Financials

v3.8.0.1
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 51,024 $ 20,620
Short-term investments 213,329 181,041
Investment in Viking 27,535 0
Accounts receivable, net 37,108 25,596
Note receivable from Viking 3,877 3,877
Inventory 10,531 4,373
Other current assets 5,647 1,514
Total current assets 349,051 237,021
Deferred income taxes 69,368 84,422
Investment in Viking 0 6,438
Intangible assets, net 225,306 228,584
Goodwill 85,961 85,959
Commercial license rights, net 19,969 19,526
Property and equipment, net 4,119 4,212
Other assets 894 4,859
Total assets 754,668 671,021
Current liabilities:    
Accounts payable 3,407 2,259
Accrued liabilities 8,480 7,377
Current contingent liabilities 7,545 4,703
2019 convertible senior notes, net 227,547 224,529
Total current liabilities 246,979 238,868
Long-term contingent liabilities 6,376 9,258
Long-term deferred revenue, net 3,000 3,525
Other long-term liabilities 1,135 723
Total liabilities 257,490 252,374
Commitments and contingencies
Equity component of currently redeemable convertible notes (Note 3) 16,078 18,859
Stockholders' equity:    
Common stock, $0.001 par value; 33,333,333 shares authorized; 21,301,980 and 21,148,665 shares issued and outstanding at March 31, 2018 and December 31, 2017, respectively 21 21
Additional paid-in capital 808,765 798,205
Accumulated other comprehensive (loss) income (286) 2,486
Accumulated deficit (327,400) (400,924)
Total stockholders' equity 481,100 399,788
Total liabilities and stockholders' equity $ 754,668 $ 671,021

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v3.8.0.1
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Revenues:    
Royalties $ 20,820 $ 24,230
Material sales 4,391 1,121
License fees, milestones and other revenues 30,946 3,916
Total revenues 56,157 29,267
Operating costs and expenses:    
Cost of sales [1] 788 341
Amortization of intangibles 3,278 2,715
Research and development 7,407 8,673
General and administrative 7,643 7,322
Total operating costs and expenses 19,116 19,051
Income from operations 37,041 10,216
Other (expense) income:    
Interest expense, net (2,605) (2,941)
Increase in contingent liabilities (960) (140)
Gain (loss) from Viking 21,097 (1,083)
Other income, net 739 141
Total other income (expense), net 18,271 (4,023)
Income before income taxes 55,312 6,193
Income tax expense (10,033) (1,114)
Net income $ 45,279 $ 5,079
Per share amounts:    
Basic net income per share (USD per share) $ 2.13 $ 0.24
Shares used in basic per share calculations (shares) 21,209,000 20,938,000
Diluted net income per share (USD per share) $ 1.83 $ 0.22
Shares used in diluted per share calculations (shares) 24,800,314 23,019,189
[1] Excludes amortization of intangibles.

Source

v3.8.0.1
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2018
Mar. 31, 2017
Operating activities    
Net income $ 45,279 $ 5,079
Adjustments to reconcile net income to net cash provided by operating activities:    
Non-cash change in estimated fair value of contingent liabilities 960 140
Depreciation and amortization 3,002 2,979
Amortization of debt discount and issuance fees 3,018 2,838
Stock-based compensation 4,555 6,045
Deferred income taxes 9,862 1,018
Change in fair value of the Viking convertible debt receivable and warrants (748) (76)
(Gain) / loss from equity investments (21,183) 1,083
Changes in operating assets and liabilities:    
Payments to CVR holders and other contingency payments 0 (4,998)
Royalties recorded in retained earnings upon adoption of ASU 606 32,707 0
Accounts receivable (11,512) 7,643
Inventory (4,978) (1,197)
Accounts payable and accrued liabilities 321 (1,963)
Other (522) 633
Net cash provided by operating activities 60,761 19,224
Investing activities    
Payments to CVR holders and other contingency payments (1,000) 0
Purchase of short-term investments (98,957) (73,352)
Proceeds from sale of short-term investments 12,291 17,719
Proceeds from maturity of short-term investments 54,325 30,052
Other (240) (87)
Net cash used in investing activities (33,581) (25,668)
Financing activities    
Net proceeds from stock option exercises and ESPP 8,916 355
Taxes paid related to net share settlement of equity awards (3,797) (2,022)
Share repurchase (1,895) 0
Net cash provided by (used in) provided by financing activities 3,224 (1,667)
Net increase (decrease) in cash and cash equivalents 30,404 (8,111)
Cash and cash equivalents at beginning of period 20,620 18,752
Cash and cash equivalents at end of period 51,024 10,641
Supplemental disclosure of cash flow information    
Interest paid 919 919
Taxes paid 171 96
Supplemental schedule of non-cash activity    
Accrued inventory purchases 1,180 3,909
Unrealized gain (loss) on AFS investments $ 0 $ (66)

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