Financials

v3.10.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 151,459 $ 20,620
Short-term investments 805,468 181,041
Investment in Viking 59,796 0
Accounts receivable, net 42,001 25,596
Inventory 9,520 4,373
Derivative asset 399,409 0
Other current assets 12,817 5,391
Total current assets 1,480,470 237,021
Deferred income taxes 44,586 84,422
Investment in Viking 0 6,438
Intangible assets, net 222,001 228,584
Goodwill 85,961 85,959
Commercial license rights, net 20,437 19,526
Property and equipment, net 4,187 4,212
Other assets 642 4,859
Total assets 1,858,284 671,021
Current liabilities:    
Accounts payable 2,682 2,259
Accrued liabilities 9,312 7,377
Current contingent liabilities 7,495 4,703
Current deferred revenue, net 1,700 0
2019 convertible senior notes, net 210,370 224,529
Total current liabilities 632,850 238,868
2023 convertible senior notes, net 595,912
Long-term contingent liabilities 8,146 9,258
Other long-term liabilities 1,563 4,248
Total liabilities 1,238,471 252,374
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 June 30, 2018 and December 31, 2017, respectively 21 21
Additional paid-in capital 874,183 798,205
Accumulated other comprehensive (loss) income (151) 2,486
Accumulated deficit (254,240) (400,924)
Total stockholders' equity 619,813 399,788
Total liabilities and stockholders' equity 1,858,284 671,021
Derivative Liability, Current $ 401,291 $ 0

Source

v3.10.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Revenues:        
Total revenues $ 90,043 $ 27,995 $ 146,200 $ 57,264
Operating costs and expenses:        
Cost of sales [1] 1,134 903 1,922 1,244
Amortization of intangibles 3,305 2,706 6,584 5,420
Research and development 6,135 4,822 13,540 13,495
General and administrative 9,294 6,549 16,938 13,872
Total operating costs and expenses 19,868 14,980 38,984 34,031
Income from operations 70,175 13,015 107,216 23,233
Other (expense) income:        
Gain (loss) from Viking 39,963 (1,400) 61,808 (2,406)
Interest income 2,762 481 3,637 835
Interest expense (13,454) (3,341) (16,933) (6,638)
Other expense, net (3,867) (455) (4,835) (531)
Total other income (expense), net 25,404 (4,715) 43,677 (8,740)
Income before income taxes 95,579 8,300 150,893 14,493
Income tax expense (22,419) (2,242) (32,452) (3,356)
Net income $ 73,160 $ 6,058 $ 118,441 $ 11,137
Earnings Per Share, Basic and Diluted:        
Basic net income per share (USD per share) $ 3.45 $ 0.29 $ 5.58 $ 0.53
Shares used in basic per share calculations (shares) 21,212,000 21,013,000 21,209,000 20,975,000
Diluted net income per share (USD per share) $ 2.99 $ 0.26 $ 4.81 $ 0.48
Shares used in diluted per share calculations (shares) 24,437,922 23,215,900 24,618,249 23,117,164
Royalties        
Revenues:        
Total revenues $ 31,396 $ 14,211 $ 52,216 $ 38,441
Material sales        
Revenues:        
Total revenues 7,612 5,550 12,003 6,672
License fees, milestones and other revenues        
Revenues:        
Total revenues $ 51,035 $ 8,234 $ 81,981 $ 12,151
[1] Excludes amortization of intangibles.

Source

v3.10.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Operating activities    
Net income $ 118,441 $ 11,137
Adjustments to reconcile net income to net cash provided by operating activities:    
Non-cash change in estimated fair value of contingent liabilities 2,730 966
Payments to CVR holders and other contingent payments 0 (4,998)
Depreciation and amortization 6,013 5,564
Amortization of debt discount and issuance fees 15,455 5,720
Stock-based compensation 9,367 10,669
Deferred income taxes 32,263 3,224
Change in fair value of the Viking convertible debt receivable and warrants (8,450) 77
(Gain) / loss from equity investments (53,689) 2,330
Royalties recorded in retained earnings upon adoption of ASU 606 32,707 0
Changes in operating assets and liabilities:    
Accounts receivable (16,405) 1,263
Inventory (4,395) (4,286)
Accounts payable, accrued liabilities and Other 368 (2,056)
Net cash provided by operating activities 134,405 29,610
Investing activities    
Payments to CVR holders and other contingency payments (1,000) 0
Purchase of short-term investments (745,783) (124,282)
Proceeds received from repayment of Viking note receivable 3,914 0
Proceeds received from repayment of commercial license rights 0 2,859
Proceeds from sale of short-term investments 12,791 83,268
Proceeds from maturity of short-term investments 110,175 51,887
Other (416) (199)
Net cash (used in) provided by investing activities (620,319) 13,533
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
Net proceeds from stock option exercises and ESPP 11,849 2,370
Taxes paid related to net share settlement of equity awards (3,434) (4,042)
Share repurchase (52,727) 0
Net cash provided by (used in) provided by financing activities 616,753 (1,672)
Net increase in cash and cash equivalents 130,839 41,471
Cash and cash equivalents at beginning of period 20,620 18,752
Cash and cash equivalents at end of period 151,459 60,223
Supplemental disclosure of cash flow information    
Interest paid 919 919
Taxes paid 285 132
Supplemental schedule of non-cash activity    
Accrued fixed asset purchases 66 0
Accrued inventory purchases 752 0
Unrealized gain on AFS investments 0 24
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