Financials

v3.10.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 117,164 $ 20,620
Short-term investments 601,217 181,041
Investment in Viking 46,191 0
Accounts receivable, net 55,850 25,596
Note receivable from Viking 0 3,877
Inventory 7,124 4,373
Derivative asset 22,576 0
Other current assets 20,418 1,514
Total current assets 870,540 237,021
Deferred income taxes, net 46,521 84,422
Investment in Viking 0 6,438
Intangible assets, net 219,793 228,584
Goodwill 86,646 85,959
Commercial license rights 31,460 19,526
Property and equipment, net 5,372 4,212
Other assets 471 4,859
Total assets 1,260,803 671,021
Current liabilities:    
Accounts payable 4,183 2,259
Accrued liabilities 19,200 7,377
Current contingent liabilities 5,717 4,703
Deferred revenue 3,286 0
Derivative liability 23,430 0
2019 convertible senior notes, net 26,433 224,529
Total current liabilities 82,249 238,868
2023 convertible senior notes, net 609,864 0
Long-term contingent liabilities 6,825 9,258
Other long-term liabilities 951 4,248
Total liabilities 699,889 252,374
Commitments and contingencies
Equity component of currently redeemable convertible notes (Note 6) 0 18,859
Stockholders’ equity:    
Common stock, $0.001 par value; 60,000,000 and 33,333,333 shares authorized; 20,765,533 and 21,148,665 shares issued and outstanding at December 31, 2018 and 2017, respectively 21 21
Additional paid-in capital 791,114 798,205
Accumulated other comprehensive income (loss) (1,024) 2,486
Accumulated deficit (229,197) (400,924)
Total stockholders’ equity 560,914 399,788
Total liabilities and stockholders’ equity $ 1,260,803 $ 671,021

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v3.10.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Revenues:      
Total revenues $ 251,453 $ 141,102 $ 108,973
Operating costs and expenses:      
Cost of material sales 6,337 5,366 5,571
Amortization of intangibles 15,792 12,120 10,643
Research and development 27,863 26,887 21,221
General and administrative 37,734 28,653 27,653
Total operating costs and expenses 87,726 73,026 65,088
Income from operations 163,727 68,076 43,885
Other income (expense):      
Gain (loss) from Viking 50,187 (2,048) (23,132)
Interest income 13,999 2,060 664
Interest expense (48,276) (13,460) (12,842)
Other income (expense), net (6,307) 2,603 (615)
Total other income (expense), net 9,603 (10,845) (35,925)
Income before income tax expense 173,330 57,231 7,960
Income tax expense (30,009) (44,675) (10,327)
Income (loss) from operations 143,321 12,556 (2,367)
Discontinued operations:      
Gain on sale of Oncology Product Line before income taxes 0 0 1,139
Income tax expense on discontinued operations 0 0 (408)
Income from discontinued operations 0 0 731
Net income (loss) $ 143,321 $ 12,556 $ (1,636)
Basic per share amounts:      
Income (loss) from continuing operations (USD per share) [1] $ 6.77 $ 0.60 $ (0.11)
Income from discontinued operations (USD per share) [1] 0 0 0.04
Net income (loss) - Basic (USD per share) [1] 6.77 0.60 (0.08)
Diluted per share amounts:      
Income (loss) from continuing operations (USD per share) [1] 5.96 0.53 (0.11)
Income from discontinued operations (USD per share) [1] 0 0 0.04
Net (loss) income - Diluted (USD per share) [1] $ 5.96 $ 0.53 $ (0.08)
Weighted average common shares outstanding:      
Basic (shares) 21,160 21,032 20,831
Diluted (shares) 24,067 23,481 20,831
Royalties      
Revenues:      
Total revenues $ 128,556 $ 88,685 $ 59,423
Material sales      
Revenues:      
Total revenues 29,123 22,070 22,502
License fees, milestones and other revenues      
Revenues:      
Total revenues $ 93,774 $ 30,347 $ 27,048
[1] The sum of net income per share amounts may not equal the total due to rounding

Source

v3.10.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2018
Dec. 31, 2017
Dec. 31, 2016
Operating activities      
Net income (loss) $ 143,321 $ 12,556 $ (1,636)
Less: gain from discontinued operations 0 0 731
Income (loss) from continuing operations 143,321 12,556 (2,367)
Adjustments to reconcile net income to net cash provided by operating activities:      
Change in estimated fair value of contingent liabilities 3,448 2,580 3,334
Realized gain on sale of short-term investment (2,611) (831) (2,352)
Depreciation and amortization 14,718 11,714 11,290
Loss on equity investment in Viking (42,346) 2,048 23,132
Change in fair value of the convertible debt receivable from Viking and warrants (5,411) (4,032) (462)
Amortization of premium (discount) on investments, net (5,452) (81) 348
Amortization of debt discount and issuance fees 43,954 11,619 10,925
Stock-based compensation 20,846 24,915 18,893
Deferred income taxes 29,739 44,518 10,697
Royalties recorded in retained earnings upon adoption of ASC 606 32,707 0 0
Change in derivative asset and liability fair value 2,931 0 0
Changes in operating assets and liabilities, net of acquisition:      
Accounts receivable, net (29,544) (8,358) (8,525)
Inventory (2,559) (843) (244)
Other current assets (868) 402 526
Other long term assets 728 0 183
Accounts payable and accrued liabilities (4,542) (1,713) (2,369)
Contingent liabilities (3,842) (4,998) (2,268)
Deferred revenue (1,158) (926) (8)
Net cash provided by operating activities 194,059 88,570 60,733
Investing activities      
Purchase of commercial license rights (10,000) 0 (17,695)
Cash paid for acquisition, net of cash acquired (5,856) (26,653) (92,502)
Payments to CVR holders and other contingency payments (1,000) 0 0
Purchases of property and equipment (887) (2,156) (1,850)
Purchases of short-term investments (1,434,255) (254,258) (164,438)
Proceeds from sale of short-term investments 131,942 86,985 24,596
Proceeds from maturity of short-term investments 892,873 109,649 118,874
Proceeds from commercial license rights 0 7,054 0
Proceeds received from repayment of Viking note receivable 3,914 200 300
Net cash used in investing activities (423,269) (79,179) (134,415)
Financing activities      
Repayments of debt (217,674) 0 0
Gross proceeds from issuance of 2023 Convertible Senior Notes 750,000 0 0
Payment of debt issuance costs (16,900) 0 0
Proceeds from issuance of warrants 90,000 0 0
Purchase of convertible bond hedge (140,250) 0 0
Proceeds from bond hedge 439,559 0 0
Payments to convert holders for bond conversion (439,581) 0 0
Net proceeds from stock option exercises and ESPP 20,183 4,517 6,415
Taxes paid related to net share settlement of equity awards (3,765) (10,074) (999)
Share repurchases (122,868) (1,966) (3,901)
Repurchase of warrants (30,094) 0 0
Payments to CVR holders (25) 0 (6,509)
Net cash (used in) provided by financing activities 328,585 (7,523) (4,994)
Effect of exchange rate changes on cash (215) 0 0
Net increase (decrease) in cash and cash equivalents 99,375 1,868 (78,676)
Cash, cash equivalents, and restricted cash at end of year 119,780 20,620 18,752
Cash, cash equivalents, and restricted cash at beginning of year 20,620 18,752 97,428
Supplemental disclosure of cash flow information      
Interest paid 1,513 1,838 1,838
Taxes paid 341 157 38
Supplemental schedule of non-cash investing and financing activities      
Stock issued for acquisition, net of issuance cost 0 0 (77,331)
Stock and warrant received for repayment of Viking notes receivable 0 0 1,200
Accrued inventory purchases 2,059 1,007 646
Unrealized gain on AFS investments 48 144 (1,109)
Viking Therapeutics, Inc.      
Investing activities      
Common stock and warrants in equity method investments 0 0 (700)
Purchase of Common Stock      
Investing activities      
Common stock and warrants in equity method investments $ 0 $ 0 $ (1,000)

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