Basic and Diluted Net Loss per Common Share

9 Months Ended

Sep. 30, 2012

Basic and Diluted Net Loss per Common Share [Abstract]

Basic and Diluted Net Loss per Common Share

7. Basic and Diluted Net Loss per Common Share

Basic net loss per common share has been computed by dividing net loss by the weighted average number of shares outstanding during the period. Diluted net income per share, if applicable, has been computed by dividing diluted net income by the diluted number of shares outstanding during the period. Except where the result would be antidilutive to loss from continuing operations, diluted net loss per share has been computed assuming the conversion of convertible obligations and the elimination of the related interest expense, the exercise of stock options and warrants, as well as their related income tax effects.

The following table sets forth the computation of basic and diluted net loss per common share:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011(1)			2012			2011(1)
Numerator:
Net loss	$	(10,182	)	$	(6,823	)	$	(27,758	)	$	(17,828	)
Denominator
Weighted average common shares
Denominator for basic calculation		23,825			74			21,984			124
Denominator for diluted calculation		23,825			74			21,984			124
Net loss per share:
Basic	$	(0.43	)	$	(92.21	)	$	(1.26	)	$	(143.77	)
Diluted	$	(0.43	)	$	(92.21	)	$	(1.26	)	$	(143.77	)

(1) Per share computations for the three and nine months ended September 30, 2011 are based on Private Synageva’s historic common stock, which excludes preferred stock.

The Company’s potential dilutive securities which include convertible debt, convertible preferred stock, stock options, and warrants have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted-average common stock outstanding used to calculate both basic and diluted net loss per share are the same. The following shares of potentially dilutive securities have been excluded from the computations of diluted weighted average shares outstanding as the effect of including such securities would be antidilutive (in thousands):

	September 30,
	2012		2011
Options to purchase common stock		2,593		1,524
Convertible preferred stock		—		25,997
Convertible preferred stock warrants		—		31
		2,593		27,552