Financials

v3.6.0.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2016
Dec. 31, 2015
Current assets:    
Cash and cash equivalents $ 18,752 $ 97,428
Short-term investments 122,296 102,791
Accounts receivable, net 14,700 6,170
Note receivable from Viking 3,207 4,782
Inventory 1,923 1,633
Other current assets 2,175 1,908
Total current assets 163,053 214,712
Deferred income taxes 123,891 189,083
Investment in Viking 8,345 29,728
Intangible assets, net 204,705 48,347
Goodwill 72,207 12,238
Commercial license rights 25,821 8,554
Property and equipment, net 1,819 372
Other assets 1,744 27
Total assets 601,585 503,061
Current liabilities:    
Accounts payable 2,734 4,083
Accrued liabilities 6,397 5,405
Current contingent liabilities 5,088 10,414
Current lease exit obligations   934
2019 convertible senior notes, net 212,910 201,985
Total current liabilities 227,129 222,821
Long-term contingent liabilities 2,916 3,033
Other long-term liabilities 687 297
Total liabilities 230,732 226,151
Commitments and contingencies
Equity component of currently redeemable convertible notes (Note 5) 29,563 39,628
Stockholders’ equity:    
Common stock, $0.001 par value; 33,333,333 shares authorized; 20,909,301 and 19,949,012 shares issued and outstanding at December 31, 2016 and 2015, respectively 21 20
Additional paid-in capital 769,653 661,850
Accumulated other comprehensive income 2,743 4,903
Accumulated deficit (431,127) (429,491)
Total stockholders’ equity 341,290 237,282
Total liabilities and stockholders’ equity $ 601,585 $ 503,061

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v3.6.0.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Revenues:      
Royalties $ 59,423 $ 38,194 $ 29,994
Material sales 22,502 27,662 28,488
License fees, milestones and other revenues 27,048 6,058 6,056
Total revenues 108,973 71,914 64,538
Operating costs and expenses:      
Cost of sales [1] 5,571 5,807 9,136
Amortization of intangibles 10,643 2,375 2,375
Research and development 21,221 11,005 9,747
General and administrative 26,621 24,378 22,570
Lease exit and termination costs 1,032 1,020 1,084
Total operating costs and expenses 65,088 44,585 44,912
Income from operations 43,885 27,329 19,626
Other (expense) income:      
Interest expense, net (12,178) (11,802) (4,860)
Increase in contingent liabilities (3,334) (5,013) (5,135)
Gain on deconsolidation of Viking 0 28,190 0
Loss from Viking (23,132) (5,143) 0
Other income, net 2,719 1,768 1,671
Total other income (expense), net (35,925) 8,000 (8,324)
Income before income tax benefit (expense) 7,960 35,329 11,302
Income tax benefit (expense) (10,327) 192,115 (410)
Income (loss) from operations (2,367) 227,444 10,892
Discontinued operations:      
Gain on sale of Oncology Product Line before income taxes 1,139 0 0
Income tax expense on discontinued operations (408) 0 0
Income from discontinued operations 731 0 0
Net (loss) income including noncontrolling interests: (1,636) 227,444 10,892
Less: Net loss attributable to noncontrolling interests 0 (2,380) (1,132)
Net (loss) income $ (1,636) $ 229,824 $ 12,024
Basic per share amounts(1):      
Income (loss) from continuing operations (in usd per share) [2] $ (0.11) $ 11.61 $ 0.59
Income from discontinued operations (in usd per share) [2] 0.04 0.00 0.00
Net income (in usd per share) [2] $ (0.08) $ 11.61 $ 0.59
Weighted average shares outstanding (shares): 20,831 19,790 20,419
Diluted per share amounts(1):      
Income (loss) from continuing operations (in usd per share) [2] $ (0.11) $ 10.83 $ 0.56
Income from discontinued operations (in usd per share) [2] 0.04 0.00 0.00
Net (loss) income (in usd per share) [2] $ (0.08) $ 10.83 $ 0.56
Weighted average number of common shares-diluted (shares) 20,831 21,228 21,433
[1] Excludes amortization of intangibles
[2] The sum of net income per share amounts may not equal the total due to rounding

Source

v3.6.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Operating activities      
Net (loss) income $ (1,636) $ 227,444 $ 10,892
Less: gain from discontinued operations 731 0 0
Income (loss) from continuing operations (2,367) 227,444 10,892
Adjustments to reconcile net income to net cash used in operating activities:      
Change in estimated fair value of contingent liabilities 3,334 5,013 5,135
Realized gain on sale of short-term investment (2,352) (2,603) (1,538)
Gain on disposal of assets 183 0 0
Depreciation and amortization 11,290 2,627 2,657
Gain on deconsolidation of Viking 0 (28,190) 0
Loss on equity investment in Viking 23,132 5,143 0
Change in fair value of the convertible debt receivable from Viking and warrants (462) 765 0
Amortization of Premium (discount) on investments, net 348 0 0
Amortization of debt discount and issuance fees 10,925 10,274 3,694
Non-cash milestone revenue 0 0 (1,211)
Stock-based compensation 18,893 12,458 11,270
Deferred income taxes 10,697 (192,132) 410
Other 0 107 206
Changes in operating assets and liabilities, net of acquisition:      
Accounts receivable, net (8,525) 6,489 (10,412)
Inventory (244) (401) 4,369
Restricted cash 0 1,261 0
Other current assets 558 51 (426)
Other long term assets (32) (325) (1,439)
Accounts payable and accrued liabilities (2,369) (4,027) (3,121)
Deferred revenue (8) (2,227) 80
Net cash provided by operating activities of continuing operations 63,001 41,727 20,566
Net cash used in operating activities of discontinued operations 0 0 0
Net cash provided by operating activities 63,001 41,727 20,566
Investing activities      
Purchase of commercial license rights (17,695) (4,030) (1,000)
Reduction of cash due to deconsolidation of Viking 0 (247) 0
Purchase of commercial license rights (92,502) 0 0
Payments to CVR holders and other contingency payments (8,777) (6,740) (3,493)
Purchases of property and equipment (1,850) (93) (6)
Purchases of short-term investments (164,438) (166,025) 0
Proceeds from sale of short-term investments 24,596 16,039 2,342
Proceeds from maturity of short-term investments 118,874 57,234 0
Proceeds received from repayment of Viking note receivable 300 0 0
Other, net 0 0 130
Net cash used in investing activities (143,192) (112,862) (2,027)
Financing activities      
Repayment of debt 0 0 (9,366)
Gross proceeds from issuance of 2019 Convertible Senior Notes 0 0 245,000
Payment of debt issuance costs 0 0 (5,711)
Proceeds from issuance of warrants 0 0 11,638
Purchase of convertible bond hedge 0 0 (48,143)
Net proceeds from stock option exercises and ESPP 6,415 8,849 4,561
Taxes paid related to net share settlement of equity awards (999) 0 0
Share repurchases (3,901) (489) (67,954)
Net cash provided by financing activities 1,515 8,360 130,025
Net (decrease) increase in cash and cash equivalents (78,676) (62,775) 148,564
Cash and cash equivalents at beginning of year 97,428 160,203 11,639
Cash and cash equivalents at end of year 18,752 97,428 160,203
Supplemental disclosure of cash flow information      
Interest paid 1,838 1,822 494
Taxes paid 38 28 18
Supplemental schedule of non-cash investing and financing activities      
Stock issued for acquisition, net of issuance cost (77,331) 0 0
Stock and warrant received for repayment of Viking notes receivable 1,200 0 0
Accrued inventory purchases 646 1,333 3,246
Unrealized gain on AFS investments (1,109) 3,005 3,872
Viking Therapeutics, Inc.      
Investing activities      
Purchase of Viking common stock and warrant (700) (9,000) 0
Purchase of Common Stock [Member]      
Investing activities      
Purchase of Viking common stock and warrant $ (1,000) $ 0 $ 0

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