Financials

v3.10.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 115,560 $ 20,620
Restricted cash 43,646 0
Short-term investments 891,128 181,041
Investment in Viking 105,183 0
Accounts receivable, net 46,976 25,596
Inventory 8,136 4,373
Derivative asset 509,257 0
Other current assets 25,339 5,391
Total current assets 1,745,225 237,021
Deferred income taxes, net 32,440 84,422
Investment in Viking 0 6,438
Intangible assets, net 216,276 228,584
Goodwill 85,961 85,959
Commercial license rights, net 20,934 19,526
Property and equipment, net 4,407 4,212
Other assets 499 4,859
Total assets 2,105,742 671,021
Current liabilities:    
Accounts payable 1,647 2,259
Accrued liabilities 9,267 7,377
Current contingent liabilities 3,678 4,703
Deferred revenue 2,450 0
2019 convertible senior notes, net 213,144 224,529
Derivative liability 563,158 0
Total current liabilities 793,344 238,868
2023 convertible senior notes, net 602,839 0
Long-term contingent liabilities 9,053 9,258
Other long-term liabilities 986 4,248
Total liabilities 1,406,222 252,374
Commitments and contingencies
Equity component of currently redeemable convertible notes (Note 3) 0 18,859
Stockholders' equity:    
Common stock, $0.001 par value; 60,000,000 and 33,333,333 shares authorized; 21,095,174 and 21,148,665 shares issued and outstanding at September 30, 2018 and December 31, 2017, respectively 21 21
Additional paid-in capital 883,477 798,205
Accumulated other comprehensive income (loss) (64) 2,486
Accumulated deficit (183,914) (400,924)
Total stockholders' equity 699,520 399,788
Total liabilities and stockholders' equity $ 2,105,742 $ 671,021

Source

v3.10.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2018
Sep. 30, 2017
Revenues:        
Total revenues $ 45,663 $ 33,375 $ 191,863 $ 90,638
Operating costs and expenses:        
Cost of sales [1] 1,460 2,385 3,382 3,628
Amortization of intangibles 5,725 2,706 12,309 8,126
Research and development 5,483 4,759 19,023 18,254
General and administrative 9,633 7,032 26,571 20,904
Total operating costs and expenses 22,301 16,882 61,285 50,912
Income from operations 23,362 16,493 130,578 39,726
Other (expense) income:        
Gain (loss) from Viking 62,398 (1,019) 124,206 (3,350)
Interest income 5,474 564 9,111 1,403
Interest expense (11,200) (3,386) (28,133) (10,028)
Other expense, net (808) (581) (5,643) (1,185)
Total other income (expense), net 55,864 (4,422) 99,541 (13,160)
Income before income taxes 79,226 12,071 230,119 26,566
Income tax expense (11,864) (3,645) (44,316) (7,000)
Net income $ 67,362 $ 8,426 $ 185,803 $ 19,566
Earnings Per Share, Basic and Diluted:        
Basic net income per share (USD per share) $ 3.19 $ 0.40 $ 8.77 $ 0.93
Shares used in basic per share calculations (shares) 21,148,000 21,071,000 21,189,000 21,007,000
Diluted net income per share (USD per share) $ 2.80 $ 0.36 $ 7.61 $ 0.84
Shares used in diluted per share calculations (shares) 24,052,416 23,551,245 24,429,571 23,261,857
Royalties        
Revenues:        
Total revenues $ 36,127 $ 21,931 $ 88,343 $ 60,372
Material sales        
Revenues:        
Total revenues 7,027 7,664 19,030 14,336
License fees, milestones and other revenues        
Revenues:        
Total revenues $ 2,509 $ 3,780 $ 84,490 $ 15,930
[1] Excludes amortization of intangibles.

Source

v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Cash flows from operating activities:    
Net income $ 185,803 $ 19,566
Adjustments to reconcile net income to net cash provided by operating activities:    
Non-cash change in estimated fair value of contingent liabilities 3,637 2,302
Depreciation and amortization 11,421 7,581
Amortization of debt discount and issuance fees 25,155 8,647
Share-based compensation 14,837 15,917
Deferred income taxes 44,149 6,855
Change in fair value of Viking warrants (20,438) (426)
(Gain) / loss from investment in Viking (101,645) 3,350
Royalties recorded in retained earnings upon adoption of ASC 606 32,707 0
Changes in operating assets and liabilities:    
Accounts receivable, net (21,380) 1,909
Inventory (3,763) (1,985)
Accounts payable, accrued liabilities and Other (5,129) (1,458)
Contingent liabilities (3,867) (4,998)
Net cash provided by operating activities 161,487 57,260
Cash flows from investing activities:    
Payments to CVR holders and other contingency payments (1,000) 0
Purchase of short-term investments (1,158,290) (205,121)
Proceeds from sale of short-term investments 75,993 83,390
Proceeds from maturity of short-term investments 381,690 75,887
Other 3,036 2,839
Net cash used in investing activities (698,571) (43,005)
Cash flows from financing activities:    
Repayment of debt (21,785) 0
Gross proceeds from issuance of 2023 Convertible Senior Notes 750,000 0
Payment of debt issuance costs (16,900) 0
Proceeds from issuance of warrants 90,000 0
Purchase of convertible bond hedge (140,250) 0
Proceeds from convertible bond hedge settlement 52,129 0
Net proceeds from stock option exercises and ESPP 18,860 3,864
Taxes paid related to net share settlement of equity awards (3,657) (4,132)
Share repurchase (52,727) 0
Net cash provided by (used in) financing activities 675,670 (268)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total 138,586 13,987
Cash and cash equivalents and restricted cash at beginning of period 20,620 18,752
Cash and cash equivalents and restricted cash at end of period 159,206 32,739
Supplemental disclosure of cash flow information:    
Interest paid 1,513 1,838
Taxes paid 341 145
Supplemental schedule of non-cash activity:    
Accrued fixed asset purchases 4 1,700
Accrued inventory purchases 0 499
Unrealized gain on AFS investments 0 628
Excess of conversion value over the principal amount of 2019 Notes paid in shares (31,571) 0
Value of shares reacquired under convertible bond hedge transaction entered into with 2019 Notes $ 31,571 $ 0

Source