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Stockholders' Equity
12 Months Ended
Dec. 31, 2019
Share-based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Common Stock
The holders of the Company's common stock are entitled to one vote for each share of common stock held.
Stock Option Plan
The Company has adopted the Supernus Pharmaceuticals, Inc. 2012 Equity Incentive Plan, as amended (the 2012 Plan), which is stockholder approved. This plan provides for the grant of stock options and certain other equity awards, including: stock appreciation rights (SARs); restricted and unrestricted stock; stock units; performance awards; cash awards; and other awards that are convertible into or otherwise based on the Company's common stock, to the Company's key employees, directors, consultants and advisors. The 2012 Plan is administered by the Company's Board of Directors and the Company's Compensation Committee of the Board, and provides for the issuance of up to 8 million shares of the Company's common stock. Option awards are granted with an exercise price equal to the closing price of the Company's common stock as of the grant date. Option awards granted to employees, consultants and advisors generally vest in four equivalent annual installments, starting on the first anniversary of the date of the grant. Awards have ten year contractual terms. Option awards granted to the directors generally vest over a one year term, and have a ten year contractual term.
Employee Stock Purchase Plan
The Company has adopted the Supernus Pharmaceuticals, Inc. 2012 Employee Stock Purchase Plan, as amended (the ESPP). The ESPP allows eligible employees the opportunity to acquire shares of the Company's common stock at periodic intervals through accumulated payroll deductions. These deductions are applied at the semi-annual purchase dates of June 30 and December 31, to purchase shares of common stock at a discount. Eligible employees may purchase shares at the lower of 85% of the fair market value at either the first day of the purchase period or the fair market value at the end of the purchase period. The ESPP provides for issuance of up to 700,000 shares of the Company's common stock. The Company records compensation expense related to its ESPP.
Share-based Compensation
Share-based compensation expense is as follows (dollars in thousands):
 
Years Ended December 31,
 
2019
 
2018
 
2017
Research and development
$
2,599

 
$
1,943

 
$
1,387

Selling, general and administrative
12,247

 
9,348

 
7,046

Total
$
14,846

 
$
11,291

 
$
8,433


The fair value of each option award is estimated on the date of the grant, using the Black-Scholes option-pricing model and the assumptions in the following table:
 
Years Ended December 31,
 
2019
 
2018
 
2017
Fair value of common stock
$22.99 - $37.78
 
$37.20 - $58.15
 
$25.30 - $41.00
Expected volatility
61.36% - 63.28%
 
57.95% - 60.56%
 
53.61% - 60.60%
Dividend yield
0%
 
0%
 
0%
Expected term
5.53 years - 6.18 years
 
6.25 years
 
6.25 years
Risk-free interest rate
1.69% - 2.55%
 
2.69% - 2.85%
 
1.90% - 2.18%
Expected forfeiture rate
0%
 
0%
 
0%

As of December 31, 2019 and 2018, total unrecognized compensation expense was approximately $26.3 million and $22.4 million, respectively. The Company expects to prospectively recognize these expenses over a weighted-average period of 2.52 years and 2.65 years, respectively.
The following table summarizes stock option and SAR activity:
 
Number of
Options
 
Weighted-
Average
Exercise Price
 
Weighted-Average
Remaining
Contractual
Term (in years)
 
Aggregate
Intrinsic Value
(in thousands)
Outstanding , December 31, 2017
4,280,670

 
$
14.50

 
7.37
 
$
108,520

Granted
762,915

 
$
39.91

 
 
 
 
Exercised
(930,483
)
 
$
10.07

 
 
 
$
36,317

Forfeited
(196,139
)
 
$
25.01

 
 
 
 
Outstanding, December 31, 2018
3,916,963

 
$
19.98

 
7.10
 
$
57,220

Granted
880,235

 
$
36.43

 
 
 
 
Exercised
(114,753
)
 
$
12.90

 
 
 
$
2,423

Forfeited
(75,886
)
 
$
34.80

 
 
 
 
Outstanding, December 31, 2019
4,606,559

 
$
23.05

 
6.66
 
$
27,716

As of December 31, 2019
 
 
 
 
 
 
 
Vested and expected to vest
4,606,559

 
$
23.05

 
6.66
 
$
27,716

Exercisable
2,598,112

 
$
15.68

 
5.48
 
$
25,594


The weighted-average grant date fair value of options granted for the years ended December 31, 2019, 2018 and 2017 was $21.50, $23.43 and $14.35 per share, respectively.
The total fair value of the underlying common stock related to shares that vested during the years ended December 31, 2019, 2018, and 2017 was approximately $10.8 million, $8.3 million and $5.4 million, respectively.