0001558370-21-015033 | 10-Q | XBRL Viewer

Fair Value Measurements - Cash equivalents, marketable securities and restricted cash (Details) $ in Thousands	Sep. 30, 2021 USD ($) security	Dec. 31, 2020 USD ($)
Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash
Investments in marketable securities has been in an unrealized loss position for more than one year \| security	0
Cash Equivalents
Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash
Cost	$ 357,743	$ 538,673
Estimated Fair Value	357,743	538,673
Cash Equivalents \| Money market funds
Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash
Cost	357,743	538,673
Estimated Fair Value	357,743	538,673
Marketable Securities
Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash
Cost	108,170
Unrealized (Loss)	(3)
Estimated Fair Value	108,167
Marketable Securities \| Corporate notes and Commercial paper
Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash
Cost	108,170
Unrealized (Loss)	(3)
Estimated Fair Value	108,167
Restricted Cash
Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash
Cost	440	440
Estimated Fair Value	440	440
Restricted Cash \| Money market funds
Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash
Cost		440
Estimated Fair Value		$ 440
Restricted Cash \| Restricted cash (money market funds)
Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash
Cost	440
Estimated Fair Value	$ 440
Maximum
Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash
Remaining contractual maturities of available-for-sale securities	1 year

Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value Measurements Recurring Basis - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 358,183	$ 539,113
Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	0
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	108,167
Level 1 \| Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	0
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Level 2 \| Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	102	102
Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	466,350	539,113
Level 3 \| Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	102	102
Money market funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	357,743	538,673
Money market funds \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Money market funds \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Money market funds \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	357,743	538,673
Restricted cash (money market funds)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	440	440
Restricted cash (money market funds) \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Restricted cash (money market funds) \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Restricted cash (money market funds) \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	440	$ 440
Corporate notes and Commercial paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Corporate notes and Commercial paper \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	108,167
Corporate notes and Commercial paper \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	0
Corporate notes and Commercial paper \| Level 3
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 108,167

Revenue - Activities and Ending Reserve Balances for Each Significant Category of Discounts and Allowances (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Accounts Notes And Loans Receivable
Balance at December 31	$ 123,398	$ 87,147
Provision related to sales made in:
Current period	520,917	488,998
Prior period	(8,715)	(9,763)
Payments and customer credits issued	(516,557)	(464,953)
Balance at September 30	119,043	101,429
Chargebacks and Discounts for Prompt Payment
Accounts Notes And Loans Receivable
Balance at December 31	40,580	35,159
Provision related to sales made in:
Current period	356,663	323,070
Prior period	(2,859)	(611)
Payments and customer credits issued	(362,241)	(332,745)
Balance at September 30	32,143	24,873
Rebates
Accounts Notes And Loans Receivable
Balance at December 31	54,058	27,494
Provision related to sales made in:
Current period	90,965	80,264
Prior period	(2,821)	(2,884)
Payments and customer credits issued	(78,600)	(58,102)
Balance at September 30	63,602	46,772
Other Fees, Co-pay Assistance and Returns
Accounts Notes And Loans Receivable
Balance at December 31	28,760	24,494
Provision related to sales made in:
Current period	73,289	85,664
Prior period	(3,035)	(6,268)
Payments and customer credits issued	(75,716)	(74,106)
Balance at September 30	$ 23,298	$ 29,784

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies.

Schedule of Non-Cancellable Purchase Commitment


Years ending December 31,
Remainder of 2021	$	16,760
2022		34,606
2023		9,753
2024		3,441
Total obligations	$	64,560

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 360,540	$ 541,158
Investments in marketable securities	108,167
Trade receivables, net	136,346	157,046
Inventory	37,583	44,233
Prepaid manufacturing	20,378	19,429
Other prepaid and other assets	10,025	5,613
Total current assets	673,039	767,479
Property and equipment, net	8,505	10,108
Inventory, non-current	46,357	47,956
Intangible assets	2,620	2,620
Goodwill	943	943
Other assets, non-current	10,262	12,543
Total assets	741,726	841,649
Current liabilities:
Accounts payable	45,707	15,201
Accrued rebates, fees and reserve	84,744	81,529
Accrued compensation	18,793	22,244
Accrued and other current liabilities	45,826	26,679
Convertible notes due 2022 - current	80,978
Convertible notes due 2022 - related parties, current	26,992
Term Loan - current portion	17,308
Total current liabilities	320,348	145,653
Convertible notes due 2022		79,885
Convertible notes due 2026	223,971	223,029
Term loan	57,924	74,481
Lease liabilities, non-current	7,973	9,948
Other liabilities, non-current	750	1,051
Total liabilities	610,966	560,675
Commitments and contingencies (Note 8)
Stockholders' equity:
Common stock ($0.0001 par value; shares authorized: 300,000,000; shares issued and outstanding: 76,583,279 and 72,513,348 at September 30, 2021 and December 31, 2020, respectively)	7	7
Additional paid-in capital	1,135,155	1,043,991
Accumulated other comprehensive loss	(273)	(270)
Accumulated deficit	(1,004,129)	(762,754)
Total stockholders' equity	130,760	280,974
Total liabilities and stockholders' equity	$ 741,726	841,649
KKR Biosimilar L.P., MX II Associates LLC, and KMG Capital Partners, LLC
Current liabilities:
Convertible notes due 2022		$ 26,628

Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies.

Commitments and Contingencies

8. Commitments and Contingencies

Purchase Commitments

The Company entered into agreements with certain vendors to secure raw materials and certain CMOs to manufacture its commercial supply of UDENYCA^®. As of September 30, 2021, the Company’s contractual obligations under the terms of the agreements are as follows (in thousands):


Years ending December 31,
Remainder of 2021	$	16,760
2022		34,606
2023		9,753
2024		3,441
Total obligations	$	64,560

The Company enters into contracts in the normal course of business with contract research organizations for preclinical studies and clinical trials and CMOs for the manufacture of clinical trial materials. The contracts are cancellable, with varying provisions regarding termination. If a contract with a specific vendor were to be terminated, the Company would generally only be obligated for products or services that the Company had received as of the effective date of the termination and any applicable cancellation fees.

Guarantees and Indemnifications

In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. The Company’s exposure under these agreements is unknown because it involves claims that may be made against the Company in the future but have not yet

been made. To date, the Company has not paid any claims or been required to defend any action related to its indemnification obligations. However, the Company may record charges in the future as a result of these indemnification obligations. The Company assesses the likelihood of any adverse judgments or related claims, as well as ranges of probable losses. In the cases where the Company believes that a reasonably possible or probable loss exists, it will disclose the facts and circumstances of the claims, including an estimate range, if possible.

Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Inventory
Raw materials	$ 5,617	$ 5,205
Work in process	46,625	43,952
Finished goods	31,698	43,032
Total	$ 83,940	$ 92,189

Convertible Notes and Term Loan - 1.5% Convertible Senior Subordinated Notes due 2026 (Details)		1 Months Ended	9 Months Ended
	Apr. 30, 2020 USD ($) shares	Apr. 30, 2020 USD ($) $ / shares shares	Sep. 30, 2021 USD ($) $ / shares	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Debt Instrument
Proceeds from offering after deducting initial purchasers' fees and offering expenses				$ 222,156,000
Conversion price per common share \| $ / shares		$ 14.815
2026 Convertible Notes
Debt Instrument
Principal amount of notes converted into shares	$ 1,000	$ 1,000
Senior subordinated notes \| 2026 Convertible Notes
Debt Instrument
Aggregate principal amount	$ 230,000,000.0	$ 230,000,000.0	$ 230,000,000		$ 230,000,000
Convertible notes, interest rate	1.50%	1.50%
Proceeds from offering after deducting initial purchasers' fees and offering expenses	$ 222,200,000
Common shares at conversion \| shares	51.9224	51.9224
Principal amount of notes converted into shares	$ 1,000	$ 1,000
Conversion price per common share \| $ / shares		$ 19.26
Interest rate description		The 2026 Convertible Notes accrue interest at a rate of 1.5% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, since October 15, 2020
Debt instrument maturity date		Apr. 15, 2026
Convertible notes, premium percentage		30.00%
Number of events in default			0
Debt issuance costs			$ 900,000
Contractual term			6 years
Convertible notes, converted amount			$ 191,900,000
Closing stock, price per share \| $ / shares			$ 16.07
Remaining unamortized debt discount and debt offering costs			$ 6,029,000		$ 6,971,000
Effective interest rate			2.10%
Debt Instrument Term			4 years 6 months

Convertible Notes and Term Loan - 2022 Convertible Notes Components (Details) - 8.2% Convertible Notes due 2022 - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Feb. 29, 2016
Debt Instrument
Unamortized debt discount and debt issuance costs	$ (1,030)
Senior unsubordinated notes
Debt Instrument
Principal amount of the Convertible Notes	81,750	$ 81,750	$ 100,000
Unamortized debt discount and debt issuance costs	(772)	(1,865)
Total Convertible Notes	80,978	79,885
Total 2022 Convertible Notes	107,970	106,513
KKR Biosimilar L.P., MX II Associates LLC, and KMG Capital Partners, LLC \| Senior unsubordinated notes
Debt Instrument
Principal amount of the Convertible Notes	27,250	27,250
Unamortized debt discount and debt issuance costs	(258)	(622)
Total Convertible Notes	$ 26,992	$ 26,628

Convertible Notes and Term Loan - 2026 Convertible Notes Future Payments (Details) - Senior subordinated notes - 2026 Convertible Notes - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument
Remainder of 2021	$ 1,725
2022	3,450
2023	3,450
2024	3,450
2025 and beyond	235,175
Total minimum payments	247,250
Less amount representing interest	(17,250)
2026 Convertible Notes, principal amount	230,000
Less debt discount and debt issuance costs on 2026 Convertible Notes	(6,029)	$ (6,971)
Net carrying amount of 2026 Convertible Notes	$ 223,971

Organization and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2021

Organization and Summary of Significant Accounting Policies

Organization and Summary of Significant Accounting Policies

1. Organization and Summary of Significant Accounting Policies

Organization

Coherus BioSciences, Inc. (the “Company” or “Coherus”) is a commercial-stage biotherapeutics company focused on the biosimilar and immuno-oncology market primarily in the United States. The Company’s headquarters and laboratories are located in Redwood City, California and in Camarillo, California, respectively. The Company commercializes UDENYCA® (pegfilgrastim-cbqv), a biosimilar to Neulasta, a long-acting granulocyte-colony stimulating factor, in the United States.

The Company’s product pipeline comprises four drugs, CHS-1420 (an adalimumab (Humira) biosimilar), a ranibizumab (Lucentis) biosimilar in-licensed for U.S. and Canadian commercial rights from Bioeq AG, a bevacizumab (Avastin) biosimilar in-licensed for U.S. commercial rights from Innovent Biologics (Suzhou) Co., Ltd. and toripalimab, an anti-PD-1 antibody being developed in collaboration with Junshi Biosciences.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of Coherus and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements reflect all adjustments, including normal recurring accruals, that the Company believes are necessary to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Interim-period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period.

The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) filed with the Securities and Exchange Commission (“SEC”).

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities when these values are not readily apparent from other sources. Accounting estimates and judgements are inherently uncertain and the actual results could differ from these estimates.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets which, in aggregate, represent the amount reported in the condensed consolidated statements of cash flows (in thousands):


	Nine Months Ended
	September 30,
	2021		2020
At beginning of period:
Cash and cash equivalents	$	541,158	$	177,668
Restricted cash - non-current		440		240
Total cash, cash equivalents and restricted cash	$	541,598	$	177,908

At end of period:
Cash and cash equivalents	$	360,540	$	292,465
Restricted cash - non-current		440		440
Total cash, cash equivalents and restricted cash	$	360,980	$	292,905

Restricted cash – non-current consists of deposits for letter of credits that the Company has provided to secure its obligations under certain leases.

Investments in Marketable Securities

Investments in marketable securities primarily consist of corporate debt obligations and commercial paper. Management determines the appropriate classification of investments in marketable securities at the time of purchase based upon management’s intent with regards to such investment and reevaluates such designation as of each balance sheet date. The Company’s investment policy requires that it only invests in highly rated securities and limit its exposure to any single issuer. All investments in debt marketable securities are held as “available-for-sale” and are carried at the estimated fair value as determined based upon quoted market prices or pricing models for similar securities.

The Company classifies investments in marketable securities as short-term when they have remaining contractual maturities of one year or less from the balance sheet date. Unrealized gains and losses on available-for-sale securities are reported as a component of accumulated comprehensive income (loss), with the exception of unrealized losses believed to be related to credit losses, if any, which are recognized in earnings in the period the impairment occurs. Impairment assessments are made at the individual security level each reporting period. When the fair value of an investment is less than its cost at the balance sheet date, a determination is made as to whether the impairment is related to a credit loss and, if it is, the portion of the impairment relating to credit loss is recorded as an allowance through net income. Realized gains and losses and declines in value, if any, on available-for-sale securities are included in other income, net, based on the specific identification method.

Trade Receivables

Trade receivables are recorded net of allowances for chargebacks, chargeback prepayments, cash discounts for prompt payment and credit losses. The Company estimates an allowance for expected credit losses by considering factors such as historical experience, credit quality, the age of the accounts receivable balances, and current economic conditions that may affect a customer’s ability to pay. The corresponding expense for the credit loss allowance is reflected in selling, general and administrative expenses. The credit loss allowance was immaterial as of September 30, 2021 and December 31, 2020.

Recent Accounting Pronouncements

The following are the recent accounting pronouncements adopted by the Company in 2021:

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The new guidance removes certain exceptions for recognizing deferred taxes for investments, performing intra-period allocation and calculating income taxes in interim periods. It also adds guidance to reduce complexity in certain areas, including recognizing deferred taxes for tax goodwill and allocating taxes to members of a consolidated group. The Company adopted this guidance as of January 1, 2021. The adoption did not have a material impact on the Company’s condensed consolidated financial statements.

In October 2020, the FASB issued ASU 2020-10, Codification Improvements, which updates various codification topics by clarifying or improving disclosure requirements to align with the SEC’s regulations. The Company adopted this guidance as of January 1, 2021. The adoption did not have a material impact on the Company’s condensed consolidated financial statements.

The Company has reviewed other recent accounting pronouncements and concluded they are either not applicable to the business or that no material effect is expected on the condensed consolidated financial statements as a result of future adoption.

Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Condensed Consolidated Statements of Comprehensive Income (unaudited)
Net (loss) income	$ (38,528)	$ 27,933	$ (241,375)	$ 122,536
Other comprehensive (loss) income:
Unrealized (loss) gain on available-for-sale securities, net of tax	(6)	6	(3)	18
Foreign currency translation adjustments, net of tax		(4)	0	285
Comprehensive (loss) income	$ (38,534)	$ 27,935	$ (241,378)	$ 122,839

- Definition

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794

+ Details

Related Party Transactions (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 28, 2021	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2021	Dec. 31, 2020	Feb. 29, 2016
Consulting Agreement With Lanfear Advisors
Related Party Transaction
Number of options, granted	65,000
Exercise price	$ 17.60
Stock-based compensation expense			$ 0.8
Cash consulting expense		$ 0.0		$ 0.2
Liabilities recognized		$ 0.0		$ 0.0	$ 0.3
Affiliated Entity
Related Party Transaction
Aggregate principal amount						$ 25.0

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2021

Employee And Nonemployee Stock Option Restricted Stock Units

Employee Service Share Based Compensation Allocation Of Recognized Period Costs

Schedule of Stock-Based Compensation Expense

The following table summarizes the classification of stock-based compensation expense in our condensed consolidated statements of operations related to options and restricted stock units granted to employees and nonemployees (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Cost of goods sold ⁽¹⁾	$	394	$	175	$	896	$	396
Research and development		4,126		3,231		14,642		10,315
Selling, general and administrative		7,419		5,902		24,880		17,576
Stock-based compensation expense	$	11,939	$	9,308	$	40,418	$	28,287

Capitalized stock-based compensation expense into inventory	$	241	$	324	$	758	$	1,196

(1) Stock-based compensation capitalized into inventory is recognized as cost of goods sold when the related product is sold.

Convertible Notes and Term Loan - 2026 Convertible Notes Interest Expense Components (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument
Accretion of debt discount and debt issuance costs			$ 3,150	$ 2,492
2026 Convertible Notes \| Senior subordinated notes
Debt Instrument
Stated coupon interest	$ 862	$ 863	2,587	1,572
Accretion of debt discount and debt issuance costs	316	309	942	562
Total interest expense	$ (1,178)	$ (1,172)	$ (3,529)	$ (2,134)

Inventory - Balance Sheet Classifications (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Inventory
Inventory	$ 37,583	$ 44,233
Inventory, non-current	46,357	47,956
Total	$ 83,940	$ 92,189

Convertible Notes and Term Loan - 2022 Convertible Notes Future Payments (Details) - 8.2% Convertible Notes due 2022 - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument
Remainder of 2021	$ 2,050
2022	111,050
Total minimum payments	113,100
Less amount representing interest	(4,100)
2026 Convertible Notes, principal amount	109,000
Less debt discount and debt issuance costs on 2026 Convertible Notes	(1,030)
Net carrying amount of 2026 Convertible Notes	107,970
Senior unsubordinated notes
Debt Instrument
Less debt discount and debt issuance costs on 2026 Convertible Notes	$ (772)	$ (1,865)

Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Measurements

Fair Value Measurements

2. Fair Value Measurements

Financial assets and liabilities are recorded at fair value. The carrying amounts of certain of the Company’s financial instruments, including cash, cash equivalents, restricted cash, investments in marketable securities, accounts receivable, accounts payable and other current liabilities approximate their fair values due to their short maturities. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The accounting guidance describes a fair value hierarchy based on three levels of inputs that may be used to measure fair value, of which the first two are considered observable and the last is considered unobservable. These levels of inputs are the following:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The Company’s financial instruments consist of Level 1 and Level 2 assets, and Level 3 liabilities. Where quoted prices are available in an active market, securities are classified as Level 1. Level 1 assets consist of highly liquid money market funds that are included in cash and cash equivalents, and restricted cash. The unrealized gains and losses in the Company’s investments in these money market funds were immaterial.

When quoted market prices are not available for the specific security, then the Company estimates the fair value by using quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs obtained from various third-party data

providers, including but not limited to, benchmark yields, interest rate curves, reported trades, broker/dealer quotes and market reference data. Level 2 assets consist of corporate notes and commercial paper. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset.

In certain cases where there is limited activity or less transparency around inputs to valuation, securities are classified as Level 3. Level 3 liabilities consist of contingent consideration.

There were no transfers between Level 1, Level 2 and Level 3 during the periods presented.

Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows (in thousands):


	Fair Value Measurements
	September 30, 2021
	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	357,743	$	—	$	—	$	357,743
Restricted cash (money market funds)		440		—		—		440
Corporate notes and Commercial paper		—		108,167		—		108,167
Total financial assets	$	358,183	$	108,167	$	—	$	466,350
Financial Liabilities:
Contingent consideration	$	—	$	—	$	102	$	102


	Fair Value Measurements
	December 31, 2020
	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	538,673	$	—	$	—	$	538,673
Restricted cash (money market funds)		440		—		—		440
Total financial assets	$	539,113	$	—	$	—	$	539,113
Financial Liabilities:
Contingent consideration	$	—	$	—	$	102	$	102

Cash equivalents, marketable securities and restricted cash, consisted of the following (in thousands):


	September 30, 2021
	Cost		Unrealized Gain		Unrealized (Loss)		Fair Value
Money market funds	$	357,743	$	—	$	—	$	357,743
Classified as cash equivalents	$	357,743	$	—	$	—	$	357,743

Corporate notes and Commercial paper	$	108,170	$	—	$	(3)	$	108,167
Classified as marketable securities	$	108,170	$	—	$	(3)	$	108,167

Money market funds	$	440	$	—	$	—	$	440
Classified as restricted cash	$	440	$	—	$	—	$	440


	December 31, 2020
	Cost		Unrealized Gain		Unrealized (Loss)		Fair Value
Money market funds	$	538,673	$	—	$	—	$	538,673
Classified as cash equivalents	$	538,673	$	—	$	—	$	538,673

Money market funds	$	440	$	—	$	—	$	440
Classified as restricted cash	$	440	$	—	$	—	$	440

As of September 30, 2021, the remaining contractual maturities of available-for-sale securities were less than one year, and the average maturity of investments upon acquisition was approximately 11 months. The realized gains or losses on marketable securities for the periods presented were immaterial. None of the Company’s investments in marketable securities has been in an unrealized loss position for more than one year. The Company determined that it has the ability and intent to hold all marketable securities that have been in a continuous loss position until maturity or recovery and there is no indication of default on interest or principal payments for any of its debt securities, thus no credit losses have been recognized in the three and nine months ended September 30, 2021 and 2020.

1.5% Convertible Notes due 2026

The estimated fair values of the 1.5% Convertible Notes due 2026 issued by the Company in April 2020 (see Note 7) for the periods presented were determined by prices observed in markets that were not active and thus considered to be Level 2 inputs. Among other factors, these market prices are influenced by interest rates, the Company’s stock price and price volatility. The estimated fair value of the Convertible Notes due 2026 was approximately $255.2 million and $269.1 million (par value $230.0 million) as of September 30, 2021 and December 31, 2020, respectively.

8.2% Convertible Notes due 2022

The estimated fair values of the 8.2% Convertible Senior Notes due 2022 issued by the Company in February 2016 (see Note 7) for the periods presented were determined using an income approach that incorporates a single factor binomial lattice model and is therefore considered to be Level 3 inputs. This lattice model incorporates the terms and conditions of the convertible notes and market-based risk measurements that are indirectly observable, such as credit risk. The estimated fair value is based on changes in the price of the underlying common shares over successive periods of time. An estimated yield based on market data is used to discount straight-debt cash flows. The estimated fair value of the 8.2% Convertible Senior Notes due 2022 was approximately $108.6 million and $113.7 million (par value $100.0 million) as of September 30, 2021 and December 31, 2020, respectively.

Term Loan

The principal amount outstanding under the Company’s Term Loan (see Note 7) of $75 million as of September 30, 2021 is subject to variable interest rate, which is based on a fixed percentage plus three month LIBOR (“LIBOR”)(or any successor rate pursuant to the Term Loan), and as such, the Company believes the carrying amount of this obligation approximates fair value.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Measurements

Financial Assets and Liabilities Measured on a Recurring Basis

Financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used in such measurements were as follows (in thousands):


	Fair Value Measurements
	September 30, 2021
	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	357,743	$	—	$	—	$	357,743
Restricted cash (money market funds)		440		—		—		440
Corporate notes and Commercial paper		—		108,167		—		108,167
Total financial assets	$	358,183	$	108,167	$	—	$	466,350
Financial Liabilities:
Contingent consideration	$	—	$	—	$	102	$	102


	Fair Value Measurements
	December 31, 2020
	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	538,673	$	—	$	—	$	538,673
Restricted cash (money market funds)		440		—		—		440
Total financial assets	$	539,113	$	—	$	—	$	539,113
Financial Liabilities:
Contingent consideration	$	—	$	—	$	102	$	102

Schedule of Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash

Cash equivalents, marketable securities and restricted cash, consisted of the following (in thousands):


	September 30, 2021
	Cost		Unrealized Gain		Unrealized (Loss)		Fair Value
Money market funds	$	357,743	$	—	$	—	$	357,743
Classified as cash equivalents	$	357,743	$	—	$	—	$	357,743

Corporate notes and Commercial paper	$	108,170	$	—	$	(3)	$	108,167
Classified as marketable securities	$	108,170	$	—	$	(3)	$	108,167

Money market funds	$	440	$	—	$	—	$	440
Classified as restricted cash	$	440	$	—	$	—	$	440


	December 31, 2020
	Cost		Unrealized Gain		Unrealized (Loss)		Fair Value
Money market funds	$	538,673	$	—	$	—	$	538,673
Classified as cash equivalents	$	538,673	$	—	$	—	$	538,673

Money market funds	$	440	$	—	$	—	$	440
Classified as restricted cash	$	440	$	—	$	—	$	440

Organization and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2021

Organization and Summary of Significant Accounting Policies

Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash


	Nine Months Ended
	September 30,
	2021		2020
At beginning of period:
Cash and cash equivalents	$	541,158	$	177,668
Restricted cash - non-current		440		240
Total cash, cash equivalents and restricted cash	$	541,598	$	177,908

At end of period:
Cash and cash equivalents	$	360,540	$	292,465
Restricted cash - non-current		440		440
Total cash, cash equivalents and restricted cash	$	360,980	$	292,905

Convertible Notes and Term Loan - Term Loan Interest Expense Components (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument
Accretion of debt discount and debt issuance costs			$ 3,150	$ 2,492
Term Loan
Debt Instrument
Stated coupon interest	$ 1,773	$ 1,773	5,261	5,280
Accretion of debt discount and debt issuance costs	273	208	751	604
Interest expense	$ 2,046	$ 1,981	$ 6,012	$ 5,884

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss) Cumulative translation adjustment	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Cumulative translation adjustment	Total
Beginning Balances at Dec. 31, 2019	$ 7	$ 1,000,763	$ 608	$ (558)	$ (894,998)	$ 608	$ 105,214
Beginning Balances (in shares) at Dec. 31, 2019	70,366,661
Issuance of common stock upon exercise of stock options		4,438					4,438
Issuance of common stock upon exercise of stock options (in shares)	421,850
Issuance of common stock upon vesting of restricted stock units (RSUs) (in shares)	10,000
Stock-based compensation expense		9,945					9,945
Issuance of common stock under the employee stock purchase plan ("ESPP")		2,378					2,378
Issuance of common stock under the employee stock purchase plan ("ESPP") (in shares)	134,099
Taxes paid related to net share settlement of bonus payout in RSUs		(880)					(880)
Taxes paid related to net share settlement of RSUs (in shares)	(49,616)
Net (loss) income					35,572		35,572
Ending Balances at Mar. 31, 2020	$ 7	1,016,644		50	(859,426)		157,275
Ending Balances (in shares) at Mar. 31, 2020	70,882,994
Beginning Balances at Dec. 31, 2019	$ 7	1,000,763	608	(558)	(894,998)	608	105,214
Beginning Balances (in shares) at Dec. 31, 2019	70,366,661
Cumulative translation adjustment							285
Net (loss) income							122,536
Ending Balances at Sep. 30, 2020	$ 7	1,028,441		(255)	(772,462)		255,731
Ending Balances (in shares) at Sep. 30, 2020	72,024,366
Beginning Balances at Mar. 31, 2020	$ 7	1,016,644		50	(859,426)		157,275
Beginning Balances (in shares) at Mar. 31, 2020	70,882,994
Issuance of common stock upon exercise of stock options		3,305					3,305
Issuance of common stock upon exercise of stock options (in shares)	289,241
Stock-based compensation expense		9,686					9,686
Unrealized gain (loss) in marketable securities				12			12
Issuance of common stock under the employee stock purchase plan ("ESPP")		2,557					2,557
Issuance of common stock under the employee stock purchase plan ("ESPP") (in shares)	180,970
Purchase of capped call options related to convertible notes due 2026		(18,170)					(18,170)
Net (loss) income					59,031		59,031
Ending Balances at Jun. 30, 2020	$ 7	1,014,022	(4)	(257)	(800,395)	(4)	213,377
Ending Balances (in shares) at Jun. 30, 2020	71,353,205
Issuance of common stock upon exercise of stock options		4,962					4,962
Issuance of common stock upon exercise of stock options (in shares)	598,577
Issuance of common stock upon vesting of restricted stock units (RSUs) (in shares)	72,584
Stock-based compensation expense		9,457					9,457
Unrealized gain (loss) in marketable securities				6			6
Cumulative translation adjustment							(4)
Net (loss) income					27,933		27,933
Ending Balances at Sep. 30, 2020	$ 7	1,028,441		(255)	(772,462)		255,731
Ending Balances (in shares) at Sep. 30, 2020	72,024,366
Beginning Balances at Dec. 31, 2020	$ 7	1,043,991		(270)	(762,754)		$ 280,974
Beginning Balances (in shares) at Dec. 31, 2020	72,513,348						72,513,348
Issuance of common stock upon exercise of stock options		4,429					$ 4,429
Issuance of common stock upon exercise of stock options (in shares)	451,883
Issuance of common stock upon vesting of restricted stock units (RSUs) (in shares)	252,846
Stock-based compensation expense		16,982					16,982
Unrealized gain (loss) in marketable securities				(37)			(37)
Taxes paid related to net share settlement of bonus payout in RSUs		(1,730)					(1,730)
Taxes paid related to net share settlement of RSUs (in shares)	(95,169)
Net (loss) income					(172,947)		(172,947)
Ending Balances at Mar. 31, 2021	$ 7	1,063,672	(319)	(307)	(935,701)	(319)	127,671
Ending Balances (in shares) at Mar. 31, 2021	73,122,908
Beginning Balances at Dec. 31, 2020	$ 7	1,043,991		(270)	(762,754)		$ 280,974
Beginning Balances (in shares) at Dec. 31, 2020	72,513,348						72,513,348
Cumulative translation adjustment							$ 0
Net (loss) income							(241,375)
Ending Balances at Sep. 30, 2021	$ 7	1,135,155		(273)	(1,004,129)		$ 130,760
Ending Balances (in shares) at Sep. 30, 2021	76,583,279						76,583,279
Beginning Balances at Mar. 31, 2021	$ 7	1,063,672	$ (319)	(307)	(935,701)	$ (319)	$ 127,671
Beginning Balances (in shares) at Mar. 31, 2021	73,122,908
Issuance of common stock upon exercise of stock options		4,009					4,009
Issuance of common stock upon exercise of stock options (in shares)	686,145
Issuance of common stock upon vesting of restricted stock units (RSUs) (in shares)	9,334
Stock-based compensation expense		11,512					11,512
Unrealized gain (loss) in marketable securities				40			40
Issuance of common stock to Shanghai Junshi Biosciences Ltd. ("Junshi Biosciences"), net of issuance costs		40,903					40,903
Issuance of common stock to Shanghai Junshi Biosciences Ltd. ("Junshi Biosciences"), net of issuance costs (in shares)	2,491,988
Issuance of common stock under the employee stock purchase plan ("ESPP")		1,985					1,985
Issuance of common stock under the employee stock purchase plan ("ESPP") (in shares)	154,325
Net (loss) income					(29,900)		(29,900)
Ending Balances at Jun. 30, 2021	$ 7	1,122,081		(267)	(965,601)		156,220
Ending Balances (in shares) at Jun. 30, 2021	76,464,700
Issuance of common stock upon exercise of stock options		1,288					1,288
Issuance of common stock upon exercise of stock options (in shares)	116,246
Issuance of common stock upon vesting of restricted stock units (RSUs) (in shares)	2,333
Stock-based compensation expense		11,786					11,786
Unrealized gain (loss) in marketable securities				(6)			(6)
Net (loss) income					(38,528)		(38,528)
Ending Balances at Sep. 30, 2021	$ 7	$ 1,135,155		$ (273)	$ (1,004,129)		$ 130,760
Ending Balances (in shares) at Sep. 30, 2021	76,583,279						76,583,279

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Taxes
Income tax expense	$ 0	$ 183	$ 0	$ 2,411

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Revenue (Tables)

9 Months Ended

Sep. 30, 2021

Revenue

Revenue by Significant Customer

Revenues by significant customer are as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
McKesson Corporation	40	%	37	%	39	%	38	%
AmeriSource-Bergen Corporation	40	%	39	%	39	%	38	%
Cardinal Health, Inc.	19	%	22	%	20	%	22	%
Others	1	%	2	%	2	%	2	%
Total revenue	100	%	100	%	100	%	100	%

Activities and Ending Reserve Balances for Each Significant Category of Discounts and Allowances

The activities and ending reserve balances for each significant category of discounts and allowances, which constitute variable consideration, were as follows (in thousands):


	Nine Months Ended September 30, 2021
	Chargebacks				Other Fees,
	and Discounts				Co-pay
	for Prompt				Assistance
	Payment		Rebates		and Returns		Total
Balance at December 31, 2020	$	40,580	$	54,058	$	28,760	$	123,398
Provision related to sales made in:
Current period		356,663		90,965		73,289		520,917
Prior period		(2,859)		(2,821)		(3,035)		(8,715)
Payments and customer credits issued		(362,241)		(78,600)		(75,716)		(516,557)
Balance at September 30, 2021	$	32,143	$	63,602	$	23,298	$	119,043


	Nine Months Ended September 30, 2020
	Chargebacks				Other Fees,
	and Discounts				Co-pay
	for Prompt				Assistance
	Payment		Rebates		and Returns		Total
Balance at December 31, 2019	$	35,159	$	27,494	$	24,494	$	87,147
Provision related to sales made in:
Current period		323,070		80,264		85,664		488,998
Prior period		(611)		(2,884)		(6,268)		(9,763)
Payments and customer credits issued		(332,745)		(58,102)		(74,106)		(464,953)
Balance at September 30, 2020	$	24,873	$	46,772	$	29,784	$	101,429

Convertible Notes and Term Loan - Term Loan Future Payments (Details) - Term Loan - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument
Remainder of 2021	$ 1,773
2022	29,294
2023	27,130
2024	24,972
2025	8,780
Total minimum payments	91,949
Less amount representing interest	(13,949)
Term Loan, gross	78,000	$ 78,000
Less debt discount and debt issuance costs on Convertible Notes	(2,768)
Net carrying amount of 2026 Convertible Notes	$ 75,232	$ 74,481

Net (Loss) Income Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Net (Loss) Income Per Share

Computation of Basic and Diluted Net (loss) Income Per Share

The following table sets forth the computation of the basic and diluted net (loss) income per share (in thousands, except share and per share data):


	Three Months Ended				Nine Months Ended
	September 30,					September 30,
	2021		2020		2021		2020
Basic net (loss) income per share
Numerator:
Net (loss) income	$	(38,528)	$	27,933	$	(241,375)	$	122,536
Denominator:
Weighted-average common shares outstanding		79,013,240		71,649,350		74,984,811		71,138,973
Basic net (loss) income per share	$	(0.49)	$	0.39	$	(3.22)	$	1.72

Diluted net (loss) income per share
Numerator:
Net (loss) income	$	(38,528)	$	27,933	$	(241,375)	$	122,536
Add interest expense on 2026 convertible notes, net of tax		—		1,172		—		2,134
Numerator for diluted net (loss) income per share	$	(38,528)	$	29,105	$	(241,375)	$	124,670
Denominator:
Denominator for basic net (loss) income per share		79,013,240		71,649,350		74,984,811		71,138,973
Add effect of potential dilutive securities:
Stock options, including shares subject to ESPP		—		3,641,721		—		3,505,479
Restricted stock units		—		237,114		—		143,146
Shares issuable upon conversion of convertible notes		—		11,942,152		—		7,255,871
Denominator for diluted net (loss) income per share		79,013,240		87,470,337		74,984,811		82,043,469
Diluted net (loss) income per share	$	(0.49)	$	0.33	$	(3.22)	$	1.52

Outstanding Dilutive Potential Shares Excluded from Calculation of Diluted Net (loss) Income Per Share

The following outstanding dilutive potential shares were excluded from the calculation of diluted net (loss) income per share due to their anti-dilutive effect:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2021	2020	2021	2020
Stock options, including shares subject to ESPP	19,543,671	9,397,713	19,847,917	9,269,082
Restricted stock units	1,916,002	—	1,812,799	7,217
Shares issuable upon conversion of 2022 Convertible Notes	4,473,871	4,473,871	4,473,871	4,473,871
Shares issuable upon conversion of 2026 Convertible Notes	11,942,152	—	11,942,152	—
Total	37,875,696	13,871,584	38,076,739	13,750,170

Convertible Notes and Term Loan - 2026 Convertible Notes Components (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Apr. 30, 2020
Debt Instrument
Total 2026 Convertible Notes	$ 223,971	$ 223,029
2026 Convertible Notes \| Senior subordinated notes
Debt Instrument
Principal amount of the Convertible Notes	230,000	230,000	$ 230,000
Unamortized debt discount and debt issuance costs	(6,029)	(6,971)
Total 2026 Convertible Notes	223,971	223,029
Remaining unamortized debt discount and debt offering costs	$ 6,029	$ 6,971

Convertible Notes and Term Loan - Term Loan Components (Details) - Term Loan - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument
Principal amount of the Term Loan	$ 75,000	$ 75,000
Exit fee	3,000	3,000
Term Loan, gross	78,000	78,000
Unamortized debt discount and debt issuance costs	(2,768)	(3,519)
Net carrying amount of 2026 Convertible Notes	$ 75,232	$ 74,481

Commitments and Contingencies - Schedule of Non-Cancellable Purchase Commitment (Details) $ in Thousands	Sep. 30, 2021 USD ($)
Commitments and Contingencies.
Remainder of 2021	$ 16,760
2022	34,606
2023	9,753
2024	3,441
Total obligations	$ 64,560

Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares	Sep. 30, 2021	Dec. 31, 2020
Condensed Consolidated Balance Sheets (unaudited)
Preferred stock, par value	$ 0.0001	$ 0.0001
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	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	76,583,279	72,513,348
Common stock, shares outstanding	76,583,279	72,513,348

Convertible Notes and Term Loan (Tables)

9 Months Ended

Sep. 30, 2021

2026 Convertible Notes

Debt Instrument

Components of Convertible Notes

The following table summarizes components of the 2026 Convertible Notes (in thousands):


	September 30,		December 31,
	2021		2020
Principal amount of the 2026 Convertible Notes	$	230,000	$	230,000
Unamortized debt discount and debt issuance costs		(6,029)		(6,971)
Total 2026 Convertible Notes	$	223,971	$	223,029

Components of Interest Expense

The following table presents the components of interest expense related to 2026 Convertible Notes (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stated coupon interest	$	862	$	863	$	2,587	$	1,572
Accretion of debt discount and debt issuance costs		316		309		942		562
Total interest expense	$	1,178	$	1,172	$	3,529	$	2,134

Schedule of Future Payments on Debt

Future payments on the 2026 Convertible Notes as of September 30, 2021 are as follows (in thousands):


Year ending December 31,
Remainder of 2021	$	1,725
2022		3,450
2023		3,450
2024		3,450
2025 and beyond		235,175
Total minimum payments		247,250
Less amount representing interest		(17,250)
2026 Convertible Notes, principal amount		230,000
Less debt discount and debt issuance costs on 2026 Convertible Notes		(6,029)
Net carrying amount of 2026 Convertible Notes	$	223,971

8.2% Convertible Notes due 2022

Debt Instrument

Components of Convertible Notes

The following table summarizes components of the 2022 Convertible Notes (in thousands):


	September 30,		December 31,
	2021		2020
Principal amount of the 2022 Convertible Notes	$	81,750	$	81,750
Unamortized debt discount and debt issuance costs		(772)		(1,865)
2022 Convertible Notes	$	80,978	$	79,885
Principal amount of the 2022 Convertible Notes - related parties	$	27,250	$	27,250
Unamortized debt discount and debt issuance costs - related parties		(258)		(622)
2022 Convertible Notes - related parties	$	26,992	$	26,628
Total 2022 Convertible Notes	$	107,970	$	106,513

Components of Interest Expense

The following table presents the components of interest expense related to 2022 Convertible Notes (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stated coupon interest	$	1,537	$	1,538	$	4,612	$	4,614
Accretion of debt discount and debt issuance costs		373		340		1,093		996
Interest expense	$	1,910	$	1,878	$	5,705	$	5,610
Stated coupon interest - related parties	$	513	$	512	$	1,538	$	1,536
Accretion of debt discount and debt issuance costs - related parties		124		113		364		331
Interest expense - related parties	$	637	$	625	$	1,902	$	1,867
Total interest expense	$	2,547	$	2,503	$	7,607	$	7,477

Schedule of Future Payments on Debt

Future payments on the 2022 Convertible Notes as of September 30, 2021 are as follows (in thousands):


Year ending December 31,
Remainder of 2021	$	2,050
2022		111,050
Total minimum payments		113,100
Less amount representing interest		(4,100)
2022 Convertible Notes, principal amount		109,000
Less debt discount and debt issuance costs on 2022 Convertible Notes		(1,030)
Net carrying amount of 2022 Convertible Notes	$	107,970

Term Loan

Debt Instrument

Components of Interest Expense

The following table presents the components of interest expense (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stated coupon interest	$	1,773	$	1,773	$	5,261	$	5,280
Accretion of debt discount and debt issuance costs		273		208		751		604
Interest expense	$	2,046	$	1,981	$	6,012	$	5,884

Schedule of Future Payments on Debt

Future payments on the Term Loan as of September 30, 2021 are as follows (in thousands):


Year ending December 31,
Remainder of 2021	$	1,773
2022		29,294
2023		27,130
2024		24,972
2025		8,780
Total minimum payments		91,949
Less amount representing interest		(13,949)
Term Loan, gross		78,000
Less unamortized exit fee, debt discount and debt issuance costs, net		(2,768)
Net carrying amount of Term Loan	$	75,232

Components of Term Loan

The following table summarizes information about the components of the Term Loan (in thousands):


	September 30,		December 31,
	2021		2020
Principal amount of the Term Loan	$	75,000	$	75,000
Exit fee due on payment of Term Loan		3,000		3,000
Term Loan, gross		78,000		78,000
Unamortized exit fee, debt discount and debt issuance costs, net		(2,768)		(3,519)
Net carrying amount of Term Loan	$	75,232	$	74,481

Inventory (Tables)

9 Months Ended

Sep. 30, 2021

Inventory

Schedule of Inventory

Inventory consisted of the following (in thousands):


	September 30,		December 31,
	2021		2020
Raw Materials	$	5,617	$	5,205
Work in process		46,625		43,952
Finished goods		31,698		43,032
Total	$	83,940	$	92,189

Schedule of Balance Sheet Classification

The following tables presents the inventory balance sheet classifications (in thousands):


	September 30,		December 31,
	2021		2020
Inventory	$	37,583	$	44,233
Inventory, non-current		46,357		47,956
Total	$	83,940	$	92,189

Convertible Notes and Term Loan - Capped Call Transactions (Details) $ / shares in Units, $ in Millions		9 Months Ended
	Apr. 14, 2020 $ / shares	Sep. 30, 2021 USD ($) item $ / shares
Senior subordinated notes \| 2026 Convertible Notes
Option Indexed to Issuer's Equity [Line Items]
Closing stock, price per share		$ 16.07
Capped Call Transactions in connection with the 2026 Convertible Notes
Option Indexed to Issuer's Equity [Line Items]
Payment for capped call transactions \| $		$ 18.2
Number of initial purchasers \| item		1
Initial cap price of capped call transactions.	$ 25.9263
Percentage of cap price	75.0
Closing stock, price per share	$ 14.815
Reduction in additional paid-in-capital from capped call premium paid \| $		$ 18.2

Revenue - Revenue by Significant Customer (Details) - Net Product Revenue - Customer Concentration Risk	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Concentration Risk
Percentage of total revenue	100.00%	100.00%	100.00%	100.00%
McKesson
Concentration Risk
Percentage of total revenue	40.00%	37.00%	39.00%	38.00%
AmeriSource-Bergen Corp
Concentration Risk
Percentage of total revenue	40.00%	39.00%	39.00%	38.00%
Cardinal
Concentration Risk
Percentage of total revenue	19.00%	22.00%	20.00%	22.00%
Others
Concentration Risk
Percentage of total revenue	1.00%	2.00%	2.00%	2.00%

Balance Sheet Components - Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Balance Sheet Components
Accrued clinical and manufacturing	$ 21,093	$ 11,365
Accrued co-development costs for toripalimab	11,239
Accrued other	9,870	12,182
Lease liabilities, current	3,624	3,132
Total Accrued and other current liabilities	$ 45,826	$ 26,679

Inventory

9 Months Ended

Sep. 30, 2021

Inventory

Inventory

3. Inventory

Inventory consisted of the following (in thousands):


	September 30,		December 31,
	2021		2020
Raw Materials	$	5,617	$	5,205
Work in process		46,625		43,952
Finished goods		31,698		43,032
Total	$	83,940	$	92,189

Inventory expected to be sold more than twelve months from the balance sheet date is classified as inventory, non-current on the condensed consolidated balance sheets. As of September 30, 2021 and December 31, 2020, the non-current portion of inventory consisted of raw materials, work in process and a portion of finished goods. The following tables presents the inventory balance sheet classifications (in thousands):


	September 30,		December 31,
	2021		2020
Inventory	$	37,583	$	44,233
Inventory, non-current		46,357		47,956
Total	$	83,940	$	92,189

During the third quarter of 2021, the Company wrote-off $5.2 million of inventory that did not meet the Company’s acceptance criteria.

Prepaid manufacturing of $20.4 million as of September 30, 2021 includes prepayments of $11.6 million to a contract manufacturing organization (“CMO”) for manufacturing services for UDENYCA®, which the Company expects to be converted into inventory within the next twelve months; and prepayments of $8.8 million to various CMOs for other research and development pipeline programs. Prepaid manufacturing of $19.4 million as of December 31, 2020 included prepayments of $8.9 million to a CMO for manufacturing services for UDENYCA®; and prepayments of $10.5 million to various CMOs for other research and development pipeline programs.

In February 2021, the Company announced the discontinuation of the development of CHS-2020, a biosimilar of Eylea® as part of a realignment of research and development resources toward other development programs. As part of the discontinuation, the Company wrote-off prepaid manufacturing services not deemed to have any probable future benefits resulting in the recognition of an impairment charge of $3.2 million within research and development expenses on the Company’s first quarter condensed consolidated statement of operations. Also during the first quarter of 2021, the Company recognized an expense of $8.3 million within research and development expenses on its condensed consolidated statement of operations in connection with the cancellation of open purchase orders with various vendors related to CHS-2020 development. No additional expense relating to the discontinuation of CHS-2020 was recognized in the second or third quarter of 2021.

Net (Loss) Income Per Share - Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net (loss) income	$ (38,528)	$ (29,900)	$ (172,947)	$ 27,933	$ 59,031	$ 35,572	$ (241,375)	$ 122,536
Denominator:
Weighted-average common shares outstanding	79,013,240			71,649,350			74,984,811	71,138,973
Basic net (loss) income per share	$ (0.49)			$ 0.39			$ (3.22)	$ 1.72
Numerator:
Net (loss) income	$ (38,528)	$ (29,900)	$ (172,947)	$ 27,933	$ 59,031	$ 35,572	$ (241,375)	$ 122,536
Add interest expense on 2026 convertible notes, net of tax				1,172				2,134
Numerator for diluted net (loss) income per share	$ (38,528)			$ 29,105			$ (241,375)	$ 124,670
Denominator:
Denominator for basic net (loss) income per share	79,013,240			71,649,350			74,984,811	71,138,973
Add effect of potential dilutive securities:
Stock options, including shares subject to ESPP				3,641,721				3,505,479
Restricted stock units				237,114				143,146
Shares issuable upon conversion of convertible notes				11,942,152				7,255,871
Denominator for diluted net (loss) income per share	79,013,240			87,470,337			74,984,811	82,043,469
Diluted net (loss) income per share	$ (0.49)			$ 0.33			$ (3.22)	$ 1.52

Net (Loss) Income Per Share

9 Months Ended

Sep. 30, 2021

Net (Loss) Income Per Share

Net (Loss) Income Per Share

10. Net (Loss) Income Per Share

Basic net (loss) income per share is calculated by dividing the net (loss) income by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive common shares. Diluted net income per share is computed by dividing the net income by the weighted-average number of common shares outstanding for the period plus any potential dilutive common shares outstanding for the period determined using the treasury stock method for options, RSUs and ESPP and using the if-converted method for the convertible notes. Diluted net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the period, without consideration for any potential dilutive common share equivalents as their effect would be antidilutive.

The following table sets forth the computation of the basic and diluted net (loss) income per share (in thousands, except share and per share data):


	Three Months Ended				Nine Months Ended
	September 30,					September 30,
	2021		2020		2021		2020
Basic net (loss) income per share
Numerator:
Net (loss) income	$	(38,528)	$	27,933	$	(241,375)	$	122,536
Denominator:
Weighted-average common shares outstanding		79,013,240		71,649,350		74,984,811		71,138,973
Basic net (loss) income per share	$	(0.49)	$	0.39	$	(3.22)	$	1.72

Diluted net (loss) income per share
Numerator:
Net (loss) income	$	(38,528)	$	27,933	$	(241,375)	$	122,536
Add interest expense on 2026 convertible notes, net of tax		—		1,172		—		2,134
Numerator for diluted net (loss) income per share	$	(38,528)	$	29,105	$	(241,375)	$	124,670
Denominator:
Denominator for basic net (loss) income per share		79,013,240		71,649,350		74,984,811		71,138,973
Add effect of potential dilutive securities:
Stock options, including shares subject to ESPP		—		3,641,721		—		3,505,479
Restricted stock units		—		237,114		—		143,146
Shares issuable upon conversion of convertible notes		—		11,942,152		—		7,255,871
Denominator for diluted net (loss) income per share		79,013,240		87,470,337		74,984,811		82,043,469
Diluted net (loss) income per share	$	(0.49)	$	0.33	$	(3.22)	$	1.52

The following outstanding dilutive potential shares were excluded from the calculation of diluted net (loss) income per share due to their anti-dilutive effect:


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2021	2020	2021	2020
Stock options, including shares subject to ESPP	19,543,671	9,397,713	19,847,917	9,269,082
Restricted stock units	1,916,002	—	1,812,799	7,217
Shares issuable upon conversion of 2022 Convertible Notes	4,473,871	4,473,871	4,473,871	4,473,871
Shares issuable upon conversion of 2026 Convertible Notes	11,942,152	—	11,942,152	—
Total	37,875,696	13,871,584	38,076,739	13,750,170

Stock-Based Compensation - Stock-Based Compensation (Details) - Employees and Nonemployees Stock Option and Restricted Stock Units - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Employee Service Share Based Compensation Allocation Of Recognized Period Costs
Stock-based compensation expense	$ 11,939	$ 9,308	$ 40,418	$ 28,287
Capitalized stock-based compensation expense into inventory	241	324	758	1,196
Cost of Goods Sold
Employee Service Share Based Compensation Allocation Of Recognized Period Costs
Stock-based compensation expense	394	175	896	396
Research and Development Expense.
Employee Service Share Based Compensation Allocation Of Recognized Period Costs
Stock-based compensation expense	4,126	3,231	14,642	10,315
Selling, General and Administrative Expenses
Employee Service Share Based Compensation Allocation Of Recognized Period Costs
Stock-based compensation expense	$ 7,419	$ 5,902	$ 24,880	$ 17,576

Convertible Notes and Term Loan - 2022 Convertible Notes Interest Expense Components (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument
Accretion of debt discount and debt issuance costs			$ 3,150	$ 2,492
Total interest expense	$ 5,771	$ 5,656	17,166	15,495
8.2% Convertible Notes due 2022 \| Senior unsubordinated notes
Debt Instrument
Stated coupon interest	1,537	1,538	4,612	4,614
Accretion of debt discount and debt issuance costs	373	340	1,093	996
Interest expense	1,910	1,878	5,705	5,610
Total interest expense	2,547	2,503	7,607	7,477
KKR Biosimilar L.P., MX II Associates LLC, and KMG Capital Partners, LLC \| 8.2% Convertible Notes due 2022 \| Senior unsubordinated notes
Debt Instrument
Stated coupon interest	513	512	1,538	1,536
Accretion of debt discount and debt issuance costs	124	113	364	331
Interest expense	$ 637	$ 625	$ 1,902	$ 1,867

Related Party Transactions

9 Months Ended

Sep. 30, 2021

Related Party Transactions

Related Party Transactions

12. Related Party Transactions

Convertible Notes

In February 2016, the Company issued Convertible Notes to certain related parties (certain companies affiliated with members of the Company’s board of directors) for an aggregate principal amount of $25.0 million (see Note 7).

Consulting services

In October 2020, the Company entered into a consulting agreement with Lanfear Advisors owned by Mr. Jonathan Lanfear who is the brother of Dennis Lanfear, the Company’s President, Chief Executive Officer and Chairman of the Board of Directors. Mr. Jonathan Lanfear provided consulting services with respect to the Collaboration Agreement executed with Junshi Biosciences in February 2021 (See Note 6). In addition to the hourly consulting fee paid to Lanfear Advisors under the consulting agreement, the Company granted fully vested stock options to purchase 65,000 shares of common stock with an exercise price of $17.60 per share to Mr. Jonathan Lanfear in February 2021 upon the execution of the Collaboration Agreement with Junshi Biosciences. During the first quarter of 2021, the Company recognized stock-based compensation expense of $0.8 million. In addition, the Company recorded cash consulting expense of $0.0 million and $0.2 million for the three and nine months ended September 30, 2021, respectively, with respect to these consulting services. Total liabilities recognized in accounts payable and accrued and other current liabilities on the condensed consolidated balance sheets with respect to these services were $0.0 million and $0.3 million as of September 30, 2021 and December 31, 2020, respectively.

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Condensed Consolidated Statements of Operations (unaudited)
Interest expense from transactions with related party	$ 637	$ 625	$ 1,902	$ 1,867

Balance Sheet Components (Tables)

9 Months Ended

Sep. 30, 2021

Organization and Operations

Schedule of Property and Equipment, Net

Property and equipment, net are as follows (in thousands):


	September 30,		December 31,
	2021		2020
Machinery and equipment	$	13,963	$	13,301
Computer equipment and software		4,032		3,996
Furniture and fixtures		1,274		1,268
Leasehold improvements		5,942		5,830
Finance lease right of use assets		2,294		1,451
Construction in progress		42		312
Total property and equipment		27,547		26,158
Accumulated depreciation and amortization		(19,042)		(16,050)
Property and equipment, net	$	8,505	$	10,108

Schedule of Accrued Liabilities

Accrued and other current liabilities are summarized as follows (in thousands):


	September 30,		December 31,
	2021		2020
Accrued clinical and manufacturing	$	21,093	$	11,365
Accrued co-development costs for toripalimab		11,239		—
Accrued other		9,870		12,182
Lease liabilities, current		3,624		3,132
Total Accrued and other current liabilities	$	45,826	$	26,679

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2021	Nov. 05, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Entity File Number	001-36721
Entity Registrant Name	Coherus BioSciences, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-3615821
Entity Address, Address Line One	333 Twin Dolphin Drive
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Redwood City
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94065
City Area Code	650
Local Phone Number	649-3530
Title of 12(b) Security	Common Stock, $0.0001 par value per share
Trading Symbol	CHRS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		76,785,431
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001512762
Amendment Flag	false

Stock-Based Compensation

9 Months Ended

Sep. 30, 2021

Stock-Based Compensation

Stock-Based Compensation

9. Stock-Based Compensation


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Cost of goods sold ⁽¹⁾	$	394	$	175	$	896	$	396
Research and development		4,126		3,231		14,642		10,315
Selling, general and administrative		7,419		5,902		24,880		17,576
Stock-based compensation expense	$	11,939	$	9,308	$	40,418	$	28,287

Capitalized stock-based compensation expense into inventory	$	241	$	324	$	758	$	1,196

(1) Stock-based compensation capitalized into inventory is recognized as cost of goods sold when the related product is sold.

Income Taxes

9 Months Ended

Sep. 30, 2021

Income Taxes

Income Taxes

11. Income Taxes

There was no income tax expense for the three and nine months ended September 30, 2021 due to a projected tax loss for 2021 and the tax effect of the valuation allowance against such loss for the year. Income tax expense of $0.2 million and $2.4 million for the three and nine months ended September 30, 2020, respectively, primarily related to state taxes in jurisdictions outside of California, for which the Company has a limited operating history. The income tax provision during the interim periods is based on applying an estimated annual effective income tax rate to year-to-date income, plus any significant unusual or infrequently occurring items, which are recorded in the interim period. The Company maintains a full valuation allowance against its net deferred tax assets due to its history of losses.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Operating activities
Net (loss) income	$ (241,375)	$ 122,536
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization	2,618	2,048
Stock-based compensation expense	40,418	28,287
Write-off of prepaid manufacturing services related to the termination of CHS-2020	3,210
Write-off of inventory that did not meet acceptance criteria	5,192
Non-cash accretion of discount on marketable securities	909	(103)
Non-cash interest expense from amortization of debt discount	3,150	2,492
Non-cash operating lease expense	1,618	1,567
Upfront license fee payment to Junshi Biosciences	136,000
Upfront and milestone based license fee payments to Innovent		7,500
Other non-cash adjustments	181	422
Changes in operating assets and liabilities:
Trade receivables, net	20,722	(18,885)
Inventory	2,936	(30,053)
Prepaid manufacturing	(2,884)	(13,350)
Other prepaid, current and non-current assets	(4,590)	(785)
Accounts payable	30,495	(13,108)
Accrued rebates, fees and reserves	3,215	24,841
Accrued compensation	(3,451)	1,380
Accrued and other current and non-current liabilities	16,526	6,232
Net cash provided by operating activities	14,890	121,021
Investing activities
Purchases of property and equipment	(821)	(6,279)
Proceeds from disposal of property and equipment		167
Purchases of investments in marketable securities	(171,779)	(273,845)
Proceeds from maturities of investments in marketable securities	62,700	63,000
Upfront license fee payment to Junshi Biosciences	(136,000)
Upfront and milestone based license fee payments to Innovent		(7,500)
Net cash used in investing activities	(245,900)	(224,457)
Financing activities
Proceeds from issuance of Convertible Notes due 2026, net of issuance costs		222,156
Purchase of capped call options related to Convertible Notes due 2026		(18,170)
Proceeds from issuance of common stock to Junshi Biosciences, net of issuance costs	40,903
Proceeds from issuance of common stock upon exercise of stock options	9,726	13,014
Proceeds from purchase under the employee stock purchase plan	1,985	2,557
Taxes paid related to net share settlement of RSUs	(1,730)	(880)
Other immaterial financing activities	(492)	(244)
Net cash provided by financing activities	50,392	218,433
Net (decrease) increase in cash, cash equivalents and restricted cash	(180,618)	114,997
Cash, cash equivalents and restricted cash at beginning of period	541,598	177,908
Cash, cash equivalents and restricted cash at end of period	360,980	292,905
Supplemental disclosure of cash flow information
Non-cash bonus payment settled in common stock		1,498
Right-of-use assets obtained in exchange for lease obligations related to operating leases	434	1,388
Right-of-use assets obtained in exchange for lease obligations related to finance leases	$ 477	$ 1,771

Fair Value Measurements - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Apr. 30, 2020	Apr. 13, 2020	Jan. 07, 2019	Feb. 29, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Average maturity of investments in available-for-sale marketable securities			11 months
Credit losses recognized	$ 0	$ 0	$ 0	$ 0
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	0		0		$ 0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0		0		0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount	0		0		0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount	0		0		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net			0		0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net			0		0
8.2% Convertible Notes due 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Convertible notes, interest rate									8.20%
Principal amount outstanding	107,970,000		107,970,000
Term Loan
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Aggregate principal amount	75,000,000		75,000,000		75,000,000
Principal amount outstanding	75,232,000		75,232,000		74,481,000
Maximum \| Term Loan
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Aggregate principal amount							$ 230,000,000.0
Affiliates of Healthcare Royalty Partners (together, the "Lender") \| Term Loan
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Aggregate principal amount								$ 75,000,000.0
Senior subordinated notes \| 2026 Convertible Notes
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Convertible notes, interest rate						1.50%
Debt instrument fair value	255,200,000		255,200,000		269,100,000
Aggregate principal amount	230,000,000		230,000,000		230,000,000	$ 230,000,000.0
Principal amount outstanding	223,971,000		223,971,000
Senior unsubordinated notes \| 8.2% Convertible Notes due 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Convertible notes, interest rate									8.20%
Aggregate principal amount	81,750,000		81,750,000		81,750,000				$ 100,000,000.0
Senior unsubordinated notes \| Level 3 \| 8.2% Convertible Notes due 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Debt instrument fair value	108,600,000		108,600,000		$ 113,700,000
Aggregate principal amount	100,000,000.0		100,000,000.0
Senior unsubordinated notes \| Affiliates of Healthcare Royalty Partners (together, the "Lender") \| 8.2% Convertible Notes due 2022
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Aggregate principal amount									$ 75,000,000.0
Senior unsubordinated notes \| Affiliates of Healthcare Royalty Partners (together, the "Lender") \| Term Loan
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Aggregate principal amount	$ 75,000,000		$ 75,000,000

Collaborations and Other Arrangements

9 Months Ended

Sep. 30, 2021

Collaborations and Other Arrangements

Collaborations and Other Arrangements

6. Collaborations and Other Arrangements

Junshi Biosciences

On February 1, 2021, the Company entered into an Exclusive License and Commercialization Agreement (the “Collaboration Agreement”) with Junshi Biosciences for the co-development and commercialization of toripalimab, Junshi Biosciences’ anti-PD-1 antibody, in the United States and Canada.

Under the terms of the Collaboration Agreement, the Company paid $150.0 million upfront for exclusive rights to toripalimab in the United States and Canada, options in these territories to Junshi Biosciences’ anti-TIGIT antibody and next-generation engineered IL-2 cytokine, and certain negotiation rights to two undisclosed preclinical immuno-oncology drug candidates. The Company will have the right to conduct all commercial activities of toripalimab in the United States and Canada. The Company will be obligated to pay Junshi Biosciences a 20% royalty on net sales of toripalimab and up to an aggregate $380.0 million in one-time payments for the achievement of various regulatory and sales milestones. If the Company exercises its options, it will be obligated to pay an option exercise fee for each of the anti-TIGIT antibody and the IL-2 cytokine of $35.0 million per program. Additionally, for each exercised option, the Company will be obligated to pay Junshi Biosciences an 18% royalty on net sales and up to an aggregate $255.0 million for the achievement of various regulatory and sales milestones. Under the Collaboration Agreement, the Company retains the right to collaborate in the development of toripalimab and the other licensed compounds and will pay for a portion of these co-

development activities up to a maximum of $25.0 million per licensed compound per year. Additionally, the Company is responsible for certain associated regulatory and technology transfer costs for toripalimab and other licensed compounds and will reimburse Junshi Biosciences for such costs. The Company recognized research and development expense of $15.4 million and $37.6 million in the condensed consolidated statement of operations for the three and nine months ended September 30, 2021, respectively, and recognized $19.7 million in accounts payable and $11.2 million in accrued and other current liabilities on the condensed consolidated balance sheet as of September 30, 2021 related to the co-development, regulatory and technology transfer costs. The Company accounted for the licensing transaction as an asset acquisition under the relevant accounting rules. In addition, the Company recorded research and development expense of $145.0 million during the first quarter of 2021, related to the upfront payment for exclusive rights to toripalimab in the United States and Canada. The Company had entered into a Right of First Negotiation agreement with Junshi Biosciences and paid a fee of $5.0 million which was fully expensed as research and development expense in the fourth quarter of 2020. The Right of First Negotiation fee was fully credited against the total upfront license fee obligation under the Collaboration Agreement. As of September 30, 2021, the Company did not have any outstanding milestone or royalty payment obligations to Junshi Biosciences.

The additional milestone payments, option fees for additional anti-TIGIT antibodies and the IL-2 cytokines and royalties are contingent upon future events and, therefore, will be recorded when it is probable that a milestone will be achieved, option fees will be incurred or when royalties are due.

In connection with the Collaboration Agreement, the Company entered into a stock purchase agreement (the “Stock Purchase Agreement”) with Junshi Biosciences agreeing, subject to customary conditions, to acquire certain equity interests in the Company. Pursuant to the Stock Purchase Agreement, on April 16, 2021, the Company issued 2,491,988 unregistered shares of its common stock to Junshi Biosciences, at a price per share of $20.0643, for an aggregate value of approximately $50.0 million cash. Under the terms of the Stock Purchase Agreement, Junshi Biosciences is not permitted to sell, transfer, make any short sale of, or grant any option for the sale of the common stock for the two-year period following its effective date. The Collaboration Agreement and the Stock Purchase Agreement were negotiated concurrently and were therefore evaluated as a single agreement. The Company used the “Finnerty” and “Asian put” valuation models and determined the fair value for the discount for lack of marketability (“DLOM”) was $9.0 million at the date the shares were issued. The fair value of the DLOM was attributable to the Collaboration Agreement and was included as an offset against the research and development expense in the condensed consolidated statement of operations for the nine months ending September 30, 2021.

Innovent Biologics (Suzhou) Co., Ltd.

On January 13, 2020, the Company entered into a license agreement (the “License Agreement”) with Innovent Biologics (Suzhou) Co., Ltd. (“Innovent”) for the development and commercialization of a biosimilar version of bevacizumab (Avastin®) in any dosage form and presentations (“bevacizumab Licensed Product”) in the United States and Canada (the “Territory”). Under the License Agreement, Innovent granted to the Company an exclusive, royalty-bearing license to develop and commercialize the bevacizumab Licensed Product in the field of treatment, prevention or amelioration of any human diseases and conditions as included in the label of Avastin®. Under the License Agreement, the Company also acquired an option to develop and commercialize Innovent’s biosimilar version of rituximab (Rituxan®) in any dosage form and presentations (the “rituximab Licensed Product” and together with the bevacizumab Licensed Product, the “Innovent Licensed Products”) in the Territory. Subject to the terms of the License Agreement, the Company may exercise its option within 12 months of its receipt of certain regulatory materials from Innovent. Following the Company’s option exercise, Innovent’s biosimilar version of rituximab would be deemed an Innovent Licensed Product for all purposes of the License Agreement and Innovent would grant to the Company an exclusive, royalty-bearing license to develop and commercialize Innovent’s biosimilar version of rituximab in the field of treatment, prevention or amelioration of any human diseases and conditions as included in the label of Rituxan®.

Innovent will supply the Innovent Licensed Products to the Company in accordance with a manufacturing and supply agreement to be executed by the parties. Under the License Agreement, the Company acquired the right to require Innovent to perform technology transfer for the manufacturing of the Innovent Licensed Products in the Territory

and, upon completion of such technology transfer, the Company will have the exclusive right to manufacture the Innovent Licensed Products in the Territory.

Under the License Agreement, the Company committed to pay Innovent a $5.0 million upfront payment and an aggregate of up to $40.0 million in milestone payments in connection with the achievement of certain development, regulatory and sales milestones with respect to the bevacizumab Licensed Product and, if the Company’s option is exercised, an aggregate of up to $40.0 million in milestone payments in connection with the achievement of certain development, regulatory and sales milestones with respect to the rituximab Licensed Product. The Company will share a percentage of net sales of Innovent Licensed Products with Innovent in the mid-teens to low twenty percent range. If the Company exercises its option to acquire Innovent’s biosimilar version of rituximab (Rituxan®), it would be required to pay a fee of $5.0 million. Subject to the terms of the License Agreement, if the Company requests Innovent to perform technology transfer for the manufacturing of the Innovent Licensed Products, it would be required to pay up to $10.0 million for fees related thereto. The Company accounted for the licensing transaction as an asset acquisition under the relevant accounting rules. The Company recorded research and development expense of $2.5 million and $7.5 million during the three and nine months ended September 30, 2020, respectively, related to an upfront payment and a milestone payment for the bevacizumab Licensed Product. During the three and nine months ended September 30, 2021, the Company recognized research and development expense of $0.5 million and $1.2 million, respectively, related to bevacizumab Licensed Product development activities directly with Innovent. As of September 30, 2021, the Company did not have any outstanding milestone or royalty payment obligations to Innovent.

The additional milestone payments, option fee for licensing of rituximab (Rituxan®), manufacturing technology transfer fee and royalties are contingent upon future events and, therefore, will be recorded when such payments become probable.

Balance Sheet Components

9 Months Ended

Sep. 30, 2021

Balance Sheet Components

Balance Sheet Components

4. Balance Sheet Components

Property and Equipment, Net

Property and equipment, net are as follows (in thousands):


	September 30,		December 31,
	2021		2020
Machinery and equipment	$	13,963	$	13,301
Computer equipment and software		4,032		3,996
Furniture and fixtures		1,274		1,268
Leasehold improvements		5,942		5,830
Finance lease right of use assets		2,294		1,451
Construction in progress		42		312
Total property and equipment		27,547		26,158
Accumulated depreciation and amortization		(19,042)		(16,050)
Property and equipment, net	$	8,505	$	10,108

Depreciation and amortization expense was $0.9 million and $2.6 million for the three and nine months ended September 30, 2021, respectively, and $0.7 million and $2.0 million for the three and nine months ended September 30, 2020, respectively.

Accrued and Other Current Liabilities

Accrued and other current liabilities are summarized as follows (in thousands):


	September 30,		December 31,
	2021		2020
Accrued clinical and manufacturing	$	21,093	$	11,365
Accrued co-development costs for toripalimab		11,239		—
Accrued other		9,870		12,182
Lease liabilities, current		3,624		3,132
Total Accrued and other current liabilities	$	45,826	$	26,679

Revenue

9 Months Ended

Sep. 30, 2021

Revenue

Revenue

5. Revenue

The Company recorded net product revenue of $82.5 million and $253.2 million during the three and nine months ended September 30, 2021, respectively, and $113.6 million and $365.4 million during the three and nine months ended September 30, 2020, respectively.

Revenues by significant customer are as follows:


	Three Months Ended				Nine Months Ended
	September 30, 2021		September 30, 2020		September 30, 2021		September 30, 2020
McKesson Corporation	40	%	37	%	39	%	38	%
AmeriSource-Bergen Corporation	40	%	39	%	39	%	38	%
Cardinal Health, Inc.	19	%	22	%	20	%	22	%
Others	1	%	2	%	2	%	2	%
Total revenue	100	%	100	%	100	%	100	%

Product Sales Discounts and Allowances

The activities and ending reserve balances for each significant category of discounts and allowances, which constitute variable consideration, were as follows (in thousands):


	Nine Months Ended September 30, 2021
	Chargebacks				Other Fees,
	and Discounts				Co-pay
	for Prompt				Assistance
	Payment		Rebates		and Returns		Total
Balance at December 31, 2020	$	40,580	$	54,058	$	28,760	$	123,398
Provision related to sales made in:
Current period		356,663		90,965		73,289		520,917
Prior period		(2,859)		(2,821)		(3,035)		(8,715)
Payments and customer credits issued		(362,241)		(78,600)		(75,716)		(516,557)
Balance at September 30, 2021	$	32,143	$	63,602	$	23,298	$	119,043


	Nine Months Ended September 30, 2020
	Chargebacks				Other Fees,
	and Discounts				Co-pay
	for Prompt				Assistance
	Payment		Rebates		and Returns		Total
Balance at December 31, 2019	$	35,159	$	27,494	$	24,494	$	87,147
Provision related to sales made in:
Current period		323,070		80,264		85,664		488,998
Prior period		(611)		(2,884)		(6,268)		(9,763)
Payments and customer credits issued		(332,745)		(58,102)		(74,106)		(464,953)
Balance at September 30, 2020	$	24,873	$	46,772	$	29,784	$	101,429

Government and other chargebacks payable to the Company’s direct customers and discounts for prompt payment are recorded as a reduction in trade receivables. The remaining reserve balances are classified as current liabilities in the unaudited condensed consolidated balance sheets.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Convertible Notes and Term Loan - 8.2% Convertible Notes due 2022 (Details)		1 Months Ended	9 Months Ended
	Feb. 29, 2016 USD ($) $ / shares shares	Apr. 30, 2020 $ / shares	Sep. 30, 2021 USD ($) item $ / shares	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($)
Debt Instrument
Proceeds from issuance of Convertible Notes due 2026, net of issuance costs				$ 222,156,000
Conversion price per common share \| $ / shares		$ 14.815
8.2% Convertible Notes due 2022
Debt Instrument
Convertible notes, interest rate	8.20%
Debt instrument maturity date	Mar. 31, 2022
Common shares at conversion \| shares	44.7387
Conversion price per common share \| $ / shares	$ 22.35
Initial conversion price, percentage premium over average last reported sale price of common stock	60
Remaining unamortized debt discount and debt offering costs			$ 1,030,000
Amortized effective interest rate convertible notes period			6 months
Senior unsubordinated notes \| 8.2% Convertible Notes due 2022
Debt Instrument
Aggregate principal amount	$ 100,000,000.0		$ 81,750,000		$ 81,750,000
Convertible notes, interest rate	8.20%
Interest rate description			The 2022 Convertible Notes bear interest at a fixed coupon rate of 8.2% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, since March 31, 2016
Debt instrument maturity date	Mar. 31, 2022
Convertible notes, premium percentage	9.00%
Percentage of applicable conversion price	160.00%
Convertible trading days	20
Consecutive trading days	30
Percentage to pay in cash of the par value of notes	109.00%
Convertible notes, covenant compliance			The 2022 Convertible Notes contain customary negative covenants and events of default, the occurrence of which could result in the acceleration of all amounts due under the 2022 Convertible Note. As of September 30, 2021, the Company was in full compliance with these covenants and there were no events of default under the 2022 Convertible Notes.
Number of events in default \| item			0
Remaining unamortized debt discount and debt offering costs			$ 772,000		$ 1,865,000
Remaining debt discount and debt offering costs			$ 1,000,000.0
Effective interest rate			9.48%
Senior unsubordinated notes \| 8.2% Convertible Notes due 2022 \| KKR Member
Debt Instrument
Aggregate principal amount	$ 20,000,000.0
Senior unsubordinated notes \| 8.2% Convertible Notes due 2022 \| MX II Member
Debt Instrument
Aggregate principal amount	4,000,000.0
Senior unsubordinated notes \| 8.2% Convertible Notes due 2022 \| KMGCP Member
Debt Instrument
Aggregate principal amount	1,000,000.0
Senior unsubordinated notes \| 8.2% Convertible Notes due 2022 \| Affiliates of Healthcare Royalty Partners (together, the "Lender")
Debt Instrument
Aggregate principal amount	$ 75,000,000.0
Scenario, Plan \| Senior unsubordinated notes \| 8.2% Convertible Notes due 2022
Debt Instrument
Convertible notes, converted amount			$ 71,900,000
Closing stock, price per share \| $ / shares			$ 16.07

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Net product revenue	$ 82,503	$ 113,551	$ 253,180	$ 365,405
Revenue from Contract with Customer, Product and Service [Extensible List]	usgaap:ProductMember	usgaap:ProductMember	usgaap:ProductMember	usgaap:ProductMember
Cost and expenses:
Cost of goods sold	$ 21,280	$ 9,000	$ 45,487	$ 25,994
Research and development	54,085	38,851	312,343	98,131
Selling, general and administrative	39,925	31,984	119,661	101,386
Total cost and expenses	115,290	79,835	477,491	225,511
(Loss) income from operations	(32,787)	33,716	(224,311)	139,894
Interest expense (includes related party expense of $637 and $625 for the three months ended September 30, 2021 and 2020, respectively; and $1,902 and $1,867 for the nine months ended September 30, 2021 and 2020, respectively)	(5,771)	(5,656)	(17,166)	(15,495)
Other income, net	30	56	102	548
Net (loss) income before income taxes	(38,528)	28,116	(241,375)	124,947
Income tax provision	0	183	0	2,411
Net (loss) income	$ (38,528)	$ 27,933	$ (241,375)	$ 122,536
Net (loss) income per share:
Basic	$ (0.49)	$ 0.39	$ (3.22)	$ 1.72
Diluted	$ (0.49)	$ 0.33	$ (3.22)	$ 1.52
Weighted-average number of shares used in computing net (loss) income per share:
Basic	79,013,240	71,649,350	74,984,811	71,138,973
Diluted	79,013,240	87,470,337	74,984,811	82,043,469
Net Product Revenue.
Revenue:
Net product revenue	$ 82,500	$ 113,600	$ 253,200	$ 365,400

Net (Loss) Income Per Share - Outstanding Dilutive Potential Shares Excluded from Calculation of Diluted Net Income Per Share (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Antidilutive securities excluded from computation of EPS
Antidilutive securities excluded from the calculation of diluted net income per share	37,875,696	13,871,584	38,076,739	13,750,170
Stock options, including shares subject to ESPP
Antidilutive securities excluded from computation of EPS
Antidilutive securities excluded from the calculation of diluted net income per share	19,543,671	9,397,713	19,847,917	9,269,082
Restricted stock units
Antidilutive securities excluded from computation of EPS
Antidilutive securities excluded from the calculation of diluted net income per share	1,916,002		1,812,799	7,217
2022 Convertible Notes
Antidilutive securities excluded from computation of EPS
Antidilutive securities excluded from the calculation of diluted net income per share	4,473,871	4,473,871	4,473,871	4,473,871
2026 Convertible Notes
Antidilutive securities excluded from computation of EPS
Antidilutive securities excluded from the calculation of diluted net income per share	11,942,152		11,942,152

Organization and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020	Sep. 30, 2020
Organization and Summary of Significant Accounting Policies
Cash and cash equivalents at beginning of period	$ 541,158	$ 292,465	$ 177,668
Restricted cash - non-current at beginning of period	440	440	240
Cash, cash equivalents and restricted cash at beginning of period	541,598	292,905	177,908
Cash and cash equivalents at end of period	360,540	541,158	292,465
Restricted cash - non-current at end of period	440	440	440
Total cash, cash equivalents and restricted cash	$ 541,598	$ 292,905	$ 292,905

Organization and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2021

Organization and Summary of Significant Accounting Policies

Use of Estimates

Cash, Cash Equivalents and Restricted Cash


	Nine Months Ended
	September 30,
	2021		2020
At beginning of period:
Cash and cash equivalents	$	541,158	$	177,668
Restricted cash - non-current		440		240
Total cash, cash equivalents and restricted cash	$	541,598	$	177,908

At end of period:
Cash and cash equivalents	$	360,540	$	292,465
Restricted cash - non-current		440		440
Total cash, cash equivalents and restricted cash	$	360,980	$	292,905

Restricted cash – non-current consists of deposits for letter of credits that the Company has provided to secure its obligations under certain leases.

Investments in Marketable Securities

Trade Receivables

Recent Accounting Pronouncements

The following are the recent accounting pronouncements adopted by the Company in 2021:

Revenue - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Concentration of Revenue [Line Items]
Net product revenue	$ 82,503	$ 113,551	$ 253,180	$ 365,405
Net Product Revenue.
Concentration of Revenue [Line Items]
Net product revenue	$ 82,500	$ 113,600	$ 253,200	$ 365,400

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Inventory - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Sep. 30, 2021	Dec. 31, 2020
Inventory [Line Items]
Wrote-off inventory	$ 5,200
Prepayment made for manufacturing services	20,378			$ 20,378	$ 19,429
Other assets, non-current	10,262			10,262	12,543
Impairment charge within research and development expenses			$ 3,200	3,210
Cancellation of open purchase orders with various vendors related to CHS-2020 development	0	$ 0	$ 8,300
UDENYCA
Inventory [Line Items]
Prepayment made for manufacturing services	11,600			11,600	8,900
Other research and development pipeline programs
Inventory [Line Items]
Prepayment made for manufacturing services	$ 8,800			$ 8,800	$ 10,500

Organization and Summary of Significant Accounting Policies - Organization (Details)	9 Months Ended
	Sep. 30, 2021 product
Organization and Summary of Significant Accounting Policies
Number of products	4

Convertible Notes and Term Loan

9 Months Ended

Sep. 30, 2021

Convertible Notes and Term Loan

Convertible Notes and Term Loan

7. Convertible Notes and Term Loan

1.5% Convertible Senior Subordinated Notes due 2026

In April 2020, the Company issued and sold $230.0 million aggregate principal amount of its 1.5% Convertible Senior Subordinated notes due 2026 (the “2026 Convertible Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The net proceeds from the offering were $222.2 million after deducting initial purchasers’ fees and offering expenses. The 2026 Convertible Notes are general unsecured obligations and will be subordinated to the Company’s designated senior indebtedness (as defined in the indenture for the 2026 Convertible Notes) and structurally subordinated to all existing and future indebtedness and other liabilities, including trade payables. The 2026 Convertible Notes accrue interest at a rate of 1.5% per annum, payable semi-annually in arrears on April 15 and October 15 of each year, since October 15, 2020, and will mature on April 15, 2026, unless earlier repurchased or converted.

At any time before the close of business on the second scheduled trading day immediately before the maturity date, noteholders may convert their 2026 Convertible Notes at their option into shares of the Company’s common stock, together, if applicable, with cash in lieu of any fractional share, at the then-applicable conversion rate. The initial conversion rate is 51.9224 shares of common stock per $1,000 principal amount of the 2026 Convertible Notes, which represents an initial conversion price of approximately $19.26 per share of common stock. The initial conversion price represents a premium of approximately 30.0% over the last reported sale of $14.815 per share of the Company’s common stock on the Nasdaq Global Market on April 14, 2020, the date the 2026 Convertible Notes were issued. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. If a “make-whole fundamental change” (as defined in the indenture for the 2026 Convertible Notes) occurs, the Company will, in certain circumstances, increase the conversion rate for a specified period of time for noteholders who convert their 2026 Convertible Notes in connection with that make-whole fundamental change. The 2026 Convertible Notes are not redeemable at the Company’s election before maturity. If a “fundamental change” (as defined in the indenture for

the 2026 Convertible Notes) occurs, then, subject to a limited exception, noteholders may require the Company to repurchase their 2026 Convertible Notes for cash. The repurchase price will be equal to the principal amount of the 2026 Convertible Notes to be repurchased, plus accrued and unpaid interest, if any, to, but excluding, the applicable repurchase date.

The 2026 Convertible Notes have customary provisions relating to the occurrence of “events of default” (as defined in the indenture for the 2026 Convertible Notes). The occurrence of such events of default could result in the acceleration of all amounts due under the 2026 Convertible Notes.

As of September 30, 2021, the Company was in full compliance with these covenants and there were no events of default under the 2026 Convertible Notes.

The 2026 Convertible Notes are accounted for in accordance with ASC 470-20, Debt with Conversion and Other Options (“ASC 470-20”). Pursuant to ASC 470-20, the Company evaluated the features embedded in the 2026 Convertible Notes and concluded that the embedded features do not meet the requirements for bifurcation, and therefore do not need to be separately accounted for as an equity component. The proceeds received from the issuance of the convertible debt were recorded as a liability on the condensed consolidated balance sheets.

Capped Call Transactions

In connection with the pricing of the 2026 Convertible Notes, the Company also paid $18.2 million to enter into privately negotiated capped call transactions with one or a combination of the initial purchasers, their respective affiliates and other financial institutions (the “option counterparties”). The capped call transactions are generally expected to reduce the potential dilution upon conversion of the 2026 Convertible Notes in the event that the market price per share of the Company’s common stock, as measured under the terms of the capped call transactions, is greater than the strike price of the capped call transactions, which initially corresponds to the conversion price of the 2026 Convertible Notes, and is subject to anti-dilution adjustments generally similar to those applicable to the conversion rate of the 2026 Convertible Notes. The cap price of the capped call transactions will initially be $25.9263 per share, which represents a premium of approximately 75.0% over the last reported sale price of the Company’s common stock of $14.815 per share on April 14, 2020, and is subject to certain adjustments under the terms of the capped call transactions.

The capped call transactions are accounted for as separate transactions from the 2026 Convertible Notes and classified as equity instruments. Therefore, the total $18.2 million capped call premium paid was recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets. The capped calls will not be subsequently re-measured as long as the conditions for equity classification continue to be met.

The Company incurred $0.9 million of debt issuance costs relating to the issuance of the 2026 Convertible Notes, which were recorded as a reduction to the notes on the condensed consolidated balance sheets. The debt issuance costs are being amortized and recognized as additional interest expense over the six-year contractual term of the notes using the effective interest rate method.

The following table summarizes components of the 2026 Convertible Notes (in thousands):


	September 30,		December 31,
	2021		2020
Principal amount of the 2026 Convertible Notes	$	230,000	$	230,000
Unamortized debt discount and debt issuance costs		(6,029)		(6,971)
Total 2026 Convertible Notes	$	223,971	$	223,029

If the 2026 Convertible Notes were converted on September 30, 2021, the holders of the 2026 Convertible Notes would have received common shares with an aggregate value of $191.9 million based on the Company’s closing stock price of $16.07 as of September 30, 2021.

The following table presents the components of interest expense related to 2026 Convertible Notes (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stated coupon interest	$	862	$	863	$	2,587	$	1,572
Accretion of debt discount and debt issuance costs		316		309		942		562
Total interest expense	$	1,178	$	1,172	$	3,529	$	2,134

The remaining unamortized debt discount and debt offering costs related to the Company’s 2026 Convertible Notes of approximately $6.0 million as of September 30, 2021, will be amortized using the effective interest rate over the remaining term of the 2026 Convertible Notes of 4.5 years. The annual effective interest rate is 2.1% for the 2026 Convertible Notes.

Future payments on the 2026 Convertible Notes as of September 30, 2021 are as follows (in thousands):


Year ending December 31,
Remainder of 2021	$	1,725
2022		3,450
2023		3,450
2024		3,450
2025 and beyond		235,175
Total minimum payments		247,250
Less amount representing interest		(17,250)
2026 Convertible Notes, principal amount		230,000
Less debt discount and debt issuance costs on 2026 Convertible Notes		(6,029)
Net carrying amount of 2026 Convertible Notes	$	223,971

8.2% Convertible Notes due 2022

On February 29, 2016, the Company issued and sold $100.0 million aggregate principal amount of its 8.2% Convertible Senior Notes (the “2022 Convertible Notes”). The 2022 Convertible Notes constitute general, senior unsubordinated obligations of the Company and are guaranteed by certain subsidiaries of the Company. The 2022 Convertible Notes bear interest at a fixed coupon rate of 8.2% per annum payable quarterly in arrears on March 31, June 30, September 30 and December 31 of each year, since March 31, 2016, and will mature on March 31, 2022, unless earlier converted, redeemed or repurchased. The 2022 Convertible Notes also bear a premium of 9% of their principal amount, which is payable when the 2022 Convertible Notes mature or are repurchased or redeemed by the Company.

The 2022 Convertible Notes were issued to Healthcare Royalty Partners III, L.P., for $75.0 million in aggregate principal amount, and to three related party investors, KKR Biosimilar L.P., MX II Associates LLC, and KMG Capital Partners, LLC, for $20.0 million, $4.0 million, and $1.0 million, respectively, in aggregate principal amount.

At any time before the close of business on the business day immediately preceding March 31, 2022, the 2022 Convertible Note noteholders may convert their 2022 Convertible Notes at their option into shares of the Company’s

common stock, together, if applicable, with cash in lieu of any fractional share, at the then-applicable conversion rate. The initial conversion rate is 44.7387 shares of common stock per $1,000 principal amount of the 2022 Convertible Notes, which represents an initial conversion price of approximately $22.35 per share of common stock. The initial conversion price represents a 60% premium over the average last reported sale price of our common stock over the 15 trading days preceding the date the 2022 Convertible Notes were issued. The conversion rate and conversion price will be subject to customary adjustments upon the occurrence of certain events. The 2022 Convertible Notes are redeemable in whole, and not in part, at the Company’s option with effect from March 31, 2020, if the last reported sale price per share of common stock exceeds 160% of the conversion price on 20 or more trading days during the 30 consecutive trading days preceding the date on which the Company sends notice of such redemption to the holders of the 2022 Convertible Notes. At maturity or redemption, if not earlier converted, the Company will pay 109% of the principal amount of the 2022 Convertible Notes maturing or being redeemed, together with accrued and unpaid interest, in cash.

The 2022 Convertible Notes contain customary negative covenants and events of default, the occurrence of which could result in the acceleration of all amounts due under the 2022 Convertible Note. As of September 30, 2021, the Company was in full compliance with these covenants and there were no events of default under the 2022 Convertible Notes.

The 2022 Convertible Notes are accounted for in accordance with ASC 470-20. Pursuant to ASC 470-20, the Company evaluated the features embedded in the 2022 Convertible Notes and concluded that the embedded features do not meet the requirements for bifurcation, and therefore do not need to be separately accounted for as an equity component.

The following table summarizes components of the 2022 Convertible Notes (in thousands):


	September 30,		December 31,
	2021		2020
Principal amount of the 2022 Convertible Notes	$	81,750	$	81,750
Unamortized debt discount and debt issuance costs		(772)		(1,865)
2022 Convertible Notes	$	80,978	$	79,885
Principal amount of the 2022 Convertible Notes - related parties	$	27,250	$	27,250
Unamortized debt discount and debt issuance costs - related parties		(258)		(622)
2022 Convertible Notes - related parties	$	26,992	$	26,628
Total 2022 Convertible Notes	$	107,970	$	106,513

The 2022 Convertible Notes and the 2022 Convertible Notes – related parties were classified in current liabilities as of September 30, 2021 and in non-current liabilities on the condensed consolidated balance sheets as of December 31, 2020. If the 2022 Convertible Notes were converted on September 30, 2021, the holders of the 2022 Convertible Notes would have received common shares with an aggregate value of $71.9 million based on the Company’s closing stock price of $16.07 as of September 30, 2021.

The following table presents the components of interest expense related to 2022 Convertible Notes (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stated coupon interest	$	1,537	$	1,538	$	4,612	$	4,614
Accretion of debt discount and debt issuance costs		373		340		1,093		996
Interest expense	$	1,910	$	1,878	$	5,705	$	5,610
Stated coupon interest - related parties	$	513	$	512	$	1,538	$	1,536
Accretion of debt discount and debt issuance costs - related parties		124		113		364		331
Interest expense - related parties	$	637	$	625	$	1,902	$	1,867
Total interest expense	$	2,547	$	2,503	$	7,607	$	7,477

The remaining unamortized debt discount and debt offering costs related to the 2022 Convertible Notes of $1.0 million as of September 30, 2021, will be amortized using the effective interest rate over the remaining term of the 2022 Convertible Notes of six months. The annual effective interest rate is 9.48% for the 2022 Convertible Notes.

Future payments on the 2022 Convertible Notes as of September 30, 2021 are as follows (in thousands):


Year ending December 31,
Remainder of 2021	$	2,050
2022		111,050
Total minimum payments		113,100
Less amount representing interest		(4,100)
2022 Convertible Notes, principal amount		109,000
Less debt discount and debt issuance costs on 2022 Convertible Notes		(1,030)
Net carrying amount of 2022 Convertible Notes	$	107,970

Term Loan

On January 7, 2019 (“the “Term Loan Closing Date”), the Company entered into a credit agreement (the “Term Loan”) with affiliates of Healthcare Royalty Partners (together, the “Lender”). The Term Loan consists of a six-year term loan facility for an aggregate principal amount of $75.0 million (the “Borrowings”). The obligations of the Company under the loan documents are guaranteed by the Company’s material domestic U.S. subsidiaries.

The Borrowings under the Term Loan bear interest through maturity at 6.75% per annum plus three-month LIBOR (or any successor rate pursuant to the Term Loan). Interest is payable quarterly in arrears. The Company adopted the prospective method to account for future cash payments. Under the prospective method, the effective interest rate is not constant, and any change in the expected cash flows is recognized prospectively as an adjustment to the effective yield. As of September 30, 2021, the effective interest rate was 10.7%.

The Company is required to pay principal on the Borrowings in equal quarterly installments beginning on the third anniversary of the Term Loan Closing Date (or, if consolidated net sales of UDENYCA^® in the fiscal year ending December 31, 2021 exceed $375.0 million, beginning on the fourth anniversary of the Term Loan Closing Date), with the outstanding balance to be repaid on January 7, 2025, the maturity date. As of September 30, 2021, $17.3 million of the carrying value was classified as current liabilities on our condensed consolidated balance sheets based upon our expectation that principal payments will commence within twelve months of September 30, 2021.

The Company is also required to make mandatory prepayments of the Borrowings under the Term Loan, subject to specified exceptions, with the proceeds of asset sales, extraordinary receipts, debt issuances and specified other events including the occurrence of a change in control.

If all or any of the Borrowings are prepaid or required to be prepaid under the Term Loan, then the Company shall pay, in addition to such prepayment, a prepayment premium equal to (i) with respect to any prepayment paid or required to be paid on or prior to the third anniversary of the credit agreement closing date, 5.00% of the Borrowings prepaid or required to be prepaid, plus all required interest payments that would have been due on the Borrowings prepaid or required to be prepaid through and including the three year anniversary of the term loan closing date, (ii) with respect to any prepayment paid or required to be paid after the three year anniversary of the term loan closing date but on or prior to the four year anniversary of the term loan closing date, 5.00% of the Borrowings prepaid or required to be prepaid, (iii) with respect to any prepayment paid or required to be paid after the fourth anniversary of the term loan closing date but on or prior to the fifth anniversary of the term loan closing date, 2.50% of the Borrowings prepaid or required to be prepaid, and (iv) with respect to any prepayment paid or required to be prepaid thereafter, 1.25% of the Borrowings prepaid or required to be prepaid.

In connection with the Term Loan, the Company paid a fee to the Lender of $1.1 million at closing in the form of an original issue discount. Upon the prepayment or maturity of the Borrowings (or upon the date such prepayment or repayment is required to be paid), the Company is required to pay an additional exit fee in an amount equal to 4.00% of the total principal amount of the Borrowings.

The obligations under the Term Loan are secured by a lien on substantially all of the Company’s tangible and intangible property, including intellectual property. The Term Loan contains certain affirmative covenants, negative covenants and events of default, including, covenants and restrictions that among other things, restrict the ability of the Company and its subsidiaries to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, or in asset sales, and declare dividends or redeem or repurchase capital stock. Additionally, the consolidated net sales for UDENYCA^® must not be lower than $150.0 million for each fiscal year after the fiscal year ending December 31, 2020. A failure to comply with these covenants could permit the Lender under the Term Loan to declare the Borrowings, together with accrued interest and fees, to be immediately due and payable.

On April 13, 2020, the Company entered into an amendment to the Term Loan, which amended the Term Loan’s indebtedness covenant such that the Company could incur Convertible Bond Indebtedness (as defined in the credit agreement governing the Term Loan) in an amount not to exceed the greater of $230.0 million or 20% of the Company’s market capitalization.

As of September 30, 2021, the Company was in full compliance with these covenants and there were no events of default under the Term Loan.

The following table summarizes information about the components of the Term Loan (in thousands):


	September 30,		December 31,
	2021		2020
Principal amount of the Term Loan	$	75,000	$	75,000
Exit fee due on payment of Term Loan		3,000		3,000
Term Loan, gross		78,000		78,000
Unamortized exit fee, debt discount and debt issuance costs, net		(2,768)		(3,519)
Net carrying amount of Term Loan	$	75,232	$	74,481

The following table presents the components of interest expense (in thousands):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Stated coupon interest	$	1,773	$	1,773	$	5,261	$	5,280
Accretion of debt discount and debt issuance costs		273		208		751		604
Interest expense	$	2,046	$	1,981	$	6,012	$	5,884

Future payments on the Term Loan as of September 30, 2021 are as follows (in thousands):


Year ending December 31,
Remainder of 2021	$	1,773
2022		29,294
2023		27,130
2024		24,972
2025		8,780
Total minimum payments		91,949
Less amount representing interest		(13,949)
Term Loan, gross		78,000
Less unamortized exit fee, debt discount and debt issuance costs, net		(2,768)
Net carrying amount of Term Loan	$	75,232

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Balance Sheet Components
Depreciation and amortization	$ 900	$ 700	$ 2,618	$ 2,048

Collaborations and Other Arrangements (Details) $ / shares in Units, $ in Thousands				3 Months Ended			9 Months Ended
	Apr. 16, 2021 USD ($) $ / shares shares	Feb. 01, 2021 USD ($) item	Jan. 13, 2020 USD ($)	Sep. 30, 2021 USD ($) $ / shares	Mar. 31, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($) $ / shares	Sep. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) $ / shares
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Research and development expense				$ 54,085		$ 38,851	$ 312,343	$ 98,131
Accounts payable				45,707			45,707		$ 15,201
Accrued and other current liabilities				$ 45,826			$ 45,826		$ 26,679
Common Stock Par Or Stated Value Per Share \| $ / shares				$ 0.0001			$ 0.0001		$ 0.0001
Innovent License Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Research and development expense				$ 500			$ 1,200
Innovent License Agreement \| Bevacizumab Licensed Product
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Upfront and milestone payment			$ 5,000
Innovent License Agreement \| Upfront payment and a milestone payment
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Research and development expense						$ 2,500		$ 7,500
Innovent License Agreement \| Technology transfer
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Fees paid							10,000
Innovent License Agreement \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Collaboration Agreement, Percentage Of Royalty On Net Sales			20.00%
Innovent License Agreement \| Maximum \| Bevacizumab Licensed Product
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Maximum aggregate milestone payments			$ 40,000
Innovent License Agreement \| Maximum \| Rituximab Licensed Product
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Maximum aggregate milestone payments			40,000
Collaboration Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Collaboration Agreement		$ 150,000
Collaboration Agreement, Percentage Of Royalty On Net Sales		20.00%
Collaboration Agreement , Threshold Royalty Payments		$ 380,000
Collaboration Agreement, Option Exercise Fee Per Program		35,000
Junshi Biosciences
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Maximum paid amount for co-development activities (per licensed compound)		25,000
Research and development rights for upfront payment					$ 145,000
Fees paid		$ 5,000
Research and development expense				15,400			37,600
Accounts payable				19,700			$ 19,700
Undisclosed preclinical \| item		2
Collaboration Agreement, Percentage Of Royalty On Net Sales For Each Option Program		18.00%
Collaboration Agreement , Threshold Payments On Achievement Of Various Milestone For Each Option Program		$ 255,000
Share Price \| $ / shares	$ 20.0643
Unregistered shares \| shares	2,491,988
Aggregate value	$ 50,000
Period before the company can sell, transfer or make any short sale of common stock (in years)	2 years
Fair value for the discount for lack of marketability (DLOM)	$ 9,000
Junshi Biosciences \| Accrued and other current liabilities
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Co-development, regulatory and technology transfer costs				$ 11,200
Scenario, Plan \| Innovent License Agreement \| Rituxan option exercised
Collaborative Arrangements And Noncollaborative Arrangement Transactions
Fees paid			$ 5,000

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Property and Equipment, Net
Total property and equipment	$ 27,547	$ 26,158
Accumulated depreciation and amortization	(19,042)	(16,050)
Property and equipment, net	8,505	10,108
Machinery and Equipment
Property and Equipment, Net
Total property and equipment	13,963	13,301
Computer Equipment and Software
Property and Equipment, Net
Total property and equipment	4,032	3,996
Furniture and Fixtures
Property and Equipment, Net
Total property and equipment	1,274	1,268
Leasehold Improvements
Property and Equipment, Net
Total property and equipment	5,942	5,830
Finance lease right of use assets
Property and Equipment, Net
Total property and equipment	2,294	1,451
Construction in Progress
Property and Equipment, Net
Total property and equipment	$ 42	$ 312

Convertible Notes and Term Loan - Term Loan (Details) - USD ($) $ in Thousands			9 Months Ended	12 Months Ended
	Apr. 13, 2020	Jan. 07, 2019	Sep. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument
Carrying value reclassified to current liabilities			$ 17,308
Term Loan
Debt Instrument
Aggregate principal amount			$ 75,000		$ 75,000
Effective interest rate			10.70%
Debt instrument maturity date			Jan. 07, 2025
Payment of closing fee to the lenders in form of origination issue discount			$ 3,000		3,000
Percentage required to pay an additional exit fee on principal amount		4.00%
Convertible notes, covenant compliance			The Term Loan contains certain affirmative covenants, negative covenants and events of default, including, covenants and restrictions that among other things, restrict the ability of the Company and its subsidiaries to incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, or in asset sales, and declare dividends or redeem or repurchase capital stock. Additionally, the consolidated net sales for UDENYCA® must not be lower than $150.0 million for each fiscal year after the fiscal year ending December 31, 2020. A failure to comply with these covenants could permit the Lender under the Term Loan to declare the Borrowings, together with accrued interest and fees, to be immediately due and payable.
Consolidated net sales, thereafter			$ 150,000
Unamortized debt discount and debt issuance costs on Term Loan			2,768		3,519
Remaining unamortized debt discount and debt offering costs			$ 2,768		$ 3,519
Term Loan \| Paid on or Prior to the Three Year Anniversary of Closing Date
Debt Instrument
Prepayment premium, description			with respect to any prepayment paid or required to be paid on or prior to the third anniversary of the credit agreement closing date, 5.00% of the Borrowings prepaid or required to be prepaid, plus all required interest payments that would have been due on the Borrowings prepaid or required to be prepaid through and including the three year anniversary of the term loan closing date
Prepayment premium percentage			5.00%
Term Loan \| Paid after the Three Year but on or Prior to the Four Year Anniversary of Closing Date
Debt Instrument
Prepayment premium, description			with respect to any prepayment paid or required to be paid after the three year anniversary of the term loan closing date but on or prior to the four year anniversary of the term loan closing date, 5.00% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage			5.00%
Term Loan \| Paid after the Four Year but on or Prior to the Five Year Anniversary of Closing Date
Debt Instrument
Prepayment premium, description			with respect to any prepayment paid or required to be paid after the fourth anniversary of the term loan closing date but on or prior to the fifth anniversary of the term loan closing date, 2.50% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage			2.50%
Term Loan \| Paid Thereafter
Debt Instrument
Prepayment premium, description			with respect to any prepayment paid or required to be prepaid thereafter, 1.25% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage			1.25%
Term Loan \| Maximum
Debt Instrument
Aggregate principal amount	$ 230,000
Percentage Of Market Capitalization	20.00%
Term Loan \| Minimum \| Scenario, Plan
Debt Instrument
Net sales amount in subjective acceleration clause				$ 375,000
Term Loan \| LIBOR
Debt Instrument
Effective interest rate		6.75%
Affiliates of Healthcare Royalty Partners (together, the "Lender") \| Term Loan
Debt Instrument
Total term of the loan		6 years
Aggregate principal amount		$ 75,000
Interest rate description			Interest is payable quarterly in arrears. The Company adopted the prospective method to account for future cash payments. Under the prospective method, the effective interest rate is not constant, and any change in the expected cash flows is recognized prospectively as an adjustment to the effective yield. As of September 30, 2021, the effective interest rate was 10.7%.
Payment terms			The Company is required to pay principal on the Borrowings in equal quarterly installments beginning on the third anniversary of the Term Loan Closing Date (or, if consolidated net sales of UDENYCA® in the fiscal year ending December 31, 2021 exceed $375.0 million, beginning on the fourth anniversary of the Term Loan Closing Date), with the outstanding balance to be repaid on January 7, 2025, the maturity date.
Payment of closing fee to the lenders in form of origination issue discount		$ 1,100