Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ATNX | |
Entity Registrant Name | ATHENEX, INC. | |
Entity Central Index Key | 0001300699 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Common Stock, Shares Outstanding | 93,512,700 | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 001-38112 | |
Entity Tax Identification Number | 43-1985966 | |
Entity Address, Address Line One | 1001 Main Street | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Buffalo | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14203 | |
City Area Code | 716 | |
Local Phone Number | 427-2950 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 47,980 | $ 69,587 |
Restricted cash | 16,500 | 16,500 |
Short-term investments | 123,186 | 138,636 |
Accounts receivable, net of chargebacks and other deductions of $17,264 and $12,552, respectively, and provision for credit losses of $9,482 and $9,637, respectively | 20,189 | 23,603 |
Inventories | 26,324 | 28,846 |
Prepaid expenses and other current assets | 16,968 | 14,789 |
Total current assets | 251,147 | 291,961 |
Property and equipment, net | 41,778 | 34,388 |
Goodwill | 38,840 | 38,891 |
Intangible assets, net | 9,482 | 10,218 |
Operating lease right-of-use assets, net | 7,462 | 7,921 |
Other assets | 947 | 950 |
Total assets | 349,656 | 384,329 |
Current liabilities: | ||
Accounts payable | 15,858 | 18,673 |
Accrued expenses | 28,714 | 38,273 |
Current portion of operating lease liabilities | 3,161 | 3,185 |
Current portion of long-term debt and finance lease obligations | 1,970 | 2,010 |
Total current liabilities | 49,703 | 62,141 |
Long-term liabilities: | ||
Long-term operating lease liabilities | 5,832 | 6,355 |
Long-term debt and finance lease obligations | 147,265 | 146,577 |
Deferred tax liabilities | 58 | 56 |
Other long-term liabilities | 3,674 | 3,852 |
Total liabilities | 206,532 | 218,981 |
Commitments and contingencies (See Note 15) | ||
Stockholders' equity: | ||
Common stock, par value $0.001 per share, 250,000,000 shares authorized at March 31, 2021 and December 31, 2020; 95,185,620 and 95,066,195 shares issued at March 31, 2021 and December 31, 2020, respectively; 93,512,700 and 93,393,275 shares outstanding at March 31, 2021 and December 31, 2020, respectively | 95 | 95 |
Additional paid-in capital | 904,950 | 901,864 |
Accumulated other comprehensive loss | (841) | (1,134) |
Accumulated deficit | (738,694) | (713,644) |
Less: treasury stock, at cost; 1,672,920 shares at March 31, 2021 and December 31, 2020 | (7,406) | (7,406) |
Total Athenex, Inc. stockholders' equity | 158,104 | 179,775 |
Non-controlling interests | (14,980) | (14,427) |
Total stockholders' equity | 143,124 | 165,348 |
Total liabilities and stockholders' equity | $ 349,656 | $ 384,329 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) (unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, chargebacks and other deductions (in dollars) | $ 17,264 | $ 12,552 |
Provision for credit losses (in dollars) | $ 9,482 | $ 9,637 |
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 | 95,185,620 | 95,066,195 |
Common Stock, shares outstanding | 93,512,700 | 93,393,275 |
Treasury stock, shares | 1,672,920 | 1,672,920 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | ||
Total revenue | $ 41,025 | $ 46,935 |
Cost of sales | 16,405 | 19,572 |
Gross Profit | 24,620 | 27,363 |
Operating expenses: | ||
Research and development expenses | 23,070 | 17,192 |
Selling, general, and administrative expenses | 22,120 | 25,748 |
Total operating expenses | 45,190 | 42,940 |
Operating loss | (20,570) | (15,577) |
Interest income | 29 | 413 |
Interest expense | 4,908 | 1,673 |
Loss before income tax expense | (25,449) | (16,837) |
Income tax expense | 154 | 2,881 |
Net loss | (25,603) | (19,718) |
Less: net loss attributable to non-controlling interests | (553) | (289) |
Net loss attributable to Athenex, Inc. | (25,050) | (19,429) |
Unrealized gain (loss) on investment, net of income taxes | 16 | (68) |
Foreign currency translation adjustment, net of income taxes | 277 | (438) |
Comprehensive loss | $ (24,757) | $ (19,935) |
Net loss per share attributable to Athenex, Inc. common stockholders, basic and diluted (See Note 12) | $ (0.27) | $ (0.24) |
Weighted-average shares used in computing net loss per share attributable to Athenex, Inc. common stockholders, basic and diluted (See Note 12) | 93,429,935 | 81,539,548 |
Product Sales, Net | ||
Revenue: | ||
Total revenue | $ 20,360 | $ 18,547 |
License and Other Revenue | ||
Revenue: | ||
Total revenue | $ 20,665 | $ 28,388 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Total Athenex, Inc. Stockholders' Equity | Non-Controlling Interests |
Beginning balance at Dec. 31, 2019 | $ 175,855 | $ 83 | $ 763,648 | $ (567,465) | $ (635) | $ (7,406) | $ 188,225 | $ (12,370) |
Beginning balance, shares at Dec. 31, 2019 | 83,231,063 | (1,672,920) | ||||||
Stock-based compensation cost | 1,864 | 1,864 | 1,864 | |||||
Restricted stock expense | 397 | 397 | 397 | |||||
Restricted stock expense, shares | (3,000) | |||||||
Stock options exercised | 344 | 344 | 344 | |||||
Stock options exercised, shares | 70,200 | |||||||
Net loss | (19,718) | (19,429) | (19,429) | (289) | ||||
Other comprehensive income (loss), net of tax | (506) | (506) | (506) | |||||
Ending balance at Mar. 31, 2020 | 158,236 | $ 83 | 766,253 | (586,894) | (1,141) | $ (7,406) | 170,895 | (12,659) |
Ending balance, shares at Mar. 31, 2020 | 83,298,263 | (1,672,920) | ||||||
Beginning balance at Dec. 31, 2020 | 165,348 | $ 95 | 901,864 | (713,644) | (1,134) | $ (7,406) | 179,775 | (14,427) |
Beginning balance, shares at Dec. 31, 2020 | 95,066,195 | (1,672,920) | ||||||
Stock-based compensation cost | 2,205 | 2,205 | 2,205 | |||||
Restricted stock expense | 29 | 29 | 29 | |||||
Stock options exercised | $ 852 | 852 | 852 | |||||
Stock options exercised, shares | 119,425 | 119,425 | ||||||
Net loss | $ (25,603) | (25,050) | (25,050) | (553) | ||||
Other comprehensive income (loss), net of tax | 293 | 293 | 293 | |||||
Ending balance at Mar. 31, 2021 | $ 143,124 | $ 95 | $ 904,950 | $ (738,694) | $ (841) | $ (7,406) | $ 158,104 | $ (14,980) |
Ending balance, shares at Mar. 31, 2021 | 95,185,620 | (1,672,920) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (25,603) | $ (19,718) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,274 | 1,086 |
Stock-based compensation expense | 2,234 | 2,261 |
Amortization of debt discount | 779 | 256 |
Loss on disposal of assets and impairment charges | 173 | |
Deferred income taxes | 2 | 48 |
Changes in operating assets and liabilities: | ||
Receivables, net | 3,414 | (34,728) |
Prepaid expenses and other assets | (2,176) | 3,748 |
Inventories | 2,523 | (3,101) |
Accounts payable and accrued expenses | (12,323) | 4,430 |
Net cash used in operating activities | (29,876) | (45,545) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (7,341) | (1,736) |
Payments for licenses | (1,088) | (64) |
Purchases of short-term investments | (55,784) | (23,571) |
Sales and maturities of short-term investments | 71,250 | 14,920 |
Net cash provided by (used in) investing activities | 7,037 | (10,451) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 435 | |
Proceeds from exercise of stock options | 852 | 344 |
Repayment of finance lease obligations and long-term debt | (98) | (47) |
Net cash provided by financing activities | 754 | 732 |
Net decrease in cash, cash equivalents, and restricted cash | (22,085) | (55,264) |
Cash, cash equivalents, and restricted cash, beginning of period | 86,087 | 127,674 |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 478 | (427) |
Cash, cash equivalents, and restricted cash, end of period (See Note 3) | 64,480 | 71,983 |
Supplemental cash flow disclosures | ||
Interest paid | 7,708 | 1,390 |
Non-cash investing and financing activities: | ||
Accrued purchases of property and equipment | 1,215 | 1,009 |
Accrued purchases of licenses | $ 1,800 | 500 |
ROU assets derecognized from modification of operating lease obligations | (468) | |
ROU assets recognized in exchange for operating lease obligations | $ 353 |
Company and Nature of Business
Company and Nature of Business | 3 Months Ended |
Mar. 31, 2021 | |
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 biopharmaceutical company dedicated to becoming a leader in the discovery, development, and commercialization of next generation drugs 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 has assembled a strong and experienced leadership team and has established operations across the pharmaceutical value chain to execute our goal of becoming a leader in bringing innovative cancer treatments to the market and improving health outcomes. The Company is organized around three operating segments: (1) its Oncology Innovation Platform, dedicated to the research and development of our proprietary drugs; (2) its Commercial Platform, focused on the sales and marketing of our specialty drugs and the market development of our proprietary drugs; and (3) its Global Supply Chain Platform, dedicated to providing a stable and efficient supply of APIs for our clinical and commercial efforts. The Company’s current clinical pipeline in the Oncology Innovation Platform is derived from four different proprietary technologies: (1) Orascovery, based on a P-glycoprotein (“P-gp”) pump inhibitor, (2) Src Kinase Inhibition, (3) Cell Therapy, and (4) Arginine Deprivation Therapy . The Company is primarily engaged in conducting research and development activities through corporate collaborators, in-licensing and out-licensing pharmaceutical compounds and technology, conducting preclinical and clinical testing, identifying and evaluating additional drug candidates for potential in-licensing or acquisition, and raising capital to support development and commercialization activities. The Company also conducts commercial sales of specialty products through its wholly owned subsidiary, Athenex Pharmaceutical Division (“APD”), and 503B products through its wholly owned subsidiary, Athenex Pharma Solutions (“APS”). Significant Risks and Uncertainties The Company has incurred operating losses since its inception and, as a result, as of March 31, 2021 and December 31, 2020 had an accumulated deficit of $738.7 The Company believes that the existing cash and cash equivalents, restricted cash, and short-term investments will enable us to meet our current operational liquidity needs and fund operations into the second half of 2022. The Company has based these estimates on assumptions that may prove to be wrong, and it could spend the available financial resources much faster than expected and need to raise additional funds sooner than anticipated. In February 2021, the Company received a Complete Response Letter (“CRL”) from the U.S. Food and Drug Administration (“FDA”) regarding the Company’s New Drug Application (“NDA”) for oral paclitaxel and encequidar (“Oral Paclitaxel”) for the treatment of metastatic breast cancer. The FDA issues a CRL to indicate that the review cycle for an application is complete and that the application is not ready for approval in its present form. In the CRL, the FDA indicated its concern of safety risk to patients in terms of an increase in neutropenia-related sequelae on the Oral Paclitaxel arm compared with the IV paclitaxel arm in the Phase III study. The FDA also expressed concerns regarding the uncertainty over the results of the primary endpoint of objective response rate (ORR) at week 19 conducted by blinded independent central review (“BICR”). The FDA stated that the BICR reconciliation and re-read process may have introduced unmeasured bias and influence on the BICR. The FDA recommended that Athenex conduct a new adequate and well-conducted clinical trial in a patient population with metastatic breast cancer representative of the population in the U.S. The FDA determined that additional risk mitigation strategies to improve toxicity, which may involve dose optimization as well as, or in addition to, exclusion of patients deemed to be at higher risk of toxicity, are required to support potential approval of the NDA. We are working to consider the appropriate next steps in the development of Oral Paclitaxel. We have been preparing for and plan to request a meeting with the FDA and plan to engage in a dialogue on the design and scope of a clinical trial to address the FDA ’s requirements and align on the next steps required to obtain approval. The Company’s ability to potentially commercialize Oral Paclitaxel , and the timing of potential commercialization, is dependent on the discussion with the agency, the Company’s resubmission of its NDA, ultimate FDA approval, and potentially additional capital. The Company 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 regulatory approval of product candidates; competitors developing new technological innovations; unsuccessful commercialization |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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, do not include all of the information the opinion of management, reflect all normal recurring adjustments necessary a fair of the results for the periods presented. These condensed consolidated financial statements reflect the accounts and operations of Athenex, Inc. and those of its subsidiaries in which Athenex, Inc. has a controlling financial interest. Intercompany transactions and balances have been eliminated Results of the Company’s operations for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the year ending December 31, 2021, or for any other future annual or interim period. These condensed consolidated 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, 2020, filed with the Securities and Exchange Commission (“SEC”) on March 1, 2021. 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 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, measurement of acquired assets and assumed liabilities in business combinations, provision for credit losses, inventory reserves, deferred income taxes, the estimated useful life and recoverability of long-lived assets, and the valuation of stock-based awards and other items as appropriate. Actual results could differ from those estimates. Credit Losses The Company estimates and records a provision for its expected credit losses related to its financial instruments, including its trade receivables and contract assets recorded under Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (“Topic 606”). The Company considers historical collection rates, current financial status of its customers, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses. However, because of the short time to the expected receipt of accounts receivable and contract assets, the Company believes that the carrying value, net of excepted losses, approximates fair value and therefore, relies more on historical and current analysis of such financial instruments. 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, restricted cash, and short-term investments. The Company deposits its cash equivalents in interest-bearing money market accounts and certificates of deposit, 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, and research and development facility in China, and therefore is subject to foreign currency fluctuation and regulatory uncertainties. |
Restricted Cash
Restricted Cash | 3 Months Ended |
Mar. 31, 2021 | |
Restricted Cash [Abstract] | |
Restricted Cash | 3. Restricted Cash The Company had a restricted cash balance of $16.5 million as of March 31, 2021 and December 31, 2020 held in a controlled bank account in connection with the Company’s senior secured loan agreement and related security agreements (the “Senior Credit Agreement”) with Oaktree Fund Administration, LLC, as administrative agent, and the lenders party thereto (collectively, “Oaktree”). The |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories consist of the following (in thousands): March 31, 2021 December 31, 2020 Raw materials and purchased parts $ 3,054 $ 6,498 Work in progress 1,728 776 Finished goods 21,542 21,572 Total inventories $ 26,324 $ 28,846 |
Intangible Assets, net
Intangible Assets, net | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net | 5. Intangible Assets, net The Company’s identifiable intangible assets, net, consist of the following (in thousands): March 31, 2021 Cost/Fair Value Accumulated Amortization Impairments Net Amortizable intangible assets: Licenses $ 12,641 $ 5,745 $ — $ 6,896 Polymed customer list 1,593 1,482 — 111 Polymed technology 3,712 1,754 — 1,958 Indefinite-lived intangible assets: CDE in-process research and development (IPR&D) 728 — — 728 Effect of currency translation adjustment (211 ) — — (211 ) Total intangible assets, net $ 18,463 $ 8,981 $ — $ 9,482 December 31, 2020 Cost/Fair Value Accumulated Amortization Impairments Net Amortizable intangible assets Licenses $ 12,641 $ 5,157 $ — $ 7,484 Polymed customer list 1,593 1,418 — 175 Polymed technology 3,712 1,685 — 2,027 Indefinite-lived intangible assets: CDE in-process research and development (IPR&D) 728 — — 728 Effect of currency translation adjustment (196 ) — — (196 ) Total intangibles, net $ 18,478 $ 8,260 $ — $ 10,218 As of March 31, 2021, licenses at cost include an Orascovery license of $0.4 million, licenses purchased from Gland Pharma Limited (“Gland”) of $4.4 The remaining intangible assets were acquired in connection with the acquisitions of Polymed Therapeutics, Inc. (“Polymed”) and Comprehensive Drug Enterprises (“CDE”). Intangible assets are amortized using an economic consumption model over their useful lives. 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 is tested annually for impairment, unless conditions exist causing an earlier impairment test (e.g., abandonment of project). The Company recorded no impairments of IPR&D during the three months ended March 31, 2021. The weighted-average useful life for all intangible assets was 7.1 years as of March 31, 2021. The Company recorded The Company’s goodwill balance is the result of prior period acquisitions and is allocated to the Global Supply Chain Platform reporting unit and the Oncology Innovation Platform reporting unit. Changes in goodwill balances reported within the unaudited condensed consolidated balance sheet as of March 31, 2021 are due to the effect of foreign currency on goodwill from acquisitions of subsidiaries that have a functional currency other than USD. During the first quarter of 2021, due to the significant decrease in its market capitalization, the Company evaluated the impact on each of its reporting units to assess whether there was a triggering event requiring it to perform a goodwill impairment test (ASC350-20-35). The Company determined a triggering event occurred and, as such, performed an interim goodwill quantitative impairment test for its reporting units. It also considered certain qualitative factors, such as the Company’s performance, business forecasts, and expansion plans. It reviewed key assumptions, including revisions of projected cash flows and future revenue for reporting units against the results of the annual quantitative impairment test performed during the last quarter of 2020. Using both the income approach and the market approach for its Global Supply Chain Platform and Oncology Innovation Platform, with the discount rate selected considering and capturing the related risk associated with the forecast, the Company compared the fair value of the two reporting units to carrying value. Based on the results, the fair value of each of our reporting units exceeded their carrying value and the goodwill was not impaired. However, there can be no assurances that goodwill will not be impaired in future periods. Estimating the fair value of goodwill requires the use of estimates and significant judgments that are based on a number of factors. These estimates and judgments may not be within the control of the Company and accordingly it is reasonably possible that the judgments and estimates could change in future periods. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements Financial instruments consist of cash and cash equivalents, restricted cash, short-term investments, an available-for-sale 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, restricted cash, 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, 2021 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 $ 5,497 $ 5,497 $ — $ — Short-term investments - certificates of deposit 1,000 — 1,000 — Short-term investments - commercial paper 22,548 — 22,548 — Financial assets included within short-term investments Short-term investments - certificates of deposit 22,769 — 22,769 — Short-term investments - U.S. government bonds 15,000 — 15,000 — Short-term investments - commercial paper 85,185 — 85,185 — Available-for-sale investment 232 232 — — Total assets $ 152,231 $ 5,729 $ 146,502 $ — Fair Value Measurements at December 31, 2020 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 $ 5,615 $ 5,615 $ — $ — Short-term investments - certificates of deposit 4,070 — 4,070 — Short-term investments - U.S. government bonds 5,000 — 5,000 — Short-term investments - commercial paper 34,860 — 34,860 — Financial assets included within short-term investments Short-term investments - certificates of deposit 20,696 — 20,696 — Short-term investments - U.S. government bonds 14,998 — 14,998 — Short-term investments - commercial paper 102,715 — 102,715 — Available-for-sale investment 227 227 — — Total assets $ 188,181 $ 5,842 $ 182,339 $ — 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, certificates of deposit, 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, 2021 and December 31, 2020, the Company’s investment in PharmaEssentia was valued at the reported closing price on such dates. This investment is classified as a Level 1 investment and is recorded as an available-for-sale investment within short-term investments on the Company’s condensed consolidated balance sheet. |
Accrued Expenses
Accrued Expenses | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses consist of the following (in thousands): March 31, December 31, 2021 2020 Accrued wages and benefits $ 7,798 $ 6,720 Accrued selling fees, rebates, and royalties 4,388 9,046 Accrued operating expenses 3,804 3,222 Accrued construction costs 3,421 4,104 Accrued inventory purchases 2,397 3,714 Accrued clinical expenses 2,073 2,949 Accrued tax withholdings 1,863 1,948 Accrued costs for product launch 1,415 1,474 Deferred revenue 1,289 1,147 Accrued R&D licensing fees 266 366 Accrued interest — 3,583 Total accrued expenses $ 28,714 $ 38,273 The accrued construction costs relate to the building of the manufacturing facility in Dunkirk, NY. This amount, plus an additional $0.4 million paid by the Company is expected to be funded by New York State. Therefore, $3.8 million is recorded within prepaid expenses and other current assets on the Company’s condensed consolidated balance sheet as of March 31, 2021 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The Company did not record a provision for U.S. federal income taxes for the three months ended March 31, 2021 because it expects to generate a loss for the year ending December 31, 2021 and the Company’s net deferred tax assets continue to be fully offset by a valuation allowance. million , on milestone payments in connection with an out-license agreement. |
Debt and Lease Obligations
Debt and Lease Obligations | 3 Months Ended |
Mar. 31, 2021 | |
Debt And Lease Obligations [Abstract] | |
Debt and Lease Obligations | 9. Debt and Lease Obligations Debt The Company’s debt as of March 31, 2021 and December 31, 2020, consists of the following (in thousands): March 31, December 31, 2021 2020 Current portion of mortgage $ 729 $ 731 Current portion of bank loan 761 764 Current portion of senior secured loan 70 70 Current portion of finance lease obligations 410 445 Current portion of operating lease obligations 3,161 3,185 Long-term portion of finance lease obligations 474 537 Long-term portion of operating lease obligations 5,832 6,355 Chongqing Maliu credit agreement 7,614 7,641 Senior secured loan, net of debt discount and financing fees of $10,822 and $11,601 respectively 139,178 138,399 Total $ 158,229 $ 158,127 Senior Credit Agreement On June 19, 2020 (“Closing Date”), the Company entered into the Senior Credit Agreement with Oaktree to borrow up to $225.0 million in five tranches, with a maturity date of June 19, 2026. Three tranches (“Tranche A”, “Tranche B”, and “Tranche D”) of the term loans with an aggregate principal amount of $150.0 million were drawn by the Company in 2020. One tranche (“Tranche C”) of $25.0 million will be available to the Company from 90 days after the Closing Date through June 20, 2022, subject to the Company’s satisfaction of a certain regulatory milestone; and the last tranche of $50.0 million (“Tranche E”) will be available to the Company from 90 days after the Closing Date through June 19, 2023, also subject to the Company’s satisfaction of a certain commercial milestone. The loan bears interest at a fixed annual rate of 11.0%. The Company allocated the proceeds of the drawn tranches between liability and equity components and the fair value of such equity components, along with the direct costs related to the issuance of the debt were recorded as an offset to long-term debt on the consolidated balance sheets. The debt discount and financing fees are amortized on a straight-line basis, which approximates the effective interest method, over the remaining maturity of the Senior Credit Agreement. The effective interest rate of Tranches A, B and D, including the amortization of debt discount and financing fees amounts to 13.3% annually. The Company is required to make quarterly interest-only payments until June 19, 2022, after which the Company is required to make quarterly amortizing payments, with the remaining balance of the principal plus accrued and unpaid interest due at maturity. Beginning on September 17, 2020, the Company was required to pay a commitment fee on any undrawn commitments equal to 0.6% per annum, payable on each subsequent funding date or the commitment termination date. Prepayments of the loan, in whole or in part, will be subject to early prepayment fee which declines each year until the fourth anniversary date of the Closing Date, after which no prepayment fee is required. Upon the final payment, the Company must also pay an exit fee calculated based on a percentage of the aggregate principal amount of all tranches advanced to the Company, and as of March 31, 2021 and December 31, 2020, the Company has reflected a long-term exit fee liability of $3.0 million within long-term debt and finance lease obligations on the consolidated balance sheet. The Senior Credit Agreement contains certain representations and warranties, affirmative covenants, negative covenants and conditions that were customarily required for similar financings. The Company is subject to certain financial covenants under the Senior Credit Agreement, including (1) a minimum liquidity amount in cash or permitted cash equivalent investments of $20.0 million from the closing date until the date on which the aggregate principal amount of loans outstanding is greater than or equal to $150.0 million (the “First Step-Up Date”), $25.0 million from the First Step-Up Date until the date on which the aggregate principal amount of loans outstanding balance is equal to $225.0 million (the “Second Step-Up Date”), and $30.0 million from the Second Step-up Date until the maturity date; (2) minimum revenue no less than 50% of target revenue beginning with the fiscal quarter ended on December 31, 2020 and with respect to each such subsequent fiscal quarter prior to the revenue covenant termination date; (3) leverage ratio covenant not to exceed 4.50 to 1.00 as of the last day of any fiscal quarter beginning with the first fiscal quarter following the revenue covenant termination date. At March 31, 2021, the Company was in compliance with all applicable debt covenants. Revenue Interest Financing Agreement On August 4, 2020, the Company entered into a Revenue Interest Financing Agreement with Sagard, pursuant to which Sagard agreed to pay the Company $50.0 million to provide funding for the Company’s development and commercialization of Oral Paclitaxel upon receipt of marketing authorization for Oral Paclitaxel by the U.S. FDA for the treatment of metastatic breast cancer. In the event the Company is unable to do so before December 31, 2021, Sagard will have a termination right. In exchange for the Product Payment, the Company agreed to make payments to Sagard equal to 5.0% of its world-wide net sales of Oral Paclitaxel, subject to a hard cap equal to the lesser of 170% of the Product Payment and the Put/Call Price as discussed below and further set forth in the Revenue Interest Financing Agreement. The Company is required to make certain additional payments to Sagard to the extent Sagard has not received Payments equaling at least $20.0 million by September 30, 2024 and at least $50.0 million by August 4, 2026, in the amount of the applicable shortfall, and, subject to the Hard Cap, if Sagard has not received Payments equaling at least $85.0 million by the tenth anniversary of the date the Product Payment is funded, in an amount such that Sagard will have obtained a 6.0% internal rate of return on the Product Payment. The Company’s obligations under the Revenue Interest Financing Agreement are secured, subject to customary permitted liens and other agreed upon exceptions and subject to an intercreditor agreement with Oaktree as administrative agent for the lenders under our Senior Credit Agreement, by a perfected security interest in (i) accounts receivable arising from net sales of Oral Paclitaxel and (ii) intellectual property that is claiming or covering Oral Paclitaxel itself or any method of using, making or manufacturing Oral Paclitaxel. Credit Agreements, Bank Loan and Mortgage During the second quarter of 2019, the Company entered into a credit agreement which amended the existing partnership agreement with Chongqing Maliu Riverside Development and Investment Co., LTD (“CQ”), for a Renminbi ¥50.0 million (USD $7.7 million at December 31, 2020) line of credit to be used for the construction of the new API plant in China. The Company is required to repay the principal amount with accrued interest within three years after the plant receives the cGMP certification, with 20% of the total loan with accrued interest is due within the first twelve months following receiving the certification, 30% of the total loan with accrued interest due within twenty-four months, and the remaining balance with accrued interest due within thirty-six months. Interest accrues at the three-year loan interest rate by the People’s Bank of China for the same period on the date of the deposit of the full loan amount, which is expected to approximate 4.75% annually. If the Company fails to obtain the cGMP certification within three years upon the acceptance of the plant, it shall return all renovation costs with the accrued interest to CQ in a single transaction within the first ten business days. As of March 31, 2021, the balance due to CQ was $7.6 million. On May 15, 2020, the Company entered into a credit agreement with China Merchants Bank, enabling the Company to draw up to a Renminbi ¥5.0 million (USD $0.8 million at March 31, 2021) during the period through May 14, 2021. The Company drew the entire available credit in July 2020. This loan has a maturity date of May 14, 2021 and bears interest at a fixed rate of 4.35% annually. The Company is required to pay the outstanding principal and all accrued interest at maturity. The mortgage payments, assumed in connection with the acquisition of CDE, extend through December 31, 2021. Lease Obligations The Company has operating leases for office and manufacturing facilities in several locations in the U.S., Asia, and Latin America 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, 2021 2020 Operating lease cost 746 $ 755 Finance lease cost: Amortization of assets 75 34 Interest on lease liabilities 24 6 Total net lease cost $ 845 $ 795 The Company has elected to exclude short-term leases from its operating lease right-of-use (“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, 2021 and 2020. Variable lease costs for the three months ended March 31, 2021 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, 2021 December 31, 2020 Finance leases: Property and equipment, at cost $ 1,535 $ 1,535 Accumulated amortization, net (422 ) (347 ) Property and equipment, net $ 1,113 $ 1,188 Current obligations of finance leases $ 410 $ 445 Long-term portion of finance leases 474 537 Total finance lease obligations $ 884 $ 982 Weighted average remaining lease term (in years): Operating leases 3.96 4.23 Finance leases 3.06 3.40 Weighted average discount rate: Operating leases 12.8 % 12.8 % Finance leases 10.8 % 10.4 % Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Cash paid for amount included in the measurements of lease liabilities: Operating cash flows from operating leases $ (979 ) $ (820 ) Operating cash flows from finance leases (24 ) (6 ) Financing cash flows from finance leases (98 ) (47 ) ROU assets derecognized from modification of operating lease obligations — (468 ) ROU assets recognized in exchange for operating lease obligations $ — $ 353 Future minimum payments and maturities of leases is as follows (in thousands): Year ending December 31: Operating Leases Finance Leases 2021 (remaining nine months) $ 2,577 $ 351 2022 2,918 275 2023 2,096 248 2024 2,002 157 2025 1,472 — Thereafter 478 — Total lease payments 11,543 1,031 Less: Imputed interest (2,550 ) (147 ) Total lease obligations 8,993 884 Less: Current obligations (3,161 ) (410 ) Long-term lease obligations $ 5,832 $ 474 Pursuant to the public-private partnership agreements with the State of New York, the Company will rent the manufacturing facilities in Dunkirk, NY. The facility is in the final stage of completion. However, no lease term had commenced as of March 31, 2021, as it was not yet operational and the Company could not direct the use of the facility. No lease costs were incurred related to the manufacturing facility during the three-month period ended March 31, 2021. On January 5, 2021, Chongqing Sintaho Pharmaceuticals Co., Ltd. (“CQ Sintaho”), a subsidiary of the Company in China, entered into a lease agreement with Chongqing International Biological City Development & Investment Co., Ltd (“CQ D&I”). Under the lease agreement, the provisions of which are consistent with those agreed upon in the 2015 Agreement, CQ Sintaho leased the newly constructed API facility, or Sintaho API Facility, of 34,517 square meters rent-free, for the first 10-year term, with an option to extend the lease for an additional 10-year term, during which, if CQ Sintaho is profitable, it will pay a monthly rent of 5 RMB per square meter of space occupied. The Company determined the lease had commenced as of March 31, 2021, as it was operational and CQ Sintaho could direct the use of the facility. The Company also evaluated the probability of exercising the renewal and purchase options, and determined that it is not reasonably certain whether it will exercise those options. Therefore, the lease term is comprised only of the rent-free period and the recognition of the right-of-use asset and liability did not have a significant effect on the Company’s consolidated financial statements. The Company exercises judgment in determining the discount rate used to measure the lease liabilities. When rates are not implicit within an operating lease, the Company uses its incremental borrowing rate as its discount rate, which is based on yield trends in the biotechnology and healthcare industry and debt instruments held by the Company with stated interest rates. The Company re-assesses its incremental borrowing rate when new leases arise, or existing leases are modified. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 10. Related Party Transactions During the three months ended March 31, 2021 and 2020, the Company entered into transactions with individuals and companies that have financial interests in the Company. Related party transactions included the following: a. In June 2018, the Company entered into two in-licensing agreements with Avalon BioMedical (Management) Limited (“Avalon”) wherein the Company obtained certain IP from Avalon 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. In June 2019, the Company entered into an agreement whereby Avalon would hold a 90% ownership interest and the Company would hold a 10% ownership interest of the newly formed entity under the name Nuwagen Limited (“Nuwagen”), incorporated under the laws of Hong Kong. Nuwagen is principally engaged in the development and commercialization of herbal medicine products for metabolic, endocrine, and other related indications. The Company contributed nonmonetary assets in exchange for the 10% ownership interest. In July 2020, the transaction closed. The activities of Nuwagen were not material to the financial statements for the three months ended March 31, 2021. b. The Company earns licensing revenue from PharmaEssentia, an entity in which the Company has an investment classified as available-for-sale (see Note 6— Fair Value Measurements In September 2020, Axis Therapeutics Limited (“Axis”), a majority-owned subsidiary of the Company, entered into a collaboration agreement with PharmaEssentia, pursuant to which Axis granted to PharmaEssensia an exclusive, non-transferrable and revocable sublicense of TCR-engineered T Cell therapy for the development of the technology in Taiwan. Axis received license fee of $1.0 million, net of $0.3 million withholding tax, in the fourth quarter of 2020. This amount was recorded as deferred revenue as of March 31, 2021. c. The Company receives certain clinical development services from ZenRx Limited and its affiliate (collectively, “ZenRx”), a company for which one of the Company’s 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 for the Company. Such services were not significant to the condensed consolidated financial statements. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
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, taken together, authorize the grant of up to 16,000,000 shares of common stock to employees, directors, and consultants. On May 23, 2019, the board of directors approved the amendment and restatement of the 2017 Omnibus Incentive Plan (the “2017 Plan”, which increases the number of shares available for issuance under the 2017 Plan by up to 3,500,000 shares, which was approved by the Company’s stockholders at the Company’s 2020 annual meeting of stockholders . On April 26, 2021, the board of directors approved an amendment to the 2017 Plan, which increases the number of shares available for issuance under the 2017 Plan by 5,000,000 shares, subject to the approval of the Company’s stockholders at the Company’s 2021 annual meeting of stockholders. The Company also has an employee stock purchase plan, the 2017 Employee Stock Purchase Plan (the “ESPP”), adopted on June 14, 2017, 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, 2021 and 2020 was $2.2 million and $1.9 million, respectively. As of March 31, 2021, $16.5 million of unrecognized cost related to non-vested stock options was expected to be recognized over a weighted-average period of approximately 1.8 years. T he total intrinsic value of options exercised was approximately $0.2 million and $0.8 million for the three months ended March 31, 2021 and 2020, respectively The following table summarizes the status of the Company’s stock option activity granted under the Plans to employees, directors, and consultants (aggregate intrinsic value in thousands): Stock Options Weighted- Average Exercise price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2020 12,496,888 $ 9.26 5.42 $ 22,463 Granted 20,000 11.90 — — Exercised (119,425 ) 7.10 — — Forfeited and expired (32,830 ) 12.92 — — Outstanding at March 31, 2021 12,364,633 $ 9.28 5.20 $ — Vested and exercisable at March 31, 2021 9,504,028 $ 8.21 4.28 $ — 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 several 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 March 31, 2021 2020 Weighted average grant date fair value $ 7.40 $ 7.32 Expected dividend yield — % — % Expected stock price volatility 68 % 67 % Risk-free interest rate 1.37 % 0.75 % Expected life of options (in years) 6.3 5.0 Restricted Stock Awards No million and $0.4 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, $0.3 million of unrecognized cost related to non-vested restricted stock awards were expected to be recognized over a weighted-average period of approximately 1.4 years. 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, 2020 to May 31, 2021. The Company expects to offer six-month offering periods after the current period. The ESPP 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 for each of the three months ended March 31, 2021 and 2020. Stock-Based Compensation Cost The components of stock-based compensation and the amounts recorded within cost of sales, 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, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Stock options $ 2,205 $ 1,864 Restricted stock expense 29 397 Employee stock purchase plan 46 70 Total stock-based compensation expense $ 2,280 $ 2,331 Cost of sales $ 56 $ 54 Research and development expenses 601 946 Selling, general, and administrative expenses 1,623 1,331 Total stock-based compensation expense $ 2,280 $ 2,331 |
Net Loss per Share Attributable
Net Loss per Share Attributable to Athenex, Inc. Common Stockholders | 3 Months Ended |
Mar. 31, 2021 | |
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 stock and common stock 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, 2021 2020 Stock options and other common stock equivalents 13,899,191 11,347,475 Unvested restricted shares 22,500 105,000 Total potential dilutive shares 13,921,691 11,452,475 |
Business Segment, Geographic, a
Business Segment, Geographic, and Concentration Risk Information | 3 Months Ended |
Mar. 31, 2021 | |
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. It focuses specifically on Orascovery and Src Kinase Inhibition research platforms, cell therapy programs and arginine deprivation therapy. Global Supply Chain Platform — This operating segment includes APS and Polymed and the construction of the manufacturing facilities in Chongqing, China, and Dunkirk, NY. APS is a manufacturing company that supplies sterile injectable drugs to hospital pharmacies across the U.S. APS manufactures products under Section 503B of the Compounding Quality Act within the Federal Food, Drug & Cosmetic Act (“FDCA”). Additionally, APS provides products for the development and manufacturing of the Company’s proprietary drug candidates as well as providing the Company with a cGMP analytical services function. Polymed is primarily in the business of marketing and selling API in North America, Europe, and Asia from its locations in Texas and China. Polymed also develops new compounds and processing techniques and is in the final phase of completion of the new API manufacturing facility in Chongqing, China. Commercial Platform — This operating segment includes APD and Athenex Oncology, which focus on the manufacturing, distribution, and sales of specialty pharmaceuticals and the pre-launch commercial activities for the Company’s proprietary drugs, respectively. This segment provides services and products to external customers based mainly in the U.S. The Company’s Oncology Innovation Platform segment operates and holds long-lived assets located in the U.S., Taiwan, Hong Kong, mainland China, the United Kingdom, and Latin America. The Global Supply Chain Platform segment operates and holds long-lived assets located in the U.S. and China. The Commercial Platform segment operates and holds long-lived assets located in the U.S. 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, 2021 2020 Total revenue: Oncology Innovation Platform $ 20,665 $ 28,387 Global Supply Chain Platform 8,207 3,714 Commercial Platform 13,259 15,542 Total revenue for reportable segments 42,131 47,643 Intersegment revenue (1,106 ) (708 ) Total consolidated revenue $ 41,025 $ 46,935 Intersegment revenue eliminated in the above table reflects $0.6 million in sales from the Global Supply Chain Platform to the Commercial Platform and $0.5 million in sales from the Global Supply Chain Platform to the Oncology Innovation Platform (in thousands). Three Months Ended March 31, 2021 2020 Total revenue by product group: License fees $ 20,500 $ 28,381 Commercial product sales 18,061 17,502 API sales 1,868 1,022 Contract manufacturing revenue 430 23 Other revenue 166 7 Total consolidated revenue $ 41,025 $ 46,935 Intersegment revenue is recognized by the selling segment 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. Upon consolidation, all intersegment revenue and related cost of sales are eliminated from the selling segment’s ledger (in thousands). Three Months Ended March 31, 2021 2020 Net loss attributable to Athenex, Inc.: Oncology Innovation Platform $ (5,441 ) $ (958 ) Global Supply Chain Platform (3,682 ) (5,986 ) Commercial Platform (15,927 ) (12,485 ) Total consolidated net loss attributable to Athenex, Inc. $ (25,050 ) $ (19,429 ) Three Months Ended March 31, 2021 2020 Total depreciation and amortization: Oncology Innovation Platform $ 207 $ 175 Global Supply Chain Platform 523 496 Commercial Platform 544 415 Total consolidated depreciation and amortization $ 1,274 $ 1,086 March 31, December 31, 2021 2020 Total assets: Oncology Innovation Platform $ 199,741 $ 234,153 Global Supply Chain Platform 101,621 99,087 Commercial Platform 48,294 51,089 Total consolidated assets $ 349,656 $ 384,329 Three Months Ended March 31, 2021 2020 Total revenue: United States $ 38,645 $ 17,522 China 205 28,513 Other foreign countries 2,175 900 Total consolidated revenue $ 41,025 $ 46,935 March 31, December 31, 2021 2020 Total property and equipment, net: United States $ 20,902 $ 15,511 China 20,876 18,877 Total consolidated property and equipment, net $ 41,778 $ 34,388 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, 2021 2020 Percentage of total revenue by customer: Customer A 49 % 0 % Customer B 11 % 9 % Customer C 9 % 11 % Customer D 9 % 7 % Customer E 0 % 60 % March 31, December 31, 2021 2020 Percentage of total accounts receivable by customer: Customer A 36 % 33 % Customer B 30 % 24 % Customer C 10 % 16 % Customer D 0 % 6 % |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2021 | |
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. Below is a description of principal activities – separated by reportable segments – from which the Company generates its revenue . 1. Oncology Innovation Platform The Company out-licenses certain of its IP to other 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 the contracts to identify its performance obligations within the contract. Most of the Company’s out-license arrangements contain multiple performance obligations and variable pricing. After the performance obligations are identified, the Company determines the transaction price, which generally includes upfront fees, milestone payments related to the achievement of developmental, regulatory, or commercial goals, and royalty payments on net sales of licensed products. The Company considers whether the transaction price is fixed or variable, and whether such consideration is subject to return. Variable consideration is only included in the transaction price to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved. If any portion of the transaction price is constrained, it is excluded from the transaction price until the constraint no longer exists. The Company then allocates the transaction price to the performance obligation to which the consideration is related. Where a portion of the transaction price is received and allocated to continuing performance obligations under the terms of the arrangement, it is recorded as deferred revenue and recognized as revenue when (or as) the underlying performance obligation is satisfied. The Company’s contracts may contain one or multiple promises, including the license of IP and development services. The licensed IP is capable of being distinct from the other performance obligations identified in the contract and is distinct within the context of the contract, as upon transfer of the IP, the customer is able to use and benefit from it, and the customer could obtain the development services from other parties. The Company also considers the economic and regulatory characteristics of the licensed IP and other promises in the contract to determine if it is a distinct performance obligation. The Company considers if the IP is modified or enhanced by other performance obligations through the life of the agreement and whether the customer is contractually or practically required to use updated IP. The IP licensed by the Company has been determined to be functional IP. The IP is not modified during the license period and therefore, the Company recognizes revenues from any portion of the transaction price allocated to the licensed IP when the license is transferred to the customer and they can benefit from the right to use the IP. For the three-month period ended March 31, 2021, the Company recognized license revenue of $20.5 million, of which $20.0 million was recognized upon the achievement of the first commercial milestone pursuant to the 2017 Almirall out-license arrangement upon the launch of Klisyri in the U.S., and $0.5 million was recognized for an upfront fee upon transferring IP to the customer upon execution of the second amendment to the 2011 PharmaEssentia license agreement. Under the collaboration agreement between Axis Therapeutics and PharmaEssentia, the Company received $1.0 million, net of $0.3 million withholding tax, of upfront fees allocated to its performance obligation to deliver functional IP to the Customer. As of March 31, 2021, the Company had not satisfied this performance obligation by delivering the license with the data necessary for the customer to benefit from the right to use the IP and, therefore, the amount was recorded as deferred revenue. Other performance obligations included in most of the Company’s out-licensing agreements include performing development services to reach clinical and regulatory milestone events. The Company satisfies these performance obligations at a point-in-time, because the customer does not simultaneously receive and consume the benefits as the development occurs, the development does not create or enhance an asset controlled by the customer, and the development does not create an asset with no alternative use. The Company considers milestone payments to be variable consideration measured using the most likely amount method, as the entitlement to the consideration is contingent on the occurrence or nonoccurrence of future events. The Company allocates each variable milestone payment to the associated milestone performance obligation, as the variable payment relates directly to the Company’s efforts to satisfy the performance obligation and such allocation depicts the amount of consideration to which the Company expects to be entitled for satisfying the corresponding performance obligation. The Company re-evaluates the probability of achievement of such performance obligations and any related constraint and adjusts its estimate of the transaction price as appropriate. To date, no amounts have been constrained in the initial or subsequent assessments of the transaction price. The Company did not recognize revenue from other performance obligations included in the Company’s out-licensing agreements during the three month periods ended March 31, 2021 and 2020. Certain out-license agreements include performance obligations to manufacture and provide drug product in the future for commercial sale when the licensed product is approved. For the commercial, sales-based royalties, the consideration is predominantly related to the licensed IP and is contingent on the customer’s subsequent sales to another commercial customer. Consequently, the sales- or usage-based royalty exception would apply. Revenue will be recognized for the commercial, sales-based milestones as the underlying sales occur. The Company exercises significant judgment when identifying distinct performance obligations within its out-license arrangements, determining the transaction price, which often includes both fixed and variable considerations, and allocating the transaction price to the proper performance obligation. The Company did not use any other significant judgments related to out-licensing revenue during the . 2. Global Supply Chain Platform The Company’s Global Supply Chain Platform manufactures API for use internally in its research and development activities as well as its clinical studies, and for sale to pharmaceutical customers globally. The Company generates additional 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 U.S. 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. Upon the sale by the wholesaler to the end-user, the wholesaler will chargeback the difference, if any, between the original list price and price at which the product was sold to the end-user. The Company also offers cash discounts, which approximate 2.3% 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. Further, the Company offers contractual allowances, generally in the form of rebates or administrative fees, to certain wholesale customers, group purchasing organizations (“GPOs”), and end-user customers, consistent with pharmaceutical industry practices. Revenues are recorded net of provisions for variable consideration, including discounts, rebates, GPO allowances, price adjustments, returns, chargebacks, promotional programs and other sales allowances. Accruals for these provisions are presented in the consolidated financial statements as reductions in determining net sales and as a contra asset in accounts receivable, net (if settled via credit) and other current liabilities (if paid in cash). As of March 31, 2021, and December 31, 2020, the Company’s total provision for chargebacks and other deductions included as a reduction of accounts receivable totaled $17.3 million and $12.6 million, respectively. The Company’s total provision for chargebacks and other revenue deductions was $25.6 million, and $24.9 million for the three months ended March 31, 2021, and 2020, respectively. 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, 2021 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total United States $ 20,157 $ 5,229 $ 13,259 $ 38,645 China 8 197 — 205 Other foreign countries 500 1,675 — 2,175 Total revenue $ 20,665 $ 7,101 $ 13,259 $ 41,025 For the Three Months Ended March 31, 2020 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total China $ 28,308 $ 205 $ — $ 28,513 United States — 1,980 15,542 17,522 Other foreign countries 79 821 — 900 Total revenue $ 28,387 $ 3,006 $ 15,542 $ 46,935 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, 2021 December 31, 2020 (In Thousands) Accounts receivable, gross $ 46,935 $ 45,792 Chargebacks and other deductions (17,264 ) (12,552 ) Provision for credit losses (9,482 ) (9,637 ) Accounts receivable, net $ 20,189 $ 23,603 Deferred revenue 1,289 1,147 Total contract liabilities $ 1,289 $ 1,147 The following tables illustrate accounts receivable and contract asset balances by reportable segments. March 31, 2021 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total Accounts receivable, gross $ 9,167 $ 3,589 $ 34,179 $ 46,935 Chargebacks and other deductions — — (17,264 ) (17,264 ) Provision for credit losses (8,919 ) (138 ) (425 ) (9,482 ) Accounts receivable, net 248 3,451 16,490 20,189 December 31, 2020 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total Accounts receivable, gross $ 10,783 $ 4,074 $ 30,935 $ 45,792 Chargebacks and other deductions — (1 ) (12,551 ) (12,552 ) Provision for credit losses (8,919 ) (164 ) (554 ) (9,637 ) Accounts receivable, net $ 1,864 $ 3,909 $ 17,830 $ 23,603 As of March 31, 2021 and December 31, 2020, the deferred revenue balances There were no other material changes to contract balances during the three months ended March 31, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Future minimum payments under the non-cancelable operating leases consists of the following as of March 31, 2021 (in thousands): Year ending December 31: Minimum payments 2021 (remaining nine months) $ 2,577 2022 2,918 2023 2,096 2024 2,002 2025 1,472 Thereafter 478 $ 11,543 Legal Proceedings Following our receipt of the CRL in February 2021 and the subsequent decline of the market price of the Company’s common stock, two purported securities class action lawsuits were filed in the U.S. District Court for the Western District of New York on March 3, 2021 and March 22, 2021, respectively, against the Company and certain members of its management team seeking to recover damages for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaints generally allege that between August 7, 2019 and February 26, 2021 (the purported class period), the Company and the individual defendants made materially false and misleading statements regarding the Company's business in connection with the Company’s development of Oral Paclitaxel for the treatment of metastatic breast cancer and the likelihood of FDA approval, and that the plaintiffs suffered losses when the Company’s stock price dropped after its announcement on February 26, 2021 regarding receipt of the CRL. The complaints seek class certification, damages, fees, costs, and expenses. The defendants expect that these two lawsuits will be consolidated and a lead plaintiff appointed in the coming months. Additional similar lawsuits might be filed. The Company and the individual defendants believe that the claims in these lawsuits are without merit, and the Company has not recorded a liability related to this shareholder class action lawsuit as the risk of loss is remote. The Company and the individual defendants intend to vigorously defend against these claims but there can be no assurances as to the outcome. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. Subsequent Event On May 4, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Kuur Therapeutics, Inc., a Delaware corporation (“Kuur”). Kuur is a leading developer of off-the-shelf CAR-NKT cell immunotherapies for the treatment of solid and hematological malignancies. Pursuant to the terms of the Merger Agreement, the Company will pay $70.0 million upfront to Kuur shareholders and its former employees and directors, comprised primarily of equity in the Company’s common stock. Additionally, Kuur shareholders and its former employees and directors are eligible to receive up to $115.0 million of milestone payments, which may be paid, at the Company’s sole discretion, in either cash or additional common stock of the Company (or a combination of both). The Company believes the acquisition strategically combines its TCR program with the groundbreaking NKT cell platform to provide a solution that may address some of the known limitations associated with the first generation of cell therapy treatments focused on autologous CAR-T. Due to the recency of the Merger Agreement, the Company has not yet completed its assessment of the fair value of the assets acquired, the liabilities assumed and the contingent considerations. The Company will account for this in accordance with ASC 805, Business Combinations, and its evaluation the effect on its consolidated financial statements during the second quarter of 2021. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of 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, do not include all of the information the opinion of management, reflect all normal recurring adjustments necessary a fair of the results for the periods presented. These condensed consolidated financial statements reflect the accounts and operations of Athenex, Inc. and those of its subsidiaries in which Athenex, Inc. has a controlling financial interest. Intercompany transactions and balances have been eliminated Results of the Company’s operations for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the year ending December 31, 2021, or for any other future annual or interim period. These condensed consolidated 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, 2020, filed with the Securities and Exchange Commission (“SEC”) on March 1, 2021. |
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 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, measurement of acquired assets and assumed liabilities in business combinations, provision for credit losses, inventory reserves, deferred income taxes, the estimated useful life and recoverability of long-lived assets, and the valuation of stock-based awards and other items as appropriate. Actual results could differ from those estimates. |
Credit Losses | Credit Losses The Company estimates and records a provision for its expected credit losses related to its financial instruments, including its trade receivables and contract assets recorded under Financial Accounting Standards Board (“FASB”) ASC 606, Revenue from Contracts with Customers (“Topic 606”). The Company considers historical collection rates, current financial status of its customers, macroeconomic factors, and other industry-specific factors when evaluating for current expected credit losses. Forward-looking information is also considered in the evaluation of current expected credit losses. However, because of the short time to the expected receipt of accounts receivable and contract assets, the Company believes that the carrying value, net of excepted losses, approximates fair value and therefore, relies more on historical and current analysis of such financial instruments. |
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, restricted cash, and short-term investments. The Company deposits its cash equivalents in interest-bearing money market accounts and certificates of deposit, 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, and research and development facility in China, and therefore is subject to foreign currency fluctuation and regulatory uncertainties. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following (in thousands): March 31, 2021 December 31, 2020 Raw materials and purchased parts $ 3,054 $ 6,498 Work in progress 1,728 776 Finished goods 21,542 21,572 Total inventories $ 26,324 $ 28,846 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 Cost/Fair Value Accumulated Amortization Impairments Net Amortizable intangible assets: Licenses $ 12,641 $ 5,745 $ — $ 6,896 Polymed customer list 1,593 1,482 — 111 Polymed technology 3,712 1,754 — 1,958 Indefinite-lived intangible assets: CDE in-process research and development (IPR&D) 728 — — 728 Effect of currency translation adjustment (211 ) — — (211 ) Total intangible assets, net $ 18,463 $ 8,981 $ — $ 9,482 December 31, 2020 Cost/Fair Value Accumulated Amortization Impairments Net Amortizable intangible assets Licenses $ 12,641 $ 5,157 $ — $ 7,484 Polymed customer list 1,593 1,418 — 175 Polymed technology 3,712 1,685 — 2,027 Indefinite-lived intangible assets: CDE in-process research and development (IPR&D) 728 — — 728 Effect of currency translation adjustment (196 ) — — (196 ) Total intangibles, net $ 18,478 $ 8,260 $ — $ 10,218 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 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 $ 5,497 $ 5,497 $ — $ — Short-term investments - certificates of deposit 1,000 — 1,000 — Short-term investments - commercial paper 22,548 — 22,548 — Financial assets included within short-term investments Short-term investments - certificates of deposit 22,769 — 22,769 — Short-term investments - U.S. government bonds 15,000 — 15,000 — Short-term investments - commercial paper 85,185 — 85,185 — Available-for-sale investment 232 232 — — Total assets $ 152,231 $ 5,729 $ 146,502 $ — Fair Value Measurements at December 31, 2020 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 $ 5,615 $ 5,615 $ — $ — Short-term investments - certificates of deposit 4,070 — 4,070 — Short-term investments - U.S. government bonds 5,000 — 5,000 — Short-term investments - commercial paper 34,860 — 34,860 — Financial assets included within short-term investments Short-term investments - certificates of deposit 20,696 — 20,696 — Short-term investments - U.S. government bonds 14,998 — 14,998 — Short-term investments - commercial paper 102,715 — 102,715 — Available-for-sale investment 227 227 — — Total assets $ 188,181 $ 5,842 $ 182,339 $ — |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Payables And Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consist of the following (in thousands): March 31, December 31, 2021 2020 Accrued wages and benefits $ 7,798 $ 6,720 Accrued selling fees, rebates, and royalties 4,388 9,046 Accrued operating expenses 3,804 3,222 Accrued construction costs 3,421 4,104 Accrued inventory purchases 2,397 3,714 Accrued clinical expenses 2,073 2,949 Accrued tax withholdings 1,863 1,948 Accrued costs for product launch 1,415 1,474 Deferred revenue 1,289 1,147 Accrued R&D licensing fees 266 366 Accrued interest — 3,583 Total accrued expenses $ 28,714 $ 38,273 |
Debt and Lease Obligations (Tab
Debt and Lease Obligations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt And Lease Obligations [Abstract] | |
Schedule of Debt | The Company’s debt as of March 31, 2021 and December 31, 2020, consists of the following (in thousands): March 31, December 31, 2021 2020 Current portion of mortgage $ 729 $ 731 Current portion of bank loan 761 764 Current portion of senior secured loan 70 70 Current portion of finance lease obligations 410 445 Current portion of operating lease obligations 3,161 3,185 Long-term portion of finance lease obligations 474 537 Long-term portion of operating lease obligations 5,832 6,355 Chongqing Maliu credit agreement 7,614 7,641 Senior secured loan, net of debt discount and financing fees of $10,822 and $11,601 respectively 139,178 138,399 Total $ 158,229 $ 158,127 |
Summary of Components of Lease Expense | The components of lease expense are as follows (in thousands): Three Months Ended March 31, 2021 2020 Operating lease cost 746 $ 755 Finance lease cost: Amortization of assets 75 34 Interest on lease liabilities 24 6 Total net lease cost $ 845 $ 795 |
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, 2021 December 31, 2020 Finance leases: Property and equipment, at cost $ 1,535 $ 1,535 Accumulated amortization, net (422 ) (347 ) Property and equipment, net $ 1,113 $ 1,188 Current obligations of finance leases $ 410 $ 445 Long-term portion of finance leases 474 537 Total finance lease obligations $ 884 $ 982 Weighted average remaining lease term (in years): Operating leases 3.96 4.23 Finance leases 3.06 3.40 Weighted average discount rate: Operating leases 12.8 % 12.8 % Finance leases 10.8 % 10.4 % |
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, 2021 Three Months Ended March 31, 2020 Cash paid for amount included in the measurements of lease liabilities: Operating cash flows from operating leases $ (979 ) $ (820 ) Operating cash flows from finance leases (24 ) (6 ) Financing cash flows from finance leases (98 ) (47 ) ROU assets derecognized from modification of operating lease obligations — (468 ) ROU assets recognized in exchange for operating lease obligations $ — $ 353 |
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 2021 (remaining nine months) $ 2,577 $ 351 2022 2,918 275 2023 2,096 248 2024 2,002 157 2025 1,472 — Thereafter 478 — Total lease payments 11,543 1,031 Less: Imputed interest (2,550 ) (147 ) Total lease obligations 8,993 884 Less: Current obligations (3,161 ) (410 ) Long-term lease obligations $ 5,832 $ 474 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 (aggregate intrinsic value in thousands): Stock Options Weighted- Average Exercise price Weighted- Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2020 12,496,888 $ 9.26 5.42 $ 22,463 Granted 20,000 11.90 — — Exercised (119,425 ) 7.10 — — Forfeited and expired (32,830 ) 12.92 — — Outstanding at March 31, 2021 12,364,633 $ 9.28 5.20 $ — Vested and exercisable at March 31, 2021 9,504,028 $ 8.21 4.28 $ — |
Schedule of Weighted-Average Assumptions Used as Inputs to Black-Scholes Option Pricing 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 several 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 March 31, 2021 2020 Weighted average grant date fair value $ 7.40 $ 7.32 Expected dividend yield — % — % Expected stock price volatility 68 % 67 % Risk-free interest rate 1.37 % 0.75 % Expected life of options (in years) 6.3 5.0 |
Schedule of Stock-Based Compensation Cost | The components of stock-based compensation and the amounts recorded within cost of sales, 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, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 2020 Stock options $ 2,205 $ 1,864 Restricted stock expense 29 397 Employee stock purchase plan 46 70 Total stock-based compensation expense $ 2,280 $ 2,331 Cost of sales $ 56 $ 54 Research and development expenses 601 946 Selling, general, and administrative expenses 1,623 1,331 Total stock-based compensation expense $ 2,280 $ 2,331 |
Net Loss per Share Attributab_2
Net Loss per Share Attributable to Athenex, Inc. Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 2020 Stock options and other common stock equivalents 13,899,191 11,347,475 Unvested restricted shares 22,500 105,000 Total potential dilutive shares 13,921,691 11,452,475 |
Business Segment, Geographic,_2
Business Segment, Geographic, and Concentration Risk Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Segments | Segment information is as follows (in thousands): Three Months Ended March 31, 2021 2020 Total revenue: Oncology Innovation Platform $ 20,665 $ 28,387 Global Supply Chain Platform 8,207 3,714 Commercial Platform 13,259 15,542 Total revenue for reportable segments 42,131 47,643 Intersegment revenue (1,106 ) (708 ) Total consolidated revenue $ 41,025 $ 46,935 |
Summary of Revenue by Product Group | Three Months Ended March 31, 2021 2020 Total revenue by product group: License fees $ 20,500 $ 28,381 Commercial product sales 18,061 17,502 API sales 1,868 1,022 Contract manufacturing revenue 430 23 Other revenue 166 7 Total consolidated revenue $ 41,025 $ 46,935 |
Summary of Segment Information | Three Months Ended March 31, 2021 2020 Net loss attributable to Athenex, Inc.: Oncology Innovation Platform $ (5,441 ) $ (958 ) Global Supply Chain Platform (3,682 ) (5,986 ) Commercial Platform (15,927 ) (12,485 ) Total consolidated net loss attributable to Athenex, Inc. $ (25,050 ) $ (19,429 ) |
Summary of Depreciation, Amortization and Assets by Segment | Three Months Ended March 31, 2021 2020 Total depreciation and amortization: Oncology Innovation Platform $ 207 $ 175 Global Supply Chain Platform 523 496 Commercial Platform 544 415 Total consolidated depreciation and amortization $ 1,274 $ 1,086 March 31, December 31, 2021 2020 Total assets: Oncology Innovation Platform $ 199,741 $ 234,153 Global Supply Chain Platform 101,621 99,087 Commercial Platform 48,294 51,089 Total consolidated assets $ 349,656 $ 384,329 |
Summary of Revenue by Geographical Segment | Three Months Ended March 31, 2021 2020 Total revenue: United States $ 38,645 $ 17,522 China 205 28,513 Other foreign countries 2,175 900 Total consolidated revenue $ 41,025 $ 46,935 |
Summary of Property and Equipment by Geographical Segment | March 31, December 31, 2021 2020 Total property and equipment, net: United States $ 20,902 $ 15,511 China 20,876 18,877 Total consolidated property and equipment, net $ 41,778 $ 34,388 |
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, 2021 2020 Percentage of total revenue by customer: Customer A 49 % 0 % Customer B 11 % 9 % Customer C 9 % 11 % Customer D 9 % 7 % Customer E 0 % 60 % March 31, December 31, 2021 2020 Percentage of total accounts receivable by customer: Customer A 36 % 33 % Customer B 30 % 24 % Customer C 10 % 16 % Customer D 0 % 6 % |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Company's Revenue for Reportable Segment by Country Based on Locations of Customer | 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, 2021 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total United States $ 20,157 $ 5,229 $ 13,259 $ 38,645 China 8 197 — 205 Other foreign countries 500 1,675 — 2,175 Total revenue $ 20,665 $ 7,101 $ 13,259 $ 41,025 For the Three Months Ended March 31, 2020 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total China $ 28,308 $ 205 $ — $ 28,513 United States — 1,980 15,542 17,522 Other foreign countries 79 821 — 900 Total revenue $ 28,387 $ 3,006 $ 15,542 $ 46,935 |
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, 2021 December 31, 2020 (In Thousands) Accounts receivable, gross $ 46,935 $ 45,792 Chargebacks and other deductions (17,264 ) (12,552 ) Provision for credit losses (9,482 ) (9,637 ) Accounts receivable, net $ 20,189 $ 23,603 Deferred revenue 1,289 1,147 Total contract liabilities $ 1,289 $ 1,147 |
Summary of Accounts Receivable and Contract Assets Balances by Reportable Segments | The following tables illustrate accounts receivable and contract asset balances by reportable segments. March 31, 2021 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total Accounts receivable, gross $ 9,167 $ 3,589 $ 34,179 $ 46,935 Chargebacks and other deductions — — (17,264 ) (17,264 ) Provision for credit losses (8,919 ) (138 ) (425 ) (9,482 ) Accounts receivable, net 248 3,451 16,490 20,189 December 31, 2020 (In Thousands) Oncology Innovation Platform Global Supply Chain Platform Commercial Platform Consolidated Total Accounts receivable, gross $ 10,783 $ 4,074 $ 30,935 $ 45,792 Chargebacks and other deductions — (1 ) (12,551 ) (12,552 ) Provision for credit losses (8,919 ) (164 ) (554 ) (9,637 ) Accounts receivable, net $ 1,864 $ 3,909 $ 17,830 $ 23,603 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments Under Non-Cancelable Leases | Future minimum payments under the non-cancelable operating leases consists of the following as of March 31, 2021 (in thousands): Year ending December 31: Minimum payments 2021 (remaining nine months) $ 2,577 2022 2,918 2023 2,096 2024 2,002 2025 1,472 Thereafter 478 $ 11,543 |
Company and Nature of Business
Company and Nature of Business - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Accumulated deficit | $ 738,694 | $ 713,644 |
Cash and cash equivalents | 47,980 | 69,587 |
Restricted cash | 16,500 | |
Short-term investments | $ 123,186 | $ 138,636 |
Restricted Cash - Additional In
Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Restricted Cash [Line Items] | ||
Restricted cash | $ 16,500 | $ 16,500 |
Senior Credit Agreement | ||
Restricted Cash [Line Items] | ||
Restricted cash | $ 16,500 | $ 16,500 |
Period of interest on outstanding loans to be maintained in debt service reserve account | 12 months |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 3,054 | $ 6,498 |
Work in progress | 1,728 | 776 |
Finished goods | 21,542 | 21,572 |
Total inventories | $ 26,324 | $ 28,846 |
Intangible Assets, Net - Summar
Intangible Assets, Net - Summary of Identifiable Intangible Asset, Net (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, Accumulated Amortization | $ 8,981,000 | $ 8,260,000 |
Intangible asset, Effect of currency translation adjustment | (211,000) | (196,000) |
Intangible assets Cost/Fair Value | 18,463,000 | 18,478,000 |
Intangible assets, net | 9,482,000 | 10,218,000 |
CDE In- Process Research and Development | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible asset, Cost/Fair Value | 728,000 | 728,000 |
Indefinite-lived intangible asset, Net | 728,000 | 728,000 |
Intangible assets Impairments | 0 | |
Licenses | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, Cost/Fair Value | 12,641,000 | 12,641,000 |
Finite-lived intangible asset, Accumulated Amortization | 5,745,000 | 5,157,000 |
Finite-lived intangible asset, Net | 6,896,000 | 7,484,000 |
Polymed Customer List | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, Cost/Fair Value | 1,593,000 | 1,593,000 |
Finite-lived intangible asset, Accumulated Amortization | 1,482,000 | 1,418,000 |
Finite-lived intangible asset, Net | 111,000 | 175,000 |
Polymed Technology | ||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset, Cost/Fair Value | 3,712,000 | 3,712,000 |
Finite-lived intangible asset, Accumulated Amortization | 1,754,000 | 1,685,000 |
Finite-lived intangible asset, Net | $ 1,958,000 | $ 2,027,000 |
Intangible Assets, Net - Additi
Intangible Assets, Net - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021USD ($)Reporting_Unit | Mar. 31, 2020USD ($) | |
Finite Lived Intangible Assets [Line Items] | ||
Weighted-average useful life of intangible assets | 7 years 1 month 6 days | |
Amortization expense of intangible assets | $ 600,000 | $ 500,000 |
Number of reporting units | Reporting_Unit | 2 | |
CDE In- Process Research and Development | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets Impairments | $ 0 | |
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 | |
Hanmi Pharmaceuticals Co. Ltd. | Licensing Agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 400,000 | |
Acquired finite-lived intangible assets, amortization period | 12 years 9 months | |
Gland Pharma Limited | Licensing Agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 4,400,000 | |
Acquired finite-lived intangible assets, amortization period | 5 years | |
MAIA Pharmaceuticals, Inc | Licensing Agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 4,000,000 | |
Acquired finite-lived intangible assets, amortization period | 7 years | |
Ingenus Pharmaceuticals, LLC | Licensing Agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 3,000,000 | |
Ingenus Pharmaceuticals, LLC | Licensing Agreements Amortized Over a Period of 5 years | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 2,000,000 | |
Acquired finite-lived intangible assets, amortization period | 5 years | |
Ingenus Pharmaceuticals, LLC | Licenses of Other Specialty Products | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 800,000 | |
Ingenus Pharmaceuticals, LLC | Licensing Agreements Amortized Over a Period of 3 years | ||
Finite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets acquired | $ 1,000,000 | |
Acquired finite-lived intangible assets, amortization period | 3 years |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
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, 2021 | Dec. 31, 2020 |
Assets: | ||
Total assets | $ 152,231 | $ 188,181 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Total assets | 5,729 | 5,842 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Total assets | 146,502 | 182,339 |
Money Market Funds | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 5,497 | 5,615 |
Money Market Funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 5,497 | 5,615 |
Short-term Investments - Certificates of Deposits | Short-term Investments | ||
Assets: | ||
Total assets | 22,769 | 20,696 |
Short-term Investments - Certificates of Deposits | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 1,000 | 4,070 |
Short-term Investments - Certificates of Deposits | Significant Other Observable Inputs (Level 2) | Short-term Investments | ||
Assets: | ||
Total assets | 22,769 | 20,696 |
Short-term Investments - Certificates of Deposits | Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 1,000 | 4,070 |
Short-term Investments - Commercial Paper | Short-term Investments | ||
Assets: | ||
Total assets | 85,185 | 102,715 |
Short-term Investments - Commercial Paper | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 22,548 | 34,860 |
Short-term Investments - Commercial Paper | Significant Other Observable Inputs (Level 2) | Short-term Investments | ||
Assets: | ||
Total assets | 85,185 | 102,715 |
Short-term Investments - Commercial Paper | Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 22,548 | 34,860 |
U.S. Government Bonds | Short-term Investments | ||
Assets: | ||
Total assets | 15,000 | 14,998 |
U.S. Government Bonds | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 5,000 | |
U.S. Government Bonds | Significant Other Observable Inputs (Level 2) | Short-term Investments | ||
Assets: | ||
Total assets | 15,000 | 14,998 |
U.S. Government Bonds | Significant Other Observable Inputs (Level 2) | Cash and Cash Equivalents | ||
Assets: | ||
Total assets | 5,000 | |
Available-for-Sale Investment | Short-term Investments | ||
Assets: | ||
Total assets | 232 | 227 |
Available-for-Sale Investment | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term Investments | ||
Assets: | ||
Total assets | $ 232 | $ 227 |
Accrued Expenses - Schedule of
Accrued Expenses - Schedule of Accrued Expenses (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Accrued wages and benefits | $ 7,798 | $ 6,720 |
Accrued selling fees, rebates, and royalties | 4,388 | 9,046 |
Accrued operating expenses | 3,804 | 3,222 |
Accrued construction costs | 3,421 | 4,104 |
Accrued inventory purchases | 2,397 | 3,714 |
Accrued clinical expenses | 2,073 | 2,949 |
Accrued tax withholdings | 1,863 | 1,948 |
Accrued costs for product launch | 1,415 | 1,474 |
Deferred revenue | 1,289 | 1,147 |
Accrued R&D licensing fees | 266 | 366 |
Accrued interest | 3,583 | |
Total accrued expenses | $ 28,714 | $ 38,273 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Detail) - Dunkirk, NY - Manufacturing Facility $ in Millions | Mar. 31, 2021USD ($) |
Accrued Liabilities [Line Items] | |
Accrued construction cost expected to be funded additional amount paid | $ 0.4 |
Prepaid Expenses and Other Current Assets | |
Accrued Liabilities [Line Items] | |
Accrued construction costs expected to be funded | $ 3.8 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax [Line Items] | ||
Income tax expense (benefit) | $ 154,000 | $ 2,881,000 |
Federal | ||
Income Tax [Line Items] | ||
Income tax expense (benefit) | 0 | |
Taiwan | ||
Income Tax [Line Items] | ||
Income tax expense (benefit) | $ 100,000 |
Debt and Lease Obligations - Su
Debt and Lease Obligations - Summary of Balances of Debt (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Current portion of mortgage | $ 729 | $ 731 |
Current portion of bank loan | 761 | 764 |
Current portion of senior secured loan | 70 | 70 |
Current portion of finance lease obligations | 410 | 445 |
Current portion of operating lease obligations | 3,161 | 3,185 |
Long-term portion of finance lease obligations | 474 | 537 |
Long-term portion of operating lease obligations | 5,832 | 6,355 |
Total | 158,229 | 158,127 |
Chongqing Maliu Credit Agreement | ||
Debt Instrument [Line Items] | ||
Chongqing Maliu credit agreement | 7,614 | 7,641 |
Senior Secured Loan | ||
Debt Instrument [Line Items] | ||
Senior secured loan, net of debt discount and financing fees of $10,822 and $11,601 respectively | $ 139,178 | $ 138,399 |
Debt and Lease Obligations - _2
Debt and Lease Obligations - Summary of Balances of Debt (Parenthetical) (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Senior Secured Loan | ||
Debt Instrument [Line Items] | ||
Debt discount and financing fees | $ 10,822 | $ 11,601 |
Debt and Lease Obligations - Ad
Debt and Lease Obligations - Additional Information (Detail) ¥ in Millions | Jan. 05, 2021m²¥ / SquareMeter | Sep. 17, 2020 | Aug. 04, 2020USD ($) | Jun. 19, 2020USD ($)Tranche | May 15, 2020USD ($) | Mar. 31, 2021USD ($) | Jun. 30, 2019CNY (¥) | Aug. 04, 2026USD ($) | Sep. 30, 2024USD ($) | Dec. 31, 2020USD ($) | May 15, 2020CNY (¥) |
Debt Instrument [Line Items] | |||||||||||
Mortgage payment extended date | Dec. 31, 2021 | ||||||||||
Chinese Subsidiaries | API Facility or Sintaho API Facility | Chongqing International Biological City Development & Investment Co., Ltd | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Area of rent free lease | m² | 34,517 | ||||||||||
Lease term | 10 years | ||||||||||
Renewal lease term | 10 years | ||||||||||
Payment of monthly rent per square meter | ¥ / SquareMeter | 5 | ||||||||||
Chongqing Maliu Riverside Development and Investment Co., LTD ("CQ") | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility percentage of periodic payment year one | 20.00% | ||||||||||
Line of credit facility percentage of periodic payment year two | 30.00% | ||||||||||
Line of credit frequency of payments | The Company is required to repay the principal amount with accrued interest within three years after the plant receives the cGMP certification, with 20% of the total loan with accrued interest is due within the first twelve months following receiving the certification, 30% of the total loan with accrued interest due within twenty-four months, and the remaining balance with accrued interest due within thirty-six months. | ||||||||||
Line of credit due | $ 7,614,000 | $ 7,641,000 | |||||||||
China | Chongqing Maliu Riverside Development and Investment Co., LTD ("CQ") | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, maximum borrowing capacity | ¥ 50 | 7,700,000 | |||||||||
Long-term line of credit, interest rate | 4.75% | ||||||||||
Senior Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Number of tranches | Tranche | 5 | ||||||||||
Debt maturity date | Jun. 19, 2026 | ||||||||||
Debt instrument, maximum borrowing capacity | $ 225,000,000 | ||||||||||
Interest rate terms | The loan bears interest at a fixed annual rate of 11.0%. The Company allocated the proceeds of the drawn tranches between liability and equity components and the fair value of such equity components, along with the direct costs related to the issuance of the debt were recorded as an offset to long-term debt on the consolidated balance sheets. The debt discount and financing fees are amortized on a straight-line basis, which approximates the effective interest method, over the remaining maturity of the Senior Credit Agreement. The effective interest rate of Tranches A, B and D, including the amortization of debt discount and financing fees amounts to 13.3% annually. The Company is required to make quarterly interest-only payments until June 19, 2022, after which the Company is required to make quarterly amortizing payments, with the remaining balance of the principal plus accrued and unpaid interest due at maturity. | ||||||||||
Bearing interest at a fixed annual rate | 11.00% | ||||||||||
Frequency of payment | quarterly | ||||||||||
Commitment fee percentage will be paid | 0.60% | ||||||||||
Exit fee liability | $ 3,000,000 | $ 3,000,000 | |||||||||
Minimum liquidity amount in cash or permitted cash equivalent investments amount | $ 20,000,000 | ||||||||||
Line of credit from first step up date until maturity | 25,000,000 | ||||||||||
Line of credit facility second step up date outstanding amount | 225,000,000 | ||||||||||
Line of credit from second step up date until maturity | $ 30,000,000 | ||||||||||
Minimum revenue percentage | 50 | ||||||||||
Senior Credit Agreement | Minimum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility first step up date outstanding amount | $ 150,000,000 | ||||||||||
Senior Credit Agreement | Maximum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Covenant leverage ratio | 4.50 | ||||||||||
Senior Credit Agreement | Tranche A,B and D | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, amount drawn | 150,000,000 | ||||||||||
Amortization of debt discount financing fees percentage | 13.30% | ||||||||||
Senior Credit Agreement | Tranche C 90 Days After Closing Date Through June 20, 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Available borrowing capacity upon satisfaction of regulatory and commercial milestones | $ 25,000,000 | ||||||||||
Senior Credit Agreement | Tranche E 90 Days After Closing Date Through June 19, 2023 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Available borrowing capacity upon satisfaction of regulatory and commercial milestones | $ 50,000,000 | ||||||||||
Revenue Interest Financing Agreement | Sagard Healthcare Royalty Partners, LP | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Licenses revenue | $ 50,000,000 | ||||||||||
Payment percentage of world-wide net sales | 5.00% | ||||||||||
Percentage of product payment | 170.00% | ||||||||||
Payments due to related parties | $ 85,000,000 | ||||||||||
Percentage of internal rate of return | 6.00% | ||||||||||
Revenue Interest Financing Agreement | Sagard Healthcare Royalty Partners, LP | Scenario Forecast | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Payments due to related parties | $ 50,000,000 | $ 20,000,000 | |||||||||
Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt maturity date | May 14, 2021 | ||||||||||
Debt instrument, maximum borrowing capacity | $ 800,000 | ||||||||||
Bearing interest at a fixed annual rate | 4.35% | 4.35% | |||||||||
Debt instrument, amount drawn | $ 800,000 | ||||||||||
Credit Agreement | China | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, maximum borrowing capacity | ¥ | ¥ 5 |
Debt and Lease Obligations - _3
Debt and Lease Obligations - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt And Lease Obligations [Abstract] | ||
Operating lease cost | $ 746 | $ 755 |
Finance lease cost: | ||
Amortization of assets | 75 | 34 |
Interest on lease liabilities | 24 | 6 |
Total net lease cost | $ 845 | $ 795 |
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, 2021 | Dec. 31, 2020 |
Finance leases: | ||
Property and equipment, at cost | $ 1,535 | $ 1,535 |
Accumulated amortization, net | (422) | (347) |
Property and equipment, net | 1,113 | $ 1,188 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | |
Current obligations of finance leases | 410 | $ 445 |
Long-term portion of finance leases | 474 | 537 |
Total finance lease obligations | $ 884 | $ 982 |
Weighted average remaining lease term (in years): | ||
Operating leases | 3 years 11 months 15 days | 4 years 2 months 23 days |
Finance leases | 3 years 21 days | 3 years 4 months 24 days |
Weighted average discount rate: | ||
Operating leases | 12.80% | 12.80% |
Finance leases | 10.80% | 10.40% |
Debt and Lease Obligations - _4
Debt and Lease Obligations - Schedule of Supplemental Cash Flow Information Related to Leases (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amount included in the measurements of lease liabilities: | ||
Operating cash flows from operating leases | $ (979) | $ (820) |
Operating cash flows from finance leases | (24) | (6) |
Financing cash flows from finance leases | $ (98) | (47) |
ROU assets derecognized from modification of operating lease obligations | (468) | |
ROU assets recognized in exchange for operating lease obligations | $ 353 |
Debt and Lease Obligations - _5
Debt and Lease Obligations - Schedule of Future Minimum Payments and Maturities of Leases (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
2021 (remaining nine months) | $ 2,577 | |
2022 | 2,918 | |
2023 | 2,096 | |
2024 | 2,002 | |
2025 | 1,472 | |
Thereafter | 478 | |
Total lease payments | 11,543 | |
Less: Imputed interest | (2,550) | |
Total lease obligations | 8,993 | |
Less: Current obligations | (3,161) | $ (3,185) |
Long-term lease obligations | 5,832 | 6,355 |
Finance Leases | ||
2021 (remaining nine months) | 351 | |
2022 | 275 | |
2023 | 248 | |
2024 | 157 | |
Total lease payments | 1,031 | |
Less: Imputed interest | (147) | |
Total finance lease obligations | 884 | 982 |
Less: Current obligations | (410) | (445) |
Long-term portion of finance lease obligations | $ 474 | $ 537 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018Agreement | Mar. 31, 2021USD ($)Executiveshares | Dec. 31, 2020USD ($)shares | Mar. 31, 2020USD ($) | Dec. 31, 2020shares | |
Pharma Essentia | ||||||
Related Party Transaction [Line Items] | ||||||
Milestone fee earned | $ 500,000 | |||||
Funds paid to related party | $ 0 | $ 0 | ||||
Nuwagen Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership interest of newly formed entity | 10.00% | |||||
Avalon BioMedical | ||||||
Related Party Transaction [Line Items] | ||||||
Common stock shares held by related parties | shares | 786,061 | 786,061 | 786,061 | |||
Percentage of common stock issued shares | 1.00% | 1.00% | ||||
Avalon BioMedical | Nuwagen Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Percentage of ownership interest | 90.00% | |||||
Avalon BioMedical | In-licensing Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Number of in-licensing agreements | Agreement | 2 | |||||
Milestone fee paid | $ 0 | 0 | ||||
Axis Therapeutics Limited | ||||||
Related Party Transaction [Line Items] | ||||||
Licenses revenue | $ 1,000,000 | |||||
License fee received withholding tax | $ 300,000 | |||||
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 | $ 500,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 26, 2021 | May 23, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Jun. 14, 2017 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 2,280 | $ 2,331 | |||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | 2,205 | 1,864 | |||
Unrecognized compensation cost related to non-vested stock options expected to be recognized | $ 16,500 | ||||
Unrecognized compensation expense related to non-vested stock options, weighted-average period of recognition | 1 year 9 months 18 days | ||||
Total intrinsic value of stock options exercised | $ 200 | 800 | |||
Restricted Stock Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 29 | $ 397 | |||
Unrecognized compensation expense related to non-vested stock options, weighted-average period of recognition | 1 year 4 months 24 days | ||||
Shares granted to employees | 0 | 0 | |||
Unrecognized cost related to non-vested restricted stock awards | $ 300 | ||||
Maximum | Restricted Stock Awards | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 100 | ||||
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 Omnibus Incentive Plan | Subsequent Event | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Increase in stock available for issuance under plan | 5,000,000 | ||||
2017 Omnibus Incentive Plan | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Increase in stock available for issuance under plan | 3,500,000 | ||||
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 | $ 100 | |||
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, 2020 to May 31, 2021. The Company expects to offer six-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, 2021 | Dec. 31, 2020 | |
Stock Options | ||
Stock Options, Outstanding Beginning Balance | 12,496,888 | |
Stock Options, Granted | 20,000 | |
Stock Options, Exercised | (119,425) | |
Stock Options, Forfeited and expired | (32,830) | |
Stock Options, Outstanding Ending Balance | 12,364,633 | 12,496,888 |
Stock Options, Vested and exercisable | 9,504,028 | |
Weighted Average Exercise Price | ||
Weighted Average Exercise Price, Outstanding Beginning Balance | $ 9.26 | |
Weighted Average Exercise Price, Granted | 11.90 | |
Weighted Average Exercise Price, Exercised | 7.10 | |
Weighted Average Exercise Price, Forfeited and expired | 12.92 | |
Weighted Average Exercise Price, Outstanding Ending Balance | 9.28 | $ 9.26 |
Weighted Average Exercise Price, Vested and exercisable | $ 8.21 | |
Weighted Average Remaining Contractual Term | ||
Weighted Average Remaining Contractual Term, Outstanding | 5 years 2 months 12 days | 5 years 5 months 1 day |
Weighted Average Remaining Contractual Term, Vested and exercisable | 4 years 3 months 10 days | |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value, Outstanding | $ 22,463 |
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, 2021 | Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Weighted average grant date fair value | $ 7.40 | $ 7.32 |
Expected dividend yield | 0.00% | 0.00% |
Expected stock price volatility | 68.00% | 67.00% |
Risk-free interest rate | 1.37% | 0.75% |
Expected life of options (in years) | 6 years 3 months 18 days | 5 years |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Stock-Based Compensation Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | $ 2,280 | $ 2,331 |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | 2,205 | 1,864 |
Restricted Stock Expense | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | 29 | 397 |
Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | 46 | 70 |
Cost of Sales | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | 56 | 54 |
Research and Development Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | 601 | 946 |
Selling, General, and Administrative Expenses | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense recognized | $ 1,623 | $ 1,331 |
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, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 13,921,691 | 11,452,475 |
Stock Options and Other Common Stock Equivalents | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 13,899,191 | 11,347,475 |
Unvested Restricted Common Shares | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Total potential dilutive shares | 22,500 | 105,000 |
Business Segment, Geographic,_3
Business Segment, Geographic, and Concentration Risk Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)Segment | Mar. 31, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | Segment | 3 | |
Total revenue | $ 41,025 | $ 46,935 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ (1,106) | $ (708) |
Segments Deriving Revenue | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segments | Segment | 2 | |
Commercial Platform | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 600 | |
Oncology Innovation Platform | Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 500 |
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, 2021 | Mar. 31, 2020 | |
Total revenue: | ||
Total consolidated revenue | $ 41,025 | $ 46,935 |
Operating Segments | ||
Total revenue: | ||
Total consolidated revenue | 42,131 | 47,643 |
Operating Segments | Oncology Innovation Platform | ||
Total revenue: | ||
Total consolidated revenue | 20,665 | 28,387 |
Operating Segments | Global Supply Chain Platform | ||
Total revenue: | ||
Total consolidated revenue | 8,207 | 3,714 |
Operating Segments | Commercial Platform | ||
Total revenue: | ||
Total consolidated revenue | 13,259 | 15,542 |
Intersegment Eliminations | ||
Total revenue: | ||
Total consolidated revenue | (1,106) | $ (708) |
Intersegment Eliminations | Oncology Innovation Platform | ||
Total revenue: | ||
Total consolidated revenue | 500 | |
Intersegment Eliminations | Commercial Platform | ||
Total revenue: | ||
Total consolidated revenue | $ 600 |
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, 2021 | Mar. 31, 2020 | |
Total revenue by product group: | ||
Total consolidated revenue | $ 41,025 | $ 46,935 |
License Fees | ||
Total revenue by product group: | ||
Total consolidated revenue | 20,500 | 28,381 |
Commercial Product Sales | ||
Total revenue by product group: | ||
Total consolidated revenue | 18,061 | 17,502 |
API Sales | ||
Total revenue by product group: | ||
Total consolidated revenue | 1,868 | 1,022 |
Contract Manufacturing Revenue | ||
Total revenue by product group: | ||
Total consolidated revenue | 430 | 23 |
Other Revenue | ||
Total revenue by product group: | ||
Total consolidated revenue | $ 166 | $ 7 |
Business Segment, Geographic,_6
Business Segment, Geographic, and Concentration Risk Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net loss attributable to Athenex, Inc.: | ||
Total consolidated net loss attributable to Athenex, Inc. | $ (25,050) | $ (19,429) |
Oncology Innovation Platform | ||
Net loss attributable to Athenex, Inc.: | ||
Total consolidated net loss attributable to Athenex, Inc. | (5,441) | (958) |
Global Supply Chain Platform | ||
Net loss attributable to Athenex, Inc.: | ||
Total consolidated net loss attributable to Athenex, Inc. | (3,682) | (5,986) |
Commercial Platform | ||
Net loss attributable to Athenex, Inc.: | ||
Total consolidated net loss attributable to Athenex, Inc. | $ (15,927) | $ (12,485) |
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, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Total depreciation and amortization: | |||
Total consolidated depreciation and amortization | $ 1,274 | $ 1,086 | |
Total assets: | |||
Total consolidated assets | 349,656 | $ 384,329 | |
Oncology Innovation Platform | |||
Total depreciation and amortization: | |||
Total consolidated depreciation and amortization | 207 | 175 | |
Total assets: | |||
Total consolidated assets | 199,741 | 234,153 | |
Global Supply Chain Platform | |||
Total depreciation and amortization: | |||
Total consolidated depreciation and amortization | 523 | 496 | |
Total assets: | |||
Total consolidated assets | 101,621 | 99,087 | |
Commercial Platform | |||
Total depreciation and amortization: | |||
Total consolidated depreciation and amortization | 544 | $ 415 | |
Total assets: | |||
Total consolidated assets | $ 48,294 | $ 51,089 |
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, 2021 | Mar. 31, 2020 | |
Total revenue: | ||
Total consolidated revenue | $ 41,025 | $ 46,935 |
United States | ||
Total revenue: | ||
Total consolidated revenue | 38,645 | 17,522 |
China | ||
Total revenue: | ||
Total consolidated revenue | 205 | 28,513 |
Other Foreign Countries | ||
Total revenue: | ||
Total consolidated revenue | $ 2,175 | $ 900 |
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, 2021 | Dec. 31, 2020 |
Total property and equipment, net: | ||
Total consolidated property and equipment, net | $ 41,778 | $ 34,388 |
United States | ||
Total property and equipment, net: | ||
Total consolidated property and equipment, net | 20,902 | 15,511 |
China | ||
Total property and equipment, net: | ||
Total consolidated property and equipment, net | $ 20,876 | $ 18,877 |
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, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Customer Revenue | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 49.00% | 0.00% | |
Customer Revenue | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 9.00% | |
Customer Revenue | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 9.00% | 11.00% | |
Customer Revenue | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 9.00% | 7.00% | |
Customer Revenue | Customer E | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 0.00% | 60.00% | |
Accounts Receivable | Customer A | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 36.00% | 33.00% | |
Accounts Receivable | Customer B | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 30.00% | 24.00% | |
Accounts Receivable | Customer C | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 16.00% | |
Accounts Receivable | Customer D | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 0.00% | 6.00% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | |
Revenue Recognition Milestone Method [Line Items] | |||
Revenue recognition cash discount percentage | 2.30% | ||
Provision for chargebacks and other deductions included as reduction of accounts receivable total | $ 17,264,000 | $ 12,552,000 | |
Commercial Platform | |||
Revenue Recognition Milestone Method [Line Items] | |||
Provision for chargebacks and other deductions included as reduction of accounts receivable total | 17,264,000 | 12,551,000 | |
Chargebacks and other revenue deductions expense | 25,600,000 | $ 24,900,000 | |
Axis Therapeutics Limited | |||
Revenue Recognition Milestone Method [Line Items] | |||
Licenses revenue | 1,000,000 | ||
License fee received withholding tax | $ 300,000 | ||
Licensed IP | |||
Revenue Recognition Milestone Method [Line Items] | |||
Revenue recognized | 0 | $ 0 | |
Transferred at a Point in Time | Licensed IP | |||
Revenue Recognition Milestone Method [Line Items] | |||
Revenue recognized | 20,500,000 | ||
Revenue recognized for upfront fee upon transferring certain IP to customer | 500,000 | ||
Transferred at a Point in Time | Licensed IP | 2017 Almirall Out-License Arrangement | |||
Revenue Recognition Milestone Method [Line Items] | |||
Revenue recognized upon achievement of first commercial milestone | $ 20,000,000 |
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, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 41,025 | $ 46,935 |
Oncology Innovation Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 20,665 | 28,387 |
Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 7,101 | 3,006 |
Commercial Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 13,259 | 15,542 |
United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 38,645 | 17,522 |
United States | Oncology Innovation Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 20,157 | |
United States | Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 5,229 | 1,980 |
United States | Commercial Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 13,259 | 15,542 |
China | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 205 | 28,513 |
China | Oncology Innovation Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 8 | 28,308 |
China | Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 197 | 205 |
Other Foreign Countries Including Austria | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 2,175 | 900 |
Other Foreign Countries Including Austria | Oncology Innovation Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 500 | 79 |
Other Foreign Countries Including Austria | Global Supply Chain Platform | Transferred at a Point in Time | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 1,675 | $ 821 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Receivables and Contract Liabilities From Contracts with Customers (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Change In Contract With Customer Liability [Abstract] | ||
Accounts receivable, gross | $ 46,935 | $ 45,792 |
Chargebacks and other deductions | (17,264) | (12,552) |
Provision for credit losses | (9,482) | (9,637) |
Accounts receivable, net | 20,189 | 23,603 |
Deferred revenue | 1,289 | 1,147 |
Total contract liabilities | $ 1,289 | $ 1,147 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Accounts Receivable and Contract Assets Balances by Reportable Segments (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts Receivable By Reportable Segments [Line Items] | ||
Accounts receivable, gross | $ 46,935 | $ 45,792 |
Chargebacks and other deductions | (17,264) | (12,552) |
Provision for credit losses | (9,482) | (9,637) |
Accounts receivable, net | 20,189 | 23,603 |
Oncology Innovation Platform | ||
Accounts Receivable By Reportable Segments [Line Items] | ||
Accounts receivable, gross | 9,167 | 10,783 |
Provision for credit losses | (8,919) | (8,919) |
Accounts receivable, net | 248 | 1,864 |
Global Supply Chain Platform | ||
Accounts Receivable By Reportable Segments [Line Items] | ||
Accounts receivable, gross | 3,589 | 4,074 |
Chargebacks and other deductions | (1) | |
Provision for credit losses | (138) | (164) |
Accounts receivable, net | 3,451 | 3,909 |
Commercial Platform | ||
Accounts Receivable By Reportable Segments [Line Items] | ||
Accounts receivable, gross | 34,179 | 30,935 |
Chargebacks and other deductions | (17,264) | (12,551) |
Provision for credit losses | (425) | (554) |
Accounts receivable, net | $ 16,490 | $ 17,830 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments Under Non-Cancelable Leases (Detail) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2021 (remaining nine months) | $ 2,577 |
2022 | 2,918 |
2023 | 2,096 |
2024 | 2,002 |
2025 | 1,472 |
Thereafter | 478 |
Total lease payments | $ 11,543 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2021USD ($)Lawsuit | |
Commitments And Contingencies Disclosure [Abstract] | |
Number of purported securities class action lawsuits filed | Lawsuit | 2 |
Liability related to class action lawsuit | $ | $ 0 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - Subsequent Event - Merger Agreement - Kuur Therapeutics, Inc. | May 04, 2021USD ($) |
Subsequent Event [Line Items] | |
Upfront payment to stockholders in common stock | $ 70,000,000 |
Maximum | |
Subsequent Event [Line Items] | |
Milestone payments receivable | $ 115,000,000 |