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

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of investment categories

The Company's investments consist of the following at June 30, 2017 and December 31, 2016 (in thousands):

	June 30, 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	$	55,847	$	12	$	(9	)	$	55,850	$	40,715	$	19	$	—		$	40,734
Corporate bonds	30,043		2		(24		)	30,021		11,031		—		(5		)	11,026
Commercial paper	13,948		—		(3		)	13,945		33,074		2		(9		)	33,067
Agency bonds	—		—		—			—		7,294		1		—			7,295
U.S Government Bonds	8,474		—		(8		)	8,466		7,508		—		(1		)	7,507
Municipal Bonds	1,784		—		—			1,784		19,624		—		(11		)	19,613
Corporate equity securities	287		2,051		—			2,338		1,512		1,542		—			3,054
	$	110,383	$	2,065	$	(44	)	$	112,404	$	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):

	June 30,			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	(17,407		)	(12,792		)
Trade name	2,642			2,642
Less: Accumulated amortization	(850		)	(784		)
Customer relationships	29,600			29,600
Less: Accumulated amortization	(9,524		)	(8,784		)
Total goodwill and other identifiable intangible assets, net	$	271,491		$	276,912

Schedule of commercial license rights

Commercial license rights consist of the following (in thousands):

	June 30,		December 31,
	2017		2016
CorMatrix	$	14,431	$	17,284
Selexis	8,531		8,537
	22,962		25,821

Summary of accrued liabilities

Accrued liabilities consist of the following (in thousands):

	June 30,		December 31,
	2017		2016
Compensation	$	1,878	$	2,603
Professional fees	448		829
Amounts owed to former licensees	853		899
Royalties owed to third parties	908		942
Other	1,238		1,124
Total accrued liabilities	$	5,325	$	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				Six months ended
	June 30,				June 30,
	2017		2016		2017		2016
Stock-based compensation expense as a component of:
Research and development expenses	$	1,928	$	2,089	$	5,867	$	3,674
General and administrative expenses	2,696		2,558		4,802		5,092
	$	4,624	$	4,647	$	10,669	$	8,766

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		Six months ended
	June 30,		June 30,
	2017	2016	2017	2016
Risk-free interest rate	2.1%	1.7%	2.1%	1.5%
Dividend yield	—	—	—	—
Expected volatility	47%	49%	47%	50%
Expected term	6.5	6.7	6.8	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		Six months ended
	June 30,		June 30,
	2017	2016	2017	2016
Weighted average shares outstanding:	21,012,611	20,831,809	20,974,738	20,765,053
Dilutive potential common shares:
Restricted stock	156,054	—	170,900	—
Stock options	967,533	—	961,021	—
2019 Convertible Senior Notes	1,079,702	—	1,010,505	—
Shares used to compute diluted income per share	23,215,900	20,831,809	23,117,164	20,765,053
Potentially dilutive shares excluded from calculation due to anti-dilutive effect	3,811,813	—	3,761,440	—