View Filing Data

$ 189,476

$ 30,041

$ 30,374

Other revenue

630

732

Research and development (includes related party of $34,705, $42,768 and $21,723 for the years ended December 31, 2016, 2015 and 2014, respectively)

190,106

30,041

31,106

Operating expenses:

254,440

213,062

78,224

General and administrative (includes related party of $178, $559 and $597 for the years ended December 31, 2016, 2015 and 2014, respectively)

51,597

36,046

17,564

Total operating expenses

306,037

249,108

95,788

Loss from operations

(115,931)

(219,067)

(64,682)

Interest expense (includes related party of $1,980, $0 and $2,687 for the years ended December 31, 2016, 2015 and 2014, respectively)

(7,980)

(33)

(3,900)

Other expense, net

(3,877)

(4,838)

(18,595)

Net loss

(127,788)

(223,938)

(87,177)

Net loss attributable to non-controlling interest

451

678

Net loss per share attributable to Coherus, basic and diluted

$ (127,337)

$ (223,260)

$ (87,133)

$ (3.04)

$ (6.01)

$ (10.64)

Weighted-average number of shares used in computing net loss per share attributable to Coherus, basic and diluted

41,912,300

37,122,008

8,186,529

Baxalta License Agreement

Revenue:

Daiichi Sankyo - Related Party

$ 188,292

$ 27,802

$ 28,481

Revenue:

Organization Consolidation And Presentation Of Financial Statements [Abstract]

^[1]

$ 1,184

$ 2,239

$ 1,893

[1]	Represents revenue from Daiichi Sankyo through November 12, 2014 as a related party, a holder of more than 10% of our common stock until the closing of our initial public offering (“IPO”).

Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Statement [Abstract]
Research and development from transactions with related party	$ 34,705	$ 42,768	$ 21,723
General and administrative expenses from transactions with related party	178	559	597
Interest expense from transactions with related party	$ 1,980	$ 0	$ 2,687

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (127,788)	$ (223,938)	$ (87,177)
Other comprehensive loss:
Foreign currency translation adjustments, net of tax	(229)	124	(525)
Comprehensive loss	(128,017)	(223,814)	(87,702)
Comprehensive loss attributable to non-controlling interest	451	678	44
Comprehensive loss attributable to Coherus	$ (127,566)	$ (223,136)	$ (87,658)

Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) - USD ($) $ in Thousands	Total	InteKrin	IPO	Follow-On Public Offering	Private Placement	Common Stock Offering	Common Stock	Common Stock InteKrin	Common Stock IPO	Common Stock IPO Warrant	Common Stock Follow-On Public Offering	Common Stock Private Placement	Common Stock Common Stock Offering	Additional Paid-In Capital	Additional Paid-In Capital InteKrin	Additional Paid-In Capital IPO	Additional Paid-In Capital Follow-On Public Offering	Additional Paid-In Capital Private Placement	Additional Paid-In Capital Common Stock Offering	Accumulated Other Comprehensive (Loss)	Accumulated Deficit	Total Coherus Stockholder Equity (Deficit)	Total Coherus Stockholder Equity (Deficit) InteKrin	Total Coherus Stockholder Equity (Deficit) IPO	Total Coherus Stockholder Equity (Deficit) Follow-On Public Offering	Total Coherus Stockholder Equity (Deficit) Private Placement	Total Coherus Stockholder Equity (Deficit) Common Stock Offering	Noncontrolling Interest	Series A Convertible Preferred Stock	Series A Convertible Preferred Stock IPO	Series B Convertible Preferred Stock	Series B Convertible Preferred Stock IPO	Series C Convertible Preferred Stock	Series C Convertible Preferred Stock IPO
Beginning Balances at Dec. 31, 2013	$ (97,077)						$ 1							$ 2,514							$ (99,592)	$ (97,077)
Beginning Balances, Shares at Dec. 31, 2013							4,837,715
Beginning Balances at Dec. 31, 2013																													$ 1,191		$ 53,504
Beginning Balances, Shares at Dec. 31, 2013																													972,330		8,181,576
Beneficial conversion feature related to convertible notes issued in 2013	(3,939)													(3,939)								(3,939)
Issuance of convertible preferred stock for InteKrin acquisition																															$ 3,667
Issuance of convertible preferred stock for InteKrin acquisition, Shares																															960,486
Issuance of convertible preferred stock in exchange for services																															$ 57		$ 100
Issuance of convertible preferred stock in exchange for services, Shares																															8,185		9,997
Issuance of convertible preferred stock net																																	$ 54,660
Issuance of convertible preferred stock net, Shares																																	5,488,892
Issuance of convertible preferred stock value upon conversion of convertible promissory notes																																	$ 10,583
Issuance of convertible preferred stock shares upon conversion of convertible promissory notes, Shares																																	1,058,089
Issuance of convertible preferred stock upon exercise of warrants, including the reclassification of the associated convertible preferred stock warrant liability																													$ 1,004		$ 39,277
Issuance of convertible preferred stock upon exercise of warrants, including the reclassification of the associated convertible preferred stock warrant liability, Shares																													62,251		4,574,713
Issuance of common stock			$ 80,209													$ 80,209								$ 80,209
Issuance of common stock, Shares									6,803,702
Conversion of convertible preferred stock and common stock warrants to common stock in connection with initial public offering			$ 164,043						$ 2							$ 164,041								$ 164,043						$ (2,195)		$ (96,505)		$ (65,343)
Conversion of convertible preferred stock and common stock warrants to common stock in connection with initial public offering, Shares									21,316,519	491,580																				(1,034,581)		(13,724,960)		(6,556,978)
Issuance of common stock options in exchange for services	48													48								48
Issuance of common stock upon exercise of stock options	55						$ 48,414							55								55
Repurchase of common stock	(2)													(2)								(2)
Repurchase of common stock, Shares							(239,952)
Vesting of restricted common stock issued to founders	5													5								5
Stock-based compensation expense	11,117													11,117								11,117
Cumulative translation adjustment	(525)																			$ (525)		(525)
Distributions to non-controlling interest	(44)																											$ (44)
Net loss attributable to Coherus	(87,133)																				(87,133)	(87,133)
Ending Balances at Dec. 31, 2014	66,757						$ 3							254,048						(525)	(186,725)	66,801						(44)
Ending Balances, shares at Dec. 31, 2014							33,257,978
Issuance of common stock				$ 112,199	$ 9,930						$ 1						$ 112,198	$ 9,930							$ 112,199	$ 9,930
Issuance of common stock, Shares											4,137,931	390,167
Issuance of common stock upon exercise of stock options	1,429													1,429								1,429
Issuance of common stock upon exercise of stock options, Shares							861,137
Vesting of restricted common stock issued to founders	9													9								9
Stock-based compensation expense	16,712													16,712								16,712
Cumulative translation adjustment	124																			124		124
Distributions to non-controlling interest	(678)																											(678)
Net loss attributable to Coherus	(223,260)																				(223,260)	(223,260)
Ending Balances at Dec. 31, 2015	$ (6,929)						$ 4							404,175						(401)	(409,985)	(6,207)						(722)
Ending Balances, shares at Dec. 31, 2015	39,005,589						39,005,589
Issuance of common stock upon payment of InteKrin Earn Out contingency		$ 9,849													$ 9,849								$ 9,849
Issuance of common stock upon payment of InteKrin Earn Out contingency, Shares								358,384,000
Retired shares resulting from InteKrin escrow distribution in cash								(8)
Issuance of common stock						$ 123,567							$ 1						$ 123,566								$ 123,567
Issuance of common stock, Shares													6,040,987
Issuance of common stock upon exercise of stock options	$ 3,312													3,312								3,312
Issuance of common stock upon exercise of stock options, Shares	761,587						761,587
Stock-based compensation expense	$ 27,421													27,421								27,421
Cumulative translation adjustment	(229)																			(229)		(229)
Distributions to non-controlling interest	(451)																											(451)
Net loss attributable to Coherus	(127,337)																				(127,337)	(127,337)
Ending Balances at Dec. 31, 2016	$ 19,354						$ 5							$ 558,474						$ (630)	$ (537,322)	$ 20,527						$ (1,173)
Ending Balances, shares at Dec. 31, 2016	39,005,589						45,808,163

Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity (Deficit) (Parenthetical)	12 Months Ended
	Dec. 31, 2014 $ / shares
Series C Convertible Preferred Stock
Issuance price per share of convertible preferred stock	$ 6.00
Conversion price per share of convertible preferred stock	6.00
Exchange price per share of convertible preferred stock for services	$ 6.00

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Operating activities
Net loss	$ (127,788)	$ (223,938)	$ (87,177)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	2,996	1,869	674
Remeasurement of fair-value contingent consideration	4,305	4,599	5,185
Remeasurement of convertible preferred stock warrant and embedded derivative liabilities			15,899
Preferred stock issued in exchange for services			147
Non-cash interest expense (income) from amortization of debt discount (receivable)	1,041	(38)	3,897
Gain on extinguishment of 2013 Notes			(2,048)
Gain on (impairment of) property and equipment	(6)	382
Provision for other receivables	(1,300)	1,300
Stock-based compensation expense	27,421	16,721	11,062
Changes in operating assets and liabilities:
Receivables from collaboration and license agreement	(299)	857	(2,139)
Notes receivable		1,853	(1,815)
Notes receivable from related parties			107
Prepaid assets	3,127	(14,288)	(14,692)
Other assets	1,111	(3,329)	(2,046)
Other assets - related party		1,691	(1,691)
Other assets, non-current	88	42	(25)
Accounts payable	(4,965)	18,404	3,629
Accounts payable - related parties	(2,671)	1,528	1,637
Accrued liabilities	3,953	12,832	3,949
Other liabilities	65	(28)	31
Deferred revenue	(93,236)	32,294	19,848
Advance payments under license agreements	(260)	138	1,192
Contingent liability to collaborator	(66,255)	38,605	20,150
Other liabilities, non-current	128	516	299
Net cash used in operating activities	(252,545)	(107,990)	(23,927)
Investing activities
Net cash acquired from acquisition of InteKrin Therapeutics Inc.			2,334
Purchases of property and equipment	(6,515)	(6,164)	(2,849)
Increase in restricted cash		(785)	(10)
Net cash used in investing activities	(6,515)	(6,949)	(525)
Financing activities
Proceeds from issuance of convertible preferred stock, net of issuance costs			54,660
Proceeds from issuance of convertible notes	75,000
Proceeds from issuance of convertible notes - related parties	25,000
Proceeds from issuance of convertible preferred stock upon exercise of warrants			131
Proceeds from initial public offering, net of underwriters discounts and commissions			85,419
Proceeds from follow-on offering, net of underwriters discounts and commissions		112,800
Proceeds from private placement		10,000
Proceeds from common stock offerings, net of underwriters discounts and commissions	124,311
Payments of convertible notes issuance costs	(739)
Proceeds from issuances of common stock upon exercise of stock options	3,312	1,429	55
Repurchase of restricted common stock			(2)
Net cash provided by financing activities	226,179	122,689	135,956
Effect of exchange rate changes in cash and cash equivalents	(398)	84	(666)
Net (decrease) increase in cash and cash equivalents	(33,279)	7,834	110,838
Cash and cash equivalents at beginning of period	158,226	150,392	39,554
Cash and cash equivalents at end of period	124,947	158,226	150,392
Supplemental disclosure of cash flow information
Cash paid for interest	6,939	33	1
Supplemental disclosures of noncash investing and financing activities
Contingent consideration accrued in connection with acquisition			1,310
Reclassification of fair value of convertible preferred stock warrants to preferred stock upon exercise			40,150
Purchase of property and equipment in accounts payable and accrued liabilities	507	1,684	726
Leasehold improvements allowance from landlord		1,239
Initial public offering costs in accounts payable			855
Costs related to future offerings in accounts payable and accrued liabilities		124
Common stock offering costs in accounts payable and accrued liabilities	39
Accrued expenses settled in common stock warrants			55
Accrued expenses settled in preferred stock			10
Fair value of contingent consideration settled in common stock		9,849
Series B Convertible Preferred Stock
Supplemental disclosures of noncash investing and financing activities
Issuance of Series B Preferred stock for acquisition			3,667
Series C Convertible Preferred Stock
Supplemental disclosures of noncash investing and financing activities
Conversion of 2013 Notes and accrued interest into Series C convertible preferred stock			10,583
Initial Public Offering
Financing activities
Payments of offering costs		(855)	$ (4,307)
Follow-On Public Offering and Private Placement
Financing activities
Payments of offering costs		(672)
Future Offerings
Financing activities
Payments of offering costs		$ (13)
Common Stock Offering
Financing activities
Payments of offering costs	$ (705)

Organization and Operations

12 Months Ended

Dec. 31, 2016

Organization and Operations

1.	Organization and Operations

Description of the Business

The Company is a late-stage clinical biologics platform company, focused on the global biosimilar market. The Company’s headquarters and laboratories are located in Redwood City, California and in Camarillo, California, respectively.

Need to Raise Additional Capital

As of December 31, 2016, the Company had an accumulated deficit of $537.3 million and cash and cash equivalents of $124.9 million. In January 2017, the Company issued and sold 148,827 shares of common stock at a weighted average price of $28.88 per share through its ATM Offering Program and received total net proceeds of $4.2 million, and in February and March 2017, the Company issued and sold 5,294,902 shares of common stock at a price of $24.25 per share from its follow-on offering and received total net proceeds of $120.3 million (see Note 16). The Company believes that its current available cash and cash equivalents, together with proceeds from the common stock offerings and funding it expects to receive under its license agreements with Daiichi, will be sufficient to fund its planned expenditures and meet the Company’s obligations through at least the next 12 months. The Company will need to raise additional funds in the future, however there can be no assurance that such efforts will be successful or that, in the event that they are successful, the terms and conditions of such financing will be favorable. If the Company is unable to obtain adequate financing when needed, it may have to delay, reduce the scope of or suspend one or more of its clinical trials, research and development programs or commercialization efforts.

Basis of Presentation and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

2.	Basis of Presentation and Summary of Significant Accounting Policies

Basis of Consolidation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The accompanying consolidated financial statements include the accounts of Coherus and its wholly owned subsidiaries as of December 31, 2016: Coherus Intermediate Corp, Coherus Oncology, Inc., Orphonix, Inc., InteKrin Therapeutics Inc. (“InteKrin”), and InteKrin’s 82.5% majority owned subsidiary of InteKrin Russia. Unless otherwise specified, references to the Company are references to Coherus and its consolidated subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation.

Reclassification

To maintain comparability among the periods presented, the Company reclassified certain prior period amounts to a separate line item that was not included in the prior period presentation. Within Note 4, Accrued Liabilities, in the Notes to the Consolidated Financial Statements for the year ended December 31, 2015, the Company reclassified amounts that were recorded within accrued professional and consulting fees to accrued other. The reclassification had no impact on the total current accrued liabilities for the periods presented.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts and disclosures reported in the financial statements. Management uses significant judgment when making estimates related to its stock-based compensation, valuation of deferred tax assets, impairment of goodwill and long-lived assets, the valuation of acquired intangible assets, clinical trial accruals, revenue recognition period, contingent consideration, convertible notes valuation, as well as certain accrued liabilities; and in prior years, common stock valuation, the valuations of the convertible preferred stock warrant liability and embedded derivative instruments. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.

Foreign Currency

The functional currency of InteKrin Russia, which the Company acquired in February 2014, is the Russian Ruble. Accordingly, the financial statements of this subsidiary are translated into U.S. dollars using appropriate exchange rates. Unrealized gains or losses on translation are recognized in accumulated other comprehensive loss in the consolidated balance sheet.

For the years ended December 31, 2016, 2015 and 2014, the foreign exchange gains and losses recorded in other expense, net in the consolidated statements of operations were a net loss of $53,000, a net loss of $386,000 and a net gain of $671,000, respectively.

Segment Reporting and Customer Concentration

The Company operates and manages its business as one reportable and operating segment, which is the business of developing and commercializing biosimilar products, and, as part of the InteKrin acquisition, small molecules (see Note 6). The Company’s chief executive officer, who is the chief operating decision maker, reviews financial information on an aggregate basis for purposes of allocating resources and evaluating financial performance. Long-lived assets are primarily maintained in the United States of America.

The following table summarizes revenue by geographic region (in thousands):

	Year Ended December 31,
	2016		2015		2014
United States	$	188,292	$	27,802	$	28,481
Rest of world		1,814		2,239		2,625
Total revenue	$	190,106	$	30,041	$	31,106

Customer Concentration

Customers whose collaboration and license revenue accounted for 10% or more of total revenues were as follows:

	Year Ended December 31,
	2016			2015			2014
Baxalta		99	%		93	%		92	%

Deferred Offering Costs

Deferred offering costs, which primarily consist of direct incremental legal and accounting fee, are capitalized in other assets, non-current until the completion of the offering. These deferred offering costs will be reclassified to additional paid-in capital upon the closing of the offering. There was $137,000 in deferred offering costs capitalized as of December 31, 2015 and none capitalized as of December 31, 2016.

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of 90 days or less at the date of purchase to be cash and cash equivalents.

Restricted Cash

Restricted cash consists of cash held in money market accounts with a bank. The restricted cash that is used as collateral against the Company’s corporate credit cards is classified as current and the restricted cash to cover the standby letter of credit issued for the Company’s landlord to drawdown on if the facility lease is breached, is classified as non-current (see Note 8).

Concentration of Credit Risk

The Company’s financial instruments that are exposed to concentration of credit risk consist primarily of cash and cash equivalents. The Company maintains its cash in bank accounts which at times exceed federally insured limits. The Company attempts to minimize the risks related to cash and cash equivalents by investing in money markets with a broad and diverse range of financial instruments. The investment portfolio is maintained in accordance with the Company’s investment policy, which defines allowable investments, specifies credit quality standards and limits the credit exposure of any single issuer. The Company also maintains restricted cash in money market funds that invest primarily in U.S. Treasury securities. The Company has not recognized any losses from credit risks on such accounts during any of the periods presented. The Company believes it is not exposed to significant credit risk on its cash and money market funds.

Fair Value of Financial Instruments

Fair value accounting is applied for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Maintenance and repairs are charged to expense as incurred, and costs of improvements are capitalized. Depreciation and amortization is recognized using the straight-line method over the following estimated useful lives:

Computer equipment and software		3 years
Furniture and fixtures		5 years
Machinery and equipment		5 years
Leasehold improvements		Shorter of lease term or useful life

Impairment of Long Lived Assets and Acquired Intangible Asset

The Company reviews long-lived assets, including property and equipment, and indefinite-lived intangible, for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. An impairment loss would be recognized when the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Impairment, if any, is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. For the year ended December 31, 2015, the Company recorded a $382,000 impairment of property and equipment in research and development within the statement of operations.

Acquired in-process research and development (“IPR&D”) represents the fair value assigned to research and development assets that have not reached technological feasibility. The Company reviews amounts capitalized as acquired IPR&D for impairment at least annually, and whenever events or changes in circumstances indicate that the carrying value of the assets might not be recoverable. If the carrying value of the acquired IPR&D exceeds its fair value, then the intangible asset is written-down to its fair value. As of December 31, 2016, there have been no such impairments. Once the product candidate derived from the indefinite-lived intangible asset has been developed and commercialized, the useful life will be determined, and the carrying value of the finite-lived asset will be amortized prospectively over that estimated useful life. Alternatively, if the product candidate is abandoned, the carrying value of the intangible will be charged to research and development expense.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. The Company tests goodwill for impairment at least annually or more frequently if events or changes in circumstances indicate that this asset may be impaired. The goodwill test is based on our single operating segment and reporting unit structure.

The Company compares the fair value of its reporting unit to its carrying value. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then the Company would need to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of the reporting unit’s goodwill exceeds its implied fair value, then the Company would record an impairment loss equal to the difference. No goodwill impairment was identified through December 31, 2016.

Convertible Preferred Stock Warrant Liability

The Company classified warrants exercisable for shares of the Company’s Series A and Series B convertible preferred stock as derivative liabilities and adjusted their carrying value to fair value at the end of each reporting period as long as such warrants were outstanding. At the end of each reporting period, changes in the fair value of the convertible preferred stock warrant liability during the period were recorded as a component of other expense, net, in the consolidated statements of operations.

Derivative Liability

The Company has a derivative liability related to the contingent consideration associated with the acquisition of InteKrin. There were two contingent payments payable upon the achievement of certain events: (i) the completion of the first dosing of a human subject in the first Phase 2 clinical trial for InteKrin, (“Earn-Out Payment”) and (ii) upon the execution of any license, sublicense, development, collaboration, joint venture, partnering or similar agreement between the Company and the third party (“Compound Transaction Payment”). The derivative related to the contingent consideration is accounted for as a liability and remeasured to fair value as of each balance sheet date and the related remeasurement adjustment is recognized as other income (expense), net in the consolidated statements of operations. The Company determined the fair value of the two contingent consideration scenarios (the Earn-Out Payment and the Compound Transaction Payment) using a probability-weighted discounted cash flow approach. A probability-weighted value was determined by summing the probability of achieving a contingent payment threshold by the respective contingent payments. The expected cash flows were discounted at a rate selected to capture the risk of achieving the contingent payment thresholds and earning the contingent payment. This risk is comprised of InteKrin’s continued development, a specific risk factor associated with meeting the contingent consideration threshold and related payout, and counterparty risk associated with the payment of the contingent consideration.

Accrued Research and Development Expenses

Clinical trial costs are a component of research and development expenses. The Company accrues and expenses clinical trial activities performed by third parties based upon actual work completed in accordance with agreements established with clinical research organizations and clinical sites. The Company determines the actual costs through monitoring patient enrollment, discussions with internal personnel and external service providers as to the progress or stage of completion of trials or services and the agreed-upon fee to be paid for such services.

Revenue Recognition

The Company recognizes revenue when persuasive evidence of an arrangement exists; transfer of technology has been completed, services have been performed or products have been delivered; the fee is fixed and determinable; and collection is reasonably assured.

For revenue agreements with multiple elements, the Company identifies the deliverables included within the agreement and evaluates which deliverables may represent separate units of accounting based on the achievement of certain criteria, including whether the delivered element has stand-alone value to the collaborator. Deliverables under the arrangement are a separate unit of accounting if (i) the delivered item has value to the customer on a standalone basis and (ii) if the arrangement includes a general right of return relative to the delivered item and delivery or performance of the undelivered items are considered probable and substantially within the Company’s control.

The Company determines how to allocate arrangement consideration to identified units of accounting based on the selling price hierarchy provided under the relevant guidance. The selling price used for each unit of accounting is based on vendor-specific objective evidence, if available, third party evidence if vendor-specific objective evidence is not available or estimated selling price if neither vendor-specific nor third-party evidence is available. Management may be required to exercise considerable judgment in determining whether a deliverable is a separate unit of accounting and in estimating the selling prices of identified units of accounting under its agreements.

Upfront payments received in connection with licenses of the Company’s technology rights are deferred if facts and circumstances dictate that the license does not have stand-alone value. Such payments are recognized as license revenue over the estimated period of performance that is generally consistent with the terms of the research and development obligations contained in the specific collaboration and license agreement. The Company regularly reviews the estimated period of performance based on the progress made under each arrangement. Amounts received as funding of research and development activities are recognized as revenue if the collaboration arrangement involves the sale of the Company’s research or development services. However, such funding is recognized as a reduction in research and development expense when the Company engages in a research and development project jointly with another entity, with both entities participating in project activities and sharing costs and potential benefits of the arrangement.

Payments that are contingent upon the achievement of a substantive milestone are recognized in their entirety in the period in which the milestone is achieved, assuming all other revenue recognition criteria are met. A milestones is defined as an event that can only be achieved based on the Company’s performance where there is substantive uncertainty about whether the event will be achieved at the inception of the arrangement. Events that are contingent only on the passage of time or only on counterparty performance are not considered milestones under accounting guidance. The Company’s evaluation includes an assessment of whether (a) the consideration is commensurate with either (1) the Company’s performance to achieve the milestone, or (2) the enhancement of the value of the delivered item(s) as a result of a specific outcome resulting from the Company’s performance to achieve the milestone, (b) the consideration relates solely to past performance and (c) the consideration is reasonable relative to all of the deliverables and payment terms within the arrangement. The Company evaluates factors such as the scientific, regulatory, commercial and other risks that must be overcome to achieve the respective milestone, the level of effort and investment required to achieve the respective milestone and whether the milestone consideration is reasonable relative to all deliverables and payment terms in the arrangement in making this assessment.

Other contingent payments in which a portion of the payment is refundable or adjusts based on future performance or non-performance (e.g., through a penalty or claw-back provision) are not considered to relate solely to the Company’s past performance, and therefore, not considered substantive. Non-substantive contingent payments are classified as deferred revenue if they are ultimately expected to result in revenue recognition. The Company recognizes non-substantive contingent payments over the remaining estimated period of performance once the specific objective is achieved. Any portion of the non-substantive contingent payments which may be required to be refunded to the collaborator are not included in deferred revenue and instead are reflected as contingent liability to collaborator on the consolidated balance sheets.

Contingent payments associated with the achievement of specific objectives in certain contracts that are not considered substantive because the Company does not contribute effort to the achievement of such milestones are recognized as revenue upon achievement of the objective, as long as there are no undelivered elements remaining and no continuing performance obligations by the Company, assuming all other revenue recognition criteria are met.

Revenue from a government contract is recognized in the period during which the related costs are incurred and the related services are rendered, provided that the funds received are not refundable and applicable conditions under the government contract have been met. Funds received in advance are recorded as deferred revenue.

Research and Development Expenses

Research and development costs are charged to expenses as incurred. Research and development expenses include, among other costs, salaries and other personnel-related costs, consultant fees, preclinical costs, cost to manufacture drug candidates and clinical trial costs and supplies, laboratory supplies costs and facility-related costs. Costs incurred under agreements with third parties are charged to expense as incurred in accordance with the specific contractual performance terms of such agreements. Costs of third parties include costs associated with manufacturing drug candidates, preclinical and clinical support activities. In certain cases, amounts received as reimbursement of research and development activities from the Company’s collaborators are recognized as a reduction in research and development expense when the Company engages in a research and development project jointly with another party, with both parties incurring costs while actively participating in project activities and both parties sharing costs and potential benefits of the arrangement. Costs incurred under the arrangements where the Company provides research services approximate the amount of revenues recorded. Advance payments for goods or services to be received in the future to be utilized in research and development activities are deferred and capitalized. The capitalized amounts are expensed as the related goods are delivered or the services are received.

Stock-Based Compensation

The Company measures the cost of equity-based service awards based on the grant-date fair value of the award, and recognizes the cost of such awards straight-line over the vesting period. Because non-cash stock compensation expense is based on awards ultimately expected to vest, it is reduced by an estimate for future forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from estimates.

The Company accounts for equity instruments issued to nonemployees using the fair value approach. These equity instruments consist of stock options and restricted common stock, which are valued using the Black-Scholes option-pricing model. Stock-based compensation expense is recognized as the equity instruments are earned. The measurement of stock-based compensation is subject to periodic adjustments as the underlying equity instruments vest.

The Company utilizes the Black-Scholes option-pricing model for estimating fair value of its stock options and restricted stock granted. Option valuation models, including the Black-Scholes option-pricing model, require the input of highly subjective assumptions, and changes in the assumptions used can materially affect the grant-date fair value of an award. These assumptions include the risk-free rate of interest, expected dividend yield, expected volatility, the expected life of the award, and estimated forfeitures.

Income Taxes

The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial reporting and the tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company must then assess the likelihood that the resulting deferred tax assets will be realized. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized. Due to the Company’s lack of earnings history, the net deferred tax assets have been fully offset by a valuation allowance.

The Company recognizes uncertain income tax positions at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. The Company does not expect its unrecognized tax benefits to change significantly over the next twelve months.

The Company’s policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had accrued no amounts for interest and penalties related to income tax matters in the Company’s consolidated balance sheets at December 31, 2016 and 2015.

Comprehensive Loss

Comprehensive loss is composed of two components: net loss and other comprehensive loss. Other comprehensive loss refers to gains and losses that under U.S. GAAP are recorded as an element of stockholders’ equity, but are excluded from net loss. The Company’s other comprehensive loss included foreign currency translation adjustments for the years ended December 31, 2016, 2015 and 2014.

Net Loss per Share Attributable to Coherus

Basic net loss per share attributable to Coherus is calculated by dividing the net loss attributable to Coherus by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive common shares. Since the Company was in a loss position for all periods presented, basic net loss per share attributable to Coherus is the same as diluted net loss per share attributable to Coherus as the inclusion of all potential dilutive common shares would have been anti-dilutive for all periods presented. Shares of founders’ common stock subject to repurchase are excluded from the calculation of weighted average shares as the vesting of such shares is contingent upon continued services being rendered by such holders.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), which amends the existing accounting standards for revenue recognition. Subsequently, the FASB has issued the following standards related to ASU 2014-09: ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations; ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing; and ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The Company must adopt ASU 2016-08, ASU 2016-10 and ASU 2016-12 with ASU 2014-09 (collectively, the “new revenue standard”) which is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted.

The new revenue standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective method). The Company plans to adopt the standard in the first quarter of 2018 using the modified retrospective method. The Company has evaluated its contracts and assessed that the license agreement with Daiichi Sankyo (see Note 5) is the only contract that would be impacted by the new revenue standard, and the Company is currently evaluating the materiality that this contract may have on its consolidated financial statements and related disclosures.

In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU 2014-15 is effective for our annual reporting period ending December 31, 2016 and all annual and interim reporting periods thereafter. ASU 2014-15 aligns the interpretation of substantial doubt with the definition of “probable” pursuant to ASC 450, Contingencies, meaning that a company’s inability to meet obligations as they come due within one year after the issuance date must be likely to occur. If substantial doubt exists, we are required to disclose as such and to assess whether our plans will or will not alleviate substantial doubt, the results of such assessment determines other specific disclosure requirements. We adopted this standard in the fourth quarter of 2016, performed the requisite analysis and determined that no additional disclosures are necessary.

In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 makes amendments to the classification and measurement of financial instruments and revises the accounting related to: (1) the classification and measurement of investments in equity securities, and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. In addition, the update also amends certain disclosure requirements associated with the fair value of financial instruments. ASU 2016-01 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018, and all annual and interim reporting periods thereafter. Early adoptions of certain amendments within the update are permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-01 will have on its consolidated financial statements and related disclosures.

In February 2016, the FASB issued ASU No. 2016-02, Leases. ASU 2016-02 is aimed at making leasing activities more transparent and comparable, and requires substantially that all leases be recognized by lessees on their balance sheet as a right-of-use asset and corresponding lease liability, including leases currently accounted for as operating leases. ASU 2016-02 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2019, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-02 will have on its consolidated financial statements and related disclosures.

In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 simplifies several aspects of the accounting for share-based payment award transactions, including: (1) the income tax consequences, (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. ASU 2016-09 is effective for the Company’s interim and annual reporting periods beginning on January 1, 2017, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-09 will have on its consolidated financial statements and related disclosures.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15). The amendment to this update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-15 will have on its consolidated financial statements and related disclosures.

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (ASU 2016-16). This update is to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 amends the guidance to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Consequently, the amendments in this update eliminate the exception for an intra-entity transfer of an asset other than inventory. The amendments in this update do not include new disclosure requirements; however, existing disclosure requirements might be applicable when accounting for the current and deferred income taxes for an intra-entity transfer of an asset other than inventory. ASU 2016-16 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2018, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2016-16 will have on its consolidated financial statements and related disclosures.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment (ASU 2017-04), which is to simplify the current requirements for testing goodwill for impairment by eliminating the second step of the two-step impairment test to measure the amount of an impairment loss. ASU 2017-04 is effective for the Company’s interim and annual reporting periods during the year ending December 31, 2020, and all annual and interim reporting periods thereafter. Early adoption is permitted. The Company is currently evaluating the impact that the adoption of ASU 2017-04 will have on its consolidated financial statements and related disclosures.

As of January 1, 2016, the Company adopted ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, that requires debt issuance costs related to a recognized debt liability to be presented in the consolidated balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This ASU 2015-03 requires retrospective application. ASU 2015-03 is limited to the presentation of debt issuance costs applied retrospectively to all prior periods presented in the consolidated financial statements and does not affect the recognition and measurement of debt issuance costs.

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 consolidated financial statements as a result of future adoption.

Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

3.	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 and cash equivalents, accounts receivable, accounts payable and other current liabilities approximate their fair value 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.

The Company’s financial instruments consist of Level 1 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. There were no unrealized gains and losses in the Company’s investments in these money market funds.

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 the contingent consideration.

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

	Fair Value Measurements
	December 31, 2016
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	104,240	$	104,240	$	—	$	—
Restricted cash (money market funds)		845		845		—		—
Total financial assets	$	105,085	$	105,085	$	—	$	—
Liabilities:
Contingent consideration	$	5,550	$	—	$	—	$	5,550

	Fair Value Measurements
	December 31, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	157,784	$	157,784	$	—	$	—
Restricted cash (money market funds)		845		845		—		—
Total financial assets	$	158,629	$	158,629	$	—	$	—
Liabilities:
Contingent consideration	$	1,245	$	—	$	—	$	1,245

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

Contingent Consideration

As part of the InteKrin acquisition, the Company recognized contingent consideration associated with potential payments to be made to the former InteKrin stockholders upon the achievement of certain events specified in the agreements (see Note 6). This fair value measurement is based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. The InteKrin purchase agreement provides for contingent consideration to be paid upon (i) the first dosing of a human subject in the first Phase 2 Clinical Trial for CHS-131 ("Earn-Out Payment") and (ii) per a compound transaction agreement as defined in the purchase agreement (the “Compound Transaction Payment”). The Company valued the two contingent consideration scenarios (the Earn-Out Payment and the Compound Transaction Payment) using a probability-weighted discounted cash flow approach. A probability of reaching each contingent consideration threshold was estimated by Company’s management. As of December 31, 2014, the Earn-Out Payment was expected to occur in January 2015 with a 98% probability of occurrence. As part of that analysis, a 25% risk-adjusted discount rate was used to measure a present value. A separate credit spread was not applied to the Earn-Out Payment fair value since the consideration was to be made in common stock shares. The size of the contingent consideration was a fixed number of common stock shares, but the value fluctuated with the value of a common stock share. The Compound Transaction applied the same 25% risk-adjusted discount rate and also captured an additional 6% credit spread for counterparty credit risk given the cash payment. The Company’s management estimates of probability of occurrence and timing were used to formulate an expected cash flow. The size of the consideration is tiered based on the size of a license or similar agreement with a third party and the timing of such agreement. The change in the fair value of the contingent consideration liability is recognized in other expense, net within the consolidated statement of operations.

On March 6, 2015, the Company achieved the first dosing of a human subject in a phase 2 clinical trial for CHS-131 in multiple sclerosis patients, triggering the obligation to settle the first contingent Earn-Out Payment to former InteKrin stockholders. As a result, the Company issued 358,384 shares of its common stock valued at $27.48 per share and cash of $1,000 for the aggregate amount value of $9.8 million to former InteKrin stockholders. Contemporaneously, the Company recognized the additional fair value of the Earn-Out Payment of $4.1 million to other expense, net, in the consolidated statement of operations on March 6, 2015 and reclassified the contingent consideration liability balance to equity in the consolidated balance sheet. For the years ended December 31, 2015 and 2014, the Company recognized $4.1 million and $5.0 million, respectively, in other expense, net in the consolidated statement of operations for the change in the fair value of the Earn-Out Payment. As of December 31, 2015, the fair value of this contingent consideration liability decreased to $1.2 million to reflect the Earn-Out Payment settlement in March 2015 and the updated fair value estimate of the Compound Transaction Payment.

The fair value measurement of the Compound Transaction Payment uses a probability-weighted discounted cash flow approach based on significant inputs not observable in the market and thus represents a Level 3 measurement within the fair value hierarchy. The Compound Transaction analysis as of December 31, 2016 applied a 25% risk-adjusted discount rate to measure present value and also captured an additional 8% credit spread for counterparty credit risk given the cash payment. The Company’s management estimates of probability of occurrence and timing were used to formulate an expected cash flow. During 2016, the Company reported positive Phase 2b efficacy data on CHS-131, in relapsing remitting multiple sclerosis, and as such management’s probability of occurrence of a Compound Transaction increased from 10% to 33%, and as such, the Company valued the contingent consideration liability at $5.6 million at December 31, 2016. Generally, increases or decreases in the probability of occurrence would result in a directionally similar impact in the fair value measurement of the Compound Transaction Payment and it is estimated that a 1% increase (decrease) in the probability of occurrence would result in a fair value fluctuation of approximately $0.2 million. For the years ended December 31, 2016, 2015 and 2014, the Company recognized $4.3 million, $460,000 and $235,000 of expense in other expense, net in the consolidated statement of operations, respectively, as a result of the change in the fair value of the Compound Transaction Payment.

The following table sets forth a summary of changes in the estimated fair value of the contingent consideration (in thousands):

Balance as of February 12, 2014 (acquisition date)	$	1,310
Change in fair value of the contingent consideration liability		5,185
Balance as of December 31, 2014		6,495
Change in fair value of the contingent consideration liability		4,599
Fair value of Earn-Out Payment settled in common stock on March 6, 2015		(9,849	)
Balance as of December 31, 2015		1,245
Change in fair value of the contingent consideration liability		4,305
Balance as of December 31, 2016	$	5,550

Convertible Notes

The estimated fair value of the 8.2% Convertible Senior Notes Due 2022, which the Company issued on February 29, 2016 (see Note 6) is based on an income approach. The estimated fair value was approximately $168.5 million (par value $100.0 million) as of December 31, 2016 and represents a Level 3 valuation. When determining the estimated fair value of the Company’s long-term debt, the Company uses a single factor binomial lattice model which incorporates the terms and conditions of the convertible notes and market based risk measurement that are indirectly observable, such as credit risk. The lattice model produces an estimated fair value based on changes in the price of the underlying common shares price over successive periods of time. An estimated yield based on market data is used to discount straight debt cash flows. Key valuation assumptions used for the convertible debt valuation was volatility of 60% for the Company’s common stock and straight debt yield of 13.6% as of December 31, 2016.

Organization Consolidation And Presentation Of Financial Statements [Abstract]

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

Balance Sheet Components

12 Months Ended

Dec. 31, 2016

Balance Sheet Components

4.	Balance Sheet Components

Prepaid Assets

Prepaid assets are as follows (in thousands):

	December 31,		December 31,
	2016		2015
Prepaid clinical and other - related parties (see Note 15)	$	3,714	$	10,901
Prepaid clinical, material and manufacturing		25,095		21,191
Prepaid other		2,825		2,651
Prepaid assets	$	31,634	$	34,743

Property and Equipment, Net

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

	December 31,			December 31,
	2016			2015
Machinery and equipment	$	10,294		$	7,809
Computer equipment and software		1,500			1,276
Furniture and fixtures		682			596
Leasehold improvements		4,322			4,343
Total property and equipment		16,798			14,024
Accumulated depreciation and amortization		(6,026	)		(3,520	)
Property and equipment, net	$	10,772		$	10,504

Depreciation and amortization expense was $3.0 million, $1.9 million and $674,000 for the years ended December 31, 2016, 2015 and 2014, respectively.

Accrued Liabilities

Accrued liabilities are as follows (in thousands):

	December 31,		December 31,
	2016		2015
Accrued clinical - related parties (see Note 15)	$	3,542	$	6,122
Accrued clinical and manufacturing		16,039		11,681
Accrued compensation		6,945		4,666
Accrued other		1,496		1,664
Accrued liabilities	$	28,022	$	24,133

Collaboration and License Agreement

12 Months Ended

Dec. 31, 2016

Collaboration And License Agreements [Abstract]

Collaborative and License Agreement

5.	Collaboration and License Agreement

The Company recognized revenue related to the collaboration and license agreements for the periods presented as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Baxalta	$	188,292	$	27,802	$	28,481
Daiichi Sankyo - related party (1)		1,184		2,239		1,893
Total collaboration and license revenue	$	189,476	$	30,041	$	30,374

(1)	Represents revenue from Daiichi Sankyo through November 12, 2014 as a related party, a holder of more than 10% of our common stock until the closing of our initial public offering (“IPO”).

Daiichi Sankyo

In January 2012, the Company entered into a license agreement with Daiichi Sankyo, under which the Company granted certain licenses to Daiichi Sankyo to develop and commercialize biosimilar forms of etanercept and rituximab in Japan, Taiwan, and South Korea with an option to develop in China. Under the terms of the agreement, the Company will be responsible for the manufacturing and supply of the products during the development activities and Daiichi Sankyo will conduct the development, regulatory approval filings, and commercialization activities of the biosimilar form of etanercept and rituximab products in Japan. Once the biosimilar forms of etanercept and rituximab are commercialized, the Company is entitled to royalties based on net sales by Daiichi Sankyo on a product-by-product basis in the licensed territories ranging from the low double digits to high teens, on a product-by-product basis. If the Company is manufacturing product, the Company is eligible to receive an incremental royalty reflecting the manufacturing costs for each licensed product which, when combined with the base royalty, will result in royalties equal to a percentage of net sales of licensed products ranging from the low to high-twenties, on a product-by-product basis.

Upon execution of the agreement, Daiichi Sankyo paid a non-refundable, upfront license fee of $10.0 million and purchased 2,867,426 shares of Series B convertible preferred stock at a price of $6.9749 per share, or $18.1 million in net cash proceeds. The Company concluded that there was no premium or discount associated with the purchase of the Series B convertible preferred stock since Daiichi Sankyo paid the same price paid by other investors at the close of the Series B convertible preferred stock offering. As such the Company recorded the $18.1 million as a convertible preferred stock transaction separate from the license agreement. The agreement has an initial term of ten years and contains provisions allowing Daiichi Sankyo to renew the agreement for an additional three years with respect to particular countries. Daiichi Sankyo also has the right to terminate the agreement, in its entirety or on a country-by country basis, at any time if the development and/or commercialization is deemed to not be commercially viable, there are material safety, efficacy or patient tolerability issues that cannot be remedied or overcome, or during the opt-out window after the achievement of specified objectives in the agreement. In May 2012, Daiichi Sankyo opted out of the development and commercialization of etanercept in Taiwan and South Korea, and in August 2012, Daiichi Sankyo chose not to exercise their option with respect to the development and commercialization of etanercept and rituximab in China.

The Company identified the following deliverables under the agreement: (1) the transfer of intellectual property rights (license), and (2) the manufacture of drug materials for clinical development purposes. The Company considered the provisions of the multiple-element arrangement guidance in determining how to recognize the total consideration of the agreement. The Company has concluded that the license is not a separate unit of accounting because Daiichi Sankyo cannot obtain benefit from the use of the license rights for their intended purpose without the products manufactured by the Company. Daiichi Sankyo must rely upon the Company to manufacture and supply the products necessary for Daiichi Sankyo’s development because the related manufacturing know-how specific to the products is proprietary to the Company and Daiichi Sankyo does not have the right to manufacture the licensed product. The Company determined that neither of the deliverables have standalone value and, therefore, the deliverables are accounted for as a single unit of accounting with the upfront fee recognized as revenue on a straight-line basis over its estimated period of performance of approximately three years. The Company determined that there is no other method that is more appropriate than the straight-line method of revenue recognition for this agreement given there is no discernable pattern of its performance under the arrangement. The Company regularly evaluates the reasonableness of the estimated period of performance and revises the amortization of deferred revenue as deemed appropriate on a prospective basis. As such, the performance period was extended in September 2014 for two quarters, December 2014 for one quarter, September 2015 for two months, May 2016 for four months and December 2016 for six months.

In June 2013, the Company and Daiichi entered into a Memorandum of Understanding No. 1 (the “MOU 1”) in which both parties agreed to cooperate and share costs to conduct a global Phase 1 study of a biosimilar form of etanercept. This program was not originally contemplated in the license agreement. Under the MOU 1, the Company will gather all clinical data, format it into a case study report, and conduct the final analysis. The Company will transfer the clinical data and other regulatory approval application documents for the product and post marketing to Daiichi Sankyo within 90 days after such documents are finalized. Under the MOU 1, Daiichi’s Sankyo’s overall cost sharing responsibility include (i) 33% of the total budgeted cost and (ii) 100% of the cost of the comparator drug (Enbrel) used for the Japanese volunteers. The amounts received from Daiichi Sankyo under this cost sharing responsibility are recognized as a reduction in research and development expense as the Company engages in a research and development project jointly with Daiichi Sankyo, with both parties incurring costs while actively participating in development activities and both parties sharing costs and potential benefits of the arrangement. The Company accounted for the MOU 1 as a separate arrangement which was not deemed to be a material modification of the original license agreement with Daiichi Sankyo.

In January 2014, the Company and Daiichi Sankyo entered into the Memorandum of Understanding No. 2 (the “MOU 2”) in which both parties agreed to cooperate to conduct a global Phase 3 clinical trial in rheumatoid arthritis. In June 2015, the parties also entered into the Memorandum of Understanding No. 3 (the “MOU 3”) in which both parties agreed to cooperate further on a global Phase 3 clinical trial for an open label, safety extension study (“OLSES”) in rheumatoid arthritis. Daiichi Sankyo will be responsible for a minimum of 20% of the cost of the clinical trial. The Company also entered into a clinical supply agreement as part of MOU 2 and MOU 3 in which the Company will supply finished study drug and study comparator drug for Daiichi Sankyo’s use in the Japanese portion of the product’s clinical trial. Daiichi Sankyo reimburses these research and development costs in quarterly advance payments, for which the Company recorded $1.1 million and $1.3 million as advance payments under license agreement in the consolidated balance sheet as of December 31, 2016 and 2015, respectively. The Company will recognize the advance payment as a reduction in the research and development expense when the research and development activity has been performed.

In July 2016 and December 2016, the Company entered into three memoranda of understanding (“MOU 4” “MOU 5” and “MOU 6”) with Daiichi Sankyo. Under MOU 4, MOU 5 and MOU 6, the Company will receive up to $4.5 million for reimbursements of certain past costs incurred and to be incurred and the Company will recognize these reimbursements as a reduction of research and development expenses when the research and development activity is performed.

As of December 31, 2016, $1.6 million of revenue was deferred under all arrangements with Daiichi Sankyo, of which $0.9 million was included in current liabilities and $0.7 million was included in non-current liabilities in the consolidated balance sheet. As of December 31, 2015, $2.8 million of revenue was deferred under all arrangements with Daiichi Sankyo, of which $1.5 million was included in current liabilities and $1.3 million was included in non-current liabilities in the consolidated balance sheet.

The Company recognized in its consolidated statements of operations a reduction of research and development expense related to the costs reimbursed by Daiichi Sankyo of $9.7 million, $16.1 million and $7.1 million for the years ended December 31, 2016, 2015 and 2014, respectively.

Baxalta

The Company entered into a license agreement in August 2013 and two subsequent amendments thereto with Baxalta Incorporated, Baxalta US Inc., and Baxalta GmbH (collectively “Baxalta”) (then Baxter International, Inc., part of Shire plc as of June 2016), to develop and commercialize an etanercept biosimilar molecule, CHS-0214 worldwide, excluding the United States, Japan, Taiwan, South Korea, China and most of the Caribbean and South American nations (as amended, the “Baxalta Agreement”).

Under the terms of the agreement, the Company was responsible in conducting the development and the regulatory activities, and Baxalta was responsible in conducting the commercialization of the etanercept biosimilar product. In consideration of the exclusive, royalty-bearing license to develop, commercialize and use the etanercept biosimilar product, the Company received an upfront payment and was eligible to receive contingent payments composed of clinical development payments and regulatory milestone payments. If the cumulative development costs exceed the cumulative contingent payments, Baxalta would reimburse the Company for the excess cost as set forth in the agreement up to predetermined limits. Once the etanercept biosimilar product commercializes, the Company was entitled to tiered royalties, based on the manufacturing cost as a percentage of net sales of licensed products, ranging from the mid-single digits to the high teens on a country-by-country basis. These royalties were subject to certain offsets and reductions. The agreement had an initial term of ten years and contained provisions allowing Baxalta to renew the agreement for another three years on a country-by-country basis. Baxalta also had the right to terminate the agreement, in its entirety or on a country-by country basis, at any time if the development and/or commercialization is deemed to not be commercially viable, there are material safety, efficacy or patient tolerability issues that cannot be remedied or overcome, if aggregate expenses exceed certain thresholds or after the first commercial sale upon 18 month prior written notice.

The Company identified the following deliverables under the license agreement with Baxalta: 1) the transfer of intellectual property rights (license), (2) the obligation to provide research and development services including the manufacturing and supply of clinical product, and (3) the obligation to participate on various committees.

The Company considered the provisions of the multiple-element arrangement guidance in determining how to recognize the total consideration of the agreement. The Company determined that the license did not have standalone value to Baxalta without the Company’s technical expertise as it relates to the development of the product candidate and committee participation. Additionally, the license to Baxalta did not include the right to manufacture, or have manufactured the product during the development stage, or to conduct any process development activities. Therefore, the Company concluded that these deliverables represent a single unit of accounting under the multiple-element arrangement guidance.

The upfront payment and clinical development payments included contingent payments that were intended to cover development related expenses incurred by the Company, but potentially reimbursable, in part, to Baxalta under certain limited circumstances. The Company concluded that the contingent payments that contain potentially reimbursable amounts to Baxalta are not substantive milestones under the relevant accounting guidance, since the guidance does not allow the substantive milestone components of a payment to be bifurcated from non-substantive milestone components. The amounts that were contingent payments also contained a claw-back feature that, in the event that the Company commercializes the etanercept biosimilar molecule in the U.S. without Baxalta, the Company would have been required to refund a portion of those contingent payments to Baxalta. Therefore, the Company recorded the portion of the non-substantive contingent payment that contained the claw-back feature as a liability and would have continued to record such liability until the earlier of: (1) expiration of the license agreement pursuant to its terms in August 2023, (2) the earlier termination of the license agreement, or (3) the determination, pursuant to the terms of the license agreement, of the third party to commercialize CHS-0214 in the U.S. These amounts were included in the contingent liability to collaborator on the consolidated balance sheets. The portion of the non-substantive milestone payment that did not contain the claw-back feature were recorded as deferred revenue and recognized as license revenue on a straight-line basis over the remaining estimated performance period of approximately three years. The Company determined that there was no other method that was more appropriate than the straight-line method of revenue recognition for this agreement given there was no discernable pattern of performance under the arrangement. The Company regularly evaluated the reasonableness of the estimated period of performance and revised the amortization of deferred revenue on a prospective basis, as such, the performance period were extended in September 2014 for two quarters, December 2014 for one quarter, and September 2015 for two months, prior to the termination of the Baxalta Agreement.

The regulatory milestone payments were considered substantive as the achievement was subject to the significant uncertainty as to the outcome of the development efforts, by the Company, over an extended period of time, and the Company’s substantive performance obligation under the license agreement which included efforts associated with the clinical trials and filing and approval of drug applications by regulatory authorities in various countries. Therefore, the Company recognized revenue associated with these respective contingent payments when each of the specific events were achieved.

Under terms set forth in an amendment to the arrangement, Baxalta purchased an aggregate of 390,167 shares of Company’s common stock at $25.63 per share for aggregate gross proceeds of approximately $10.0 million on September 10, 2015 (see Note 11).

On September 26, 2016, Shire issued a termination notice of the Baxalta Agreement, in its entirety as part of its strategic portfolio review after its acquisition of Baxalta. Upon the termination of the Baxalta Agreement, the Company regained from Shire all development and commercial rights previously licensed under the CHS-0214. There were no further contractual obligations. Therefore, the Company recognized the outstanding balances of deferred revenue of $85.8 million and contingent liability to collaborator of $76.7 million as revenue in its consolidated statements of operations in 2016.

As of December 31, 2015, $92.0 million of revenue was deferred under the arrangements with Baxalta, of which $48.0 million was included in current liabilities and $44.0 million was included in non-current liabilities in the consolidated balance sheet. As of December 31, 2015, $66.3 million was recorded as contingent liability to collaborator in the consolidated balance sheet due to the potential refund to Baxalta.

Acquisition of InteKrin Therapeutics, Inc.

12 Months Ended

Dec. 31, 2016

Business Combinations [Abstract]

Acquisition of InteKrin Therapeutics, Inc.

6.	Acquisition of InteKrin Therapeutics Inc.

On January 8, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) to acquire all of the outstanding shares of InteKrin and its 82.5% majority owned subsidiary, InteKrin Russia. On February 12, 2014, the Company completed the acquisition of InteKrin (the “Merger”) for total consideration of $5.0 million. The acquisition was a related party transaction (see Note 15).

Prior to the Merger, InteKrin was a privately held, clinical-stage biopharmaceutical company focused on the development and commercialization of novel drugs for the treatment of immune diseases such as multiple sclerosis. InteKrin’s primary product candidate is CHS-131, which is in the clinical stage of development. Although CHS-131 is a small molecule and not a protein, its therapeutic focus area was complementary to the Company’s emerging multiple sclerosis biosimilar product pipeline which consists of broader level, central nervous system anti-inflammatory drug candidates. This in turn was complementary to the Company’s systemic focus on anti-inflammatory drug candidates with the anti-tumor necrosis factor (TNF) portfolio composed of etanercept and adalimumab biosimilars. Additionally, the acquisition of InteKrin was a strategic transaction to obtain funding from new investors.

The Company accounted for the InteKrin acquisition as the purchase of a business. The Company expensed the related acquisition costs, consisting primarily of legal expenses in the amount of $134,000. These legal expenses are recorded in general and administrative expense in the consolidated statement of operations for the year ended December 31, 2014. The total consideration of $5.0 million consists of: (a) issuance of 716,645 shares of Series B preferred stock with a fair value of $2.7 million, (b) assumption of InteKrin’s convertible promissory note payable to an InteKrin stockholder, which was concurrently paid off by issuing 243,841 shares of the Company’s Series B convertible preferred stock with a fair value of $1.0 million (c) cash payment of $1,485, and (d) contingent consideration of $1.3 million. The Company determined the fair value of the Series B convertible preferred stock of $3.8174 per share using the PWERM. The non-controlling interest was not deemed to be significant at acquisition.

Pro forma results of operations for this acquisition have not been presented as such results are not material to the Company’s results of operations for the years ended December 31, 2014.

Intangible Asset — In-process Research and Development

The in-process research and development (“IPR&D”) of $2.6 million consists of InteKrin’s CHS-131. The Company determined the fair value of the IPR&D based on the cost to recreate the asset to its current stage as the fair value is not determinable as a result of the lack of financial projections for this asset due to its early development stage. By applying this method, management estimated that $2.6 million of the acquisition consideration represents the fair value of the IPR&D. The IPR&D acquired through the InteKrin acquisition is treated as an indefinite-lived intangible asset and an annual impairment review is performed by management. As of December 31, 2016, there has been no impairment of this IPR&D.

Contingent Consideration

The contingent consideration is made up of two potential payments as discussed below.

Contingent Consideration — Earn-Out Payment: Upon completion of the first dosing of a human subject in the first Phase 2 clinical trial for InteKrin, InteKrin’s stockholders could earn a minimal cash payment and 358,384 shares of the Company’s Series B convertible preferred stock upon the successful achievement of this objective. At the acquisition date, the Company expected the first dosing to be completed in September 2014 and assigned a 75% success probability to the achievement and timing of this event. As such, at the acquisition date, the fair value of the contingent consideration related to this earn-out payment was determined to be $0.8 million. As of the consummation of the IPO in November 2014, such contingent consideration was payable by issuing shares of common stock rather than shares of Series B convertible preferred stock. The contingent consideration related to the earn-out payment was settled in March 2015 (see Note 3).

Contingent Consideration — Compound Transaction Payment: Upon the execution of any license, sublicense, development, collaboration, joint venture, partnering or similar agreement between the Company and a third-party or any agreement between the Company and such third-party to sell all of the assets related to the acquired InteKrin compound to such third-party, the Company will pay former InteKrin’s stockholders cash based on a certain percentage of fees received pursuant to such compound transaction. That payment ranges from 60% of the fees received within one year to 10% after the third anniversary of the date of the final dose administered to the final patient in Phase 2 clinical trial. At the time of the acquisition, the Company estimated that the probability of achieving the compound transaction agreement event was 7.5% of the fair value of this contingent consideration based on a probability weighted determination of both the range of the amount and the likelihood of achieving the estimated payouts. At the acquisition date, the fair value of this contingent consideration from the compound transaction payment was determined to be $0.5 million. The fair value measurement of the contingent consideration related to the compound transaction payment has been performed on a quarterly basis through December 31, 2016 (see Note 3).

At the acquisition date, the Company valued the two contingent consideration scenarios using a probability-weighted discounted cash flow approach. A probability of reaching each contingent consideration threshold was estimated by management. A probability-weighted value was determined by multiplying the probability of achieving a contingent payment threshold by the respective contingent payment. The expected cash flows were discounted at a rate selected to capture the risk of achieving the contingent payment thresholds and earning the contingent payment. This risk is composed of InteKrin’s continued development, a specific risk factor associated with meeting the contingent consideration threshold and related payout and counterparty risk associated with the payment of the contingent consideration.

Goodwill

Goodwill in the amount of $0.9 million resulting from this acquisition comprises the excess of the purchase price over the fair value of the underlying net assets acquired and primarily represents the strategic relationship acquired with InteKrin’s investors. None of this goodwill will be deductible for tax purposes. Under the applicable accounting guidance, goodwill will not be amortized but will be tested for impairment on an annual basis or more frequently if certain indicators are present. As of December 31, 2016, there have been no such impairments.

Government Contract with the Russian Government

In 2012, InteKrin Russia, a subsidiary of InteKrin, was awarded a contract by the Ministry of Industry and Trade of the Russian Federation to perform scientific research and experimental development work for the treatment of multiple sclerosis and conducting its preclinical and clinical studies for a total aggregate amount of 147.9 million RUB ($2.6 million in US dollars as of December 31, 2014) which was expanded multiple years from 2012 to 2015. The contract amount related to the 2014 research period was expected to be 40.0 million RUB. Subsequent to the Company’s acquisition of InteKrin in February 2014, the Company received 12.0 million RUB and 28.0 million RUB in the first and fourth quarter of 2014, respectively, which met all the revenue recognition criteria in the fourth quarter of 2014. Therefore, the Company recognized 40.0 million RUB ($732,000 based on the exchange rate on the date the revenue was recognized) as other revenue in the consolidated statement of operations for the year ended December 31, 2014.

The remaining amounts available under the government contract for 2015 was 39.4 million RUB. The Company received 11.8 million RUB and 27.6 million RUB in Q1 2015 and Q4 2016, respectively. These advance receipts of funding were deferred until the Company met all the revenue recognition criteria in Q4 2016. Therefore, the Company recognized revenue of 39.4 million RUB ($630,000 based on the exchange rate on the date the revenue was recognized) as other revenue in the consolidated statement of operations for the years ended December 31, 2016.

Commitments And Contingencies Disclosure [Abstract]

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1524-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4922-128472

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4934-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4926-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Debt Obligations

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Debt Obligations

7.	Debt Obligations

Bridge Loans

From July 2013 to September 2013, the Company entered into convertible note agreements (the “Bridge Loans”) with various stockholders, employees and institutions for an aggregate principal amount of $10.0 million. The Bridge Loans accrued interest of 8% per annum and would mature on July 15, 2014. The principal and the accrued interest on the Bridge Loans were converted into 5,488,892 shares of Series C convertible preferred stock in May 2014.

In connection with the Bridge Loans, the Company also issued warrants to purchase shares of its convertible preferred stock at an exercise price of $0.0167 per share. The determination of the number of shares issuable pursuant to the 2013 warrants was determined based on 300% of the principal amount of the Bridge Loans divided by the conversion price.

In May 2014, the Company completed an equity financing of Series C convertible preferred stock and, as a result, the Bridge Loans and related accrued interest of $10.6 million automatically converted into 1,058,089 shares of Series C convertible preferred stock and all collateralized security interest were released. In connection with the extinguishment of the Bridge Loans, the Company reacquired the beneficial conversion feature. The intrinsic value of the beneficial conversion feature at the date of the Bridge Loans extinguishment was $3.9 million. This amount is reflected in additional paid in capital. The Company recorded a gain from the extinguishment of the debt in the amount of $2.0 million which is reflected in other income (expense), net in the consolidated statement of operations in the year ended December 31, 2014.

During the year ended December 31, 2014, the Company recognized total interest expense of $3.9 million related to the Bridge Loans’ accrued interest and amortization of the debt discount.

Convertible Notes

On February 29, 2016, the Company issued and sold $100.0 million aggregate principal amount of its 8.2% Convertible Senior Notes (the “Convertible Notes”) and received total net proceeds of approximately $99.2 million, after deducting issuance costs of $0.8 million. The Convertible Notes constitute general, senior unsubordinated obligations of the Company and are guaranteed by certain subsidiaries of the Company. The 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, which commenced on March 31, 2016, and mature on March 31, 2022, unless earlier converted, redeemed or repurchased. If the Company fails to satisfy certain registration or reporting requirements, then additional interest will accrue on the Convertible Notes at a rate of up to 0.50% per annum in the aggregate. The Convertible Notes also bear a premium of 9% of their principal amount, which is payable when the Convertible Notes mature or are repurchased or redeemed by the Company.

The 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.

The Convertible Notes are convertible at the option of the holder at any time prior to the close of business on the business day immediately preceding March 31, 2022 at the initial conversion rate of 44.7387 shares of common stock per $1,000 principal amount of Convertible Notes, which is equivalent to an initial conversion price of approximately $22.35 per share, and is subject to adjustment in certain events. Upon conversion of the Convertible Notes by a holder, the holder will receive shares of the Company’s common stock together, if applicable, with cash in lieu of any fractional share.

The Convertible Notes are redeemable in whole, and not in part, at the Company’s option on or after 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 Convertible Notes. At maturity or redemption, if not earlier converted, the Company will pay 109% of the principal amount of the Convertible Notes maturing or being redeemed, together with accrued and unpaid interest, in cash.

The Convertible Notes contain customary events of default (as defined in the Convertible Note purchase agreement), the occurrence of which could result in the acceleration of all amounts due under the Convertible Notes. These events of default include, among others, certain failures to pay amounts due on the Convertible Notes, to deliver the consideration due upon conversion or to settle uninsured judgments, decrees or orders exceeding $10.0 million, and certain defaults on other indebtedness for money borrowed of at least $10.0 million, insolvency-related events and breaches of representations, subject, in some cases, to a cure period. The Convertible Notes also contain covenants restricting the Company’s ability to incur additional indebtedness for borrowed money or convertible preferred stock and to pay dividends or make distributions on the Company’s equity interests, subject to certain exceptions. As of December 31, 2016, the Company was in full compliance with these covenants and there were no events of default under the Convertible Notes.

The Convertible Notes are accounted for in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options. Pursuant to ASC Subtopic 470-20, the Company evaluated the features embedded in the Convertible Notes and concluded that the embedded features are not required to be bifurcated and accounted for separately from the host debt instrument.

The Company granted the holders of the Convertible Notes certain registration rights requiring the Company to register, under the Securities Act of 1933, as amended, the resale of the shares of common stock issuable upon conversion or settlement of the Convertible Notes.

The following table summarizes information about the components of the Convertible Notes as of December 31, 2016 (in thousands):

	December 31,
	2016
Principal amount of the Convertible Notes	$	81,750
Unamortized debt discount and debt issuance costs		(6,558	)
Convertible Notes	$	75,192
Principal amount of the Convertible Notes - related parties	$	27,250
Unamortized debt discount and debt issuance costs - related parties		(2,186	)
Convertible Notes - related parties	$	25,064
Total Convertible Notes	$	100,256

If the Convertible Notes were converted on December 31, 2016, the holders of the Convertible Notes would receive common shares with an aggregate value of $125.9 million based on the Company’s closing stock price of $28.15.

The following table presents the components of interest expense of the Convertible Notes for the year ended December 31, 2016 (in thousands):

	Twelve Months Ended
	December 31,
	2016
Stated coupon interest	$	5,159
Accretion of debt discount and debt issuance costs		781
Interest expense	$	5,940
Stated coupon interest - related parties	$	1,720
Accretion of debt discount and debt issuance costs - related parties		260
Interest expense - related parties	$	1,980
Total interest expense	$	7,920

The remaining unamortized debt discount and debt offering costs related to the Company’s Convertible Notes of approximately $8.7 million as of December 31, 2016, will be amortized using the effective interest rate over the remaining term of the Convertible Notes of 5.25 years. The annual effective interest rate is 9.48% for the Convertible Notes. During the year ended December 31, 2016, the Company recognized total interest expense of $7.9 million related to the Convertible Notes’ accrued interest and amortization of the debt discount.

Future payments on the Convertible Notes as of December 31, 2016 are as follows (in thousands):

Year ending December 31,
2017	$	8,200
2018		8,200
2019		8,200
2020		8,200
2021 and thereafter		119,250
Total minimum payments		152,050
Less amount representing interest		(43,050	)
Convertible Notes, principal amount		109,000
Less debt discount and debt issuance costs on Convertible Notes		(8,744	)
Net carrying amount of Convertible Notes	$	100,256

Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Commitments and Contingencies

8.	Commitments and Contingencies

Purchase Commitments

The Company enters into contracts in the normal course of business with contract research organizations for preclinical studies and clinical trials and contract manufacturing organizations for the manufacture of drug materials. The contracts are cancellable, with varying provisions regarding termination. If a contract with a specific vendor were to be terminated, the Company would 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.

Facility Leases

The Company leases office spaces for its corporate headquarters in Redwood City, California and for laboratory facilities in Camarillo, California under operating lease agreements. On July 6, 2015, the Company entered into a new office lease (the “New Lease”) with Hudson 333 Twin Dolphin Plaza, LLC (the “Landlord”) to lease approximately 27,532 square feet of office space located in Redwood City, California (the “Premises”) for the Company’s new corporate headquarters. The Company leased office space located in Redwood City, California, pursuant to a lease dated September 26, 2011 (as amended, the “Current Lease”), which expired pursuant to the terms described below under “Amendment to Current Lease.” The New Lease commenced on December 1, 2015 and the Company moved into the new facility in December 2015.

The Company entered into the Seventh Amendment to the Current Lease (the “Seventh Amendment”) with its current landlord when the New Lease was entered into. The Seventh Amendment provided early termination of the Current Lease which was effective in December 2015 when the New Leased commenced.

The New Lease provided for annual base rent of approximately $1.6 million in the first year of the Lease Term, which increases on an annual basis up to approximately $1.9 million for the final year of the Lease Term. The New Lease also provided for certain limited rent abatements in the second year of the Lease Term. The Company will be entitled to a one-time improvement allowance of approximately $1.2 million for costs related to the design and construction of Company improvements that are permanently affixed to the Premises.

In addition, the Company obtained a standby letter of credit (the “Letter of Credit”) in an amount of approximately $0.8 million, which may be drawn down by the Landlord to be applied for certain purposes upon the Company’s breach of any provisions under the New Lease. Provided that no default occurs under the terms of the New Lease, the Company will be entitled to periodically reduce the amount of the Letter of Credit down to approximately $0.3 million as of the last day of the sixtieth full calendar month of the Lease Term. The Company has recorded the $0.8 million Letter of Credit in restricted cash, non-current within its consolidated balance sheet at December 31, 2015.

On September 21, 2016, the Company entered into the Second Amendment (the “Second Amendment”) to the New Lease to lease additional office space of approximately 12,809 square feet such that the total headquarters lease space is approximately 40,341 square feet (“Combined Lease Space”). The Second Amendment commenced on October 24, 2016, and ends on November 30, 2022, which coincides with the New Lease termination date. The Combined Lease Space contains a one-time option to extend the lease term for five years.

The Second Amendment provides for annual base rent on the additional office space of approximately $0.8 million in the first year of the Second Amendment term, which increases on an annual basis up to approximately $0.9 million for the final year of the Second Amendment term and provides for certain limited rent abatements on the additional office space. The Company is also entitled to a one-time improvement allowance of approximately $0.2 million that can be applied towards specified items, including tenant improvement work and base rent.

On December 27, 2016, the Company entered into the Third Amendment (the “Third Amendment”) to the Camarillo lease, the Company’s laboratory facilities, to extend the lease through June 30, 2019 resulting in two additional years of base rent totaling $279,000. In addition, the Third Amendment contains a one-time option to extend the Camarillo lease term for three years.

Rent expense is recognized on a straight-line basis over the term of the leases and accordingly, the Company records the difference between cash rent payments and the recognition of rent expense as a deferred rent liability.

The future minimum lease payments for all of the Company’s leased facilities as of December 31, 2016 are as follows (in thousands):

Year ending December 31,
2017	$	1,961
2018		2,601
2019		2,588
2020		2,595
2021 and thereafter		5,190
Total minimum lease payments	$	14,935

Rent expense was $1.7 million, $1.8 million and $0.8 million for the years ended December 31, 2016, 2015 and 2014, respectively.

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 would assess 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. The Company is subject to one claim and consequently recorded a related liability of $50,000 in 2015. The claim was settled and agreed to by both parties in July 2016.

Convertible Preferred Stock Warrants

12 Months Ended

Dec. 31, 2016

Temporary Equity Disclosure [Abstract]

Convertible Preferred Stock Warrants

9.	Convertible Preferred Stock Warrants

In January 2011, in conjunction with the issuance of the 2011 convertible note agreements, the Company issued warrants to purchase shares of its newly authorized shares of preferred stock upon a financing event (“2011 Warrants A”). In March 2011, as a result of the Series A convertible preferred stock financing event, the 2011 Warrants A became exercisable warrants to purchase 63,923 shares of Series A convertible preferred stock with an exercise price of $1.2503 per share.

From July to December 2011, the Company issued warrants with an exercise price of $0.0167 per share in conjunction with the issuance of the 2011 convertible note agreements (“2011 Warrants B”). In January 2012, as a result of the Series B convertible preferred stock financing event, the 2011 Warrants B became exercisable warrants to purchase 352,448 shares of Series B convertible preferred stock. Prior to the closing of the Company’s IPO in November 2014, all the outstanding 2011 Warrants A and 2011 Warrants B were exercised.

From July to September 2013, the Company issued the 2013 Warrants with the exercise price of $0.0167 per share in conjunction with the issuance of the Bridge Loans (see Note 7). In December 2013, the 2013 Warrants became exercisable to purchase 4,279,620 shares of Series B convertible preferred stock, which were all exercised during April and May 2014.

The 2011 Warrants A, 2011 Warrants B and 2013 Warrants were classified as convertible preferred stock warrant liabilities and subject to remeasurement at each balance sheet date. The fair value of the convertible preferred stock warrants was determined based on Level 3 inputs. During 2014, the warrants were valued using the Probability-Weighted Expected Return Method (“PWERM”) exclusively based on the expectation for an IPO in November 2014. The size of the IPO and the implied pre-money total equity values were used to support the warrants value. Generally, increases (decreases) in the fair value of the underlying preferred stock would result in a directionally similar impact to the fair value measurement.

The change in the fair value of the convertible preferred stock warrant liability was recognized in other expense, net within the consolidated statements of operations. The net change in the fair value of the warrant liability was an increase of $15.9 million for the years ended December 31, 2014. The Company adjusted the liability for changes in fair value at the time of the exercise and then reclassified the liability to the respective series of preferred stock. Any remaining warrants outstanding immediately prior to the Company’s IPO in November 2014 were exercised, for cash or on a net basis, and the fair value of the warrants were recorded to the respective series of convertible preferred.

Common Stock Warrants

12 Months Ended

Dec. 31, 2016

Warrants And Rights Note Disclosure [Abstract]

Common Stock Warrants

10.	Common Stock Warrants

In March 2014, the Company issued warrants to purchase 553,274 shares of common stock with the exercise price of $1.667 per share to two employees and one consultant for past services. The warrants were vested and exercisable upon issuance and would have expired at the earlier of: (i) March 28, 2024, (ii) an IPO or (iii) the consummation of a liquidation even. The grant date fair value per warrant share was $4.95 for employees and $5.42 for the consultant, resulting in warrant valuations of $2.6 million and $144,000 for the employees and consultant, respectively. Due to the immediate vesting and exercisability of the warrants upon issuance, the Company immediately recognized $1.3 million and $1.4 million of stock-based compensation in research and development expense and general and administrative expense, respectively, in the consolidated statement of operations. In November 2014, all of the warrants outstanding to purchase common stock were net exercised, which resulted in the issuance of 491,580 shares of common stock upon the closing of the IPO.

Stockholders' Equity (Deficit)

12 Months Ended

Dec. 31, 2016

Equity Method Investment Summarized Financial Information Liabilities And Equity [Abstract]

Stockholders' Equity (Deficit)

11.	Stockholders’ Equity (Deficit)

Follow-on Offering

In March 2015, the Company’s registration statement on Form S-1 (File No. 333-202936) relating to its follow-on offering of its common stock was declared effective by the SEC. The price of the shares sold in the follow-on offering was $29.00 per share. The follow-on offering closed on April 7, 2015, pursuant to which the Company sold 4,137,931 shares of common stock. The Company received total gross proceeds from the offering of $120.0 million. After deducting underwriting discounts and commissions of $7.2 million and offering expenses of $0.6 million, the net proceeds were $112.2 million.

Private Placement with Baxalta

On September 10, 2015, the Company completed a private placement and entered into a Purchase Agreement with Baxalta. Pursuant to the Purchase Agreement, the Company sold Baxalta an aggregate of 390,167 shares of common stock for aggregate gross proceeds of approximately $10 million. The purchase price for each share was $25.63, which was equal to the closing trading price of the Company's common stock on the NASDAQ Global Market on the day of pricing, September 9, 2015. The securities sold and issued in connection with the private placement are not registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from the registration requirements. In connection with the Purchase Agreement, the Company entered into a Registration Rights Agreement (the “Registration Rights Agreement”) with Baxalta GmbH. Pursuant to the Registration Rights Agreement, the Company filed a registration statement on Form S-3 (File No. 333-208625) with the SEC on December 18, 2015 for purposes of registering the resale of the shares. The Registration Statement on Form S-3 was declared effective by the SEC on January 21, 2016.

Common Stock Offerings

In January 2016, the Company’s shelf registration statement on Form S-3 (File No. 333-208625) (the “Shelf Registration Statement”) was declared effective by the SEC. In May and June 2016, the Company issued and sold 4,025,000 shares of common stock at a price of $18.00 per share. The Company received total gross proceeds from the offering of $72.5 million. After deducting underwriting discounts and commissions of $3.0 million and offering expense of $0.5 million, the net proceeds were $69.0 million.

On October 28, 2016, the Company entered into a sales agreement (the “Sales Agreement”) with Cowen to sell shares of the Company’s common stock, with aggregate gross sales proceeds of up to $100,000,000, from time to time, through an at-the-market equity offering program under which Cowen will act as its sales agent (the “ATM Offering Program”). Cowen is entitled to compensation for its services equal to 3.0% of the gross proceeds of any shares of common stock sold through Cowen under the Sales Agreement. The Company has no obligation to sell any shares under the Sales Agreement, and may at any time suspend solicitation and offers under the Sales Agreement. The shares will be issued pursuant to the Company’s Shelf Registration Statement. The Company filed a prospectus supplement, dated October 28, 2016, with the SEC in connection with the offer and sale of the shares pursuant to the Sales Agreement. In November and December 2016, the Company sold 2,015,987 shares of common stock at a weighted average price of $28.04 per share through its ATM Offering Program and received total gross proceeds in 2016 of $56.5 million. After deducting commissions of $1.7 million and offering expenses of $0.2 million, the net proceeds were $54.6 million.

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

+ Details

Stock Option Plans and Stock-Based Compensation

12 Months Ended

Dec. 31, 2016

Stock Option Plans and Stock-Based Compensation

12.	Stock Option Plans and Stock-Based Compensation

Restricted Common Stock (“Founders Shares”)

During 2010 and 2011, the Company issued shares of restricted common stock to its founders under our founders’ shares agreements (such shares, the “Founders’ Shares”). As of December 31, 2016, all shares were fully vested and there were no shares subject to repurchase. The Company recognized stock-based compensation expense within its consolidated statement of operations of $0, $9,000 and $1.6 million for the years ended December 31, 2016, 2015 and 2014, respectively, related to shares of common stock granted pursuant to the Founders’ Shares agreements.

2010 Stock Plan

In 2010, the Company adopted the 2010 Stock Plan (the “2010 Plan”) and granted options under this plan until November 2014 which is when it was terminated as to future awards, although it continues to govern the terms of options that remain outstanding under the 2010 Plan. The 2010 Plan provided for the Company to grant shares and/or options to purchase shares of common stock to employees, directors, consultants, and other service providers at prices not less than the fair value at the date of grant for incentive stock options and nonstatutory options. These options were granted to generally vest over four years, expire ten years from the date of grant, and are generally exercisable after vesting. Unvested options exercised are subject to the Company’s repurchase right that lapses as the options vest. As of December 31, 2016 and 2015, no shares were subject to repurchase under the 2010 Plan.

In November 2014, the board of directors adopted the Company’s 2014 Equity Incentive Award Plan (the “2014 Plan”) and any remaining unissued shares available under the 2010 Plan were transferred into the 2014 Plan. As such, no more options may be issued under the 2010 Plan.

As of December 31, 2016, a total of 3,843,541 shares of common stock are subject to options outstanding under the 2010 plan, which shares will become available under the 2014 Plan to the extent the options are forfeited or lapse unexercised.

2014 Equity Incentive Award Plan

In October 2014, the Company’s board of directors and its stockholders approved the establishment of the 2014 Equity Incentive Plan (the “2014 Plan”), effective upon the date upon which the registration statement for the IPO was declared effective, which was November 6, 2014. As of the date of the IPO, the Company reserved for issuance under the 2014 Plan a total of 2,300,000 shares of its common stock, plus any additional shares that would otherwise return to the 2010 Plan as a result of forfeiture, termination or expiration of awards previously granted under the 2010 Plan. In addition, the 2014 Plan provides for annual increases in the number of shares available for issuance thereunder on the first business day of each fiscal year, beginning with 2015, equal to four percent (4%) of the number of shares of the Company’s common stock outstanding as of such date or a lesser number of shares as determined by the Company’s board of directors.

2016 Employment Commencement Incentive Plan

In June 2016, the Company adopted the 2016 Employment Commencement Incentive Plan (the “2016 Plan”). The 2016 Plan is designed to comply with the inducement exemption contained in Nasdaq’s Rule 5635(c)(4), which provides for the grant of non-qualified stock options, restricted stock units, restricted stock awards, performance awards, dividend equivalents, deferred stock awards, deferred stock units, stock payment and stock appreciation rights to a person not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to the individual’s entering into employment with the Company. The Company reserved for future issuance under the 2016 Plan a total of 1,000,000 shares of its common stock for new employees. The 2016 Plan does not provide for any annual increases in the number of shares available.

Employee Stock Purchase Plan

In October 2014, the Company’s board of directors and its stockholders approved the establishment of the 2014 Employee Stock Purchase Plan (“ESPP”). The Company will reserve for issuance 320,000 shares of its common stock and provide for annual increases in the number of shares available for issuance on the first business day of each fiscal year, beginning with the Company’s fiscal year following the year of this offering, equal to the lesser of one percent (1%) of the number of shares of the Company’s common stock outstanding as of such date, 320,000 shares of common stock, or a number of shares as determined by the Company’s board of directors. As of December 31, 2016, the Company has not implemented the ESPP.

The following table sets forth the summary of option activities under the 2016, 2014 and 2010 Plans:

				Options Outstanding
	Shares Available for Grant			Number of Options			Weighted-Average Exercise Price
Balances at December 31, 2015		1,083,147			7,808,842		$	12.898
Authorized		2,560,223			—			—
Granted - at fair value		(3,481,090	)		3,481,090			20.134
Exercised		—			(761,587	)		4.349
Forfeited		378,209			(378,209	)		23.235
Balances at December 31, 2016		540,489			10,150,136		$	15.636

Additional information related to the status of options as of December 31, 2016 is summarized as follows:

	Number of Options		Weighted- Average Exercise Price		Weighted- Average Contractual Terms (Years)		Aggregate Intrinsic Value (in thousands)
Options outstanding		10,150,136	$	15.636		8.03	$	130,011
Options vested and expected to vest		10,066,985	$	15.588		8.02	$	129,426
Options vested and exercisable		4,511,193	$	10.278		7.22	$	81,458

Valuation of Awards Granted to Employees

The Company estimated the fair value of each stock award on the date of grant using the Black-Scholes option-pricing model. The weighted average assumptions used to value options granted to employees under the Plan during the years ended December 31, 2016, 2015 and 2014 were as follows:

	Year Ended December 31,
	2016			2015			2014
Expected term (years)		6.00			6.00			6.50
Expected volatility		75	%		78	%		99	%
Risk-free interest rate		1.42	%		1.62	%		2.05	%
Expected dividend yield		0	%		0	%		0	%

Expected Term

The expected term represents the period for which the stock-based awards are expected to be outstanding and is based on the options’ vesting term, contractual term and industry peers.

Expected Volatility

The Company used an average historical stock price volatility of industry peers as representative of future stock price volatility since the Company does not have any trading history for its common stock.

Risk-Free Interest Rate

The Company based the risk-free interest rate by using an equivalent to the expected term based on the U.S. Treasury constant maturity rate as of the date of grant.

Expected Dividends

The Company has not paid and does not anticipate paying any dividends in the near future, and therefore used an expected dividend yield of zero in the valuation model.

The stock-based compensation expense recorded related to options granted to employees was as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Research and development	$	10,856	$	6,460	$	1,580
General and administrative		12,386		8,289		3,934
	$	23,242	$	14,749	$	5,514

During the years ended December 31, 2016, 2015 and 2014, the total estimated fair value of the options vested was $23.2 million, $14.6 million and $4.2 million, respectively and the estimated weighted-average grant-date fair value of options granted was $13.32, $18.42 and $6.65 per share, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2016, 2015 and 2014 was $15.8 million, $22.4 million and $0.4 million, respectively.

As of December 31, 2016, total unrecognized stock-based compensation expenses related to unvested employee stock options was $68.9 million, which is expected to be recognized on a straight-line basis over a weighted-average period of approximately 2.82 years.

In November 2014, the Company entered into a separation agreement with its former CFO and granted accelerated vesting of options and extended the exercise period for those vested options. In connection with the option modification, the Company recognized stock-based compensation expense of $1.2 million to general and administrative expense in its consolidated statements of operations for the year ended December 31, 2014, which is included in the $3.9 million in the above stock-based compensation table.

Nonemployees Stock-Based Compensation

The Company granted 248,650, 198,750 and 113,913 stock options to purchase shares of common stock to nonemployees during the years ended December 31, 2016, 2015 and 2014. The weighted-average exercise price of the options granted in 2016, 2015 and 2014 was $18.16, $26.51 and $4.42 per share, respectively. For the years ended December 31, 2016, 2015 and 2014, the Company recorded stock-based compensation expense related to options granted to nonemployees of $4.2 million, $2.0 million and $1.3 million, respectively. The Company remeasures the fair value of the unvested nonemployee options at each period using the Black-Scholes option-pricing model reflecting the same assumptions as applied to employee options in each of the reported years, other than the expected life, which is assumed to be the remaining contractual life of the options.

Net Loss Per Share Attributable to Coherus

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

13.	Income Taxes

The Company utilizes the liability method of accounting for deferred income taxes. Under this method, deferred tax liabilities and assets are recognized for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. A valuation allowance is established against deferred tax assets because, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The Company’s policy is to record interest and penalties on uncertain tax positions as income tax expense.

The components of loss before income taxes are as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
Domestic	$	(95,776	)	$	(220,059	)	$	(86,927	)
Foreign		(31,561	)		(3,201	)		(206	)
Total	$	(127,337	)	$	(223,260	)	$	(87,133	)

There was no provision for income taxes for all years presented due to the establishment of a full valuation allowance against the Company’s deferred tax assets.

A reconciliation of the statutory U.S. federal rate to the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2016			2015			2014
Percent of pre-tax income:
U.S. federal statutory income tax rate		34.00	%		34.00	%		34.00	%
State taxes, net of federal benefit		1.98			0.70			(1.65	)
Foreign rate differences		(8.43	)		(0.49	)		(0.08	)
Permanent items		(2.02	)		(1.25	)		(10.80	)
Research and development credit		8.38			2.46			3.11
InteKrin purchase price allocation		—			—			0.73
Other		(0.13	)		0.57			0.11
Change in valuation allowance		(33.78	)		(35.99	)		(25.42	)
Effective income tax rate		—	%		—	%		—	%

Significant components of the Company’s net deferred tax assets as of December 31, 2016 and 2015 consist of the following (in thousands):

	December 31,
	2016			2015
Net operating loss carryforwards	$	136,854		$	91,334
Research and development credits		26,172			12,980
Depreciation and amortization		645			778
Stock-based compensation		11,995			5,111
Other accruals		2,495			2,236
Deferred revenue		531			23,237
Gross deferred tax assets		178,692			135,676
In-process research and development		(891	)		(891	)
Gross deferred tax liabilities		(891	)		(891	)
Total net deferred tax asset		177,801			134,785
Less valuation allowance		(177,801	)		(134,785	)
Net deferred tax assets	$	—		$	—

The valuation allowance increased $43.0 million, $79.2 million and $22.1 million during the years ended December 31, 2016, 2015 and 2014, respectively.

As of December 31, 2016, the Company had federal net operating loss carryforwards of approximately $425.6 million, which will start to expire beginning in 2031, and various state net operating loss carryforwards of approximately $115.9 million, which have various expiration dates beginning in 2031. Utilization of the net operating loss carryforwards and credits may be subject to a substantial annual limitation due to the ownership change limitations provided by Section 382 of the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitation may result in the expiration of net operating losses and credits before utilization.

As of December 31, 2016, the Company had federal research and development credit carryforwards of approximately $30.4 million, which will start to expire in 2031, and state research and development credit carryforwards of approximately $10.6 million, which can be carried forward indefinitely.

In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences representing net future deductible amounts become deductible. Due to the Company’s history of losses, and lack of other positive evidence, the Company has determined that it is more likely than not that its net deferred tax assets will not be realized, and therefore, the net deferred tax assets are fully offset by a valuation allowance at December 31, 2016 and 2015.

At December 31, 2016, the portion of the federal net operating loss carryforwards related to stock option deductions is approximately $31.9 million, which is not included in the Company’s gross or net deferred tax assets. Pursuant to ASC 718-740-25-10, the tax effect of the stock option benefit of approximately $10.8 million will be recorded to equity when they reduce cash taxes payable in the future.

The Company files U.S, California, and other state income tax returns with varying statutes of limitations. The tax years from 2011 forward remain open to examination due to the carryover of unused net operating losses and tax credits.

A reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2016 and 2015 is as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Balance at beginning of year	$	10,605	$	3,816	$	749
Additions based on tax positions related to current year		6,111		3,633		861
Additions for tax positions of prior years		1,966		3,156		2,206
Balance at end of year	$	18,682	$	10,605	$	3,816

As of December 31, 2016 and 2015, the Company had approximately $18.7 million and $10.6 million, respectively, of unrecognized benefits, none of which would currently affect the Company’s effective tax rate if recognized due to the Company’s deferred tax assets being fully offset by a valuation allowance. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months. During the years ended December 31, 2016, 2015 and 2014, the Company did not recognize accrued interest and penalties related to unrecognized tax benefits. The Company anticipates approximately $6.4 million decrease in the amount of existing unrecognized tax benefits during the next 12 months as reductions for tax positions of prior years.

Net Loss Per Share Attributable to Coherus

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

14.	Net Loss Per Share Attributable to Coherus

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

	Years Ended December 31,
	2016			2015			2014
Numerator:
Net loss attributable to Coherus	$	(127,337	)	$	(223,260	)	$	(87,133	)
Denominator:
Weighted-average common shares outstanding		41,912,300			37,125,617			8,520,100
Less: weighted-average unvested common shares subject to repurchase (1)		—			(3,609	)		(333,571	)
Weighted-average number of shares used in computing net loss per share attributable to Coherus, basic and diluted		41,912,300			37,122,008			8,186,529
Net loss per share attributable to Coherus, basic and diluted	$	(3.04	)	$	(6.01	)	$	(10.64	)

(1)	Shares were excluded as such shares represent restricted common stock (founders’ shares) which is vesting contingently upon the holders’ continued services to the Company.

The following outstanding dilutive potential shares have been excluded from the calculation of diluted net loss per share attributable to Coherus due to their anti-dilutive effect:

	Outstanding as of December 31,
	2016		2015		2014
Stock options		10,150,136		7,808,842		5,770,307
Shares issuable upon conversion of Convertible Notes		4,473,871		—		—
Total		14,624,007		7,808,842		5,770,307

In addition, 358,384 shares of common stock contingently issuable upon the successful achievement of an objective associated with contingent consideration payable to former InteKrin stockholders have been excluded from the calculation of diluted net loss per share attributable to Coherus for the year ended December 31, 2014. On March 6, 2015, the contingent issuable shares were settled (see Note 3).

Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions

15.	Related Party Transactions

Daiichi Sankyo

In January 2012, Company entered into a license agreement with Daiichi Sankyo (see Note 5), under which the Company issued 2,867,426 shares of Series B convertible preferred stock. As such, Daiichi Sankyo was deemed to be a related party by ownership of more than 10% of the Company’s equity. Upon the consummation of the Company’s IPO, Daiichi Sankyo’s ownership percentage decreased to less than 10% of the Company’s equity; therefore, as of November 2014, Daiichi Sankyo was no longer considered a related party. For the year ended December 31, 2014, the Company recognized related party transactions of $1.9 million as collaboration and license revenue–related party in the Company’s consolidated statements of operations. In addition, the Company recognized $7.1 million as a reduction of research and development expense related to the costs reimbursed by Daiichi Sankyo in the Company’s consolidated statements of operations for the year ended December 31, 2014. The consolidated statements of operations for the years ended December 31, 2016 and 2015 does not reflect any transactions with Daiichi Sankyo as related party.

Transactions Associated with Cook

In January and December 2012, the Company issued a total of 2,150,569 shares of Series B convertible preferred stock to Cook as consideration for past and future services. As such, Cook was deemed to be a related party by ownership of more than 10% of the Company’s equity. During the second quarter of 2014, Cook divested a majority of its shares of the Company’s Series B convertible preferred stock; therefore, as of December 31, 2014, Cook was no longer considered a related party. For the year ended December 31, 2014 the Company recognized $4.5 million of services rendered by Cook within research and development in the consolidated statement of operations. The consolidated statements of operations for the years ended December 31, 2016 and 2015 does not reflect any transactions with Cook as related party.

Transactions Associated with Medpace Agreement

One member of the Company’s board of directors is also the chief executive officer of Medpace Inc. (“Medpace”). As such, Medpace was deemed to be a related party. As of December 31, 2016, the Company had $3.7 million in prepaid assets (prepaid clinical and other–related parties), $2.2 million in current other assets, $0.9 million in accounts payable–related parties, and $3.5 million in accrued and other liabilities (accrued clinical–related parties), all reflected on the Company’s consolidated balance sheet associated with Medpace. As of December 31, 2015, the Company had $10.9 million in prepaid assets (prepaid clinical and other–related parties), $3.5 million in accounts payable–related parties, and $6.1 million in accrued and other liabilities (accrued clinical–related parties), all reflected on the Company’s consolidated balance sheet associated with Medpace. The Company recognized $34.6 million, $42.5 million and $24.1 million during years ended December 31, 2016, 2015 and 2014, respectively, for services rendered by Medpace within research and development expense in the consolidated statements of operations.

Recruiting Services

One member of the Company’s board of directors is a partner of a firm that provides recruiting services to the Company. As such, the recruiting services provided were deemed to be related party transactions. As of December 31, 2016 and 2015, there were no such related party balances in the Company’s consolidated balance sheets. The Company recorded in research and development expense in its consolidated statements of operations, $135,000, $258,000 and $241,000 for the years ended December 31, 2016, 2015 and 2014, respectively, for services rendered by the recruiting company. The Company recorded in general and administrative expense in its consolidated statements of operations, $178,000, $559,000 and $597,000 for the year ended December 31, 2016, 2015 and 2014, respectively, for services rendered by the recruiting company.

Convertible Notes — Related Parties

In the third quarter of 2013, the Company entered into Bridge Loans with certain investors, including existing stockholders, some members of the Company’s board of directors and their affiliated companies and some members of management, for a total aggregate amount of $10.0 million and issued the 2013 Warrants to purchase shares of the Company’s preferred stock at an exercise price of $0.0167 per share (see Note 9). In May 2014, the Company completed a preferred stock financing and contemporaneously the Bridge Loans and the related accrued interest were automatically converted into Series C preferred stock (see Note 7). For the year ended December 31, 2014, the Company recognized $2.7 million of interest expense related to the debt and the amortization of the debt discount in the Company’s consolidated statement of operations.

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

InteKrin Acquisition

In February 2014, the Company completed the acquisition of the InteKrin for total consideration of $5.0 million (see Note 6). Mr. Dennis M. Lanfear, the chief executive officer of the Company, was the chairman of the board and acting president of InteKrin at the time of the acquisition. As such, the InteKrin acquisition was a related party transaction. Mr. Lanfear also owns 10% of the outstanding securities of InteKrin Russia, a majority owned subsidiary of InteKrin.

Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

16.	Subsequent Events

In January 2016, the Company’s Shelf Registration Statement was declared effective by the SEC (see Note 11). On October 28, 2016, the Company entered into a Sales Agreement with Cowen to sell shares of the Company’s common stock, from time to time, through an ATM Offering Program. In January 2017, the Company sold 148,827 shares of common stock at a weighted average price of $28.88 per share through its ATM Offering Program and received total gross proceeds in 2017 of $4.3 million. After deducting commissions of $0.1 million, the net proceeds were $4.2 million.

In February and March 2017, the Company issued and sold 5,294,902 shares of common stock at a price of $24.25 per share. The Company received total gross proceeds from the offering of $128.4 million. After deducting underwriting discounts and commissions of $7.7 million and offering expense of $0.4 million, the net proceeds were $120.3 million.

On March 3, 2017, Amgen Inc. and Amgen USA Inc. filed an action against the Company, KBI BioPharma Inc., the Company’s employee Howard S. Weiser and Does 1-20 in the Superior Court of the State of California, County of Ventura. The complaint alleges that the Company engaged in unfair competition and improperly solicited and hired certain former Amgen employees in order to acquire and access trade secrets and other confidential information belonging to Amgen. The complaint alleges (i) unfair competition under California Business and Professions Code Section 17200 et seq., (ii) misappropriation of trade secrets, (iii) breach of contract, (iv) violation of Penal Code Section 502, (v) breach of duty of loyalty, (vi) aiding and abetting breach of duty of loyalty and (vii) tortious interference with contract, and seeks injunctive relief and monetary damages. The Company is evaluating the potential impact of this matter.

Supplementary Data - Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Information

17.	Supplementary Data – Quarterly Financial Data (Unaudited)

The following table presents certain unaudited consolidated quarterly financial information for each of the quarters ended December 31, 2016 and 2015:

	2016 Quarter End
(in thousands, except per share data)	March 31			June 30			September 30			December 31
Total revenue (1)	$	12,359		$	14,068		$	162,835		$	844
Total operating expenses		76,711			76,804			78,218			74,304
Net income (loss) (1)		(65,538	)		(70,150	)		83,844			(75,944	)
Net income (loss) attributable to Coherus (1)		(65,388	)		(69,967	)		83,939			(75,921	)
Net income (loss) per share attributable to Coherus (1):
Basic		(1.67	)		(1.72	)		1.93			(1.71	)
Diluted		(1.67	)		(1.72	)		1.67			(1.71	)

	2015 Quarter End
	March 31			June 30			September 30			December 31
Total revenue	$	5,810		$	6,866		$	7,167		$	10,198
Total operating expenses		42,558			65,761			78,384			62,405
Net loss		(40,839	)		(59,034	)		(71,485	)		(52,580	)
Net loss attributable to Coherus		(40,725	)		(58,810	)		(71,334	)		(52,391	)
Net loss per share attributable to Coherus, basic and diluted		(1.22	)		(1.56	)		(1.86	)		(1.35	)

(1)

In June 2016, Shire completed its acquisition of Baxalta and as part of its strategic portfolio review issued a termination notice of the Baxalta Agreement in its entirety on September 26, 2016. As such, the Company regained from Shire all development and commercial rights previously licensed under CHS-0214. There were no further contractual obligations. Therefore, the Company recognized the outstanding balances of deferred revenue and contingent liability to collaborator of $85.8 million and $76.7 million, respectively, as revenue in the three months ended September 30, 2016 (see Note 5), and resulted in net income and net income attributable to Coherus for the three months ended September 30, 2016.

Basis of Presentation and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Basis of Consolidation

Reclassification

Use of Estimates

Foreign Currency

Segment Reporting and Customer Concentration

The following table summarizes revenue by geographic region (in thousands):

	Year Ended December 31,
	2016		2015		2014
United States	$	188,292	$	27,802	$	28,481
Rest of world		1,814		2,239		2,625
Total revenue	$	190,106	$	30,041	$	31,106

Customer Concentration

Customers whose collaboration and license revenue accounted for 10% or more of total revenues were as follows:

	Year Ended December 31,
	2016			2015			2014
Baxalta		99	%		93	%		92	%

Deferred Offering Costs

Cash and Cash Equivalents

The Company considers all highly liquid investments with original maturities of 90 days or less at the date of purchase to be cash and cash equivalents.

Restricted Cash

Concentration of Credit Risk

Fair Value of Financial Instruments

Property and Equipment

Computer equipment and software		3 years
Furniture and fixtures		5 years
Machinery and equipment		5 years
Leasehold improvements		Shorter of lease term or useful life

Impairment of Long Lived Assets and Acquired Intangible Asset

Goodwill

Convertible Preferred Stock Warrant Liability

Derivative Liability

Accrued Research and Development Expenses

Revenue Recognition

Research and Development Expense

Research and Development Expenses

Share-Based Compensation

Stock-Based Compensation

Income Taxes

Comprehensive Loss

Net Loss per Share Attributable to Coherus

Recent Accounting Pronouncements

Fair Value Measurements

Level 1 — Quoted prices in active markets for identical 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.

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 the contingent consideration.

Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Revenue by Geographical Region

The following table summarizes revenue by geographic region (in thousands):

	Year Ended December 31,
	2016		2015		2014
United States	$	188,292	$	27,802	$	28,481
Rest of world		1,814		2,239		2,625
Total revenue	$	190,106	$	30,041	$	31,106

Summary of Customers Revenue Accounted for 10% or More of Total Revenue

Customers whose collaboration and license revenue accounted for 10% or more of total revenues were as follows:

	Year Ended December 31,
	2016			2015			2014
Baxalta		99	%		93	%		92	%

Schedule of Estimated Useful Lives of Property Plant and Equipment

Computer equipment and software		3 years
Furniture and fixtures		5 years
Machinery and equipment		5 years
Leasehold improvements		Shorter of lease term or useful life

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

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 are as follows (in thousands):

	Fair Value Measurements
	December 31, 2016
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	104,240	$	104,240	$	—	$	—
Restricted cash (money market funds)		845		845		—		—
Total financial assets	$	105,085	$	105,085	$	—	$	—
Liabilities:
Contingent consideration	$	5,550	$	—	$	—	$	5,550

	Fair Value Measurements
	December 31, 2015
	Total		Level 1		Level 2		Level 3
Assets:
Money market funds	$	157,784	$	157,784	$	—	$	—
Restricted cash (money market funds)		845		845		—		—
Total financial assets	$	158,629	$	158,629	$	—	$	—
Liabilities:
Contingent consideration	$	1,245	$	—	$	—	$	1,245

Summary of Changes in the Estimated Fair Value of Contingent Consideration

The following table sets forth a summary of changes in the estimated fair value of the contingent consideration (in thousands):

Balance as of February 12, 2014 (acquisition date)	$	1,310
Change in fair value of the contingent consideration liability		5,185
Balance as of December 31, 2014		6,495
Change in fair value of the contingent consideration liability		4,599
Fair value of Earn-Out Payment settled in common stock on March 6, 2015		(9,849	)
Balance as of December 31, 2015		1,245
Change in fair value of the contingent consideration liability		4,305
Balance as of December 31, 2016	$	5,550

Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Prepaid Assets

Prepaid assets are as follows (in thousands):

	December 31,		December 31,
	2016		2015
Prepaid clinical and other - related parties (see Note 15)	$	3,714	$	10,901
Prepaid clinical, material and manufacturing		25,095		21,191
Prepaid other		2,825		2,651
Prepaid assets	$	31,634	$	34,743

Schedule of Property and Equipment, Net

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

	December 31,			December 31,
	2016			2015
Machinery and equipment	$	10,294		$	7,809
Computer equipment and software		1,500			1,276
Furniture and fixtures		682			596
Leasehold improvements		4,322			4,343
Total property and equipment		16,798			14,024
Accumulated depreciation and amortization		(6,026	)		(3,520	)
Property and equipment, net	$	10,772		$	10,504

Schedule of Accrued Liabilities

Accrued liabilities are as follows (in thousands):

	December 31,		December 31,
	2016		2015
Accrued clinical - related parties (see Note 15)	$	3,542	$	6,122
Accrued clinical and manufacturing		16,039		11,681
Accrued compensation		6,945		4,666
Accrued other		1,496		1,664
Accrued liabilities	$	28,022	$	24,133

Collaboration and License Agreement (Tables)

12 Months Ended

Dec. 31, 2016

Collaboration And License Agreements [Abstract]

Schedule of Revenue Related to Collaboration and License Agreements

The Company recognized revenue related to the collaboration and license agreements for the periods presented as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Baxalta	$	188,292	$	27,802	$	28,481
Daiichi Sankyo - related party (1)		1,184		2,239		1,893
Total collaboration and license revenue	$	189,476	$	30,041	$	30,374

(1)	Represents revenue from Daiichi Sankyo through November 12, 2014 as a related party, a holder of more than 10% of our common stock until the closing of our initial public offering (“IPO”).

Debt Obligations (Tables)

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Components of Convertible Notes

The following table summarizes information about the components of the Convertible Notes as of December 31, 2016 (in thousands):

	December 31,
	2016
Principal amount of the Convertible Notes	$	81,750
Unamortized debt discount and debt issuance costs		(6,558	)
Convertible Notes	$	75,192
Principal amount of the Convertible Notes - related parties	$	27,250
Unamortized debt discount and debt issuance costs - related parties		(2,186	)
Convertible Notes - related parties	$	25,064
Total Convertible Notes	$	100,256

Components of Interest Expense of Convertible Notes

The following table presents the components of interest expense of the Convertible Notes for the year ended December 31, 2016 (in thousands):

	Twelve Months Ended
	December 31,
	2016
Stated coupon interest	$	5,159
Accretion of debt discount and debt issuance costs		781
Interest expense	$	5,940
Stated coupon interest - related parties	$	1,720
Accretion of debt discount and debt issuance costs - related parties		260
Interest expense - related parties	$	1,980
Total interest expense	$	7,920

Schedule of Future Payments on the Convertible Notes

Future payments on the Convertible Notes as of December 31, 2016 are as follows (in thousands):

Year ending December 31,
2017	$	8,200
2018		8,200
2019		8,200
2020		8,200
2021 and thereafter		119,250
Total minimum payments		152,050
Less amount representing interest		(43,050	)
Convertible Notes, principal amount		109,000
Less debt discount and debt issuance costs on Convertible Notes		(8,744	)
Net carrying amount of Convertible Notes	$	100,256

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2016

Commitments And Contingencies Disclosure [Abstract]

Schedule of Future Minimum Lease Payments for all the Company's Leased Facilities

The future minimum lease payments for all of the Company’s leased facilities as of December 31, 2016 are as follows (in thousands):

Year ending December 31,
2017	$	1,961
2018		2,601
2019		2,588
2020		2,595
2021 and thereafter		5,190
Total minimum lease payments	$	14,935

Stock Option Plans and Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2016

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Option Activities under 2016, 2014 and 2010 Plans

The following table sets forth the summary of option activities under the 2016, 2014 and 2010 Plans:

				Options Outstanding
	Shares Available for Grant			Number of Options			Weighted-Average Exercise Price
Balances at December 31, 2015		1,083,147			7,808,842		$	12.898
Authorized		2,560,223			—			—
Granted - at fair value		(3,481,090	)		3,481,090			20.134
Exercised		—			(761,587	)		4.349
Forfeited		378,209			(378,209	)		23.235
Balances at December 31, 2016		540,489			10,150,136		$	15.636

Summary of Additional Information Related to Status of Options

Additional information related to the status of options as of December 31, 2016 is summarized as follows:

	Number of Options		Weighted- Average Exercise Price		Weighted- Average Contractual Terms (Years)		Aggregate Intrinsic Value (in thousands)
Options outstanding		10,150,136	$	15.636		8.03	$	130,011
Options vested and expected to vest		10,066,985	$	15.588		8.02	$	129,426
Options vested and exercisable		4,511,193	$	10.278		7.22	$	81,458

Schedule of Weighted Average Assumptions Used to Value Options Granted to Employees

The weighted average assumptions used to value options granted to employees under the Plan during the years ended December 31, 2016, 2015 and 2014 were as follows:

	Year Ended December 31,
	2016			2015			2014
Expected term (years)		6.00			6.00			6.50
Expected volatility		75	%		78	%		99	%
Risk-free interest rate		1.42	%		1.62	%		2.05	%
Expected dividend yield		0	%		0	%		0	%

Schedule of Stock-Based Compensation Expense

The stock-based compensation expense recorded related to options granted to employees was as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Research and development	$	10,856	$	6,460	$	1,580
General and administrative		12,386		8,289		3,934
	$	23,242	$	14,749	$	5,514

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Components of Loss Before Income Taxes

The components of loss before income taxes are as follows (in thousands):

	Year Ended December 31,
	2016			2015			2014
Domestic	$	(95,776	)	$	(220,059	)	$	(86,927	)
Foreign		(31,561	)		(3,201	)		(206	)
Total	$	(127,337	)	$	(223,260	)	$	(87,133	)

Reconciliation of Statutory U.S. Federal Rate

A reconciliation of the statutory U.S. federal rate to the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2016			2015			2014
Percent of pre-tax income:
U.S. federal statutory income tax rate		34.00	%		34.00	%		34.00	%
State taxes, net of federal benefit		1.98			0.70			(1.65	)
Foreign rate differences		(8.43	)		(0.49	)		(0.08	)
Permanent items		(2.02	)		(1.25	)		(10.80	)
Research and development credit		8.38			2.46			3.11
InteKrin purchase price allocation		—			—			0.73
Other		(0.13	)		0.57			0.11
Change in valuation allowance		(33.78	)		(35.99	)		(25.42	)
Effective income tax rate		—	%		—	%		—	%

Components of Net Deferred Tax Assets

Significant components of the Company’s net deferred tax assets as of December 31, 2016 and 2015 consist of the following (in thousands):

	December 31,
	2016			2015
Net operating loss carryforwards	$	136,854		$	91,334
Research and development credits		26,172			12,980
Depreciation and amortization		645			778
Stock-based compensation		11,995			5,111
Other accruals		2,495			2,236
Deferred revenue		531			23,237
Gross deferred tax assets		178,692			135,676
In-process research and development		(891	)		(891	)
Gross deferred tax liabilities		(891	)		(891	)
Total net deferred tax asset		177,801			134,785
Less valuation allowance		(177,801	)		(134,785	)
Net deferred tax assets	$	—		$	—

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the Company’s unrecognized tax benefits for the years ended December 31, 2016 and 2015 is as follows (in thousands):

	Year Ended December 31,
	2016		2015		2014
Balance at beginning of year	$	10,605	$	3,816	$	749
Additions based on tax positions related to current year		6,111		3,633		861
Additions for tax positions of prior years		1,966		3,156		2,206
Balance at end of year	$	18,682	$	10,605	$	3,816

Net Loss Per Share Attributable to Coherus (Tables)

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Net Loss Per Share Attributable to Coherus

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

	Years Ended December 31,
	2016			2015			2014
Numerator:
Net loss attributable to Coherus	$	(127,337	)	$	(223,260	)	$	(87,133	)
Denominator:
Weighted-average common shares outstanding		41,912,300			37,125,617			8,520,100
Less: weighted-average unvested common shares subject to repurchase (1)		—			(3,609	)		(333,571	)
Weighted-average number of shares used in computing net loss per share attributable to Coherus, basic and diluted		41,912,300			37,122,008			8,186,529
Net loss per share attributable to Coherus, basic and diluted	$	(3.04	)	$	(6.01	)	$	(10.64	)

(1)	Shares were excluded as such shares represent restricted common stock (founders’ shares) which is vesting contingently upon the holders’ continued services to the Company.

Outstanding Dilutive Potential Shares Excluded from Calculation of Diluted Net Loss Per Share Attributable to Coherus

The following outstanding dilutive potential shares have been excluded from the calculation of diluted net loss per share attributable to Coherus due to their anti-dilutive effect:

	Outstanding as of December 31,
	2016		2015		2014
Stock options		10,150,136		7,808,842		5,770,307
Shares issuable upon conversion of Convertible Notes		4,473,871		—		—
Total		14,624,007		7,808,842		5,770,307

Supplementary Data - Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Financial Information

The following table presents certain unaudited consolidated quarterly financial information for each of the quarters ended December 31, 2016 and 2015:

	2016 Quarter End
(in thousands, except per share data)	March 31			June 30			September 30			December 31
Total revenue (1)	$	12,359		$	14,068		$	162,835		$	844
Total operating expenses		76,711			76,804			78,218			74,304
Net income (loss) (1)		(65,538	)		(70,150	)		83,844			(75,944	)
Net income (loss) attributable to Coherus (1)		(65,388	)		(69,967	)		83,939			(75,921	)
Net income (loss) per share attributable to Coherus (1):
Basic		(1.67	)		(1.72	)		1.93			(1.71	)
Diluted		(1.67	)		(1.72	)		1.67			(1.71	)

	2015 Quarter End
	March 31			June 30			September 30			December 31
Total revenue	$	5,810		$	6,866		$	7,167		$	10,198
Total operating expenses		42,558			65,761			78,384			62,405
Net loss		(40,839	)		(59,034	)		(71,485	)		(52,580	)
Net loss attributable to Coherus		(40,725	)		(58,810	)		(71,334	)		(52,391	)
Net loss per share attributable to Coherus, basic and diluted		(1.22	)		(1.56	)		(1.86	)		(1.35	)

(1)

Organization and Operations - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	2 Months Ended
	Jan. 31, 2017	Mar. 31, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Organization And Operations [Line Items]
Accumulated deficit				$ 537,322	$ 409,985
Cash and cash equivalents				$ 124,947	$ 158,226	$ 150,392	$ 39,554
Common stock, shares issued and sold			4,025,000
Share price			$ 18.00
Common stock, net proceeds			$ 69,000
At-the-Market Equity Offering Program \| Subsequent Event
Organization And Operations [Line Items]
Common stock, shares issued and sold	148,827	5,294,902
Share price	$ 28.88	$ 24.25
Common stock, net proceeds	$ 4,200	$ 120,300

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)	12 Months Ended
	Dec. 31, 2016 USD ($) Segments	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Foreign exchange gain (loss)	$ (53,000)	$ (386,000)	$ 671,000
Number of reportable segment \| Segments	1
Number of operating segments \| Segments	1
Deferred offering costs	$ 0	137,000
Income tax examination, description	less than a 50%
Unrecognized tax benefits, interest and penalties accrued related to income tax matters	$ 0	0
InteKrin Therapeutics Inc
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Impairment of goodwill	0
InteKrin Therapeutics Inc \| In Process Research and Development
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Impairment of property and equipment		$ 382,000
Impairment of intangible assets excluding goodwill	$ 0
RUSSIA \| Coherus Intermediate Corp, InteKrin Therapeutics, Inc.
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Controlling interest, ownership percentage by parent	82.50%

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Revenue by Geographical Region (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2016

^[1]

Mar. 31, 2016

^[1]

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Revenues From External Customers And Long Lived Assets [Line Items]

Revenues From External Customers And Long Lived Assets [Line Items]

$ 844

$ 162,835

$ 14,068

$ 12,359

$ 10,198

$ 7,167

$ 6,866

$ 5,810

$ 190,106

$ 30,041

$ 31,106

United States

Revenues From External Customers And Long Lived Assets [Line Items]

188,292

27,802

28,481

Rest of World

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

$ 1,814

$ 2,239

$ 2,625

[1]

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Customers Revenue Accounted for 10% or More of Total Revenue (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Collaboration and License Revenue \| Customer Concentration Risk \| Baxalta
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]
Percentage of total revenues by single customer	99.00%	93.00%	92.00%

Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2016
Computer Equipment and Software
Property Plant And Equipment [Line Items]
Estimated useful lives	3 years
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Machinery and Equipment
Property Plant And Equipment [Line Items]
Estimated useful lives	5 years
Leasehold Improvements
Property Plant And Equipment [Line Items]
Estimated useful lives, description	Shorter of lease term or useful life

Fair Value Measurements - Additional Information (Details) - USD ($)				12 Months Ended
	Feb. 29, 2016	Mar. 06, 2015	Jan. 08, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Feb. 12, 2014
Fair Value Disclosures [Line Items]
Transfers from Level 1 to Level 3				$ 0	$ 0
Transfers from Level 3 to Level 1				0	0
Other expense, net				3,877,000	4,838,000	$ 18,595,000
Remeasurement of fair-value contingent consideration				4,305,000	4,599,000	5,185,000
8.2% Senior Convertible Notes Due 2022
Fair Value Disclosures [Line Items]
Aggregate principal amount	$ 100,000,000
Convertible notes, interest rate	8.20%
Debt instrument maturity date	Mar. 31, 2022
Other Expense, Net
Fair Value Disclosures [Line Items]
Remeasurement of fair-value contingent consideration				4,300,000	460,000	235,000
InteKrin Therapeutics Inc
Fair Value Disclosures [Line Items]
Business acquisition, number of shares issued		358,384
Business acquisition, share price		$ 27.48
Business acquisition, cash payment		$ 1,000	$ 1,485
Business acquisition, value of shares issued		9,800,000
Additional fair value of earn-out payment to other expense		$ 4,100,000
Other expense, net					4,100,000	5,000,000
Contingent Consideration
Fair Value Disclosures [Line Items]
Financial liabilities				5,550,000	$ 1,245,000	$ 6,495,000	$ 1,310,000
Level 3 \| 8.2% Senior Convertible Notes Due 2022
Fair Value Disclosures [Line Items]
Debt instrument fair value				$ 168,500,000
Level 3 \| Long-Term Debt \| Convertible Debt
Fair Value Disclosures [Line Items]
Fair value assumption, volatility rate				60.00%
Level 3 \| Long-Term Debt \| Straight Debt
Fair Value Disclosures [Line Items]
Discount rate				13.60%
Fair Value Measurements Recurring Basis \| Level 3 \| Contingent Consideration
Fair Value Disclosures [Line Items]
Expected probability of earn-out payment occurrence						98.00%
Discount rate				25.00%		25.00%
Counterparty credit risk given the cash payment				8.00%		6.00%
Expected probability of compound transaction payment occurrence				33.00%	10.00%
Increase (decrease) in expected probability of compound transaction payment occurrence				1.00%
Estimated fair value fluctuation of Compound Transaction Payment				$ 200,000
Fair Value Measurements Recurring Basis \| Money Market Funds \| Level 1
Fair Value Disclosures [Line Items]
Unrealized gains and losses on investments				$ 0

Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value Measurements Recurring Basis - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 105,085	$ 158,629
Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	5,550	1,245
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	105,085	158,629
Level 3 \| Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	5,550	1,245
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	104,240	157,784
Money Market Funds \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	104,240	157,784
Restricted Cash (Money Market Funds)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	845	845
Restricted Cash (Money Market Funds) \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 845	$ 845

Fair Value Measurements - Summary of Changes in the Estimated Fair Value of Contingent Consideration (Details) - USD ($) $ in Thousands	11 Months Ended	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Fair value of Earn-Out Payment settled in common stock on March 6, 2015			$ (9,849)
Contingent Consideration
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 1,310	$ 1,245	6,495
Change in fair value of the contingent consideration liability	5,185	4,305	4,599
Fair value of Earn-Out Payment settled in common stock on March 6, 2015			(9,849)
Ending balance	$ 6,495	$ 5,550	$ 1,245

Balance Sheet Components - Schedule of Prepaid Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule Of Prepaid Assets [Line Items]
Prepaid assets	$ 31,634	$ 34,743
Prepaid Clinical and Other Related Parties
Schedule Of Prepaid Assets [Line Items]
Prepaid assets	3,714	10,901
Prepaid Clinical, Material and Manufacturing
Schedule Of Prepaid Assets [Line Items]
Prepaid assets	25,095	21,191
Prepaid Other
Schedule Of Prepaid Assets [Line Items]
Prepaid assets	$ 2,825	$ 2,651

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Total property and equipment	$ 16,798	$ 14,024
Accumulated depreciation and amortization	(6,026)	(3,520)
Property and equipment, net	10,772	10,504
Machinery and Equipment
Property Plant And Equipment [Line Items]
Total property and equipment	10,294	7,809
Computer Equipment and Software
Property Plant And Equipment [Line Items]
Total property and equipment	1,500	1,276
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Total property and equipment	682	596
Leasehold Improvements
Property Plant And Equipment [Line Items]
Total property and equipment	$ 4,322	$ 4,343

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property Plant And Equipment [Abstract]
Depreciation and amortization	$ 2,996	$ 1,869	$ 674

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Payables And Accruals [Abstract]
Accrued clinical - related parties	$ 3,542	$ 6,122
Accrued clinical and manufacturing	16,039	11,681
Accrued compensation	6,945	4,666
Accrued other	1,496	1,664
Accrued liabilities	$ 28,022	$ 24,133

Collaboration and License Agreement - Schedule of Revenue Related to Collaboration and License Agreements (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Baxalta License Agreement

$ 189,476

$ 30,041

$ 30,374

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Daiichi Sankyo - Related Party

188,292

27,802

28,481

Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]

Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Abstract]

^[1]

$ 1,184

$ 2,239

$ 1,893

[1]	Represents revenue from Daiichi Sankyo through November 12, 2014 as a related party, a holder of more than 10% of our common stock until the closing of our initial public offering (“IPO”).

Collaboration and License Agreement - Schedule of Revenue Related to Collaboration and License Agreements (Parenthetical) (Details)	Nov. 12, 2014
Daiichi Sankyo - Related Party
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Percentage of equity interest held by related party, minimum	10.00%

Collaboration and License Agreement - Additional Information (Details) - USD ($)		1 Months Ended			2 Months Ended	3 Months Ended	12 Months Ended
	Sep. 10, 2015	Jun. 30, 2015	Jun. 30, 2013	Jan. 31, 2012	Jun. 30, 2016	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 26, 2016
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Proceeds from issuance of convertible preferred stock, net of issuance costs									$ 54,660,000
Advance payments under license agreement							$ 1,070,000	$ 1,330,000
Deferred revenue, current							892,000	49,621,000
Deferred revenue, non-current							669,000	45,338,000
Common stock, shares issued and sold					4,025,000
Issuance price per share of convertible preferred stock					$ 18.00
Gross proceeds from issuance of common stock					$ 72,500,000
Contingent liability to collaborator								66,255,000
Daiichi Sankyo License Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred revenue				$ 10,000,000			$ 1,600,000	2,800,000
Initial term of agreement				10 years
Renewal term of agreement				3 years
Estimated period of performance upfront fee							3 years
License agreement finalized period			90 days
Percentage of budgeted cost, total			33.00%
Percentage of cost of comparator drug			100.00%
Minimum percentage of clinical trial cost		20.00%
Advance payments under license agreement							$ 1,100,000	1,300,000
Reimbursement of past cost incurred and to be incurred							4,500,000
Deferred revenue, current							900,000	1,500,000
Deferred revenue, non-current							700,000	1,300,000
Research and development							$ 9,700,000	16,100,000	$ 7,100,000
Daiichi Sankyo License Agreement \| Series B Convertible Preferred Stock
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Convertible preferred stock, shares issued				2,867,426
Convertible preferred stock, par value				$ 6.9749
Proceeds from issuance of convertible preferred stock, net of issuance costs				$ 18,100,000
Daiichi Sankyo License Agreement \| Convertible Preferred Stock
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Convertible preferred stock				$ 18,100,000
Baxalta License Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred revenue								92,000,000
Initial term of agreement							10 years
Renewal term of agreement							3 years
Deferred revenue, current								48,000,000
Deferred revenue, non-current								44,000,000
Business acquisition date							Jun. 03, 2016
Expiration of license agreement							2023-08
Deferred revenue recognized						$ 85,800,000	$ 85,800,000
Collaboration Agreement Contingent Liability Noncurrent Recognized						$ 76,700,000	76,700,000
Contractual obligations							$ 0			$ 0
Contingent liability to collaborator								$ 66,300,000
Baxalta Second Amendment \| Private Placement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Common stock, shares issued and sold	390,167
Issuance price per share of convertible preferred stock	$ 25.63
Gross proceeds from issuance of common stock	$ 10,000,000

Acquisition of InteKrin Therapeutics, Inc. - Additional Information (Details) $ / shares in Units, ₽ in Millions			1 Months Ended	12 Months Ended
	Mar. 06, 2015 USD ($) $ / shares shares	Jan. 08, 2014 USD ($) $ / shares shares	Feb. 28, 2014 USD ($)	Dec. 31, 2016 USD ($) Agreement shares	Dec. 31, 2016 RUB (₽) shares	Dec. 31, 2015 RUB (₽)	Dec. 31, 2014 USD ($)	Dec. 31, 2014 RUB (₽)	Dec. 30, 2016 RUB (₽)	Dec. 31, 2015 USD ($)	Mar. 31, 2015 RUB (₽)	Mar. 31, 2014 RUB (₽)	Feb. 12, 2014 USD ($)
Business Acquisition [Line Items]
Number of contingent consideration for potential payments \| Agreement				2
Contingent consideration, probability of completion				75.00%	75.00%
Fair value inputs contingent probability				7.50%	7.50%
Goodwill				$ 943,000						$ 943,000
Maximum \| Year One
Business Acquisition [Line Items]
Percent of administrative fees received				60.00%	60.00%
Minimum \| Year Three
Business Acquisition [Line Items]
Percent of administrative fees received				10.00%	10.00%
Contingent Consideration Earn-out Payment
Business Acquisition [Line Items]
Fair value of contingent consideration													$ 800,000
Contingent Consideration Compound Transaction Payment
Business Acquisition [Line Items]
Fair value of contingent consideration													$ 500,000
Series B Convertible Preferred Stock
Business Acquisition [Line Items]
Business acquisition, number of shares issued \| shares				358,384	358,384
InteKrin Therapeutics Inc
Business Acquisition [Line Items]
Business acquisition, date of acquisition agreement		Jan. 08, 2014
Business acquisition, description of acquired entity				All of the outstanding shares of InteKrin and its 82.5% majority owned subsidiary, InteKrin Russia	All of the outstanding shares of InteKrin and its 82.5% majority owned subsidiary, InteKrin Russia
Business acquisition, effective date of acquisition		Feb. 12, 2014
Business combination consideration transferred		$ 5,000,000	$ 5,000,000
Business combination, reason for business combination				Additionally, the acquisition of InteKrin was a strategic transaction to obtain funding from new investors.	Additionally, the acquisition of InteKrin was a strategic transaction to obtain funding from new investors.
Business acquisition, number of shares issued \| shares	358,384
Business acquisition, cash payment	$ 1,000	1,485
Business acquisition, contingent consideration		$ 1,300,000
Business acquisition, share price \| $ / shares	$ 27.48
Goodwill				$ 900,000
Goodwill deductible for tax purposes				0
Impairment of goodwill				0
Government contract amount							$ 2,600,000	₽ 147.9
Deferred revenue \| ₽								28.0	₽ 27.6		₽ 11.8	₽ 12.0
InteKrin Therapeutics Inc \| Two Thousand Fourteen
Business Acquisition [Line Items]
Government contract amount \| ₽								40.0
InteKrin Therapeutics Inc \| Two Thousand Fifteen
Business Acquisition [Line Items]
Government contract amount \| ₽						₽ 39.4
InteKrin Therapeutics Inc \| In Process Research and Development
Business Acquisition [Line Items]
Estimated acquisition represents fair value				2,600,000
Impairment of intangible assets excluding goodwill				$ 0
InteKrin Therapeutics Inc \| Series B Convertible Preferred Stock
Business Acquisition [Line Items]
Business acquisition, number of shares issued \| shares		716,645
Business acquisition, value of shares issued		$ 2,700,000
Business acquisition, fair value method				PWERM	PWERM
InteKrin Therapeutics Inc \| Series B Convertible Preferred Stock
Business Acquisition [Line Items]
Business acquisition, number of shares issued \| shares		243,841
Business acquisition, value of shares issued		$ 1,000,000
InteKrin Therapeutics Inc \| General and Administrative Expense
Business Acquisition [Line Items]
Business acquisition costs, legal expenses							134,000
InteKrin Therapeutics Inc \| Other Income
Business Acquisition [Line Items]
Deferred revenue recognized				$ 630,000	₽ 39.4		$ 732,000	₽ 40.0
InteKrin Therapeutics Inc \| PWERM \| Series B Convertible Preferred Stock
Business Acquisition [Line Items]
Business acquisition, share price \| $ / shares		$ 3.8174
Coherus Intermediate Corp, InteKrin Therapeutics, Inc. \| RUSSIA \| InteKrin Therapeutics Inc
Business Acquisition [Line Items]
Controlling interest, ownership percentage by parent		82.50%

Debt Obligations - Additional Information (Details)		1 Months Ended	9 Months Ended	12 Months Ended
Debt Obligations - Additional Information (Details)	Feb. 29, 2016 USD ($) d $ / shares shares	May 31, 2014 USD ($) shares	Sep. 30, 2014 $ / shares	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2014 USD ($) shares	Dec. 31, 2015 shares	Sep. 30, 2013 USD ($)
Debt Instrument [Line Items]
Preferred stock, shares issued \| shares				0		0
Gains on extinguishment of debt					$ 2,048,000
Proceeds from issuance of convertible notes				$ 75,000,000
KKR Member
Debt Instrument [Line Items]
Aggregate principal amount	$ 20,000,000
MX II Member
Debt Instrument [Line Items]
Aggregate principal amount	4,000,000
KMGCP Member
Debt Instrument [Line Items]
Aggregate principal amount	1,000,000
HRP III Member
Debt Instrument [Line Items]
Aggregate principal amount	75,000,000
8.2% Senior Convertible Notes Due 2022
Debt Instrument [Line Items]
Aggregate principal amount	$ 100,000,000
Convertible notes, interest rate	8.20%
Debt instrument maturity date	Mar. 31, 2022
Total interest expense related to accrued interest and amortization of debt discount				$ 7,900,000
Proceeds from issuance of convertible notes	$ 99,200,000
Convertible notes, Issuance Cost	$ 800,000
Convertible notes, interest rate description				The 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, which commenced on March 31, 2016
Convertible notes, premium percentage	9.00%
Common shares at conversion \| shares	44.7387
Conversion price per common share \| $ / shares	$ 22.35
Principal amount of notes converted into shares	$ 1,000
Percentage of applicable conversion price	160.00%
Convertible trading days \| d	20
Convertible consecutive trading days	30 days
Percentage to pay in cash of the par value of notes	109.00%
Minimum order amount to be settled				$ 10,000,000
Minimum borrowings for indebtedness defaulters				$ 10,000,000
Convertible notes, covenant compliance				As of December 31, 2016, the Company was in full compliance with these covenants and there were no events of default under the Convertible Notes.
Convertible notes, converted amount				$ 125,900,000
Closing stock, price per share \| $ / shares				$ 28.15
Unamortized debt discount and debt issuance costs on Convertible Notes				$ 8,744,000
Amortized effective interest rate convertible notes period				5 years 3 months
Convertible notes, effective interest rate				9.48%
8.2% Senior Convertible Notes Due 2022 \| Maximum
Debt Instrument [Line Items]
Additional interest to be accrued upon failure of registration or reporting requirements	0.50%
Series C Convertible Preferred Stock
Debt Instrument [Line Items]
Preferred stock, shares issued \| shares		5,488,892
Issuance of convertible preferred stock shares upon conversion of convertible promissory notes, Shares \| shares		1,058,089			1,058,089
Convertible Preferred Stock
Debt Instrument [Line Items]
Warrant exercise price \| $ / shares			$ 0.0167
Convertible Debt
Debt Instrument [Line Items]
Aggregate principal amount							$ 10,000,000
Convertible notes, interest rate							8.00%
Debt instrument maturity date				Jul. 15, 2014
Bridge Loan
Debt Instrument [Line Items]
Percentage on shares issuable to warrants			300.00%
Bridge loans and related accrued interest		$ 10,600,000
Intrinsic value on loans extinguishment		$ 3,900,000
Gains on extinguishment of debt					$ 2,000,000
Total interest expense related to accrued interest and amortization of debt discount					$ 3,900,000

Debt Obligations - Components of Convertible Notes (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Feb. 29, 2016
Debt Instrument [Line Items]
Convertible Notes	$ 75,192
Convertible Notes - related parties	25,064
8.2% Senior Convertible Notes Due 2022
Debt Instrument [Line Items]
Principal amount of the Convertible Notes		$ 100,000
Unamortized debt discount and debt issuance costs	(8,744)
Total Convertible Notes	100,256
8.2% Senior Convertible Notes Due 2022 \| Related Party Debt
Debt Instrument [Line Items]
Principal amount of the Convertible Notes	27,250
Unamortized debt discount and debt issuance costs	(2,186)
Convertible Notes - related parties	25,064
8.2% Senior Convertible Notes Due 2022 \| Parent Company
Debt Instrument [Line Items]
Principal amount of the Convertible Notes	81,750
Unamortized debt discount and debt issuance costs	(6,558)
Convertible Notes	$ 75,192

Debt Obligations - Components of Interest Expense of Convertible Notes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Accretion of debt discount and debt issuance costs	$ 1,041	$ (38)	$ 3,897
Interest expense	1,980	0	2,687
Total interest expense	7,980	$ 33	$ 3,900
8.2% Senior Convertible Notes Due 2022
Debt Instrument [Line Items]
Interest expense	7,900
Total interest expense	7,920
8.2% Senior Convertible Notes Due 2022 \| Related Party Debt
Debt Instrument [Line Items]
Stated coupon interest	1,720
Accretion of debt discount and debt issuance costs	260
Interest expense	1,980
8.2% Senior Convertible Notes Due 2022 \| Parent Company
Debt Instrument [Line Items]
Stated coupon interest	5,159
Accretion of debt discount and debt issuance costs	781
Interest expense	$ 5,940

Debt Obligations - Schedule of Future Payments on the Convertible Notes (Details) - 8.2% Senior Convertible Notes Due 2022 $ in Thousands	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
2017	$ 8,200
2018	8,200
2019	8,200
2020	8,200
2021 and thereafter	119,250
Total minimum payments	152,050
Less amount representing interest	(43,050)
Convertible Notes, principal amount	109,000
Less debt discount and debt issuance costs on Convertible Notes	(8,744)
Net carrying amount of Convertible Notes	$ 100,256

Commitments and Contingencies - Additional Information (Details)				12 Months Ended
	Dec. 27, 2016 USD ($)	Sep. 21, 2016 USD ($) ft²	Jul. 06, 2015 USD ($) ft²	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)
Purchase Commitment Excluding Longterm Commitment [Line Items]
Area of office space leased \| ft²		40,341
Current lease, leased date				Sep. 26, 2011
Rent expense				$ 1,700,000	$ 1,800,000	$ 800,000
Guarantor liability					50,000
New Lease Agreement
Purchase Commitment Excluding Longterm Commitment [Line Items]
Lease Commencement Date				Dec. 01, 2015
Annual base rent for the first year of additional term			$ 1,600,000
One-time improvement allowance			1,200,000
New Lease Agreement \| Letter of Credit
Purchase Commitment Excluding Longterm Commitment [Line Items]
Letter of credit amount			800,000		$ 800,000
Letter of credit amount at the end of lease term			300,000
New Lease Agreement \| Maximum
Purchase Commitment Excluding Longterm Commitment [Line Items]
Rent for the final year of additional term			$ 1,900,000
New Lease Agreement \| Hudson 333 Twin Dolphin Plaza, LLC
Purchase Commitment Excluding Longterm Commitment [Line Items]
Area of office space leased \| ft²			27,532
Seventh Amendment to Current Lease
Purchase Commitment Excluding Longterm Commitment [Line Items]
Lease termination description				The Seventh Amendment provided early termination of the Current Lease which was effective in December 2015 when the New Leased commenced
Lease expiration date				Apr. 30, 2017
Second Amendment Agreement
Purchase Commitment Excluding Longterm Commitment [Line Items]
Area of office space leased \| ft²		12,809
Annual base rent for the first year of additional term		$ 800,000
One-time improvement allowance		200,000
Second Amendment Agreement \| Maximum
Purchase Commitment Excluding Longterm Commitment [Line Items]
Rent for the final year of additional term		$ 900,000
Corporate Headquarters Lease
Purchase Commitment Excluding Longterm Commitment [Line Items]
Lease Commencement Date		Oct. 24, 2016
Lease expiration date		Nov. 30, 2022
Leases extended expiration period		5 years
Third Amendment Agreement
Purchase Commitment Excluding Longterm Commitment [Line Items]
Lease expiration date	Jun. 30, 2019
Leases extended expiration period	3 years
Number of additional years of base rent	2 years
Rent expense	$ 279,000

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for all the Company's Leased Facilities (Details) $ in Thousands	Dec. 31, 2016 USD ($)
Commitments And Contingencies Disclosure [Abstract]
2017	$ 1,961
2018	2,601
2019	2,588
2020	2,595
2021 and thereafter	5,190
Total minimum lease payments	$ 14,935

Convertible Preferred Stock Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2014	May 31, 2014	Sep. 30, 2013	Jan. 31, 2012	Dec. 31, 2011	Mar. 31, 2011
Class Of Stock [Line Items]
Change in fair value of Warrant liability	$ 15.9
2011 Warrants A \| Series A Convertible Preferred Stock
Class Of Stock [Line Items]
Stock issued for warrant exercised						63,923
Convertible preferred stock conversion price						$ 1.2503
Two Thousand And Eleven Warrants B
Class Of Stock [Line Items]
Warrant exercise price					$ 0.0167
Two Thousand And Eleven Warrants B \| Series B Convertible Preferred Stock
Class Of Stock [Line Items]
Stock issued for warrant exercised				352,448
2013 Warrants \| Bridge Loan
Class Of Stock [Line Items]
Warrant exercise price			$ 0.0167
2013 Warrants \| Series B Convertible Preferred Stock \| Bridge Loan
Class Of Stock [Line Items]
Stock issued for warrant exercised		4,279,620

Common Stock Warrants - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended
	Mar. 31, 2014	Nov. 12, 2014
Common Stock
Class Of Warrant Or Right [Line Items]
Issued warrants to purchase shares of common stock	553,274
Common stock, exercise price	$ 1.667
Common Stock \| IPO
Class Of Warrant Or Right [Line Items]
Issued warrants to purchase shares of common stock		491,580
Warrant Issued For Past Services \| Research and Development Expense
Class Of Warrant Or Right [Line Items]
Stock-based compensation expense	$ 1,300
Warrant Issued For Past Services \| General and Administrative Expense
Class Of Warrant Or Right [Line Items]
Stock-based compensation expense	$ 1,400
Employee Warrants
Class Of Warrant Or Right [Line Items]
Common stock, per share value	$ 4.95
Employee Warrants \| Common Stock
Class Of Warrant Or Right [Line Items]
Initial fair value of the warrants	$ 2,600
Consultant Warrants
Class Of Warrant Or Right [Line Items]
Common stock, per share value	$ 5.42
Consultant Warrants \| Common Stock
Class Of Warrant Or Right [Line Items]
Initial fair value of the warrants	$ 144

Stockholders' Equity (Deficit) - Additional Information (Details) - USD ($)				2 Months Ended
	Oct. 28, 2016	Sep. 10, 2015	Apr. 07, 2015	Dec. 31, 2016	Jun. 30, 2016
Class Of Stock [Line Items]
Issuance price per share of convertible preferred stock					$ 18.00
Common stock, shares issued and sold					4,025,000
Gross proceeds from issuance of common stock					$ 72,500,000
Underwriting discounts and commissions					3,000,000
Offering expense					500,000
Common stock, net proceeds					$ 69,000,000
Follow-On Public Offering
Class Of Stock [Line Items]
Issuance price per share of convertible preferred stock			$ 29.00
Common stock, shares issued and sold			4,137,931
Gross proceeds from issuance of common stock			$ 120,000,000
Underwriting discounts and commissions			7,200,000
Offering expense			600,000
Common stock, net proceeds			$ 112,200,000
Private Placement \| Baxalta Second Amendment
Class Of Stock [Line Items]
Issuance price per share of convertible preferred stock		$ 25.63
Common stock, shares issued and sold		390,167
Gross proceeds from issuance of common stock		$ 10,000,000
At-the-Market Equity Offering Program \| Cowen and Company LLC
Class Of Stock [Line Items]
Issuance price per share of convertible preferred stock				$ 28.04
Common stock, shares issued and sold				2,015,987
Gross proceeds from issuance of common stock				$ 56,500,000
Underwriting discounts and commissions				1,700,000
Offering expense				200,000
Common stock, net proceeds				$ 54,600,000
Maximum amount of sales that agent may sell in shares of its common stock	$ 100,000,000
Percentage of gross sales proceeds of common stock payable as compensation	3.00%

Stock Option Plans and Stock-Based Compensation - Additional Information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Oct. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Options outstanding		10,150,136	7,808,842
Expected dividend yield		$ 0
Share based payment options vested		$ 23,200,000	$ 14,600,000	$ 4,200,000
Share based payment options grants, grant-date fair value		$ 13.32	$ 18.42	$ 6.65
Share based payment options exercises value		$ 15,800,000	$ 22,400,000	$ 400,000
Unrecognized stock-based compensation expenses related to stock options		$ 68,900,000
Unrecognized share-based compensation related to stock options, period for recognition		2 years 9 months 26 days
Share based payment options grants		3,481,090
Weighted-Average Exercise Price, Granted - at fair value		$ 20.134
2010 Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested shares of common stock subject to repurchase		0	0
Vesting period		4 years
Options granted, expiration period		10 years
Options outstanding		3,843,541
2014 Equity Incentive Award Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of shares available for issuance		4.00%	4.00%
Common stock reserved for future issuance	2,300,000
2016 Employment Commencement Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance					1,000,000
2014 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance	320,000
2014 Employee Stock Purchase Plan \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of shares reserve for issuance	1.00%
Restricted Common Stock (Founders Shares)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unvested shares of common stock subject to repurchase		0
Stock-based compensation expense		$ 0	$ 9,000	1,600,000
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		23,242,000	14,749,000	5,514,000
Employee Stock Option \| General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		12,386,000	8,289,000	3,934,000
Employee Stock Option \| Former CFO \| General and Administrative Expense
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense				1,200,000
Nonemployees Stock-Based Compensation
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 4,200,000	$ 2,000,000	$ 1,300,000
Share based payment options grants		248,650	198,750	113,913
Weighted-Average Exercise Price, Granted - at fair value		$ 18.16	$ 26.51	$ 4.42

Stock Option Plans and Stock-Based Compensation - Summary of Option Activities under 2016, 2014 and 2010 Plans (Details)	12 Months Ended
	Dec. 31, 2016 $ / shares shares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Shares Available for Grant, Beginning balance	1,083,147
Shares Available for Grant, Authorized	2,560,223
Shares Available for Grant, Granted - at fair value	(3,481,090)
Shares Available for Grant, Forfeited	378,209
Shares Available for Grant, Ending balance	540,489
Number of Options, Beginning balance	7,808,842
Number of Options, Granted - at fair value	3,481,090
Number of Options, Exercised	(761,587)
Number of Options, Forfeited	(378,209)
Number of Options, Ending balance	10,150,136
Weighted-Average Exercise Price, Beginning balance \| $ / shares	$ 12.898
Weighted-Average Exercise Price, Granted - at fair value \| $ / shares	20.134
Weighted-Average Exercise Price, Exercised \| $ / shares	4.349
Weighted-Average Exercise Price, Forfeited \| $ / shares	23.235
Weighted-Average Exercise Price, Ending balance \| $ / shares	$ 15.636

Stock Option Plans and Stock-Based Compensation - Summary of Additional Information Related to Status of Options (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Options outstanding, Number of Options	10,150,136	7,808,842
Options vested and expected to vest, Number of Options	10,066,985
Options vested and exercisable, Number of Options	4,511,193
Options outstanding, Weighted-Average Exercise Price	$ 15.636	$ 12.898
Options vested and expected to vest, Weighted-Average Exercise Price	15.588
Options vested and exercisable, Weighted-Average Exercise Price	$ 10.278
Options outstanding, Weighted-Average Contractual Terms	8 years 11 days
Options vested and expected to vest, Weighted-Average Contractual Terms	8 years 7 days
Options vested and exercisable, Weighted-Average Contractual Terms	7 years 2 months 19 days
Options outstanding, Aggregate Intrinsic Value	$ 130,011
Options vested and expected to vest, Aggregate Intrinsic Value	129,426
Options vested and exercisable, Aggregate Intrinsic Value	$ 81,458

Stock Option Plans and Stock-Based Compensation - Schedule of Weighted Average Assumptions Used to Value Options Granted to Employees (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Expected term (years)	6 years	6 years	6 years 6 months
Expected volatility	75.00%	78.00%	99.00%
Risk-free interest rate	1.42%	1.62%	2.05%
Expected dividend yield	0.00%	0.00%	0.00%

Stock Option Plans and Stock-Based Compensation - Schedule of Stock-Based Compensation Expense Related to Options (Details) - Employee Stock Option - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 23,242	$ 14,749	$ 5,514
Research and Development Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	10,856	6,460	1,580
General and Administrative Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 12,386	$ 8,289	$ 3,934

Income Taxes - Components of Loss Before Income Taxes (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2016

^[1]

Mar. 31, 2016

^[1]

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Domestic

$ (95,776)

$ (220,059)

$ (86,927)

Foreign

(31,561)

(3,201)

(206)

$ (75,921)

$ 83,939

$ (69,967)

$ (65,388)

$ (52,391)

$ (71,334)

$ (58,810)

$ (40,725)

$ (127,337)

$ (223,260)

$ (87,133)

[1]

Income Taxes - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Operating Loss Carryforwards [Line Items]
Provision for (benefit from) income taxes	$ 0	$ 0	$ 0
Increase in valuation allowance	43,000,000	79,200,000	22,100,000
Tax effect of stock option benefit that will be recorded to equity	10,800,000
Unrecognized tax benefits, accrued interest and penalties accrued	0	0	0
Unrecognized tax benefits	18,682,000	$ 10,605,000	$ 3,816,000	$ 749,000
Decrease in unrecognized tax benefits	6,400,000
Federal
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 425,600,000
Net operating loss carryforwards expiration year	2031
Tax credit carryforwards	$ 30,400,000
Tax credit carryforwards expiration year	2031
Federal \| Stock Options
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 31,900,000
State
Operating Loss Carryforwards [Line Items]
Net operating loss carryforwards	$ 115,900,000
Net operating loss carryforwards expiration year	2031
Tax credit carryforwards	$ 10,600,000

Income Taxes - Reconciliation of Statutory U.S. Federal Rate (Details)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Percent of pre-tax income:
U.S. federal statutory income tax rate	34.00%	34.00%	34.00%
State taxes, net of federal benefit	1.98%	0.70%	(1.65%)
Foreign rate differences	(8.43%)	(0.49%)	(0.08%)
Permanent items	(2.02%)	(1.25%)	(10.80%)
Research and development credit	8.38%	2.46%	3.11%
InteKrin purchase price allocation			0.73%
Other	(0.13%)	0.57%	0.11%
Change in valuation allowance	(33.78%)	(35.99%)	(25.42%)
Effective income tax rate	0.00%	0.00%	0.00%

Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Components Of Deferred Tax Assets [Abstract]
Net operating loss carryforwards	$ 136,854	$ 91,334
Research and development credits	26,172	12,980
Depreciation and amortization	645	778
Stock-based compensation	11,995	5,111
Other accruals	2,495	2,236
Deferred revenue	531	23,237
Gross deferred tax assets	178,692	135,676
In-process research and development	(891)	(891)
Gross deferred tax liabilities	(891)	(891)
Total net deferred tax asset	177,801	134,785
Less valuation allowance	(177,801)	(134,785)
Net deferred tax assets	$ 0	$ 0

Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward
Balance at beginning of year	$ 10,605	$ 3,816	$ 749
Additions based on tax positions related to current year	6,111	3,633	861
Additions for tax positions of prior years	1,966	3,156	2,206
Balance at end of year	$ 18,682	$ 10,605	$ 3,816

Net Loss Per Share Attributable to Coherus - Computation of Basic and Diluted Net Loss Per Share Attributable to Coherus (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2016

^[1]

Sep. 30, 2016

^[1]

Jun. 30, 2016

^[1]

Mar. 31, 2016

^[1]

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Numerator:

Weighted-average common shares outstanding

$ (75,921)

$ 83,939

$ (69,967)

$ (65,388)

$ (52,391)

$ (71,334)

$ (58,810)

$ (40,725)

$ (127,337)

$ (223,260)

$ (87,133)

Denominator:

41,912,300

37,125,617

8,520,100

Less: weighted-average unvested common shares subject to repurchase

(3,609)

(333,571)

Weighted-average number of shares used in computing net loss per share attributable to Coherus, basic and diluted

41,912,300

37,122,008

8,186,529

Net loss per share attributable to Coherus, basic and diluted

$ (1.35)

$ (1.86)

$ (1.56)

$ (1.22)

$ (3.04)

$ (6.01)

$ (10.64)

[1]

Net Loss Per Share Attributable to Coherus - Outstanding Dilutive Potential Shares Excluded from Calculation of Diluted Net Loss Per Share Attributable to Coherus (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	14,624,007	7,808,842	5,770,307
Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	10,150,136	7,808,842	5,770,307
Shares Issuable Upon Conversion of Convertible Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	4,473,871

Net Loss Per Share Attributable to Coherus - Additional Information (Details) - shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	14,624,007	7,808,842	5,770,307
Restricted Common Stock (Founders Shares)
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share			358,384

Related Party Transactions - Additional Information (Details) - USD ($)

1 Months Ended

12 Months Ended

Jan. 08, 2014

Feb. 28, 2014

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Feb. 29, 2016

Nov. 12, 2014

Sep. 30, 2013

Dec. 31, 2012

Jan. 31, 2012

$ 189,476,000

$ 30,041,000

$ 30,374,000

Accounts payable - related parties

254,440,000

213,062,000

78,224,000

Prepaid assets

31,634,000

34,743,000

Other assets, current

2,986,000

2,797,000

877,000

3,548,000

General and administrative expenses from transactions with related party

178,000

559,000

597,000

Interest expense from transactions with related party

1,980,000

2,687,000

InteKrin Therapeutics Inc

Business combination consideration transferred

$ 5,000,000

Bridge Loan

Interest expense from transactions with related party

2,700,000

Daiichi Sankyo - Related Party

Reduction of research and development expense

^[1]

1,184,000

2,239,000

1,893,000

7,100,000

Daiichi Sankyo - Related Party | Series B Convertible Preferred Stock

Convertible preferred stock, shares issued

2,867,426

Daiichi Sankyo - Related Party | Minimum

10.00%

Daiichi Sankyo - Related Party | Maximum

10.00%

Cook

Cook | Series B Convertible Preferred Stock

4,500,000

Convertible preferred stock, shares issued

2,150,569

Cook | Minimum

10.00%

Medpace Inc

Accounts payable - related parties

34,600,000

42,500,000

24,100,000

Other assets, current

2,200,000

900,000

3,500,000

Medpace Inc | Prepaid Clinical and Other Related Parties

Prepaid assets

3,700,000

10,900,000

Medpace Inc | Accrued Clinical - Related Parties

Accrued and other liabilities

3,500,000

6,100,000

Board of Directors | Recruiting Services

General and administrative expenses from transactions with related party

135,000

258,000

241,000

Related party balances

$ 178,000

$ 559,000

$ 597,000

Investor | Bridge Loan

Aggregate principal amount

$ 10,000,000

Warrant exercise price

$ 0.0167

Affiliated Entity

Aggregate principal amount

$ 25,000,000

Chief Executive Officer | InteKrin Russia | InteKrin Therapeutics Inc

10.00%

[1]	Represents revenue from Daiichi Sankyo through November 12, 2014 as a related party, a holder of more than 10% of our common stock until the closing of our initial public offering (“IPO”).

Subsequent Events - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	2 Months Ended
	Jan. 31, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016
Subsequent Event [Line Items]
Common stock, shares issued and sold				4,025,000
Issuance price per share of convertible preferred stock				$ 18.00
Gross proceeds from issuance of common stock				$ 72.5
Underwriting discounts and commissions				3.0
Common stock, net proceeds				69.0
Offering expense				$ 0.5
At-the-Market Equity Offering Program \| Cowen and Company LLC
Subsequent Event [Line Items]
Common stock, shares issued and sold			2,015,987
Issuance price per share of convertible preferred stock			$ 28.04
Gross proceeds from issuance of common stock			$ 56.5
Underwriting discounts and commissions			1.7
Common stock, net proceeds			54.6
Offering expense			$ 0.2
Subsequent Event \| At-the-Market Equity Offering Program
Subsequent Event [Line Items]
Common stock, shares issued and sold	148,827	5,294,902
Issuance price per share of convertible preferred stock	$ 28.88	$ 24.25
Gross proceeds from issuance of common stock		$ 128.4
Underwriting discounts and commissions		7.7
Common stock, net proceeds	$ 4.2	120.3
Offering expense		$ 0.4
Subsequent Event \| At-the-Market Equity Offering Program \| Cowen and Company LLC
Subsequent Event [Line Items]
Common stock, shares issued and sold	148,827
Issuance price per share of convertible preferred stock	$ 28.88
Gross proceeds from issuance of common stock	$ 4.3
Underwriting discounts and commissions	0.1
Common stock, net proceeds	$ 4.2

Supplementary Data - Quarterly Financial Data (Unaudited) - Schedule of Quarterly Financial Information (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

$ 844

^[1]

$ 162,835

^[1]

$ 14,068

^[1]

$ 12,359

^[1]

$ 10,198

$ 7,167

$ 6,866

$ 5,810

$ 190,106

$ 30,041

$ 31,106

Total operating expenses

74,304

78,218

76,804

76,711

62,405

78,384

65,761

42,558

306,037

249,108

95,788

Net income (loss)

(75,944)

^[1]

83,844

^[1]

(70,150)

^[1]

(65,538)

^[1]

(52,580)

(71,485)

(59,034)

(40,839)

(127,788)

(223,938)

(87,177)