Filed 8 May 19

Document and Entity Information

Document and Entity Information - shares3 Months Ended
Mar. 31, 2019Apr. 30, 2019
Document And Entity Information [Abstract]
Document Type10-Q
Amendment Flagfalse
Document Period End DateMar. 31,
2019
Document Fiscal Year Focus2019
Document Fiscal Period FocusQ1
Trading SymbolGWPH
Entity Registrant NameGW PHARMACEUTICALS PLC
Entity Central Index Key0001351288
Current Fiscal Year End Date--12-31
Entity Current Reporting StatusYes
Entity Filer CategoryLarge Accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companyfalse
Entity Common Stock, Shares Outstanding368,625,620

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Assets
Cash and cash equivalents $ 521,669 $ 591,497
Accounts receivable, net19,251 4,192
Inventory48,559 33,030
Prepaid expenses and other current assets19,389 17,903
Total current assets608,868 646,622
Property, plant, and equipment, net102,029 90,832
Operating lease assets20,077
Goodwill6,959 6,959
Deferred tax assets8,584 8,720
Other assets3,040 2,935
Total assets749,557 756,068
Liabilities and stockholders’ equity
Accounts payable10,794 9,796
Accrued liabilities59,782 52,477
Current tax liabilities1,730 2,384
Other current liabilities5,651 1,559
Total current liabilities77,957 66,216
Long-term liabilities:
Finance lease liabilities5,801 5,690
Operating lease liabilities16,374
Other liabilities9,696 10,082
Total long-term liabilities31,871 15,772
Total liabilities109,828 81,988
Commitments and contingencies (Note 7)
Stockholders’ equity:
Ordinary shares par value £0.001; 368,613,440 shares outstanding as of March 31, 2019; 366,616,688 shares outstanding as of December 31, 2018567 564
Additional paid-in capital1,593,056 1,581,144
Accumulated deficit(879,004)(828,940)
Accumulated other comprehensive loss(74,890)(78,688)
Total stockholders’ equity639,729 674,080
Total liabilities and stockholders’ equity $ 749,557 $ 756,068

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - £ / sharesMar. 31, 2019Dec. 31, 2018
Statement Of Financial Position [Abstract]
Ordinary shares, par value £ 0.001 £ 0.001
Ordinary shares, outstanding368,613,440 366,616,688

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Revenues
Total revenues $ 39,247 $ 3,041
Operating expenses
Cost of product sales5,131 1,625
Research and development30,375 43,485
Selling, general and administrative55,078 26,173
Total operating expenses90,584 71,283
Loss from operations(51,337)(68,242)
Interest income2,087 759
Interest expense(265)(325)
Foreign exchange loss(1,114)(640)
Loss before income taxes(50,629)(68,448)
Income tax (benefit) expense(565)1,013
Net loss $ (50,064) $ (69,461)
Net loss per common share, basic and diluted $ (0.14) $ (0.20)
Weighted average common shares outstanding, basic and diluted369,823 340,252
Product Net Sales
Revenues
Total revenues $ 38,974 $ 2,812
Other Revenue
Revenues
Total revenues $ 273 $ 229

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net loss $ (50,064) $ (69,461)
Other comprehensive gain:
Foreign currency translation adjustments3,798 4,108
Comprehensive loss $ (46,266) $ (65,353)

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($) $ in ThousandsTotalCommon StockAdditional Paid-in CapitalAccumulated DeficitAccumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2017 $ 623,098 $ 527 $ 1,220,206 $ (523,683) $ (73,952)
Beginning balance, Shares at Dec. 31, 2017337,964,000
Issuance of common stock from exercise of stock options1 $ 1
Issuance of common stock from exercise of stock options, Shares549,000
Net loss(69,461)(69,461)
Share-based compensation6,858 6,858
Other comprehensive income4,108 4,108
Ending balance at Mar. 31, 2018564,604 $ 528 1,227,064 (593,144)(69,844)
Ending balance, Shares at Mar. 31, 2018338,513,000
Beginning balance at Dec. 31, 2018674,080 $ 564 1,581,144 (828,940)(78,688)
Beginning balance, Shares at Dec. 31, 2018366,617,000
Issuance of common stock from exercise of stock options773 $ 3 770
Issuance of common stock from exercise of stock options, Shares1,996,000
Net loss(50,064)(50,064)
Share-based compensation11,142 11,142
Other comprehensive income3,798 3,798
Ending balance at Mar. 31, 2019 $ 639,729 $ 567 $ 1,593,056 $ (879,004) $ (74,890)
Ending balance, Shares at Mar. 31, 2019368,613,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Cash flows from operating activities
Net loss $ (50,064) $ (69,461)
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange loss797 873
Share-based compensation11,142 6,859
Depreciation and amortization2,417 2,307
Deferred income taxes2,128
Changes in operating assets and liabilities:
Accounts receivable, net(14,998)(320)
Inventory(14,295)672
Prepaid expenses and other current assets(874)(492)
Other assets659 (3)
Accounts payable1,998 652
Current tax liabilities(654)(2,684)
Accrued liabilities6,328 (7,005)
Other current liabilities191 1,103
Long-term liabilities(1,029)(30)
Net cash used in operating activities(58,382)(65,401)
Cash flows from investing activities
Additions to property, plant and equipment(12,087)(6,056)
Additions to capitalized software(199)(338)
Net cash used in investing activities(12,286)(6,394)
Cash flows from financing activities
Proceeds from exercise of stock options773 1
Payments on finance leases(179)(72)
Payments on landlord financing obligation(138)(137)
Net cash provided by (used in) financing activities456 (208)
Effect of exchange rate changes on cash384 11
Net decrease in cash and cash equivalents(69,828)(71,992)
Cash and cash equivalents at beginning of period591,497 559,227
Cash and cash equivalents at end of period521,669 487,235
Supplemental disclosure of cash flow information:
Income taxes paid88 1,672
Interest paid265 325
Supplemental disclosure of noncash information:
Property and equipment purchases in accounts payable and accrued liabilities $ 714 $ 1,823

Business Overview

Business Overview3 Months Ended
Mar. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Business OverviewNote 1: Business Overview GW Pharmaceuticals plc and its subsidiaries (referred to herein as “we,” “us,” “our,” and the “Company”) are primarily involved in the development of cannabinoid prescription medicines using botanical extracts derived from the cannabis plant. The Company is developing a portfolio of cannabinoid medicines, of which the lead product is Epidiolex ® The Company is a public limited company, which has had American Depository Shares (“ADSs”) registered with the U.S. Securities and Exchange Commission (“SEC”) and has been listed on Nasdaq since May 1, 2013. The Company is incorporated and domiciled in the United Kingdom. The address of the Company’s registered office and principal place of business is Sovereign House, Vision Park, Histon, Cambridgeshire. In September 2018, the Company changed its fiscal year end to December 31 from September 30 and filed a transition annual report on Form 10-KT (“Annual Report on Form 10-KT”) with the SEC for the three-month transition period ended December 31, 2018 on February 28, 2019.

Summary of Significant Accounti

Summary of Significant Accounting Policies3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]
Summary of Significant Accounting PoliciesNote 2: Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete annual financial statements. These accounting principles were applied on a basis consistent with those of the consolidated financial statements contained in the Company’s Annual Report on Form 10-KT for the three-month transition period ended December 31, 2018. In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of our financial statements for interim periods. The condensed consolidated balance sheet as of December 31, 2018 was derived from audited annual financial statements but does not include all annual disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements for the transition period ended December 31, 2018 included in our Annual Report on Form 10-KT. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year or any other future periods. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Fair Value of Financial Instruments The carrying values of the Company’s financial instruments, consisting of cash and cash equivalents, trade receivables, interest and other receivables, and accounts payable and accrued liabilities, approximate fair value due to the relative short-term nature of these instruments. Accounts Receivable Accounts receivable are recorded net of customer allowances for prompt payment discounts, chargebacks, and doubtful accounts. Allowances for prompt payment discounts and chargebacks are based on contractual terms. The Company estimates the allowance for doubtful accounts based on existing contractual payment terms, actual payment patterns of its customers and individual customer circumstances. As of March 31, 2019 and December 31, 2018, the Company determined that an allowance for doubtful accounts was not required and no accounts were written off during the periods presented. Inventory Inventory is stated at the lower of cost or estimated net realizable value. The Company uses a combination of standard and actual costing methodologies to determine the cost basis for its inventories which approximates actual cost. Inventory is valued on a first-in, first-out basis. The Company reduces its inventory to net realizable value for potentially excess, dated or obsolete inventory based on an analysis of forecasted demand compared to quantities on hand, as well as product shelf life. The Company capitalizes inventory costs associated with its products upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed. Prior to approval of Epidiolex by the United States Food and Drug Administration (“FDA”), all costs related to the manufacturing of Epidiolex were charged to research and development expense in the period incurred. Revenue Recognition The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers Revenue for the Company’s product sales has not been adjusted for the effects of a financing component as the Company expects, at contract inception, that the period between when the Company’s transfers control of the product and when the Company receives payment will be one year or less. Product shipping and handling costs are included in cost of product sales. Epidiolex Product Net Sales Epidiolex was approved by the FDA in June 2018. Subsequent to the approval by the FDA, the United States Drug Enforcement Agency (“DEA”) took action to change the classification of Epidiolex from a Schedule I controlled substance to a Schedule V controlled substance, thereby allowing Epidiolex to be prescribed and distributed in the United States. On November 1, 2018, the Company launched sales of Epidiolex to specialty pharmacies (“SPs”) and specialty distributors (“SDs”). The Company recognizes revenue from product sales upon receipt of product at the SPs and SDs, the date at which the control is transferred, net of the following allowances which are reflected each of these as either a reduction to the related account receivable or as an accrued liability, depending on how the allowance is settled: Distribution Fees : Distribution fees include distribution service fees paid to the SPs and SDs based on a contractually fixed percentage of the wholesale acquisition cost (“WAC”), and prompt payment discounts. Distribution fees are recorded as an offset to revenue based on contractual terms at the time revenue from the sale is recognized. Rebates : Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program and the Medicare Part D prescription drug benefit, and contractual rebates with commercial payers. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements with, or statutory requirements pertaining to, Medicaid and Medicare benefit providers. The allowance for rebates is based on statutory discount rates and expected utilization. The Company’s estimates for expected utilization of rebates is based on utilization data received from the SPs since product launch. Rebates are generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for prior quarters’ unpaid rebates. If actual future rebates vary from estimates, the Company may need to adjust prior period accruals, which would affect revenue in the period of adjustment. Chargebacks : Chargebacks are discounts and fees that relate to contracts with government and other entities purchasing from the SDs at a discounted price. The SDs charge back to the Company the difference between the price initially paid by the SDs and the discounted price paid to the SDs by these entities. The Company also incurs group purchasing organization fees for transactions through certain purchasing organizations. The Company estimates sales with these entities and accrues for anticipated chargebacks and organization fees, based on the applicable contractual terms. If actual future chargebacks vary from these estimates, the Company may need to adjust prior period accruals, which would affect revenue in the period of adjustment. Co-Payment Assistance : The Company offers co-payment assistance to commercially insured patients meeting certain eligibility requirements. Co-payment assistance is accrued for based on actual program participation and estimates of program redemption using data provided by third-party administrators. Product Returns : Consistent with industry practice, the Company offers the SPs and SDs limited product return rights for damages, shipment errors, and expiring product, provided that the return is within a specified period around the product expiration date as set forth in the applicable individual distribution agreement. The Company does not allow product returns for product that has been dispensed to a patient. As the Company receives inventory reports from the SPs and SDs and has the ability to control the amount of product that is sold to the SPs and SDs, it is able to make a reasonable estimate of future potential product returns based on this on-hand channel inventory data and sell-through data obtained from the SPs and SDs. In arriving at its estimate, the Company also considers historical product returns, the underlying product demand, and industry data specific to the specialty pharmaceutical distribution industry. The total amount deducted from gross sales for the allowances described above was $7.5 million for the three months ended March 31, 2019 Sativex ® Sales of Sativex, which is currently being commercialized for spasticity due to multiple sclerosis (“MS”) outside the United States, are made pursuant to license agreements with commercial partners Other Revenue The Company’s other revenue primarily consists of research and development fee revenue for research and development services provided under a collaboration agreement with Otsuka Pharmaceutical Co. Ltd (“Otsuka”) The research and development fee revenue is recognized at the time the underlying services are performed. The Sativex license agreements contain provisions for the Company to earn variable consideration in the form of regulatory milestone payments, sales-based milestone payments, and royalty payments. The Company has no further performance obligations related to the regulatory milestone payments and these amounts are recognized in accordance with Topic 606 when receipt of these payments becomes probable and there is no significant risk of revenue reversal. Revenue related to the sales-based milestone payments and product royalty payments are subject to the sales-based royalty exception under Topic 606 and will be recognized when the underlying sales are made. Research and Development Expenses Research and development expenses are charged to operations as incurred. Research and development expenses include, among other things, internal and external costs associated with preclinical development, pre-commercialization manufacturing expenses, and clinical trials. The Company accrues for costs incurred as the services are being provided by monitoring the status of the trial or services provided and the invoices received from its external service providers. In the case of clinical trials, a portion of the estimated cost normally relates to the projected cost to treat a patient in the trials, and this cost is recognized based on the number of patients enrolled in the trial. As actual costs become known, the Company adjusts its accruals accordingly. Research and development expense is presented net of reimbursements from reimbursable tax and expenditure credits from the U.K. government. Reimbursable research and development tax and expenditure credits were $0.8 million and $1.1 million for the three months ended March 31, 2019 and 2018, respectively. Concentration Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, principally consist of cash, cash equivalents, investment securities, and accounts receivable. The Company’s cash and cash equivalents balances are primarily in depository accounts at major financial institutions in accordance with the Company’s investment policy. The Company’s investment policy defines allowable investments and establishes guidelines relating to credit quality, diversification, and maturities of its investments to preserve principal and maintain liquidity. Further, the Company specifies credit quality standards for its customers that are designed to limit the Company’s credit exposure to any single party. Share-based Compensation The Company recognizes share-based compensation expense for grants of stock options under the Company’s Long-Term Incentive Plans to employees and non-employee members of the Company’s board of directors based on the grant-date fair value of those awards. The grant-date fair value of an award is generally recognized as compensation expense over the award’s requisite service period. Expense related to awards with graded vesting is generally recognized over the vesting period using the accelerated attribution method. Net Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period. For the purpose of this calculation, vested nominal strike-price options are considered common shares outstanding. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period determined using the treasury stock method. The Company incurred net losses for all periods presented and therefore excluded all potentially dilutive securities in the calculation of diluted net loss per share. For the three months ended March 31, 2019 and 2018, options totaling approximately New Accounting Pronouncements On January 1, 2019, the Company adopted a new accounting standard issued by the Financial Accounting Standards Board (“FASB”) on accounting for leases using the modified retrospective method. This new accounting standard requires a lessee to recognize an asset and liability for most leases on its balance sheet. The Company elected the optional transition method that allowed for a cumulative-effect adjustment as of January 1, 2019 and did not restate previously reported results in the comparative periods. The Company also elected to adopt certain practical expedients allowed by the new standard, which among other things, allowed the Company to carry forward its historical lease classification. As a result of adoption of the new standard, the Company recorded operating lease assets and liabilities of approximately $20.5 million and $21.1 million, respectively as of January 1, 2019. The operating lease liability was determined based on the present value of the remaining minimum rental payments and the operating lease asset was determined based on the value of the lease liability, adjusted for existing deferred rent balances, which were previously included in other current liabilities and other liabilities. Accounting for the Company’s finance leases remains substantially unchanged. As a result of the adoption of the new leasing accounting standard, the Company’s build-to-suit asset has been reclassified to buildings and the build-to-suit financing obligation has been reclassified to finance lease obligation in the condensed consolidated balance sheets. The adoption of the new standard did not materially impact the Company’s consolidated results of operations or cash flows. In addition, the adoption of this new accounting standard resulted in increased qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. For further details, see Note 8 Leases

Fair Value Measurements

Fair Value Measurements3 Months Ended
Mar. 31, 2019
Fair Value Disclosures [Abstract]
Fair Value MeasurementsNote 3: Fair Value Measurements At March 31, 2019 and December 31, 2018, the Company’s cash equivalents consisted of money market funds, which are classified as Level 1 within the fair value hierarchy defined by authoritative guidance. Investment securities classified as Level 1 are valued using quoted market prices.

Composition of Certain Balance

Composition of Certain Balance Sheet Captions3 Months Ended
Mar. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Composition of Certain Balance Sheet CaptionsNote 4: Composition of Certain Balance Sheet Captions: Inventory consisted of the following:
March 31,
December 31,
2019
2018
(in thousands)
Raw materials
$
1,255
$
676
Work in process
41,179
28,709
Finished goods
6,125
3,645
$
48,559
$
33,030
Property, plant and equipment, net, consisted of the following:
March 31,
December 31,
2019
2018
(in thousands)
Buildings
$
4,710
$
4,573
Machinery and equipment
33,717
32,598
Leasehold improvements
37,142
36,004
Office and IT equipment
2,689
2,481
Construction-in-process
55,847
44,546
134,105
120,202
Accumulated depreciation
(32,076
)
(29,370
)
$
102,029
$
90,832
Depreciation of property and equipment was $2.1 million and $2.2 million for the three months ended March 31, 2019 and 2018, respectively. The Company did not retire any property, plant, or equipment in the three months ended March 31, 2019 and 2018. Accrued liabilities consisted of the following:
March 31,
December 31,
2019
2018
(in thousands)
Accrued compensation and benefits
$
18,223
$
18,482
Accrued vendor fees
15,108
11,452
Clinical trial accruals
12,309
10,059
Accrued growing fees
1,958
2,717
Accrued sales rebates and discounts
5,181
628
Other
7,003
9,139
$
59,782
$
52,477
Other current liabilities consisted of the following:
March 31,
December 31,
2019
2018
(in thousands)
Finance lease liabilities
$
291
$
400
Operating lease liabilities
4,531

Landlord financing
563
539
Other
266
620
$
5,651
$
1,559
Other liabilities consisted of the following:
March 31,
December 31,
2019
2018
(in thousands)
Landlord financing obligation
$
9,569
$
9,434
Other
127
648
$
9,696
$
10,082

Stockholders' Equity

Stockholders' Equity3 Months Ended
Mar. 31, 2019
Equity [Abstract]
Stockholders' EquityNote 5: Stockholders’ Equity In October 2018, the Company completed a public offering of 2,185,000 ADSs listed on the Nasdaq Global Market, representing 26,220,000 ordinary shares of the Company, at a price of $158.00 per ADS. The net proceeds from this transaction after underwriting discounts and commissions were approximately $324.6 million.

Share-Based Compensation

Share-Based Compensation3 Months Ended
Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Share-Based CompensationNote 6: Share-Based Compensation Compensation expense for share-based awards is recognized over the requisite service period using the accelerated attribution method. An estimated forfeiture rate has been applied to unvested awards for the purpose of calculating The fair value of stock option awards is estimated using the Black-Scholes option-pricing model. The determination of fair value using the Black-Scholes model is affected by the Company’s ADS price as well as assumptions regarding a number of complex and subjective variables, including expected ADS price volatility, risk-free interest rate, expected dividends and projected employee stock option exercise behaviors. The Company estimates its stock price volatility using a combination of historical stock price volatility and the average implied volatility of options traded in the open market. The risk-free interest rate assumption is based on observed interest rates for the appropriate term of the Company’s stock options. The Company has never declared or paid dividends and has no plans to do so in the foreseeable future. The expected option life assumption is estimated using the simplified method prescribed by ASC Topic 718, Compensation – Stock Compensation, The table below summarizes the total share-based compensation expense included in the Company’s statements of operations for the periods presented:
Three months ended March 31,
2019
2018
(in thousands)
Research and development
$
2,398
$
1,287
Sales, general and administrative
8,113
5,158
$
10,511
$
6,445
For the three months ended March 31, 2019 and 2018, $0.6 million and $0.4 million of share-based compensation related to manufacturing operations was capitalized into inventory, respectively.

Commitments and Contingencies

Commitments and Contingencies3 Months Ended
Mar. 31, 2019
Commitments And Contingencies Disclosure [Abstract]
Commitments and ContingenciesNote 7: Commitments and Contingencies As of March 31, 2019, the Company was not a party to any material legal proceedings.

Leases

Leases3 Months Ended
Mar. 31, 2019
Leases [Abstract]
LeasesNote 8: Leases The Company leases buildings, land, equipment, and automobiles and has growing contracts that contain embedded leases for growing facilities. The Company determines if an arrangement is a lease or contains a lease at contract inception. For contracts that are or contain leases, the Company records right-of-use (“ROU”) lease assets and lease liabilities at lease commencement based on the present value of lease payments over the lease term. The lease term includes renewal option periods when those options are reasonably certain to be exercised. The present value of lease payments is calculated using the Company’s incremental collateralized borrowing rate unless an implicit rate is readily determinable. ROU lease assets include any upfront payments and exclude lease incentives. Leases are classified at lease commencement as either operating leases or finance leases. Operating lease assets are included in non-current assets and operating lease liabilities are included in other current liabilities and operating lease liabilities in our condensed consolidated balance sheets. Operating lease cost is recognized on a straight-line basis over the lease term. Finance lease assets are included in property, plant and equipment, net, and finance lease liabilities are included in other current liabilities and finance lease liabilities in our condensed consolidated balance sheets. Finance lease cost is recognized as depreciation expense of fixed assets and interest expense on finance lease liabilities. Leases with an initial term of 12 months or less are not recorded in the consolidated balance sheets and expense for these leases is recognized on a straight-line basis over the lease term. As of March 31, 2019, the Company has a lease agreement for office space that has not yet commenced with fixed lease payments totaling $3.2 million. The lease is expected to commence in mid-2019. No operating or finance lease assets were exchanged for lease liabilities in the three months ended March 31, 2019. The Company’s lease costs consist of the following:
Three Months Ended March 31,
2019
(in thousands)
Lease cost
Operating lease cost (1)
$
1,423
Finance lease cost
Amortization of leased assets
98
Interest on lease liabilities
84
Total lease cost
$
1,605
(1)
Includes short-term lease expense and variable cost, which are immaterial. For the three months ended March 31, 2019, approximately $0.4 million of operating and finance lease cost related to manufacturing operations was capitalized into inventory. The following table summarizes cash flow information related to the Company’s lease obligations:
Three Months Ended March 31,
2019
(in thousands)
Operating cash used for operating leases
$
1,100
Operating cash used for finance leases
$
84
Financing cash used for finance leases
$
179
The following table summarizes the Company’s lease assets and liabilities:
As of March 31,
2019
(in thousands)
Lease assets
Operating lease assets
$
20,077
Finance lease assets
5,391
Total lease assets
$
25,468
Lease liabilities
Current
Operating lease liabilities
4,531
Finance lease liabilities
291
Non-current
Operating lease liabilities
16,374
Finance lease liabilities
5,801
Total lease liabilities
$
26,997
The following table summarizes other supplemental information related to the Company’s lease obligations:
As of March 31,
2019
Weighted average remaining lease term (years)
Operating leases
7.6
Finance leases
14.9
Weighted average discount rate
Operating leases
5.8
%
Finance leases
7.6
% The Company’s future minimum annual lease payments under operating and finance leases as of March 31, 2019 are as follows:
Operating Leases
Finance Leases
(in thousands)
2019 (remaining 9 months)
$
3,606
$
574
2020
4,673
726
2021
3,769
726
2022
2,728
718
2023
2,007
716
Thereafter
9,850
6,869
Total lease payments
$
26,633
$
10,329
Less amounts representing interest
5,728
4,237
Total lease obligations
$
20,905
$
6,092
Prior to January 1, 2019, the Company accounted for leases under the previous U.S. GAAP lease guidance, Accounting Standards Codification Topic 840, Leases

Subsequent Events

Subsequent Events3 Months Ended
Mar. 31, 2019
Subsequent Events [Abstract]
Subsequent EventsNote 9: Subsequent Events On March 15, 2019, the Company entered into a definitive agreement to sell its Rare Pediatric Disease Priority Review Voucher (“PRV”) for $105.0 million. The Company was awarded the PRV under a FDA program intended to encourage the development of treatments for rare pediatric diseases. The Company received the PRV when Epidiolex was approved by the FDA for the treatment of seizures associated with Lennox-Gastaut Syndrome (“LGS”) or Dravet syndrome. The closing of the sale of the PRV was subject to antitrust review by U.S. federal agencies. Clearance of the transaction was received by the federal agencies subsequent to March 31, 2019 and the transaction closed on April 5, 2019. Because the contingencies preventing the closing of the transaction were not resolved until after March 31, 2019 and the Company maintained control of the PRV as of March 31, 2019, the sale of the PRV will be reflected in the Company’s financial statements in the second quarter of 2019.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)3 Months Ended
Mar. 31, 2019
Accounting Policies [Abstract]
Basis of PresentationBasis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete annual financial statements. These accounting principles were applied on a basis consistent with those of the consolidated financial statements contained in the Company’s Annual Report on Form 10-KT for the three-month transition period ended December 31, 2018. In the Company’s opinion, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of our financial statements for interim periods. The condensed consolidated balance sheet as of December 31, 2018 was derived from audited annual financial statements but does not include all annual disclosures required by U.S. GAAP. These interim financial statements should be read in conjunction with the audited financial statements for the transition period ended December 31, 2018 included in our Annual Report on Form 10-KT. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the full year or any other future periods. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of EstimatesUse of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Fair Value of Financial InstrumentsFair Value of Financial Instruments The carrying values of the Company’s financial instruments, consisting of cash and cash equivalents, trade receivables, interest and other receivables, and accounts payable and accrued liabilities, approximate fair value due to the relative short-term nature of these instruments.
Accounts ReceivableAccounts Receivable Accounts receivable are recorded net of customer allowances for prompt payment discounts, chargebacks, and doubtful accounts. Allowances for prompt payment discounts and chargebacks are based on contractual terms. The Company estimates the allowance for doubtful accounts based on existing contractual payment terms, actual payment patterns of its customers and individual customer circumstances. As of March 31, 2019 and December 31, 2018, the Company determined that an allowance for doubtful accounts was not required and no accounts were written off during the periods presented.
InventoryInventory Inventory is stated at the lower of cost or estimated net realizable value. The Company uses a combination of standard and actual costing methodologies to determine the cost basis for its inventories which approximates actual cost. Inventory is valued on a first-in, first-out basis. The Company reduces its inventory to net realizable value for potentially excess, dated or obsolete inventory based on an analysis of forecasted demand compared to quantities on hand, as well as product shelf life. The Company capitalizes inventory costs associated with its products upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed. Prior to approval of Epidiolex by the United States Food and Drug Administration (“FDA”), all costs related to the manufacturing of Epidiolex were charged to research and development expense in the period incurred.
Revenue RecognitionRevenue Recognition The Company recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. To determine revenue recognition for arrangements that an entity determines are within the scope of Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers Revenue for the Company’s product sales has not been adjusted for the effects of a financing component as the Company expects, at contract inception, that the period between when the Company’s transfers control of the product and when the Company receives payment will be one year or less. Product shipping and handling costs are included in cost of product sales.
Product Net SalesEpidiolex Product Net Sales Epidiolex was approved by the FDA in June 2018. Subsequent to the approval by the FDA, the United States Drug Enforcement Agency (“DEA”) took action to change the classification of Epidiolex from a Schedule I controlled substance to a Schedule V controlled substance, thereby allowing Epidiolex to be prescribed and distributed in the United States. On November 1, 2018, the Company launched sales of Epidiolex to specialty pharmacies (“SPs”) and specialty distributors (“SDs”). The Company recognizes revenue from product sales upon receipt of product at the SPs and SDs, the date at which the control is transferred, net of the following allowances which are reflected each of these as either a reduction to the related account receivable or as an accrued liability, depending on how the allowance is settled: Distribution Fees : Distribution fees include distribution service fees paid to the SPs and SDs based on a contractually fixed percentage of the wholesale acquisition cost (“WAC”), and prompt payment discounts. Distribution fees are recorded as an offset to revenue based on contractual terms at the time revenue from the sale is recognized. Rebates : Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program and the Medicare Part D prescription drug benefit, and contractual rebates with commercial payers. Rebates are amounts owed after the final dispensing of the product to a benefit plan participant and are based upon contractual agreements with, or statutory requirements pertaining to, Medicaid and Medicare benefit providers. The allowance for rebates is based on statutory discount rates and expected utilization. The Company’s estimates for expected utilization of rebates is based on utilization data received from the SPs since product launch. Rebates are generally invoiced and paid in arrears so that the accrual balance consists of an estimate of the amount expected to be incurred for the current quarter’s activity, plus an accrual balance for prior quarters’ unpaid rebates. If actual future rebates vary from estimates, the Company may need to adjust prior period accruals, which would affect revenue in the period of adjustment. Chargebacks : Chargebacks are discounts and fees that relate to contracts with government and other entities purchasing from the SDs at a discounted price. The SDs charge back to the Company the difference between the price initially paid by the SDs and the discounted price paid to the SDs by these entities. The Company also incurs group purchasing organization fees for transactions through certain purchasing organizations. The Company estimates sales with these entities and accrues for anticipated chargebacks and organization fees, based on the applicable contractual terms. If actual future chargebacks vary from these estimates, the Company may need to adjust prior period accruals, which would affect revenue in the period of adjustment. Co-Payment Assistance : The Company offers co-payment assistance to commercially insured patients meeting certain eligibility requirements. Co-payment assistance is accrued for based on actual program participation and estimates of program redemption using data provided by third-party administrators. Product Returns : Consistent with industry practice, the Company offers the SPs and SDs limited product return rights for damages, shipment errors, and expiring product, provided that the return is within a specified period around the product expiration date as set forth in the applicable individual distribution agreement. The Company does not allow product returns for product that has been dispensed to a patient. As the Company receives inventory reports from the SPs and SDs and has the ability to control the amount of product that is sold to the SPs and SDs, it is able to make a reasonable estimate of future potential product returns based on this on-hand channel inventory data and sell-through data obtained from the SPs and SDs. In arriving at its estimate, the Company also considers historical product returns, the underlying product demand, and industry data specific to the specialty pharmaceutical distribution industry. The total amount deducted from gross sales for the allowances described above was $7.5 million for the three months ended March 31, 2019 Sativex ® Sales of Sativex, which is currently being commercialized for spasticity due to multiple sclerosis (“MS”) outside the United States, are made pursuant to license agreements with commercial partners
Other RevenueOther Revenue The Company’s other revenue primarily consists of research and development fee revenue for research and development services provided under a collaboration agreement with Otsuka Pharmaceutical Co. Ltd (“Otsuka”) The research and development fee revenue is recognized at the time the underlying services are performed. The Sativex license agreements contain provisions for the Company to earn variable consideration in the form of regulatory milestone payments, sales-based milestone payments, and royalty payments. The Company has no further performance obligations related to the regulatory milestone payments and these amounts are recognized in accordance with Topic 606 when receipt of these payments becomes probable and there is no significant risk of revenue reversal. Revenue related to the sales-based milestone payments and product royalty payments are subject to the sales-based royalty exception under Topic 606 and will be recognized when the underlying sales are made.
Research and Development ExpensesResearch and Development Expenses Research and development expenses are charged to operations as incurred. Research and development expenses include, among other things, internal and external costs associated with preclinical development, pre-commercialization manufacturing expenses, and clinical trials. The Company accrues for costs incurred as the services are being provided by monitoring the status of the trial or services provided and the invoices received from its external service providers. In the case of clinical trials, a portion of the estimated cost normally relates to the projected cost to treat a patient in the trials, and this cost is recognized based on the number of patients enrolled in the trial. As actual costs become known, the Company adjusts its accruals accordingly. Research and development expense is presented net of reimbursements from reimbursable tax and expenditure credits from the U.K. government. Reimbursable research and development tax and expenditure credits were $0.8 million and $1.1 million for the three months ended March 31, 2019 and 2018, respectively.
Concentration RiskConcentration Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, principally consist of cash, cash equivalents, investment securities, and accounts receivable. The Company’s cash and cash equivalents balances are primarily in depository accounts at major financial institutions in accordance with the Company’s investment policy. The Company’s investment policy defines allowable investments and establishes guidelines relating to credit quality, diversification, and maturities of its investments to preserve principal and maintain liquidity. Further, the Company specifies credit quality standards for its customers that are designed to limit the Company’s credit exposure to any single party.
Share-based CompensationShare-based Compensation The Company recognizes share-based compensation expense for grants of stock options under the Company’s Long-Term Incentive Plans to employees and non-employee members of the Company’s board of directors based on the grant-date fair value of those awards. The grant-date fair value of an award is generally recognized as compensation expense over the award’s requisite service period. Expense related to awards with graded vesting is generally recognized over the vesting period using the accelerated attribution method.
Net Loss Per ShareNet Loss Per Share Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period. For the purpose of this calculation, vested nominal strike-price options are considered common shares outstanding. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and dilutive common stock equivalents outstanding for the period determined using the treasury stock method. The Company incurred net losses for all periods presented and therefore excluded all potentially dilutive securities in the calculation of diluted net loss per share. For the three months ended March 31, 2019 and 2018, options totaling approximately
New Accounting PronouncementsNew Accounting Pronouncements On January 1, 2019, the Company adopted a new accounting standard issued by the Financial Accounting Standards Board (“FASB”) on accounting for leases using the modified retrospective method. This new accounting standard requires a lessee to recognize an asset and liability for most leases on its balance sheet. The Company elected the optional transition method that allowed for a cumulative-effect adjustment as of January 1, 2019 and did not restate previously reported results in the comparative periods. The Company also elected to adopt certain practical expedients allowed by the new standard, which among other things, allowed the Company to carry forward its historical lease classification. As a result of adoption of the new standard, the Company recorded operating lease assets and liabilities of approximately $20.5 million and $21.1 million, respectively as of January 1, 2019. The operating lease liability was determined based on the present value of the remaining minimum rental payments and the operating lease asset was determined based on the value of the lease liability, adjusted for existing deferred rent balances, which were previously included in other current liabilities and other liabilities. Accounting for the Company’s finance leases remains substantially unchanged. As a result of the adoption of the new leasing accounting standard, the Company’s build-to-suit asset has been reclassified to buildings and the build-to-suit financing obligation has been reclassified to finance lease obligation in the condensed consolidated balance sheets. The adoption of the new standard did not materially impact the Company’s consolidated results of operations or cash flows. In addition, the adoption of this new accounting standard resulted in increased qualitative and quantitative disclosures regarding the amount, timing, and uncertainty of cash flows arising from leases. For further details, see Note 8 Leases

Composition of Certain Balanc_2

Composition of Certain Balance Sheet Captions (Tables)3 Months Ended
Mar. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Schedule of InventoryInventory consisted of the following:
March 31,
December 31,
2019
2018
(in thousands)
Raw materials
$
1,255
$
676
Work in process
41,179
28,709
Finished goods
6,125
3,645
$
48,559
$
33,030
Schedule of Property, Plant and Equipment, NetProperty, plant and equipment, net, consisted of the following:
March 31,
December 31,
2019
2018
(in thousands)
Buildings
$
4,710
$
4,573
Machinery and equipment
33,717
32,598
Leasehold improvements
37,142
36,004
Office and IT equipment
2,689
2,481
Construction-in-process
55,847
44,546
134,105
120,202
Accumulated depreciation
(32,076
)
(29,370
)
$
102,029
$
90,832
Schedule of Accrued LiabilitiesAccrued liabilities consisted of the following:
March 31,
December 31,
2019
2018
(in thousands)
Accrued compensation and benefits
$
18,223
$
18,482
Accrued vendor fees
15,108
11,452
Clinical trial accruals
12,309
10,059
Accrued growing fees
1,958
2,717
Accrued sales rebates and discounts
5,181
628
Other
7,003
9,139
$
59,782
$
52,477
Schedule of Other Current LiabilitiesOther current liabilities consisted of the following:
March 31,
December 31,
2019
2018
(in thousands)
Finance lease liabilities
$
291
$
400
Operating lease liabilities
4,531

Landlord financing
563
539
Other
266
620
$
5,651
$
1,559
Schedule of Other LiabilitiesOther liabilities consisted of the following:
March 31,
December 31,
2019
2018
(in thousands)
Landlord financing obligation
$
9,569
$
9,434
Other
127
648
$
9,696
$
10,082

Share-Based Compensation (Table

Share-Based Compensation (Tables)3 Months Ended
Mar. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Share-based Compensation Expense Included in Statements of OperationsThe table below summarizes the total share-based compensation expense included in the Company’s statements of operations for the periods presented:
Three months ended March 31,
2019
2018
(in thousands)
Research and development
$
2,398
$
1,287
Sales, general and administrative
8,113
5,158
$
10,511
$
6,445

Leases (Tables)

Leases (Tables)3 Months Ended
Mar. 31, 2019
Leases [Abstract]
Summary of Lease CostsThe Company’s lease costs consist of the following:
Three Months Ended March 31,
2019
(in thousands)
Lease cost
Operating lease cost (1)
$
1,423
Finance lease cost
Amortization of leased assets
98
Interest on lease liabilities
84
Total lease cost
$
1,605
(1)
Includes short-term lease expense and variable cost, which are immaterial.
Summary of Cash Flow Information Related to Lease ObligationsThe following table summarizes cash flow information related to the Company’s lease obligations:
Three Months Ended March 31,
2019
(in thousands)
Operating cash used for operating leases
$
1,100
Operating cash used for finance leases
$
84
Financing cash used for finance leases
$
179
Summary of Lease Assets and LiabilitiesThe following table summarizes the Company’s lease assets and liabilities:
As of March 31,
2019
(in thousands)
Lease assets
Operating lease assets
$
20,077
Finance lease assets
5,391
Total lease assets
$
25,468
Lease liabilities
Current
Operating lease liabilities
4,531
Finance lease liabilities
291
Non-current
Operating lease liabilities
16,374
Finance lease liabilities
5,801
Total lease liabilities
$
26,997
Summary of Other Supplemental Information Related to Lease ObligationsThe following table summarizes other supplemental information related to the Company’s lease obligations:
As of March 31,
2019
Weighted average remaining lease term (years)
Operating leases
7.6
Finance leases
14.9
Weighted average discount rate
Operating leases
5.8
%
Finance leases
7.6
%
Summary of Future Minimum Annual Lease Payments Under Operating and Finance LeasesThe Company’s future minimum annual lease payments under operating and finance leases as of March 31, 2019 are as follows:
Operating Leases
Finance Leases
(in thousands)
2019 (remaining 9 months)
$
3,606
$
574
2020
4,673
726
2021
3,769
726
2022
2,728
718
2023
2,007
716
Thereafter
9,850
6,869
Total lease payments
$
26,633
$
10,329
Less amounts representing interest
5,728
4,237
Total lease obligations
$
20,905
$
6,092

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) shares in Millions3 Months Ended12 Months Ended
Mar. 31, 2019Mar. 31, 2018Dec. 31, 2018Jan. 01, 2019
Summary Of Significant Accounting Policies [Line Items]
Accounts receivable written off $ 0 $ 0
Amount deducted from gross sales for allowances7,500,000
Reimbursable researsch and development tax and expendiiture credits800,000 $ 1,100,000
Operating lease assets20,077,000 $ 20,500,000
Lease liabilities $ 26,997,000 $ 21,100,000
Common Stock
Summary Of Significant Accounting Policies [Line Items]
Antidilutive securities excluded from calculation of diluted net loss per share12.4 13.4
Topic 606
Summary Of Significant Accounting Policies [Line Items]
Performance obligations related to regulatory milestone payments $ 0

Composition of Certain Balanc_3

Composition of Certain Balance Sheet Captions - Schedule of Inventory (Details) - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials $ 1,255 $ 676
Work in process41,179 28,709
Finished goods6,125 3,645
Inventory $ 48,559 $ 33,030

Composition of Certain Balanc_4

Composition of Certain Balance Sheet Captions - Schedule of Property, Plant and Equipment, Net (Details) - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross $ 134,105 $ 120,202
Accumulated depreciation(32,076)(29,370)
Property, plant and equipment, net102,029 90,832
Buildings
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross4,710 4,573
Machinery and Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross33,717 32,598
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross37,142 36,004
Office and IT Equipment
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross2,689 2,481
Construction-in-Process
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross $ 55,847 $ 44,546

Composition of Certain Balanc_5

Composition of Certain Balance Sheet Captions - Additional Information (Details) - USD ($) $ in Millions3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Depreciation of property and equipment $ 2.1 $ 2.2
Retired property, plant or equipment $ 0 $ 0

Composition of Certain Balanc_6

Composition of Certain Balance Sheet Captions - Schedule of Accrued Liabilities (Details) - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Payables And Accruals [Abstract]
Accrued compensation and benefits $ 18,223 $ 18,482
Accrued vendor fees15,108 11,452
Clinical trial accruals12,309 10,059
Accrued growing fees1,958 2,717
Accrued sales rebates and discounts5,181 628
Other7,003 9,139
Accrued liabilities $ 59,782 $ 52,477

Composition of Certain Balanc_7

Composition of Certain Balance Sheet Captions - Schedule of Other Current Liabilities (Details) - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Other Liabilities Current [Abstract]
Finance lease liabilities $ 291 $ 400
Operating lease liabilities4,531
Landlord financing563 539
Other266 620
Other current liabilities $ 5,651 $ 1,559

Composition of Certain Balanc_8

Composition of Certain Balance Sheet Captions - Schedule of Other Liabilities (Details) - USD ($) $ in ThousandsMar. 31, 2019Dec. 31, 2018
Other Liabilities Disclosure [Abstract]
Landlord financing obligation $ 9,569 $ 9,434
Other127 648
Other liabilities $ 9,696 $ 10,082

Stockholder's Equity - Addition

Stockholder's Equity - Additional Information (Details) $ / shares in Units, $ in Millions1 Months Ended
Oct. 31, 2018USD ($)$ / sharesshares
Class Of Stock [Line Items]
ADS price per share | $ / shares $ 158
Proceeds from issuance of shares | $ $ 324.6
American Depositary Shares ("ADSs")
Class Of Stock [Line Items]
Shares issued2,185,000
Common Stock
Class Of Stock [Line Items]
Shares issued26,220,000

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Share-based Compensation Expense Included in Statements of Operations (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense $ 10,511 $ 6,445
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense2,398 1,287
Sales, General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total stock-based compensation expense $ 8,113 $ 5,158

Share-Based Compensation - Addi

Share-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation expense $ 10,511 $ 6,445
Inventory
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock based compensation expense $ 600 $ 400

Leases - Additional Information

Leases - Additional Information (Details) - USD ($)3 Months Ended
Mar. 31, 2019Mar. 31, 2018Dec. 31, 2018
Leases [Abstract]
Fixed lease payments not yet commenced $ 3,200,000
Operating lease assets were exchanged for lease liabilities0
Finance lease assets were exchanged for lease liabilities0
Operating and finance lease cost related to manufacturing operations capitalized into inventory $ 400,000
Rent expense for operating leases $ 1,000,000
Leases payments, 2019 $ 6,400,000
Leases payments, 20206,900,000
Leases payments, 20215,700,000
Leases payments, 20224,200,000
Leases payments, 20232,800,000
Leases payments, thereafter $ 11,800,000

Leases - Summary of Lease Costs

Leases - Summary of Lease Costs (Details) $ in Thousands3 Months Ended
Mar. 31, 2019USD ($)
Lease cost
Operating lease cost $ 1,423
Finance lease cost
Amortization of leased assets98
Interest on lease liabilities84
Total lease cost $ 1,605

Leases - Summary of Cash Flow I

Leases - Summary of Cash Flow Information Related to Lease Obligations (Details) - USD ($) $ in Thousands3 Months Ended
Mar. 31, 2019Mar. 31, 2018
Leases [Abstract]
Operating cash used for operating leases $ 1,100
Operating cash used for finance leases84
Financing cash used for finance leases $ 179 $ 72

Leases - Summary of Lease Asset

Leases - Summary of Lease Assets and Liabilities (Details) - USD ($) $ in ThousandsMar. 31, 2019Jan. 01, 2019Dec. 31, 2018
Lease assets
Operating lease assets $ 20,077 $ 20,500
Finance lease assets5,391
Total lease assets25,468
Current
Operating lease liabilities4,531
Finance lease liabilities291 $ 400
Non-current
Operating lease liabilities16,374
Finance lease liabilities5,801 $ 5,690
Total lease liabilities $ 26,997 $ 21,100

Leases - Summary of Other Suppl

Leases - Summary of Other Supplemental Information Related to Lease Obligations (Details)Mar. 31, 2019
Weighted average remaining lease term (years)
Operating leases7 years 7 months 6 days
Finance leases14 years 10 months 24 days
Weighted average discount rate
Operating leases5.80%
Finance leases7.60%

Leases - Summary of Future Mini

Leases - Summary of Future Minimum Annual Lease Payments Under Operating and Finance Leases (Details) $ in ThousandsMar. 31, 2019USD ($)
Leases [Abstract]
Operating Leases, 2019 (remaining 9 months) $ 3,606
Operating Leases, 20204,673
Operating Leases, 20213,769
Operating Leases, 20222,728
Operating Leases, 20232,007
Operating Leases, Thereafter9,850
Operating Leases, Total lease payments26,633
Operating Leases, Less amounts representing interest5,728
Operating Leases, Total lease obligations20,905
Finance Lease, 2019 (remaining 9 months)574
Finance Leases, 2020726
Finance Leases, 2021726
Finance Leases, 2022718
Finance Leases, 2023716
Finance Leases, Thereafter6,869
Finance Leases, Total lease payments10,329
Finance Leases, Less amounts representings interest4,237
Finance Leases, Total lease obligations $ 6,092

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) $ in MillionsMar. 15, 2019USD ($)
Subsequent Events [Abstract]
Definitive agreement to sell, Rare Pediatric Disease Priority Review Voucher $ 105