VICAL INC, 10-Q filed on 5/8/2015
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2015
Apr. 30, 2015
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2015 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q1 
 
Trading Symbol
VICL 
 
Entity Registrant Name
VICAL INC 
 
Entity Central Index Key
0000819050 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
91,397,834 
Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 17,666 
$ 20,471 
Marketable securities, available-for-sale
23,385 
23,499 
Restricted cash
3,182 
3,182 
Receivables and other assets
3,709 
4,178 
Total current assets
47,942 
51,330 
Long-term investments
2,034 
1,971 
Property and equipment, net
2,427 
2,639 
Intangible assets, net
1,596 
1,660 
Other assets
379 
379 
Total assets
54,378 
57,979 
Current liabilities:
 
 
Accounts payable and accrued expenses
4,099 
5,201 
Deferred revenue
30 
Total current liabilities
4,129 
5,201 
Long-term liabilities:
 
 
Deferred rent
737 
856 
Commitments and contingencies
   
   
Stockholders' equity:
 
 
Preferred stock, $0.01 par value, 5,000 shares authorized, none issued and outstanding
Common stock, $0.01 par value, 160,000 shares authorized, 91,376 and 90,334 shares issued and outstanding at March 31, 2015, and December 31, 2014, respectively
914 
903 
Additional paid-in capital
448,019 
446,698 
Accumulated deficit
(399,488)
(395,667)
Accumulated other comprehensive income (loss)
67 
(12)
Total stockholders' equity
49,512 
51,922 
Total liabilities and stockholders' equity
$ 54,378 
$ 57,979 
Balance Sheets (Parenthetical) (USD $)
Mar. 31, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]
 
 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
5,000,000 
5,000,000 
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
160,000,000 
160,000,000 
Common stock, shares issued
91,376,000 
90,334,000 
Common stock, shares outstanding
91,376,000 
90,334,000 
Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Revenues:
 
 
Contract and grant revenue
$ 4,274 
$ 2,118 
License and royalty revenue
670 
329 
Total revenues
4,944 
2,447 
Operating expenses:
 
 
Research and development
3,637 
2,146 
Manufacturing and production
2,941 
1,515 
General and administrative
2,223 
2,269 
Total operating expenses
8,801 
5,930 
Loss from operations
(3,857)
(3,483)
Other income:
 
 
Investment and other income, net
36 
28 
Net loss
$ (3,821)
$ (3,455)
Basic and diluted net loss per share
$ (0.04)
$ (0.04)
Weighted average shares used in computing basic and diluted net loss per share
90,870 
87,110 
Statements of Comprehensive Loss (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Statement of Comprehensive Income [Abstract]
 
 
Net loss
$ (3,821)
$ (3,455)
Unrealized gain (loss) on available-for-sale and long-term marketable securities:
 
 
Unrealized gain (loss) arising during holding period
79 
(17)
Other comprehensive gain (loss)
79 
(17)
Total comprehensive loss
$ (3,742)
$ (3,472)
Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Cash flows from operating activities:
 
 
Net loss
$ (3,821)
$ (3,455)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
Depreciation and amortization
301 
467 
Write-off of abandoned patents and licensed technology
46 
 
Compensation expense related to stock options and awards
571 
837 
Purchase of technology license with common stock
775 
Changes in operating assets and liabilities:
 
 
Receivables and other assets
469 
213 
Accounts payable and accrued expenses
(1,117)
(298)
Deferred revenue
30 
(37)
Deferred rent
(103)
(87)
Net cash used in operating activities
(2,849)
(2,360)
Cash flows from investing activities:
 
 
Maturities of marketable securities
4,023 
6,240 
Purchases of marketable securities
(3,912)
(1,804)
Purchases of property and equipment
(23)
(16)
Patent expenditures
(30)
(112)
Net cash provided by investing activities
58 
4,308 
Cash flows from financing activities:
 
 
Net proceeds from issuance of common stock
Payment of withholding taxes for net settlement of restricted stock units
(16)
(29)
Net cash used in financing activities
(14)
(29)
Net (decrease) increase in cash and cash equivalents
(2,805)
1,919 
Cash and cash equivalents at beginning of period
20,471 
38,837 
Cash and cash equivalents at end of period
$ 17,666 
$ 40,756 
Basis of Presentation
Basis of Presentation

1.       BASIS OF PRESENTATION

Vical Incorporated, or the Company, a Delaware corporation, was incorporated in April 1987 and has devoted substantially all of its resources since that time to its research and development programs. The Company researches and develops biopharmaceutical products based on its patented DNA delivery technologies for the prevention and treatment of serious or life-threatening diseases.

All of the Company’s potential products are in research and development phases. No revenues have been generated from the sale of any such products, nor are any such revenues expected for at least the next several years. The Company earns revenue from research and development agreements with pharmaceutical collaborators and grant and contract arrangements with government entities. Most of the Company’s product candidates will require significant additional research and development efforts, including extensive preclinical and clinical testing. All product candidates that advance to clinical testing will require regulatory approval prior to commercial use, and will require significant costs for commercialization. There can be no assurance that the Company’s research and development efforts, or those of its collaborators, will be successful. The Company expects to continue to incur substantial losses and not generate positive cash flows from operations for at least the next several years. No assurance can be given that the Company can generate sufficient product revenue to become profitable or generate positive cash flows from operations.

The unaudited financial statements at March 31, 2015, and for the three months ended March 31, 2015 and 2014, have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, or SEC, and with accounting principles generally accepted in the United States applicable to interim financial statements. These unaudited financial statements have been prepared on the same basis as the audited financial statements included in the Company’s Annual Report on Form 10-K and include all adjustments, consisting of only normal recurring accruals, which in the opinion of management are necessary to present fairly the Company’s financial position as of the interim date and results of operations for the interim periods presented. Interim results are not necessarily indicative of results expected for a full year or future periods. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. These unaudited financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2014, included in its Annual Report on Form 10-K filed with the SEC.

Cash, Cash Equivalents and Marketable Securities

Cash and cash equivalents consist of cash and highly liquid securities with original maturities at the date of acquisition of ninety days or less and can be liquidated without prior notice or penalty. Investments with an original maturity of more than ninety days are considered marketable securities and have been classified by management as available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from sales of these securities to fund its operations, as necessary. Such investments are carried at fair value, with unrealized gains and losses included as a separate component of stockholders’ equity. Realized gains and losses from the sale of available-for-sale securities or the amounts, net of tax, reclassified out of accumulated other comprehensive income (loss), if any, are determined on a specific identification basis.

Restricted Cash

The Company is required to maintain a letter of credit securing an amount equal to twelve months of the current monthly installment of base rent for the term of its primary facilities lease, which ends in August 2017. Under certain circumstances, the Company may be able to eliminate the need for the letter of credit. As of each of March 31, 2015, and December 31, 2014, restricted cash of $3.2 million was pledged as collateral for this letter of credit.

Revenue Recognition

Revenue is recognized when the four basic criteria of revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Certain of the Company’s revenue is generated through manufacturing contracts and stand-alone license agreements.

 

Multiple-element arrangements

The Company has entered into multiple-element arrangements. In order to account for the multiple-element arrangements, the Company identifies the deliverables included within the agreement and evaluates which deliverables represents separate units of accounting. Analyzing the arrangement to identify deliverables requires the use of judgment, and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation. The delivered item(s) must have value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the Company’s control.

A delivered item is considered a separate unit of accounting when the delivered item has value to the partner on a standalone basis based on the consideration of the relevant facts and circumstances for each arrangement. Factors considered in this determination include the research capabilities of the partner and the availability of research expertise in this field in the general marketplace. Arrangement consideration is allocated at the inception of the agreement to all identified units of accounting based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence, or VSOE, of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, the Company uses its best estimate of the selling price for the deliverable. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. Changes in the allocation of the sales price between delivered and undelivered elements can impact revenue recognition but do not change the total revenue recognized under any agreement. If facts and circumstances dictate that the license has standalone value from the undelivered items, which generally include research and development services and the manufacture of drug products, the license is identified as a separate unit of accounting and the amounts allocated to the license are recognized upon the delivery of the license, assuming the other revenue recognition criteria have been met. However, if the amounts allocated to the license through the relative selling price allocation exceed the upfront license fee, the amount recognized upon the delivery of the license is limited to the upfront fee received. If facts and circumstances dictate that the license does not have standalone value, the transaction price, including any upfront license fee payments received, are allocated to the identified separate units of accounting and recognized as those items are delivered.

The terms of the Company’s partnership agreements provide for milestone payments upon achievement of certain regulatory and commercial events. Under the Milestone Method, the Company recognizes consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is substantive in its entirety. A milestone is considered substantive when it meets all of the following three criteria: 1) The consideration is commensurate with either the entity’s performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, 2) The consideration relates solely to past performance, and 3) The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. A milestone is defined as an event (i) that can only be achieved based in whole or in part on either the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due to the Company.

Contract Services, Grant and Royalty Revenue

The Company recognizes revenues from contract services and federal government research grants during the period in which the related expenditures are incurred and related payments for those services are received or collection is reasonably assured. Royalties to be received based on sales of licensed products by the Company’s partners incorporating the Company’s licensed technology are recognized when received.

Manufacturing and Production Costs

Manufacturing and production costs include expenses related to manufacturing contracts and expenses for the production of plasmid DNA for use in the Company’s research and development efforts. Manufacturing expenses related to manufacturing contracts are deferred and expensed when the related revenue is recognized. Production expenses related to the Company’s research and development efforts are expensed as incurred.

 

Net Loss Per Share

Basic and diluted net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The weighted average number of shares used to compute diluted loss per share excludes any assumed exercise of stock options and any assumed issuance of common stock under restricted stock units as the effect would be antidilutive. Common stock equivalents of 0.7 million and 0.6 million for the three months ended March 31, 2015 and 2014, respectively, were excluded from the calculation because of their antidilutive effect.

Stock-Based Compensation

The Company records its compensation expense associated with stock options and other forms of equity compensation based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. Stock-based compensation includes amortization related to stock option awards based on the estimated grant date fair value. Stock-based compensation expense related to stock options includes an estimate for forfeitures and the portion that is ultimately expected to vest is recognized ratably over the vesting period of the option. In addition, the Company records expense related to RSUs granted based on the fair value of those awards on the grant date. The fair value related to the RSUs is amortized to expense over the vesting term of those awards. Stock-based compensation expense related to RSUs includes an estimate for forfeitures and the portion expected to vest is recognized ratably over the requisite service period. The expected forfeiture rate of all equity-based compensation is based on observed historical patterns of the Company’s employees and is estimated to be 8.75% and 11.2% annually for each of the three months ended March 31, 2015 and 2014, respectively.

Stock-based compensation expense for a stock-based award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any recognized compensation expense is reversed.

Recent Accounting Pronouncements

In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The guidance allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the first quarter of 2018. The Company is evaluating the alternative transition methods and the potential effects of the adoption of this update on its financial statements.

In August 2014, the FASB issued an amendment to the accounting guidance related to the evaluation of an entity to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The amendment also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. The amended guidance is effective prospectively for fiscal years beginning after December 15, 2016. The new guidance will not have an impact on the Company’s financial position, results of operations or cash flows.

Stock-Based Compensation
Stock-Based Compensation

2.       STOCK-BASED COMPENSATION

Total stock-based compensation expense was allocated to research and development, manufacturing and production and general and administrative expense as follows (in thousands):

 

     Three Months Ended
March 31,
 
         2015              2014      

Research and development

   $ 111       $ 210   

Manufacturing and production

     34         45   

General and administrative

     426         582   
  

 

 

    

 

 

 

Total stock-based compensation expense

   $ 571       $ 837   
  

 

 

    

 

 

 

During the three months ended March 31, 2015 and 2014, the Company granted stock-based awards with a total estimated value of $1.7 million and $2.1 million, respectively. At March 31, 2015, total unrecognized estimated compensation expense related to unvested stock-based awards granted prior to that date was $2.8 million, which is expected to be recognized over a weighted-average period of 1.4 years. Stock-based awards granted during the three months ended March 31, 2015 and 2014, were equal to 2.9% and 2.7%, respectively, of the outstanding shares of common stock at the end of the applicable period.

Marketable Securities, Available for Sale
Marketable Securities, Available for Sale

3.       MARKETABLE SECURITIES, AVAILABLE FOR SALE

The following is a summary of available-for-sale marketable securities (in thousands):

 

March 31, 2015

   Amortized
Cost
     Unrealized
Gain
     Unrealized
Loss
     Market
Value
 

U.S. treasuries

   $ 5,548       $ 4       $ —         $ 5,552   

Government-sponsored enterprise securities

     5,499         1         —           5,500   

Corporate bonds

     2,018         —           1         2,017   

Certificates of deposit

     10,316         —           —           10,316   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 23,381       $ 5       $ 1       $ 23,385   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

December 31, 2014

   Amortized
Cost
     Unrealized
Gain
     Unrealized
Loss
     Market
Value
 

U.S. treasuries

   $ 5,558       $ —         $ 1       $ 5,557   

Government-sponsored enterprise securities

     7,499         —           6         7,493   

Corporate bonds

     2,025         —           5         2,020   

Certificates of deposit

     8,429         —           —           8,429   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 23,511       $ —         $ 12       $ 23,499   
  

 

 

    

 

 

    

 

 

    

 

 

 

At March 31, 2015, $6.3 million of these securities were scheduled to mature outside of one year. The Company did not realize any gains or losses on sales of available-for-sale securities for the three months ended March 31, 2015. As of March 31, 2015, none of the securities had been in a continuous material unrealized loss position longer than one year.

Other Balance Sheet Accounts
Other Balance Sheet Accounts

4.       OTHER BALANCE SHEET ACCOUNTS

Accounts payable and accrued expenses consisted of the following (in thousands):

 

     March 31,
2015
     December 31,
2014
 

Employee compensation

   $ 1,432       $ 2,471   

Clinical trial accruals

     1,091         1,686   

Accounts payable

     670         227   

Deferred rent

     448         432   

Other accrued liabilities

     458         385   
  

 

 

    

 

 

 

Total accounts payable and accrued expenses

   $ 4,099       $ 5,201   
  

 

 

    

 

 

 

Long-Term Investments
Long-Term Investments

5.       LONG-TERM INVESTMENTS

As of March 31, 2015, the Company held an auction rate security with a par value of $2.5 million. This auction rate security has not experienced a successful auction since the liquidity issues experienced in the global credit and capital markets in 2008. As a result, the security is classified as a long-term investment as it is scheduled to mature in 2038. The security was rated A- by Standard and Poor’s as of March 31, 2015. The security continues to pay interest according to its stated terms.

The valuation of the Company’s auction rate security is subject to uncertainties that are difficult to predict. The fair value of the security is estimated utilizing a discounted cash flow analysis. The key drivers of the valuation model include the expected term, collateral underlying the security investment, the creditworthiness of the counterparty, the timing of expected future cash flows, discount rates, liquidity and the expected holding period. The security was also compared, when possible, to other observable market data for securities with similar characteristics. Based on the valuation of the security, the Company has recognized cumulative losses of $0.5 million as of March 31, 2015, none of which were realized during the three months ended March 31, 2015. The losses when recognized are included in investment and other income. The market value of the security has partially recovered. Included in other comprehensive income (loss) are unrealized gains (losses) of $63,000 and $(12,000) for the three months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, the Company had recorded cumulative unrealized gains of $0.2 million. The resulting carrying value of the auction rate security at March 31, 2015, was $2.0 million. Any future decline in market value may result in additional losses being recognized.

Fair Value Measurements
Fair Value Measurements

6.       FAIR VALUE MEASUREMENTS

The Company measures fair value as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

   

Level 1: Observable inputs such as quoted prices in active markets;

 

   

Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and

 

   

Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

Cash equivalents, marketable securities and long-term investments measured at fair value are classified in the table below in one of the three categories described above (in thousands):

 

     Fair Value Measurements  

March 31, 2015

   Level 1      Level 2      Level 3      Total  

Certificates of deposit

   $ 10,561       $ —         $ —         $ 10,561   

Money market funds

     —           —           —           —     

U.S. treasuries

     5,552         —           —           5,552   

Corporate bonds

     —           2,017         —           2,017   

Government-sponsored enterprise securities

     —           5,500         —           5,500   

Auction rate securities

     —           —           2,034         2,034   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 16,113       $ 7,517       $ 2,034       $ 25,664   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Fair Value Measurements  

December 31, 2014

   Level 1      Level 2      Level 3      Total  

Certificates of deposit

   $ 8,674       $ —         $ —         $ 8,674   

Money market funds

     169         —           —           169   

U.S. treasuries

     5,557         —           —           5,557   

Corporate bonds

     —           2,020         —           2,020   

Government-sponsored enterprise securities

     —           7,493         —           7,493   

Auction rate securities

     —           —           1,971         1,971   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 14,400       $ 9,513       $ 1,971       $ 25,884   
  

 

 

    

 

 

    

 

 

    

 

 

 

The Company’s investments in U.S. treasury securities, certificates of deposit and money market funds are valued based on publicly available quoted market prices for identical securities as of March 31, 2015. The Company determines the fair value of corporate bonds and other government-sponsored enterprise related securities with the aid of valuations provided by third parties using proprietary valuation models and analytical tools. These valuation models and analytical tools use market pricing or similar instruments that are both objective and publicly available, including matrix pricing or reported trades, benchmark yields, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids and/or offers. The Company validates the valuations received from its primary pricing vendors for its level 2 securities by examining the inputs used in that vendor’s pricing process and determines whether they are reasonable and observable. The Company also compares those valuations to recent reported trades for those securities. The Company did not adjust any of the valuations received from these independent third parties with respect to any of its level 2 securities at March 31, 2015. The Company did not transfer any investments between level categories during the three months ended March 31, 2015. The valuation of the Company’s investments in auction rate securities, which includes significant unobservable inputs, is more fully described in Note 5.

Activity for assets measured at fair value using significant unobservable inputs (Level 3) is presented in the table below (in thousands):

 

     Three Months
Ended
March 31,
2015
 

Balance at December 31, 2014

   $ 1,971   

Total net unrealized gains, excluding tax impact, included in other comprehensive loss

     63   
  

 

 

 

Balance at March 31, 2015

   $ 2,034   
  

 

 

 

Total gains or losses for the period included in net loss attributable to the change in unrealized gains or losses relating to assets still held at the reporting date

   $ —     
  

 

 

 

     

Commitments and Contingencies
Commitments and Contingencies

7.       COMMITMENTS AND CONTINGENCIES

In late October and early November 2013, following the Company’s announcement of the results of its Phase 3 trial of Allovectin® and the subsequent decline of the price of its common stock, two putative securities class action complaints were filed in the U.S. District Court for the Southern District of California against the Company and certain of its current and former officers. On February 26, 2014, the two cases were consolidated into one action and a lead plaintiff and lead counsel were appointed. On May 12, 2014, the lead plaintiff filed a first amended consolidated complaint alleging that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making materially false and misleading statements regarding the Company’s business prospects and the prospects for Allovectin®, thereby artificially inflating the price of the Company’s common stock. On June 9, 2014, defendants filed a motion to dismiss the first amended complaint and a motion to strike certain allegations in the amended complaint. On March 9, 2015, the Court granted defendants’ motion to dismiss the first amended complaint and terminated as moot defendants’ motion to strike. Lead plaintiff was granted leave to amend his first amended complaint on or before March 25, 2015. Lead plaintiff chose not to amend his complaint and instead stipulated to an entry of judgment. On April 28, 2015, the Court entered final judgment dismissing the action.

In the ordinary course of business, the Company may become a party to additional lawsuits involving various matters. The Company is unaware of any such lawsuits presently pending against it which, individually or in the aggregate, are deemed to be material to the Company’s financial condition or results of operations.

The Company prosecutes its intellectual property vigorously to obtain the broadest valid scope for its patents. Due to uncertainty of the ultimate outcome of these matters, the impact on future operating results or the Company’s financial condition is not subject to reasonable estimates.

Astellas License Agreements

8.       ASTELLAS OUT-LICENSE AGREEMENTS

In July 2011, the Company entered into license agreements with Astellas Pharma Inc., or Astellas, granting Astellas exclusive, worldwide, royalty-bearing licenses under certain of the Company’s know-how and intellectual property to develop and commercialize certain products containing plasmids encoding certain forms of cytomegalovirus, glycoprotein B and/or phosphoprotein 65, including ASP0113 (TransVax™) but excluding CyMVectin™.

Under the terms of the license agreements, Astellas paid a nonrefundable upfront license fee of $25.0 million in 2011. The Company also received a $10.0 million milestone payment in March 2012 upon finalization of the general trial design for a Phase 3 registration trial of ASP0113 in hematopoietic stem cell transplant recipients. The Company recognized $0.5 million and $0.3 million in license revenue under the Astellas agreements during the three months ended March 31, 2015 and 2014, respectively.

Under the terms of the agreements, the Company is also performing research and development services and manufacturing services which are being paid for by Astellas. During the three months ended March 31, 2015 and 2014, the Company recognized $4.3 million and $2.1 million, respectively, of revenue related to these contract services.

9.       ASTELLAS IN-LICENSE AGREEMENTS

In March 2015, the Company entered into license and stock purchase agreements with Astellas, granting Vical exclusive worldwide license to develop and commercialize a novel antifungal, ASP2397. ASP2397 is a potential therapeutic for invasive fungal infections, including invasive aspergillosis. Astellas received 861,216 shares of unregistered Vical common stock and $250,000 in cash. The $250,000 cash payment and the fair value of the common stock issued of $775,094 were included in research and development expenses during the three months ending March 31, 2015. Astellas will also be eligible to receive up to $100 million in aggregate milestone payments, the vast majority of which are commercial and sales milestones, and single-digit royalties on net sales of commercial products.

Subsequent Event
Subsequent Event

10.       SUBSEQUENT EVENT

In April 2015, the Company entered into a $4 million contract with the IPPOX Foundation to manufacture HIV-antigen plasmid DNA as a component of vaccine regimens to be evaluated in clinical trials for the prevention of HIV infection.

Basis of Presentation (Policies)

Cash, Cash Equivalents and Marketable Securities

Cash and cash equivalents consist of cash and highly liquid securities with original maturities at the date of acquisition of ninety days or less and can be liquidated without prior notice or penalty. Investments with an original maturity of more than ninety days are considered marketable securities and have been classified by management as available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from sales of these securities to fund its operations, as necessary. Such investments are carried at fair value, with unrealized gains and losses included as a separate component of stockholders’ equity. Realized gains and losses from the sale of available-for-sale securities or the amounts, net of tax, reclassified out of accumulated other comprehensive income (loss), if any, are determined on a specific identification basis.

Restricted Cash

The Company is required to maintain a letter of credit securing an amount equal to twelve months of the current monthly installment of base rent for the term of its primary facilities lease, which ends in August 2017. Under certain circumstances, the Company may be able to eliminate the need for the letter of credit. As of each of March 31, 2015, and December 31, 2014, restricted cash of $3.2 million was pledged as collateral for this letter of credit.

Revenue Recognition

Revenue is recognized when the four basic criteria of revenue recognition are met: (1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the fee is fixed or determinable; and (4) collectability is reasonably assured. Certain of the Company’s revenue is generated through manufacturing contracts and stand-alone license agreements.

Multiple-element arrangements

The Company has entered into multiple-element arrangements. In order to account for the multiple-element arrangements, the Company identifies the deliverables included within the agreement and evaluates which deliverables represents separate units of accounting. Analyzing the arrangement to identify deliverables requires the use of judgment, and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation. The delivered item(s) must have value to the customer on a standalone basis and, if the arrangement includes a general right of return relative to the delivered item, delivery or performance of the undelivered item(s) is considered probable and substantially in the Company’s control.

A delivered item is considered a separate unit of accounting when the delivered item has value to the partner on a standalone basis based on the consideration of the relevant facts and circumstances for each arrangement. Factors considered in this determination include the research capabilities of the partner and the availability of research expertise in this field in the general marketplace. Arrangement consideration is allocated at the inception of the agreement to all identified units of accounting based on their relative selling price. The relative selling price for each deliverable is determined using vendor specific objective evidence, or VSOE, of selling price or third-party evidence of selling price if VSOE does not exist. If neither VSOE nor third-party evidence of selling price exists, the Company uses its best estimate of the selling price for the deliverable. The amount of allocable arrangement consideration is limited to amounts that are fixed or determinable. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units. Changes in the allocation of the sales price between delivered and undelivered elements can impact revenue recognition but do not change the total revenue recognized under any agreement. If facts and circumstances dictate that the license has standalone value from the undelivered items, which generally include research and development services and the manufacture of drug products, the license is identified as a separate unit of accounting and the amounts allocated to the license are recognized upon the delivery of the license, assuming the other revenue recognition criteria have been met. However, if the amounts allocated to the license through the relative selling price allocation exceed the upfront license fee, the amount recognized upon the delivery of the license is limited to the upfront fee received. If facts and circumstances dictate that the license does not have standalone value, the transaction price, including any upfront license fee payments received, are allocated to the identified separate units of accounting and recognized as those items are delivered.

The terms of the Company’s partnership agreements provide for milestone payments upon achievement of certain regulatory and commercial events. Under the Milestone Method, the Company recognizes consideration that is contingent upon the achievement of a milestone in its entirety as revenue in the period in which the milestone is achieved only if the milestone is substantive in its entirety. A milestone is considered substantive when it meets all of the following three criteria: 1) The consideration is commensurate with either the entity’s performance to achieve the milestone or the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity’s performance to achieve the milestone, 2) The consideration relates solely to past performance, and 3) The consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. A milestone is defined as an event (i) that can only be achieved based in whole or in part on either the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved and (iii) that would result in additional payments being due to the Company.

Contract Services, Grant and Royalty Revenue

The Company recognizes revenues from contract services and federal government research grants during the period in which the related expenditures are incurred and related payments for those services are received or collection is reasonably assured. Royalties to be received based on sales of licensed products by the Company’s partners incorporating the Company’s licensed technology are recognized when received.

Manufacturing and Production Costs

Manufacturing and production costs include expenses related to manufacturing contracts and expenses for the production of plasmid DNA for use in the Company’s research and development efforts. Manufacturing expenses related to manufacturing contracts are deferred and expensed when the related revenue is recognized. Production expenses related to the Company’s research and development efforts are expensed as incurred.

Net Loss Per Share

Basic and diluted net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. The weighted average number of shares used to compute diluted loss per share excludes any assumed exercise of stock options and any assumed issuance of common stock under restricted stock units as the effect would be antidilutive. Common stock equivalents of 0.7 million and 0.6 million for the three months ended March 31, 2015 and 2014, respectively, were excluded from the calculation because of their antidilutive effect.

Stock-Based Compensation

The Company records its compensation expense associated with stock options and other forms of equity compensation based on their fair value at the date of grant using the Black-Scholes-Merton option pricing model. Stock-based compensation includes amortization related to stock option awards based on the estimated grant date fair value. Stock-based compensation expense related to stock options includes an estimate for forfeitures and the portion that is ultimately expected to vest is recognized ratably over the vesting period of the option. In addition, the Company records expense related to RSUs granted based on the fair value of those awards on the grant date. The fair value related to the RSUs is amortized to expense over the vesting term of those awards. Stock-based compensation expense related to RSUs includes an estimate for forfeitures and the portion expected to vest is recognized ratably over the requisite service period. The expected forfeiture rate of all equity-based compensation is based on observed historical patterns of the Company’s employees and is estimated to be 8.75% and 11.2% annually for each of the three months ended March 31, 2015 and 2014, respectively.

Stock-based compensation expense for a stock-based award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any recognized compensation expense is reversed.

Recent Accounting Pronouncements

In May 2014, the FASB issued guidance that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The guidance provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. The guidance allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the first quarter of 2018. The Company is evaluating the alternative transition methods and the potential effects of the adoption of this update on its financial statements.

In August 2014, the FASB issued an amendment to the accounting guidance related to the evaluation of an entity to continue as a going concern. The amendment establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern in connection with preparing financial statements for each annual and interim reporting period. The amendment also gives guidance to determine whether to disclose information about relevant conditions and events when there is substantial doubt about an entity’s ability to continue as a going concern. The amended guidance is effective prospectively for fiscal years beginning after December 15, 2016. The new guidance will not have an impact on the Company’s financial position, results of operations or cash flows.

Stock-Based Compensation (Tables)
Summary of Total Stock-Based Compensation Expense

Total stock-based compensation expense was allocated to research and development, manufacturing and production and general and administrative expense as follows (in thousands):

 

     Three Months Ended
March 31,
 
     2015      2014  

Research and development

   $ 111       $ 210   

Manufacturing and production

     34         45   

General and administrative

     426         582   
  

 

 

    

 

 

 

Total stock-based compensation expense

$ 571    $ 837   
  

 

 

    

 

 

 
Marketable Securities, Available for Sale (Tables)
Summary of Available-for-Sale Marketable Securities

The following is a summary of available-for-sale marketable securities (in thousands):

 

March 31, 2015

   Amortized
Cost
     Unrealized
Gain
     Unrealized
Loss
     Market
Value
 

U.S. treasuries

   $ 5,548       $ 4       $ —         $ 5,552   

Government-sponsored enterprise securities

     5,499         1         —           5,500   

Corporate bonds

     2,018         —           1         2,017   

Certificates of deposit

     10,316         —           —           10,316   
  

 

 

    

 

 

    

 

 

    

 

 

 
$ 23,381    $ 5    $ 1    $ 23,385   
  

 

 

    

 

 

    

 

 

    

 

 

 

December 31, 2014

   Amortized
Cost
     Unrealized
Gain
     Unrealized
Loss
     Market
Value
 

U.S. treasuries

   $ 5,558       $ —         $ 1       $ 5,557   

Government-sponsored enterprise securities

     7,499         —           6         7,493   

Corporate bonds

     2,025         —           5         2,020   

Certificates of deposit

     8,429         —           —           8,429   
  

 

 

    

 

 

    

 

 

    

 

 

 
$ 23,511    $ —      $ 12    $ 23,499   
  

 

 

    

 

 

    

 

 

    

 

 

 
Other Balance Sheet Accounts (Tables)
Summary of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following (in thousands):

 

     March 31,
2015
     December 31,
2014
 

Employee compensation

   $ 1,432       $ 2,471   

Clinical trial accruals

     1,091         1,686   

Accounts payable

     670         227   

Deferred rent

     448         432   

Other accrued liabilities

     458         385   
  

 

 

    

 

 

 

Total accounts payable and accrued expenses

$ 4,099    $ 5,201   
  

 

 

    

 

 

 
Fair Value Measurements (Tables)

Cash equivalents, marketable securities and long-term investments measured at fair value are classified in the table below in one of the three categories described above (in thousands):

 

     Fair Value Measurements  

March 31, 2015

   Level 1      Level 2      Level 3      Total  

Certificates of deposit

   $ 10,561       $ —         $ —         $ 10,561   

Money market funds

     —           —           —           —     

U.S. treasuries

     5,552         —           —           5,552   

Corporate bonds

     —           2,017         —           2,017   

Government-sponsored enterprise securities

     —           5,500         —           5,500   

Auction rate securities

     —           —           2,034         2,034   
  

 

 

    

 

 

    

 

 

    

 

 

 
$ 16,113    $ 7,517    $ 2,034    $ 25,664   
  

 

 

    

 

 

    

 

 

    

 

 

 
     Fair Value Measurements  

December 31, 2014

   Level 1      Level 2      Level 3      Total  

Certificates of deposit

   $ 8,674       $ —         $ —         $ 8,674   

Money market funds

     169         —           —           169   

U.S. treasuries

     5,557         —           —           5,557   

Corporate bonds

     —           2,020         —           2,020   

Government-sponsored enterprise securities

     —           7,493         —           7,493   

Auction rate securities

     —           —           1,971         1,971   
  

 

 

    

 

 

    

 

 

    

 

 

 
$ 14,400    $ 9,513    $ 1,971    $ 25,884   
  

 

 

    

 

 

    

 

 

    

 

 

 

Activity for assets measured at fair value using significant unobservable inputs (Level 3) is presented in the table below (in thousands):

 

     Three Months
Ended

March 31, 2015
 

Balance at December 31, 2014

   $ 1,971   

Total net unrealized gains, excluding tax impact, included in other comprehensive loss

     63   
  

 

 

 

Balance at March 31, 2015

$ 2,034   
  

 

 

 

Total gains or losses for the period included in net loss attributable to the change in unrealized gains or losses relating to assets still held at the reporting date

$ —     
  

 

 

 
Basis of Presentation - Additional Information (Detail) (USD $)
In Thousands, except Share data in Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
 
 
Maximum period for cash and highly liquid securities with original maturities
90 days or less 
 
 
Minimum period for marketable securities classified as available-for-sale with original maturities
More than 90 days 
 
 
Amount of letter of credit, description
The Company is required to maintain a letter of credit securing an amount equal to twelve months of the current monthly installment of base rent for the term of its primary facilities lease, which ends in August 2017. 
 
 
Restricted cash
$ 3,182 
 
$ 3,182 
Common stock equivalents excluded from the calculation of diluted net income per share
0.7 
0.6 
 
Expected forfeiture rate of equity based compensation
8.75% 
11.20% 
 
Stock-Based Compensation - Summary of Total Stock-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
Total stock-based compensation expense
$ 571 
$ 837 
Research and development [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
Total stock-based compensation expense
111 
210 
Manufacturing and production [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
Total stock-based compensation expense
34 
45 
General and administrative [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
 
 
Total stock-based compensation expense
$ 426 
$ 582 
Stock-Based Compensation - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
 
 
Estimated value of stock-based awards, granted
$ 1.7 
$ 2.1 
Unrecognized compensation cost related to unvested options
$ 2.8 
 
Unvested stock-based awards expected to be recognized, weighted-average period
1 year 4 months 24 days 
 
Portion of stock-based awards granted from outstanding common shares
2.90% 
2.70% 
Marketable Securities, Available for Sale - Summary of Available-for-Sale Marketable Securities (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 23,381 
$ 23,511 
Unrealized Gain
Unrealized Loss
12 
Market Value
23,385 
23,499 
U.S. treasuries [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
5,548 
5,558 
Unrealized Gain
Unrealized Loss
Market Value
5,552 
5,557 
Government-sponsored enterprise securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
5,499 
7,499 
Unrealized Gain
Unrealized Loss
Market Value
5,500 
7,493 
Corporate bonds [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
2,018 
2,025 
Unrealized Gain
Unrealized Loss
Market Value
2,017 
2,020 
Certificates of deposit [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
10,316 
8,429 
Unrealized Gain
Unrealized Loss
Market Value
$ 10,316 
$ 8,429 
Marketable Securities, Available for Sale - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
 
Available-for-sale securities maturing outside of one year
$ 6,300,000 
Realized gains or losses on sales of available-for-sale securities
Available-for-sale securities in a continuous material unrealized loss position longer than one year
$ 0 
Other Balance Sheet Accounts - Summary of Accounts Payable and Accrued Expenses (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Payables and Accruals [Abstract]
 
 
Employee compensation
$ 1,432 
$ 2,471 
Clinical trial accruals
1,091 
1,686 
Accounts payable
670 
227 
Deferred rent
448 
432 
Other accrued liabilities
458 
385 
Total accounts payable and accrued expenses
$ 4,099 
$ 5,201 
Long-Term Investments - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Investments Schedule [Abstract]
 
 
Auction rate securities held, at par value
$ 2,500,000 
 
Maturity of long-term investment
2038 
 
Recognized cumulative losses
500,000 
 
Unrealized gains (losses) on auction rate securities
63,000 
(12,000)
Cumulative unrealized gains
200,000 
 
Carrying value of auction rate security
$ 2,000,000 
 
Fair Value Measurements - Summary of Cash Equivalents, Marketable Securities and Long-Term Investments Measured at Fair Value (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
$ 25,664 
$ 25,884 
Certificates of deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
10,561 
8,674 
Money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
169 
U.S. treasuries [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
5,552 
5,557 
Corporate bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
2,017 
2,020 
Government-sponsored enterprise securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
5,500 
7,493 
Auction rate securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
2,034 
1,971 
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
16,113 
14,400 
Level 1 [Member] |
Certificates of deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
10,561 
8,674 
Level 1 [Member] |
Money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
169 
Level 1 [Member] |
U.S. treasuries [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
5,552 
5,557 
Level 1 [Member] |
Corporate bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 1 [Member] |
Government-sponsored enterprise securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 1 [Member] |
Auction rate securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 2 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
7,517 
9,513 
Level 2 [Member] |
Certificates of deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 2 [Member] |
Money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 2 [Member] |
U.S. treasuries [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 2 [Member] |
Corporate bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
2,017 
2,020 
Level 2 [Member] |
Government-sponsored enterprise securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
5,500 
7,493 
Level 2 [Member] |
Auction rate securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 3 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
2,034 
1,971 
Level 3 [Member] |
Certificates of deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 3 [Member] |
Money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 3 [Member] |
U.S. treasuries [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 3 [Member] |
Corporate bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 3 [Member] |
Government-sponsored enterprise securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
Level 3 [Member] |
Auction rate securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
$ 2,034 
$ 1,971 
Fair Value Measurements - Summary of Activity for Assets Measured at Fair Value Using Significant Unobservable Inputs (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Fair Value Disclosures [Abstract]
 
Balance at December 31, 2014
$ 1,971 
Total net unrealized gains, excluding tax impact, included in other comprehensive loss
63 
Balance at March 31, 2015
2,034 
Total gains or losses for the period included in net loss attributable to the change in unrealized gains or losses relating to assets still held at the reporting date
$ 0 
Commitments and Contingencies - Additional Information (Detail)
0 Months Ended
Nov. 30, 2013
Lawsuits
Commitments and Contingencies Disclosure [Abstract]
 
Number of putative, securities class action complaints filed in U.S District Court
Astellas Out-License Agreements - Additional Information (Detail) (Collaborative Arrangement [Member], Astellas Out-License Agreements [Member], USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2012
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2011
Collaborative Arrangement [Member] |
Astellas Out-License Agreements [Member]
 
 
 
 
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
 
 
 
 
Recognized license revenue
 
$ 0.5 
$ 0.3 
$ 25.0 
Milestone payment upon finalization of the trial design
10.0 
 
 
 
Revenue related to contract services
 
$ 4.3 
$ 2.1 
 
Astellas In-License Agreements - Additional Information (Detail) (USD $)
3 Months Ended 1 Months Ended 3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Mar. 31, 2015
Astellas In-License Agreements [Member]
Collaborative Arrangement [Member]
Mar. 31, 2015
Astellas In-License Agreements [Member]
Collaborative Arrangement [Member]
Research and development [Member]
Mar. 31, 2015
Astellas In-License Agreements [Member]
Collaborative Arrangement [Member]
Research and development [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
 
 
 
 
 
Restricted stock issued, shares
 
 
861,216 
 
 
Cash payment for license agreement
 
 
 
$ 250,000 
 
Purchase of technology license with common stock
775,000 
 
 
775,094 
Potential future milestone payments
 
 
$ 100,000,000 
 
 
Subsequent Event - Additional Information (Detail) (Subsequent Event [Member], IPPOX Foundation [Member], USD $)
In Millions, unless otherwise specified
Apr. 30, 2015
Subsequent Event [Member] |
IPPOX Foundation [Member]
 
Subsequent Event [Line Items]
 
Contractual obligation to manufacture HIV-antigen plasmid DNA
$ 4