Basis of Presentation and Summary of Significant Accounting Policies (Tables)
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9 Months Ended |
Sep. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
|
Schedule of Revenue by Source |
The following table represents disaggregation of royalties, Captisol and contract revenue (in thousands):
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2020 |
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2019 |
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2020 |
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2019 |
Royalties |
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Kyprolis |
$ |
6,923 |
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$ |
7,602 |
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$ |
16,809 |
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$ |
16,317 |
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Evomela |
1,802 |
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|
1,515 |
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4,577 |
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3,570 |
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Other |
280 |
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|
650 |
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1,365 |
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|
1,851 |
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Promacta |
— |
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— |
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— |
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14,193 |
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$ |
9,005 |
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$ |
9,767 |
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$ |
22,751 |
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$ |
35,931 |
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Captisol |
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$ |
23,389 |
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$ |
6,849 |
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$ |
68,966 |
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$ |
24,357 |
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Contract |
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Service Revenue |
$ |
7,341 |
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$ |
4,548 |
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$ |
15,280 |
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$ |
12,990 |
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License Fees |
158 |
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243 |
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1,793 |
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3,083 |
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Milestone |
960 |
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2,674 |
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4,766 |
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15,425 |
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Other |
995 |
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|
727 |
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2,873 |
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1,493 |
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$ |
9,454 |
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$ |
8,192 |
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$ |
24,712 |
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$ |
32,991 |
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Total |
$ |
41,848 |
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$ |
24,808 |
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$ |
116,429 |
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$ |
93,279 |
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Schedule of Short-Term Investments |
Our investments, excluding investment in Viking, consist of the following at September 30, 2020 and December 31, 2019 (in thousands):
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September 30, 2020 |
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December 31, 2019 |
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Amortized cost |
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Gross unrealized gains |
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Gross unrealized losses |
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Estimated fair value |
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Amortized cost |
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Gross unrealized gains |
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Gross unrealized losses |
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Estimated fair value |
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Short-term investments |
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Bank deposits |
$ |
68,226 |
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$ |
101 |
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$ |
— |
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$ |
68,327 |
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$ |
411,690 |
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$ |
188 |
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$ |
(3) |
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$ |
411,875 |
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Corporate bonds |
27,125 |
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|
102 |
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— |
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27,227 |
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63,818 |
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|
161 |
|
|
— |
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63,979 |
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Commercial paper |
47,943 |
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|
60 |
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— |
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48,003 |
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210,525 |
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43 |
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(16) |
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210,552 |
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Corporate equity securities |
4,484 |
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|
415 |
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(2,624) |
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2,275 |
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4,506 |
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|
416 |
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(1,850) |
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|
3,072 |
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Mutual fund |
151,513 |
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|
204 |
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— |
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151,717 |
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|
250,635 |
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— |
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(249) |
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250,386 |
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Warrants |
— |
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|
155 |
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— |
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|
155 |
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— |
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|
125 |
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— |
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|
125 |
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$ |
299,291 |
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$ |
1,037 |
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$ |
(2,624) |
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$ |
297,704 |
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$ |
941,174 |
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$ |
933 |
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$ |
(2,118) |
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$ |
939,989 |
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Schedule of Available-for-Sale Debt Securities |
The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):
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September 30, 2020 |
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Amortized Cost |
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Fair Value |
Within one year |
$ |
121,452 |
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$ |
121,610 |
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After one year through five years |
21,842 |
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21,947 |
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After five years |
— |
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— |
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Total |
$ |
143,294 |
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$ |
143,557 |
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The following table summarizes our available-for-sale debt securities in an unrealized loss position (in thousands):
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Less than 12 months |
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12 months or greater |
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Total |
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Gross Unrealized Losses |
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Estimated Fair Value |
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Gross Unrealized Losses |
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Estimated Fair Value |
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Gross Unrealized Losses |
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Estimated Fair Value |
September 30, 2020 |
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Bank deposits |
$ |
— |
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$ |
5,011 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
5,011 |
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Corporate bonds |
(0.4) |
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|
3,007 |
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— |
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— |
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(0.4) |
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|
3,007 |
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Total |
$ |
(0.4) |
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$ |
8,018 |
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$ |
— |
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$ |
— |
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$ |
(0.4) |
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$ |
8,018 |
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December 31, 2019 |
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Bank deposits |
$ |
(3) |
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$ |
58,584 |
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$ |
— |
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$ |
— |
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$ |
(3) |
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$ |
58,584 |
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Commercial paper |
(16) |
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|
79,363 |
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— |
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— |
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(16) |
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|
79,363 |
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Total |
$ |
(19) |
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$ |
137,947 |
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$ |
— |
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$ |
— |
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$ |
(19) |
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$ |
137,947 |
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Schedule of Goodwill and Other Identifiable Intangible Assets |
Goodwill and other identifiable intangible assets consist of the following (in thousands):
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September 30, |
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December 31, |
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2020 |
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2019 |
Goodwill |
$ |
102,136 |
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$ |
95,229 |
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Definite lived intangible assets |
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Complete technology |
257,317 |
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|
242,813 |
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Less: accumulated amortization(1)
|
(59,869) |
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|
(50,203) |
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Trade name |
2,642 |
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|
2,642 |
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Less: accumulated amortization |
(1,279) |
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|
(1,180) |
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Customer relationships |
40,700 |
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|
29,600 |
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Less: accumulated amortization |
(14,929) |
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(13,224) |
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Total goodwill and other identifiable intangible assets, net |
$ |
326,718 |
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$ |
305,677 |
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(1) Accumulated amortization for complete technology includes immaterial amount of foreign currency translation adjustments for the complete technology acquired from the Vernalis acquisition.
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Schedule of Commercial License Rights |
Commercial license and other economic rights consist of the following (in thousands):
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September 30, 2020 |
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December 31, 2019 |
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Gross |
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Adjustments(1)
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Net |
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Gross |
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Adjustments(2)
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Net |
Aziyo and CorMatrix |
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$ |
17,696 |
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$ |
(9,644) |
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$ |
8,052
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$ |
17,696 |
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$ |
(5,500) |
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$ |
12,196
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Palvella |
|
10,000 |
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(10,000) |
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—
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|
10,000 |
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(7,492) |
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|
2,508
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Selexis and Dianomi |
|
10,602 |
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(7,820) |
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|
2,782
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10,602 |
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(5,216) |
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|
5,386
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Total |
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$ |
38,298 |
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$ |
(27,464) |
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$ |
10,834
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$ |
38,298 |
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$ |
(18,208) |
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$ |
20,090
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(1) Amounts represent accumulated amortization to principal or research and development expenses of $21.5 million and credit loss adjustments of $6.0 million as of September 30, 2020.
(2) Amounts represent accumulated amortization to principal or research and development expenses as of December 31, 2019.
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Schedule of Other Assets |
Other assets consist of the following (in thousands):
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September 30, |
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December 31, |
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2020 |
|
2019 |
Captisol manufacturing ramp up fee |
|
$ |
9,215 |
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|
$ |
— |
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Long-term investment receivable |
|
2,000 |
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|
— |
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Equity investment |
|
813 |
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|
750 |
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Deposits |
|
138 |
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|
219 |
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Other |
|
1,538 |
|
|
1,388 |
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Total other assets
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$ |
13,704 |
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$ |
2,357 |
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Schedule of Accrued Liabilities |
Accrued liabilities consist of the following (in thousands):
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September 30, |
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December 31, |
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2020 |
|
2019 |
Compensation |
|
$ |
4,840 |
|
|
$ |
1,986 |
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Professional fees |
|
1,226 |
|
|
1,135 |
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Amounts owed to former licensees |
|
407 |
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|
381 |
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Royalties owed to third parties |
|
805 |
|
|
— |
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Return reserve |
|
2,835 |
|
|
3,027 |
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Current operating lease liabilities |
|
1,029 |
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|
1,242 |
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Accrued interest |
|
1,437 |
|
|
690 |
|
Other |
|
1,919 |
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|
1,375 |
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Total accrued liabilities
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$ |
14,498 |
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$ |
9,836 |
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Schedule of Accounting for Share-Based Compensation |
The following table summarizes share-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2020 |
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2019 |
|
2020 |
|
2019 |
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SBC - Research and development expenses |
$ |
3,094 |
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$ |
2,481 |
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$ |
8,510 |
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$ |
7,136 |
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SBC - General and administrative expenses |
4,646 |
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|
3,816 |
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|
12,242 |
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|
11,079 |
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$ |
7,740 |
|
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$ |
6,297 |
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$ |
20,752 |
|
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$ |
18,215 |
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Schedule of Fair-Value Options Awarded to Employees and Directors |
The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
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2020 |
|
2019 |
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|
2020 |
|
2019 |
Risk-free interest rate |
0.3% |
|
1.6% |
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|
1.0% |
|
2.4% |
Dividend yield |
— |
|
— |
|
|
— |
|
— |
Expected volatility |
59% |
|
41% |
|
|
55% |
|
43% |
Expected term |
4.9 |
|
5.3 |
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|
4.8 |
|
5.2 |
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Schedule of Computation of Basic and Diluted Earnings per Share |
The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share (in thousands):
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Three months ended |
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Nine months ended |
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September 30, |
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September 30, |
|
2020 |
|
2019 |
|
|
2020 |
|
2019 |
Weighted average shares outstanding: |
16,082 |
|
|
18,770 |
|
|
|
16,222 |
|
|
19,586 |
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Dilutive potential common shares: |
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Restricted stock |
— |
|
|
— |
|
|
|
— |
|
|
35 |
|
Stock options |
— |
|
|
— |
|
|
|
— |
|
|
728 |
|
Shares used to compute diluted income per share |
16,082 |
|
|
18,770 |
|
|
|
16,222 |
|
|
20,349 |
|
Potentially dilutive shares excluded from calculation due to anti-dilutive effect |
7,028 |
|
|
11,549 |
|
|
|
8,330 |
|
|
8,694 |
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