Financials

v3.7.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2017
Dec. 31, 2016
Current assets:    
Cash and cash equivalents $ 10,641 $ 18,752
Short-term investments 148,733 122,296
Accounts receivable 7,057 14,700
Note receivable from Viking 0 3,207
Inventory 7,629 1,923
Other current assets 641 2,175
Total current assets 174,701 163,053
Deferred income taxes 141,007 123,891
Investment in Viking 7,262 8,345
Note receivable from Viking 3,207 0
Intangible assets, net 201,990 204,705
Goodwill 72,207 72,207
Commercial license rights, net 25,630 25,821
Property and equipment, net 1,898 1,819
Other assets 1,821 1,744
Total assets 629,723 601,585
Current liabilities:    
Accounts payable 6,456 2,734
Accrued liabilities 4,680 6,397
Current contingent liabilities 111 5,088
2019 Convertible Senior Notes, net 215,748 212,910
Total current liabilities 226,995 227,129
Long-term contingent liabilities 3,035 2,916
Other long-term liabilities 915 687
Total liabilities 230,945 230,732
Commitments and Contingencies
Equity component of currently redeemable convertible notes (Note 5) 26,948 29,563
Stockholders' equity:    
Common stock, $0.001 par value; 33,333,333 shares authorized; 20,996,049 and 20,909,301 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively 21 21
Additional paid-in capital 777,102 769,653
Accumulated other comprehensive income 3,105 2,743
Accumulated deficit (408,398) (431,127)
Total stockholders' equity 371,830 341,290
Total liabilities and stockholders' equity $ 629,723 $ 601,585

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v3.7.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Revenues:    
Royalties $ 24,230 $ 14,390
Material sales 1,121 5,341
License fees, milestones and other revenues 3,916 9,917
Total revenues 29,267 29,648
Operating costs and expenses:    
Cost of sales [1] 341 955
Amortization of intangibles 2,715 2,524
Research and development 8,673 4,004
General and administrative 7,322 7,069
Total operating costs and expenses 19,051 14,552
Income from operations 10,216 15,096
Other (expense) income:    
Interest expense, net (2,941) (3,005)
Increase in contingent liabilities (140) (1,306)
Loss from Viking (1,083) (1,605)
Other income, net 141 391
Total other expense, net (4,023) (5,525)
Income before income taxes 6,193 9,571
Income tax expense (1,114) (3,694)
Income from operations 5,079 5,877
Gain on sale of Oncology Product Line before income taxes 0 1,139
Income tax expense on discontinued operations 0 (408)
Income from discontinued operations 0 731
Net income $ 5,079 $ 6,608
Basic earnings per share data(2)    
Income from continuing operations (in usd per share) [2] $ 0.24 $ 0.28
Income from discontinued operations (in usd per share) [2] 0.00 0.04
Net income (in usd per share) [2] 0.24 0.32
Diluted earnings per share data (2)    
Income from continuing operations (in usd per share) [2] 0.22 0.26
Income from discontinued operations (in usd per share) [2] 0.00 0.03
Net income (in usd per share) $ 0.22 [2] $ 0.30
Shares used for computation (in thousands)    
Basic (in shares) 20,938,000 20,708,000
Diluted (in shares) 23,019,189 22,283,979
[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
3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Operating activities    
Net income $ 5,079 $ 6,608
Less: income from discontinued operations 0 731
Income from continuing operations 5,079 5,877
Adjustments to reconcile net income to net cash provided by operating activities:    
Non-cash change in estimated fair value of contingent liabilities 140 1,306
Realized gain on sale of short-term investment (66) (406)
Depreciation and amortization 2,979 2,575
Amortization of premium (discount) on investments, net (46) 320
Amortization of debt discount and issuance fees 2,838 2,668
Stock-based compensation 6,045 4,118
Deferred income taxes 1,018 4,101
Change in fair value of the Viking convertible debt receivable and warrants (76) 15
Loss from Viking 1,083 1,605
Changes in operating assets and liabilities:    
Accounts receivable 7,643 (5,604)
Inventory (1,197) 853
Other current assets 745 16
Accounts payable and accrued liabilities (1,963) (4,302)
Other 0 (28)
Net cash provided by operating activities 24,222 13,114
Investing activities    
Payments to CVR holders and other contingency payments (4,998) (5,446)
Purchases of property and equipment (87) (238)
Cash paid for acquisition, net of cash acquired 0 (92,855)
Purchase of short-term investments (73,352) (49,892)
Proceeds from sale of short-term investments 17,719 20,270
Proceeds from maturity of short-term investments 30,052 48,401
Net cash used in investing activities (30,666) (79,760)
Financing activities    
Net proceeds from stock option exercises and ESPP 355 1,013
Taxes paid related to net share settlement of equity awards (2,022) 0
Share repurchase 0 (502)
Net cash (used in) provided by financing activities (1,667) 511
Net decrease in cash and cash equivalents (8,111) (66,135)
Cash and cash equivalents at beginning of period 18,752 97,428
Cash and cash equivalents at end of period 10,641 31,293
Supplemental disclosure of cash flow information    
Interest paid 919 919
Taxes paid 96 1
Supplemental schedule of non-cash activity    
Stock issued for acquisition, net of issuance cost 0 (77,615)
Accrued inventory purchases 3,909 600
Unrealized loss on AFS investments $ (66) $ (1,834)

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