STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

The following table summarizes the Company’s stock awards granted for each of the periods indicated:

	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
	2017				2016				2017					2016
	Grants		Weighted Average Grant Date Fair Value		Grants		Weighted Average Grant Date Fair Value		Grants			Weighted Average Grant Date Fair Value		Grants		Weighted Average Grant Date Fair Value
Stock options		221,398	$	21.07		1,050	$	37.38		4,678,357	⁽¹⁾	$	14.49		1,214,426	$	11.96
Restricted stock units		—	$	—		—	$	—		181,029	⁽³⁾	$	33.03		—	$	—
Restricted stock awards		—	$	—		91,778	$	48.94		341,500	⁽²⁾	$	34.58		117,553	$	41.22

(1)

In June 2017, the Company granted its new CEO 3,300,000 options with service and market conditions. These options have a five-year cliff vesting schedule. The fair value of $13.48 for these options was determined by a lattice model with Monte Carlo simulations. The remaining 1,378,357 service-based options which have a weighted average grant date fair value of $16.90 have a four-year vesting schedule with 25% vesting on the first anniversary and 1/48 monthly thereafter.

(2)

In June 2017, the Company granted its new CEO 335,000 restricted stock awards (“RSAs”) with a fair value of $34.65. These RSAs have a four-year vesting schedule with 25% vesting on the first anniversary and 1/48 vest monthly thereafter.

(3)

The Company granted executives 156,029 restricted stock units (“RSUs”) with certain sales target and regulatory milestones. In June 2017, one performance condition of these RSUs was achieved. As a result, 50% of these RSUs became immediately vested and, accordingly, the Company recorded $2.5 million of stock-based compensation expenses. As of September 30, 2017, it is probable that the second performance milestone will be achieved within the required timeline. Accordingly, the Company recognized approximately $0.3 million of stock-based compensation expenses. The third performance milestone was deemed as not probable of being achieved as of September 30, 2017. If and when deemed probable that the last performance milestone may be achieved within the required time frame, the Company may recognize up to $1.1 million of stock-based compensation related to the second and third performance milestones of these grants. The remaining RSUs are service-based awards granted to the members of the board of directors.

Summary of Stock-Based Compensation Expense by Function Included within Condensed Consolidated Statement of Operations and Comprehensive Loss

The following table summarizes stock-based compensation expense by function included within the unaudited condensed consolidated statements of operations and comprehensive loss:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
	(in thousands)				(in thousands)
Research and development	$	1,812	$	2,674	$	5,881	$	7,527
Selling, general and administrative		5,110		6,899		17,218		15,566
Total stock-based compensation expense	$	6,922	$	9,573	$	23,099	$	23,093

Summary of Stock-Based Compensation Expense by Grant Type Included within Condensed Consolidated Statement of Operations and Comprehensive Loss

The following table summarizes stock-based compensation expense by grant type included within the unaudited condensed consolidated statements of operations and comprehensive loss:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2017		2016		2017		2016
	(in thousands)				(in thousands)
Stock options	$	5,420	$	8,778	$	17,221	$	20,248
Restricted stock awards/units		954		232		4,408		689
Stock appreciation rights		—		115		—		345
Employee stock purchase plan		548		448		1,470		1,811
Total stock-based compensation expense	$	6,922	$	9,573	$	23,099	$	23,093