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Document and Entity Information - shares	3 Months Ended
Mar. 31, 2016	May 02, 2016
Document and Entity Information
Entity Registrant Name	Ophthotech Corp.
Entity Central Index Key	0001410939
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		35,370,681
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

Unaudited Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 183,822	$ 221,861
Available for sale securities	109,104	74,731
Due from Novartis Pharma AG	10,062	4,389
Income tax receivable	26,497	3,421
Prepaid expenses and other current assets	2,299	2,083
Total current assets	331,784	306,485
Available for sale securities	63,211	95,298
Property and equipment, net	3,350	3,466
Deferred tax assets		23,113
Other assets	500	489
Total assets	398,845	428,851
Current liabilities
Accrued research and development expenses	21,727	18,820
Accounts payable and accrued expenses	7,287	12,018
Deferred revenue	5,212	6,667
Total current liabilities	34,226	37,505
Deferred revenue, long-term	206,396	206,399
Royalty purchase liability	125,000	125,000
Total liabilities	365,622	368,904
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, 35,290,135 and 35,196,567 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	35	35
Additional paid-in capital	475,024	465,924
Accumulated deficit	(441,840)	(405,539)
Accumulated other comprehensive income (loss)	4	(473)
Total stockholders' equity	33,223	59,947
Total liabilities and stockholders' equity	$ 398,845	$ 428,851

Unaudited Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Unaudited Statements of Operations
Collaboration revenue	$ 15,721	$ 41,678
Operating expenses:
Research and development	37,770	24,557
General and administrative	14,696	9,584
Total operating expenses	52,466	34,141
Income (loss) from operations	(36,745)	7,537
Interest income	446	125
Other income (loss)	30	(52)
Income (loss) before income tax provision	(36,269)	7,610
Income tax provision	32	974
Net income (loss)	$ (36,301)	$ 6,636
Net income (loss) per common share:
Basic (in dollars per share)	$ (1.03)	$ 0.19
Diluted (in dollars per share)	$ (1.03)	$ 0.19
Weighted average common shares outstanding:
Basic (in shares)	35,256	34,154
Diluted (in shares)	35,256	35,239

Unaudited Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
Unaudited Statements of Cash Flows - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015
Operating Activities
Net income (loss)	$ (36,301)	$ 6,636
Adjustments to reconcile net income (loss) to net cash used in operating activities
Depreciation	178	56
Amortization of premium and discounts on investment securities	196	991
Deferred income taxes	23,113
Share-based compensation	8,332	5,054
Changes in operating assets and liabilities:
Due from Novartis Pharma AG	(5,673)	(49,289)
Income tax receivable	(23,076)
Prepaid expense and other current assets	(216)	(88)
Accrued interest receivable		(447)
Other assets	(11)	21
Accrued research and development expenses	2,907	185
Accounts payable and accrued expenses	(4,731)	(2,950)
Deferred revenue	(1,458)	8,322
Net cash used in operating activities	(36,740)	(31,509)
Investing Activities
Purchase of marketable securities	(12,005)	(144,433)
Maturities of marketable securities	10,000	174,000
Purchase of property and equipment	(62)	(64)
Net cash (used in) provided by investing activities	(2,067)	29,503
Financing Activities
Proceeds from stock option/warrant exercises	768	1,760
Net cash provided by financing activities	768	1,760
Net change in cash and cash equivalents	(38,039)	(246)
Cash and cash equivalents
Beginning of period	221,861	39,814
End of period	183,822	39,568
Supplemental disclosures of non-cash information related to investing activities
Change in unrealized gain on available for sale securities, net of tax	$ 477	$ 48

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited financial information as of March 31, 2016 and for the three months ended March 31, 2016 and 2015 has been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The December 31, 2015 balance sheet was derived from the Company’s audited financial statements. These interim financial statements should be read in conjunction with the notes to the financial statements contained in the Company’s Annual Report on Form 10-K (“Annual Report”) for 2015, as filed with the SEC on February 26, 2016.

In the opinion of management, the unaudited financial information as of March 31, 2016 and for the three months ended March 31, 2016 and 2015, reflects all adjustments, which are normal recurring adjustments, necessary to present a fair statement of financial position, results of operations and cash flows. The results of operations for the three months ended March 31, 2016 and 2015 are not necessarily indicative of the operating results for the full fiscal year or any future period.

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 when purchased 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 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 three months ended March 31, 2016 and 2015:

	Three months ended March 31,
	2016		2015
License revenue	$	—	$	38,083
Research and development activity revenue	1,275		3,585
API transfer revenue	14,443		—
Joint operating committee revenue	3		10

Total collaboration revenue	$	15,721	$	41,678

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 investments in money market funds and, at times, in U.S. Treasury securities with original maturities of 90 days or less.

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, 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. 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. In addition, the Company generated a taxable loss in 2015 that it intends to carry back to the 2014 tax year. 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:

	Three months ended March 31,
	2016		2015
Research and development	$	4,685	$	3,115
General and administrative	3,647		1,939

Total	$	8,332	$	5,054

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. The FASB subsequently issued additional clarifying standards to address issues arising from implementation of the new revenue standard, including 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.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (1) A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. The new lease guidance simplified the accounting for sale and leaseback transactions primarily because lessees must recognize lease assets and lease liabilities. Lessees will no longer be provided with a source of off-balance sheet financing. Public business entities should apply the amendments in ASU 2016-02 for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (i.e., January 1, 2019, for a calendar year entity). Early application is permitted for all public business entities and all nonpublic business entities upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently assessing the impact that adopting this new accounting guidance will have on its financial statements and footnote disclosures.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments are intended to improve the accounting for employee share-based payments and affect all organizations that issue share-based payment awards to their employees. Several aspects of the accounting for share-based payment award transactions are simplified, including: (a) income tax consequences; (b) classification of awards as either equity or liabilities; and (c) classification on the statement of cash flows. For public companies, the amendments are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period. The Company is currently assessing the impact that adopting this new accounting guidance will have on its financial statements and footnote disclosures.

Cash, Cash Equivalents and Available for Sale Securities

3 Months Ended

Mar. 31, 2016

Cash, Cash Equivalents and Available for Sale Securities

Cash, Cash Equivalents and Available for Sale Securities

4. 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 $1.3 million and $5.5 million at March 31, 2016 and December 31, 2015, respectively. Cash and cash equivalents at March 31, 2016 and December 31, 2015 also included $182.5 million and $216.4 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 at the date of purchase to be available for sale securities. The Company held available for sale securities with a fair value totaling $172.3 million and $170.0 million at March 31, 2016 and December 31, 2015, respectively. These available for sale securities consisted of U.S. Treasury securities and investment-grade corporate debt securities. At March 31, 2016, the Company held available for sale securities of $109.1 million with maturities of less than one year, and $63.2 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 March 31, 2016. 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 March 31, 2016
	Cost		Fair Value		Carrying Value		Unrealized Gain

U.S. Treasury securities	$	132,386	$	132,390	$	132,390	$	4
Corporate debt securities	39,925		39,925		39,925		—

Total	$	172,311	$	172,315	$	172,315	$	4

	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	)

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 gain on available for sale securities during the three months ended March 31, 2016 and 2015 were as follows:

	Three months ended March 31,
	2016			2015

Beginning balance	$	(473	)	$	(65	)
Current period changes in fair value before reclassifications, net of tax	477			48
Amounts reclassified from accumulated other comprehensive income, net of tax	—			—

Total other comprehensive income, net of tax	477			48

Ending balance	$	4		$	(17	)

Licensing and Commercialization Agreement with Novartis Pharma AG

3 Months Ended

Mar. 31, 2016

Licensing and Commercialization Agreement with Novartis Pharma AG

Licensing and Commercialization Agreement with Novartis Pharma AG

5. 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 for clinical supplies and 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 initiated 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 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 the 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 clinical purposes, for which Novartis has agreed to pay the Company’s manufacturing costs, and for 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 May 2014, the Company received an upfront payment of $200.0 million in connection with its entry into 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 aggregate, under the Novartis Agreement. 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 three months ended March 31, 2016 and 2015:

	Three months ended March 31,
	2016		2015
License revenue	$	—	$	38,083
Research and development activity revenue	1,275		3,585
API transfer revenue	14,443		—
Joint operating committee revenue	3		10

Total collaboration revenue	$	15,721	$	41,678

Fair Value Measurements

3 Months Ended

Mar. 31, 2016

Fair Value Measurements

Fair Value Measurements

8. Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), 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 March 31, 2016:

	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*	$	182,496	$	—	$	—
Investments in U.S. Treasury securities	$	132,390	$	—	$	—
Investments in Corporate debt securities	$	—	$	39,925	$	—

	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	$	—

*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 hierarchy occurred during the three months ended March 31, 2016.

Stock Option and Compensation Plans

3 Months Ended

Mar. 31, 2016

Stock Option and Compensation Plans

Stock Option and Compensation Plans

9. 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. In June 2015, the Company’s board of directors adopted a first amendment to the 2013 Plan. The 2013 Plan provides for the grant of incentive stock options, nonstatutory stock options, stock appreciation rights, RSUs, restricted stock unit awards, and other stock-based awards. Upon the 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, by approximately 1,360,000 shares, effective as of January 1, 2015, and by approximately 1,408,000 shares, effective as of January 1, 2016. As of March 31, 2016, the Company had approximately 1,753,000 shares available for grant under the 2013 Plan.

A summary of the stock option activity, weighted average exercise prices, options outstanding and exercisable as of March 31, 2016 is as follows:

			Weighted
	Common		Average
	Stock		Exercise
	Options		Price
Outstanding, December 31, 2015	3,009		$	30.43
Granted	549		$	69.56
Exercised	(61	)	$	12.53
Expired or forfeited	(2	)	$	41.39

Outstanding, March 31, 2016	3,495		$	36.88


Options exercisable at March 31, 2016			1,202
Weighted average grant date fair value (per share) of options granted during the period			$	43.97

As of March 31, 2016, there were approximately 3,249,000 options outstanding, net of estimated forfeitures, that had vested or are expected to vest. The weighted-average exercise price of these options was $36.93 per option; the weighted-average remaining contractual life of these options was 7.8 years; and the aggregate intrinsic value of these options was approximately $34.6 million. A summary of the stock options outstanding and exercisable as of March 31, 2016 is as follows:

			As of March 31, 2016
			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	400		6.3	$	7.55	208		$	5.39
$10.04-$20.00	333		6.4	$	13.46	159		$	13.51
$20.01-$30.00	161		7.6	$	25.61	86		$	25.56
$30.01-$40.00	1,268		7.1	$	33.27	597		$	33.25
$40.01-$55.00	790		9.0	$	45.62	148		$	45.84
$55.01-$73.22	543		9.7	$	71.89	4		$	73.22

	3,495		7.8	$	36.88	1,202		$	26.95


Aggregate Intrinsic Value	$	37,739				$	19,086

Cash proceeds from, and the aggregate intrinsic value of, stock options exercised during the three months ended March 31, 2016 and 2015, respectively, were as follows:

	Three months ended March 31,
	2016		2015

Cash proceeds from options exercised	$	768	$	1,760
Aggregate intrinsic value of options exercised	$	2,216	$	10,368

In connection with stock option awards granted to employees, the Company recognized approximately $6.1 million and $3.9 million in share-based compensation expense during the three months ended March 31, 2016 and 2015, respectively, net of expected forfeitures. As of March 31, 2016, there were approximately $49.8 million of unrecognized compensation costs, net of estimated forfeitures, related to stock option awards granted to employees, which are expected to be recognized over a remaining weighted average period of 2.9 years.

In connection with stock options awards granted to consultants, the Company recognized approximately $0.4 million and $0.7 million in share-based compensation expense during the three months ended March 31, 2016 and 2015, respectively, net of expected forfeitures. As of March 31, 2016, there were approximately $2.1 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 1.7 years.

The following table presents a summary of the Company’s outstanding RSU awards granted as of March 31, 2016:

	Restricted Stock Units		Weighted Average Grant-Date Fair Value

Outstanding, December 31, 2015	288		$	44.54
Awarded	148		$	73.22
Vested	(33	)	$	45.60
Forfeited	1		$	47.24

Outstanding, March 31, 2016	404		$	54.99

As of March 31, 2016, there were approximately 368,000 RSUs outstanding, net of estimated forfeitures, that are expected to vest. The weighted-average fair value of these RSUs was $54.99 and the aggregate intrinsic value of these RSUs was approximately $15.5 million.

In connection with RSUs granted to employees, the Company recognized approximately $1.8 million and $0.5 million in share-based compensation expense during the three months ended March 31, 2016 and 2015, respectively, net of expected forfeitures. As of March 31, 2016, there were approximately $16.7 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 3.4 years. The total fair value of the RSUs that vested during the three months ended March 31, 2016 was $1.5 million.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

Summary of Significant Accounting Policies

Basis of Presentation

Use of Estimates

Cash and Cash Equivalents

Available for Sale Securities

Revenue Recognition

Collaboration Revenue

	Three months ended March 31,
	2016		2015
License revenue	$	—	$	38,083
Research and development activity revenue	1,275		3,585
API transfer revenue	14,443		—
Joint operating committee revenue	3		10

Total collaboration revenue	$	15,721	$	41,678

Concentration of Credit Risk

Foreign Currency Translation

Financial Instruments

Property and Equipment

Research and Development

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.

	Three months ended March 31,
	2016		2015
Research and development	$	4,685	$	3,115
General and administrative	3,647		1,939

Total	$	8,332	$	5,054

Recent Accounting Pronouncements

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

3 Months Ended

Mar. 31, 2016

Cash, Cash Equivalents and Available for Sale Securities

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

	As of March 31, 2016
	Cost		Fair Value		Carrying Value		Unrealized Gain

U.S. Treasury securities	$	132,386	$	132,390	$	132,390	$	4
Corporate debt securities	39,925		39,925		39,925		—

Total	$	172,311	$	172,315	$	172,315	$	4

	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	)

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

	Three months ended March 31,
	2016			2015

Beginning balance	$	(473	)	$	(65	)
Current period changes in fair value before reclassifications, net of tax	477			48
Amounts reclassified from accumulated other comprehensive income, net of tax	—			—

Total other comprehensive income, net of tax	477			48

Ending balance	$	4		$	(17	)

- 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

Stock Option and Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2016

Stock Option and Compensation Plans

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

			Weighted
	Common		Average
	Stock		Exercise
	Options		Price
Outstanding, December 31, 2015	3,009		$	30.43
Granted	549		$	69.56
Exercised	(61	)	$	12.53
Expired or forfeited	(2	)	$	41.39

Outstanding, March 31, 2016	3,495		$	36.88


Options exercisable at March 31, 2016			1,202
Weighted average grant date fair value (per share) of options granted during the period			$	43.97

Summary of the stock options outstanding and exercisable by range of exercise prices

			As of March 31, 2016
			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	400		6.3	$	7.55	208		$	5.39
$10.04-$20.00	333		6.4	$	13.46	159		$	13.51
$20.01-$30.00	161		7.6	$	25.61	86		$	25.56
$30.01-$40.00	1,268		7.1	$	33.27	597		$	33.25
$40.01-$55.00	790		9.0	$	45.62	148		$	45.84
$55.01-$73.22	543		9.7	$	71.89	4		$	73.22

	3,495		7.8	$	36.88	1,202		$	26.95


Aggregate Intrinsic Value	$	37,739				$	19,086

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

	Three months ended March 31,
	2016		2015

Cash proceeds from options exercised	$	768	$	1,760
Aggregate intrinsic value of options exercised	$	2,216	$	10,368

Summary of outstanding RSU awards

	Restricted Stock Units		Weighted Average Grant-Date Fair Value

Outstanding, December 31, 2015	288		$	44.54
Awarded	148		$	73.22
Vested	(33	)	$	45.60
Forfeited	1		$	47.24

Outstanding, March 31, 2016	404		$	54.99

Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic and diluted net income (loss) per common share calculation:
Net income (loss)	$ (36,301)	$ 6,636
Weighted average common shares outstanding - basic	35,256	34,154
Plus: effect of dilutive stock options, warrants and unvested restricted stock units		1,085
Weighted average common shares outstanding-dilutive	35,256	35,239
Net income (loss) per share of common stock - basic	$ (1.03)	$ 0.19
Net income (loss) per share of common stock - diluted	$ (1.03)	$ 0.19
Anti-dilutive securities
Total (in shares)	3,899	929
Stock options outstanding
Anti-dilutive securities
Total (in shares)	3,495	929
Restricted stock units
Anti-dilutive securities
Total (in shares)	404

Cash, Cash Equivalents and Available for Sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Cash, Cash Equivalents and Available for Sale Securities
Cash	$ 1,300		$ 5,500
Investments in money market funds and U.S. Treasury securities with original maturities of 90 days or less	182,500		216,400
Available for sale securities with maturities of less than one year	109,104		74,731
Available for sale securities with maturities of greater than one year	63,211		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	172,311		170,502
Unrealized Gain (Loss)	4		(473)
Changes in accumulated other comprehensive income (loss)
Beginning balance	(473)	$ (65)
Current period changes in fair value before reclassifications, net of tax	477	48
Total other comprehensive income, net of tax	477	48
Ending balance	4	$ (17)
Fair Value
Available for sale securities, including carrying value and estimated fair values
Value	172,315		170,029
Carrying Value
Available for sale securities, including carrying value and estimated fair values
Value	172,315		170,029
U.S. Treasury securities
Available for sale securities, including carrying value and estimated fair values
Cost	132,386		130,507
Unrealized Gain (Loss)	4		(311)
U.S. Treasury securities \| Fair Value
Available for sale securities, including carrying value and estimated fair values
Value	132,390		130,196
U.S. Treasury securities \| Carrying Value
Available for sale securities, including carrying value and estimated fair values
Value	132,390		130,196
Corporate debt securities
Available for sale securities, including carrying value and estimated fair values
Cost	39,925		39,995
Unrealized Gain (Loss)			(162)
Corporate debt securities \| Fair Value
Available for sale securities, including carrying value and estimated fair values
Value	39,925		39,833
Corporate debt securities \| Carrying Value
Available for sale securities, including carrying value and estimated fair values
Value	$ 39,925		$ 39,833

Stock Option and Compensation Plans - Stock Incentive Plans and Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions				1 Months Ended	3 Months Ended
	Jan. 01, 2016	Jan. 01, 2015	Jan. 01, 2014	Aug. 31, 2013	Mar. 31, 2016
Common Stock Options
Outstanding, December 31, 2015 (in shares)	3,009,000				3,009,000
Granted (in shares)					549,000
Exercised (in shares)					(61,000)
Expired or forfeited (in shares)					(2,000)
Outstanding, March 31, 2016 (in shares)					3,495,000
Weighted Average Exercise Price
Outstanding, December 31, 2015 (in dollars per share)	$ 30.43				$ 30.43
Granted (in dollars per share)					69.56
Exercised (in dollars per share)					12.53
Expired or forfeited (in dollars per share)					41.39
Outstanding, March 31, 2016 (in dollars per share)					$ 36.88
Options exercisable at March 31, 2016 (in shares)					1,202,000
Weighted average grant date fair value (per share) of options granted during the period (in dollars per share)					$ 43.97
Options outstanding, net of estimated forfeitures, vested or expected to vest
Options outstanding (in shares)					3,249,000
Weighted-average exercise price (in dollars per share)					$ 36.93
Weighted average remaining contractual life					7 years 9 months 18 days
Aggregate intrinsic value					$ 34.6
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
Number of shares of common stock available for issuance under the Plan					1,753,000
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%
Increase in number of shares available under the Plan	1,408,000	1,360,000	1,257,000
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 - Options Outstanding and Exercisable by Exercise Price and Options Exercised (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash proceeds from, and the aggregate intrinsic value of, stock options exercised
Cash proceeds from options exercised	$ 768	$ 1,760
Aggregate intrinsic value of options exercised	$ 2,216	$ 10,368
Options Outstanding
Total Options Outstanding (in shares)	3,495
Weighted Average Remaining Life (Years)	7 years 9 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 36.88
Aggregate Intrinsic Value of Options Outstanding	$ 37,739
Options Exercisable
Number Exercisable (in shares)	1,202
Weighted Average Exercise Price (in dollars per share)	$ 26.95
Aggregate Intrinsic Value of Options Exercisable	$ 19,086
$0.12-$10.03
Cash proceeds from, and the aggregate intrinsic value of, stock options exercised
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)	400
Weighted Average Remaining Life (Years)	6 years 3 months 18 days
Weighted Average Exercise Price (in dollars per share)	$ 7.55
Options Exercisable
Number Exercisable (in shares)	208
Weighted Average Exercise Price (in dollars per share)	$ 5.39
$10.04-$20.00
Cash proceeds from, and the aggregate intrinsic value of, stock options exercised
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)	333
Weighted Average Remaining Life (Years)	6 years 4 months 24 days
Weighted Average Exercise Price (in dollars per share)	$ 13.46
Options Exercisable
Number Exercisable (in shares)	159
Weighted Average Exercise Price (in dollars per share)	$ 13.51
$20.01-$30.00
Cash proceeds from, and the aggregate intrinsic value of, stock options exercised
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)	161
Weighted Average Remaining Life (Years)	7 years 7 months 6 days
Weighted Average Exercise Price (in dollars per share)	$ 25.61
Options Exercisable
Number Exercisable (in shares)	86
Weighted Average Exercise Price (in dollars per share)	$ 25.56
$30.01-$40.00
Cash proceeds from, and the aggregate intrinsic value of, stock options exercised
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)	1,268
Weighted Average Remaining Life (Years)	7 years 1 month 6 days
Weighted Average Exercise Price (in dollars per share)	$ 33.27
Options Exercisable
Number Exercisable (in shares)	597
Weighted Average Exercise Price (in dollars per share)	$ 33.25
$40.01 - $55.00
Cash proceeds from, and the aggregate intrinsic value of, stock options exercised
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)	790
Weighted Average Remaining Life (Years)	9 years
Weighted Average Exercise Price (in dollars per share)	$ 45.62
Options Exercisable
Number Exercisable (in shares)	148
Weighted Average Exercise Price (in dollars per share)	$ 45.84
$55.01 - $73.22
Cash proceeds from, and the aggregate intrinsic value of, stock options exercised
Exercise prices, low end of range (in dollars per share)	55.01
Exercise prices, high end of range (in dollars per share)	$ 73.22
Options Outstanding
Total Options Outstanding (in shares)	543
Weighted Average Remaining Life (Years)	9 years 8 months 12 days
Weighted Average Exercise Price (in dollars per share)	$ 71.89
Options Exercisable
Number Exercisable (in shares)	4
Weighted Average Exercise Price (in dollars per share)	$ 73.22

Stock Option and Compensation Plans - Stock Compensation Expense and Restricted Stock Units (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Weighted Average Grant-Date Fair Value
Share-based compensation expense	$ 8,332	$ 5,054
Stock options \| Employees
Weighted Average Grant-Date Fair Value
Share-based compensation expense	6,100	3,900
Unrecognized share-based compensation costs for option awards, net of estimated forfeitures	$ 49,800
Expected weighted average period to recognize share-based compensation costs	2 years 10 months 24 days
Non-employee Options \| Consultants
Weighted Average Grant-Date Fair Value
Share-based compensation expense	$ 400	700
Unrecognized share-based compensation costs for option awards, net of estimated forfeitures	$ 2,100
Expected weighted average period to recognize share-based compensation costs	1 year 8 months 12 days
Restricted stock units
Restricted Stock Units
Outstanding, December 31, 2015	288,000
Awarded	148,000
Vested	(33,000)
Forfeited	(1,000)
Outstanding, March 31, 2016	404,000
Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2015	$ 44.54
Awarded	73.22
Vested	45.60
Forfeited	47.24
Outstanding, March 31, 2016	$ 54.99
RSUs expected to vest	368,000
Weighted-average fair value of RSUs expected to vest	$ 54.99
Aggregate intrinsic value of RSUs expected to vest	$ 15,500
Total fair value of the RSUs that vested during the period	1,500
Restricted stock units \| Employees
Weighted Average Grant-Date Fair Value
Share-based compensation expense	$ 1,800	$ 500
Expected weighted average period to recognize share-based compensation costs	3 years 4 months 24 days
Weighted Average Grant-Date Fair Value
Unrecognized compensation costs, net of estimated forfeitures, related to RSUs	$ 16,700

Unaudited Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Unaudited 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	35,290,135	35,196,567
Common stock, shares outstanding	35,290,135	35,196,567

Business	3 Months Ended
Business	Mar. 31, 2016
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, as a monotherapy for the treatment of patients with geographic atrophy (“GA”), a form of dry AMD, as well as in combination with anti-VEGF drugs for the treatment of wet AMD, and 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.

Financing Agreement with Novo A/S	3 Months Ended
Financing Agreement with Novo A/S	Mar. 31, 2016
Financing Agreement with Novo A/S
Financing Agreement with Novo A/S	6. 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 mid-single digit percentages of net sales. 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 March 31, 2016, 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.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2016
Income Taxes
Income Taxes	7. 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 March 31, 2016, the Company had accrued approximately $0.3 million in interest and penalties related to the timing of certain tax payments for the 2014 tax year. 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 is currently projecting tax losses in 2016. The Company expects to realize its net deferred tax assets recorded as of December 31, 2015 in 2016 due to the Company’s ability to carryback its 2015 federal tax losses to 2014. As such, the Company reclassified these amounts to income tax receivable on the Company’s Balance Sheet as of March 31, 2016. 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.

Business (Details)	Mar. 31, 2016 item
Phase 1 Clinical Trial
Number of trials completed	1
Phase 2b Clinical Trial
Number of trials completed	1
Patient enrollment for Phase 3 Clinical Trial
Number of trials completed	2

Unaudited Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Unaudited Statements Of Comprehensive Income (Loss)
Net income (loss)	$ (36,301)	$ 6,636
Other comprehensive income:
Unrealized gain on available for sale securities, net of tax	477	48
Other comprehensive income:	477	48
Comprehensive income (loss)	$ (35,824)	$ 6,684

Summary of Significant Accounting Policies - Collaboration Revenue (Details) $ in Thousands	1 Months Ended			3 Months Ended		7 Months Ended
	Mar. 31, 2015 USD ($)	Sep. 30, 2014 USD ($)	May 31, 2014 USD ($)	Mar. 31, 2016 USD ($) item	Mar. 31, 2015 USD ($)	Mar. 31, 2015 USD ($)
Components of collaboration revenue
Total collaboration revenue				$ 15,721	$ 41,678
Number of categories for milestones \| item				3
License revenue
Components of collaboration revenue
Total collaboration revenue					38,083
Research and development activity revenue
Components of collaboration revenue
Total collaboration revenue				$ 1,275	3,585
API transfer revenue
Components of collaboration revenue
Total collaboration revenue				14,443
Joint operating committee revenue
Components of collaboration revenue
Total collaboration revenue				$ 3	$ 10
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

Summary of Significant Accounting Policies - Property and Equipment (Details)	3 Months Ended
	Mar. 31, 2016
Minimum
Property and equipment
Estimated useful lives	3 years
Maximum
Property and equipment
Estimated useful lives	10 years

Licensing and Commercialization Agreement with Novartis Pharma AG (Details) - USD ($) $ in Thousands	1 Months Ended					3 Months Ended		7 Months Ended
	Apr. 30, 2015	Mar. 31, 2015	Oct. 31, 2014	Sep. 30, 2014	May 31, 2014	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2015
Agreement
Total collaboration revenue						$ 15,721	$ 41,678
License revenue
Agreement
Total collaboration revenue							38,083
Research and development activity revenue
Agreement
Total collaboration revenue						1,275	3,585
API transfer revenue
Agreement
Total collaboration revenue						14,443
Joint operating committee revenue
Agreement
Total collaboration revenue						$ 3	$ 10
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
Licensing and Commercialization Agreement \| Novartis Pharma AG \| Achievement of specified patient enrollment milestones \| Maximum
Agreement
Aggregate amount receivable on achievement of milestone					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
Licensing and Commercialization Agreement \| Novartis Pharma AG \| Achievement of specified commercial sale milestone \| Maximum
Agreement
Aggregate amount receivable on achievement of milestone					$ 400,000

Financing Agreement with Novo A/S (Details) $ in Thousands	1 Months Ended			19 Months Ended
Financing Agreement with Novo A/S (Details) $ in Thousands	Nov. 30, 2014 USD ($)	Jan. 31, 2014 USD ($)	May 31, 2013 USD ($) tranche	Nov. 30, 2014 USD ($)	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Agreement
Royalty purchase liability					$ 125,000	$ 125,000
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
Proceeds from royalty purchase agreement	$ 41,700	$ 41,700	$ 41,700	$ 125,000
Royalty purchase liability					$ 125,000

Income Taxes (Details) $ in Millions	Mar. 31, 2016 USD ($)
Income Taxes
Accrued interest and penalties related to the timing of certain tax payments	$ 0.3

Fair Value Measurements (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value Measurements
Transfer of assets from Level 1 to Level 2 of the fair value measurement hierarchy	$ 0
Transfer of assets from Level 2 to Level 1 of the fair value measurement hierarchy	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	182,496	$ 196,188
Recurring basis \| Quoted prices in active markets for identical assets (Level 1) \| U.S. Treasury securities
Fair Value Measurements
Investments in money market funds and U.S. Treasury securities with maturities less than 90 days		150,387
Investments in available for sale securities	132,390
Recurring basis \| Significant other observable inputs (Level 2) \| Corporate debt securities
Fair Value Measurements
Investments in available for sale securities	$ 39,925	$ 39,833

Property and Equipment (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Property and Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Property and Equipment
Property and equipment, gross	$ 4,427		$ 4,365
Accumulated depreciation	(1,077)		(899)
Property and equipment, net	3,350		3,466
Depreciation expense	$ 178	$ 56
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	$ 1,479		$ 944
Furniture and fixtures
Property and Equipment
Useful life	7 years		7 years
Property and equipment, gross	$ 738		$ 738
Leasehold improvements
Property and Equipment
Property and equipment, gross	$ 1,551		$ 1,551
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	$ 42		$ 515