View Filing Data

Other prepaid and other assets

2,312

1,659

Prepaid manufacturing

8,249

7,906

5,638

2,462

Total current assets

159,158

84,433

Property and equipment, net

6,129

6,660

Inventory, non-current

9,700

4,012

Operating lease right-of-use assets

6,766

Intangible assets

2,620

Goodwill

943

Restricted cash, non-current

785

Other assets, non-current

Total assets

186,115

99,467

Current liabilities:

Accounts payable

11,173

15,294

Accrued rebates, fees and reserve

11,945

Accrued compensation

7,292

10,540

Accrued liabilities

8,857

7,008

Other liabilities

2,140

419

Total current liabilities

41,407

33,261

Contingent consideration, non-current

Convertible notes

77,614

77,319

Convertible notes - related parties

25,872

25,773

Term loan

73,124

Lease liabilities, non-current

6,549

Other liabilities, non-current

1,645

Total liabilities

224,630

138,058

Commitments and contingencies (Note 8)

Stockholders’ deficit:

Preferred stock

Common stock

Additional paid-in capital

966,731

946,515

Accumulated other comprehensive loss

(418)

(282)

Accumulated deficit

(1,004,835)

(984,831)

Total stockholders' deficit

(38,515)

(38,591)

Total liabilities and stockholders’ deficit

$ 186,115

$ 99,467

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue:
Net product revenue	$ 37,098,000	$ 0
Operating expenses:
Cost of goods sold	2,225,000	0
Research and development (includes related party of $0 and $1,479 for the three months ended March 31, 2019 and 2018, respectively)	18,789,000	25,455,000
Selling, general and administrative (includes related party of $0 and $34 for the three months ended March 31, 2019 and 2018, respectively)	32,683,000	16,577,000
Total operating expenses	53,697,000	42,032,000
Loss from operations	(16,599,000)	(42,032,000)
Interest expense (includes related party of $610 and $602 for the three months ended March 31, 2019 and 2018)	(4,216,000)	(2,408,000)
Other income, net	811,000	138,000
Net loss	(20,004,000)	(44,302,000)
Net loss attributable to non-controlling interest	0	5,000
Net loss attributable to Coherus	$ (20,004,000)	$ (44,297,000)
Net loss per share attributable to Coherus, basic and diluted	$ (0.29)	$ (0.74)
Weighted-average number of shares used in computing net loss per share attributable to Coherus, basic and diluted	69,140,697	60,122,050

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Selling, general and administrative expenses from transactions with related party	$ 0	$ 34
Interest expense from transactions with related party	610	602
Research and Development Expense
Research and development from transactions with related party	$ 0	$ 1,479

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (20,004)	$ (44,302)
Other comprehensive loss:
Unrealized loss on available-for-sale securities, net of tax	0	(1)
Foreign currency translation adjustments, net of tax	(136)	(13)
Comprehensive loss	(20,140)	(44,316)
Comprehensive loss attributable to non-controlling interest	0	5
Comprehensive loss attributable to Coherus	$ (20,140)	$ (44,311)

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=114867106&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109223946&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=84234705&loc=SL4591552-111686

+ Details

Condensed Consolidated Statements of Stockholders' Equity (Deficit) - USD ($)
$ in Thousands

Total

Common Stock Offering

Restricted Stock Units

2018 Bonus Payout

Common Stock

Common Stock Offering

Common Stock

Restricted Stock Units

Common Stock

2018 Bonus Payout

Additional Paid-In Capital

Common Stock Offering

Additional Paid-In Capital

Restricted Stock Units

Additional Paid-In Capital

2018 Bonus Payout

Accumulated Other Comprehensive Loss

Common Stock Offering

Accumulated Other Comprehensive Loss

Restricted Stock Units

Accumulated Other Comprehensive Loss

2018 Bonus Payout

Accumulated Deficit

Common Stock Offering

Accumulated Deficit

Restricted Stock Units

Accumulated Deficit

2018 Bonus Payout

Total Coherus Stockholder's Deficit

Common Stock Offering

Noncontrolling Interest

Common Stock Offering

Beginning Balances at Dec. 31, 2017

$ 30,535

$ 6

$ 808,060

$ (750)

$ (775,492)

$ 31,824

$ (1,289)

Beginning Balances, Shares at Dec. 31, 2017

59,840,467

Issuance of common stock

$ 1,748

$ 0

$ 1,748

$ 0

$ 1,748

$ 0

Issuance of common stock, Shares

192,642

Issuance of common stock upon exercise of stock options

225

$ 0

225

Issuance of common stock upon exercise of stock options, Shares

121,116

Stock-based compensation expense

8,720

$ 0

8,720

Other comprehensive loss - unrealized gain/loss inmarketable securities

(1)

Other comprehensive loss - cumulative translation adjustment

(13)

Distributions to non-controllinginterest

(5)

Net loss

(44,297)

Ending Balances at Mar. 31, 2018

(3,088)

$ 6

818,753

(764)

(819,789)

$ (1,794)

$ (1,294)

Ending Balances, shares at Mar. 31, 2018

60,154,225

Beginning Balances at Dec. 31, 2018

(38,591)

^[1]

$ 7

946,515

(282)

(984,831)

Beginning Balances, Shares at Dec. 31, 2018

68,302,681

Issuance of common stock

$ 8,228

$ 0

$ 1,350

$ 0

$ 8,228

$ 0

$ 1,350

$ 0

Issuance of common stock, Shares

761,130

22,195

109,168

Issuance of common stock upon exercise of stock options

825

$ 0

825

Issuance of common stock upon exercise of stock options, Shares

143,523

Stock-based compensation expense

9,813

$ 0

9,813

Other comprehensive loss - unrealized gain/loss inmarketable securities

Other comprehensive loss - cumulative translation adjustment

(136)

Net loss

(20,004)

Ending Balances at Mar. 31, 2019

$ (38,515)

$ 7

$ 966,731

$ (418)

$ (1,004,835)

Ending Balances, shares at Mar. 31, 2019

69,338,697

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities
Net loss	$ (20,004)	$ (44,302)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	691	922
Remeasurement of fair-value contingent consideration	4	208
Non-cash accretion of discount on marketable securities	(54)	(44)
Non-cash interest expense from amortization of debt discount	547	358
Stock-based compensation expense	9,494	8,720
Excess and obsolete inventory	410	0
Non-cash operating lease expense	405	0
Changes in operating assets and liabilities:
Trade receivables, net	(46,476)	0
Inventory	(6,432)	0
Prepaid manufacturing	(343)	763
Other prepaid and current assets	(2,799)	715
Accounts payable	(3,964)	(1,068)
Accounts payable - related parties	0	(199)
Accrued rebates, fees and returns	11,945	0
Accrued compensation	(1,898)	1,953
Accrued and other liabilities	2,027	(1,497)
Lease liabilities	(506)	0
Other liabilities, non-current	(30)	(113)
Net cash used in operating activities	(56,983)	(33,584)
Investing activities
Purchases of property and equipment	(335)	(81)
Purchases of investments in marketable securities	(14,864)	(13,100)
Net cash used in investing activities	(15,199)	(13,181)
Financing activities
Proceeds from common stock offering, net of underwriters discounts, commissions and offering costs	8,153	1,653
Proceeds from term loan, net of issuance costs	72,876	0
Proceeds from issuance of common stock upon exercise of stock options	448	225
Net cash provided by financing activities	81,477	1,878
Effect of exchange rate changes in cash, cash equivalents and restricted cash	(136)	(13)
Net increase (decrease) in cash, cash equivalents and restricted cash	9,159	(44,900)
Cash, cash equivalents, and restricted cash at beginning of period	73,191	127,756
Cash, cash equivalents, and restricted cash at end of period	82,350	82,856
Supplemental disclosure of cash flow information
Non-cash 2018 bonus payment settled in common stock	$ 1,350	$ 0

Organization and Operations

3 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Operations

1.	Organization and Operations

Description of the Business

Coherus BioSciences, Inc. (the “Company”, “Coherus”, “we”, our” or “us”) is a commercial-stage biotherapeutics company, focused on the global biosimilar market. The Company’s headquarters and laboratories are located in Redwood City, California and in Camarillo, California, respectively.

On September 25, 2018, the Company received regulatory approval for the marketing of UDENYCA^® (pegfilgrastim-cbqv), a biosimilar to Neulasta, a long-acting granulocyte-colony stimulating factor, from the European Commission, and received regulatory approval for UDENYCA^® from the U.S. Food and Drug Administration (“FDA”) on November 2, 2018. The Company initiated U.S. sales of UDENYCA^® on January 3, 2019.

Need to Raise Additional Capital

As of March 31, 2019, the Company had an accumulated deficit of $1.0 billion and cash and cash equivalents and short-term investments in marketable securities of $96.4 million. In January 2019, the Company issued and sold 761,130 shares of common stock at a weighted average price of $11.17 per share through its ATM Offering Program and received total net proceeds of $8.2 million (see Note 10). As of January 19, 2019, the Company’s Shelf Registration Statement expired and accordingly the ATM Program was terminated. The Company also entered into a credit agreement (the “Term Loan”) with affiliates of Healthcare Royalty Partners consisting of a six-year term loan facility for an aggregate principal of $75.0 million in January 2019. The Company believes that its current available cash, cash equivalents, short-term investments in marketable securities and cash collected from UDENYCA^® sales will be sufficient to fund its planned expenditures and meet the Company’s obligations for at least 12 months following our financial statement issuance date. The Company may 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 generate sufficient cash from product sales or 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

3 Months Ended

Mar. 31, 2019

Basis of Presentation and Summary of Significant Accounting Policies

2.	Basis of Presentation and Summary of Significant Accounting Policies

Unaudited Condensed Consolidated Financial Statements

The accompanying condensed consolidated financial statements include the accounts of Coherus and its wholly-owned subsidiaries as of March 31, 2019: Coherus Intermediate Corp, InteKrin Therapeutics Inc. (“InteKrin”), and InteKrin’s wholly-owned subsidiary, 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X of the Securities Act of 1933, as amended (the “Securities Act”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring accruals that the Company believes are necessary to fairly state the financial position and the results of the Company’s operations and cash flows for interim periods in accordance with U.S. GAAP. Interim-period results are not necessarily indicative of results of operations or cash flows for a full year or any subsequent interim period.

The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2019.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make judgements, estimates and assumptions that affect the reported amounts of assets, liabilities, equity, revenue and expenses, and related disclosures. Management bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, 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 condensed consolidated balance sheet.

The foreign exchange gains and losses recorded in other expense, net in the condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018, were a net gain of $169,000 and a net loss of $8,000, respectively.

Segment Reporting

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. 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. See Note 6 for disclosures about product sales and revenue from major customers.

Cash, Cash Equivalents and Restricted Cash

Cash, cash equivalents and restricted cash is comprised of cash and highly liquid investments with remaining maturities of 90 days or less at the date of purchase. The Company limits cash investments to financial institutions with high credit standings; therefore, management believes that there is no significant exposure to any credit risk in the Company’s cash, cash equivalents and restricted cash.

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

	March 31,		March 31,
	2019		2018
Cash and cash equivalents	$	81,515	$	82,021
Restricted cash		50		50
Restricted cash - non-current		785		785
Total cash, cash equivalents and restricted cash	$	82,350	$	82,856

Restricted cash consists of cash held in money market accounts at banks. The restricted cash is used as collateral against the Company’s corporate credit cards and is classified as current; restricted cash – non-current is held to cover the standby letter of credit issued by the Company’s landlord to drawdown on in the event the facility lease is breached.

Trade Receivables

Trade receivables are recorded net of allowances for chargebacks and cash discounts for prompt payment. The Company’s estimate of the allowance for doubtful accounts is based on an evaluation of the aging of its receivables. Trade receivable balances are written off against the allowance when it is probable that the receivable will not be collected. To date, the Company has determined that an allowance for doubtful accounts is not required.

Investments in Marketable Securities

Management determines the appropriate classification of investments in marketable securities at the time of purchase based upon management’s intent with regards to such investments and reevaluates such designation as of each balance sheet date. All investments in marketable securities are held as “available-for-sale” and are carried at the estimated fair value as determined based upon quoted market prices or pricing models for similar securities.

The Company classifies investments in marketable securities as short-term when they have remaining contractual maturities of one year or less from the balance sheet date. Unrealized gains and losses are excluded from earnings and are reported as a component of accumulated comprehensive income (loss). Realized gains and losses and declines in value judged to be other than temporary, if any, on available-for-sale securities are included in other expense, net, based on the specific identification method.

Inventory

Prior to the regulatory approval of its product candidates, the Company incurred expenses for the manufacture of drug products that could potentially be available to support the commercial launch of its products. The Company began to capitalize inventory costs associated with UDENYCA^® after receiving regulatory approval for UDENYCA^® in November 2018 when it was determined that the inventory had a probable future economic benefit.

Inventory is stated at the lower of cost or estimated net realizable value with cost determined under the first-in first-out method. Inventory costs include third-party contract manufacturing, third-party packaging services, freight, labor costs for personnel involved in the manufacturing process and indirect overhead costs. The Company primarily uses actual costs to determine the cost basis for inventory. The determination of whether inventory costs will be realizable requires management review of the expiration dates of UDENYCA^® compared to its forecasted sales. If actual market conditions are less favorable than projected by management, write-downs of inventory may be required which would be recorded as cost of goods sold in the condensed consolidated statement of operations.

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use assets, other liabilities, and lease liabilities, non-current in the condensed consolidated balance sheets. Right-of-use assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent its obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. In determining the present value of lease payments, the Company uses the incremental borrowing rate based on the information available at the lease commencement date. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise any such options. Lease expense is recognized on a straight-line basis over the expected lease term.

Revenue Recognition

The Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), 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, (collectively, the “New Revenue Standard”) on January 1, 2018 using the modified retrospective method.

Topic 606 supersedes all previous revenue recognition requirements in accordance with generally accepted accounting principles. This standard applies to all contracts with Customers, except for contracts that are within the scope of other standards, such as leases, insurance, collaboration arrangements and financial instruments. Under Topic 606, an entity recognizes revenue when its customer obtains control of promised goods or services, in an amount that reflects the consideration to which the entity is entitled to in exchange for those goods or services. To determine revenue recognition for arrangements that the Company determines is within the scope of Topic 606, it performs the following five steps: (i) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the performance obligation is satisfied. The Company only applies the five-step model to contracts when it is probable that it will collect the consideration it is entitled to in exchange for the goods or services it transferred to the customer.

Net Product Revenue

The Company sells UDENYCA^® to wholesalers and distributors, (collectively, “Customers”). The Customers then resell UDENYCA^® to hospitals and clinics (collectively, “Healthcare Providers”) pursuant to contracts with the Company. In addition to distribution agreements with Customers and contracts with Healthcare Providers, the Company enters into arrangements with group purchasing organizations (“GPOs”) that provide for U.S. government-mandated or privately-negotiated rebates, chargebacks and discounts with respect to the purchase of UDENYCA^®. The Company also enters into rebate arrangements with payers, which consist primarily of commercial insurance companies and government entities, to cover the reimbursement of UDENYCA^® to Healthcare Providers. The Company provides co-payment assistance to patients who have commercial insurance and meet certain eligibility requirements. Revenue from product sales is recognized when a Customer controls the product, which occurs upon delivery of UDENYCA^® to and acceptance by that Customer.

Product Sales Discounts and Allowances

Revenues from product sales are recorded at the net sales price (“transaction price”), which includes estimates of variable consideration for which reserves are established and that result from chargebacks, rebates, co-pay assistance, prompt-payment discounts, returns and other allowances that are offered within contracts between the Company and its Customers, Healthcare Providers, payers and GPOs relating to the sales of UDENYCA^®. These reserves are based on the amounts earned or to be claimed on the related sales and are classified as reductions of trade receivables (if the amount is payable to a Customer) or a current liability (if the amount is payable to a party other than a Customer). Where appropriate, these estimates take into consideration a range of possible outcomes that are probability-weighted for relevant factors such as historical experience, current contractual and statutory requirements, specifically known market events and trends, industry data and forecasted Customer buying and payment patterns. Overall, these reserves reflect the best estimates of the amount of consideration to which the Company is entitled based on the terms of its contracts. The amount of variable consideration that is included in the transaction price may be constrained, and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Actual amounts of consideration ultimately received may differ from its estimates. If actual results in the future vary from the Company’s estimates, the estimates will be adjusted, which would affect net product revenue in the period that such variances become known.

Chargebacks: Chargebacks are discounts that occur when Healthcare Providers purchase directly from a Customer. Healthcare Providers, which belong to Public Health Service institutions, non-profit clinics, government entities, GPOs, and health maintenance organizations, generally purchase the product at a discounted price. The Customer, in turn, charges back to the Company the difference between the price initially paid by the Customer and the discounted price paid by the Healthcare Providers to the Customer. The allowance for chargebacks is based on an estimate of sales through to Healthcare Providers from the Customer.

Discounts for Prompt Payment: The Company provides for prompt payment discounts to its Customers, which are recorded as a reduction in revenue in the same period that the related product revenue is recognized.

Rebates: Rebates include mandated discounts under the Medicaid Drug Rebate Program, other government programs and commercial contracts. Rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with these public sector benefit providers. The accrual for rebates is based on statutory or contractual discount rates and expected utilization. The estimates for the expected utilization of rebates are based on Customer and commercially available payer data, as well as data collected from the Healthcare Providers, Customers, GPOs, and historical utilization rates. Rebates invoiced by payers, Healthcare Providers and GPOs are paid in arrears. If actual future rebates vary from estimates, the Company may need to adjust its accruals, which would affect net product revenue in the period of adjustment.

Co-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. The calculation of the accrual for co-pay assistance is based on an estimate of claims and the cost per claim that the Company expects to receive associated with product that has been recognized as revenue.

Product Returns: The Company offer to its Customers limited product return right, which is principally based upon damaged, defective or the product’s expiration date. Product return allowance is estimated and recorded at the time of sale.

Other Allowances: The Company pays fees to Customers and GPOs for account management, data management and other administrative services. To the extent that the services received are distinct from the sale of products to the customer, these payments are classified in selling, general and administrative expense in the Company’s condensed consolidated statements of operations, otherwise they are included as a reduction to product revenue.

Cost of Goods Sold

Cost of goods sold consists primarily of third-party manufacturing, distribution, and overhead costs associated with UDENYCA^®. A portion of the costs of producing UDENYCA^® sold to date was expensed as research and development prior to the FDA approval of UDENYCA^®and therefore it is not reflected in the cost of goods sold.

Cost of goods sold for the three months ended March 31, 2019, included write-off of prepaid manufacturing costs of $1.3 million due to the cancellation of certain manufacturing reservations, and $0.4 million due to the write-off of excess and obsolete inventory.

Research and Development Expense

Research and development costs are charged to expense as incurred. Research and development expense includes, 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. Advance payments for goods or services to be received in the future and 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.

The Company considers regulatory approval of product candidates to be uncertain, and product manufactured prior to regulatory approval may not be sold unless regulatory approval is obtained. The Company expenses manufacturing costs as incurred to research and development expense for product candidates prior to regulatory approval. If, and when, regulatory approval of a product is obtained, the Company will begin capitalizing manufacturing costs related to the approved product into inventory.

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 includes unrealized gains and losses from available-for-sale marketable securities and foreign currency translation adjustments for the three months ended March 31, 2019 and 2018.

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 net loss position for the 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 those periods presented.

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
	March 31,
	2019		2018
Stock options, including purchases from contributions to ESPP		17,767,454		13,787,003
Restricted stock units		28,975		118,377
Shares issuable upon conversion of Convertible Notes		4,473,871		4,473,871
Total		22,270,300		18,379,251

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 sheet at March 31, 2019 and December 31, 2018.

Recent Accounting Pronouncements

The following are the recent accounting pronouncements adopted by the Company in 2019:

In February 2016, the FASB issued ASU No. 2016-02, Leases (ASU 2016-02). ASU 2016-02 aims to make leasing activities more transparent and comparable, and requires substantially 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. In July 2018, FASB issued additional authoritative guidance, ASU 2018-11, providing companies with an optional prospective transition method. The Company adopted the new standards on January 1, 2019 using the optional prospective transition method and recognized right-of-use assets of $7.2 million and lease liabilities of $9.2 million on the adoption date on its condensed consolidated balance sheet, comprised of facility lease agreements for its corporate headquarters and laboratory facilities in California. The Company elected the package of practical expedients upon transition, which allows it to apply the guidance prospectively, without reassessing prior conclusions related to contracts containing leases, lease classification and initial direct costs. Accordingly, the results for the three months ended March 31, 2019 are presented under Topic 842, and the results for the three months ended March 31, 2018 and other prior period amounts were not adjusted and continue to be reported in accordance with the historical accounting under prior lease guidance, ASC Topic 840: Leases (“Topic 840”).” The Company also elected an accounting policy that does not recognize right-of-use assets and lease liabilities related to short-term leases. The Company did not elect to apply the hindsight expedient.

The impact of the adoption of Topic 842 on the accompanying condensed consolidated balance sheet as of January 1, 2019 was as follows (in thousands):

	December 31, 2018		Adjustments Due to the Adoption of Topic 842		January 1, 2019
Operating lease right-of-use asset	$	—	$	7,172	$	7,172
Operating lease liabilities:
Other current liabilities⁽¹⁾	$	419	$	1,665	$	2,084
Other lease liabilities, non-current⁽²⁾	$	1,645	$	5,466	$	7,111

______________________________________________________

(1) Includes current portion of deferred rent and current portion of operating lease liabilities.

(2) Non-current portion of deferred rent and operating lease liabilities.

The impact of the adoption of Topic 842 on the accompanying condensed consolidated statement of operations as of and for the three months ended March 31, 2019 were as follows (in thousands):

							Balance without
	As Reported			Higher (Lower)			the Adoption
Research and development	$	18,789		$	43		$	18,832
Selling, general and administrative	$	32,683		$	44		$	32,727
Total operating expenses	$	53,697		$	87		$	53,784
Loss from operations	$	(16,599	)	$	(87	)	$	(16,686	)
Net loss	$	(20,004	)	$	(87	)	$	(20,091	)
Net loss attributable to Coherus	$	(20,004	)	$	(87	)	$	(20,091	)

In June 2018, the FASB issued ASU No. 2018-07, Improvements to Nonemployee Share-Based Payment Accounting (ASU 2018-07), which simplifies the accounting for share-based payments to nonemployees by aligning it with the accounting for share-based payment to employees, with certain exceptions. The amendments in ASU 2018-07 are 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. The Company’s early adoption of ASU 2018-07 on January 1, 2019 did not have a material impact on its condensed consolidated financial statements and related disclosures.

In August 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. These amendments eliminate, modify, or integrate into other SEC requirements certain disclosure rules. Among the amendments is the requirement to present an analysis of changes in stockholders’ equity in the interim financial statements included in quarterly reports on Form 10-Q. The analysis, which can be presented as a footnote or separate statement, is required for the current and comparative quarter and year-to-date interim periods. The amendments are effective for all filings made on or after November 5, 2018. In light of the anticipated timing of effectiveness of the amendments and expected proximity of effectiveness to the filing date for most filers’ quarterly reports, the SEC’s Division of Corporate Finance issued a Compliance and Disclosure Interpretation related to Exchange Act Forms, or CDI – Question 105.09, that provides transition guidance related to this disclosure requirement. CDI – Question 105.09 states that the SEC would not object if the filer’s first presentation of the changes in stockholders’ equity is included in its Form 10-Q for the quarter that begins after the effective date of the amendments. As such, the Company adopted these SEC amendments on November 5, 2018 and will present the analysis of changes in stockholders’ equity in its interim financial statements in its March 31, 2019 Form 10-Q. The Company adopted the Securities Act Release No. 33-10532 on January 1, 2019 and such adoption did not have a material effect on the Company’s financial position, results of operations, cash flows or stockholders’ equity.

The following are the recent accounting pronouncements that the Company has not yet adopted:

In January 2017, the FASB issued ASU No. 2017-04, Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment (ASU 2017-04), which simplifies 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. 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.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurements (ASU 2018-13), which eliminates certain disclosure requirements for fair value measurements, and requires public entities to disclose certain new information and modifies some disclosure requirements. The new guidance 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 2018-13 will have on its consolidated financial statements and related disclosures.

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

3 Months Ended

Mar. 31, 2019

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, restricted cash, investments in marketable securities, 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.

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

When quoted market prices are not available for the specific security, then the Company estimates the fair value by using quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets. Where applicable, these models project future cash flows and discount the future amounts to a present value using market-based observable inputs obtained from various third party data providers, including but not limited to, benchmark yields, interest rate curves, reported trades, broker/dealer quotes and market reference data. Level 2 assets consist of corporate notes and commercial paper. Level 2 inputs for the valuations are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability.

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.

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

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

	Fair Value Measurements
	March 31, 2019
	Total		Level 1		Level 2		Level 3
Financial Assets:
Money market funds	$	56,352	$	56,352	$	—	$	—
Restricted cash (money market funds)		835		835		—		—
Corporate notes and commercial paper		34,966		—		34,966		—
Total financial assets	$	92,153	$	57,187	$	34,966	$	—
Financial Liabilities:
Contingent consideration	$	64	$	—	$	—	$	64

	Fair Value Measurements
	December 31, 2018
	Total		Level 1		Level 2		Level 3
Financial Assets:
Money market funds	$	71,062	$	71,062	$	—	$	—
Restricted cash (money market funds)		835		835		—		—
Total financial assets	$	71,897	$	71,897	$	—	$	—
Financial Liabilities:
Contingent consideration	$	60	$	—	$	—	$	60

Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash, consisted of the following (in thousands):

	March 31, 2019
	Cost		Unrealized Gain		Unrealized (Loss)		Estimated Fair Value
Money market funds	$	56,352	$	—	$	—	$	56,352
Corporate notes and commercial paper		20,048		—		—		20,048
Classified as cash equivalents	$	76,400	$	—	$	—	$	76,400

Corporate notes and commercial paper	$	14,918	$	—	$	—	$	14,918
Classified as investments in marketable securities	$	14,918	$	—	$	—	$	14,918

Restricted cash (money market funds)	$	835	$	—	$	—	$	835
Classified as restricted cash	$	835	$	—	$	—	$	835

	December 31, 2018
	Cost		Unrealized Gain		Unrealized (Loss)		Estimated Fair Value
Money market funds	$	71,062	$	—	$	—	$	71,062
Classified as cash equivalents	$	71,062	$	—	$	—	$	71,062

Restricted cash (money market funds)	$	835	$	—	$	—	$	835
Classified as restricted cash	$	835	$	—	$	—	$	835

As of March 31, 2019, the remaining contractual maturities of available-for-sale securities were less than one year. The average maturity of investments in marketable securities available-for-sale as of March 31, 2019 was approximately three months. The gross realized gains were $112,000 and $82,000 for the three months ended March 31, 2019 and 2018, respectively, and the gross realized losses were $0 for both the three months ended March 31, 2019 and 2018, in the condensed consolidated statement of operations.

Contingent Consideration

As part of the InteKrin acquisition in February 2014, the Company recognized contingent consideration associated with potential payments to be made to the former InteKrin stockholders 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 contingent consideration related to the Earn-Out Payment was settled on March 6, 2015.

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 March 31, 2019 applied a 25% risk-adjusted discount rate to measure the present value and also captured an additional 8% credit spread for counterparty credit risk given the cash payment. The expected cash flow is based on estimates provided by the Company’s management including the timing and probability of occurrence. The value of the consideration is tiered based on the value of a license or similar agreement with a third party and the timing of such agreement. 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 an immaterial fair value fluctuation.

The change in the fair value of the Compound Transaction Payment was recognized in other income (expense), net within the condensed consolidated statement of operations of $4,000 and $208,000 for the three months ended March 31, 2019 and 2018, respectively.

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

Balance as of December 31, 2018	$	60
Change in fair value of the contingent consideration liability		4
Balance as of March 31, 2019	$	64

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 7) is based on an income approach. The estimated fair value was approximately $106.9 million (par value $100.0 million) as of March 31, 2019 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.

- Definition

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

+ References + Details

Inventory

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Organization Consolidation And Presentation Of Financial Statements [Abstract]

4.Inventory

The Company began capitalizing inventory in November 2018 upon the FDA approval of UDENYCA^®. Inventory consisted of the following (in thousands):

	March 31,		December 31,
	2019		2018
Raw Materials	$	2,094	$	2,851
Work in process		6,484		1,576
Finished goods		3,434		1,244
Total	$	12,012	$	5,671

Balance sheet classifications (in thousand):

	March 31,		December 31,
	2019		2018
Inventory	$	2,312	$	1,659
Inventory, non-current		9,700		4,012
Total	$	12,012	$	5,671

Inventory expected to be sold in periods more than twelve months from the date presented is classified as inventory, non-current on the balance sheet. As of March 31, 2019, the non-current portion of inventory consisted of raw materials, work in process and a portion of the finished goods. As of December 31, 2018, the non-current portion of inventory consisted of raw materials and a portion of work in process.

Prepaid manufacturing of $7.3 million and $6.6 million on the condensed consolidated balance sheet as of March 31, 2019 and December 31, 2018, respectively, includes a prepayment made to a contract manufacturing organization (“CMO”) for manufacturing services and raw materials, which the Company expects to be converted into inventory within the next twelve months.

Balance Sheet Components

3 Months Ended

Mar. 31, 2019

Balance Sheet Components

5.	Balance Sheet Components

Property and Equipment, Net

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

	March 31,			December 31,
	2019			2018
Machinery and equipment	$	11,564		$	11,505
Computer equipment and software		2,877			1,651
Furniture and fixtures		714			714
Leasehold improvements		4,364			4,364
Construction in progress		338			1,463
Total property and equipment		19,857			19,697
Accumulated depreciation and amortization		(13,728	)		(13,037	)
Property and equipment, net	$	6,129		$	6,660

Depreciation and amortization expense was $691,000 and $922,000 for the three months ended March 31, 2019 and 2018, respectively.

Accrued Liabilities

Accrued liabilities are as follows (in thousands):

	March 31,		December 31,
	2019		2018
Accrued clinical and manufacturing	$	4,267	$	3,950
Accrued other		4,590		3,058
Accrued liabilities	$	8,857	$	7,008

Revenue

3 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue

The Company initiated U.S. sales of UDENYCA^® on January 3, 2019. The Company recorded net product revenue of $37.1 million during the three months ended March 31, 2019. There was no product revenue during the three months ended March 31, 2018.

Revenue by significant Customer was distributed as follows:

	Three Months Ended
	March 31, 2019
	Percent of total
McKesson		44	%
AmeriSource-Bergen Corp		34	%
Cardinal		19	%
Others		3	%
Total revenue		100	%

Product Sales Discounts and Allowances

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

	Chargebacks					Other Fees,
	and Discounts					Co-pay
	for Prompt					Assistance
	Payment			Rebates		and Returns			Total
Balance at December 31, 2018	$	—		$	—	$	—		$	—
Provisions related to sales made in:
Current period		17,513			5,165		8,046			30,724
Payments and customer credits issued		(2,113	)		—		(911	)		(3,024	)
Balance at March 31, 2019	$	15,400		$	5,165	$	7,135		$	27,700

Chargebacks and discounts for prompt payment are recorded as a reduction of trade receivables, and the remaining reserve balances are classified as current liabilities in the accompanying condensed consolidated balance sheets except for the co-pay assistance, which is reflected as a net prepayment in other prepaid assets on the condensed consolidated balance sheets.

Convertible Notes and Term Loan

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Convertible Notes and Term Loan

7.	Convertible Notes and Term Loan

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”). 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. 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 negative covenants and 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 Note. As of March 31, 2019, 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 following table summarizes information about the components of the Convertible Notes (in thousands):

	March 31,			December 31,
	2019			2018
Principal amount of the Convertible Notes	$	81,750		$	81,750
Unamortized debt discount and debt issuance costs		(4,136	)		(4,431	)
Convertible Notes	$	77,614		$	77,319

Principal amount of the Convertible Notes - related parties	$	27,250		$	27,250
Unamortized debt discount and debt issuance costs - related parties		(1,378	)		(1,477	)
Convertible Notes - related parties	$	25,872		$	25,773
Total Convertible Notes	$	103,486		$	103,092

If the Convertible Notes were to be converted on March 31, 2019, the holders of the Convertible Notes would receive common shares with an aggregate value of $61.0 million based on the Company’s closing stock price of $13.64.

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

	Three Months Ended
	March 31,
	2019		2018
Stated coupon interest	$	1,538	$	1,538
Accretion of debt discount and debt issuance costs		295		268
Interest expense	$	1,833	$	1,806
Stated coupon interest - related parties	$	512	$	512
Accretion of debt discount and debt issuance costs - related parties		98		90
Interest expense - related parties	$	610	$	602
Total interest expense	$	2,443	$	2,408

The remaining unamortized debt discount and debt offering costs related to the Company’s Convertible Notes of approximately $5.5 million as of March 31, 2019, will be amortized using the effective interest rate over the remaining term of the Convertible Notes of 3.0 years. The annual effective interest rate is 9.48% for the Convertible Notes. During the three months ended March 31, 2019 and 2018, the Company recognized total interest expense of $2.4 million and $2.4 million, respectively, related to the Convertible Notes’ accrued interest and amortization of the debt discount.

Future payments on the Convertible Notes as of March 31, 2019 are as follows (in thousands):

Year ending December 31,
Remainder of 2019	$	6,150
2020		8,200
2021		8,200
2022		111,050
Total minimum payments		133,600
Less amount representing interest		(24,600	)
Convertible Notes, principal amount		109,000
Less debt discount and debt issuance costs on Convertible Notes		(5,514	)
Net carrying amount of Convertible Notes	$	103,486

Term Loan

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

The Borrowings under the Term Loan bear interest through maturity at 7.00% per annum plus three month LIBOR (“LIBOR”). If the consolidated net sales for UDENYCA^® for the fiscal year ending December 31, 2019, are in excess of $250.0 million, then the interest rate will be reduced as of January 1, 2020 to 6.75% per annum plus LIBOR. Interest is payable quarterly in arrears and varies with LIBOR. The Company adopted the prospective method to account for future cash payments. Under the prospective method, the effective interest rate is not constant, and any change in the expected cash flows is recognized prospectively as an adjustment to the effective yield. As of March 31, 2019, the effective interest rate is 10.8%.

The Company is required to pay principal on the Borrowings in equal quarterly installments beginning on the four year anniversary of the Term Loan Closing Date (or, if consolidated net sales of UDENYCA^® in the fiscal year ending December 31, 2021 are less than $375.0 million, beginning on the three year anniversary of the Term Loan Closing Date), with the outstanding balance to be repaid on January 7, 2025, the maturity date.

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

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

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

The obligations under the Term Loan are secured by a lien on substantially all of the Company’s and its Guarantors’ tangible and intangible property, including intellectual property. The Term Loan contains certain affirmative covenants, negative covenants and events of default, including, covenants and restrictions that among other things, restrict the ability of the Company and its subsidiaries to, incur liens, incur additional indebtedness, make loans and investments, engage in mergers and acquisitions, in asset sales, and declare dividends or redeem or repurchase capital stock. Additionally, the consolidated net sales for UDENYCA^® must not be lower than $70.0 million for the fiscal year ending December 31, 2019, (b) $125.0 million for the fiscal year ending December 31, 2020, and (c) $150.0 million for each fiscal year thereafter. A failure to comply with these covenants could permit the Lender under the Term Loan to declare the Borrowings, together with accrued interest and fees, to be immediately due and payable.

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

	March 31,
	2019
Principal amount of the Term Loan	$	75,000
Unamortized debt discount and debt issuance costs		(1,876	)
Term Loan	$	73,124

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

	March 31,
	2019
Stated coupon interest	$	1,620
Accretion of debt discount and debt issuance costs		152
Interest expense	$	1,772

The remaining unamortized debt discount and debt offering costs related to the Term Loan of approximately $4.9 million as of March 31, 2019, will be amortized using the effective rate over the remaining term of the Term Loan of 5.75 years. During the three months ended March 31, 2019, the Company recognized total interest expense of $1.8 million related to the Term Loan’s accrued interest and amortization of the debt discount.

Future payments on the Term Loan as of March 31, 2019 are as follows (in thousands):

Year ending December 31,
Remainder of 2019	$	5,500
2020		7,320
2021		7,300
2022		7,300
2023		39,409
2024 and beyond		47,524
Total minimum payments		114,353
Less amount representing interest		(36,353	)
Term Loan, gross		78,000
Less debt discount and debt issuance costs on Term Loan		(4,876	)
Net carrying amount of Term Loan	$	73,124

Commitments and Contingencies

3 Months Ended

Mar. 31, 2018

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

8.	Commitments and Contingencies

Purchase Commitments

The Company entered into agreements with a vendor and a CMO for the supplies of raw materials and manufacturing of commercial supply of UDENYCA^®. As of March 31, 2019, the Company’s contractual obligations under the terms of the agreements were as follows (in thousands):

Years ending December 31,
Remainder of 2019	$	4,385
2020		24,975
2021		600
2022		600
Total obligations	$	30,560

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 clinical trial materials. The contracts are cancellable, with varying provisions regarding termination. If a contract with a specific vendor were to be terminated, the Company would 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.

Contingencies

On March 3, 2017, Amgen Inc. and Amgen USA Inc. (collectively “Amgen”) 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. On June 1, 2017, Amgen filed a Second Amended Complaint, which alleges as to Coherus (i) unfair competition under California Business and Professions Code Section 17200 et seq., (ii) misappropriation of trade secrets, (iii) aiding and abetting breach of duty of loyalty and (iv) tortious interference with contract. As to defendant Weiser, the Second Amended 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 and (v) breach of duty of loyalty. KBI BioPharma Inc. is not named as a defendant in the Second Amended Complaint. The Second Amended Complaint seeks injunctive relief and monetary damages. Although Amgen has indicated it intends to seek a preliminary injunction, no motion has been filed yet. The court has set a trial date of April 22, 2019. On May 2, 2019, the Company and Amgen settled the trade secret action brought by Amgen. The details of the settlement are confidential but the Company will continue to market UDENYCA^®and will pay a mid-single digit royalty to Amgen for five years (see Note 12).

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.

Leases

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Leases

In July 2015, the Company entered into the office lease space for its corporate headquarters in Redwood City, California under operating lease agreement, which has been subject to an amendment to secure additional space such that the total headquarters lease space is approximately 40,341 square feet. The lease agreement, as amended, provided for aggregate tenant improvement allowance of $1.4 million, which was amortized as a reduction to rent expense on a straight-line basis over the lease term prior to the adoption of Topic 842 (see Note 2). Additionally, the lease agreement, as amended, provides for certain limited rent abatement and contains annual scheduled rent increases over the lease term. The lease terminates in November 2022 and contains a one-time option to extend the lease term for five years. As part of the lease agreement, 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 of the lease. The Company will be entitled to periodically reduce the amount of the Letter of Credit during the lease term. The Letter of Credit of $0.8 million is recorded as restricted cash, non-current within the consolidated balance sheet at March 31, 2019 and December 31, 2018.

The Company also leases laboratory facilities in Camarillo, California under an operating lease agreement, which has been subject to several amendments necessary to secure additional space and extend the lease term to June 30, 2020, and December 31, 2020 on the two facility structures.

Effective upon the adoption of Topic 842, the Company evaluated the above facility leases and determined that they were all operating leases. In determining the present value of the lease payments, the Company used the incremental borrowing rate based on the information available at the adoption date. The lease option to extend the lease term for five years was not included as part of the right-of-use asset or lease liability as the Company was not reasonably certain it would exercise this option. The Company also performed an evaluation of its other contracts with Customers and suppliers in accordance with Topic 842 and determined that, except for the facility leases described above, none of its contracts contain a lease.

The balance sheet classification of the lease liabilities was as follows (in thousands):

	March 31,
	2019
Operating lease liabilities
Other liabilities	$	2,140
Lease liabilities, non-current		6,549
Total operating lease liabilities	$	8,689

Operating lease costs were $0.5 million for the three months ended March 31, 2019. Cash paid for amounts included in the measurement of the lease liabilities for the three months ended March 31, 2019 was $0.7 million and was included in net cash used in operating activities in the condensed consolidated statements of cash flows.

As of March 31, 2019, the maturities of the operating lease liabilities were as follows (in thousands):

	Operating leases
Years ending December 31,
Remainder of 2019	$	1,996
2020		2,695
2021		2,672
2022		2,518
Total lease payments		9,881
Less imputed interest		(1,192	)
Operating lease liabilities	$	8,689

As of March 31, 2019, the weighted average remaining lease term was 3.6 years and the weighted average operating discount rate used to determine the operating lease liabilities was 7.0%.

Common Stock and Stock-Based Compensation

3 Months Ended

Mar. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Common Stock and Stock-Based Compensation

10.	Common Stock and Stock-Based Compensation

Common Stock Offerings

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.

In the first quarter of 2019, the Company sold 761,130 shares of common stock at a weighted average price of $11.17 per share through its ATM Offering Program and received total gross proceeds of $8.5 million. After deducting commission and offering expenses of $0.3 million, the net proceeds were $8.2 million. As of January 19, 2019, the Company’s Shelf Registration Statement expired and accordingly the ATM Offering Program was terminated.

Stock-Based Compensation

The stock-based compensation expense recorded related to options and restricted stock units granted to employees and nonemployees were as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Research and development	$	3,658	$	3,763
Selling, general and administrative		5,836		4,957
	$	9,494	$	8,720

Stock-based compensation of $319,000 and $0 was capitalized into inventory for the three month ended March 31, 2019, and 2018, respectively. Stock-based compensation capitalized into inventory is recognized as cost of goods sold when the related product is sold.

Related Party Transactions

3 Months Ended

Mar. 31, 2019

Related Party Transactions

11.	Related Party Transactions

Transactions Associated with Medpace Agreement

A prior member of the Company’s board of directors is also the president and chief executive officer of Medpace. As such, Medpace was deemed to be a related party until the director’s resignation on March 1, 2018. As a result, the Company no longer reflects balances and transactions associated with Medpace as related party in its consolidated financial statements as of March 31, 2018. The Company recognized $1.5 million during the three months ended March 31, 2018, for services rendered by Medpace within research and development expense in the condensed 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 March 31, 2019 and December 31, 2018, there were no such related party balances in the Company’s condensed consolidated balance sheet. Services rendered by the recruiting company of $0 and $34,000 was recorded in general and administrative expense in the condensed consolidated statements of operations for the three months ended March 31, 2019 and 2018, respectively.

Convertible Notes

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).

Subsequent Events

3 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

Subsequent Event

12.	Subsequent Event

On May 2, 2019, the Company and Amgen settled the trade secret action brought by Amgen. The Company will pay a mid-single digit royalty to Amgen for five years.

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

3 Months Ended

Mar. 31, 2019

Unaudited Condensed Consolidated Financial Statements

Use of Estimates

Foreign Currency

Segment Reporting

Cash, Cash Equivalents and Restricted Cash

	March 31,		March 31,
	2019		2018
Cash and cash equivalents	$	81,515	$	82,021
Restricted cash		50		50
Restricted cash - non-current		785		785
Total cash, cash equivalents and restricted cash	$	82,350	$	82,856

Trade Receivables

Investments in Marketable Securities

Research and Development Expense

Leases

Revenue Recognition

Net Product Revenue

Product Sales Discounts and Allowances

Cost of Goods Sold

Comprehensive Loss

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
	March 31,
	2019		2018
Stock options, including purchases from contributions to ESPP		17,767,454		13,787,003
Restricted stock units		28,975		118,377
Shares issuable upon conversion of Convertible Notes		4,473,871		4,473,871
Total		22,270,300		18,379,251

Income Taxes

Recent Accounting Pronouncements

The following are the recent accounting pronouncements adopted by the Company in 2019:

The impact of the adoption of Topic 842 on the accompanying condensed consolidated balance sheet as of January 1, 2019 was as follows (in thousands):

	December 31, 2018		Adjustments Due to the Adoption of Topic 842		January 1, 2019
Operating lease right-of-use asset	$	—	$	7,172	$	7,172
Operating lease liabilities:
Other current liabilities⁽¹⁾	$	419	$	1,665	$	2,084
Other lease liabilities, non-current⁽²⁾	$	1,645	$	5,466	$	7,111

______________________________________________________

(1) Includes current portion of deferred rent and current portion of operating lease liabilities.

(2) Non-current portion of deferred rent and operating lease liabilities.

The impact of the adoption of Topic 842 on the accompanying condensed consolidated statement of operations as of and for the three months ended March 31, 2019 were as follows (in thousands):

							Balance without
	As Reported			Higher (Lower)			the Adoption
Research and development	$	18,789		$	43		$	18,832
Selling, general and administrative	$	32,683		$	44		$	32,727
Total operating expenses	$	53,697		$	87		$	53,784
Loss from operations	$	(16,599	)	$	(87	)	$	(16,686	)
Net loss	$	(20,004	)	$	(87	)	$	(20,091	)
Net loss attributable to Coherus	$	(20,004	)	$	(87	)	$	(20,091	)

The following are the recent accounting pronouncements that the Company has not yet adopted:

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)

3 Months Ended

Mar. 31, 2019

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash

	March 31,		March 31,
	2019		2018
Cash and cash equivalents	$	81,515	$	82,021
Restricted cash		50		50
Restricted cash - non-current		785		785
Total cash, cash equivalents and restricted cash	$	82,350	$	82,856

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
	March 31,
	2019		2018
Stock options, including purchases from contributions to ESPP		17,767,454		13,787,003
Restricted stock units		28,975		118,377
Shares issuable upon conversion of Convertible Notes		4,473,871		4,473,871
Total		22,270,300		18,379,251

Adoption of Topic 842

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Summary of Impact of Adoption of Topic 842 on Financial Statement

The impact of the adoption of Topic 842 on the accompanying condensed consolidated balance sheet as of January 1, 2019 was as follows (in thousands):

	December 31, 2018		Adjustments Due to the Adoption of Topic 842		January 1, 2019
Operating lease right-of-use asset	$	—	$	7,172	$	7,172
Operating lease liabilities:
Other current liabilities⁽¹⁾	$	419	$	1,665	$	2,084
Other lease liabilities, non-current⁽²⁾	$	1,645	$	5,466	$	7,111

______________________________________________________

(1) Includes current portion of deferred rent and current portion of operating lease liabilities.

(2) Non-current portion of deferred rent and operating lease liabilities.

The impact of the adoption of Topic 842 on the accompanying condensed consolidated statement of operations as of and for the three months ended March 31, 2019 were as follows (in thousands):

							Balance without
	As Reported			Higher (Lower)			the Adoption
Research and development	$	18,789		$	43		$	18,832
Selling, general and administrative	$	32,683		$	44		$	32,727
Total operating expenses	$	53,697		$	87		$	53,784
Loss from operations	$	(16,599	)	$	(87	)	$	(16,686	)
Net loss	$	(20,004	)	$	(87	)	$	(20,091	)
Net loss attributable to Coherus	$	(20,004	)	$	(87	)	$	(20,091	)

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

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
	March 31, 2019
	Total		Level 1		Level 2		Level 3
Financial Assets:
Money market funds	$	56,352	$	56,352	$	—	$	—
Restricted cash (money market funds)		835		835		—		—
Corporate notes and commercial paper		34,966		—		34,966		—
Total financial assets	$	92,153	$	57,187	$	34,966	$	—
Financial Liabilities:
Contingent consideration	$	64	$	—	$	—	$	64

	Fair Value Measurements
	December 31, 2018
	Total		Level 1		Level 2		Level 3
Financial Assets:
Money market funds	$	71,062	$	71,062	$	—	$	—
Restricted cash (money market funds)		835		835		—		—
Total financial assets	$	71,897	$	71,897	$	—	$	—
Financial Liabilities:
Contingent consideration	$	60	$	—	$	—	$	60

Schedule of Cash Equivalents, Investments in Marketable Securities Classified as Available-for-Sale Securities and Restricted Cash

Cash equivalents, investments in marketable securities, which are classified as available-for-sale securities, and restricted cash, consisted of the following (in thousands):

	March 31, 2019
	Cost		Unrealized Gain		Unrealized (Loss)		Estimated Fair Value
Money market funds	$	56,352	$	—	$	—	$	56,352
Corporate notes and commercial paper		20,048		—		—		20,048
Classified as cash equivalents	$	76,400	$	—	$	—	$	76,400

Corporate notes and commercial paper	$	14,918	$	—	$	—	$	14,918
Classified as investments in marketable securities	$	14,918	$	—	$	—	$	14,918

Restricted cash (money market funds)	$	835	$	—	$	—	$	835
Classified as restricted cash	$	835	$	—	$	—	$	835

	December 31, 2018
	Cost		Unrealized Gain		Unrealized (Loss)		Estimated Fair Value
Money market funds	$	71,062	$	—	$	—	$	71,062
Classified as cash equivalents	$	71,062	$	—	$	—	$	71,062

Restricted cash (money market funds)	$	835	$	—	$	—	$	835
Classified as restricted cash	$	835	$	—	$	—	$	835

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 December 31, 2018	$	60
Change in fair value of the contingent consideration liability		4
Balance as of March 31, 2019	$	64

Inventory (Tables)

3 Months Ended

Mar. 31, 2019

Inventory Disclosure [Abstract]

Schedule of Inventory

The Company began capitalizing inventory in November 2018 upon the FDA approval of UDENYCA^®. Inventory consisted of the following (in thousands):

	March 31,		December 31,
	2019		2018
Raw Materials	$	2,094	$	2,851
Work in process		6,484		1,576
Finished goods		3,434		1,244
Total	$	12,012	$	5,671

Schedule of Balance Sheet Classification

Balance sheet classifications (in thousand):

	March 31,		December 31,
	2019		2018
Inventory	$	2,312	$	1,659
Inventory, non-current		9,700		4,012
Total	$	12,012	$	5,671

Balance Sheet Components (Tables)

3 Months Ended

Mar. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Schedule of Property and Equipment, Net

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

	March 31,			December 31,
	2019			2018
Machinery and equipment	$	11,564		$	11,505
Computer equipment and software		2,877			1,651
Furniture and fixtures		714			714
Leasehold improvements		4,364			4,364
Construction in progress		338			1,463
Total property and equipment		19,857			19,697
Accumulated depreciation and amortization		(13,728	)		(13,037	)
Property and equipment, net	$	6,129		$	6,660

Schedule of Accrued Liabilities

Accrued liabilities are as follows (in thousands):

	March 31,		December 31,
	2019		2018
Accrued clinical and manufacturing	$	4,267	$	3,950
Accrued other		4,590		3,058
Accrued liabilities	$	8,857	$	7,008

Revenue (Tables)

3 Months Ended

Mar. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue by Significant Customer

Revenue by significant Customer was distributed as follows:

	Three Months Ended
	March 31, 2019
	Percent of total
McKesson		44	%
AmeriSource-Bergen Corp		34	%
Cardinal		19	%
Others		3	%
Total revenue		100	%

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

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

	Chargebacks					Other Fees,
	and Discounts					Co-pay
	for Prompt					Assistance
	Payment			Rebates		and Returns			Total
Balance at December 31, 2018	$	—		$	—	$	—		$	—
Provisions related to sales made in:
Current period		17,513			5,165		8,046			30,724
Payments and customer credits issued		(2,113	)		—		(911	)		(3,024	)
Balance at March 31, 2019	$	15,400		$	5,165	$	7,135		$	27,700

Convertible Notes and Term Loan (Tables)

3 Months Ended

Mar. 31, 2019

Components of Convertible Notes

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

	March 31,			December 31,
	2019			2018
Principal amount of the Convertible Notes	$	81,750		$	81,750
Unamortized debt discount and debt issuance costs		(4,136	)		(4,431	)
Convertible Notes	$	77,614		$	77,319

Principal amount of the Convertible Notes - related parties	$	27,250		$	27,250
Unamortized debt discount and debt issuance costs - related parties		(1,378	)		(1,477	)
Convertible Notes - related parties	$	25,872		$	25,773
Total Convertible Notes	$	103,486		$	103,092

Components of Interest Expense

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

	Three Months Ended
	March 31,
	2019		2018
Stated coupon interest	$	1,538	$	1,538
Accretion of debt discount and debt issuance costs		295		268
Interest expense	$	1,833	$	1,806
Stated coupon interest - related parties	$	512	$	512
Accretion of debt discount and debt issuance costs - related parties		98		90
Interest expense - related parties	$	610	$	602
Total interest expense	$	2,443	$	2,408

Schedule of Future Payments on Debt

Future payments on the Convertible Notes as of March 31, 2019 are as follows (in thousands):

Year ending December 31,
Remainder of 2019	$	6,150
2020		8,200
2021		8,200
2022		111,050
Total minimum payments		133,600
Less amount representing interest		(24,600	)
Convertible Notes, principal amount		109,000
Less debt discount and debt issuance costs on Convertible Notes		(5,514	)
Net carrying amount of Convertible Notes	$	103,486

Term Loan

Components of Interest Expense

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

	March 31,
	2019
Stated coupon interest	$	1,620
Accretion of debt discount and debt issuance costs		152
Interest expense	$	1,772

Schedule of Future Payments on Debt

Future payments on the Term Loan as of March 31, 2019 are as follows (in thousands):

Year ending December 31,
Remainder of 2019	$	5,500
2020		7,320
2021		7,300
2022		7,300
2023		39,409
2024 and beyond		47,524
Total minimum payments		114,353
Less amount representing interest		(36,353	)
Term Loan, gross		78,000
Less debt discount and debt issuance costs on Term Loan		(4,876	)
Net carrying amount of Term Loan	$	73,124

Components of Term Loan

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

	March 31,
	2019
Principal amount of the Term Loan	$	75,000
Unamortized debt discount and debt issuance costs		(1,876	)
Term Loan	$	73,124

Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Schedule of Contractual Obligations Under Terms of Agreements

As of March 31, 2019, the Company’s contractual obligations under the terms of the agreements were as follows (in thousands):

Years ending December 31,
Remainder of 2019	$	4,385
2020		24,975
2021		600
2022		600
Total obligations	$	30,560

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases [Abstract]

Schedule of Balance Sheet Classification of Lease Liabilities

The balance sheet classification of the lease liabilities was as follows (in thousands):

	March 31,
	2019
Operating lease liabilities
Other liabilities	$	2,140
Lease liabilities, non-current		6,549
Total operating lease liabilities	$	8,689

Schedule of Maturities of Operating Lease Liabilities

As of March 31, 2019, the maturities of the operating lease liabilities were as follows (in thousands):

	Operating leases
Years ending December 31,
Remainder of 2019	$	1,996
2020		2,695
2021		2,672
2022		2,518
Total lease payments		9,881
Less imputed interest		(1,192	)
Operating lease liabilities	$	8,689

Common Stock and Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Employee And Nonemployee Stock Option Restricted Stock Units

Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]

Schedule of Stock-Based Compensation Expense

The stock-based compensation expense recorded related to options and restricted stock units granted to employees and nonemployees were as follows (in thousands):

	Three Months Ended
	March 31,
	2019		2018
Research and development	$	3,658	$	3,763
Selling, general and administrative		5,836		4,957
	$	9,494	$	8,720

Organization and Operations - Additional Information (Details) - USD ($)
$ / shares in Units, $ in Thousands

1 Months Ended

Jan. 07, 2019

Jan. 31, 2019

Mar. 31, 2019

Dec. 31, 2018

^[1]

Cash and cash equivalents and short-term investments

Accumulated deficit

$ 1,004,835

$ 984,831

$ 96,400

HRP III Member | Term Loan

Line of credit facility, maximum borrowing capacity

$ 75,000

Term loan facility term

6 years

At-the-Market Equity Offering Program

Common stock, shares issued and sold

761,130

Common stock, net proceeds

$ 8,200

At-the-Market Equity Offering Program | Weighted Average

Share price

$ 11.17

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)

3 Months Ended

Mar. 31, 2019

USD ($)

Segments

Mar. 31, 2018

USD ($)

Jan. 01, 2019

USD ($)

Dec. 31, 2018

USD ($)

Foreign exchange gain (loss)

$ (169,000)

$ 8,000

Number of reportable segment | Segments

Number of operating segments | Segments

Write-off of prepaid manufacturing costs

$ 1,300,000

Write-off of excess and obsolete inventory

$ 400,000

Description of uncertain income tax position

Accrued interest and Penalties

$ 0

Operating lease, right-of-use asset

6,766,000

$ 7,200,000

^[1]

$ 6,549,000

$ 9,200,000

^[1]

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Basis of Presentation and Summary of Significant Accounting Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Mar. 31, 2018

Dec. 31, 2017

Cash and cash equivalents

$ 81,515

$ 72,356

^[1]

$ 82,021

Restricted cash

^[1]

Restricted cash, non-current

785

^[1]

785

Total cash, cash equivalents and restricted cash

$ 82,350

$ 73,191

$ 82,856

$ 127,756

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Basis of Presentation and Summary of Significant Accounting Policies - Outstanding Dilutive Potential Shares Excluded from Calculation of Diluted Net Loss Per Share Attributable to Coherus (Details) - shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	22,270,300	18,379,251
Stock Options, Including Purchases from Contributions to ESPP
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	17,767,454	13,787,003
Restricted Stock Units
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from the calculation of diluted net loss per share	28,975	118,377
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	4,473,871

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Adoption of Topic 842 In Condensed Consolidated Balance Sheet (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Jan. 01, 2019

Dec. 31, 2018

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease right-of-use asset

$ 6,766

$ 7,200

^[1]

2,140

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

$ 6,549

9,200

^[1]

Adoption of Topic 842

Operating lease right-of-use asset

7,172

Other current liabilities

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Other current liabilities | Adoption of Topic 842

^[2]

419

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Other lease liabilities, non-current

^[2]

2,084

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Other lease liabilities, non-current | Adoption of Topic 842

^[3]

$ 1,645

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Adjustments Due to the Adoption of Topic 842 | Adoption of Topic 842

^[3]

7,111

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Operating lease right-of-use asset

7,172

Adjustments Due to the Adoption of Topic 842 | Other current liabilities | Adoption of Topic 842

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

Adjustments Due to the Adoption of Topic 842 | Other lease liabilities, non-current | Adoption of Topic 842

^[2]

1,665

Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items]

^[3]

$ 5,466

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.
[2]	Includes current portion of deferred rent and current portion of operating lease liabilities.
[3]	Non-current portion of deferred rent and operating lease liabilities.

Basis of Presentation and Summary of Significant Accounting Policies - Summary of Impact of Adoption of Topic 842 on Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Research and development (includes related party of $0 and $1,479 for the three months ended March 31, 2019 and 2018, respectively)	$ 18,789	$ 25,455
Selling, general and administrative	32,683	16,577
Total operating expenses	53,697	42,032
Loss from operations	(16,599)	(42,032)
Net loss	(20,004)	(44,302)
Net loss attributable to Coherus	(20,004)	$ (44,297)
Higher (Lower) \| Adoption of Topic 842
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Research and development (includes related party of $0 and $1,479 for the three months ended March 31, 2019 and 2018, respectively)	43
Selling, general and administrative	44
Total operating expenses	87
Loss from operations	(87)
Net loss	(87)
Net loss attributable to Coherus	(87)
Balance without the Adoption of ASC 842 \| Adoption of Topic 842
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Research and development (includes related party of $0 and $1,479 for the three months ended March 31, 2019 and 2018, respectively)	18,832
Selling, general and administrative	32,727
Total operating expenses	53,784
Loss from operations	(16,686)
Net loss	(20,091)
Net loss attributable to Coherus	$ (20,091)

Fair Value Measurements - Additional Information (Details)		3 Months Ended		12 Months Ended
	Feb. 29, 2016 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2018 USD ($)
Fair Value Disclosures [Line Items]
Transfers from Level 1 to Level 3		$ 0		$ 0
Transfers from Level 3 to Level 1		0		$ 0
Available-for-sale securities, gross realized gains		112,000	$ 82,000
Available-for-sale securities, gross realized losses		0	0
Remeasurement of fair-value contingent consideration		4,000	208,000
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 Income (Expense) Net
Fair Value Disclosures [Line Items]
Remeasurement of fair-value contingent consideration		4,000	$ 208,000
Level 3 \| 8.2% Senior Convertible Notes Due 2022
Fair Value Disclosures [Line Items]
Debt instrument fair value		$ 106,900,000
Fair Value Measurements Recurring Basis \| Level 3 \| Contingent Consideration
Fair Value Disclosures [Line Items]
Increase (decrease) in expected probability of compound transaction payment occurrence		1.00%
Estimated fair value fluctuation of Compound Transaction Payment		$ 1,000,000
Fair Value Measurements Recurring Basis \| Level 3 \| Contingent Consideration \| Measurement Input, Discount Rate
Fair Value Disclosures [Line Items]
Fair value investment measurement input		25
Fair Value Measurements Recurring Basis \| Level 3 \| Contingent Consideration \| Measurement Input, Counterparty Credit Risk
Fair Value Disclosures [Line Items]
Fair value investment measurement input		8
Maximum
Fair Value Disclosures [Line Items]
Available sale of securities remaining contractual period		1 year

Fair Value Measurements - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - Fair Value Measurements Recurring Basis - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 92,153	$ 71,897
Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	64	60
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	56,352	71,062
Restricted Cash (Money Market Funds)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	835	835
Corporate Notes and Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	34,966
Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	57,187	71,897
Level 1 \| Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	56,352	71,062
Level 1 \| Restricted Cash (Money Market Funds)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	835	835
Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	34,966
Level 2 \| Corporate Notes and Commercial Paper
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	34,966
Level 3 \| Contingent Consideration
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial liabilities	$ 64	$ 60

Fair Value Measurements - Schedule of Cash Equivalents, Investments in Marketable Securities Classified as Available-for-Sale Securities and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Money Market Funds
Schedule of Available-for-sale securities [Line Items]
Cost	$ 56,352	$ 71,062
Unrealized Gain	0	0
Unrealized (Loss)	0	0
Estimated Fair Value	56,352	71,062
Corporate Notes and Commercial Paper
Schedule of Available-for-sale securities [Line Items]
Cost	20,048
Unrealized Gain	0
Unrealized (Loss)	0
Estimated Fair Value	20,048
Cash Equivalents
Schedule of Available-for-sale securities [Line Items]
Cost	76,400	71,062
Unrealized Gain	0	0
Unrealized (Loss)	0	0
Estimated Fair Value	76,400	71,062
Investment in Marketable Securities
Schedule of Available-for-sale securities [Line Items]
Cost	14,918
Unrealized Gain	0
Unrealized (Loss)	0
Estimated Fair Value	14,918
Investment in Marketable Securities \| Corporate Notes and Commercial Paper
Schedule of Available-for-sale securities [Line Items]
Cost	14,918
Unrealized Gain	0
Unrealized (Loss)	0
Estimated Fair Value	14,918
Restricted Cash
Schedule of Available-for-sale securities [Line Items]
Cost	835	835
Unrealized Gain	0	0
Unrealized (Loss)	0	0
Estimated Fair Value	835	835
Restricted Cash \| Restricted Cash (Money Market Funds)
Schedule of Available-for-sale securities [Line Items]
Cost	835	835
Unrealized Gain	0	0
Unrealized (Loss)	0	0
Estimated Fair Value	$ 835	$ 835

Fair Value Measurements - Summary of Changes in the Estimated Fair Value of Contingent Consideration (Details) - Contingent Consideration $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Fair Value Liabilities Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 60
Change in fair value of the contingent consideration liability	4
Ending balance	$ 64

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw Materials	$ 2,094	$ 2,851
Work in process	6,484	1,576
Finished goods	3,434	1,244
Total	$ 12,012	$ 5,671

Inventory - Scheduel of Balance Sheet Classification (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Inventory Disclosure [Abstract]

Prepayment made for manufacturing services

$ 2,312

$ 1,659

^[1]

Inventory, non-current

9,700

4,012

^[1]

Total

$ 12,012

$ 5,671

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Inventory - Additional Information (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Inventory [Line Items]

$ 8,249

$ 7,906

^[1]

Contract Manufacturing Organization

Inventory [Line Items]

Prepayment made for manufacturing services

$ 7,300

$ 6,600

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Accumulated depreciation and amortization

$ 19,857

$ 19,697

(13,728)

(13,037)

Property and equipment, net

6,129

6,660

^[1]

Machinery and Equipment

Computer Equipment and Software

11,564

11,505

2,877

1,651

Furniture and Fixtures

714

Leasehold Improvements

4,364

Construction in Progress

Accrued clinical and manufacturing

$ 338

$ 1,463

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Depreciation and amortization	$ 691	$ 922

Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Payables And Accruals [Abstract]

$ 4,267

$ 3,950

Accrued other

4,590

3,058

Accrued liabilities

$ 8,857

$ 7,008

^[1]

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Revenue - Additional Information (Details) - USD ($)	3 Months Ended
Revenue - Additional Information (Details) - USD ($)	Mar. 31, 2019	Mar. 31, 2018
Revenue From Contract With Customer [Abstract]
Net product revenue	$ 37,098,000	$ 0

Revenue - Revenue by Significant Customer (Details) - Net Product Revenue - Customer Concentration Risk	3 Months Ended
	Mar. 31, 2019
Disaggregation Of Revenue [Line Items]
Percentage of total revenue	100.00%
McKesson
Disaggregation Of Revenue [Line Items]
Percentage of total revenue	44.00%
AmeriSource-Bergen Corp
Disaggregation Of Revenue [Line Items]
Percentage of total revenue	34.00%
Cardinal
Disaggregation Of Revenue [Line Items]
Percentage of total revenue	19.00%
Others
Disaggregation Of Revenue [Line Items]
Percentage of total revenue	3.00%

Revenue - Activities and Ending Reserve Balances for Each Significant Category of Discounts and Allowances (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
Accounts Notes And Loans Receivable [Line Items]
Balance at December 31, 2018	$ 0
Provisions related to sales made in, current period	30,724
Payments and customer credits issued	(3,024)
Balance at March 31, 2019	27,700
Chargebacks and Discounts for Prompt Payment
Accounts Notes And Loans Receivable [Line Items]
Balance at December 31, 2018	0
Provisions related to sales made in, current period	17,513
Payments and customer credits issued	(2,113)
Balance at March 31, 2019	15,400
Rebates
Accounts Notes And Loans Receivable [Line Items]
Balance at December 31, 2018	0
Provisions related to sales made in, current period	5,165
Payments and customer credits issued	0
Balance at March 31, 2019	5,165
Other Fees, Co-pay Assistance and Returns
Accounts Notes And Loans Receivable [Line Items]
Balance at December 31, 2018	0
Provisions related to sales made in, current period	8,046
Payments and customer credits issued	(911)
Balance at March 31, 2019	$ 7,135

Convertible Notes and Term Loan - Convertible Notes - Additional Information (Details)		3 Months Ended
	Feb. 29, 2016 USD ($) d $ / shares shares	Mar. 31, 2019 USD ($) $ / shares	Mar. 31, 2018 USD ($)
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%
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
Debt instrument maturity date	Mar. 31, 2022
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 \| d	30
Percentage to pay in cash of the par value of notes	109.00%
Convertible notes, covenant compliance		As of March 31, 2019, the Company was in full compliance with these covenants and there were no events of default under the Convertible Notes.
Convertible notes, converted amount		$ 61,000,000
Closing stock, price per share \| $ / shares		$ 13.64
Unamortized debt discount and debt issuance costs on Convertible Notes		$ 5,514,000
Amortized effective interest rate convertible notes period		3 years
Convertible notes, effective interest rate		9.48%
Total interest expense related to accrued interest and amortization of debt discount		$ 2,400,000	$ 2,400,000

Convertible Notes and Term Loan - Components of Convertible Notes (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

Feb. 29, 2016

Convertible Notes - related parties

Convertible Notes

$ 77,614

$ 77,319

^[1]

25,872

25,773

^[1]

8.2% Senior Convertible Notes Due 2022

Principal amount of the Convertible Notes

$ 100,000

8.2% Senior Convertible Notes Due 2022 | Related Party Debt

(5,514)

Total Convertible Notes

103,486

103,092

Principal amount of the Convertible Notes

27,250

Convertible Notes - related parties

(1,378)

(1,477)

25,872

25,773

8.2% Senior Convertible Notes Due 2022 | Parent Company

Principal amount of the Convertible Notes

81,750

(4,136)

(4,431)

Convertible Notes

$ 77,614

$ 77,319

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Convertible Notes and Term Loan - Components of Interest Expense on Convertable Notes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Debt Instrument [Line Items]
Accretion of debt discount and debt issuance costs	$ 547	$ 358
Interest expense	610	602
Total interest expense	4,216	2,408
8.2% Senior Convertible Notes Due 2022
Debt Instrument [Line Items]
Interest expense	2,400	2,400
Total interest expense	2,443	2,408
8.2% Senior Convertible Notes Due 2022 \| Related Party Debt
Debt Instrument [Line Items]
Stated coupon interest	512	512
Accretion of debt discount and debt issuance costs	98	90
Interest expense	610	602
8.2% Senior Convertible Notes Due 2022 \| Parent Company
Debt Instrument [Line Items]
Stated coupon interest	1,538	1,538
Accretion of debt discount and debt issuance costs	295	268
Interest expense	$ 1,833	$ 1,806

Convertible Notes and Term Loan - Schedule of Future Payments on the Convertible Notes (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

^[1]

$ 133,600

8.2% Senior Convertible Notes Due 2022

73,124

6,150

8,200

8,200

111,050

Less amount representing interest

133,600

(24,600)

Convertible Notes, principal amount

109,000

Less debt discount and debt issuance costs on Convertible Notes

(5,514)

$ 103,486

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Convertible Notes and Term Loan - Term Loan - Additional Information (Details) - USD ($)		3 Months Ended	12 Months Ended
	Jan. 07, 2019	Mar. 31, 2019	Dec. 31, 2021	Dec. 31, 2019	Jan. 01, 2020	Feb. 29, 2016
Term Loan
Debt Instrument [Line Items]
Aggregate principal amount		$ 75,000,000
Effective interest rate		10.80%
Debt instrument maturity date		Jan. 07, 2025
Payment of closing fee to the lenders in form of origination issue discount	$ 1,100,000
Percentage required to pay an additional exit fee on principal amount	4.00%
Consolidated net sales, 2020		$ 125,000,000
Consolidated net sales, thereafter		150,000,000
Unamortized debt discount and debt issuance costs on Term Loan		$ 4,876,000
Amortized effective interest rate Term Loan period		5 years 9 months
Total interest expense related to Term Loan's accrued interest and amortization of debt discount		$ 1,772,000
Term Loan \| Paid on or Prior to the Three Year Anniversary of Closing Date
Debt Instrument [Line Items]
Prepayment premium, description		with respect to any prepayment paid or required to be paid on or prior to the three year anniversary of the Credit Agreement Closing Date, 5.00% of the Borrowings prepaid or required to be prepaid, plus all required interest payments that would have been due on the Borrowings prepaid or required to be prepaid through and including the three year anniversary of the Term Loan Closing Date
Prepayment premium percentage		5.00%
Term Loan \| Paid after the Three Year but on or Prior to the Four Year Anniversary of Closing Date
Debt Instrument [Line Items]
Prepayment premium, description		with respect to any prepayment paid or required to be paid after the three year anniversary of the Term Loan Closing Date but on or prior to the four year anniversary of the Term Loan Closing Date, 5.00% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage		5.00%
Term Loan \| Paid after the Four Year but on or Prior to the Five Year Anniversary of Closing Date
Debt Instrument [Line Items]
Prepayment premium, description		with respect to any prepayment paid or required to be paid after the four year anniversary of the Term Loan Closing Date but on or prior to the five year anniversary of the Term Loan Closing Date, 2.50% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage		2.50%
Term Loan \| Paid Thereafter
Debt Instrument [Line Items]
Prepayment premium, description		with respect to any prepayment paid or required to be prepaid thereafter, 1.25% of the Borrowings prepaid or required to be prepaid
Prepayment premium percentage		1.25%
Term Loan \| Minimum
Debt Instrument [Line Items]
Consolidated net sales, 2019		$ 70,000,000
Term Loan \| LIBOR
Debt Instrument [Line Items]
Effective interest rate	7.00%
Term Loan \| Scenario Forecast
Debt Instrument [Line Items]
Net sales				$ 250,000,000
Term Loan \| Scenario Forecast \| Maximum
Debt Instrument [Line Items]
Net sales			$ 375,000,000
Term Loan \| Scenario Forecast \| LIBOR
Debt Instrument [Line Items]
Effective interest rate					6.75%
HRP III Member
Debt Instrument [Line Items]
Aggregate principal amount						$ 75,000,000
HRP III Member \| Term Loan
Debt Instrument [Line Items]
Term loan facility term	6 years
Aggregate principal amount	$ 75,000,000

Convertible Notes and Term Loan - Components of Term Loan (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

^[1]

$ 73,124

Term Loan

Principal amount of the Term Loan

75,000

(1,876)

$ 73,124

[1]	The consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated balance sheet included in the Company’s 2018 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019.

Convertible Notes and Term Loan - Components of Interest Expense on Term Loan (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Debt Instrument [Line Items]
Accretion of debt discount and debt issuance costs	$ 547	$ 358
Term Loan
Debt Instrument [Line Items]
Stated coupon interest	1,620
Accretion of debt discount and debt issuance costs	152
Interest expense	$ 1,772

Convertible Notes and Term Loan - Schedule of Future Payments on the Term Loan (Details) - USD ($)
$ in Thousands

Mar. 31, 2019

Dec. 31, 2018

^[1]

$ 133,600

73,124

Term Loan

5,500

7,320

7,300

7,300

39,409

47,524

Less amount representing interest

114,353

(36,353)

Term Loan, gross

78,000

Less debt discount and debt issuance costs on Convertible Notes

(4,876)