Financials

v3.7.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 60,223 $ 18,752
Short-term investments 112,404 122,296
Accounts receivable 13,462 14,700
Note receivable from Viking 3,207 3,207
Inventory 6,809 1,923
Other current assets 1,072 2,175
Total current assets 197,177 163,053
Deferred income taxes 138,837 123,891
Investment in Viking 6,014 8,345
Intangible assets, net 199,284 204,705
Goodwill 72,207 72,207
Commercial license rights, net 22,962 25,821
Property and equipment, net 1,875 1,819
Other assets 1,668 1,744
Total assets 640,024 601,585
Current liabilities:    
Accounts payable 1,799 2,734
Accrued liabilities 5,325 6,397
Current contingent liabilities 86 5,088
2019 Convertible Senior Notes, net 218,630 212,910
Total current liabilities 225,840 227,129
Long-term contingent liabilities 3,860 2,916
Other long-term liabilities 915 687
Total liabilities 230,615 230,732
Commitments and Contingencies
Equity component of currently redeemable convertible notes (Note 5) 24,293 29,563
Stockholders' equity:    
Common stock, $0.001 par value; 33,333,333 shares authorized; 21,049,741 and 20,909,301 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively 21 21
Additional paid-in capital 784,376 769,653
Accumulated other comprehensive income 3,059 2,743
Accumulated deficit (402,340) (431,127)
Total stockholders' equity 385,116 341,290
Total liabilities and stockholders' equity $ 640,024 $ 601,585

Source

v3.7.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Jun. 30, 2017
Jun. 30, 2016
Revenues:        
Royalties $ 14,211 $ 9,754 $ 38,441 $ 24,144
Material sales 5,550 3,886 6,672 9,227
License fees, milestones and other revenues 8,234 5,881 12,151 15,798
Total revenues 27,995 19,521 57,264 49,169
Operating costs and expenses:        
Cost of sales [1] 903 720 1,244 1,675
Amortization of intangibles 2,706 2,681 5,420 5,206
Research and development 4,822 4,914 13,495 8,915
General and administrative 6,549 7,237 13,872 14,309
Total operating costs and expenses 14,980 15,552 34,031 30,105
Income from operations 13,015 3,969 23,233 19,064
Other (expense) income:        
Interest expense, net (2,860) (3,051) (5,803) (6,055)
Increase in contingent liabilities (825) (332) (966) (1,638)
Loss from Viking (1,248) (11,138) (2,330) (12,743)
Other income, net 218 501 359 892
Total other expense, net (4,715) (14,020) (8,740) (19,544)
Income before income taxes 8,300 (10,051) 14,493 (480)
Income tax (expense) benefit (2,242) 3,881 (3,356) 187
Income (loss) from operations 6,058 (6,170) 11,137 (293)
Gain on sale of Oncology Product Line before income taxes 0 0 0 1,139
Income tax expense on discontinued operations 0 0 0 (408)
Income from discontinued operations 0 0 0 731
Net income (loss) $ 6,058 $ (6,170) $ 11,137 $ 438
Basic earnings (loss) per share data        
Income (loss) from continuing operations (in usd per share) [2] $ 0.29 $ (0.30) $ 0.53 $ (0.01)
Income from discontinued operations (in usd per share) [2] 0.00 0.00 0.00 0.04
Net income (loss) (in usd per share) 0.29 [2] (0.30) [2] 0.53 [2] 0.02
Diluted earnings per share data (2)        
Income (loss) from continuing operations (in usd per share) [2] 0.26 (0.30) 0.48 (0.01)
Income from discontinued operations (in usd per share) [2] 0.00 0.00 0.00 0.04
Net income (loss) (in usd per share) $ 0.26 [2] $ (0.30) $ 0.48 $ 0.02
Shares used for computation (in thousands)        
Basic (in shares) 21,013,000 20,832,000 20,975,000 20,765,000
Diluted (in shares) 23,215,900 20,831,809 23,117,164 20,765,053
[1] Excludes amortization of intangibles.
[2] The sum of net income per share amounts may not equal the totals due to rounding.

Source

v3.7.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2017
Jun. 30, 2016
Operating activities    
Net income $ 11,137 $ 438
Less: income from discontinued operations 0 731
Income (loss) from continuing operations 11,137 (293)
Adjustments to reconcile net income to net cash provided by operating activities:    
Non-cash change in estimated fair value of contingent liabilities 966 1,638
Realized gain on sale of short-term investment (248) (602)
Depreciation and amortization 5,564 5,388
Amortization of premium (discount) on investments, net (44) 331
Amortization of debt discount and issuance fees 5,720 5,378
Stock-based compensation 10,669 8,766
Deferred income taxes 3,224 187
Change in fair value of the Viking convertible debt receivable and warrants 77 (310)
Loss from Viking 2,330 12,743
Changes in operating assets and liabilities:    
Accounts receivable 1,263 (3,791)
Inventory (4,286) (2,202)
Other current assets 314 (629)
Accounts payable and accrued liabilities (2,153) (3,323)
Other 75 204
Net cash provided by operating activities 34,608 23,485
Investing activities    
Purchase of commercial license rights 0 (17,691)
Payments to CVR holders and other contingency payments (4,998) (5,635)
Purchases of property and equipment (199) (1,021)
Cash paid for acquisition, net of cash acquired 0 (92,504)
Purchase of short-term investments (124,282) (49,892)
Purchase of Viking common stock and warrants 0 (700)
Proceeds received from repayment of Viking note receivable 0 300
Proceeds received from repayment of commercial license rights 2,859 0
Proceeds from sale of short-term investments 83,268 22,077
Proceeds from maturity of short-term investments 51,887 83,523
Net cash provided (used) in investing activities 8,535 (61,543)
Financing activities    
Net proceeds from stock option exercises and ESPP 2,370 2,482
Taxes paid related to net share settlement of equity awards (4,042) 0
Share repurchase 0 (502)
Net cash (used in) provided by financing activities (1,672) 1,980
Net increase (decrease) in cash and cash equivalents 41,471 (36,078)
Cash and cash equivalents at beginning of period 18,752 97,428
Cash and cash equivalents at end of period 60,223 61,350
Supplemental disclosure of cash flow information    
Interest paid 919 919
Taxes paid 132 36
Supplemental schedule of non-cash activity    
Stock issued for acquisition, net of issuance cost 0 (77,615)
Stock and warrant received for repayment of Viking notes receivable 0 1,200
Unrealized gain (loss) on AFS investments $ 24 $ (1,198)

Source