Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 26, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | LA JOLLA PHARMACEUTICAL CO | |
Entity Central Index Key | 0000920465 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Shell Company | false | |
Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 27,128,896 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash | $ 123,446 | $ 172,604 |
Accounts receivable, net | 1,893 | 1,381 |
Inventory, net | 1,968 | 2,020 |
Prepaid expenses and other current assets | 5,089 | 5,111 |
Total current assets | 132,396 | 181,116 |
Property and equipment, net | 20,430 | 22,267 |
Right-of-use lease asset | 16,159 | |
Restricted cash | 909 | 909 |
Total assets | 169,894 | 204,292 |
Current liabilities: | ||
Accounts payable | 4,908 | 8,572 |
Accrued expenses | 10,347 | 8,485 |
Accrued payroll and related expenses | 4,080 | 7,509 |
Lease liability, current portion | 2,646 | |
Deferred rent, current portion | 0 | 1,370 |
Total current liabilities | 21,981 | 25,936 |
Deferred rent, less current portion | 0 | 13,609 |
Lease liability, less current portion | 27,890 | |
Deferred royalty obligation, net | 124,351 | 124,323 |
Other noncurrent liabilities | 8,265 | 4,503 |
Total liabilities | 182,487 | 168,371 |
Shareholders’ (deficit) equity: | ||
Common Stock, $0.0001 par value; 100,000,000 shares authorized, 27,125,215 and 26,259,254 shares issued and outstanding at June 30, 2019 and December 31, 2018, respectively | 3 | 3 |
Additional paid-in capital | 966,422 | 950,258 |
Accumulated deficit | (982,924) | (920,983) |
Total shareholders’ (deficit) equity | (12,593) | 35,921 |
Total liabilities and shareholders’ (deficit) equity | 169,894 | 204,292 |
Series C-1 Convertible Preferred Stock [Member] | ||
Shareholders’ (deficit) equity: | ||
Convertible preferred stock, value | 3,906 | 3,906 |
Series F Convertible Preferred Stock [Member] | ||
Shareholders’ (deficit) equity: | ||
Convertible preferred stock, value | $ 0 | $ 2,737 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 27,093,026 | 26,259,254 |
Common stock, shares outstanding (in shares) | 27,093,026 | 26,259,254 |
Series C-1 Convertible Preferred Stock [Member] | ||
Preferred stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 11,000 | 11,000 |
Preferred stock, shares issued (in shares) | 3,906 | 3,906 |
Preferred stock, shares outstanding (in shares) | 3,906 | 3,906 |
Preferred stock, liquidation | $ 3,906 | $ 3,906 |
Series F Convertible Preferred Stock [Member] | ||
Preferred stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares issued (in shares) | 0 | 2,737 |
Preferred stock, shares outstanding (in shares) | 0 | 2,737 |
Preferred stock, liquidation | $ 0 | $ 2,737 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | ||||
Net product sales | $ 5,703 | $ 1,593 | $ 10,098 | $ 2,402 |
Total revenue | 5,703 | 1,593 | 10,098 | 2,402 |
Operating expenses | ||||
Cost of product sales | 551 | 129 | 1,051 | 187 |
Research and development | 22,043 | 30,867 | 43,287 | 59,296 |
Selling, general and administrative | 11,323 | 22,164 | 23,643 | 45,180 |
Total operating expenses | 33,917 | 53,160 | 67,981 | 104,663 |
Loss from operations | (28,214) | (51,567) | (57,883) | (102,261) |
Interest expense | (2,806) | (1,654) | (5,535) | (1,654) |
Interest income | 604 | 443 | 1,317 | 609 |
Total other expense, net | (2,202) | (1,211) | (4,218) | (1,045) |
Net loss | $ (30,416) | $ (52,778) | $ (62,101) | $ (103,306) |
Net loss per share, basic and diluted (usd per share) | $ (1.12) | $ (2.02) | $ (2.29) | $ (4.22) |
Weighted-average common shares outstanding - basic and diluted (in shares) | 27,108 | 26,182 | 27,071 | 24,462 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Stock [Member]Series C-1 Convertible Preferred Stock [Member] | Preferred Stock [Member]Series F Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings |
Beginning Balance (in shares) at Dec. 31, 2017 | 4 | 3 | 22,167 | |||
Beginning Balance at Dec. 31, 2017 | $ 88,202 | $ 3,906 | $ 2,737 | $ 2 | $ 803,071 | $ (721,514) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 9,402 | 9,402 | ||||
Issuance of common stock for conversion of Series F Preferred Stock (in shares) | 3,910 | |||||
Issuance of common stock for conversion of Series F Preferred Stock | 109,809 | $ 1 | 109,808 | |||
Exercise of stock options for common stock (in shares) | 77 | |||||
Exercise of stock options for common stock | 528 | 528 | ||||
Net loss | (50,528) | (50,528) | ||||
Ending Balance (in shares) at Mar. 31, 2018 | 4 | 3 | 26,154 | |||
Ending Balance at Mar. 31, 2018 | 157,413 | $ 3,906 | $ 2,737 | $ 3 | 922,809 | (772,042) |
Beginning Balance (in shares) at Dec. 31, 2017 | 4 | 3 | 22,167 | |||
Beginning Balance at Dec. 31, 2017 | 88,202 | $ 3,906 | $ 2,737 | $ 2 | 803,071 | (721,514) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (103,306) | |||||
Ending Balance (in shares) at Jun. 30, 2018 | 4 | 3 | 26,219 | |||
Ending Balance at Jun. 30, 2018 | 115,667 | $ 3,906 | $ 2,737 | $ 3 | 933,841 | (824,820) |
Beginning Balance (in shares) at Mar. 31, 2018 | 4 | 3 | 26,154 | |||
Beginning Balance at Mar. 31, 2018 | 157,413 | $ 3,906 | $ 2,737 | $ 3 | 922,809 | (772,042) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 9,844 | 9,844 | ||||
Exercise of stock options for common stock (in shares) | 65 | |||||
Exercise of stock options for common stock | 1,188 | 1,188 | ||||
Net loss | (52,778) | (52,778) | ||||
Ending Balance (in shares) at Jun. 30, 2018 | 4 | 3 | 26,219 | |||
Ending Balance at Jun. 30, 2018 | 115,667 | $ 3,906 | $ 2,737 | $ 3 | 933,841 | (824,820) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative-effect adjustment from adoption of ASU 2018-07 | 0 | |||||
Beginning Balance (in shares) at Dec. 31, 2018 | 4 | 3 | 26,259 | |||
Beginning Balance at Dec. 31, 2018 | 35,921 | $ 3,906 | $ 2,737 | $ 3 | 950,258 | (920,983) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 6,782 | 6,782 | ||||
Issuance of common stock under ESPP (in shares) | 52 | |||||
Issuance of common stock under ESPP | 283 | 283 | ||||
Issuance of common stock for conversion of Series F Preferred Stock (in shares) | (3) | 782 | ||||
Issuance of common stock for conversion of Series F Preferred Stock | $ (2,737) | 2,737 | ||||
Net loss | (31,685) | (31,685) | ||||
Ending Balance (in shares) at Mar. 31, 2019 | 4 | 0 | 27,093 | |||
Ending Balance at Mar. 31, 2019 | 11,301 | $ 3,906 | $ 0 | $ 3 | 959,900 | (952,508) |
Beginning Balance (in shares) at Dec. 31, 2018 | 4 | 3 | 26,259 | |||
Beginning Balance at Dec. 31, 2018 | 35,921 | $ 3,906 | $ 2,737 | $ 3 | 950,258 | (920,983) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (62,101) | |||||
Ending Balance (in shares) at Jun. 30, 2019 | 4 | 0 | 27,125 | |||
Ending Balance at Jun. 30, 2019 | (12,593) | $ 3,906 | $ 0 | $ 3 | 966,422 | (982,924) |
Beginning Balance (in shares) at Mar. 31, 2019 | 4 | 0 | 27,093 | |||
Beginning Balance at Mar. 31, 2019 | 11,301 | $ 3,906 | $ 0 | $ 3 | 959,900 | (952,508) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation expense | 6,321 | 6,321 | ||||
Issuance of common stock under ESPP (in shares) | 32 | |||||
Issuance of common stock under ESPP | 201 | 201 | ||||
Net loss | (30,416) | (30,416) | ||||
Ending Balance (in shares) at Jun. 30, 2019 | 4 | 0 | 27,125 | |||
Ending Balance at Jun. 30, 2019 | (12,593) | $ 3,906 | $ 0 | $ 3 | $ 966,422 | $ (982,924) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative-effect adjustment from adoption of ASU 2018-07 | $ (160) |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||
Net loss | $ (62,101) | $ (103,306) |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Share-based compensation expense | 13,103 | 19,246 |
Depreciation expense | 2,263 | 2,088 |
Loss on disposal of equipment | 15 | 150 |
Accretion of right-of-use lease asset | (602) | |
Non-cash interest expense | 4,678 | 1,655 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (512) | (372) |
Inventory, net | 52 | (939) |
Prepaid expenses and other current assets | 22 | (2,135) |
Accounts payable | (3,664) | (5,415) |
Accrued expenses | 974 | 4,608 |
Accrued payroll and related expenses | (3,429) | (377) |
Deferred rent | 0 | 1,376 |
Net cash used for operating activities | (49,201) | (83,421) |
Investing activities | ||
Purchase of property and equipment | (441) | (1,881) |
Net cash used for investing activities | (441) | (1,881) |
Financing activities | ||
Proceeds from the issuance of common stock under ESPP | 484 | 0 |
Proceeds From Royalties Financing | 0 | 124,289 |
Net proceeds from the issuance of common stock | 0 | 109,809 |
Net proceeds from the exercise of stock options for common stock | 0 | 1,716 |
Net cash provided by financing activities | 484 | 235,814 |
Net (decrease) increase in cash and restricted cash | (49,158) | 150,512 |
Cash and restricted cash at beginning of period | 173,513 | 91,824 |
Cash and restricted cash at end of period | 124,355 | 242,336 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Noncash Or Part Noncash Transaction, Conversion Of Preferred Stock, Common Stock | 2,737 | 0 |
Initial recognition of right-of-use lease asset | 16,798 | |
Reconciliation of cash and restricted cash to the condensed consolidated balance sheets | ||
Total cash and restricted cash | $ 173,513 | $ 91,824 |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, they should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the SEC on March 4, 2019 (the “Form 10-K”). The accompanying unaudited condensed consolidated financial statements include the accounts of La Jolla Pharmaceutical Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the condensed consolidated balance sheet as of June 30, 2019 , the condensed consolidated statements of operations for the three and six months ended June 30, 2019 , the condensed consolidated statement of shareholder’s (deficit) equity for the three and six months ended June 30, 2019 and the condensed consolidated statement of cash flows for the six months ended June 30, 2019 . The preparation of the Company’s unaudited condensed consolidated financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities in the Company’s unaudited condensed consolidated financial statements and the accompanying notes. Actual results may differ materially from these estimates. Certain amounts previously reported in the financial statements have been reclassified to conform to the current year presentation. Such reclassifications did not affect net loss, shareholders’ equity or cash flows. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year or any future interim periods. The accompanying condensed consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet as of December 31, 2018 contained in the Form 10-K. Summary of Significant Accounting Policies During the six months ended June 30, 2019 , there have been no changes to the Company’s significant accounting policies as described in the Form 10-K, except as described below. Leases At lease commencement, the Company records a lease liability based on the present value of lease payments over the expected lease term. The Company calculates the present value of lease payments using the discount rate implicit in the lease, unless that rate cannot be readily determined. In that case, the Company uses its incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow on a collateralized basis an amount equal to the lease payments over the expected lease term. The Company records a corresponding right-of-use lease asset based on the lease liability, adjusted for any lease incentives received and any initial direct costs paid to the lessor prior to the lease commencement date. After lease commencement, the Company measures its leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the discount rate determined at lease commencement; and (ii) the right-of-use lease asset based on the remeasured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease agreement. Any lease incentives received and any initial direct costs are amortized on a straight-line basis over the expected lease term. Rent expense is recorded on a straight-line basis over the expected lease term. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash. The Company maintains its cash in checking and savings accounts at federally insured financial institutions in excess of federally insured limits. The Company’s products are distributed in the U.S. through distributors and select wholesalers (collectively, customers) that resell its products to hospitals, the end users. The following table includes the percentage of net product sales and accounts receivable balances for the Company’s four major customers, each of which comprised 10% or more of its net product sales: Net Product Sales Accounts Receivable Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 As of June 30, 2019 Customer A 32 % 32 % 31 % Customer B 28 % 30 % 10 % Customer C 25 % 28 % 24 % Customer D 15 % 10 % 35 % Total 100 % 100 % 100 % Net Loss per Share Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration of potential common shares. Diluted net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding plus potential common shares. Convertible preferred stock, stock options and warrants are considered potential common shares and are included in the calculation of diluted net loss per share using the treasury stock method when their effect is dilutive. Potential common shares are excluded from the calculation of diluted net loss per share when their effect is anti-dilutive. As of June 30, 2019 and 2018 , there were 14.0 million shares and 14.2 million shares, respectively, of potential common shares, which were excluded from the calculation of diluted net loss per share because their effect was anti-dilutive. Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting (“ASU 2018-07”). The standard expands the scope of Accounting Standards Codification (“ASC”) Topic 718 to include share-based payment awards granted to nonemployees in exchange for goods and services. ASU 2018-07 is effective for annual and interim reporting periods beginning after December 15, 2018. In the first quarter 2019, the Company adopted ASU 2018-07. Prior to the adoption of ASU 2018-07, share-based payments awards granted to nonemployees were measured at fair value on their grant date, subject to periodic remeasurement, and share-based compensation expense was recognized on a straight-line basis over their vesting terms. After the adoption of ASU 2018-07, the fair value of share-based payment awards granted to nonemployees is not required to be remeasured periodically and share-based compensation expense will continue to be recorded on a straight-line basis over their vesting period, consistent with share-based payment awards granted to employees. As a result of the adoption of ASU 2018-07, the Company remeasured all of its outstanding nonemployee share-based payment awards at fair value and recognized a cumulative-effect adjustment of $0.2 million to accumulated deficit as of January 1, 2019. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). This guidance requires lessees to recognize operating leases with a term greater than one year on the balance sheet as a right-of-use asset and corresponding lease liability. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. Although ASU 2016-02 is required to be adopted at the earliest period presented using a modified retrospective approach, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), which allows for an alternative transition method of adoption by recognizing a cumulative-effect adjustment, if any, to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 on January 1, 2019 utilizing the alternative transition method allowed under ASU 2018-11. As a result, the Company recorded a lease liability and right-of-use lease asset of $31.8 million and $16.8 million , respectively, on its balance sheet as of January 1, 2019. The lease liability represents the present value of the remaining lease payments of the Company’s corporate headquarters lease (see Note 4), discounted using the Company’s incremental borrowing rate as of January 1, 2019. The corresponding right-of-use lease asset is recorded based on the lease liability, adjusted for the unamortized lease incentives received and the cumulative difference between rent expense and amounts paid under the corporate headquarters lease. The adoption of ASU 2016-02 did not have a material impact on either the statement of operations or statement of cash flows for the three and six months ended June 30, 2019. |
Business
Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Business La Jolla Pharmaceutical Company (collectively with its wholly-owned subsidiaries, the “Company”) is a biopharmaceutical company focused on the discovery, development and commercialization of innovative therapies intended to significantly improve outcomes in patients suffering from life-threatening diseases. GIAPREZA TM (angiotensin II), formerly known as LJPC-501, was approved by the U.S. Food and Drug Administration (the “FDA”) on December 21, 2017 as a vasoconstrictor indicated to increase blood pressure in adults with septic or other distributive shock. LJPC-0118 (artesunate) is La Jolla’s investigational product for the treatment of severe malaria. LJPC-401 (synthetic human hepcidin), a clinical-stage investigational product, is being developed for the potential treatment of conditions characterized by iron overload, such as hereditary hemochromatosis, beta thalassemia, sickle cell disease, myelodysplastic syndrome and polycythemia vera. As of June 30, 2019 , the Company had $123.4 million in cash, compared to $172.6 million in cash as of December 31, 2018 . Based on the Company’s current operating plans and projections, the Company expects that its cash as of June 30, 2019 will be sufficient to fund operations for at least one year from the date this Quarterly Report on Form 10-Q is filed with the U.S. Securities and Exchange Commission (the “SEC”). |
Balance Sheet Account Details
Balance Sheet Account Details | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Account Details | Balance Sheet Details Restricted Cash Restricted cash as of June 30, 2019 and December 31, 2018 represents a standby letter of credit for the Company’s building lease in lieu of a security deposit during the term of such lease (see Note 4). There is a requirement to maintain $0.9 million of cash collateral in an account pledged as security for such letter of credit. Inventory, Net Inventory, net consisted of the following (in thousands): June 30, December 31, Work-in-process $ 1,607 $ 1,907 Finished goods 361 113 Total inventory, net $ 1,968 $ 2,020 As of June 30, 2019 and December 31, 2018, total inventory is recorded net of $0.8 million of inventory reserves. Accrued Expenses Accrued expenses consisted of the following (in thousands): June 30, December 31, Accrued clinical study costs $ 3,317 $ 2,430 Accrued interest expense 3,148 2,260 Accrued manufacturing costs 1,890 1,823 Accrued other 1,992 1,972 Total accrued expenses $ 10,347 $ 8,485 |
Company-wide Realignment (Notes
Company-wide Realignment (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Company-wide Realignment | Company-wide Realignment On October 18, 2018, the Company effected a Company-wide realignment to increase its efficiency and focus on achieving its corporate goals. For the year ended December 31, 2018, total expense for these activities was $4.0 million , with $1.6 million included in research and development expense and $2.4 million included in selling, general and administrative expense. Total expense was comprised of $7.7 million for severance costs, offset by a $3.7 million reversal of non-cash, stock-based compensation expense related to forfeited, unvested equity awards. As of March 31, 2019, all severance costs had been paid. No expense for these activities was recorded during the three and six months ended June 30, 2019. |
Leases Leases
Leases Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases On December 29, 2016, the Company entered into an agreement with BMR-Axiom LP to lease office and laboratory space as its corporate headquarters located at 4550 Towne Centre Court, San Diego, California (the “Lease”) for a period of 10 years commencing on October 30, 2017. The Company has an option to extend the Lease for an additional 5 years at the end of the initial term. The Company provided a standby letter of credit for $0.9 million in lieu of a security deposit. This amount will decrease to $0.6 million after year two of the lease term and decrease to $0.3 million after year 5 of the lease term. The annual rent under the Lease is subject to escalation during the term. In addition to rent, the Lease requires the Company to pay certain taxes, insurance and operating costs relating to the leased premises. The Lease contains customary default provisions, representations, warranties and covenants. The Lease is classified as an operating lease. Future minimum lease payments under the Lease as of June 30, 2019 are as follows (in thousands): 2019 $ 1,982 2020 4,058 2021 4,174 2022 4,294 2023 4,417 Thereafter 18,134 Total future minimum lease payments 37,059 Less: discount (6,523 ) Total lease liability $ 30,536 The Company recorded a lease liability and right-of-use lease asset for the Lease based on the present value of lease payments over the expected lease term, discounted using the Company’s incremental borrowing rate. The option to extend the Lease was not recognized as a part of the Company’s lease liability or right-of-use lease asset. Lease expense for each of the three and six months ended June 30, 2019 and 2018 was $0.7 million and $1.4 million , respectively. Amortization for the right-of-use lease asset was $0.3 million and $0.6 million for the three and six months ended June 30, 2019 , respectively. |
Deferred Royalty Obligation
Deferred Royalty Obligation | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Deferred Royalty Obligation | Deferred Royalty Obligation On May 10, 2018, the Company closed a $125.0 million royalty financing agreement (the “Royalty Agreement”) with HealthCare Royalty Partners (“HCR”). Under the terms of the Royalty Agreement, the Company received $125.0 million in exchange for tiered royalty payments on worldwide net product sales of GIAPREZA. HCR is entitled to receive quarterly royalties on worldwide net product sales of GIAPREZA beginning April 1, 2018. Quarterly payments to HCR under the Royalty Agreement start at a maximum royalty rate, with step-downs based on the achievement of annual net product sales thresholds. Through December 31, 2021, the royalty rate will be a maximum of 10% . Starting January 1, 2022, the maximum royalty rate may increase by 4% if an agreed-upon, cumulative sales threshold has not been met, and, starting January 1, 2024, the maximum royalty rate may increase by an additional 4% if a different agreed-upon, cumulative sales threshold has not been met. The Royalty Agreement is subject to maximum aggregate royalty payments to HCR of 180% of the $125.0 million received by the Company, at which time the payment obligations under the Royalty Agreement would expire. The Royalty Agreement was entered into by the Company’s wholly-owned subsidiary, La Jolla Pharma, LLC, and HCR has no recourse under the Royalty Agreement against La Jolla Pharmaceutical Company or any assets other than GIAPREZA. On receipt of the $125.0 million payment from HCR, the Company recorded a deferred royalty obligation of $125.0 million , net of issuance costs of $0.7 million . For the three months ended June 30, 2019 and 2018, the Company recognized interest expense, including amortization of the obligation discount, of $2.8 million and $1.7 million , respectively. For the six months ended June 30, 2019 and 2018, the Company recognized interest expense, including amortization of the obligation discount, of $5.5 million and $1.7 million , respectively. The carrying value of the deferred royalty obligation as of June 30, 2019 was $124.4 million , net of unamortized obligation discount of $0.6 million , and was classified as noncurrent. The related interest expense liability was $11.4 million and $6.8 million as of June 30, 2019 and December 31, 2018, respectively, of which $8.3 million and $4.5 million was classified as noncurrent, respectively. During the three and six months ended June 30, 2019 , the Company made royalty payments to HCR of $0.4 million and $0.9 million , respectively, and, as of June 30, 2019, the Company recorded royalty obligations payable of $0.6 million in accrued expenses. In the event of certain material breaches of the Royalty Agreement, HCR would have the right to terminate the Royalty Agreement and demand payment of an amount equal to either $125.0 million , minus aggregate royalties paid to HCR, or $225.0 million , minus aggregate royalties paid to HCR, depending on the type of breach. The Company concluded that certain of these contract provisions that could result in an acceleration of amounts due under the Royalty Agreement are embedded derivatives that require bifurcation from the deferred royalty obligation and fair value recognition. The Company determined the fair value of each derivative by assessing the probability of each event occurring, as well as the potential repayment amounts and timing of such repayments that would result under various scenarios. As a result of this assessment, the Company determined that the fair value of the embedded derivatives is immaterial as of June 30, 2019 . Each reporting period, the Company estimates the fair value of the embedded derivatives until the features lapse and/or the termination of the Royalty Agreement. Any change in the fair value of the embedded derivatives will be recorded as either a gain or loss on the consolidated statements of operations. |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders’ (Deficit) Equity 2018 Common Stock Offering In March 2018, the Company offered and sold 3,910,000 shares of common stock in an underwritten public offering at a price of $29.50 per share for gross proceeds of approximately $115.3 million . The Company received proceeds of approximately $109.8 million , net of approximately $5.5 million in underwriting commissions, discounts and other issuance costs. Preferred Stock In January 2019, the Company issued 782,031 shares of common stock upon the conversion of 2,737 shares of Series F Convertible Preferred Stock. As of June 30, 2019, there were no shares of Series F Convertible Preferred Stock issued and outstanding. Warrants In March 2018, the Company issued 43,056 shares of common stock in a cashless exercise of 83,013 warrants to a third-party warrant holder. As of June 30, 2019 , the Company had outstanding warrants to purchase 10,000 shares of common stock. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plans | Equity Incentive Plans 2013 Equity Incentive Plan A total of 8,100,000 shares of common stock have been reserved for issuance under the La Jolla Pharmaceutical Company 2013 Equity Incentive Plan (the “2013 Equity Plan”). As of June 30, 2019, 681,521 shares of common stock remained available for future grants under the 2013 Equity Plan. 2018 Employee Stock Purchase Plan A total of 750,000 shares of common stock have been reserved for issuance under the La Jolla Pharmaceutical Company 2018 Employee Stock Purchase Plan (the “ESPP”). As of June 30, 2019, 633,771 shares of common stock remained available for future grants under the ESPP. Equity Awards The activity related to equity awards, which are comprised of stock options and inducement grants, during the six months ended June 30, 2019 is summarized as follows: Equity Awards Weighted- average Exercise Price per Share Outstanding at December 31, 2018 6,466,214 $ 23.26 Granted (1) 1,923,030 $ 6.33 Cancelled/forfeited (1,184,101 ) $ 20.84 Outstanding at June 30, 2019 7,205,143 $ 19.14 (1) In March 2019, the Company issued a stock option grant to the Company’s recently appointed Chief Commercial Officer to purchase 80,000 shares of common stock at an exercise price equal to the fair market value of the Company’s common stock on the grant date. The grant was awarded as an inducement grant outside of the 2013 Equity Plan. On the first anniversary of the grant date, 25% of the underlying shares become exercisable with the remaining shares vesting on a monthly basis over the subsequent three years, subject to continued service during that time. Share-based Compensation Expense The classification of share-based compensation expense is summarized as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Research and development $ 3,960 $ 5,701 $ 7,893 $ 11,097 Selling, general and administrative 2,361 4,143 5,210 8,149 Total share-based compensation expense $ 6,321 $ 9,844 $ 13,103 $ 19,246 As of June 30, 2019 , total unrecognized share-based compensation expense related to unvested equity awards was $49.9 million , which are expected to be recognized over a weighted-average period of 2.6 years. As of June 30, 2019, there was no unrecognized share-based compensation expense related to shares of common stock issued under the ESPP. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation and Use of Estimates The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of SEC Regulation S-X. Accordingly, they should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 , filed with the SEC on March 4, 2019 (the “Form 10-K”). |
Principles of Consolidation | The accompanying unaudited condensed consolidated financial statements include the accounts of La Jolla Pharmaceutical Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The unaudited condensed consolidated financial statements contain all normal recurring accruals and adjustments that, in the opinion of management, are necessary to present fairly the condensed consolidated balance sheet as of June 30, 2019 , the condensed consolidated statements of operations for the three and six months ended June 30, 2019 , the condensed consolidated statement of shareholder’s (deficit) equity for the three and six months ended June 30, 2019 and the condensed consolidated statement of cash flows for the six months ended June 30, 2019 . |
Use of Estimates | The preparation of the Company’s unaudited condensed consolidated financial statements requires management to make estimates and assumptions that impact the reported amounts of assets, liabilities, revenue and expenses and the disclosure of contingent assets and liabilities in the Company’s unaudited condensed consolidated financial statements and the accompanying notes. Actual results may differ materially from these estimates. Certain amounts previously reported in the financial statements have been reclassified to conform to the current year presentation. Such reclassifications did not affect net loss, shareholders’ equity or cash flows. The results of operations for the three and six months ended June 30, 2019 are not necessarily indicative of the results to be expected for the full year or any future interim periods. The accompanying condensed consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet as of December 31, 2018 contained in the Form 10-K. |
Leases | Leases At lease commencement, the Company records a lease liability based on the present value of lease payments over the expected lease term. The Company calculates the present value of lease payments using the discount rate implicit in the lease, unless that rate cannot be readily determined. In that case, the Company uses its incremental borrowing rate, which is the rate of interest that the Company would have to pay to borrow on a collateralized basis an amount equal to the lease payments over the expected lease term. The Company records a corresponding right-of-use lease asset based on the lease liability, adjusted for any lease incentives received and any initial direct costs paid to the lessor prior to the lease commencement date. After lease commencement, the Company measures its leases as follows: (i) the lease liability based on the present value of the remaining lease payments using the discount rate determined at lease commencement; and (ii) the right-of-use lease asset based on the remeasured lease liability, adjusted for any unamortized lease incentives received, any unamortized initial direct costs and the cumulative difference between rent expense and amounts paid under the lease agreement. Any lease incentives received and any initial direct costs are amortized on a straight-line basis over the expected lease term. Rent expense is recorded on a straight-line basis over the expected lease term. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist of cash. The Company maintains its cash in checking and savings accounts at federally insured financial institutions in excess of federally insured limits. |
Net Loss per Share | Net Loss per Share Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period, without consideration of potential common shares. Diluted net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding plus potential common shares. Convertible preferred stock, stock options and warrants are considered potential common shares and are included in the calculation of diluted net loss per share using the treasury stock method when their effect is dilutive. Potential common shares are excluded from the calculation of diluted net loss per share when their effect is anti-dilutive. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, Stock Compensation (Topic 718): Improvements to Nonemployee Share-based Payment Accounting (“ASU 2018-07”). The standard expands the scope of Accounting Standards Codification (“ASC”) Topic 718 to include share-based payment awards granted to nonemployees in exchange for goods and services. ASU 2018-07 is effective for annual and interim reporting periods beginning after December 15, 2018. In the first quarter 2019, the Company adopted ASU 2018-07. Prior to the adoption of ASU 2018-07, share-based payments awards granted to nonemployees were measured at fair value on their grant date, subject to periodic remeasurement, and share-based compensation expense was recognized on a straight-line basis over their vesting terms. After the adoption of ASU 2018-07, the fair value of share-based payment awards granted to nonemployees is not required to be remeasured periodically and share-based compensation expense will continue to be recorded on a straight-line basis over their vesting period, consistent with share-based payment awards granted to employees. As a result of the adoption of ASU 2018-07, the Company remeasured all of its outstanding nonemployee share-based payment awards at fair value and recognized a cumulative-effect adjustment of $0.2 million to accumulated deficit as of January 1, 2019. In February 2016, the FASB issued ASU No. 2016-02, Leases (“ASU 2016-02”). This guidance requires lessees to recognize operating leases with a term greater than one year on the balance sheet as a right-of-use asset and corresponding lease liability. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. Although ASU 2016-02 is required to be adopted at the earliest period presented using a modified retrospective approach, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements (“ASU 2018-11”), which allows for an alternative transition method of adoption by recognizing a cumulative-effect adjustment, if any, to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 on January 1, 2019 utilizing the alternative transition method allowed under ASU 2018-11. As a result, the Company recorded a lease liability and right-of-use lease asset of $31.8 million and $16.8 million , respectively, on its balance sheet as of January 1, 2019. The lease liability represents the present value of the remaining lease payments of the Company’s corporate headquarters lease (see Note 4), discounted using the Company’s incremental borrowing rate as of January 1, 2019. The corresponding right-of-use lease asset is recorded based on the lease liability, adjusted for the unamortized lease incentives received and the cumulative difference between rent expense and amounts paid under the corporate headquarters lease. The adoption of ASU 2016-02 did not have a material impact on either the statement of operations or statement of cash flows for the three and six months ended June 30, 2019. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedules of Concentration of Risk | The following table includes the percentage of net product sales and accounts receivable balances for the Company’s four major customers, each of which comprised 10% or more of its net product sales: Net Product Sales Accounts Receivable Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 As of June 30, 2019 Customer A 32 % 32 % 31 % Customer B 28 % 30 % 10 % Customer C 25 % 28 % 24 % Customer D 15 % 10 % 35 % Total 100 % 100 % 100 % |
Balance Sheet Account Details (
Balance Sheet Account Details (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Inventory | Inventory, net consisted of the following (in thousands): June 30, December 31, Work-in-process $ 1,607 $ 1,907 Finished goods 361 113 Total inventory, net $ 1,968 $ 2,020 |
Accrued Expenses | Accrued expenses consisted of the following (in thousands): June 30, December 31, Accrued clinical study costs $ 3,317 $ 2,430 Accrued interest expense 3,148 2,260 Accrued manufacturing costs 1,890 1,823 Accrued other 1,992 1,972 Total accrued expenses $ 10,347 $ 8,485 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | Future minimum lease payments under the Lease as of June 30, 2019 are as follows (in thousands): 2019 $ 1,982 2020 4,058 2021 4,174 2022 4,294 2023 4,417 Thereafter 18,134 Total future minimum lease payments 37,059 Less: discount (6,523 ) Total lease liability $ 30,536 |
Equity Incentive Plans Equity I
Equity Incentive Plans Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity award activity | The activity related to equity awards, which are comprised of stock options and inducement grants, during the six months ended June 30, 2019 is summarized as follows: Equity Awards Weighted- average Exercise Price per Share Outstanding at December 31, 2018 6,466,214 $ 23.26 Granted (1) 1,923,030 $ 6.33 Cancelled/forfeited (1,184,101 ) $ 20.84 Outstanding at June 30, 2019 7,205,143 $ 19.14 (1) In March 2019, the Company issued a stock option grant to the Company’s recently appointed Chief Commercial Officer to purchase 80,000 shares of common stock at an exercise price equal to the fair market value of the Company’s common stock on the grant date. The grant was awarded as an inducement grant outside of the 2013 Equity Plan. On the first anniversary of the grant date, 25% of the underlying shares become exercisable with the remaining shares vesting on a monthly basis over the subsequent three years, subject to continued service during that time. |
Share-based compensation expense | The classification of share-based compensation expense is summarized as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Research and development $ 3,960 $ 5,701 $ 7,893 $ 11,097 Selling, general and administrative 2,361 4,143 5,210 8,149 Total share-based compensation expense $ 6,321 $ 9,844 $ 13,103 $ 19,246 |
Business (Narrative) (Details)
Business (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Cash | $ 123,446 | $ 172,604 | $ 241,427 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies (Schedule of Concentration Risk) (Details) | Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 |
Net Product Sales | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 100.00% | 100.00% | |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 100.00% | ||
Customer A | Net Product Sales | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 32.00% | 32.00% | |
Customer A | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 31.00% | ||
Customer B | Net Product Sales | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 28.00% | 30.00% | |
Customer B | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 10.00% | ||
Customer C | Net Product Sales | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 25.00% | 28.00% | |
Customer C | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 24.00% | ||
Customer D [Member] | Net Product Sales | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 15.00% | 10.00% | |
Customer D [Member] | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | 35.00% |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands, shares in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Potentially dilutive common shares related to the outstanding preferred stock, stock options, restricted stock units and warrants (in shares) | 14 | 14.2 | |
Cumulative effect adjustment to accumulated deficit | $ (160) | $ 0 | |
Total lease liability | 30,536 | ||
Right-of-use lease asset | $ 16,159 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Total lease liability | $ 31,800 | ||
Right-of-use lease asset | 16,800 | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to accumulated deficit | 160 | ||
Retained Earnings | Accounting Standards Update 2018-07 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to accumulated deficit | $ 200 |
Balance Sheet Account Details
Balance Sheet Account Details (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Inventory reserves | $ 0.8 | $ 0.8 |
4550 Towne Centre Court, San Diego, California | Financial Standby Letter of Credit | Letter of Credit | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Cash collateral as security | $ 0.9 |
Balance Sheet Account Details_2
Balance Sheet Account Details (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Work-in-process | $ 1,607 | $ 1,907 |
Finished goods | 361 | 113 |
Total inventory, net | $ 1,968 | $ 2,020 |
Balance Sheet Account Details_3
Balance Sheet Account Details (Summary of Accrued Expenses) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrued clinical study costs | $ 3,317 | $ 2,430 |
Income Tax Examination, Interest Accrued | 3,148 | 2,260 |
Accrued manufacturing costs | 1,890 | 1,823 |
Accrued other | 1,992 | 1,972 |
Total accrued expenses | $ 10,347 | $ 8,485 |
Restructuring (Details)
Restructuring (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0 | $ 4,000,000 |
Reversal of non-cash-stock-based compensation expense | 3,700,000 | |
Research and development [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,600,000 | |
Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2,400,000 | |
Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 7,700,000 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Oct. 30, 2022 | Oct. 30, 2019 | Dec. 29, 2016 | |
Lessee, Lease, Description [Line Items] | |||||||
Term of lease contract | 10 years | ||||||
Renewal term of lease contract | 5 years | ||||||
Lease expense | $ 0.7 | $ 0.7 | $ 1.4 | $ 1.4 | |||
Right of use asset amortization | 0.3 | 0.6 | |||||
Standby Letters of Credit | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Security deposit | $ 0.9 | ||||||
Forecast | Standby Letters of Credit | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Security deposit | $ 0.3 | $ 0.6 | |||||
4550 Towne Centre Court, San Diego, California | Financial Standby Letter of Credit | Letter of Credit | |||||||
Lessee, Lease, Description [Line Items] | |||||||
Cash collateral as security | $ 0.9 | $ 0.9 |
Leases (Lease liability maturit
Leases (Lease liability maturity) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 1,982 |
2020 | 4,058 |
2021 | 4,174 |
2022 | 4,294 |
2023 | 4,417 |
Thereafter | 18,134 |
Total future minimum lease payments | 37,059 |
Less: discount | (6,523) |
Total lease liability | $ 30,536 |
Deferred Royalty Obligation (De
Deferred Royalty Obligation (Details) - USD ($) | May 10, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||
Deferred royalty obligation, net | $ 124,351,000 | $ 124,351,000 | $ 124,323,000 | |||
Royalty Obligation Payable | 600,000 | 600,000 | ||||
HealthCare Royalty Partners | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from royalty agreement | $ 125,000,000 | |||||
Maximum potential royalty payout | 180.00% | |||||
Required payment for breach of agreement, payment one | $ 125,000,000 | |||||
Required payment for breach of agreement, payment two | 225,000,000 | |||||
HealthCare Royalty Partners | Loans Payable | Royalty Financing Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Deferred royalty obligation, net | 125,000,000 | 124,400,000 | 124,400,000 | |||
Debt issuance costs | $ 700,000 | |||||
Interest expense | 2,800,000 | $ 1,700,000 | 5,500,000 | $ 1,700,000 | ||
Unamortized debt discount | 600,000 | 600,000 | ||||
Accrued interest expense | 11,400,000 | 11,400,000 | 6,800,000 | |||
Royalty payments | 400,000 | 900,000 | ||||
HealthCare Royalty Partners | Period One | ||||||
Debt Instrument [Line Items] | ||||||
Maximum potential royalty payout | 10.00% | |||||
HealthCare Royalty Partners | Period Two | ||||||
Debt Instrument [Line Items] | ||||||
Increase in maximum potential payout percent | 4.00% | |||||
HealthCare Royalty Partners | Payout Period | ||||||
Debt Instrument [Line Items] | ||||||
Increase in maximum potential payout percent | 4.00% | |||||
Other Noncurrent Liabilities | HealthCare Royalty Partners | Loans Payable | Royalty Financing Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Accrued interest expense | $ 8,300,000 | $ 8,300,000 | $ 4,500,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | ||||
Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Jun. 30, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | |
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares issued upon conversion (in share) | 782,031 | |||||
Series F Convertible Preferred Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 0 | 2,737 | 2,737 | |||
Underwriting Agreement [Member] | ||||||
Class of Stock [Line Items] | ||||||
Number of shares of common stock issued (in shares) | 3,910,000 | |||||
Price per share (usd per share) | $ 29.50 | |||||
Proceeds from sale of stock | $ 115.3 | |||||
Proceeds, net of underwriting commissions | 109.8 | |||||
Sale of stock issuance costs | $ 5.5 | |||||
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Stock issued during period (in shares) | 43,056 | 782,000 | 3,910,000 | |||
Warrants exercised during period (in shares) | 83,013 | |||||
Warrants outstanding (in shares) | 10,000 |
Equity Incentive Plans (Narrati
Equity Incentive Plans (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jul. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unamortized share-based compensation expense | $ 49.9 | ||
Recognized weighted average period | 2 years 6 months 50 days | ||
2013 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 8,100,000 | ||
Shares available for grant (in shares) | 681,521 | ||
2018 Employee Stock Purchase Plan [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (in shares) | 633,771 | 750,000 |
Equity Incentive Plans (Stock O
Equity Incentive Plans (Stock Option Activity) (Details) - $ / shares | 1 Months Ended | 6 Months Ended |
Mar. 31, 2019 | Jun. 30, 2019 | |
Shares Underlying Stock Options | ||
Outstanding beginning balance, Shares underlying stock options and restricted stock awards (in shares) | 6,466,214 | |
Granted, Shares underlying stock options and restricted stock awards (in shares) | 1,923,030 | |
Forfeited, Shares underlying stock options and restricted stock awards (in shares) | (1,184,101) | |
Outstanding ending balance, Shares underlying stock options and restricted stock awards (in shares) | 7,205,143 | |
Weighted- Average Exercise Price per Share | ||
Outstanding beginning balance, Weighted - average exercise price (usd per share) | $ 23.26 | |
Granted, Weighted - average exercise price (usd per share) | 6.33 | |
Forfeited, Weighted - average exercise price (usd per share) | 20.84 | |
Outstanding ending balance, Weighted - average exercise price (usd per share) | $ 19.14 | |
Chief Commercial Officer [Member] | ||
Shares Underlying Stock Options | ||
Granted, Shares underlying stock options and restricted stock awards (in shares) | 80,000 | |
Employee Stock Option [Member] | Chief Commercial Officer [Member] | ||
Weighted- Average Exercise Price per Share | ||
Options vesting percentage | 25.00% | |
Award vesting period | 3 years |
Equity Incentive Plans (Share-b
Equity Incentive Plans (Share-based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 6,321 | $ 9,844 | $ 13,103 | $ 19,246 |
Research and development [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 3,960 | 5,701 | 7,893 | 11,097 |
Selling, General and Administrative Expenses [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 2,361 | $ 4,143 | ||
General and Administrative Expense [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 5,210 | $ 8,149 |
Uncategorized Items - ljpc-2019
Label | Element | Value |
Restricted Cash | us-gaap_RestrictedCash | $ 909,000 |
Restricted Cash | us-gaap_RestrictedCash | 909,000 |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (160,000) |