View Filing Data

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Dec. 31, 2015	Feb. 22, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	Ophthotech Corp.
Entity Central Index Key	0001410939
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,455.3
Entity Common Stock, Shares Outstanding		35,252,261
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 221,861	$ 39,814
Available for sale securities	74,731	423,746
Due from Novartis Pharma AG	4,389	960
Prepaid expenses and other current assets	5,504	8,812
Total current assets	306,485	473,332
Available for sale securities	95,298
Property and equipment, net	3,466	1,555
Deferred tax assets	23,113	4,517
Other assets	489	382
Total assets	428,851	479,786
Current liabilities
Accrued research and development expenses	18,820	7,918
Accounts payable and accrued expenses	12,018	8,707
Deferred revenue	6,667	3,206
Total current liabilities	37,505	19,831
Deferred revenue, long-term	206,399	206,418
Royalty purchase liability	125,000	125,000
Total liabilities	368,904	351,249
Stockholders' equity
Preferred stock - $0.001 par value, 5,000,000 shares authorized, no shares issued or outstanding
Common stock - $0.001 par value, 200,000,000 shares authorized, 35,196,567 and 33,994,520 shares issued and outstanding at December 31, 2015 and December 31, 2014, respectively	35	34
Additional paid-in capital	465,924	428,390
Accumulated deficit	(405,539)	(299,822)
Accumulated other comprehensive loss	(473)	(65)
Total stockholders' equity	59,947	128,537
Total liabilities and stockholders' equity	$ 428,851	$ 479,786

Statements of Operations - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statements of Operations
Collaboration revenue	$ 51,505	$ 41,259
Operating expenses:
Research and development	131,012	88,385	$ 33,215
General and administrative	44,021	33,387	14,210
Total operating expenses	175,033	121,772	47,425
Income (loss) from operations	(123,528)	(80,513)	(47,425)
Interest income (expense)	971	217	(1,454)
Loss on extinguishment of debt			(1,091)
Other income (loss)	53		(1,175)
Loss before income tax provision	(122,504)	(80,296)	(51,145)
Income tax (benefit) provision	(16,787)	36,476
Net loss	(105,717)	(116,772)	(51,145)
Add: accretion of preferred stock dividends			(5,891)
Net loss attributable to common stockholders	$ (105,717)	$ (116,772)	$ (57,036)
Net loss per common share:
Basic and diluted (in dollars per share)	$ (3.06)	$ (3.51)	$ (6.34)
Weighted average common shares outstanding:
Basic and diluted (in shares)	34,580	33,258	9,003

Statement of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands	Junior Series A Preferred Stock	Common stock.	Additional paid-in capital	Accumulated Deficit.	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2012	$ 3,000	$ 1		$ (126,471)		$ (123,470)
Balance (in shares) at Dec. 31, 2012	3,000	1,470
Increase (Decrease) in Stockholders' Equity
Issuance of common stock upon conversion of Series A, A-1, B, B-1, and C preferred stock		$ 21	$ 174,310			174,331
Issuance of common stock upon conversion of Series A, A-1, B, B-1, and C preferred stock (in shares)		21,038
Issuance of common stock from initial public offering, net		$ 9	175,546			175,555
Issuance of common stock from initial public offering, net (in shares)		8,740
Issuance of common stock upon conversion of Junior Series A Preferred Stock	$ (3,000)					(3,000)
Issuance of common stock upon conversion of Junior Series A Preferred Stock (in shares)	(3,000)
Reclassification of warrant liability			2,179			2,179
Reclassification of preferred stock issuance costs			(1,804)			(1,804)
Issuance of common stock under employee stock compensation plans and warrants			94			94
Issuance of common stock under employee stock compensation plans and warrants (in shares)		165
Share-based compensation			2,871			2,871
Preferred Stock dividends			(457)	(5,434)		(5,891)
Net loss				(51,145)		(51,145)
Balance at Dec. 31, 2013		$ 31	352,739	(183,050)		169,720
Balance (in shares) at Dec. 31, 2013		31,413
Increase (Decrease) in Stockholders' Equity
Issuance of common stock from follow-on public offering, net		$ 2	55,407			55,409
Issuance of common stock from follow-on public offering, net (in shares)		1,900
Issuance of common stock under employee stock compensation plans and warrants		$ 1	2,948			2,949
Issuance of common stock under employee stock compensation plans and warrants (in shares)		682
Share-based compensation			13,040			13,040
Excess tax benefit from share-based compensation			4,256			4,256
Net loss				(116,772)		(116,772)
Unrealized loss on available for sale securities, net of tax					$ (65)	(65)
Balance at Dec. 31, 2014		$ 34	428,390	(299,822)	(65)	128,537
Balance (in shares) at Dec. 31, 2014		33,995
Increase (Decrease) in Stockholders' Equity
Issuance of common stock under employee stock compensation plans and warrants		$ 1	11,472			11,473
Issuance of common stock under employee stock compensation plans and warrants (in shares)		1,202
Share-based compensation			24,760			24,760
Excess tax benefit from share-based compensation			1,302			1,302
Net loss				(105,717)		(105,717)
Unrealized loss on available for sale securities, net of tax					(408)	(408)
Balance at Dec. 31, 2015		$ 35	$ 465,924	$ (405,539)	$ (473)	$ 59,947
Balance (in shares) at Dec. 31, 2015		35,197

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Activities
Net loss	$ (105,717)	$ (116,772)	$ (51,145)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities
Depreciation	698	127	20
Amortization of debt issuance costs			88
Accretion of debt discount			87
Amortization of premium and discounts on investment securities	2,846	2,024
Gain on sale of marketable securities	(57)
Non-cash change in fair value of warrant liability			1,181
Loss on extinguishment of debt			1,091
Deferred income taxes	(17,341)	(214)
Share-based compensation	24,760	13,040	2,871
Excess tax benefits from share-based compensation	(1,302)	(4,256)
Changes in operating assets and liabilities:
Due from Novartis Pharma AG	(3,429)	(960)
Prepaid expense and other current assets	3,308	(2,008)	(6,761)
Accrued interest receivable	155	280
Other assets	(107)	(127)	(96)
Accrued research and development expenses	10,902	5,433	1,472
Accounts payable and accrued expenses	3,311	4,897	2,417
Deferred revenue	3,442	209,624
Net cash (used in) provided by operating activities	(78,531)	111,088	(48,775)
Investing Activities
Purchase of marketable securities	(411,565)	(597,762)
Sale of marketable securities	395,977
Maturities of marketable securities	266,000	171,600
Purchase of property and equipment	(2,615)	(1,655)	(5)
Proceeds from sale of assets	6
Net cash provided by (used in) investing activities	247,803	(427,817)	(5)
Financing Activities
Payment of debt issuance costs			(43)
Proceeds from stock option/warrant exercises	11,473	2,949	94
Proceeds from follow-on public offering, net		55,409
Proceeds from initial public offering, net			175,555
Excess tax benefits from share-based compensation	1,302	4,256
Repayment of venture debt facility, net			(11,900)
Proceeds from issuance of preferred stock, net			49,699
Proceeds from royalty purchase agreement		83,333	41,667
Net cash provided by financing activities	12,775	145,947	255,072
Net change in cash and cash equivalents	182,047	(170,782)	206,292
Cash and cash equivalents
Beginning of period	39,814	210,596	4,304
End of period	221,861	39,814	210,596
Supplemental disclosure of cash paid
Interest			1,523
Income taxes, net of refunds received	399	40,159
Supplemental disclosure of non-cash information related to investing activities
Change in unrealized loss on available for sale securities, net of tax	$ (408)	$ (65)
Supplemental disclosures of cash flow information
Conversion of preferred stock to common stock upon completion of IPO			174,310
Accreted dividends on Series A, Series A-1, Series of B, B-1 and Series C Preferred Stock			$ 5,891

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and include all adjustments necessary for the fair presentation of the Company's financial position for the periods presented.

Use of Estimates

The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company's Balance Sheets and the amount of expenses reported for each of the periods presented are affected by estimates and assumptions, which are used for, but not limited to, accounting for research and development costs, revenue recognition, accounting for share-based compensation and accounting for income taxes. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments with an original maturity of 90 days or less when purchased to be cash equivalents. The carrying amounts reported in the Balance Sheets for cash and cash equivalents are valued at cost, which approximates their fair value.

Available for Sale Securities

The Company considers securities with original maturities of greater than 90 days to be available for sale securities. Available for sale securities with original maturities of greater than one year are recorded as non-current assets. Available for sale securities are recorded at fair value and unrealized gains and losses are recorded within accumulated other comprehensive income (loss). The estimated fair value of the available for sale securities is determined based on quoted market prices or rates for similar instruments. In addition, the cost of debt securities in this category is adjusted for amortization of premium and accretion of discount to maturity. The Company evaluates securities with unrealized losses to determine whether such losses, if any, are other than temporary.

Revenue Recognition

Collaboration Revenue

Prior to 2014, the Company had not generated any revenue. In May 2014, the Company received an upfront payment of $200.0 million in connection with its licensing and commercialization agreement with Novartis Pharma AG, (the "Novartis Agreement"), which has not been recorded as revenue due to certain contingencies associated with the payment. In each of September 2014 and March 2015, the Company achieved a $50.0 million enrollment-based milestone, or $100.0 million in the aggregate, under the Novartis Agreement. The Company recognized revenue of approximately $51.5 million during the year ended December 31, 2015, the majority of which related to the $50.0 million milestone payment it achieved in March 2015. The balance of the milestone payment was recorded as deferred revenue. The Company uses the relative selling price method to allocate arrangement consideration to the Company's performance obligations under the Novartis Agreement. Below is a summary of the components of the Company's collaboration revenue for the years ended December 2015, 2014 and 2013:

	Years ended December 31,
	2015		2014		2013
License revenue	$	38,083	$	38,373	$	—
Research and development activity revenue		8,378		2,000		—
API transfer revenue		5,020		883		—
Joint operating committee revenue		24		3		—

Total collaboration revenue	$	51,505	$	41,259	$	—

In the future, the Company may generate additional revenues from a combination of product sales and license fees, milestone payments, research and development activity-related payments, payments for manufactured material and royalties in connection with the Novartis Agreement. The terms of this agreement and other potential collaboration or commercialization agreements the Company may enter into generally contain multiple elements, or deliverables, which may include (i) licenses, or options to obtain licenses, to certain of the Company's technology and products, (ii) research and development activities to be performed on behalf of the collaborative partner, and (iii) in certain cases, services in connection with the manufacturing of preclinical, clinical and commercial material. Payments to the Company under these arrangements typically include one or more of the following: non-refundable, upfront license fees; option exercise fees; funding of research and/or development efforts; milestone payments; payments for manufactured material; and royalties on future product sales.

When evaluating multiple element arrangements, the Company considers whether the deliverables under the arrangement represent separate units of accounting. This evaluation requires subjective determinations and requires management to make judgments about the individual deliverables and whether such deliverables are separable from the other aspects of the contractual relationship. In determining the units of accounting, management evaluates certain criteria, including whether the deliverables have standalone value, based on the relevant facts and circumstances for each arrangement. The consideration received is allocated among the separate units of accounting using the relative selling price method, and the applicable revenue recognition criteria are applied to each of the separate units.

The Company determines the estimated selling price for deliverables within each agreement using vendor-specific objective evidence ("VSOE") of selling price, if available, third-party evidence ("TPE") of selling price if VSOE is not available, or best estimate of selling price ("BESP") if neither VSOE nor TPE is available. Determining the best estimate of selling price for a deliverable requires significant judgment. The Company uses BESP to estimate the selling price for licenses to the Company's proprietary technology, since the Company often does not have VSOE or TPE of selling price for these deliverables. In those circumstances where the Company utilizes BESP to determine the estimated selling price of a license to the Company's proprietary technology, the Company considers market conditions as well as entity-specific factors, including those factors contemplated in negotiating the agreements as well as internally developed models that include assumptions related to the market opportunity, estimated development costs, probability of success and the time needed to commercialize a product candidate that is subject to the license. In validating the Company's BESP, the Company evaluates whether changes in the key assumptions used to determine the BESP will have a significant effect on the allocation of arrangement consideration among multiple deliverables.

When management believes the license to its intellectual property and products has stand-alone value, the Company generally recognizes revenue attributed to the license upon delivery. When management believes such a license does not have stand-alone value from the other deliverables to be provided in the arrangement, the Company generally recognizes revenue attributed to the license on a straight-line basis over the Company's contractual or estimated performance period, which is typically the term of the Company's research and development obligations. If management cannot reasonably estimate when the Company's performance obligation ends, then revenue is deferred until management can reasonably estimate when the performance obligation ends. The periods over which revenue should be recognized are subject to estimates by management and may change over the course of the research and development agreement. Such a change could have a material impact on the amount of revenue the Company records in future periods.

At the inception of arrangements that include milestone payments, the Company evaluates whether each milestone is substantive and at risk to both parties on the basis of the contingent nature of the milestone. This evaluation includes an assessment of whether (a) the consideration is commensurate with either (1) the entity's performance to achieve the milestone, or (2) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the entity's performance to achieve the milestone, (b) the consideration relates solely to past performance, and (c) the consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. The Company evaluates factors such as the scientific, regulatory, commercial and other risks that must be overcome to achieve the respective milestone, the level of effort and investment required to achieve the respective milestone and whether the milestone consideration is reasonable relative to all deliverables and payment terms in the arrangement in making this assessment.

The Company aggregates its milestones into three categories: (i) clinical and development milestones, (ii) regulatory milestones, and (iii) commercial milestones. Clinical and development milestones are typically achieved when a product candidate advances into a defined phase of clinical research or completes such phase or when a contractually specified clinical trial enrollment target is attained. Regulatory milestones are typically achieved upon acceptance of the submission of an application for marketing approval for a product candidate or upon approval to market the product candidate by the U.S. Food and Drug Administration (the "FDA") or other regulatory authorities. Commercial milestones are typically achieved when an approved pharmaceutical product reaches certain defined levels of net sales by the licensee, such as when a product first achieves global sales or annual sales of a specified amount.

Revenues from clinical and development and regulatory milestone payments, if the milestones are deemed substantive and the milestone payments are nonrefundable, are recognized upon successful accomplishment of the milestones. With regard to the Novartis Agreement, the Company has concluded that the clinical and development milestones and certain reimbursement milestones are not substantive and that the marketing approval milestones are substantive. Milestone payments received that are not considered substantive are included in the allocable arrangement consideration and are recognized as revenue in proportion to the relative-selling price allocation established at the inception of the arrangement. Revenues from commercial milestone payments are accounted for as royalties and are recorded as revenue upon achievement of the milestone, assuming all other revenue recognition criteria are met.

Concentration of Credit Risk

The Company's financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents and available for sale securities. The Company maintains its cash in bank accounts, which generally exceed federally insured limits. The Company maintains its cash equivalents in U.S. Treasury securities with original maturities of 90 days or less and investments in money market funds.

The Company's available for sale securities are also invested in U.S. Treasury securities and investment-grade corporate debt securities. The Company believes it is not exposed to significant credit risk on its cash, cash equivalents and available for sale securities.

Foreign Currency Translation

The Company considers the U.S. dollar to be its functional currency. Expenses denominated in foreign currencies are translated at the exchange rate on the date the expense is incurred. The effect of exchange rate fluctuations on translating foreign currency assets and liabilities into U.S. dollars is included in the Statements of Operations. Foreign exchange transaction gains and losses are included in the results of operations and are not material in the Company's financial statements.

Financial Instruments

Cash equivalents and available for sale securities are reflected in the accompanying financial statements at fair value. The carrying amount of accounts payable and accrued expenses, including accrued research and development expenses, approximates fair value due to the short-term nature of those instruments.

Property and Equipment

Property and equipment, which consists mainly of manufacturing and clinical equipment, furniture and fixtures, computers and other office equipment, and leasehold improvements, are carried at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the respective assets, generally three to ten years, using the straight-line method.

Research and Development

Research and development expenses primarily consist of costs associated with the manufacturing, development and clinical testing of Fovista and Zimura as well as costs associated with the preclinical development of other product candidates and formulations. Research and development expenses consist of:


	•	external research and development expenses incurred under arrangements with third parties, such as contract research organizations ("CROs") and other vendors and contract manufacturing organizations ("CMOs") for the production of drug substance and drug product; and
	•	employee-related expenses, including salaries, benefits and share-based compensation expense.

Research and development expenses also include costs of acquired product licenses and related technology rights where there is no alternative future use, costs of prototypes used in research and development, consultant fees and amounts paid to collaborative partners.

All research and development expenses are charged to operations as incurred in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic, or ASC, 730, Research and Development. The Company accounts for non-refundable advance payments for goods and services that will be used in future research and development activities as expenses when the service has been performed or when the goods have been received, rather than when the payment is made.

Income Taxes

The Company utilizes the liability method of accounting for deferred income taxes, as set forth in ASC 740-10, Income Taxes—Overall. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. The Company incurred U.S. federal net operating losses ("NOLs") in each year from its inception in 2007 through 2013 and utilized these NOLs in 2014. As such, all prior tax years since 2007 remain subject to potential tax examination as the utilization of NOLs from prior years opens the relevant year to potential audit.

Share-Based Compensation

The Company follows the provisions of ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and non-employee directors, including employee stock options and restricted stock units ("RSUs"). Share-based compensation expense is based on the grant date fair value estimated in accordance with the provisions of ASC 718 and is generally recognized as an expense over the requisite service period, net of forfeitures. For grants containing performance-based vesting provisions, expense is recognized over the estimated achievement period.

Stock Options

The Company estimates the fair value of stock options granted to employees and non-employee directors on the date of grant using the Black-Scholes option-pricing model. Due to the lack of trading history, the Company's computation of stock-price volatility is based on the volatility rates of comparable publicly held companies over a period equal to the expected term of the options granted by the Company. The Company's computation of expected term is determined using the "simplified" method, which is the midpoint between the vesting date and the end of the contractual term. The Company believes that it does not have sufficient reliable exercise data in order to justify the use of a method other than the "simplified" method of estimating the expected exercise term of employee stock option grants. The Company utilizes a dividend yield of zero based on the fact that the Company has never paid cash dividends to stockholders and has no current intentions to pay cash dividends. The risk-free interest rate is based on the zero-coupon U.S. Treasury yield at the date of grant for a term equivalent to the expected term of the option.

For stock options granted as consideration for services rendered by consultants, the Company recognizes expense in accordance with the requirements of ASC 505-50, Equity Based Payments to Non-Employees. Consultant stock option grants are recorded as an expense over the vesting period of the underlying stock options. At the end of each financial reporting period prior to vesting, the value of these options, as calculated using the Black-Scholes option-pricing model, will be re-measured using the fair value of the Company's common stock and the non-cash expense recognized during the period will be adjusted accordingly. Since the fair value of options granted to consultants is subject to change in the future, the amount of the future expense will include fair value re-measurements until the stock options are fully vested.

RSUs

The Company estimates the fair value of RSUs granted to employees using the closing market price of the Company's common stock on the date of grant.

Share-based compensation expense includes expenses related to stock options and RSUs granted to employees, non-employee directors and consultants, and has been reported in the Company's Statements of Operations as follows:

	Years ended December 31,
	2015		2014		2013
Research and development	$	16,608	$	7,594	$	2,062
General and administrative		8,152		5,446		809

Total	$	24,760	$	13,040	$	2,871

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update, or ASU, No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for public entities for annual reporting periods beginning after December 15, 2016 and interim periods within those annual periods. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which provides a one-year deferral of the effective date for the new revenue standard. Public companies should now apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017 and interim periods within those annual periods. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that annual period. Companies may use either a full retrospective or a modified retrospective approach to adopt ASU 2014-09. The Company is currently assessing the impact that adopting this new accounting guidance will have on its financial statements and footnote disclosures.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which defines management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures if there is substantial doubt about its ability to continue as a going concern. The pronouncement is effective for annual reporting periods ending after December 15, 2016 with early adoption permitted. The adoption of this guidance is not expected to have a significant impact on the Company's financial statements.

In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which updated and simplified the presentation of deferred income taxes. Current GAAP requires an entity to separate deferred income tax assets and liabilities into current and non-current amounts in a classified statement of financial position. The requirement results in little or no benefit to users of financial statements because the classification does not generally align with the time period in which the recognized deferred tax amounts are expected to be recovered or settled. To simplify the presentation of deferred income taxes, the amendments in this update require that deferred tax assets and liabilities be classified as noncurrent in a classified statement of financial position. The current requirement that deferred tax assets and liabilities of a tax-paying component of an entity be offset and presented as a single amount is not affected by the amendments in this update. The amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Earlier application is permitted as of the beginning of an interim or annual reporting period. The Company has elected to adopt this standard retrospectively, effective December 31, 2015. As a result of this adoption, the Company reclassified its deferred income tax asset, current as of December 31, 2014, to deferred income taxes to conform with current year presentation.

Net Loss Per Common Share

12 Months Ended

Dec. 31, 2015

Net Loss Per Common Share

Net Loss Per Common Share

4. Net Loss Per Common Share

Basic and diluted net loss per common share is determined by dividing net loss by the weighted average common shares outstanding during the period. For the periods where there is a net loss, stock options, RSUs and warrants have been excluded from the calculation of diluted net loss per common share because their effect would be anti-dilutive. Therefore, the weighted average common shares used to calculate both basic and diluted net loss per common share would be the same. The following table sets forth the computation of basic and diluted net loss per common share for the periods indicated:

	Years ended December 31,
	2015			2014			2013
Basic and diluted net loss per common share calculation:
Net loss	$	(105,717	)	$	(116,772	)	$	(51,145	)
Accretion of preferred stock dividends		—			—			(5,891	)

Net loss attributable to common stockholders	$	(105,717	)	$	(116,772	)	$	(57,036	)


Weighted average common shares outstanding		34,580			33,258			9,003


Net loss per common share—basic and diluted	$	(3.06	)	$	(3.51	)	$	(6.34	)

The following potentially dilutive securities have been excluded from the computations of diluted weighted average common shares outstanding for the periods presented, as they would be anti-dilutive:

	Years ended December 31,
	2015		2014		2013
Options outstanding		3,009		3,680		2,708
Restricted stock units		288		37		—
Warrants		—		14		88

Total		3,297		3,731		2,796

Cash, Cash Equivalents and Available for Sale Securities

12 Months Ended

Dec. 31, 2015

Cash, Cash Equivalents and Available for Sale Securities

Cash, Cash Equivalents and Available for Sale Securities

5. Cash, Cash Equivalents and Available for Sale Securities

The Company considers all highly liquid investments purchased with original maturities of 90 days or less at the date of purchase to be cash equivalents. Cash and cash equivalents included cash of $5.5 million and $4.7 million at December 31, 2015 and 2014, respectively. Cash and cash equivalents at December 31, 2015 and December 31, 2014 also included $216.4 million and $35.1 million, respectively, of investments in money market funds and U.S. Treasury securities with original maturities of 90 days or less.

The Company considers securities with original maturities of greater than 90 days to be available for sale securities. The Company held available for sale securities with a fair value totaling $170.0 million and $423.7 million as of December 31, 2015 and 2014, respectively. These available for sale securities consisted of U.S. Treasury securities and investment-grade corporate debt securities. At December 31, 2015, the Company held available for sale securities of $74.7 million with maturities of less than one year, and $95.3 million with maturities of greater than one year. The Company evaluates securities with unrealized losses, if any, to determine whether such losses are other than temporary. The Company has determined that there were no other than temporary losses in fair value of its investments as of December 31, 2015. The Company classifies these securities as available for sale, however, the Company does not currently intend to sell its investments and the Company believes it is more likely than not that the Company will recover the carrying value of these investments.

Available for sale securities, including carrying value and estimated fair values, are summarized as follows:

	As of December 31, 2015
	Cost		Fair Value		Carrying Value		Unrealized Loss
U.S. Treasury securities	$	130,507	$	130,196	$	130,196	$	(311	)
Corporate debt securities		39,995		39,833		39,833		(162	)

Total	$	170,502	$	170,029	$	170,029	$	(473	)

	As of December 31, 2014
	Cost		Fair Value		Carrying Value		Unrealized Loss
U.S. Treasury securities	$	423,859	$	423,746	$	423,746	$	(113	)
Corporate debt securities		—		—		—		—

Total	$	423,859	$	423,746	$	423,746	$	(113	)

The Company's available for sale securities are reported at fair value on the Company's balance sheet. Unrealized gains (losses) are reported within accumulated other comprehensive income (loss) in the statements of comprehensive income (loss). The cost of securities sold and any realized gains/losses from the sale of available for sale securities are based on the specific identification method. The changes in accumulated other comprehensive income (loss) associated with the unrealized loss on available for sale securities for the years ended December 31, 2015 and December 31, 2014 were as follows:

	Years ended December 31,
	2015			2014
Beginning balance	$	(65	)	$	—
Current period changes in fair value before reclassifications, net of tax		(351	)		(65	)
Amounts reclassified from accumulated other comprehensive income, net of tax		(57	)		—

Total other comprehensive income, net of tax		(408	)		(65	)

Ending balance	$	(473	)	$	(65	)

Licensing and Commercialization Agreement with Novartis Pharma AG

12 Months Ended

Dec. 31, 2015

Licensing and Commercialization Agreement with Novartis Pharma AG

Licensing and Commercialization Agreement with Novartis Pharma AG

6. Licensing and Commercialization Agreement with Novartis Pharma AG

In May 2014, the Company entered into a licensing and commercialization agreement with Novartis Pharma AG ("Novartis", and such agreement, the "Novartis Agreement"). Under the Novartis Agreement, the Company granted Novartis exclusive rights under specified patent rights, know-how and trademarks controlled by the Company to manufacture, from bulk active pharmaceutical ingredient, or API, supplied by the Company, standalone Fovista products and products combining Fovista with an anti-VEGF drug to which Novartis has rights in a co-formulated product, for the treatment, prevention, cure or control of any human disease, disorder or condition of the eye, and to develop and commercialize those licensed products in all countries outside of the United States (the "Novartis Territory"). The Company has agreed to use commercially reasonable efforts to complete its ongoing pivotal Phase 3 clinical program for Fovista and Novartis has agreed to use commercially reasonable efforts to develop a standalone Fovista product and a co-formulated product containing Fovista and an anti-VEGF drug to which Novartis has rights, as well as a pre-filled syringe presentation of such products and to use commercially reasonable efforts, subject to obtaining marketing approval, to commercialize licensed products in the Novartis Territory in accordance with agreed development and marketing plans. Novartis has also granted the Company options, subject to specified limitations, and to the extent such rights are controlled by Novartis, to obtain exclusive rights from Novartis to develop and commercialize in the United States the co-formulated and pre-filled syringe products developed by Novartis. The Company and Novartis have each granted the other options, subject to specified limitations, to obtain access to study data from certain clinical trials of licensed products that the Company or Novartis may conduct, including for use by the other in regulatory filings in its territory. The Company has agreed to exclusively supply Novartis, and Novartis has agreed to exclusively purchase from the Company, its clinical and commercial requirements for the bulk API for Fovista for use in licensed products in the Novartis Territory. The Company has agreed not to commercialize any product comprising Fovista or any other anti-PDGF product in the ophthalmic field in the Novartis Territory.

Novartis paid the Company a $200.0 million upfront fee upon execution of the Novartis Agreement. Under the terms of the Novartis Agreement, Novartis is also obligated to pay the Company up to an aggregate of $130.0 million if the Company achieves specified patient enrollment-based milestones for its Phase 3 clinical program for Fovista, of which $50.0 million was achieved in September 2014 and received by the Company in October 2014 and $50.0 million was achieved in March 2015 and received in April 2015, and up to an aggregate of an additional $300.0 million upon achievement of specified regulatory milestones, including marketing approval and reimbursement approval in certain countries in the Novartis Territory. In addition, Novartis has agreed to pay the Company up to an aggregate of an additional $400.0 million if Novartis achieves specified sales milestones in the Novartis Territory. Novartis is also obligated to pay the Company royalties with respect to standalone Fovista products and combination Fovista products that Novartis successfully commercializes. The Company will receive royalties at a mid-thirties percentage of net sales of standalone Fovista products and a royalty of approximately equal value for sales of combination Fovista products. Such royalties are subject to customary deductions, credits, and reductions for lack of patent coverage or market exclusivity. Novartis's obligation to pay such royalties will continue on a licensed product-by-licensed product and country-by-country basis until Novartis's last actual commercial sale of such licensed product in such country. The Company will continue to be responsible for royalties it owes to third parties on sales of Fovista products.

Novartis has agreed to pay the Company's manufacturing costs plus a specified percentage margin for commercial supplies of the bulk API for Fovista that the Company supplies to Novartis. If the Company or Novartis exercises each of their respective rights to obtain access to study data from clinical trials conducted by the other party, the party exercising the option will be obligated to pay the other party's associated past development costs and share with such other party any future associated development costs. If the Company exercises its option to obtain Novartis-controlled rights to develop, manufacture and commercialize any co-formulated Fovista product in the United States, the Company will be obligated to pay a specified percentage of Novartis's associated past development costs and share with Novartis any future associated development costs. The Company and Novartis will also need to negotiate and agree on financial and other terms that would apply to such rights. If the Company exercises its option to obtain Novartis-controlled rights to develop and commercialize a pre-filled syringe product in the United States, the Company will be obligated to either enter into a supply agreement with Novartis under which the Company will pay Novartis its manufacturing cost plus a specified percentage margin for supplies of Fovista products in pre-filled syringes that Novartis supplies to the Company, or obtain supplies of products in pre-filled syringes from a third party manufacturer and pay Novartis a low single-digit percentage of the Company's net sales of such products.

The Company has retained control over the design and execution of its pivotal Phase 3 clinical program for Fovista and remains responsible for funding the costs of that program, subject to Novartis's responsibility to provide Lucentis, an anti-VEGF drug to which Novartis has rights in the Novartis Territory, for use in the Phase 3 trials already initiated and in other Phase 2 and Phase 3 clinical trials in the Novartis Territory following the effective date of the Novartis Agreement. Novartis will have control over, and will be responsible for the costs of, all other clinical trials that may be required to obtain marketing approvals in the Novartis Territory for licensed products under the agreement. Novartis is also responsible for costs associated with co-formulation development, pre-filled syringe development and other development costs in the Novartis Territory, excluding regulatory filing fees in the European Union for the standalone Fovista product, for which the Company will be responsible.

The Novartis Agreement, unless earlier terminated by the Company or Novartis, will expire upon the expiration of Novartis's obligation to pay the Company royalties on net sales of licensed products. The Company and Novartis each may terminate the Novartis Agreement if the other party materially breaches the agreement and does not cure such breach within a specified cure period, if the other party experiences any specified insolvency event, if the other party challenges or assists a third party in challenging the validity or enforceability of certain patent rights controlled by the terminating party, or if the parties are prevented in any manner that materially adversely affects the progression of the development or commercialization of licensed products for a specified period as a result of specified governmental actions. Novartis may terminate the Novartis Agreement at any time without cause, or within a specified period after a change in control of the Company, as defined in the Novartis Agreement, or for specified safety reasons, effective at the end of a specified period following Novartis's written notice to the Company of Novartis's election to terminate the agreement. The Company may also terminate the agreement if Novartis determines to seek marketing approval of an alternative anti-PDGF product in the Novartis Territory as more fully described below. If the Company elects to terminate the Novartis Agreement because specified governmental actions prevent the parties from materially progressing the development or commercialization of licensed products as described above, the Company will be required to pay a substantial termination fee. Following any termination, all rights to Fovista that the Company granted to Novartis, including, without limitation, the right to commercialize standalone Fovista products in the Novartis Territory, will revert to the Company, Novartis will perform specified activities in connection with transitioning to the Company the rights and responsibilities for the continued development, manufacture and commercialization of the standalone Fovista product for countries in the Novartis Territory, and the parties will cooperate on an orderly wind down of development and commercialization activities for other licensed products in the Novartis Territory.

Novartis has agreed to specified limitations on its ability to in-license, acquire or commercialize any anti-PDGF product that does not contain Fovista (an "Alternative Anti-PDGF Product") in the Novartis Territory and, to the extent Novartis develops, in-licenses or acquires such a product, to make such product available to the Company in the United States under specified option conditions. If the Company exercises its option, the Company will be obligated to make certain payments to Novartis, including specified milestone and royalty payments. The amounts of such payments will vary based on the product's stage of clinical development at the time the Company exercises its option, whether the product is a standalone or combination product and whether Novartis exercises an option to co-promote such product in the United States. If Novartis determines to seek marketing approval of an Alternative Anti-PDGF Product in the Novartis Territory, the Company will, subject to specified limitations, have the option to terminate the Novartis Agreement, convert Novartis's exclusive licenses into non-exclusive licenses, or elect to receive a royalty on sales of such product by Novartis. If the Company elects to terminate the Novartis Agreement, Novartis will, subject to specified limitations, be required to pay to the Company, certain payments based on achievement, with respect to such product, of the milestones that would have otherwise applied to licensed products under the Novartis Agreement.

Activities under the Novartis Agreement were evaluated under ASC 605-25, Revenue Recognition—Multiple Element Arrangements ("ASC 605-25") (as amended by ASU 2009-13, Revenue Recognition ("ASU 2009-13")) to determine if they represented a multiple element revenue arrangement. The Novartis Agreement includes the following deliverables: (1) an exclusive license to commercialize Fovista outside the United States (the "License Deliverable"); (2) the performance obligation to conduct research and development activities related to the Phase 3 Fovista clinical trials and certain Phase 2 trials for Fovista (the "R&D Activity Deliverable"); (3) the performance obligation to supply API to Novartis for development and manufacturing purposes (the "Manufacturing Deliverable") and (4) the Company's obligation to participate on the joint operating committee established under the terms of the Novartis Agreement and related subcommittees (the "Joint Operating Committee Deliverable"). Novartis has the right, subject to the certain approval rights of the Company, to sublicense the exclusive royalty-bearing license to commercialize Fovista in the Novartis Territory. The Company's obligation to provide access to clinical and regulatory information as part of the License Deliverable includes the obligation to provide access to all clinical data, regulatory filings, safety data and manufacturing data to Novartis which is necessary for commercialization of Fovista in the Novartis Territory. The R&D Activity Deliverable includes the right and responsibility for the Company to conduct the Phase 3 Fovista clinical program and other studies of Fovista in the Novartis Territory which are necessary or desirable for regulatory approval or commercialization of Fovista. The Manufacturing Deliverable includes the obligation for the Company to supply API to Novartis for development and commercial purposes, for which Novartis has agreed to pay the Company's manufacturing costs, plus a specified margin. The Joint Operating Committee Deliverable includes the obligation to participate in the Joint Operating Committee and related subcommittees at least through the first anniversary of regulatory approval in the European Union. All of these deliverables were deemed to have stand-alone value and to meet the criteria to be accounted for as separate units of accounting under ASC 605-25. Factors considered in this determination included, among other things, the subject of the licenses and the research and development and commercial capabilities of Novartis. Accordingly, each unit will be accounted for separately.

Options are considered substantive if, at the inception of the arrangement, the Company is at risk as to whether the collaboration partner will choose to exercise the option. Factors that the Company considers in evaluating whether an option is substantive include the overall objective of the arrangement, the benefit the collaborator might obtain from the arrangement without exercising the option, the cost to exercise the option and the likelihood that the option will be exercised. For arrangements under which an option is considered substantive, assuming the option is not priced at a significant and incremental discount, the Company does not consider the item underlying the option to be a deliverable at the inception of the arrangement and the associated option fees are not included in allocable arrangement consideration. Conversely, for arrangements under which an option is not considered substantive or if an option is priced at a significant and incremental discount, the Company would consider the item underlying the option to be a deliverable at the inception of the arrangement and a corresponding amount would be included in allocable arrangement consideration. All of the options included in the Novartis Agreement have been determined to be substantive, and none of the options are priced at a significant and incremental discount.

The Novartis Agreement provides that, if the Company elects to terminate the Novartis Agreement because specified governmental actions prevent the parties from materially progressing the development or commercialization of licensed products as described above, the Company will be required to pay a substantial termination fee. The Company has concluded that this termination provision constitutes a contingent event that was unknown at the inception of the agreement. As such, the Company has recorded the $200.0 million upfront payment in deferred revenue, long-term until such time that the contingency related to this termination provision is resolved. The Company believes the enrollment milestones and certain reimbursement milestones that may be achieved under the Novartis Agreement do not meet the recognition criteria within the definition of a milestone included in ASU 2010-17, Revenue Recognition—Milestone Method, and therefore, payments received for the achievement of the enrollment milestones in excess of the termination fee will be included in the allocable arrangement consideration and allocated to the deliverables based upon BESP using the relative selling price method.

The Company believes the marketing approval milestones that may be achieved under the Novartis Agreement are consistent with the definition of a milestone included in ASU 2010-17, Revenue Recognition—Milestone Method, and, accordingly, the Company will recognize payments related to the achievement of such milestones, if any, when the applicable milestone is achieved. Factors considered in this determination included scientific and regulatory risks that must be overcome to achieve each milestone, the level of effort and investment required to achieve each milestone, and the monetary value attributed to each milestone.

In each of September 2014 and March 2015, the Company achieved a $50.0 million enrollment-based milestone, or $100.0 million in aggregate, under the Novartis Agreement. The Company recognized revenue of approximately $51.5 million during the year ended December 31, 2015, the majority of which related to the $50.0 million milestone payment achieved in March 2015. The balance of the milestone payment was recorded as deferred revenue. The Company uses the relative selling price method to allocate arrangement consideration to the Company's performance obligations under the Novartis Agreement. Below is a summary of the components of the Company's collaboration revenue for the years ended December 31, 2015, 2014, and 2013:

	Years ended December 31,
	2015		2014		2013
License revenue	$	38,083	$	38,373	$	—
Research and development activity revenue		8,378		2,000		—
API transfer revenue		5,020		883		—
Joint operating committee revenue		24		3		—

Total collaboration revenue	$	51,505	$	41,259	$	—

Income Taxes

12 Months Ended

Dec. 31, 2015

Income Taxes

Income Taxes

9. Income Taxes

The Company utilizes the liability method of accounting for deferred income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. A valuation allowance is established against deferred tax assets when, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company's policy is to record interest and penalties on uncertain tax positions as income tax expense. As of December 31, 2015, the Company accrued approximately $0.3 million in interest and penalties related to the timing of certain tax payments for the 2014 tax year. As of December 31, 2014, the Company did not believe any material uncertain tax positions were present, and as such, the Company did not accrue any interest or penalties due to uncertain tax positions.

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A reconciliation of the statutory U.S. federal rate to the Company's effective tax rate is as follows:

	Years ended December 31,
	2015			2014			2013
Percent of pre-tax income:
U.S. federal statutory income tax rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal benefit		7.4	%		6.8	%		—
Permanent items		(0.5	)%		2.3	%		(2.2	)%
Impact of state rate changes		0.9	%		—			—
Research and development credit		—			—			2.7	%
Change in valuation allowance		(29.1	)%		(89.5	)%		(35.5	)%

Effective income tax rate		13.7	%		(45.4	)%		0.0	%

The components of income tax (benefit) expense are as follows:

	Years ended December 31,
	2015			2014			2013
Current:
Federal	$	136		$	29,505		$	—
State		91			11,440			—
Deferred:
Federal		(17,014	)		(4,469	)		—
State		—			—			—

Income tax (benefit) expense	$	(16,787	)	$	36,476		$	—

Significant components of the Company's deferred tax assets (liabilities) for 2015 and 2014 consist of the following:

	As of December 31,
	2015			2014
Deferred tax assets (liabilities)
Deferred revenue	$	142,675		$	120,611
License and technology payments		13,150			14,251
Share-based compensation		11,427			5,679
Accrued expenses		743			442
Depreciation		(617	)		(328	)
Federal and state net operating loss carryforwards		26,065			—
Excess tax benefits related to share-based compensation		1,630			—
Charitable contribution carryforwards		5			—

Deferred income tax assets		195,078			140,655
Valuation allowance		(171,965	)		(136,138	)

Net deferred tax assets	$	23,113		$	4,517

In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of taxable income during the periods in which the temporary differences representing net future deductible amounts become deductible, and is impacted by the Company's ability to carryback losses to 2014, the only year in which the Company had taxable income. The Company incurred tax losses in 2015. As such, the Company has recorded a benefit from income taxes during the year ended December 31, 2015. The Company currently expects to realize its net deferred tax assets recorded as of December 31, 2015 due to the Company's ability to carryback its expected 2015 federal tax losses to 2014. The Company expects to carry forward its 2015 state tax losses due to various state restrictions on the use of carryback claims. The state NOLs are expected to begin to expire in 2027. Because of the Company's history of losses and lack of other positive evidence to support taxable income after the 2014 tax year, the Company has recorded a valuation allowance against those remaining deferred tax assets that are not expected to be realized.

Deferred tax assets relating to employee share-based compensation deductions were reduced to reflect exercises of non-qualified stock option grants and vesting of RSUs. Although certain of these deductions will be reported on the corporate tax returns and increase the Company's NOLs, these related tax benefits are not recognized for financial reporting purposes.

Stock Option and Compensation Plans

12 Months Ended

Dec. 31, 2015

Stock Option and Compensation Plans

Stock Option and Compensation Plans

12. Stock Option and Compensation Plans

The Company adopted its 2007 Stock Incentive Plan (the "2007 Plan") for employees, non-employee directors and consultants for the purpose of advancing the interests of the Company's stockholders by enhancing its ability to attract, retain and motivate persons who are expected to make important contributions to the Company. The 2007 Plan provided for the granting of stock option awards, RSU awards, and other stock-based and cash-based awards. Following the effectiveness of the 2013 Stock Incentive Plan described below in connection with the closing of the Company's initial public offering, the Company is no longer granting additional awards under the 2007 Plan.

In August 2013, the Company's board of directors adopted and the Company's stockholders approved the 2013 stock incentive plan (the "2013 Plan"), which became effective immediately prior to the closing of the Company's initial public offering. The 2013 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, and other stock-based awards. Upon effectiveness of the 2013 Plan, the number of shares of the Company's common stock that were reserved for issuance under the 2013 Plan was the sum of (1) such number of shares (up to approximately 3,359,641 shares) as is equal to the sum of 739,317 shares (the number of shares of the common stock then available for issuance under the 2007 Plan), and such number of shares of the Company's common stock that are subject to outstanding awards under the 2007 Plan that expire, terminate or are otherwise surrendered, canceled, forfeited or repurchased by the Company at their original issuance price pursuant to a contractual repurchase right plus (2) an annual increase, to be added the first business day of each fiscal year, beginning with the fiscal year ending December 31, 2014 and continuing until, and including, the fiscal year ending December 31, 2023, equal to the lowest of 2,542,372 shares of the Company's common stock, 4% of the number of shares of the Company's common stock outstanding on the first day of the fiscal year and an amount determined by its board of directors. The Company's employees, officers, directors, consultants and advisors are eligible to receive awards under the 2013 Plan. However, incentive stock options may only be granted to employees of the Company.

In connection with the evergreen provisions of the 2013 Plan, the number of shares available for issuance under the 2013 Plan was increased by approximately 1,257,000 shares, effective as of January 1, 2014 and an additional approximately 1,360,000 shares effective as of January 1, 2015. As of December 31, 2015, the Company had approximately 1,070,000 shares available for grant under the 2013 Plan. In connection with the evergreen provisions of the 2013 Plan, the number of shares available for issuance under the 2013 Plan was further increased by approximately 1,408,000 shares, effective as of January 1, 2016.

On August 31, 2015, as an inducement grant issued outside the Company's existing equity compensation plan in accordance with NASDAQ listing rule 5635(c)(4) (an "inducement grant"), the Company issued to an employee an option to purchase 120,000 shares of its common stock at an exercise price of $44.03 per share.

A summary of the stock option activity, weighted average exercise prices, options outstanding and exercisable as of December 31, 2015, 2014 and 2013 is as follows:

	Years ended December 31,
	2015					2014					2013
	Common Stock Options			Weighted Average Exercise Price		Common Stock Options			Weighted Average Exercise Price		Common Stock Options			Weighted Average Exercise Price
Outstanding at beginning of year:		3,680		$	21.03		2,708		$	9.41		1,344		$	1.65
Granted		764		$	47.31		1,744		$	33.92		1,583		$	14.82
Exercised		(1,133	)	$	10.31		(621	)	$	4.75		(151	)	$	0.61
Expired or forfeited		(302	)	$	34.09		(151	)	$	28.50		(68	)	$	1.53

Outstanding at end of year:		3,009		$	30.43		3,680		$	21.03		2,708		$	9.41

	Years ended December 31,
	2015		2014		2013
Options exercisable at end of year		955		993		984
Weighted average grant date fair value (per share) of options granted during the period	$	31.33	$	24.41	$	10.48

As of December 31, 2015, there were approximately 2,794,000 options outstanding, net of estimated forfeitures, that had vested or are expected to vest. The weighted-average exercise price of these options was $23.18 per option; the weighted-average remaining contractual life of these options was 8.0 years; and the aggregate intrinsic value of these options was approximately $134.0 million.

			As of December 31, 2015
			Options Outstanding				Options Exercisable
Range of Exercise Prices	Total Options Outstanding		Weighted Average Remaining Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.12-$10.03		448		6.6	$	7.70		201	$	5.38
$10.04-$20.00		339		6.7	$	13.45		130	$	13.52
$20.01-$30.00		162		7.8	$	25.61		76	$	25.51
$30.01-$40.00		1,270		8.1	$	33.28		511	$	33.31
$40.01-$55.00		742		9.2	$	45.50		37	$	43.23
$55.01-$70.34		48		9.6	$	70.26		—	$	—

		3,009		8.0	$	30.43		955	$	24.50


Aggregate Intrinsic Value	$	144,758					$	51,594

Cash proceeds from, and the aggregate intrinsic value of, stock options exercised during the years ended December 31, 2015, 2014 and 2013, respectively, were as follows:

	Years ended December 31,
	2015		2014		2013
Cash Proceeds from options exercised	$	11,473	$	2,949	$	94
Aggregate intrinsic value of options exercised	$	49,255	$	21,646	$	4,545

In connection with stock option awards granted to employees, the Company recognized approximately $15.5 million, $11.3 million and $2.2 million in share-based compensation expense during the years ended December 31, 2015, 2014 and 2013, respectively, net of expected forfeitures. As of December 31, 2015, there was approximately $36.9 million of unrecognized compensation costs, net of estimated forfeitures, related to stock option awards to granted employees, which are expected to be recognized over a remaining weighted average period of 2.6 years.

In connection with stock options awards granted to consultants, the Company recognized approximately $4.1 million, $1.4 million and $0.7 million in share-based compensation expense during the years ended December 31, 2015, 2014 and 2013, respectively, net of expected forfeitures. As of December 31, 2015, there was approximately $4.3 million of unrecognized compensation costs, net of estimated forfeitures, related to stock option awards granted to consultants, which are expected to be recognized over a remaining weighted average period of 2.1 years.

The following table presents a summary of the Company's outstanding shares of RSU awards granted as of December 31, 2015:

	Restricted Stock Units			Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2014		37		$	34.13
Awarded		336			45.04
Vested		(55	)		41.90
Forfeited		(30	)		42.01

Outstanding, December 31, 2015		288		$	44.54

As of December 31, 2015, there were approximately 265,000 RSUs outstanding, net of estimated forfeitures, that are expected to vest. The weighted-average fair value of these RSUs was $44.54; and the aggregate intrinsic value of these RSUs was approximately $20.8 million.

In connection with RSUs granted to employees, the Company recognized approximately $5.2 million and $0.3 million in share-based compensation expense during the years ended December 31, 2015 and December 31, 2014, respectively, net of expected forfeitures. The Company did not recognize any share-based compensation expense related to RSUs during the year ended December 31, 2013. As of December 31, 2015, there was approximately $8.6 million of unrecognized compensation costs, net of estimated forfeitures, related to RSUs granted to employees, which are expected to be recognized over a remaining weighted average period of 2.9 years. The total fair value of the RSUs that vested during the year ended December 31, 2015 was $2.3 million.

Fair Value Measurements

12 Months Ended

Dec. 31, 2015

Fair Value Measurements

Fair Value Measurements

14. Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, defines fair value as the price that would be received to sell an asset, or paid to transfer a liability, in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The fair value standard also establishes a three-level hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

The Company reviews investments on a periodic basis for other than temporary impairments. This review is subjective as it requires management to evaluate whether an event or change in circumstances has occurred in the period that may have a significant adverse effect on the fair value of the investment. The Company uses the market approach to measure fair value for its financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets. The Company classifies its corporate debt securities within the fair value hierarchy as Level 2 assets, as it primarily utilizes quoted market prices or rates for similar instruments to value these securities.

The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows:


	•	Level 1—inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. The Company's Level 1 assets consist of investments in money market funds and U.S. Treasury securities.
	•	Level 2—inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. The Company's Level 2 assets consist of investments in investment-grade corporate debt securities.
	•	Level 3—inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. The Company does not hold any assets that are measured using Level 3 inputs.

The following table presents, for each of the fair value hierarchy levels required under ASC 820, the Company's assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2015:

	Fair Value Measurement Using
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Investments in money market funds*	$	196,188	$	—	$	—
Investments in U.S. Treasury securities	$	150,387	$	—	$	—
Investments in Corporate debt securities	$	—	$	39,833	$	—

	Fair Value Measurement Using
	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Assets
Investments in U.S. Treasury money market funds*	$	35,111	$	—	$	—
Investments in U.S. Treasury securities	$	423,746	$	—	$	—


*	Investments in money market funds and U.S. Treasury securities with maturities less than 90 days are reflected in cash and cash equivalents in the accompanying Balance Sheets.

No transfer of assets between Level 1 and Level 2 of the fair value measurement hierarchy occurred during the years ended December 31, 2015 or December 31, 2014.

Selected Quarterly Financial Information (unaudited)

12 Months Ended

Dec. 31, 2015

Selected Quarterly Financial Information (unaudited)

Selected Quarterly Financial Information (unaudited)

15. Selected Quarterly Financial Information (unaudited)

The following is a summary of the quarterly results of operations for the years ended December 31, 2015 and 2014:

	2015
	March 31		June 30			September 30			December 31
Collaboration revenue	$	41,678	$	1,597		$	3,448		$	4,782
Research and development expenses		24,557		32,059			40,479			33,917
General and administrative expenses		9,584		11,959			10,412			12,066

Income (loss) from operations		7,537		(42,421	)		(47,443	)		(41,201	)
Net income (loss) attributable to common stockholders	$	6,636	$	(37,131	)	$	(39,573	)	$	(35,649	)
Basic earnings (loss) per common share	$	0.19	$	(1.08	)	$	(1.14	)	$	(1.02	)
Diluted earnings (loss) per common share	$	0.19	$	(1.08	)	$	(1.14	)	$	(1.02	)

	2014
	March 31			June 30			September 30		December 31
Collaboration revenue	$	—		$	—		$	39,575	$	1,684
Research and development expenses		14,377			34,707			17,105		22,196
General and administrative expenses		6,349			7,570			8,812		10,656

Income (loss) from operations		(20,726	)		(42,277	)		13,658		(31,168	)
Net income (loss) attributable to common stockholders	$	(20,682	)	$	(72,990	)	$	8,552	$	(31,652	)
Basic earnings (loss) per common share	$	(0.64	)	$	(2.19	)	$	0.26	$	(0.94	)
Diluted earnings (loss) per common share	$	(0.64	)	$	(2.19	)	$	0.25	$	(0.94	)

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2015

Summary of Significant Accounting Policies

Basis of Presentation

Use of Estimates

Cash and Cash Equivalents

Available for Sale Securities

Revenue Recognition

Collaboration Revenue

	Years ended December 31,
	2015		2014		2013
License revenue	$	38,083	$	38,373	$	—
Research and development activity revenue		8,378		2,000		—
API transfer revenue		5,020		883		—
Joint operating committee revenue		24		3		—

Total collaboration revenue	$	51,505	$	41,259	$	—

Concentration of Credit Risk

Foreign Currency Translation

Financial Instruments

Property and Equipment

Research and Development


	•	external research and development expenses incurred under arrangements with third parties, such as contract research organizations ("CROs") and other vendors and contract manufacturing organizations ("CMOs") for the production of drug substance and drug product; and
	•	employee-related expenses, including salaries, benefits and share-based compensation expense.

Income Taxes

Share-Based Compensation

Stock Options

RSUs

The Company estimates the fair value of RSUs granted to employees using the closing market price of the Company's common stock on the date of grant.

	Years ended December 31,
	2015		2014		2013
Research and development	$	16,608	$	7,594	$	2,062
General and administrative		8,152		5,446		809

Total	$	24,760	$	13,040	$	2,871

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2015

Summary of Significant Accounting Policies

Schedule of collaboration revenue components

	Years ended December 31,
	2015		2014		2013
License revenue	$	38,083	$	38,373	$	—
Research and development activity revenue		8,378		2,000		—
API transfer revenue		5,020		883		—
Joint operating committee revenue		24		3		—

Total collaboration revenue	$	51,505	$	41,259	$	—

Schedule of share-based compensation expense including expenses related to stock options and RSUs granted to employees and non-employees

	Years ended December 31,
	2015		2014		2013
Research and development	$	16,608	$	7,594	$	2,062
General and administrative		8,152		5,446		809

Total	$	24,760	$	13,040	$	2,871

Net Loss Per Common Share (Tables)

12 Months Ended

Dec. 31, 2015

Net Loss Per Common Share

Schedule of computation of basic and diluted net loss per common share

	Years ended December 31,
	2015			2014			2013
Basic and diluted net loss per common share calculation:
Net loss	$	(105,717	)	$	(116,772	)	$	(51,145	)
Accretion of preferred stock dividends		—			—			(5,891	)

Net loss attributable to common stockholders	$	(105,717	)	$	(116,772	)	$	(57,036	)


Weighted average common shares outstanding		34,580			33,258			9,003


Net loss per common share—basic and diluted	$	(3.06	)	$	(3.51	)	$	(6.34	)

Schedule of potentially dilutive securities that have been excluded from the computations of diluted weighted average common shares outstanding

	Years ended December 31,
	2015		2014		2013
Options outstanding		3,009		3,680		2,708
Restricted stock units		288		37		—
Warrants		—		14		88

Total		3,297		3,731		2,796

Cash, Cash Equivalents and Available for Sale Securities (Tables)

12 Months Ended

Dec. 31, 2015

Cash, Cash Equivalents and Available for Sale Securities

Summary of available for sale securities, including carrying value and estimated fair values

	As of December 31, 2015
	Cost		Fair Value		Carrying Value		Unrealized Loss
U.S. Treasury securities	$	130,507	$	130,196	$	130,196	$	(311	)
Corporate debt securities		39,995		39,833		39,833		(162	)

Total	$	170,502	$	170,029	$	170,029	$	(473	)

	As of December 31, 2014
	Cost		Fair Value		Carrying Value		Unrealized Loss
U.S. Treasury securities	$	423,859	$	423,746	$	423,746	$	(113	)
Corporate debt securities		—		—		—		—

Total	$	423,859	$	423,746	$	423,746	$	(113	)

Schedule of changes in accumulated other comprehensive income (loss) associated with the unrealized loss on available for sale securities

	Years ended December 31,
	2015			2014
Beginning balance	$	(65	)	$	—
Current period changes in fair value before reclassifications, net of tax		(351	)		(65	)
Amounts reclassified from accumulated other comprehensive income, net of tax		(57	)		—

Total other comprehensive income, net of tax		(408	)		(65	)

Ending balance	$	(473	)	$	(65	)

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References + Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Taxes

Schedule of reconciliation of the statutory U.S. federal rate to the Company's effective tax rate

	Years ended December 31,
	2015			2014			2013
Percent of pre-tax income:
U.S. federal statutory income tax rate		35.0	%		35.0	%		35.0	%
State taxes, net of federal benefit		7.4	%		6.8	%		—
Permanent items		(0.5	)%		2.3	%		(2.2	)%
Impact of state rate changes		0.9	%		—			—
Research and development credit		—			—			2.7	%
Change in valuation allowance		(29.1	)%		(89.5	)%		(35.5	)%

Effective income tax rate		13.7	%		(45.4	)%		0.0	%

Schedule of components of income tax (benefit) expense

	Years ended December 31,
	2015			2014			2013
Current:
Federal	$	136		$	29,505		$	—
State		91			11,440			—
Deferred:
Federal		(17,014	)		(4,469	)		—
State		—			—			—

Income tax (benefit) expense	$	(16,787	)	$	36,476		$	—

Schedule of significant components of the Company's deferred tax assets (liabilities)

	As of December 31,
	2015			2014
Deferred tax assets (liabilities)
Deferred revenue	$	142,675		$	120,611
License and technology payments		13,150			14,251
Share-based compensation		11,427			5,679
Accrued expenses		743			442
Depreciation		(617	)		(328	)
Federal and state net operating loss carryforwards		26,065			—
Excess tax benefits related to share-based compensation		1,630			—
Charitable contribution carryforwards		5			—

Deferred income tax assets		195,078			140,655
Valuation allowance		(171,965	)		(136,138	)

Net deferred tax assets	$	23,113		$	4,517

Stock Option and Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2015

Stock Option and Compensation Plans

Summary of the stock option activity including weighted average exercise prices, options outstanding and exercisable

	Years ended December 31,
	2015					2014					2013
	Common Stock Options			Weighted Average Exercise Price		Common Stock Options			Weighted Average Exercise Price		Common Stock Options			Weighted Average Exercise Price
Outstanding at beginning of year:		3,680		$	21.03		2,708		$	9.41		1,344		$	1.65
Granted		764		$	47.31		1,744		$	33.92		1,583		$	14.82
Exercised		(1,133	)	$	10.31		(621	)	$	4.75		(151	)	$	0.61
Expired or forfeited		(302	)	$	34.09		(151	)	$	28.50		(68	)	$	1.53

Outstanding at end of year:		3,009		$	30.43		3,680		$	21.03		2,708		$	9.41

	Years ended December 31,
	2015		2014		2013
Options exercisable at end of year		955		993		984
Weighted average grant date fair value (per share) of options granted during the period	$	31.33	$	24.41	$	10.48

Summary of the stock options outstanding and exercisable

			As of December 31, 2015
			Options Outstanding				Options Exercisable
Range of Exercise Prices	Total Options Outstanding		Weighted Average Remaining Life (Years)		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$0.12-$10.03		448		6.6	$	7.70		201	$	5.38
$10.04-$20.00		339		6.7	$	13.45		130	$	13.52
$20.01-$30.00		162		7.8	$	25.61		76	$	25.51
$30.01-$40.00		1,270		8.1	$	33.28		511	$	33.31
$40.01-$55.00		742		9.2	$	45.50		37	$	43.23
$55.01-$70.34		48		9.6	$	70.26		—	$	—

		3,009		8.0	$	30.43		955	$	24.50


Aggregate Intrinsic Value	$	144,758					$	51,594

Schedule of cash proceeds from, and the aggregate intrinsic value of, stock options exercised

	Years ended December 31,
	2015		2014		2013
Cash Proceeds from options exercised	$	11,473	$	2,949	$	94
Aggregate intrinsic value of options exercised	$	49,255	$	21,646	$	4,545

Summary of the Company's outstanding shares of RSU awards

	Restricted Stock Units			Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2014		37		$	34.13
Awarded		336			45.04
Vested		(55	)		41.90
Forfeited		(30	)		42.01

Outstanding, December 31, 2015		288		$	44.54

Selected Quarterly Financial Information (unaudited) (Tables)

12 Months Ended

Dec. 31, 2015

Selected Quarterly Financial Information (unaudited)

Summary of the quarterly results of operations

	2015
	March 31		June 30			September 30			December 31
Collaboration revenue	$	41,678	$	1,597		$	3,448		$	4,782
Research and development expenses		24,557		32,059			40,479			33,917
General and administrative expenses		9,584		11,959			10,412			12,066

Income (loss) from operations		7,537		(42,421	)		(47,443	)		(41,201	)
Net income (loss) attributable to common stockholders	$	6,636	$	(37,131	)	$	(39,573	)	$	(35,649	)
Basic earnings (loss) per common share	$	0.19	$	(1.08	)	$	(1.14	)	$	(1.02	)
Diluted earnings (loss) per common share	$	0.19	$	(1.08	)	$	(1.14	)	$	(1.02	)

	2014
	March 31			June 30			September 30		December 31
Collaboration revenue	$	—		$	—		$	39,575	$	1,684
Research and development expenses		14,377			34,707			17,105		22,196
General and administrative expenses		6,349			7,570			8,812		10,656

Income (loss) from operations		(20,726	)		(42,277	)		13,658		(31,168	)
Net income (loss) attributable to common stockholders	$	(20,682	)	$	(72,990	)	$	8,552	$	(31,652	)
Basic earnings (loss) per common share	$	(0.64	)	$	(2.19	)	$	0.26	$	(0.94	)
Diluted earnings (loss) per common share	$	(0.64	)	$	(2.19	)	$	0.25	$	(0.94	)

Cash, Cash Equivalents and Available for Sale Securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash, Cash Equivalents and Available for Sale Securities
Cash	$ 5,500	$ 4,700
Investments in money market funds and U.S. Treasury securities with original maturities of 90 days or less	216,400	35,100
Investments in U.S. Treasury securities	74,731	423,746
Available for sale securities, noncurrent	95,298
Other than temporary losses in fair value, available for sale securities	0
Available for sale securities, including carrying value and estimated fair values
Cost	170,502	423,859
Unrealized loss	(473)	(113)
Other than temporary losses in fair value, available for sale securities	0
Changes in accumulated other comprehensive loss
Beginning balance	(65)
Current period changes in fair value before reclassifications, net of tax	(351)	(65)
Amounts reclassified from accumulated other comprehensive income, net of tax	(57)
Total other comprehensive income, net of tax	(408)	(65)
Ending balance	(473)	(65)
Fair Value
Available for sale securities, including carrying value and estimated fair values
Value	170,029	423,746
Carrying Value
Available for sale securities, including carrying value and estimated fair values
Value	170,029	423,746
U.S. Treasury securities
Available for sale securities, including carrying value and estimated fair values
Cost	130,507	423,859
Unrealized loss	(311)	(113)
U.S. Treasury securities \| Fair Value
Available for sale securities, including carrying value and estimated fair values
Value	130,196	423,746
U.S. Treasury securities \| Carrying Value
Available for sale securities, including carrying value and estimated fair values
Value	130,196	$ 423,746
Corporate debt securities
Available for sale securities, including carrying value and estimated fair values
Cost	39,995
Unrealized loss	(162)
Corporate debt securities \| Fair Value
Available for sale securities, including carrying value and estimated fair values
Value	39,833
Corporate debt securities \| Carrying Value
Available for sale securities, including carrying value and estimated fair values
Value	$ 39,833

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Taxes
Accrued interest and penalties related to the timing of certain tax payments	$ 300
Percent of pre-tax income:
U.S. federal statutory income tax rate (as a percent)	35.00%	35.00%	35.00%
State taxes, net of federal benefit (as a percent)	7.40%	6.80%
Permanent items (as a percent)	(0.50%)	2.30%	(2.20%)
Impact of state rate changes (as a percent)	0.90%
Research and development credit (as a percent)			2.70%
Change in valuation allowance (as a percent)	(29.10%)	(89.50%)	(35.50%)
Effective income tax rate (as a percent)	13.70%	(45.40%)	0.00%
Current:
Federal	$ 136	$ 29,505
State	91	11,440
Deferred:
Federal	(17,014)	(4,469)
Income tax (benefit) expense	(16,787)	36,476
Deferred tax assets (liabilities)
Deferred revenue	142,675	120,611
License and technology payments	13,150	14,251
Share-based compensation	11,427	5,679
Accrued expenses	743	442
Depreciation	(617)	(328)
Federal and state net operating loss carryforwards	26,065
Excess tax benefits related to share-based compensation	1,630
Charitable contribution carryforwards	5
Deferred income tax assets	195,078	140,655
Valuation allowance	(171,965)	(136,138)
Net deferred tax assets	$ 23,113	$ 4,517

Stock Option and Compensation Plans (Details) - USD ($) $ / shares in Units, $ in Thousands					1 Months Ended	12 Months Ended
	Jan. 01, 2016	Aug. 31, 2015	Jan. 01, 2015	Jan. 01, 2014	Aug. 31, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stock Option and Compensation Plans
Options outstanding (in shares)						2,794,000
Weighted-average exercise price of options						$ 23.18
Weighted-average remaining contractual life of options						8 years
Aggregate intrinsic value of options outstanding						$ 134,000
Share-based compensation expense						$ 24,760	$ 13,040	$ 2,871
Common Stock Options
Outstanding at beginning of year: (in shares)	3,009,000		3,680,000	2,708,000		3,680,000	2,708,000	1,344,000
Granted (in shares)		120,000				764,000	1,744,000	1,583,000
Exercised (in shares)						(1,133,000)	(621,000)	(151,000)
Expired or forfeited (in shares)						(302,000)	(151,000)	(68,000)
Outstanding at end of year: (in shares)						3,009,000	3,680,000	2,708,000
Weighted Average Exercise Price
Outstanding at beginning of year: (in dollars per share)	$ 30.43		$ 21.03	$ 9.41		$ 21.03	$ 9.41	$ 1.65
Granted (in dollars per share)		$ 44.03				47.31	33.92	14.82
Exercised (in dollars per share)						10.31	4.75	0.61
Expired or forfeited (in dollars per share)						34.09	28.50	1.53
Outstanding at end of year: (in dollars per share)						$ 30.43	$ 21.03	$ 9.41
Additional disclosures
Options exercisable at end of year (in shares)						955,000	993,000	984,000
Weighted average grant date fair value (per share) of options granted during the period (in dollars per share)						$ 31.33	$ 24.41	$ 10.48
2007 Plan
Stock Option and Compensation Plans
Number of shares of common stock available for issuance under the Plan					739,317
2013 Plan
Stock Option and Compensation Plans
Increase in number of shares available under the Plan	1,408,000		1,360,000	1,257,000
Number of shares of common stock available for issuance under the Plan						1,070,000
Annual increase in shares reserved for issuance under the Plan					2,542,372
Annual increase in shares reserved for issuance under the Plan (as a percent)					4.00%
2013 Plan \| Maximum
Stock Option and Compensation Plans
Number of shares reserved for issuance under the Plan					3,359,641

Stock Option and Compensation Plans (Details 2) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Options Outstanding
Weighted Average Remaining Life	8 years
Weighted Average Exercise Price (in dollars per share)	$ 30.43
Options Exercisable
Weighted Average Exercise Price (in dollars per share)	$ 24.50
Options outstanding
Options Outstanding
Total Options Outstanding (in shares)	3,009
Aggregate Intrinsic Value of Options Outstanding	$ 144,758
Cash proceeds from, and the aggregate intrinsic value of, stock options exercised
Cash proceeds from options exercised	11,473	$ 2,949	$ 94
Aggregate intrinsic value of options exercised	$ 49,255	$ 21,646	$ 4,545
Options Exercisable
Number Exercisable (in shares)	955
Aggregate Intrinsic Value of Options Exercisable	$ 51,594
Options outstanding \| $0.12-$10.03
Range of Exercise Prices
Exercise prices, low end of range (in dollars per share)	$ 0.12
Exercise prices, high end of range (in dollars per share)	$ 10.03
Options Outstanding
Total Options Outstanding (in shares)	448
Weighted Average Remaining Life	6 years 7 months 6 days
Weighted Average Exercise Price (in dollars per share)	$ 7.70
Options Exercisable
Number Exercisable (in shares)	201
Weighted Average Exercise Price (in dollars per share)	$ 5.38
Options outstanding \| $10.04-$20.00
Range of Exercise Prices
Exercise prices, low end of range (in dollars per share)	10.04
Exercise prices, high end of range (in dollars per share)	$ 20.00
Options Outstanding
Total Options Outstanding (in shares)	339
Weighted Average Remaining Life	6 years 8 months 12 days
Weighted Average Exercise Price (in dollars per share)	$ 13.45
Options Exercisable
Number Exercisable (in shares)	130
Weighted Average Exercise Price (in dollars per share)	$ 13.52
Options outstanding \| $20.01-$30.00
Range of Exercise Prices
Exercise prices, low end of range (in dollars per share)	20.01
Exercise prices, high end of range (in dollars per share)	$ 30.00
Options Outstanding
Total Options Outstanding (in shares)	162
Weighted Average Remaining Life	7 years 9 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 25.61
Options Exercisable
Number Exercisable (in shares)	76
Weighted Average Exercise Price (in dollars per share)	$ 25.51
Options outstanding \| $30.01-$40.00
Range of Exercise Prices
Exercise prices, low end of range (in dollars per share)	30.01
Exercise prices, high end of range (in dollars per share)	$ 40.00
Options Outstanding
Total Options Outstanding (in shares)	1,270
Weighted Average Remaining Life	8 years 1 month 6 days
Weighted Average Exercise Price (in dollars per share)	$ 33.28
Options Exercisable
Number Exercisable (in shares)	511
Weighted Average Exercise Price (in dollars per share)	$ 33.31
Options outstanding \| $40.01 - $55.00
Range of Exercise Prices
Exercise prices, low end of range (in dollars per share)	40.01
Exercise prices, high end of range (in dollars per share)	$ 55.00
Options Outstanding
Total Options Outstanding (in shares)	742
Weighted Average Remaining Life	9 years 2 months 12 days
Weighted Average Exercise Price (in dollars per share)	$ 45.50
Options Exercisable
Number Exercisable (in shares)	37
Weighted Average Exercise Price (in dollars per share)	$ 43.23
Options outstanding \| $55.01 - $70.34
Range of Exercise Prices
Exercise prices, low end of range (in dollars per share)	55.01
Exercise prices, high end of range (in dollars per share)	$ 70.34
Options Outstanding
Total Options Outstanding (in shares)	48
Weighted Average Remaining Life	9 years 7 months 6 days
Weighted Average Exercise Price (in dollars per share)	$ 70.26

Stock Option and Compensation Plans (Details 3) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Aug. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Weighted Average Grant-Date Fair Value
Share-based compensation expense		$ 24,760	$ 13,040	$ 2,871
Granted (in shares)	120,000	764,000	1,744,000	1,583,000
Granted (in dollars per share)	$ 44.03	$ 47.31	$ 33.92	$ 14.82
Stock options
Weighted Average Grant-Date Fair Value
Share-based compensation expense		$ 15,500	$ 11,300	$ 2,200
Unrecognized share-based compensation costs for option awards, net of estimated forfeitures		$ 36,900
Expected weighted average period to recognize share-based compensation costs		2 years 7 months 6 days
Non-employee Options \| Consultants
Weighted Average Grant-Date Fair Value
Share-based compensation expense		$ 4,100	$ 1,400	$ 700
Unrecognized share-based compensation costs for option awards, net of estimated forfeitures		$ 4,300
Expected weighted average period to recognize share-based compensation costs		2 years 1 month 6 days
Restricted stock units
Restricted Stock Units
Outstanding, December 31, 2014		37,000
Awarded		336,000
Vested		(55,000)
Forfeited		(30,000)
Outstanding, December 31, 2015		288,000	37,000
Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2014		$ 34.13
Awarded		45.04
Vested		41.90
Forfeited		42.01
Outstanding, December 31, 2015		$ 44.54	$ 34.13
RSUs expected to vest		265,000
Weighted-average fair value of RSUs expected to vest		$ 44.54
Aggregate intrinsic value of RSUs expected to vest		$ 20,800
Total fair value vested		2,300
Restricted stock units \| Employees
Weighted Average Grant-Date Fair Value
Share-based compensation expense		5,200	$ 300
Unrecognized share-based compensation costs for option awards, net of estimated forfeitures		$ 8,600
Expected weighted average period to recognize share-based compensation costs		2 years 10 months 24 days

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Balance Sheets
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	35,196,567	33,994,520
Common stock, shares outstanding	35,196,567	33,994,520

Business	12 Months Ended
Business	Dec. 31, 2015
Business
Business	1. Business Description of Business and Organization Ophthotech Corporation (the "Company" or "Ophthotech") was incorporated on January 5, 2007, in Delaware. The Company is a biopharmaceutical company specializing in the development of novel therapeutics to treat diseases of the back of the eye, with a focus on developing therapeutics for age-related macular degeneration, or AMD. The Company's most advanced product candidate is Fovista® (pegpleranib), which is an anti-platelet derived growth factor ("PDGF") aptamer that is in Phase 3 clinical development for use in combination with anti-vascular endothelial growth factor ("VEGF") drugs that represent the current standard of care for the treatment of wet AMD. The Company has completed one Phase 1 and one Phase 2b clinical trial of Fovista administered in combination with the anti-VEGF drug Lucentis® (ranibizumab), has completed patient enrollment for two Phase 3 clinical trials of Fovista administered in combination with Lucentis and expects to complete enrollment in a third Phase 3 clinical trial evaluating Fovista in combination with Eylea® (aflibercept) or Avastin® (bevacizumab) in 2016. The Company is also developing its product candidate Zimura® (avacincaptad pegol), an inhibitor of complement factor C5, for the treatment of patients with geographic atrophy ("GA"), a form of dry AMD, in combination with anti-VEGF drugs for the treatment of wet AMD, as well as for the treatment of polypoidal choroidal vasculopathy ("PCV"), a specific type of wet AMD, in patients who do not respond adequately to treatment with anti-VEGF monotherapy or for whom anti-VEGF monotherapy fails. The Company is also investigating the potential of an ophthalmic formulation for tivozanib, a small molecule VEGF tyrosine kinase inhibitor for which the Company has an option for a license.

Capitalization	12 Months Ended
Capitalization	Dec. 31, 2015
Capitalization
Capitalization	3. Capitalization On September 30, 2013, the Company closed its initial public offering of 8,740,000 shares of common stock at a price of $22.00 per share of common stock. The net proceeds to the Company were $175.6 million, after deducting underwriters' discounts and commissions and other offering expenses. In connection with the closing of the IPO, all of the Company's shares of redeemable convertible preferred stock outstanding at the time of the offering were automatically converted into 21,038,477 shares of common stock. On February 18, 2014, the Company closed a follow-on public offering of 2,628,571 shares of common stock at a public offering price of $31.50 per share of common stock. The Company sold 1,900,000 shares and 728,571 shares were sold by selling stockholders, including 342,857 shares sold by the selling stockholders upon the full exercise by the underwriters of their option to purchase additional shares in the follow-on public offering. The net proceeds to the Company were $55.4 million, after deducting underwriters' discounts and commissions and other offering expenses. The Company did not receive any proceeds from the sale of shares by the selling stockholders in the follow-on public offering.

Financing Agreement with Novo A/S	12 Months Ended
Financing Agreement with Novo A/S	Dec. 31, 2015
Financing Agreement with Novo A/S
Financing Agreement with Novo A/S	7. Financing Agreement with Novo A/S In May 2013, the Company entered into a Purchase and Sale Agreement with Novo A/S, which is referred to as the Novo Agreement, pursuant to which the Company had the ability to obtain financing in three tranches in an amount of up to $125.0 million in return for the sale to Novo A/S of aggregate royalties of worldwide sales of (a) Fovista, (b) Fovista-Related Products, and (c) Other Products (each as defined in the Novo Agreement), calculated as low to mid-single digit percentages of net sales, with the royalty percentage determined by the amount of funding provided by Novo A/S. The Novo Agreement provided for up to three separate purchases for a purchase price of $41.7 million each, at a first, second and third closing, for an aggregate purchase price of $125.0 million. In each purchase, Novo A/S would acquire rights to a low single digit percentage of net sales. In each of May 2013, January 2014 and November 2014, the Company received cash payments of $41.7 million, or $125.0 million in the aggregate, and Novo A/S received, in the aggregate, a right to receive royalties on net sales of Fovista at a mid-single digit percentage. The royalty payment period covered by the Novo Agreement begins on commercial launch and ends, on a product-by-product and country-by-country basis, on the latest to occur of (i) the 12th anniversary of the commercial launch, (ii) the expiration of certain patent rights and (iii) the expiration of the regulatory exclusivity for each product in each country. Under the terms of the Novo Agreement, the Company is not required to reimburse or otherwise compensate Novo A/S through any means other than the agreed royalty entitlement. In addition, the Company does not, under the terms of the Novo Agreement, have the right or obligation to prepay Novo A/S in connection with a change of control of the Company or otherwise. The $125.0 million in aggregate proceeds from the three financing tranches under the Novo Agreement represents the full funding available under the Novo Agreement, and has been recorded as a liability on the Company's Balance Sheet as of December 31, 2015, in accordance with ASC 730, Research and Development. Because there is a significant related party relationship between the Company and Novo A/S, the Company is treating its obligation to make royalty payments under the Novo Agreement as an implicit obligation to repay the funds advanced by Novo A/S. As the Company makes royalty payments in accordance with the Novo Agreement, it will reduce the liability balance. At the time that such royalty payments become probable and estimable, and if such amounts exceed the liability balance, the Company will impute interest accordingly on a prospective basis based on such estimates, which would result in a corresponding increase in the liability balance. The Novo Agreement requires the establishment of a Joint Oversight Committee in the event that Novo A/S does not continue to have a representative on the Company's board of directors. The Joint Oversight Committee would have responsibilities that include "discussion and review" of all matters related to Fovista research, development, regulatory approval and commercialization, but there is no provision either implicit or explicit that gives the Joint Oversight Committee or its members decision-making authority.

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2015
Employee Benefit Plan
Employee Benefit Plan	13. Employee Benefit Plan The Company maintains a defined contribution 401(k) plan available to employees. Employee contributions are voluntary and are determined on an individual basis, limited by the maximum amounts allowable under federal tax regulations. The Company's matching contributions to employees totaled approximately $0.5 million and $0.2 million during the years ended December 31, 2015 and December 31, 2014, respectively. The Company did not match any of the employee contributions during the year ended December 31, 2013.

Statements Of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
Statements Of Comprehensive Loss - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Statements Of Comprehensive Loss
Net loss	$ (105,717)	$ (116,772)	$ (51,145)
Other comprehensive loss:
Unrealized loss on available for sale securities, net of tax	(408)	(65)
Other comprehensive loss	(408)	(65)
Comprehensive loss	$ (106,125)	$ (116,837)	$ (51,145)

Summary of Significant Accounting Policies (Detail) $ in Thousands		1 Months Ended			3 Months Ended						7 Months Ended	12 Months Ended
	May 19, 2014 USD ($)	Mar. 31, 2015 USD ($)	Sep. 30, 2014 USD ($)	May 31, 2014 USD ($)	Dec. 31, 2015 USD ($)	Sep. 30, 2015 USD ($)	Jun. 30, 2015 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 30, 2014 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($) item	Dec. 31, 2014 USD ($)
Components of collaboration revenue
Total collaboration revenue					$ 4,782	$ 3,448	$ 1,597	$ 41,678	$ 1,684	$ 39,575		$ 51,505	$ 41,259
Number of categories for milestones \| item												3
License revenue
Components of collaboration revenue
Total collaboration revenue												$ 38,083	38,373
Research and development activity revenue
Components of collaboration revenue
Total collaboration revenue												8,378	2,000
API transfer revenue
Components of collaboration revenue
Total collaboration revenue												5,020	883
Joint operating committee revenue
Components of collaboration revenue
Total collaboration revenue												24	$ 3
Novartis Pharma AG
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Upfront fees received				$ 200,000
Patient enrollment-based milestone revenue achieved		$ 50,000	$ 50,000								$ 100,000
Novartis Pharma AG \| Licensing and Commercialization Agreement
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Upfront fees received	$ 200,000
Novartis Pharma AG \| Licensing and Commercialization Agreement \| Achievement of specified patient enrollment milestones
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Patient enrollment-based milestone revenue achieved		$ 50,000	$ 50,000								$ 100,000
Recognized revenues												$ 51,500

Summary of Significant Accounting Policies (Details 2)	12 Months Ended
Summary of Significant Accounting Policies (Details 2)	Dec. 31, 2015
Minimum
Property and equipment
Estimated useful lives	3 years
Maximum
Property and equipment
Estimated useful lives	10 years

Capitalization (Details) - USD ($) $ / shares in Units, $ in Thousands			12 Months Ended
	Feb. 18, 2014	Sep. 30, 2013	Dec. 31, 2014	Dec. 31, 2013
Capital structure
Net proceeds, after deducting underwriters' discounts and commissions and other offering expense			$ 55,409
Common stock.
Capital structure
Issuance of common stock from initial public offering, net (in shares)	1,900,000	8,740,000		8,740,000
Offering price (in dollars per share)	$ 31.50	$ 22.00
Net proceeds from issuance of shares of common stock after deducting underwriters' discount and commissions and other offering expenses (in dollars)		$ 175,600
Shares issued on automatic conversion of redeemable convertible preferred stock		21,038,477
Shares of common stock offered in follow on offering	2,628,571
Shares sold by selling stockholders in follow on offering	728,571
Shares sold by selling stockholders upon full exercise by underwriters of their option to purchase additional shares	342,857
Net proceeds, after deducting underwriters' discounts and commissions and other offering expense	$ 55,400

Net Loss Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Basic and diluted net loss per common share calculation:
Net loss									$ (105,717)	$ (116,772)	$ (51,145)
Accretion of preferred stock dividends											(5,891)
Net loss attributable to common stockholders	$ (35,649)	$ (39,573)	$ (37,131)	$ 6,636	$ (31,652)	$ 8,552	$ (72,990)	$ (20,682)	$ (105,717)	$ (116,772)	$ (57,036)
Weighted average common shares outstanding									34,580	33,258	9,003
Net loss per common share - basic and diluted (in dollars per share)									$ (3.06)	$ (3.51)	$ (6.34)
Anti-dilutive securities
Total (in shares)									3,297	3,731	2,796
Options outstanding
Anti-dilutive securities
Total (in shares)									3,009	3,680	2,708
Warrants
Anti-dilutive securities
Total (in shares)										14	88
Restricted stock units
Anti-dilutive securities
Total (in shares)									288	37

Licensing and Commercialization Agreement with Novartis Pharma AG (Details) - USD ($) $ in Thousands		1 Months Ended					3 Months Ended						7 Months Ended	12 Months Ended
	May 19, 2014	Apr. 30, 2015	Mar. 31, 2015	Oct. 31, 2014	Sep. 30, 2014	May 31, 2014	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Agreement
Total collaboration revenue							$ 4,782	$ 3,448	$ 1,597	$ 41,678	$ 1,684	$ 39,575		$ 51,505	$ 41,259
License revenue
Agreement
Total collaboration revenue														38,083	38,373
Research and development activity revenue
Agreement
Total collaboration revenue														8,378	2,000
API transfer revenue
Agreement
Total collaboration revenue														5,020	883
Joint operating committee revenue
Agreement
Total collaboration revenue														24	$ 3
Novartis Pharma AG
Agreement
Upfront fees received						$ 200,000
Patient enrollment-based milestone revenue achieved			$ 50,000		$ 50,000								$ 100,000
Licensing and Commercialization Agreement \| Novartis Pharma AG
Agreement
Upfront fees received	$ 200,000
Licensing and Commercialization Agreement \| Novartis Pharma AG \| Achievement of specified patient enrollment milestones
Agreement
Milestone payment received		$ 50,000		$ 50,000
Patient enrollment-based milestone revenue achieved			$ 50,000		$ 50,000								$ 100,000
Recognized revenues														51,500
Licensing and Commercialization Agreement \| Novartis Pharma AG \| Achievement of specified patient enrollment milestones \| Maximum
Agreement
Aggregate amount receivable on achievement of milestone							130,000							130,000
Licensing and Commercialization Agreement \| Novartis Pharma AG \| Achievement of specified regulatory approval milestones \| Maximum
Agreement
Aggregate amount receivable on achievement of milestone							300,000							300,000
Licensing and Commercialization Agreement \| Novartis Pharma AG \| Achievement of specified commercial sale milestone \| Maximum
Agreement
Aggregate amount receivable on achievement of milestone							$ 400,000							$ 400,000

Financing Agreement with Novo A/S (Details) $ in Thousands	1 Months Ended			12 Months Ended		32 Months Ended
Financing Agreement with Novo A/S (Details) $ in Thousands	Nov. 30, 2014 USD ($)	Jan. 31, 2014 USD ($)	May 31, 2013 USD ($) tranche	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)	Dec. 31, 2015 USD ($)
Agreement
Royalty rights purchase price				$ 125,000		$ 125,000
Proceeds from royalty purchase agreement				$ 83,333	$ 41,667
Novo A/S \| Novo Agreement \| Fovista, Fovista-Related Products, and Other Products
Agreement
Number of tranches in financing \| tranche			3
Aggregate royalty rights			$ 125,000
Royalty rights purchase price			41,700
Proceeds from royalty purchase agreement	$ 41,700	$ 41,700	$ 41,700			$ 125,000

Property and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property and Equipment
Property and equipment, gross	$ 4,365	$ 1,857
Accumulated depreciation	(899)	(302)
Property and equipment, net	3,466	1,555
Depreciation expense	$ 698	127	$ 20
Minimum
Property and Equipment
Useful life	3 years
Maximum
Property and Equipment
Useful life	10 years
Manufacturing and clinical equipment
Property and Equipment
Property and equipment, gross	$ 617	$ 617
Manufacturing and clinical equipment \| Minimum
Property and Equipment
Useful life	7 years	7 years
Manufacturing and clinical equipment \| Maximum
Property and Equipment
Useful life	10 years	10 years
Computer and other office equipment
Property and Equipment
Useful life	5 years	5 years
Property and equipment, gross	$ 944	$ 292
Furniture and fixtures
Property and Equipment
Useful life	7 years	7 years
Property and equipment, gross	$ 738	$ 591
Leasehold improvements
Property and Equipment
Property and equipment, gross	$ 1,551	$ 357
Leasehold improvements \| Minimum
Property and Equipment
Useful life	3 years	3 years
Leasehold improvements \| Maximum
Property and Equipment
Useful life	5 years	5 years
Construction-in-progress
Property and Equipment
Property and equipment, gross	$ 515

Income Taxes (Details 2) - USD ($) $ in Thousands		1 Months Ended			7 Months Ended	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Thousands	May 19, 2014	Mar. 31, 2015	Sep. 30, 2014	May 31, 2014	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income taxes
Proceeds from the Novo Agreement						$ 83,333	$ 41,667
Novartis Pharma AG
Income taxes
Amount received				$ 200,000
Patient enrollment-based milestone revenue achieved		$ 50,000	$ 50,000		$ 100,000
Novartis Pharma AG \| Licensing and Commercialization Agreement
Income taxes
Amount received	$ 200,000
Novartis Pharma AG \| Achievement of specified patient enrollment milestones \| Licensing and Commercialization Agreement
Income taxes
Patient enrollment-based milestone revenue achieved		$ 50,000	$ 50,000		$ 100,000

Operating Leases (Details) - USD ($) $ in Thousands	12 Months Ended
Operating Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Future minimum rental commitments under non-cancelable operating leases
2016	$ 2,133
2017	2,445
2018	2,734
2019	2,673
2020	1,430
Thereafter	249
Total	11,664
Rent expense	$ 2,100	$ 1,000	$ 500

Commitments and Contingencies (Details) - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2014	Dec. 31, 2015
AVEO \| Tivozanib \| Submission of Investigational New Drug application
Commitments and contingencies
Amount to be paid on achievement of milestone		$ 2.0
AVEO \| Tivozanib \| Demonstration of proof of concept in humans
Commitments and contingencies
Amount to be paid on achievement of milestone		6.0
Acquisition agreement \| OSI Pharmaceuticals \| PDGF Licensed Products
Commitments and contingencies
Amount to be paid on achievement of milestone		12.0
License Agreements \| Archemix \| PDGF Licensed Products
Commitments and contingencies
Royalty payable		0.0
License Agreements \| Archemix \| Fovista \| Achievement of specified clinical and regulatory milestones \| Maximum
Commitments and contingencies
Amount to be paid on achievement of milestone		14.0
License Agreements \| Archemix \| Fovista \| Achievement of specified commercial milestones \| Maximum
Commitments and contingencies
Amount to be paid on achievement of milestone		3.0
License Agreements \| Archemix \| Other anti-PDGF aptamer \| Achievement of specified clinical and regulatory milestones \| Maximum
Commitments and contingencies
Amount to be paid on achievement of milestone		18.8
License Agreements \| Archemix \| Other anti-PDGF aptamer \| Achievement of specified commercial milestones \| Maximum
Commitments and contingencies
Amount to be paid on achievement of milestone		3.0
License Agreements \| Archemix \| C5 Licensed Product
Commitments and contingencies
Royalty payable		0.0
License Agreements \| Archemix \| C5 Licensed Product \| Achievement of specified commercial milestones \| Maximum
Commitments and contingencies
Amount to be paid on achievement of milestone		22.5
License Agreements \| Archemix \| C5 Licensed Product \| Achievement of specified development, clinical and regulatory milestones \| Maximum
Commitments and contingencies
Amount to be paid on achievement of milestone		57.5
Supply Agreement \| Nektar
Commitments and contingencies
Payment upon entry into Novartis Agreement	$ 19.8
Supply Agreement \| Nektar \| Fovista \| Achievement of specified clinical and regulatory milestones \| Maximum
Commitments and contingencies
Amount to be paid on achievement of milestone		6.5
Supply Agreement \| Nektar \| Fovista \| Achievement of specified commercial milestones
Commitments and contingencies
Amount to be paid on achievement of milestone		$ 3.0

Employee Benefit Plan - (Details) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan - (Details) - USD ($) $ in Millions	Dec. 31, 2015	Dec. 31, 2014
Employee Benefit Plan
Defined contribution plan, cost recognized	$ 0.5	$ 0.2

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Fair Value Measurements
Transfer of assets from Level 1 to Level 2 of the fair value measurement hierarchy	$ 0	$ 0
Transfer of assets from Level 2 to Level 1 of the fair value measurement hierarchy	0	0
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| Money market funds
Fair Value Measurements
Investments in money market funds and U.S. Treasury securities with maturities less than 90 days	196,188
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| U.S. Treasury money market funds
Fair Value Measurements
Investments in money market funds and U.S. Treasury securities with maturities less than 90 days		35,111
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| U.S. Treasury securities
Fair Value Measurements
Investments in available for sale securities	150,387	$ 423,746
Recurring basis \| Significant other observable inputs (Level 2) \| Corporate debt securities
Fair Value Measurements
Investments in available for sale securities	$ 39,833