XML 27 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
Stock-Based Compensation
3 Months Ended
Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Stock-Based Compensation

7.

Stock-Based Compensation

Restricted Stock Units

During the three months ended March 31, 2017, the Company granted 32,500 restricted stock units to certain employees of the Company. The Company did not grant restricted stock units prior to January 1, 2017.  These restricted stock units vest ratably over two years, with cliff vesting of 50% at both the one-year and two-year anniversary of the grant, which was in February 2018 and will be in February 2019, respectively.    

During the three months ended March 31, 2018, the Company granted 33,600 performance restricted stock units to certain employees of the Company.  These performance restricted stock units will vest upon the achievement of a certain regulatory milestone, in some cases upon meeting the milestone and, in other cases, on the first anniversary of meeting the milestone. 

The fair value of restricted stock units that vested during the three months ended March 31, 2018 was $2.6 million.  No restricted stock units vested during the three months ended March 31, 2017.

The table below summarizes activity relating to restricted stock:

 

 

 

Shares

 

Outstanding as of December 31, 2017

 

 

29,100

 

Granted

 

 

33,600

 

Vested

 

 

(14,550

)

Forfeited

 

 

(400

)

Outstanding as of March 31, 2018

 

 

47,750

 

 

Stock Option Plans

 

On July 2, 2014, the stockholders of the Company approved the 2014 Stock Option and Incentive Plan (the “2014 Stock Option Plan”), which became effective upon the completion of the IPO. The 2014 Stock Option Plan provides for the grant of restricted stock awards, restricted stock units, incentive stock options and non-statutory stock options. The 2014 Stock Option Plan replaced the Company’s 2011 Stock Option and Grant Plan (the “2011 Stock Option Plan”). The Company no longer grants stock options or other awards under the 2011 Stock Option Plan. Any options or awards outstanding under the 2011 Stock Option Plan remained outstanding and effective.

 

On December 15, 2016, the Board of Directors of the Company approved the 2016 Inducement Equity Plan (the “2016 Stock Option Plan”). The 2016 Stock Option Plan provides for the grant of equity awards to individuals who have not previously been an employee or a non-employee director of the Company to induce them to accept employment and to provide them with a proprietary interest in the Company.

As of March 31, 2018, the total number of shares reserved under all equity plans is 9,172,948, and 2,543,909 shares were available for future issuance under such plans.

 

The 2014 Stock Option Plan provides for an annual increase, to be added on the first day of each fiscal year, by up to 4% of the Company’s outstanding shares of common stock as of the last day of the prior year.  On January 1, 2018, 1,680,117 shares of common stock, representing 4% of the Company’s outstanding shares of common stock as of December 31, 2017, were added to the 2014 Stock Option Plan.

 

During the three months ended March 31, 2018 and 2017, the Company granted 323,753 and 449,208 options, respectively, to employees to purchase shares of common stock that contain performance-based vesting criteria, primarily related to the achievement of certain clinical and regulatory development milestones related to product candidates. Recognition of stock-based compensation expense associated with these performance-based stock options commences when the performance condition is considered probable of achievement, using management’s best estimates, which consider the inherent risk and uncertainty regarding the future outcomes of the milestones.

During the three months ended March 31, 2018 and 2017, the achievement of the remaining milestones that are the criteria for vesting of performance-based stock options was considered not probable, nor met, and therefore no expense has been recognized related to these awards for the three months ended March 31, 2018 and 2017.

 

Stock-based compensation expense for stock options, restricted stock units and the employee stock purchase plan recognized during the three months ended March 31, 2018 and 2017 was as follows:

 

 

 

Three months ended March 31,

 

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

Research and development

 

$

8,899

 

 

$

3,596

 

General and administrative

 

 

6,918

 

 

 

2,612

 

 

 

$

15,817

 

 

$

6,208

 

 

Stock-based compensation expense by award type recognized during the three months ended March 31, 2018 and 2017 was as follows:

 

 

 

Three months ended March 31,

 

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

Stock options

 

$

15,381

 

 

$

6,033

 

Restricted stock units

 

 

168

 

 

 

100

 

Employee stock purchase plan

 

 

268

 

 

 

75

 

 

 

$

15,817

 

 

$

6,208

 

 

The weighted average grant date fair value per share relating to outstanding stock options granted under the Company’s stock option plans during the three months ended March 31, 2018 and 2017 was $125.80 and $34.61, respectively.

The table below summarizes activity related to stock options:

 

 

 

Shares

 

 

Weighted

Average Exercise

Price

 

 

Weighted Average

Remaining Life

(in years)

 

 

Aggregate

Intrinsic Value

(in thousands)

 

Outstanding as of December 31, 2017

 

 

5,586,593

 

 

$

43.58

 

 

 

8.09

 

 

$

676,717

 

Granted

 

 

1,376,044

 

 

 

187.51

 

 

 

 

 

 

 

 

 

Exercised

 

 

(347,725

)

 

 

32.65

 

 

 

 

 

 

 

 

 

Forfeited

 

 

(33,623

)

 

 

62.08

 

 

 

 

 

 

 

 

 

Outstanding as of March 31, 2018

 

 

6,581,289

 

 

$

74.16

 

 

 

8.29

 

 

$

608,335

 

Exercisable as of March 31, 2018

 

 

2,163,375

 

 

$

31.70

 

 

 

7.00

 

 

$

279,868

 

 

At March 31, 2018, the Company had unrecognized stock-based compensation expense related to its unvested service-based stock option awards of $172.0 million, which is expected to be recognized over the remaining weighted average vesting period of 3.23 years. The intrinsic value of stock options exercised during the three months ended March 31, 2018 and 2017 was $47.7 million and $4.8 million, respectively.

 

At March 31, 2018, 991,114 performance-based stock options were both outstanding and unvested, and the total unrecognized stock-based compensation expense related to those awards was $46.8 million.