Equity Incentive Plans

6 Months Ended

Jun. 30, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

2013 Equity Incentive Plan

A total of 8,100,000 shares of common stock have been reserved for issuance under the La Jolla Pharmaceutical Company 2013 Equity Incentive Plan (the “2013 Equity Plan”). As of June 30, 2019, 681,521 shares of common stock remained available for future grants under the 2013 Equity Plan.

2018 Employee Stock Purchase Plan

A total of 750,000 shares of common stock have been reserved for issuance under the La Jolla Pharmaceutical Company 2018 Employee Stock Purchase Plan (the “ESPP”). As of June 30, 2019, 633,771 shares of common stock remained available for future grants under the ESPP.

Equity Awards

The activity related to equity awards, which are comprised of stock options and inducement grants, during the six months ended June 30, 2019 is summarized as follows:



	Equity Awards		Weighted- average Exercise Price per Share
Outstanding at December 31, 2018	6,466,214		$	23.26
Granted⁽¹⁾	1,923,030		$	6.33
Cancelled/forfeited	(1,184,101	)	$	20.84
Outstanding at June 30, 2019	7,205,143		$	19.14

(1) In March 2019, the Company issued a stock option grant to the Company’s recently appointed Chief Commercial Officer to purchase 80,000 shares of common stock at an exercise price equal to the fair market value of the Company’s common stock on the grant date. The grant was awarded as an inducement grant outside of the 2013 Equity Plan. On the first anniversary of the grant date, 25% of the underlying shares become exercisable with the remaining shares vesting on a monthly basis over the subsequent three years, subject to continued service during that time.

Share-based Compensation Expense

The classification of share-based compensation expense is summarized as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Research and development	$	3,960	$	5,701	$	7,893	$	11,097
Selling, general and administrative	2,361		4,143		5,210		8,149
Total share-based compensation expense	$	6,321	$	9,844	$	13,103	$	19,246

As of June 30, 2019, total unrecognized share-based compensation expense related to unvested equity awards was $49.9 million, which are expected to be recognized over a weighted-average period of 2.6 years. As of June 30, 2019, there was no unrecognized share-based compensation expense related to shares of common stock issued under the ESPP.