Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

v3.21.2
Basis of Presentation and Summary of Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2021
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):
Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
Royalties
Kyprolis $ 8,821  $ 6,923  $ 18,548  $ 16,809 
Evomela 2,665  1,802  7,191  4,577 
Other 4,162  280  5,637  1,365 
$ 15,648  $ 9,005  $ 31,376  $ 22,751 
Captisol $ 35,093  $ 23,389  $ 128,875  $ 68,966 
Contract revenue
Service Revenue $ 4,828  $ 7,341  $ 17,650  $ 15,280 
License Fees 200  158  2,293  1,793 
Milestone 7,419  960  19,436  4,766 
Other 1,647  995  5,030  2,873 
$ 14,094  $ 9,454  $ 44,409  $ 24,712 
Total $ 64,835  $ 41,848  $ 204,660  $ 116,429 
Schedule of Short-Term Investments Our short-term investments consist of the following at September 30, 2021 and December 31, 2020 (in thousands):
September 30, 2021 December 31, 2020
Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value Amortized cost Gross unrealized gains Gross unrealized losses Estimated fair value
     Bank deposits $ 47,739  $ $ (3) $ 47,744  $ 84,120  $ 35  $ (1) $ 84,154 
     Corporate bonds 25,914  50  —  25,964  30,512  99  (1) 30,610 
     Agency bonds 2,501  —  —  2,501  4,499  —  4,501 
     Commercial paper 23,264  10  —  23,274  45,459  27  (1) 45,485 
     Corporate equity securities 5,807  307  (723) 5,391  4,466  360  (1,388) 3,438 
     Mutual fund 152,041  53  —  152,094  151,512  386  —  151,898 
     Treasury bill —  —  —  —  3,999  —  —  3,999 
     Warrants —  642  —  642  —  393  —  393 
$ 257,266  $ 1,070  $ (726) $ 257,610  $ 324,567  $ 1,302  $ (1,391) $ 324,478 
     Viking common stock 42,171  32,763 
     Viking warrants —  6,326 
Total short-term investments $ 299,781  $ 363,567 
Schedule of Available-for-Sale Debt Securities The following table summarizes our available-for-sale debt securities by contractual maturity (in thousands):
September 30, 2021
Amortized Cost Fair Value
Within one year $ 76,055  $ 76,086 
After one year through five years 23,363  23,396 
Total $ 99,418  $ 99,482 
Schedule of Goodwill and Other Identifiable Intangible Assets Goodwill and other identifiable intangible assets consist of the following (in thousands):
September 30, December 31,
2021 2020
Indefinite-lived intangible assets
     Goodwill $ 190,183  $ 189,662 
Definite lived intangible assets
     Complete technology 280,173  277,740 
          Less: accumulated amortization (75,159) (63,600)
     Trade name 2,642  2,642 
          Less: accumulated amortization (1,411) (1,312)
     Customer relationships 40,700  40,700 
          Less: accumulated amortization (17,599) (15,597)
     Contractual relationships 362,000  362,000 
          Less: accumulated amortization (28,974) (7,243)
Total goodwill and other identifiable intangible assets, net $ 752,555  $ 784,992 
Schedule of Commercial License and Other Economic Rights
Commercial license and other economic rights consist of the following (in thousands):
September 30, 2021 December 31, 2020
Gross
Adjustments(1)
Net Gross
Adjustments(2)
Net
Commercial license rights $ 28,298  $ (17,550) $ 10,748  $ 28,298  $ (17,319) $ 10,979 
(1) Amounts represent accumulated amortization to principal of $11.6 million and credit loss adjustments of $6.0 million as of September 30, 2021.
(2) Amounts represent accumulated amortization to principal of $11.3 million and credit loss adjustments of $6.0 million as of December 31, 2020.
Schedule of Accrued Liabilities Accrued liabilities consist of the following (in thousands):
September 30, December 31,
2021 2020
Compensation $ 4,564  $ 8,810 
Professional fees 1,327  977 
Amounts owed to former licensees 579  421 
Royalties owed to third parties 103  693 
Return reserve 105  687 
Acquisition related liabilities 1,004  1,500 
Subcontractor —  733 
Supplier 1,031  604 
Accrued interest —  464 
Other 3,524  3,641 
     Total accrued liabilities $ 12,237  $ 18,530 
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):
Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
SBC - Research and development expenses $ 4,480  $ 3,094  $ 12,975  $ 8,510 
SBC - General and administrative expenses 5,274  4,646  15,400  12,242 
$ 9,754  $ 7,740  $ 28,375  $ 20,752 
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:
Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
Risk-free interest rate 0.8% 3% 0.5% 1%
Dividend yield
Expected volatility 48% 59% 61% 55%
Expected term 4.9 4.9 5.0 4.8
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):
Three months ended Nine months ended
September 30, September 30,
2021 2020 2021 2020
Weighted average shares outstanding: 16,688  16,082  16,595  16,222 
Dilutive potential common shares:
     Restricted stock 75  —  85  — 
     Stock options 379  —  507  — 
Shares used to compute diluted income per share 17,142  16,082  17,187  16,222 
Potentially dilutive shares excluded from calculation due to anti-dilutive effect 5,574  7,028  4,984  8,330