VICAL INC, 10-Q filed on 5/2/2014
Quarterly Report
Document and Entity Information
3 Months Ended
Mar. 31, 2014
Apr. 24, 2014
Document And Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Mar. 31, 2014 
 
Document Fiscal Year Focus
2014 
 
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
 
86,836,290 
Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Current assets:
 
 
Cash and cash equivalents
$ 40,756 
$ 38,837 
Marketable securities, available-for-sale
7,096 
11,541 
Restricted cash
3,119 
3,119 
Receivables and other assets
4,377 
4,590 
Total current assets
55,348 
58,087 
Long-term investments
1,968 
1,980 
Property and equipment, net
3,548 
3,935 
Intangible assets, net
2,023 
1,972 
Other assets
379 
379 
Total assets
63,266 
66,353 
Current liabilities:
 
 
Accounts payable and accrued expenses
3,220 
3,503 
Deferred revenue
113 
150 
Total current liabilities
3,333 
3,653 
Long-term liabilities:
 
 
Deferred rent
1,185 
1,288 
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, 86,817 and 86,778 shares issued and outstanding at March 31, 2014, and December 31, 2013, respectively
868 
868 
Additional paid-in capital
440,516 
439,708 
Accumulated deficit
(382,630)
(379,175)
Accumulated other comprehensive (loss) income
(6)
11 
Total stockholders' equity
58,748 
61,412 
Total liabilities and stockholders' equity
$ 63,266 
$ 66,353 
Balance Sheets (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Statement Of Financial Position [Abstract]
 
 
Preferred stock, par value
$ 0.01 
$ 0.01 
Preferred stock, shares authorized
5,000 
5,000 
Preferred stock, shares issued
   
   
Preferred stock, shares outstanding
   
   
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
160,000 
160,000 
Common stock, shares issued
86,817 
86,778 
Common stock, shares outstanding
86,817 
86,778 
Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Revenues:
 
 
Contract and grant revenue
$ 2,118 
$ 1,136 
License and royalty revenue
329 
438 
Total revenues
2,447 
1,574 
Operating expenses:
 
 
Research and development
2,146 
3,650 
Manufacturing and production
1,515 
3,713 
General and administrative
2,269 
3,518 
Total operating expenses
5,930 
10,881 
Loss from operations
(3,483)
(9,307)
Other income (expense):
 
 
Investment and other income, net
28 
25 
Net loss
$ (3,455)
$ (9,282)
Basic and diluted net loss per share
$ (0.04)
$ (0.11)
Weighted average shares used in computing basic and diluted net loss per share
87,110 
86,638 
Statements of Comprehensive Loss (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract]
 
 
Net loss
$ (3,455)
$ (9,282)
Unrealized losses on available-for-sale and long-term marketable securities:
 
 
Unrealized losses arising during holding period
(17)
(13)
Other comprehensive loss
(17)
(13)
Total comprehensive loss
$ (3,472)
$ (9,295)
Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Cash flows from operating activities:
 
 
Net loss
$ (3,455)
$ (9,282)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
Depreciation and amortization
467 
620 
Write-off of abandoned patents and licensed technology
 
81 
Compensation expense related to stock options and awards
837 
1,138 
Changes in operating assets and liabilities:
 
 
Receivables and other assets
213 
(238)
Accounts payable and accrued expenses
(298)
(535)
Deferred revenue
(37)
17 
Deferred rent
(87)
(72)
Net cash used in operating activities
(2,360)
(8,271)
Cash flows from investing activities:
 
 
Maturities of marketable securities
6,240 
12,480 
Purchases of marketable securities
(1,804)
(293)
Purchases of property and equipment
(16)
(164)
Patent expenditures
(112)
(110)
Net cash provided by investing activities
4,308 
11,913 
Cash flows from financing activities:
 
 
Net proceeds from issuance of common stock
 
328 
Payment of withholding taxes for net settlement of restricted stock units
(29)
(103)
Net cash (used in) provided by financing activities
(29)
225 
Net increase in cash and cash equivalents
1,919 
3,867 
Cash and cash equivalents at beginning of period
38,837 
43,159 
Cash and cash equivalents at end of period
$ 40,756 
$ 47,026 
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, 2014, and for the three months ended March 31, 2014 and 2013, 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, 2013, included in its Annual Report on Form 10-K filed with the SEC.

The accompanying cash flow statement for the three months ended March 31, 2013 contains a reclassification of certain amortization expenses from investment activities to operating activities to conform to the current year presentation.

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. 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, 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 March 31, 2014, and December 31, 2013, restricted cash of $3.1 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.

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 represent 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 license and collaboration agreements provide for milestone payments upon achievement of certain regulatory and commercial events. 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 net loss per share excludes any assumed exercise of stock options and warrants, and any assumed issuance of common stock under restricted stock units as the effect would be antidilutive. Common stock equivalents of 0.6 million and 1.6 million for the three months ended March 31, 2014 and 2013, 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 share-based awards in accordance with the authoritative guidance for stock-based compensation. The cost of employee services received in exchange for an award of an equity instrument is measured at the grant date 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 restricted stock units, or 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 over the expected term of the award using the straight-line method. 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 Pronouncement

In July 2013, the FASB issued guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this standard during the first quarter of 2014 did not have a material impact on the Company’s consolidated financial statements.

 

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,
 
         2014              2013      

Research and development

   $ 210       $ 312   

Manufacturing and production

     45         68   

General and administrative

     582         758   
  

 

 

    

 

 

 

Total stock-based compensation expense

   $ 837       $ 1,138   
  

 

 

    

 

 

 

During the three months ended March 31, 2014 and 2013, the Company granted stock-based awards with a total estimated value of $2.1 million and $3.1 million, respectively. At March 31, 2014, total unrecognized estimated compensation expense related to unvested stock-based awards granted prior to that date was $3.9 million, which is expected to be recognized over a weighted-average period of 1.3 years. Stock-based awards granted during the three months ended March 31, 2014 and 2013, were equal to 2.7% and 1.8%, 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, 2014

   Amortized
Cost
     Unrealized
Gain
     Unrealized
Loss
     Market
Value
 

U.S. treasuries

   $ 1,500       $ 4       $ —         $ 1,504   

Government-sponsored enterprise securities

     3,000         —           8         2,992   

Corporate bonds

     1,610         2         —           1,612   

Certificates of deposit

     988         —           —           988   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 7,098       $ 6       $ 8       $ 7,096   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

December 31, 2013

   Amortized
Cost
     Unrealized
Gain
     Unrealized
Loss
     Market
Value
 

U.S. treasuries

   $ 1,500       $ 3       $ —         $ 1,503   

Government-sponsored enterprise securities

     4,500         —           —           4,500   

Corporate bonds

     4,853         —           —           4,853   

Certificates of deposit

     685         —           —           685   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 11,538       $ 3       $ —         $ 11,541   
  

 

 

    

 

 

    

 

 

    

 

 

 

At March 31, 2014, $4.6 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, 2014. As of March 31, 2014, 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,
2014
     December 31,
2013
 

Employee compensation

   $ 1,376       $ 1,587   

Post-termination benefit accrual

     150         369   

Clinical trial accrual

     251         347   

Accounts payable

     710         395   

Deferred rent

     384         369   

Other accrued liabilities

     349         436   
  

 

 

    

 

 

 

Total accounts payable and accrued expenses

   $ 3,220       $ 3,503   
  

 

 

    

 

 

Long-Term Investments
Long-Term Investments

5.       LONG-TERM INVESTMENTS

As of March 31, 2014, 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 BBB+ by Standard and Poor’s as of March 31, 2014. 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 by management utilizing a discounted cash flow analysis. The key drivers of the valuation model include the expected term, collateralization 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, 2014. The losses when recognized are included in investment and other income. The market value of the security has partially recovered. Included in other comprehensive loss are unrealized losses of $12,000 and $17,000 for the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014, the Company had recorded cumulative unrealized gains of $0.2 million. The resulting carrying value of the auction rate security at March 31, 2014, 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, 2014

   Level 1      Level 2      Level 3      Total  

Certificates of deposit

   $ 988       $ —         $ —         $ 988   

Money market funds

     172         —           —           172   

U.S. treasuries

     1,504         —           —           1,504   

Corporate bonds

     —           1,612         —           1,612   

Government-sponsored enterprise securities

     —           2,992         —           2,992   

Auction rate securities

     —           —           1,968         1,968   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,664       $ 4,604       $ 1,968       $ 9,236   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Fair Value Measurements  

December 31, 2013

   Level 1      Level 2      Level 3      Total  

Certificates of deposit

   $ 685       $ —         $ —         $ 685   

Money market funds

     2,275         —           —           2,275   

U.S. treasuries

     1,503         —           —           1,503   

Corporate bonds

     —           4,853         —           4,853   

Government-sponsored enterprise securities

     —           4,500         —           4,500   

Auction rate securities

     —           —           1,980         1,980   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 4,463       $ 9,353       $ 1,980       $ 15,796   
  

 

 

    

 

 

    

 

 

    

 

 

 

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, 2014. 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, 2014. The Company did not reclassify any investments between level categories during the three months ended March 31, 2014. 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, 2014
 

Balance at December 31, 2013

   $ 1,980   

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

     (12
  

 

 

 

Balance at March 31, 2014

   $ 1,968   
  

 

 

 

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 April 3, 2014, the lead plaintiff filed a 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 April 25, 2014, the parties filed a joint motion asking the court to permit plaintiffs to amend the complaint, which the court granted. The lead plaintiff’s deadline to file an amended complaint is May 9, 2014. The defendants’ response will be due 28 days after lead plaintiff files an amended complaint. The Company plans to vigorously defend against the claims advanced. At this time, the Company is unable to estimate possible losses or ranges of losses for ongoing legal actions.

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 Agreements
Astellas Agreements

8.       ASTELLAS 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 $0.3 million and $0.1 million in license revenue under the Astellas agreements during the three months ended March 31, 2014 and 2013, 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, 2014 and 2013, the Company recognized $2.1 million and $1.1 million, respectively, of revenue related to these contract services.

In August 2012, the Company amended its license and supply agreements with Astellas to, among other things, extend the time period that the Company is obligated to supply licensed products for commercial use to Astellas, at Astellas’ expense, modify the allocation of $95.0 million of milestone payments among certain milestones through commercial launch and modify the structure of the royalties on net sales from a fixed double digit royalty to tiered double digit royalties.

Restructuring Costs
Restructuring Costs

9.       RESTRUCTURING COSTS

In August 2013, the Company announced that its recently completed Phase 3 clinical trial of Allovectin®, the Company’s investigational cancer immunotherapy, failed to meet the pre-established endpoints. As a result, the Company restructured its operations to conserve capital, which included a staff reduction of 47 employees and the write-off of certain intangible assets. The Company recorded charges for employee termination benefits of $2.2 million and for asset impairments of $0.7 million in August of 2013.

The following table sets forth activity in the restructuring liability for the three months ended March 31, 2014, which is wholly comprised of employee severance costs (in thousands):

 

     Accrued
Severance
 

Balance at December 31, 2013

   $ 281   

Accruals

     —     

Payments

   $ (132
  

 

 

 

Balance at March 31, 2014

   $ 149   
  

 

 

 

The balance of the accrued severance liability at March 31, 2014 is anticipated to be fully distributed by August 23, 2014.

Subsequent Event
Subsequent Event

10.      SUBSEQUENT EVENT

In April 2014, the Company entered into an At-The-Market Issuance Sales Agreement, or Sales Agreement, with Meyers Associates, L.P. (doing business as Brinson Patrick, a division of Meyers Associates, L.P.), or Brinson Patrick, under which the Company may issue and sell up to $25,000,000 of shares of its common stock from time to time. Under the Sales Agreement, the Company may deliver placement notices that will set the parameters for the sale of shares, including the number of shares to be issued, the time period during which sales are requested to be made, any limitation on the number of shares that may be sold in any one trading day and any minimum price below which sales may not be made. Subject to the terms and conditions of the Sales Agreement, Brinson Patrick may sell the shares only by methods deemed to be an “at the market” offering as defined in Rule 415 promulgated under the Securities Act of 1933, as amended, including without limitation sales made directly through the Nasdaq Global Market, on any other existing trading market for the Company’s common stock or to or through a market maker. The Sales Agreement may be terminated by the Company upon prior notice to Brinson Patrick or by Brinson Patrick upon prior notice to the Company, or at any time under certain circumstances, including but not limited to the occurrence of a material adverse effect on the Company.

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. 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, 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 March 31, 2014, and December 31, 2013, restricted cash of $3.1 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.

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 represent 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 license and collaboration agreements provide for milestone payments upon achievement of certain regulatory and commercial events. 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 net loss per share excludes any assumed exercise of stock options and warrants, and any assumed issuance of common stock under restricted stock units as the effect would be antidilutive. Common stock equivalents of 0.6 million and 1.6 million for the three months ended March 31, 2014, and 2013, 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 share-based awards in accordance with the authoritative guidance for stock-based compensation. The cost of employee services received in exchange for an award of an equity instrument is measured at the grant date 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 restricted stock units, or 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 over the expected term of the award using the straight-line method. 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 Pronouncement

In July 2013, the FASB issued guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this standard during the first quarter of 2014 did not have a material impact on the Company’s consolidated financial statements.

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,
 
     2014      2013  

Research and development

   $ 210       $ 312   

Manufacturing and production

     45         68   

General and administrative

     582         758   
  

 

 

    

 

 

 

Total stock-based compensation expense

   $ 837       $ 1,138   
  

 

 

    

 

 

 
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, 2014

   Amortized
Cost
     Unrealized
Gain
     Unrealized
Loss
     Market
Value
 

U.S. treasuries

   $ 1,500       $ 4       $ —         $ 1,504   

Government-sponsored enterprise securities

     3,000         —           8         2,992   

Corporate bonds

     1,610         2         —           1,612   

Certificates of deposit

     988         —           —           988   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 7,098       $ 6       $ 8       $ 7,096   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

December 31, 2013

   Amortized
Cost
     Unrealized
Gain
     Unrealized
Loss
     Market
Value
 

U.S. treasuries

   $ 1,500       $ 3       $ —         $ 1,503   

Government-sponsored enterprise securities

     4,500         —           —           4,500   

Corporate bonds

     4,853         —           —           4,853   

Certificates of deposit

     685         —           —           685   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 11,538       $ 3       $ —         $ 11,541   
  

 

 

    

 

 

    

 

 

    

 

 

 
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,
2014
     December 31,
2013
 

Employee compensation

   $ 1,376       $ 1,587   

Post-termination benefit accrual

     150         369   

Clinical trial accrual

     251         347   

Accounts payable

     710         395   

Deferred rent

     384         369   

Other accrued liabilities

     349         436   
  

 

 

    

 

 

 

Total accounts payable and accrued expenses

   $ 3,220       $ 3,503   
  

 

 

    

 

 

 
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, 2014    Level 1      Level 2      Level 3      Total  

Certificates of deposit

   $ 988       $ —         $ —         $ 988   

Money market funds

     172         —           —           172   

U.S. treasuries

     1,504         —           —           1,504   

Corporate bonds

     —           1,612         —           1,612   

Government-sponsored enterprise securities

     —           2,992         —           2,992   

Auction rate securities

     —           —           1,968         1,968   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 2,664       $ 4,604       $ 1,968       $ 9,236   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Fair Value Measurements  
December 31, 2013    Level 1      Level 2      Level 3      Total  

Certificates of deposit

   $ 685       $ —         $ —         $ 685   

Money market funds

     2,275         —           —           2,275   

U.S. treasuries

     1,503         —           —           1,503   

Corporate bonds

     —           4,853         —           4,853   

Government-sponsored enterprise securities

     —           4,500         —           4,500   

Auction rate securities

     —           —           1,980         1,980   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 4,463       $ 9,353       $ 1,980       $ 15,796   
  

 

 

    

 

 

    

 

 

    

 

 

 

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, 2014
 

Balance at December 31, 2013

   $ 1,980   

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

     (12
  

 

 

 

Balance at March 31, 2014

   $ 1,968   
  

 

 

 

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

   $ —     
  

 

 

 
Restructuring Costs (Tables)
Schedule of Restructuring Liability

The following table sets forth activity in the restructuring liability for the three months ended March 31, 2014, which is wholly comprised of employee severance costs (in thousands):

 

     Accrued
Severance
 

Balance at December 31, 2013

   $ 281   

Accruals

     —     

Payments

   $ (132
  

 

 

 

Balance at March 31, 2014

   $ 149   
  

 

 

 
Basis of Presentation - Additional Information (Detail) (USD $)
In Thousands, except Share data in Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Organization Consolidation And Presentation Of Financial Statements [Abstract]
 
 
 
Maximum period for cash and highly liquid securities with original maturities
Ninety days or less 
 
 
Minimum period for marketable securities classified as available-for-sale with original maturities
More than ninety 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
$ 3,119 
 
$ 3,119 
Common stock equivalents excluded from the calculation of diluted net loss per share
0.6 
1.6 
 
Stock-Based Compensation - Summary of Total Stock-Based Compensation Expense (Detail) (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Total stock-based compensation expense
$ 837 
$ 1,138 
Research and development [Member]
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Total stock-based compensation expense
210 
312 
Manufacturing and production [Member]
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Total stock-based compensation expense
45 
68 
General and administrative [Member]
 
 
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
Total stock-based compensation expense
$ 582 
$ 758 
Stock-Based Compensation - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
 
 
Estimated value of stock-based awards, granted
$ 2.1 
$ 3.1 
Unrecognized compensation cost related to unvested options
$ 3.9 
 
Unvested stock-based awards expected to be recognized, weighted-average period
1 year 3 months 18 days 
 
Portion of stock-based awards granted from outstanding common shares
2.70% 
1.80% 
Marketable Securities, Available for Sale - Summary of Available-for-Sale Marketable Securities (Detail) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2014
Dec. 31, 2013
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
$ 7,098 
$ 11,538 
Unrealized Gain
Unrealized Loss
   
Market Value
7,096 
11,541 
U.S. treasuries [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
1,500 
1,500 
Unrealized Gain
Unrealized Loss
   
   
Market Value
1,504 
1,503 
Government-sponsored enterprise securities [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
3,000 
4,500 
Unrealized Gain
   
   
Unrealized Loss
   
Market Value
2,992 
4,500 
Corporate bonds [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
1,610 
4,853 
Unrealized Gain
   
Unrealized Loss
   
   
Market Value
1,612 
4,853 
Certificates of deposit [Member]
 
 
Schedule of Available-for-sale Securities [Line Items]
 
 
Amortized Cost
988 
685 
Unrealized Gain
   
   
Unrealized Loss
   
   
Market Value
$ 988 
$ 685 
Marketable Securities, Available for Sale - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 31, 2014
Investments Debt And Equity Securities [Abstract]
 
Available-for-sale securities maturing outside of one year
$ 4,600,000 
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, 2014
Dec. 31, 2013
Payables And Accruals [Abstract]
 
 
Employee compensation
$ 1,376 
$ 1,587 
Post-termination benefit accrual
150 
369 
Clinical trial accrual
251 
347 
Accounts payable
710 
395 
Deferred rent
384 
369 
Other accrued liabilities
349 
436 
Total accounts payable and accrued expenses
$ 3,220 
$ 3,503 
Long-Term Investments - Additional Information (Detail) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
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 losses on auction rate securities
12,000 
17,000 
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, 2014
Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
$ 9,236 
$ 15,796 
Certificates of deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
988 
685 
Money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
172 
2,275 
U.S. treasuries [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
1,504 
1,503 
Corporate bonds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
1,612 
4,853 
Government-sponsored enterprise securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
2,992 
4,500 
Auction rate securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
1,968 
1,980 
Level 1 [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
2,664 
4,463 
Level 1 [Member] |
Certificates of deposit [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
988 
685 
Level 1 [Member] |
Money market funds [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
172 
2,275 
Level 1 [Member] |
U.S. treasuries [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
1,504 
1,503 
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
4,604 
9,353 
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
1,612 
4,853 
Level 2 [Member] |
Government-sponsored enterprise securities [Member]
 
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
 
Fair Value
2,992 
4,500 
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
1,968 
1,980 
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
$ 1,968 
$ 1,980 
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, 2014
Fair Value Disclosures [Abstract]
 
Balance at December 31, 2013
$ 1,980 
Total net unrealized losses, excluding tax impact, included in other comprehensive loss
(12)
Balance at March 31, 2014
1,968 
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 - Additional Information (Detail)
Nov. 30, 2013
Lawsuits
Commitments And Contingencies Disclosure [Abstract]
 
Number of putative, securities class action complaints filed in U.S District Court
Astellas Agreements - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended
Aug. 31, 2012
Mar. 31, 2014
Mar. 31, 2013
Mar. 31, 2012
Mar. 31, 2011
Organization Consolidation And Presentation Of Financial Statements [Abstract]
 
 
 
 
 
Recognized license revenue
 
$ 0.3 
$ 0.1 
 
$ 25.0 
Additional amount received upon finalization of the general trial design
 
 
 
10.0 
 
Recognized revenue related to contract services
 
2.1 
1.1 
 
 
Amount payable under license agreement on achievement of milestone
$ 95.0 
 
 
 
 
Restructuring Costs - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
1 Months Ended
Aug. 31, 2013
Employees
Restructuring And Related Activities [Abstract]
 
Charges for employee termination benefits
$ 2.2 
Charges for asset impairments
$ 0.7 
Restructured of employees to conserve capital include a staff reduction of employees
47 
Restructuring Costs - Schedule of Restructuring Liability (Detail) (Accrued Severance [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2014
Accrued Severance [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Beginning balance
$ 281 
Accruals
   
Payments
(132)
Ending balance
$ 149 
Subsequent Event - Additional Information (Detail) (Subsequent Event [Member], Sales Agreement [Member], Brinson Patrick [Member], USD $)
Apr. 30, 2014
Subsequent Event [Member] |
Sales Agreement [Member] |
Brinson Patrick [Member]
 
Subsequent Event [Line Items]
 
Common stock reserved for future issuance
$ 25,000,000