Basis of Presentation and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of investment categories

The Company's investments consist of the following at March 31, 2017 and December 31, 2016 (in thousands):

	March 31, 2017									December 31, 2016
	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value		Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
Short-term investments
Bank deposits	$	61,605	$	23	$	(10	)	$	61,618	$	40,715	$	19	$	—		$	40,734
Corporate bonds	32,237		2		(17		)	32,222		11,031		—		(5		)	11,026
Commercial paper	23,328		1		(5		)	23,324		33,074		2		(9		)	33,067
Agency bonds	—		—		—			—		7,294		1		—			7,295
U.S Government Bonds	11,020		—		(6		)	11,014		7,508		—		(1		)	7,507
Municipal Bonds	18,143		2		(1		)	18,144		19,624		—		(11		)	19,613
Corporate equity securities	300		2,111		—			2,411		1,512		1,542		—			3,054
	$	146,633	$	2,139	$	(39	)	$	148,733	$	120,758	$	1,564	$	(26	)	$	122,296

Summary of goodwill and other identifiable intangible assets

Goodwill and other identifiable intangible assets consist of the following (in thousands):

	March 31,			December 31,
	2017			2016
Indefinite lived intangible assets
IPR&D	$	12,246		$	12,246
Goodwill	72,207			72,207
Definite lived intangible assets
Complete technology	182,577			182,577
Less: Accumulated amortization	(15,104		)	(12,792		)
Trade name	2,642			2,642
Less: Accumulated amortization	(817		)	(784		)
Customer relationships	29,600			29,600
Less: Accumulated amortization	(9,154		)	(8,784		)
Total goodwill and other identifiable intangible assets, net	$	274,197		$	276,912

Schedule of commercial license rights

Commercial License Rights consist of the following (in thousands):

	March 31,			December 31,
	2017			2016
CorMatrix	$	17,696		$	17,696
Selexis	8,602			8,602
	26,298			26,298
Less: accumulated amortization	(668		)	(477		)
Total commercial license rights, net	$	25,630		$	25,821

Summary of accrued liabilities

Accrued liabilities consist of the following (in thousands):

	March 31,		December 31,
	2017		2016
Compensation	$	1,356	$	2,603
Professional fees	799		829
Amounts owed to former licensees	890		899
Royalties owed to third parties	989		942
Other	646		1,124
Total accrued liabilities	$	4,680	$	6,397

Schedule for accounting for share-based compensation

The following table summarizes stock-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):

	Three months ended
	March 31,
	2017		2016
Stock-based compensation expense as a component of:
Research and development expenses	$	3,939	$	1,585
General and administrative expenses	2,106		2,533
	$	6,045	$	4,118

Summary of fair-value options awarded to employees and directors

The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:

	Three months ended
	March 31,
	2017	2016
Risk-free interest rate	2.1%	1.5%
Dividend yield	—	—
Expected volatility	47%	50%
Expected term	6.9	6.6

Summary of computation of basic and diluted net income (loss) per share

The following table presents the calculation of weighted average shares used to calculate basic and diluted earnings per share:

	Three months ended
	March 31,
	2017	2016
Weighted average shares outstanding:	20,937,627	20,707,926
Dilutive potential common shares:
Restricted stock	185,745	66,736
Stock options	954,509	759,581
2019 Convertible Senior Notes	941,308	749,736
Shares used to compute diluted income per share	23,019,189	22,283,979
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	3,711,067	3,493,425