, 2019, $14.8 million of unrecognized cost related to non-vested stock options was expected to be recognized over a weighted-average period of approximately 1.7 years. T he total intrinsic value of options exercised was approximately $0.4 million and $3.4 million for the three months ended March 31, 2019 and 2018, respectively The following table summarizes the status of the Company’s stock option activity granted under the Plans to employees, directors, and consultants (in thousands, except stock option amounts and exercise price): Stock Options Weighted- Average Exercise price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2018 10,687,650 $ 8.51 6.87 $ 44,688 Granted 760,000 13.17 — — Exercised (49,632 ) 5.60 — — Forfeited and expired (122,985 ) 13.86 — — Outstanding at March 31, 2019 11,275,033 $ 8.78 6.36 $ 39,154 Vested and exercisable at March 31, 2019 8,153,661 $ 6.88 5.45 $ 43,787 The Company determines the fair value of stock-based awards on the grant date using the Black-Scholes option pricing model, which is impacted by assumptions regarding a number of highly subjective variables. The following table summarizes the weighted-average assumptions used as inputs to the Black-Scholes model during the periods indicated: Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Weighted average grant date fair value $ 8.03 $ 9.43 Expected dividend yield — % — % Expected stock price volatility 64 % 59 % Risk-free interest rate 2.63 % 2.57 % Expected life of options (in years) 6.3 5.6 Employee Stock Purchase Plan The ESPP is available to eligible employees as defined in the plan document. Under the ESPP, shares of the Company’s common stock may be purchased at a discount (15%) of the lesser of the closing price of the Company’s common stock on the first trading or the last trading day of the offering period. The current offering period extends from December 1, 2018 to June 30, 2019. The Company expects to offer 6-month offering periods after the current period. The 2017 Plans reserved 1,000,000 shares of common stock for issuance under the ESPP. Stock-based compensation related to the ESPP amounted to $0.1 million and $0 for the three months ended March 31, 2019 and 2018, respectively. Stock-Based Compensation Cost The components of stock-based compensation and the amounts recorded within research and development expenses and selling, general, and administrative expenses in the Company’s consolidated statements of operations and comprehensive loss consisted of the following for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Stock options $ 1,693 $ 2,161 Restricted stock expense — 540 Employee stock purchase plan 85 — Total stock-based compensation expense $ 1,778 $ 2,701 Cost of sales $ 64 $ 44 Research and development expenses 591 513 Selling, general, and administrative expenses 1,123 2,144 Total stock-based compensation expense $ 1,778 $ 2,701 |
Net Loss per Share Attributable
Net Loss per Share Attributable to Athenex, Inc. Common Stockholders | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Share Attributable to Athenex, Inc. Common Stockholders | 12. Net Loss per Share Attributable to Athenex, Inc. Common Stockholders Basic net loss per share is calculated by dividing net loss attributable to Athenex, Inc. common stockholders by the weighted-average number of common shares issued, outstanding, and vested during the period. Diluted net loss per share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common share and common shares equivalents for the period using the treasury-stock method. For the purposes of this calculation, warrants to purchase common stock and stock options are considered common stock equivalents but are only included in the calculation of diluted net loss per share when their effect is dilutive. The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Three Months Ended March 31, 2019 2018 Stock options and other common stock equivalents 11,219,839 9,931,020 Unvested restricted shares — 240,000 Total potential dilutive shares 11,219,839 10,171,020 |
Business Segment, Geographic, a
Business Segment, Geographic, and Concentration Risk Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment, Geographic, and Concentration Risk Information | 13. Business Segment, Geographic, and Concentration Risk Information The Company has three operating segments, which are organized based mainly on the nature of the business activities performed and regulatory environments in which they operate. The Company also considers the types of products from which the reportable segments derive their revenue (only applicable to two reportable segments). Each operating segment has a segment manager who is held accountable for operations and has discrete financial information that is regularly reviewed by the Company’s chief operating decision-maker. Consequently, the Company has concluded each operating segment to be a reportable segment. The Company’s operating segments are as follows: Oncology Innovation Platform —This operating segment performs research and development on certain of the Company’s proprietary drugs, from the preclinical development of its chemical compounds, to the execution and analysis of its several clinical trials. This segment focuses specifically on Orascovery and Src Kinase Inhibition research platforms, and TCR-T Immunotherapy and Arginine Deprivation Therapy. This segment performs research in the United States, Taiwan, Hong Kong, and mainland China. Global Supply Chain Platform —This operating segment includes APS and Polymed. APS is a contract manufacturing company that provides small to mid-scale Current Good Manufacturing Practices (“cGMP”) manufacturing of clinical and commercial products for pharmaceutical and biotech companies and for the internal supplies to the clinical studies and commercial development of our proprietary drugs. APS also performs microbiological and analytical testing for raw material and formulated products and has expanded and begun to manufacture and sell pharmaceutical products under Section 503B of the Compounding Quality Act within the Federal Food, Drug & Cosmetic Act. Polymed markets and sells active pharmaceutical ingredient (“API”) and medical devices in North America, Europe, and Asia from its locations in Texas and China. Polymed also develops new compounds and processing techniques, and manufactures API at Taihao, a cGMP facility in Chongqing, China. Commercial Platform —This operating segment includes Athenex Pharmaceutical Division, which focuses on the manufacturing, distribution, and sales of specialty pharmaceuticals. This segment provides services and products to external customers based mainly in the United States. The Company’s Oncology Innovation Platform segment operates and holds long-lived assets located in the United States, Taiwan, Hong Kong, and mainland China. The Global Supply Chain Platform segment operates and holds long-lived assets located in the United States and China. The Commercial Platform segment operates and holds long-lived assets located in the United States. For geographic segment reporting, product sales have been attributed to countries based on the location of the customer. Segment information is as follows (in thousands): Three Months Ended March 31, 2019 2018 Total revenue: Oncology Innovation Platform $ 144 $ 25,231 Global Supply Chain Platform 11,339 5,127 Commercial Platform 14,675 8,694 Total revenue for reportable segments 26,158 39,052 Intersegment revenue (851 ) (1,216 ) Total consolidated revenue $ 25,307 $ 37,836 Intersegment revenue eliminated in the above table reflects sales from the Global Supply Chain Platform to the Oncology Innovation Platform. Three Months Ended March 31, 2019 2018 Total revenue by product group: API sales $ 4,831 $ 2,642 Medical device sales — 585 Contract manufacturing revenue 251 241 Commercial product sales 20,081 9,137 License fees — 25,091 Consulting revenue 105 — Grant revenue 39 140 Total consolidated revenue $ 25,307 $ 37,836 Intersegment revenue is recorded by the selling segment when it is realized or realizable and all revenue recognition criteria are met. Upon consolidation, all intersegment revenue and related cost of sales are eliminated from the selling segment’s ledger. Three Months Ended March 31, 2019 2018 Net (loss) income attributable to Athenex, Inc.: Oncology Innovation Platform $ (27,603 ) $ 1,509 Global Supply Chain Platform (767 ) (6,569 ) Commercial Platform (6,863 ) (2,238 ) Total consolidated net loss attributable to Athenex, Inc. $ (35,233 ) $ (7,298 ) Three Months Ended March 31, 2019 2018 Total depreciation and amortization: Oncology Innovation Platform $ 189 $ 156 Global Supply Chain Platform 311 467 Commercial Platform 379 245 Total consolidated depreciation and amortization $ 879 $ 868 March 31, December 31, 2019 2018 Total assets: Oncology Innovation Platform $ 113,808 $ 135,878 Global Supply Chain Platform 65,488 58,816 Commercial Platform 41,011 36,401 Total consolidated assets $ 220,307 $ 231,095 Three Months Ended March 31, 2019 2018 Total revenue: United States $ 20,335 $ 9,901 Spain — 25,000 India 777 962 Austria 2,173 1,243 China 386 648 United Kingdom 1,023 — Other foreign countries 613 82 Total consolidated revenue $ 25,307 $ 37,836 March 31, December 31, 2019 2018 Total property and equipment, net: United States $ 7,283 $ 6,549 China 4,966 4,898 Total consolidated property and equipment, net $ 12,249 $ 11,447 Customer revenue and accounts receivable concentration amounted to the following for the identified periods. These customers relate to the Commercial Platform segment and the Global Supply Chain Platform segment. Three Months Ended March 31, 2019 2018 Percentage of total revenue by customer: Customer A 22 % 10 % Customer B 21 % 4 % Customer C 21 % 7 % Customer D — 66 % March 31, December 31, 2019 2018 Percentage of total accounts receivable by customer: Customer A 32 % 18 % Customer B 19 % 16 % Customer C 10 % — Customer D 7 % 12 % |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 14. Revenue Recognition The Company records revenue in accordance with ASC, Topic 606 “ Revenue from Contracts with Customers .” Under Topic 606, the Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which it expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines are within the scope of Topic 606, the entity performs the following five steps: (i) identifies the contract(s) with a customer; (ii) identifies the performance obligations in the contract; (iii) determines the transaction price; (iv) allocates the transaction price to the performance obligations in the contract; and (v) recognizes revenue when (or as) the entity satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the goods or services it transfers to the customer. Following is a description of principal activities – separated by reportable segments – from which the Company generates its revenue (See Note 13 – Business Segment, Geographic, and Concentration Risk Information ). 1. Oncology Innovation Platform License fees and consulting revenue The Company out-licenses certain of its intellectual property (“IP”) and provides related consulting services to pharmaceutical companies in specific territories that allow the customer to use, develop, commercialize, or otherwise exploit the licensed IP. In accordance with Topic 606, the Company analyzes each of its out-licensing contracts with customers to identify each of the performance obligations within the contract. Each out-license contains multiple performance obligations. The Company has determined that each of its out-license agreements with customers are classified as functional licenses and are capable of being distinct, because the IP that is licensed carries standalone value and is not expected to be altered through the life of the agreement. Therefore, for each of its out-licensing agreements, the Company has determined that the execution of the license and delivery of the IP to the licensee is a distinct performance obligation. As such, the Company records revenue at a point-in-time for its out-licensing if any of the transaction price is allocated to the obligation, including up-front licensing fee payments. The Company’s classification of each out-license as such requires significant judgment to be used by management. The Company considers the economic and regulatory characteristics of the licensed IP to determine if it has standalone value on the date of the licensing, which would make the licensing distinct and dictate that the Company recognizes any transaction price allocated to the license performance obligation at a point-in-time. Revenue recognized at a point-in-time for the execution of a distinct licensing of IP amounted to $0 and $25.0 million for the three months ended March 31, 2019 and 2018, respectively. Other performance obligations included in the Company’s out-licensing agreements include reaching milestone development and regulatory events by performing research and development activities over the licensed IP. The Company did not reach any milestone events during the three months ended March 31, 2019 or 2018. In addition to the multiple performance obligations, the Company’s out-licensing agreements include variable pricing. After the performance obligations are identified, the Company determines each portion of the transaction price, which generally includes upfront fees, milestone payments, and royalty payments. The Company begins by allocating the payments set forth in the agreement to the performance obligation to which the consideration is related. Then, the Company considers whether or not that transaction price is fixed, variable, or subject to return. If any portion of the transaction price is constrained by more than one performance obligation, the Company allocated that portion of the transaction price to the performance obligation that will be satisfied later and will not recognize revenue until it is fully satisfied and the constraint on the transaction price no longer exists. There are no other significant methods employed to allocate the transaction price to performance obligations in a contract. The Company exercises significant judgment when allocating the variable transaction prices to the proper performance obligations, considering if any of those payments are refundable or are contingent on any future events. Grant revenue The Company receives grant award funding to support its continuing research and development efforts. The Company considers these grants to be operating revenue as they support the Company’s primary operating activities. Revenue is recognized when the underlying performance obligation is satisfied, which is generally when all grant eligibility criteria are met at a point-in-time. Grant revenue is not significant to the condensed consolidated financial statements. 2. Global Supply Chain Platform The Company’s Global Supply Chain Platform manufactures API for use internally in its research and development and clinical studies and for sale to pharmaceutical customers globally. The Company also generates revenue on this platform, by providing small to mid-scale cGMP manufacturing of clinical and commercial products for pharmaceutical and biotech companies and selling pharmaceutical products under 503B regulations set forth by the FDA. Revenue earned by the Global Supply Platform is recognized when the Company has satisfied its performance obligation, which is the shipment or the delivery of drug products. The underlying contracts for these sales are generally purchase orders and the Company recognizes revenue at a point-in-time. Any remaining performance obligations related to product sales are the result of customer deposits and are reflected in the deferred revenue contract liability balance. 3. Commercial Platform The Company’s Commercial Platform generates revenue by distributing specialty products through independent pharmaceutical wholesalers. The wholesalers then sell to an end-user, normally a hospital, alternative healthcare facility, or an independent pharmacy, at a lower price previously established by the end-user and the Company. Sales are initially recorded at the list price sold to the wholesaler. Because these prices will be reduced for the end-user, the Company records a contra asset in accounts receivable and a reduction to revenue at the time of the sale, using the difference between the list price and the estimated end-user contract price. Upon the sale by the wholesaler to the end-user, the wholesaler will chargeback the difference between the original list price and price at which the product was sold to the end-user and such chargeback is offset against the initial estimated contra asset. The significant estimates inherent in the initial chargeback provision relate to wholesale units pending chargeback and to the ultimate end-user contract selling price. The Company bases the estimate for these factors on product-specific sales and internal chargeback processing experience, as well as estimated wholesaler inventory stocking levels. As of March 31, 2019 and December 31, 2018, the Company’s total provision for chargebacks and other deductions totaled $9.0 million and $11.8 million, respectively, included as a reduction of accounts receivable. The Company offers cash discounts, which approximate 2.0% of the gross sales price, as an incentive for prompt customer payment, and, consistent with industry practice, the Company’s return policy permits customers to return products within a window of time before and after the expiration of product dating. The Company expects that its wholesale customers will make prompt payments to take advantage of the cash discounts, and expects customers to use their right of return. Therefore, at the time of sale, product revenue and accounts receivable are reduced by the full amount of the discount offered and the return expected. The Company considers payment performance and historical return rates and adjusts the accrual to reflect actual experience. As of March 31, 2019 and December 31, 2018, the Company’s accrual for cash discounts and return accrual included as a reduction of accounts receivable were not material to the condensed consolidated financial statements. The Company also offers contractual allowances, generally rebates or administrative fees, to certain wholesale customers, group purchasing organizations (“GPOs”), and end-user customers, consistent with pharmaceutical industry practices. Settlement of rebates and fees may generally occur from one to five months from date of sale. The Company provides a provision for contractual allowances at the time of sale based on the historical relationship between sales and such allowances. Contractual allowances are reflected in the condensed consolidated financial statements as a reduction of revenue and accounts receivable or as accrued expenses. The Company exercises significant judgment in its estimates of the variable transaction price at the time of the sale and recognizes revenue when the performance obligation is satisfied. Factors that determine the final net transaction price include chargebacks, fees for service, cash discounts, rebates, returns, warranties, and other factors. The Company estimates all of these variables based on historical data obtained from previous sales finalized with the end-user customer on a product-by-product basis. At the time of sale, revenue is recorded net of each of these deductions. Through the normal course of business, the wholesaler will sell the product to the end-user, determining the actual chargeback, return products, and take advantage of cash discounts, charge fees for services, and claim warranties on products. The final transaction price per product is compared to the initial estimated net sale price and reviewed for accuracy. The final prices and other factors are immediately included in the Company’s historical data from which it will estimate the transaction price for future sales. The underlying contracts for these sales are generally purchase orders including a single performance obligation, generally the shipment or delivery of products and the Company recognizes this revenue at a point-in-time. Disaggregation of revenue The following represents the Company’s revenue for its reportable segment by country, based on the locations of the customer. For the Three Months Ended March 31, 2019 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total United States $ — $ 5,660 $ 14,675 $ 20,335 India — 777 — 777 Austria — 2,173 — 2,173 China 144 242 — 386 United Kingdom — 1,023 — 1,023 Other foreign countries — 613 — 613 Total revenue $ 144 $ 10,488 $ 14,675 $ 25,307 For the Three Months Ended March 31, 2018 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total United States $ — $ 1,208 $ 8,694 $ 9,901 India — 962 — 962 Austria — 1,243 — 1,243 China 231 417 — 648 Spain 25,000 — — 25,000 Other foreign countries — 82 — 82 Total revenue $ 25,231 $ 3,911 $ 8,694 $ 37,836 The Company also disaggregates its revenue by product group which can be found in Note 13 – Business Segment, Geographic, and Concentration Risk Information Contract balances The following table provides information about receivables and contract liabilities from contracts with customers. The Company has not recorded any contract assets from contracts with customers. March 31, 2019 December 31, 2018 (In Thousands) Accounts receivable, gross $ 31,032 $ 26,061 Chargebacks and other deductions (10,448 ) (13,101 ) Allowance for doubtful accounts (8 ) (9 ) Accounts receivable, net $ 20,576 $ 12,951 Deferred revenue 131 190 Total contract liabilities $ 131 $ 190 The following tables illustrate accounts receivable balances by reportable segments. March 31, 2019 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total Accounts receivable, gross $ — $ 7,876 $ 23,156 $ 31,032 Allowance for doubtful accounts, chargebacks, and other deductions — (13 ) (10,443 ) (10,456 ) Accounts receivable, net $ — $ 7,863 $ 12,713 $ 20,576 December 31, 2018 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total Accounts receivable, gross $ — $ 7,814 $ 18,247 $ 26,061 Allowance for doubtful accounts, chargebacks, and other deductions — (9 ) (13,101 ) (13,110 ) Accounts receivable, net $ — $ 7,805 $ 5,146 $ 12,951 As of March 31, 2019, $0.1 million of the deferred revenue balance relates to customer deposits made by customers of the Global Supply Chain Platform and is included within accrued expenses on the condensed consolidated balance sheet. As of December 31, 2018, the $0.2 million contract liability related to customer deposits made by customers of the Global Supply Chain Platform. The Company satisfied its performance obligations allocated to these contract liabilities during the three months ended March 31, 2019. There were no other material changes to contract balances during the three months ended March 31, 2019. Practical expedients used During the adoption of ASC 606, the Company applied the practical expedient in paragraph 606-10-10-4, the Portfolio Approach The Company applies the practical expedient in paragraph 606-10-50-14 and does not disclose information about remaining performance obligations related to the license of intellectual property (“IP”). This practical expedient is applied because the out-licensing agreements include sales-based royalties in exchange for the license of IP accounted for in accordance with Topic 606 and there is significant uncertainty surrounding the future variable consideration that could be received. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Future minimum payments under the non-cancelable operating lease consists of the following as of December 31, 2018 (in thousands): Year ending December 31: Minimum payments 2019 $ 2,943 2020 2,466 2021 2,040 2022 1,902 2023 1,675 Thereafter 3,099 $ 14,125 Legal Proceedings From time to time, the Company may be subject to claims and litigation arising in the ordinary course of business. These claims could include assertions that the Company’s products infringe existing patents or claims that the use of its products has caused personal injuries. The Company intends to vigorously defend any such litigation that may arise under all defenses that would be available. Regardless of the outcome, litigation can have an adverse impact on us because of prosecution, defense and settlement costs, unfavorable awards, diversion of management resources and other factors. Vasopressin (Generic version of Vasostrict®) On August 13, 2018, Athenex Pharma Solutions and Athenex Pharmaceutical Division, LLC, our wholly-owned subsidiaries, filed a complaint for declaratory judgment against Par Pharmaceuticals, Inc., Par Sterile Products, LLC and Endo Par Innovation Company, LLC (together, Par) in the United States District Court for the Western District of New York (the Court), seeking a declaratory judgment from the Court that our compounded vasopressin drug products in ready-to-use form do not infringe on patents that Par has with respect to its Vasostrict® product and that Par’s patents are invalid. On October 22, 2018, Par filed a motion to dismiss the complaint on the basis that the Court does not have subject matter jurisdiction. Athenex has opposed Par’s motion and that motion is fully briefed and currently pending. Par has not filed a claim for infringement of its patents in this suit but if Par’s motion to dismiss Athenex’s patent suit is denied and the declaratory action proceeds, Par could proceed to lodge a counterclaim for patent infringement. If such an infringement claim were brought and the Court ruled for Par, Athenex could be enjoined from further production of compounded vasopressin within in the United States and sale of compounded vasopressin in or from the United States and for payment of damages to Par for U.S. manufacture or sale of compounded vasopressin that has already taken place, which could have a material adverse effect on our business. In addition, on August 13, 2018, Athenex Pharma Solutions, LLC and Athenex Pharmaceutical Division, LLC filed a motion to intervene and seek the dismissal of Par’s complaint against the FDA and certain governmental officials in the United States District Court for the District of Columbia. Par has sought declaratory and injunctive relief against the FDA and certain governmental officials that: (i) vasopressin be delisted from Category 1 of the FDA’s list of bulk drug substances under evaluation pursuant to Section 503B of the Federal Food, Drug and Cosmetic Act (FDCA), (ii) the expansion of the FDA’s enforcement discretion to Category 1 substances, be enjoined; and (iii) that the FDA be enjoined from authorizing the compounding of vasopressin under Section 503B of the FDCA. Our motion to intervene was granted. Par filed a preliminary injunction motion and we and the FDA filed motions for judgment on the pleadings. This action is currently stayed. On March 4, 2019, the FDA published in the Federal Register its final decision not to include vasopressin on the list of bulk drug substances for which there is a clinical need. Also, on March 4, 2019, Athenex, Inc., APS, and APD filed a complaint against the FDA seeking to vacate its decision. In this case, the FDA has represented to the Court that “until the Court issues a decision on the merits of this action, the FDA will not initiate enforcement action against Athenex based solely on Athenex’s use of the bulk drug substance vasopressin to compound drugs and distribute those drugs” and the Court has incorporated the FDA’s representation into its published order. Because of the Court’s order, Athenex will continue to produce and distribute compounded vasopressin during the period that the case is pending and will reevaluate its position after the Court issues its decision on the merits of Athenex’s lawsuit. The Court is expected to issue its opinion during the second or third quarter of 2019. On August 14, 2018, the Company began selling compounded vasopressin injection in ready-to-use premix IV bags. If the Company is unsuccessful in obtaining the relief it seeks in its lawsuit against the FDA, or there is an adverse final determination that Par’s patent is valid and infringed, the Company would have to abandon this revenue-generating line of business; such events could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. Subsequent Events On May 3, 2019, the Company entered into a share purchase agreement (the “Share Purchase Agreement”) with Perceptive Life Sciences Master Fund, Ltd., venBio Select Fund LLC, OrbiMed Partners Master Fund Limited, and The Biotech Growth Trust PLC (collectively, the “Investors”), pursuant to which the Company agreed to sell an aggregate of 10 million shares of its common stock to the Investors at a purchase price of $10.00 per share for aggregate gross proceeds of $100 million (the “Private Placement”). The Private Placement closed on May 7, 2019. Pursuant to the Share Purchase Agreement, the Company agreed to enter into a registration rights agreement (the “Registration Rights Agreement”) with the Investors at the closing of the Private Placement. Under the Registration Rights Agreement, the Company agreed to register for resale the shares of common stock the Investors purchased in the offering under the Securities Act of 1933, as amended (the “Securities Act”). Pursuant to the Registration Rights Agreement, the Company will prepare and file a registration statement with the Securities and Exchange Commission within 90 days of the closing date of the Private Placement and agreed to use its best efforts to have the registration statement declared effective as soon as practicable. For each month the Company is unable to meet its obligations to have the registration statement declared effective, it will be obligated to pay each Investor an amount in cash equal to one percent of the aggregate purchase price paid by that Investor pursuant to the Share Purchase Agreement, provided that in no event will the total payment to that Investor exceed 25% of its aggregate purchase price. In addition, subject to certain limitations, following the signing of the Registration Rights Agreement, the Investors will have piggyback registration rights if no registration statement registering the shares sold in the Private Placement is effective and the Company is otherwise filing a registration statement under the Securities Act for the sale of its securities for its own account or for the account of any of its stockholders. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information (Accounting Standards Codification (“ASC”) 270, Interim Reporting ) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information necessary for a full presentation of financial position, results of operations, and cash flows in conformity with GAAP. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments ) considered necessary for a fair presentation of the results of the Company for the periods presented. These condensed consolidated financial statements reflect the accounts and operations of the Company and those of its subsidiaries in which the Company has a controlling financial interest. Intercompany transactions and balances have been fully eliminated in consolidation. Results of the operations for the three months ended March 31, 2019 are not necessarily indicative of the results expected for the full fiscal year or for any future annual or interim period. These financial statements should be read in conjunction with the Company’s audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (“SEC”) on March 11, 2019. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the condensed consolidated financial statements and the reported amount of revenue and expenses during the reporting period. Such management estimates include those relating to assumptions used in clinical research accruals, chargebacks, allowance for doubtful accounts, inventory reserves, income taxes, the estimated useful life and recoverability of long-lived assets, and the valuation of stock-based awards. Actual results could differ from those estimates. |
Leases | Leases The Company determines if an arrangement contains a lease at inception. For arrangements where the Company is the lessee, the Company will evaluate whether to account for the lease as either an operating or financing lease. Operating leases are included in right-of-use assets (“ROU assets”) and operating lease liabilities on the condensed consolidated balance sheet as of March 31, 2019. The Company’s finance leases are included in property and equipment, net and long-term debt and finance lease obligations on the condensed consolidated balance sheet. A majority of the Company’s operating leases are for real estate properties used in operations located in the U.S. and Asia. The Company’s finance leases are for manufacturing equipment in the U.S. ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. ROU assets also include any initial direct costs incurred and any lease payments made at or before the lease commencement date, less lease incentives received. The Company uses its incremental borrowing rate based on the information available at the commencement date in determining the operating lease liabilities as the Company’s leases generally do not provide an implicit rate. The Company uses the stated rate per each lease agreement in determining the finance lease liabilities. Lease terms may include options to extend or terminate when the Company is reasonably certain that the option will be exercised. Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company elected to apply the short-term lease measurement and recognition exemption in which ROU assets and lease liabilities are not recognized for short-term leases. |
Concentration of Credit Risk, Other Risks and Uncertainties | Concentration of Credit Risk, Other Risks and Uncertainties Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and short-term investments. The Company deposits its cash equivalents in interest-bearing money market accounts and invests in highly liquid U.S. treasury notes, commercial paper and corporate bonds. The Company deposits its cash with multiple financial institutions. Cash balances exceed federally insured limits. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer and establishing a minimum allowable credit rating. The Company also has significant assets and liabilities held in its overseas manufacturing facility in China, and therefore is subject to foreign currency fluctuation. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, " Leases (Topic 842), The Company adopted the new lease standard on January 1, 2019 and used the effective date as our date of initial application. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the Company (1) to not reassess whether any expired or existing contracts are or contain leases, (2) to not reassess the lease classification for any expired or existing leases, and (3) to not reassess initial direct costs for any existing leases. The Company also elected the single component practical expedient, which requires the Company, by class of underlying asset, not to allocate the total consideration to the lease and nonlease components based on their relative stand-alone selling prices. This single component practical expedient requires the Company to account for the lease component and nonlease component(s) associated with that lease as a single component if (i) the timing and pattern of transfer of the lease component and the nonlease component(s) associated with it are the same and (ii) the lease component would be classified as an operating lease if it were accounted for separately. In preparation for adoption of the standard, the Company implemented internal controls to enable the preparation of financial information. The standard had a material impact on our consolidated balance sheet, with no material impact on our consolidated statement of operations and comprehensive loss. On the adoption date, the Company recognized $9.8 million of operating lease ROU assets, $11.9 million of operating lease liabilities, and derecognized its existing deferred rent balance of $2.1 million. In June 2018, the FASB issued ASU No. 2018-07, “ Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting Compensation – Stock Compensation |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in thousands): March 31, 2019 December 31, 2018 Raw materials and purchased parts $ 3,962 $ 4,092 Work in progress 3,174 3,166 Finished goods 18,055 21,529 Total inventories $ 25,191 $ 28,787 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Identifiable Intangible Asset, Net | The Company’s identifiable intangible assets, net, consist of the following (in thousands): March 31, 2019 Cost/Fair Value Accumulated Amortization Impairments Net Amortizable intangible assets: Licenses $ 8,935 $ 2,432 $ — $ 6,503 Polymed customer list 1,593 974 — 619 Polymed technology 3,712 1,125 — 2,587 Product rights 530 295 — 235 Indefinite-lived intangible assets: CDE in-process research and development (IPR&D) 728 — — 728 Effect of currency translation adjustment (311 ) — — (311 ) Total intangible assets, net $ 15,187 $ 4,826 $ — $ 10,361 December 31, 2018 Cost/Fair Value Accumulated Amortization Impairments Net Amortizable intangible assets Licenses $ 8,935 $ 2,060 $ — $ 6,875 Polymed customer list 1,593 938 — 655 Polymed technology 3,712 999 — 2,713 Product rights 530 263 — 267 Indefinite-lived intangible assets: CDE in-process research and development (IPR&D) 1,026 — 298 728 Effect of currency translation adjustment (390 ) — — (390 ) Total intangibles, net $ 15,406 $ 4,260 $ 298 $ 10,848 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables represent the fair value hierarchy for those assets and liabilities that the Company measures at fair value on a recurring basis (in thousands): Fair Value Measurements at March 31, 2019 Using: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Available-for-sale investment $ 341 $ 341 $ — $ — Total assets $ 341 $ 341 $ — $ — Fair Value Measurements at December 31, 2018 Using: Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Financial assets included within cash and cash equivalents Money market funds $ 25 $ 25 $ — $ — Short-term investments - commercial paper 5,396 — 5,396 — Financial assets included within short-term investments Short-term investments - commercial paper 36,544 — 36,544 — Short-term investments - corporate notes 16,699 — 16,699 — Short-term investments - U.S. government bonds 3,998 — 3,998 — Available-for-sale investment 388 388 — — Total assets $ 63,050 $ 413 $ 62,637 $ — |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): March 31, December 31, 2019 2018 Accrued wages and benefits $ 6,508 $ 5,061 Accrued clinical expenses 1,888 2,653 Accrued operating expenses 3,646 8,128 Deferred revenue 131 190 Accrued R&D licensing fees 654 4,827 Accrued tax withholdings 192 — Accrued selling fees and rebates 1,910 423 Accrued construction costs 27,642 16,436 Total accrued expenses $ 42,571 $ 37,718 |
Debt and Lease Obligations (Tab
Debt and Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt And Lease Obligations [Abstract] | |
Schedule of Debt | The Company’s debt as of March 31, 2019 and December 31, 2018, consists of the following (in thousands): March 31, December 31, 2019 2018 Current portion of mortgage $ 792 $ 779 Current portion of bank loan 743 — Current portion of finance and capital lease obligation 185 182 Long-term portion of finance and capital lease obligation 374 422 Senior secured loan, net of debt discount and financing fees of $4,362 and $4,619, respectively 45,638 45,381 Total $ 47,732 $ 46,764 |
Summary of Components of Lease Expense | The components of lease expense are as follows (in thousands): Three Months Ended March 31, 2019 Operating lease cost $ 781 Finance lease cost: Amortization of assets 12 Interest on lease liabilities 9 Total net lease cost $ 802 |
Schedule of Supplemental Balance Sheet Information Related to Leases of Debt | Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate): March 31, 2019 Operating leases: Operating lease ROU assets, net $ 9,428 Current operating lease liabilities $ 3,067 Long-term operating lease liabilities 8,362 Total operating lease liabilities $ 11,429 Finance leases: Property and equipment, at cost $ 688 Accumulated amortization, net (40 ) Property and equipment, net $ 648 Current obligations of finance leases $ 185 Long-term portion of finance leases 374 Total finance lease obligations $ 559 Weighted average remaining lease term (in years): Operating leases 5.83 Finance leases 2.86 Weighted average discount rate: Operating leases 13.0 % Finance leases 5.9 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended March 31, 2019 Cash paid for amount included in the measurements of lease liabilities: Operating cash flows from operating leases $ 803 Operating cash flows from finance leases 9 Financing cash flows from finance leases 45 ROU assets recognized in exchange for new operating lease obligations $ 583 |
Schedule of Future Minimum Payments and Maturities of Leases | Future minimum payments and maturities of leases is as follows (in thousands): Year ending December 31: Operating Leases Finance Leases 2019 (remaining nine months) $ 2,551 $ 161 2020 2,968 214 2021 2,535 214 2022 2,356 20 2023 2,096 — Thereafter 3,952 — Total lease payments 16,458 609 Less: Imputed interest (5,029 ) (50 ) Total lease obligations 11,429 559 Less: Current obligations (3,067 ) (185 ) Long-term lease obligations $ 8,362 $ 374 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes the status of the Company’s stock option activity granted under the Plans to employees, directors, and consultants (in thousands, except stock option amounts and exercise price): Stock Options Weighted- Average Exercise price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2018 10,687,650 $ 8.51 6.87 $ 44,688 Granted 760,000 13.17 — — Exercised (49,632 ) 5.60 — — Forfeited and expired (122,985 ) 13.86 — — Outstanding at March 31, 2019 11,275,033 $ 8.78 6.36 $ 39,154 Vested and exercisable at March 31, 2019 8,153,661 $ 6.88 5.45 $ 43,787 |
Schedule of Weighted Average Assumptions Used as Inputs to Black-Scholes Model | The Company determines the fair value of stock-based awards on the grant date using the Black-Scholes option pricing model, which is impacted by assumptions regarding a number of highly subjective variables. The following table summarizes the weighted-average assumptions used as inputs to the Black-Scholes model during the periods indicated: Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 Weighted average grant date fair value $ 8.03 $ 9.43 Expected dividend yield — % — % Expected stock price volatility 64 % 59 % Risk-free interest rate 2.63 % 2.57 % Expected life of options (in years) 6.3 5.6 |
Schedule of Stock-Based Compensation Cost | The components of stock-based compensation and the amounts recorded within research and development expenses and selling, general, and administrative expenses in the Company’s consolidated statements of operations and comprehensive loss consisted of the following for the three months ended March 31, 2019 and 2018 (in thousands): Three Months Ended March 31, 2019 2018 Stock options $ 1,693 $ 2,161 Restricted stock expense — 540 Employee stock purchase plan 85 — Total stock-based compensation expense $ 1,778 $ 2,701 Cost of sales $ 64 $ 44 Research and development expenses 591 513 Selling, general, and administrative expenses 1,123 2,144 Total stock-based compensation expense $ 1,778 $ 2,701 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Athenex, Inc. Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule Outstanding Shares of Common Stock Equivalents Excluded from the Calculation of Diluted Net Loss Per Share | The following outstanding shares of common stock equivalents were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been antidilutive: Three Months Ended March 31, 2019 2018 Stock options and other common stock equivalents 11,219,839 9,931,020 Unvested restricted shares — 240,000 Total potential dilutive shares 11,219,839 10,171,020 |
Business Segment, Geographic,_2
Business Segment, Geographic, and Concentration Risk Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Segments | Segment information is as follows (in thousands): Three Months Ended March 31, 2019 2018 Total revenue: Oncology Innovation Platform $ 144 $ 25,231 Global Supply Chain Platform 11,339 5,127 Commercial Platform 14,675 8,694 Total revenue for reportable segments 26,158 39,052 Intersegment revenue (851 ) (1,216 ) Total consolidated revenue $ 25,307 $ 37,836 |
Summary of Revenue by Product Group | Three Months Ended March 31, 2019 2018 Total revenue by product group: API sales $ 4,831 $ 2,642 Medical device sales — 585 Contract manufacturing revenue 251 241 Commercial product sales 20,081 9,137 License fees — 25,091 Consulting revenue 105 — Grant revenue 39 140 Total consolidated revenue $ 25,307 $ 37,836 |
Summary of Segment Information | Three Months Ended March 31, 2019 2018 Net (loss) income attributable to Athenex, Inc.: Oncology Innovation Platform $ (27,603 ) $ 1,509 Global Supply Chain Platform (767 ) (6,569 ) Commercial Platform (6,863 ) (2,238 ) Total consolidated net loss attributable to Athenex, Inc. $ (35,233 ) $ (7,298 ) |
Summary of Depreciation, Amortization and Assets by Segment | Three Months Ended March 31, 2019 2018 Total depreciation and amortization: Oncology Innovation Platform $ 189 $ 156 Global Supply Chain Platform 311 467 Commercial Platform 379 245 Total consolidated depreciation and amortization $ 879 $ 868 March 31, December 31, 2019 2018 Total assets: Oncology Innovation Platform $ 113,808 $ 135,878 Global Supply Chain Platform 65,488 58,816 Commercial Platform 41,011 36,401 Total consolidated assets $ 220,307 $ 231,095 |
Summary of Revenue by Geographical Segment | Three Months Ended March 31, 2019 2018 Total revenue: United States $ 20,335 $ 9,901 Spain — 25,000 India 777 962 Austria 2,173 1,243 China 386 648 United Kingdom 1,023 — Other foreign countries 613 82 Total consolidated revenue $ 25,307 $ 37,836 |
Summary of Property and Equipment by Geographical Segment | March 31, December 31, 2019 2018 Total property and equipment, net: United States $ 7,283 $ 6,549 China 4,966 4,898 Total consolidated property and equipment, net $ 12,249 $ 11,447 |
Summary of Customer Revenue and Accounts Receivable Concentration | Customer revenue and accounts receivable concentration amounted to the following for the identified periods. These customers relate to the Commercial Platform segment and the Global Supply Chain Platform segment. Three Months Ended March 31, 2019 2018 Percentage of total revenue by customer: Customer A 22 % 10 % Customer B 21 % 4 % Customer C 21 % 7 % Customer D — 66 % March 31, December 31, 2019 2018 Percentage of total accounts receivable by customer: Customer A 32 % 18 % Customer B 19 % 16 % Customer C 10 % — Customer D 7 % 12 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Company's Revenue for Reportable Segment by Country Based on Locations of Customer | Disaggregation of revenue The following represents the Company’s revenue for its reportable segment by country, based on the locations of the customer. For the Three Months Ended March 31, 2019 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total United States $ — $ 5,660 $ 14,675 $ 20,335 India — 777 — 777 Austria — 2,173 — 2,173 China 144 242 — 386 United Kingdom — 1,023 — 1,023 Other foreign countries — 613 — 613 Total revenue $ 144 $ 10,488 $ 14,675 $ 25,307 For the Three Months Ended March 31, 2018 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total United States $ — $ 1,208 $ 8,694 $ 9,901 India — 962 — 962 Austria — 1,243 — 1,243 China 231 417 — 648 Spain 25,000 — — 25,000 Other foreign countries — 82 — 82 Total revenue $ 25,231 $ 3,911 $ 8,694 $ 37,836 |
Summary of Receivables and Contract Liabilities From Contracts with Customers | The following table provides information about receivables and contract liabilities from contracts with customers. The Company has not recorded any contract assets from contracts with customers. March 31, 2019 December 31, 2018 (In Thousands) Accounts receivable, gross $ 31,032 $ 26,061 Chargebacks and other deductions (10,448 ) (13,101 ) Allowance for doubtful accounts (8 ) (9 ) Accounts receivable, net $ 20,576 $ 12,951 Deferred revenue 131 190 Total contract liabilities $ 131 $ 190 |
Summary of Accounts Receivable Balances by Reportable Segments | The following tables illustrate accounts receivable balances by reportable segments. March 31, 2019 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total Accounts receivable, gross $ — $ 7,876 $ 23,156 $ 31,032 Allowance for doubtful accounts, chargebacks, and other deductions — (13 ) (10,443 ) (10,456 ) Accounts receivable, net $ — $ 7,863 $ 12,713 $ 20,576 December 31, 2018 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total Accounts receivable, gross $ — $ 7,814 $ 18,247 $ 26,061 Allowance for doubtful accounts, chargebacks, and other deductions — (9 ) (13,101 ) (13,110 ) Accounts receivable, net $ — $ 7,805 $ 5,146 $ 12,951 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-Cancelable Leases | Future minimum payments under the non-cancelable operating lease consists of the following as of December 31, 2018 (in thousands): Year ending December 31: Minimum payments 2019 $ 2,943 2020 2,466 2021 2,040 2022 1,902 2023 1,675 Thereafter 3,099 $ 14,125 |
Company and Nature of Business
Company and Nature of Business - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 03, 2018 | Feb. 28, 2018 | Jan. 31, 2018 | Mar. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 |
Subsidiary Or Equity Method Investee [Line Items] | ||||||
Sale of common stock | $ 68,055 | |||||
Accumulated deficit | $ 478,949 | $ 443,716 | ||||
Private Financing Transactions | ||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||
Warrants to purchase common stock outstanding | 425,000 | |||||
Warrants to purchase common stock, share price | $ 18.66 | |||||
Perceptive | Private Financing Transactions | ||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||
Number of shares issued and sold | 2,679,528 | |||||
Common stock share price | $ 18.66 | |||||
Gross proceeds from debt and equity financing | $ 100,000 | |||||
Aggregate net proceeds of debt and equity financing, net of fees and offering expenses | 97,100 | |||||
Sale of common stock | $ 50,000 | |||||
Senior Secured Loan | Perceptive | Private Financing Transactions | ||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||
Debt instrument maturity term | 5 years | |||||
Convertible bonds, aggregate principal value | $ 50,000 | |||||
LIBOR | Senior Secured Loan | Perceptive | Private Financing Transactions | ||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||
Debt variable rate basis floor | 2.00% | |||||
Basis spread on variable rate | 9.00% | |||||
Underwriters | ||||||
Subsidiary Or Equity Method Investee [Line Items] | ||||||
Number of shares issued and sold | 4,300,000 | |||||
Common stock share price | $ 15.25 | $ 15.25 | ||||
Number of days granted to underwriters option to purchase additional shares | 30 days | |||||
Number of additional common stock shares purchase | 465,000 | 645,000 | ||||
Net proceeds from stock issuance | $ 68,100 | |||||
Underwriting discounts and commissions and offering expenses | $ 4,600 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Accounting Policies [Abstract] | ||
Operating lease ROU assets | $ 9,428 | $ 9,800 |
Operating lease liabilities | $ 11,429 | 11,900 |
Deferred rent balance derecognized | $ 2,100 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 3,962 | $ 4,092 |
Work in progress | 3,174 | 3,166 |
Finished goods | 18,055 | 21,529 |
Total inventories | $ 25,191 | $ 28,787 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Identifiable Intangible Asset, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, Accumulated Amortization | $ 4,826 | $ 4,260 |
Intangible asset, Effect of currency translation adjustment | (311) | (390) |
Intangible assets Cost/Fair Value | 15,187 | 15,406 |
Intangible assets Impairments | 298 | |
Intangible assets, net | 10,361 | 10,848 |
CDE In- Process Research and Development | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible asset, Cost/Fair Value | 728 | 1,026 |
Indefinite-lived intangible asset, Impairments | 298 | |
Indefinite-lived intangible asset, Net | 728 | 728 |
Licensing Agreements | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, Cost/Fair Value | 8,935 | 8,935 |
Finite-lived intangible asset, Accumulated Amortization | 2,432 | 2,060 |
Finite-lived intangible asset, Net | 6,503 | 6,875 |
Polymed Customer List | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, Cost/Fair Value | 1,593 | 1,593 |
Finite-lived intangible asset, Accumulated Amortization | 974 | 938 |
Finite-lived intangible asset, Net | 619 | 655 |
Polymed Technology | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, Cost/Fair Value | 3,712 | 3,712 |
Finite-lived intangible asset, Accumulated Amortization | 1,125 | 999 |
Finite-lived intangible asset, Net | 2,587 | 2,713 |
Product Rights | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, Cost/Fair Value | 530 | 530 |
Finite-lived intangible asset, Accumulated Amortization | 295 | 263 |
Finite-lived intangible asset, Net | $ 235 | $ 267 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets Impairments | $ 298 | ||
Weighted-average useful life of intangible assets | 7 years 6 months 29 days | ||
Amortization expense of intangible assets | $ 500 | $ 400 | |
Research and Development Expenses | |||
Finite Lived Intangible Assets [Line Items] | |||
Intangible assets Impairments | 0 | ||
Licensing Agreements | Hanmi Pharmaceuticals Co. Ltd. | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 400 | ||
Acquired finite-lived intangible assets, amortization period | 12 years 9 months | ||
Licensing Agreements | Gland Pharma Limited | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 4,300 | ||
Acquired finite-lived intangible assets, amortization period | 5 years | ||
Licensing Agreements | MAIA Pharmaceuticals, Inc | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets acquired | $ 4,000 | ||
Acquired finite-lived intangible assets, amortization period | 7 years | ||
Customer List | APS | |||
Finite Lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, amortization period | 7 years | ||
Customer List | Polymed | |||
Finite Lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, amortization period | 6 years | ||
Polymed Technology | Polymed | |||
Finite Lived Intangible Assets [Line Items] | |||
Acquired finite-lived intangible assets, amortization period | 12 years |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets, Level 1 to Level 2 transfers | $ 0 | $ 0 |
Fair value assets, Level 2 to Level 1 transfers | 0 | 0 |
Fair value liabilities, Level 1 to Level 2 transfers | 0 | 0 |
Fair value liabilities, Level 2 to Level 1 transfers | 0 | 0 |
Fair value assets, transfers into Level 3 | 0 | 0 |
Fair value assets, transfers out of Level 3 | 0 | 0 |
Fair value liabilities, transfers into Level 3 | 0 | 0 |
Fair value liabilities, transfers out of Level 3 | $ 0 | $ 0 |
Pharma Essentia | OTC | Taiwan | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Number of shares owned by company | 68,000 | 68,000 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Total assets | $ 341 | $ 63,050 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Total assets | 341 | 413 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total assets | 62,637 | |
Money Market Funds | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 25 | |
Money Market Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 25 | |
Short-term Investments - Commercial Paper | Short-term Investments | ||
Assets: | ||
Total assets | 36,544 | |
Short-term Investments - Commercial Paper | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 5,396 | |
Short-term Investments - Commercial Paper | Significant Other Observable Inputs (Level 2) | Short-term Investments | ||
Assets: | ||
Total assets | 36,544 | |
Short-term Investments - Commercial Paper | Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 5,396 | |
Short-term Investments - Corporate Notes | Short-term Investments | ||
Assets: | ||
Total assets | 16,699 | |
Short-term Investments - Corporate Notes | Significant Other Observable Inputs (Level 2) | Short-term Investments | ||
Assets: | ||
Total assets | 16,699 | |
Short-term investments - U.S. Government Bonds | Short-term Investments | ||
Assets: | ||
Total assets | 3,998 | |
Short-term investments - U.S. Government Bonds | Significant Other Observable Inputs (Level 2) | Short-term Investments | ||
Assets: | ||
Total assets | 3,998 | |
Available-for-Sale Investment | Short-term Investments | ||
Assets: | ||
Total assets | 341 | 388 |
Available-for-Sale Investment | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | ||
Assets: | ||
Total assets | $ 341 | $ 388 |
Asset Acquisition - Additional
Asset Acquisition - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 29, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Asset Acquisition [Line Items] | ||||
Research and development expenses | $ 24,475 | $ 21,303 | ||
Axis Therapeutics Limited | ||||
Asset Acquisition [Line Items] | ||||
Capital contributions to joint venture | $ 30,000 | $ 30,000 | ||
Percentage of ownership in joint venture | 55.00% | 55.00% | ||
Axis Therapeutics Limited | Research and Development Expenses | ||||
Asset Acquisition [Line Items] | ||||
Research and development expenses | $ 24,500 | |||
Axis Therapeutics Limited | Licensing Agreements | ||||
Asset Acquisition [Line Items] | ||||
Research and development licensing fee satisfied with stock, shares | 267,952 | |||
Research and development licensing fee satisfied with stock | $ 5,000 | |||
Axis Therapeutics Limited | XLifeSc | IPR & D | ||||
Asset Acquisition [Line Items] | ||||
Percentage of ownership in joint venture | 45.00% | |||
Percentage of nonmonetary exchange of shares | 45.00% | |||
Fair value of equity shares issued | $ 24,500 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expensest (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities Current [Abstract] | ||
Accrued wages and benefits | $ 6,508 | $ 5,061 |
Accrued clinical expenses | 1,888 | 2,653 |
Accrued operating expenses | 3,646 | 8,128 |
Deferred revenue | 131 | 190 |
Accrued R&D licensing fees | 654 | 4,827 |
Accrued tax withholdings | 192 | |
Accrued selling fees and rebates | 1,910 | 423 |
Accrued construction costs | 27,642 | 16,436 |
Total accrued expenses | $ 42,571 | $ 37,718 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Detail) $ in Millions | Mar. 31, 2019USD ($) |
Dunkirk, NY | Manufacturing Facility | Prepaid Expenses and Other Current Assets | |
Accrued Liabilities [Line Items] | |
Accrued construction costs to be reimbursed | $ 27.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax [Line Items] | ||
Income tax expense (benefit) | $ 500,000 | $ (307,000) |
Federal | ||
Income Tax [Line Items] | ||
Income tax expense (benefit) | $ 0 |
Debt and Lease Obligations - Su
Debt and Lease Obligations - Summary of Balances of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Current portion of mortgage | $ 792 | $ 779 |
Current portion of bank loan | 743 | |
Current portion of finance and capital lease obligation | 185 | 182 |
Long-term portion of finance and capital lease obligation | 374 | 422 |
Total | 47,732 | 46,764 |
Senior Secured Loan | ||
Debt Instrument [Line Items] | ||
Senior secured loan, net of debt discount and financing fees of $4,362 and $4,619, respectively | $ 45,638 | $ 45,381 |
Debt and Lease Obligations - _2
Debt and Lease Obligations - Summary of Balances of Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Senior Secured Loan | ||
Debt Instrument [Line Items] | ||
Debt discount and financing fees | $ 4,362 | $ 4,619 |
Debt and Lease Obligations - Ad
Debt and Lease Obligations - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Mortgage payment extended date | Jul. 30, 2019 |
Unsecured, Subordinated Bank Loan | China | |
Debt Instrument [Line Items] | |
Convertible bonds, aggregate principal value | $ 700,000 |
Debt maturity date | Dec. 11, 2019 |
Interest rate | 5.70% |
Senior Secured Loan | |
Debt Instrument [Line Items] | |
Convertible bonds, aggregate principal value | $ 50,000 |
Debt maturity date | Jun. 30, 2023 |
Senior Secured Loan | LIBOR | |
Debt Instrument [Line Items] | |
Debt variable rate basis floor | 2.00% |
Basis spread on variable rate | 9.00% |
Debt and Lease Obligations - _3
Debt and Lease Obligations - Summary of Components of Lease Expense (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Debt And Lease Obligations [Abstract] | |
Operating lease cost | $ 781 |
Finance lease cost: | |
Amortization of assets | 12 |
Interest on lease liabilities | 9 |
Total net lease cost | $ 802 |
Debt and Lease Obligations - Sc
Debt and Lease Obligations - Schedule of Supplemental Balance Sheet Information Related to Leases of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Operating leases: | ||
Operating lease ROU assets, net | $ 9,428 | $ 9,800 |
Current operating lease liabilities | 3,067 | |
Long-term operating lease liabilities | 8,362 | |
Total operating lease liabilities | 11,429 | $ 11,900 |
Finance leases: | ||
Property and equipment, at cost | 688 | |
Accumulated amortization, net | (40) | |
Property and equipment, net | $ 648 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | |
Current obligations of finance leases | $ 185 | |
Long-term portion of finance leases | 374 | |
Total finance lease obligations | $ 559 | |
Weighted average remaining lease term (in years): | ||
Operating leases | 5 years 9 months 29 days | |
Finance leases | 2 years 10 months 9 days | |
Weighted average discount rate: | ||
Operating leases | 13.00% | |
Finance leases | 5.90% |
Debt and Lease Obligations - _4
Debt and Lease Obligations - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amount included in the measurements of lease liabilities: | |
Operating cash flows from operating leases | $ 803 |
Operating cash flows from finance leases | 9 |
Financing cash flows from finance leases | 45 |
ROU assets recognized in exchange for new operating lease obligations | $ 583 |
Debt and Lease Obligations - _5
Debt and Lease Obligations - Schedule of Future Minimum Payments and Maturities of Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Operating Leases | ||
2019 (remaining nine months) | $ 2,551 | |
2020 | 2,968 | |
2021 | 2,535 | |
2022 | 2,356 | |
2023 | 2,096 | |
Thereafter | 3,952 | |
Total lease payments | 16,458 | |
Less: Imputed interest | (5,029) | |
Total operating lease liabilities | 11,429 | $ 11,900 |
Less: Current obligations | (3,067) | |
Long-term operating lease liabilities | 8,362 | |
Finance Leases | ||
2019 (remaining nine months) | 161 | |
2020 | 214 | |
2021 | 214 | |
2022 | 20 | |
Total lease payments | 609 | |
Less: Imputed interest | (50) | |
Total finance lease obligations | 559 | |
Less: Current obligations | (185) | |
Long-term portion of finance leases | $ 374 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2018Agreement | Mar. 31, 2019USD ($)Executiveshares | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)shares | |
Avalon BioMedical | ||||
Related Party Transaction [Line Items] | ||||
Common stock shares held by related parties | shares | 786,061 | 786,061 | ||
Percentage of common stock issued shares | 1.00% | 1.00% | ||
Avalon BioMedical | In-licensing Agreement | ||||
Related Party Transaction [Line Items] | ||||
Number of in-licensing agreements | Agreement | 2 | |||
Payment of upfront fees | $ 5,500,000 | |||
Payment of upfront fees in cash | 3,500,000 | |||
Payment of upfront fees in equity | $ 2,000,000 | |||
Pharma Essentia | ||||
Related Party Transaction [Line Items] | ||||
Licenses revenue | $ 300,000 | $ 100,000 | ||
Executive Officer | ||||
Related Party Transaction [Line Items] | ||||
Number of executives | Executive | 1 | |||
ZenRx | ||||
Related Party Transaction [Line Items] | ||||
Licenses revenue | $ 0 | 0 | ||
ZenRx | Clinical Development Services | ||||
Related Party Transaction [Line Items] | ||||
Payments to related party for services received | $ 300,000 | $ 100,000 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 1,778 | $ 2,701 |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 1,693 | 2,161 |
Unrecognized compensation cost related to non-vested stock options expected to be recognized | $ 14,800 | |
Unrecognized compensation expense related to non-vested stock options, weighted-average period of recognition | 1 year 8 months 12 days | |
Total intrinsic value of stock options exercised | $ 400 | 3,400 |
Maximum | Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 1,000,000 | |
2017, 2013, 2007 and 2004 Plans | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock options authorized grant | 16,000,000 | |
2017 Plans | Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Common stock reserved for future issuance | 1,000,000 | |
Stock-based compensation expense | $ 100 | $ 0 |
Percentage of discount on purchase price of common stock | 15.00% | |
Employee stock purchase plan, description | Under the ESPP, shares of the Company’s common stock may be purchased at a discount (15%) of the lesser of the closing price of the Company’s common stock on the first trading or the last trading day of the offering period. The current offering period extends from December 1, 2018 to June 30, 2019. The Company expects to offer 6-month offering periods after the current period. |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Stock Options | ||
Stock Options, Outstanding Beginning Balance | 10,687,650 | |
Stock Options, Granted | 760,000 | |
Stock Options, Exercised | (49,632) | |
Stock Options, Forfeited and expired | (122,985) | |
Stock Options, Outstanding Ending Balance | 11,275,033 | 10,687,650 |
Stock Options, Vested and exercisable | 8,153,661 | |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 8.51 | |
Weighted Average Exercise Price, Granted | 13.17 | |
Weighted Average Exercise Price, Exercised | 5.60 | |
Weighted Average Exercise Price, Forfeited and expired | 13.86 | |
Weighted Average Exercise Price, Outstanding Ending Balance | 8.78 | $ 8.51 |
Weighted Average Exercise Price, Vested and exercisable | $ 6.88 | |
Weighted Average Remaining Contractual Term | ||
Weighted Average Remaining Contractual Term, Outstanding | 6 years 4 months 9 days | 6 years 10 months 13 days |
Weighted Average Remaining Contractual Term, Vested and exercisable | 5 years 5 months 12 days | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value, Outstanding | $ 39,154 | $ 44,688 |
Aggregate Intrinsic Value, Vested and exercisable | $ 43,787 |
Stock Based Compensation - Sc_2
Stock Based Compensation - Schedule of Weighted Average Assumptions Used as Inputs to Black-Scholes Option Pricing Model (Detail) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Weighted average grant date fair value | $ 8.03 | $ 9.43 |
Expected dividend yield | 0.00% | 0.00% |
Expected stock price volatility | 64.00% | 59.00% |
Risk-free interest rate | 2.63% | 2.57% |
Expected life of options (in years) | 6 years 3 months 18 days | 5 years 7 months 6 days |
Stock Based Compensation - Sc_3
Stock Based Compensation - Schedule of Stock-Based Compensation Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | $ 1,778 | $ 2,701 |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | 1,693 | 2,161 |
Restricted Stock Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | 540 | |
Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | 85 | |
Cost of Sales | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | 64 | 44 |
Research and Development Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | 591 | 513 |
Selling, General, and Administrative Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | $ 1,123 | $ 2,144 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Athenex, Inc. Common Stockholders - Schedule Outstanding Shares of Common Stock Equivalents Excluded from the Calculation of Diluted Net Loss Per Share (Detail) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 11,219,839 | 10,171,020 |
Stock Options and Other Common Stock Equivalents | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 11,219,839 | 9,931,020 |
Unvested Restricted Common Shares | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 240,000 |
Business Segment, Geographic,_3
Business Segment, Geographic, and Concentration Risk Information - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2019Segment | |
Segment Reporting Information [Line Items] | |
Number of operating segments | 3 |
Segments Deriving Revenue | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 2 |
Business Segment, Geographic,_4
Business Segment, Geographic, and Concentration Risk Information - Summary of Revenue by Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total revenue: | ||
Total consolidated revenue | $ 25,307 | $ 37,836 |
Operating Segments | ||
Total revenue: | ||
Total consolidated revenue | 26,158 | 39,052 |
Operating Segments | Oncology Innovation Platform | ||
Total revenue: | ||
Total consolidated revenue | 144 | 25,231 |
Operating Segments | Global Supply Chain Platform | ||
Total revenue: | ||
Total consolidated revenue | 11,339 | 5,127 |
Operating Segments | Commercial Platform | ||
Total revenue: | ||
Total consolidated revenue | 14,675 | 8,694 |
Intersegment Eliminations | ||
Total revenue: | ||
Total consolidated revenue | $ (851) | $ (1,216) |
Business Segment, Geographic,_5
Business Segment, Geographic, and Concentration Risk Information - Summary of Revenue by Product Group (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total revenue by product group: | ||
Total consolidated revenue | $ 25,307 | $ 37,836 |
API Sales | ||
Total revenue by product group: | ||
Total consolidated revenue | 4,831 | 2,642 |
Medical Device Sales | ||
Total revenue by product group: | ||
Total consolidated revenue | 585 | |
Contract Manufacturing Revenue | ||
Total revenue by product group: | ||
Total consolidated revenue | 251 | 241 |
Commercial Product Sales | ||
Total revenue by product group: | ||
Total consolidated revenue | 20,081 | 9,137 |
License Fees | ||
Total revenue by product group: | ||
Total consolidated revenue | 25,091 | |
Consulting Revenue | ||
Total revenue by product group: | ||
Total consolidated revenue | 105 | |
Grant Revenue | ||
Total revenue by product group: | ||
Total consolidated revenue | $ 39 | $ 140 |
Business Segment, Geographic,_6
Business Segment, Geographic, and Concentration Risk Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net (loss) income attributable to Athenex, Inc.: | ||
Total consolidated net loss attributable to Athenex, Inc. | $ (35,233) | $ (7,298) |
Oncology Innovation Platform | ||
Net (loss) income attributable to Athenex, Inc.: | ||
Total consolidated net loss attributable to Athenex, Inc. | (27,603) | 1,509 |
Global Supply Chain Platform | ||
Net (loss) income attributable to Athenex, Inc.: | ||
Total consolidated net loss attributable to Athenex, Inc. | (767) | (6,569) |
Commercial Platform | ||
Net (loss) income attributable to Athenex, Inc.: | ||
Total consolidated net loss attributable to Athenex, Inc. | $ (6,863) | $ (2,238) |
Business Segment, Geographic,_7
Business Segment, Geographic, and Concentration Risk Information - Summary of Depreciation, Amortization and Assets by Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Total depreciation and amortization: | |||
Total consolidated depreciation and amortization | $ 879 | $ 868 | |
Total assets: | |||
Total consolidated assets | 220,307 | $ 231,095 | |
Oncology Innovation Platform | |||
Total depreciation and amortization: | |||
Total consolidated depreciation and amortization | 189 | 156 | |
Total assets: | |||
Total consolidated assets | 113,808 | 135,878 | |
Global Supply Chain Platform | |||
Total depreciation and amortization: | |||
Total consolidated depreciation and amortization | 311 | 467 | |
Total assets: | |||
Total consolidated assets | 65,488 | 58,816 | |
Commercial Platform | |||
Total depreciation and amortization: | |||
Total consolidated depreciation and amortization | 379 | $ 245 | |
Total assets: | |||
Total consolidated assets | $ 41,011 | $ 36,401 |
Business Segment, Geographic,_8
Business Segment, Geographic, and Concentration Risk Information - Summary of Revenue by Geographical Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Total revenue: | ||
Total consolidated revenue | $ 25,307 | $ 37,836 |
United States | ||
Total revenue: | ||
Total consolidated revenue | 20,335 | 9,901 |
Spain | ||
Total revenue: | ||
Total consolidated revenue | 25,000 | |
India | ||
Total revenue: | ||
Total consolidated revenue | 777 | 962 |
Austria | ||
Total revenue: | ||
Total consolidated revenue | 2,173 | 1,243 |
China | ||
Total revenue: | ||
Total consolidated revenue | 386 | 648 |
United Kingdom | ||
Total revenue: | ||
Total consolidated revenue | 1,023 | |
Other Foreign Countries | ||
Total revenue: | ||
Total consolidated revenue | $ 613 | $ 82 |
Business Segment, Geographic,_9
Business Segment, Geographic, and Concentration Risk Information - Summary of Property and Equipment by Geographical Segment (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Total property and equipment, net: | ||
Total consolidated property and equipment, net | $ 12,249 | $ 11,447 |
United States | ||
Total property and equipment, net: | ||
Total consolidated property and equipment, net | 7,283 | 6,549 |
China | ||
Total property and equipment, net: | ||
Total consolidated property and equipment, net | $ 4,966 | $ 4,898 |
Business Segment, Geographic_10
Business Segment, Geographic, and Concentration Risk Information - Summary of Customer Revenue and Accounts Receivable Concentration (Detail) - Commercial Platform and Global Supply Chain - Customer Concentration Risk | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Customer Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 22.00% | 10.00% | |
Customer Revenue | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21.00% | 4.00% | |
Customer Revenue | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21.00% | 7.00% | |
Customer Revenue | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 66.00% | ||
Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 32.00% | 18.00% | |
Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 19.00% | 16.00% | |
Accounts Receivable | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
Accounts Receivable | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 7.00% | 12.00% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Revenue Recognition Milestone Method [Line Items] | |||
License fees and consulting revenue | $ 25,307 | $ 37,836 | |
Provision for chargebacks and other deductions total | $ 10,448 | $ 13,101 | |
Revenue recognition cash discount percentage | 2.00% | ||
General settlement period for rebates and fees | Settlement of rebates and fees may generally occur from one to five months from date of sale. | ||
Deferred revenue | $ 131 | 190 | |
Out-license Revenue | |||
Revenue Recognition Milestone Method [Line Items] | |||
Deferred revenue | 100 | 200 | |
Commercial Platform | |||
Revenue Recognition Milestone Method [Line Items] | |||
Provision for chargebacks and other deductions total | 9,000 | $ 11,800 | |
Chargebacks and other deductions expense | 17,500 | 5,000 | |
Transferred at a Point in Time | |||
Revenue Recognition Milestone Method [Line Items] | |||
License fees and consulting revenue | $ 0 | $ 25,000 | |
Type of Revenue [Extensible List] | atnx:LicenseForIntellectualPropertyMember | atnx:LicenseForIntellectualPropertyMember | |
Transferred at a Point in Time | Commercial Platform | |||
Revenue Recognition Milestone Method [Line Items] | |||
License fees and consulting revenue | $ 14,675 | $ 8,694 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Company's Revenue for Reportable Segment by Country Based on Locations of Customer (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 25,307 | $ 37,836 |
Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 0 | 25,000 |
Oncology Innovation Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 144 | 25,231 |
Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 10,488 | 3,911 |
Commercial Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 14,675 | 8,694 |
United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 20,335 | 9,901 |
United States | Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 5,660 | 1,208 |
United States | Commercial Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 14,675 | 8,694 |
India | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 777 | 962 |
India | Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 777 | 962 |
Austria | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,173 | 1,243 |
Austria | Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,173 | 1,243 |
China | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 386 | 648 |
China | Oncology Innovation Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 144 | 231 |
China | Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 242 | 417 |
United Kingdom | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,023 | |
United Kingdom | Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 1,023 | |
Other Foreign Countries | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 613 | 82 |
Other Foreign Countries | Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 613 | 82 |
Spain | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 25,000 | |
Spain | Oncology Innovation Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 25,000 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Receivables and Contract Liabilities From Contracts with Customers (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Change In Contract With Customer Liability [Abstract] | ||
Accounts receivable, gross | $ 31,032 | $ 26,061 |
Chargebacks and other deductions | (10,448) | (13,101) |
Allowance for doubtful accounts | (8) | (9) |
Accounts receivable, net | 20,576 | 12,951 |
Deferred revenue | 131 | 190 |
Total contract liabilities | $ 131 | $ 190 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Accounts Receivable Balances by Reportable Segments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts Receivable Balances By Reportable Segments [Line Items] | ||
Accounts receivable, gross | $ 31,032 | $ 26,061 |
Allowance for doubtful accounts, chargebacks, and other deductions | (10,456) | (13,110) |
Accounts receivable, net | 20,576 | 12,951 |
Global Supply Chain Platform | ||
Accounts Receivable Balances By Reportable Segments [Line Items] | ||
Accounts receivable, gross | 7,876 | 7,814 |
Allowance for doubtful accounts, chargebacks, and other deductions | (13) | (9) |
Accounts receivable, net | 7,863 | 7,805 |
Commercial Platform | ||
Accounts Receivable Balances By Reportable Segments [Line Items] | ||
Accounts receivable, gross | 23,156 | 18,247 |
Allowance for doubtful accounts, chargebacks, and other deductions | (10,443) | (13,101) |
Accounts receivable, net | $ 12,713 | $ 5,146 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2019 | $ 2,943 |
2020 | 2,466 |
2021 | 2,040 |
2022 | 1,902 |
2023 | 1,675 |
Thereafter | 3,099 |
Future minimum payments under non-cancelable leases | $ 14,125 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | May 03, 2019 | Mar. 31, 2018 |
Common Stock | ||
Subsequent Event [Line Items] | ||
Shares issued | 4,765,000 | |
Subsequent Event | Share Purchase Agreement | ||
Subsequent Event [Line Items] | ||
Private placement closing date | May 7, 2019 | |
Percentage of obligation to pay aggregate purchase price paid by investor | 1.00% | |
Percentage of maximum aggregate purchase price payment to investor | 25.00% | |
Subsequent Event | Private Placement | Share Purchase Agreement | ||
Subsequent Event [Line Items] | ||
Gross proceeds from issuance of private placement | $ 100 | |
Common stock share price | $ 10 | |
Subsequent Event | Private Placement | Share Purchase Agreement | Common Stock | ||
Subsequent Event [Line Items] | ||
Shares issued | 10,000,000 |