0001328143-20-000050 | 10-Q | XBRL Viewer | Adamas Pharmaceuticals INC

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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2020	Oct. 30, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-36399
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	42-1560076
Entity Address, Address Line One	1900 Powell Street
Entity Address, Address Line Two	Suite 1000
Entity Address, City or Town	Emeryville
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94608
City Area Code	510
Local Phone Number	450-3500
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	ADMS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		28,520,519
Entity Registrant Name	Adamas Pharmaceuticals Inc
Entity Central Index Key	0001328143
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 50,803	$ 65,774
Available-for-sale securities	41,674	66,833
Accounts receivable, net	7,648	5,770
Inventory	6,854	5,267
Prepaid expenses and other current assets	16,962	6,676
Total current assets	123,941	150,320
Property and equipment, net	1,789	2,449
Operating lease right-of-use assets	7,033	8,048
Prepaid expenses and other non-current assets	38	1,341
Total assets	132,801	162,158
Current liabilities
Accounts payable	4,711	6,932
Accrued liabilities	14,142	16,117
Current portion of long-term debt	3,232	2,041
Other current liabilities	9,401	1,858
Total current liabilities	31,486	26,948
Long-term debt	126,573	125,674
Long-term portion of operating lease liabilities	6,934	8,272
Other non-current liabilities	2,426	2,157
Total liabilities	167,419	163,051
Commitments and Contingencies (Note 7)
Stockholders’ deficit
Preferred stock, $0.001 par value — 5,000,000 shares authorized, and zero shares issued and outstanding at September 30, 2020 and December 31, 2019	0	0
Common stock, $0.001 par value — 100,000,000 shares authorized, 28,520,519 and 27,964,778 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively	33	33
Additional paid-in capital	452,331	446,942
Accumulated other comprehensive income	32	16
Accumulated deficit	(487,014)	(447,884)
Total stockholders’ deficit	(34,618)	(893)
Total liabilities and stockholders’ deficit	$ 132,801	$ 162,158

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	100,000,000	100,000,000
Common stock, issued (in shares)	28,520,519	27,964,778
Common stock, outstanding (in shares)	28,520,519	27,964,778

Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Total revenues	$ 20,176,000	$ 13,933,000	$ 53,451,000	$ 38,289,000
Costs and operating expenses:
Cost of product sales	488,000	929,000	1,441,000	2,027,000
Research and development	2,333,000	6,042,000	7,348,000	24,854,000
Selling, general and administrative, net	26,120,000	31,180,000	73,849,000	84,084,000
Total costs and operating expenses	28,941,000	38,151,000	82,638,000	110,965,000
Loss from operations	(8,765,000)	(24,218,000)	(29,187,000)	(72,676,000)
Interest and other income, net	355,000	512,000	654,000	1,969,000
Interest expense	(3,506,000)	(3,876,000)	(10,597,000)	(11,404,000)
Net loss	$ (11,916,000)	$ (27,582,000)	$ (39,130,000)	$ (82,111,000)
Net loss per share, basic and diluted (in dollars per share)	$ (0.42)	$ (0.99)	$ (1.39)	$ (2.97)
Weighted average shares used in computing net loss per share, basic and diluted (in shares)	28,376	27,778	28,200	27,605
Cost, Product and Service [Extensible List]	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Product sales
Revenues:
Total revenues	$ 18,970,000	$ 13,933,000	$ 51,405,000	$ 38,289,000
Royalty revenue
Revenues:
Total revenues	$ 1,206,000	$ 0	$ 2,046,000	$ 0

Condensed Consolidated Statements of Comprehensive Loss (unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (11,916)	$ (27,582)	$ (39,130)	$ (82,111)
Other comprehensive income (loss)
Reclassification of realized gain on available-for-sale securities recognized in interest and other income, net	0	0	(34)	0
Unrealized gain (loss) on available-for-sale securities	(88)	(34)	50	333
Total other comprehensive income (loss)	(88)	(34)	16	333
Comprehensive loss	$ (12,004)	$ (27,616)	$ (39,114)	$ (81,778)

- Definition

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

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+ Details

Condensed Consolidated Statements of Stockholders Equity (Deficit) (unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2018		27,434,358
Beginning balance at Dec. 31, 2018	$ 89,885	$ 32	$ 432,815	$ (264)	$ (342,698)
Increase (decrease) in shareholders' equity
Exercise of stock options (in shares)		18,230
Exercise of stock options	49		49
Restricted stock units vested (in shares)		67,391
Other comprehensive income (loss)	230			230
Stock-based compensation	3,410		3,410
Net loss	(29,658)				(29,658)
Ending balance (in shares) at Mar. 31, 2019		27,519,979
Ending balance at Mar. 31, 2019	63,916	$ 32	436,274	(34)	(372,356)
Beginning balance (in shares) at Dec. 31, 2018		27,434,358
Beginning balance at Dec. 31, 2018	89,885	$ 32	432,815	(264)	(342,698)
Increase (decrease) in shareholders' equity
Other comprehensive income (loss)	333
Net loss	(82,111)
Ending balance (in shares) at Sep. 30, 2019		27,857,726
Ending balance at Sep. 30, 2019	19,757	$ 32	444,465	69	(424,809)
Beginning balance (in shares) at Mar. 31, 2019		27,519,979
Beginning balance at Mar. 31, 2019	63,916	$ 32	436,274	(34)	(372,356)
Increase (decrease) in shareholders' equity
Exercise of stock options (in shares)		65,064
Exercise of stock options	99		99
Restricted stock units vested (in shares)		12,860
Stock issued under employee stock purchase plan (in shares)		112,304
Stock issued under employee stock purchase plan	449		449
Other comprehensive income (loss)	137			137
Stock-based compensation	2,973		2,973
Net loss	(24,871)				(24,871)
Ending balance (in shares) at Jun. 30, 2019		27,710,207
Ending balance at Jun. 30, 2019	42,703	$ 32	439,795	103	(397,227)
Increase (decrease) in shareholders' equity
Exercise of stock options (in shares)		91,332
Exercise of stock options	133		133
Restricted stock units vested (in shares)		56,187
Other comprehensive income (loss)	(34)			(34)
Stock-based compensation	4,537		4,537
Net loss	(27,582)				(27,582)
Ending balance (in shares) at Sep. 30, 2019		27,857,726
Ending balance at Sep. 30, 2019	19,757	$ 32	444,465	69	(424,809)
Beginning balance (in shares) at Dec. 31, 2019		27,964,778
Beginning balance at Dec. 31, 2019	(893)	$ 33	446,942	16	(447,884)
Increase (decrease) in shareholders' equity
Exercise of stock options (in shares)		61,766
Exercise of stock options	42		42
Restricted stock units vested (in shares)		131,661
Other comprehensive income (loss)	57			57
Stock-based compensation	1,589		1,589
Net loss	(16,648)				(16,648)
Ending balance (in shares) at Mar. 31, 2020		28,158,205
Ending balance at Mar. 31, 2020	(15,853)	$ 33	448,573	73	(464,532)
Beginning balance (in shares) at Dec. 31, 2019		27,964,778
Beginning balance at Dec. 31, 2019	(893)	$ 33	446,942	16	(447,884)
Increase (decrease) in shareholders' equity
Other comprehensive income (loss)	16
Net loss	(39,130)
Ending balance (in shares) at Sep. 30, 2020		28,520,519
Ending balance at Sep. 30, 2020	(34,618)	$ 33	452,331	32	(487,014)
Beginning balance (in shares) at Mar. 31, 2020		28,158,205
Beginning balance at Mar. 31, 2020	(15,853)	$ 33	448,573	73	(464,532)
Increase (decrease) in shareholders' equity
Restricted stock units vested (in shares)		28,541
Stock issued under employee stock purchase plan (in shares)		95,094
Stock issued under employee stock purchase plan	223		223
Other comprehensive income (loss)	47			47
Stock-based compensation	1,740		1,740
Net loss	(10,566)				(10,566)
Ending balance (in shares) at Jun. 30, 2020		28,281,840
Ending balance at Jun. 30, 2020	(24,409)	$ 33	450,536	120	(475,098)
Increase (decrease) in shareholders' equity
Exercise of stock options (in shares)		171,159
Exercise of stock options	115		115
Restricted stock units vested (in shares)		67,520
Other comprehensive income (loss)	(88)			(88)
Stock-based compensation	1,680		1,680
Net loss	(11,916)				(11,916)
Ending balance (in shares) at Sep. 30, 2020		28,520,519
Ending balance at Sep. 30, 2020	$ (34,618)	$ 33	$ 452,331	$ 32	$ (487,014)

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Cash flows from operating activities
Net loss	$ (39,130)	$ (82,111)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	660	958
Stock-based compensation	4,803	10,786
Accretion of interest expense	10,597	11,404
Change in fair value of embedded derivative liability	269	287
Net accretion of discounts and amortization of premiums of available-for-sale securities	(152)	(997)
Realized gain on available-for-sale securities	(55)	0
Provision for write-down of inventory	340	618
Changes in assets and liabilities
Accrued interest of available-for-sale securities	352	223
Accounts receivable, net	(1,878)	(25)
Inventory	(1,399)	(570)
Prepaid expenses and other assets	(8,983)	953
Operating lease right-of-use assets	1,061	681
Accounts payable	(2,382)	178
Current portion of long-term debt	(8,507)	(4,708)
Long-term portion of operating lease liabilities	(1,253)	(791)
Accrued liabilities and other liabilities	5,276	648
Net cash used in operating activities	(40,381)	(62,466)
Cash flows from investing activities
Purchases of property and equipment	0	(18)
Purchases of available-for-sale securities	(68,936)	(56,645)
Maturities of available-for-sale securities	76,900	133,750
Sales of available-for-sale securities	17,066	0
Net cash provided by investing activities	25,030	77,087
Cash flows from financing activities
Proceeds from Paycheck Protection Program Loan	2,650	0
Repayment of Paycheck Protection Program Loan	(2,650)	0
Proceeds from issuance of common stock upon exercise of stock options	157	298
Proceeds from employee stock purchase plan	223	449
Net cash provided by financing activities	380	747
Net increase (decrease) in cash and cash equivalents	(14,971)	15,368
Cash and cash equivalents at beginning of period	65,774	56,605
Cash and cash equivalents at end of period	50,803	71,973
Supplemental disclosure of noncash activities
Right-of-use assets obtained in exchange for operating lease liabilities	46	8,896
Stock-based compensation capitalized in inventory	$ 206	$ 134

Description of Business	9 Months Ended
Description of Business	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	DESCRIPTION OF BUSINESS Adamas Pharmaceuticals, Inc. (the “Company”) is a commercial-stage pharmaceutical company focused on supporting its patient community and growing a portfolio of therapies to reduce the burden of neurological diseases on patients, caregivers, and society. In August 2017, the U.S. Food and Drug Administration (FDA) approved GOCOVRI® (amantadine) extended release capsules, the first and only FDA-approved medication indicated for the treatment of dyskinesia in patients with Parkinson’s disease receiving levodopa-based therapy, with or without concomitant dopaminergic medications. In November 2012, the Company granted Forest Laboratories Holdings Limited “Forest”, an indirect wholly-owned subsidiary of Allergan plc (collectively “Allergan”) an exclusive license, with right to sublicense, certain of the Company’s intellectual property rights relating to human therapeutics containing memantine in the United States. In connection with these rights, Allergan markets and sells Namzaric® for the treatment of moderate to severe dementia related to Alzheimer’s disease. In May 2020, the Company became entitled to receive royalties at rates in the low double digits to mid-teens from Allergan for sales of Namzaric in the United States. The Company was incorporated in the State of Delaware on November 15, 2000, and operates as one segment. The Company’s headquarters and operations are located in Emeryville, California.

Basis of Presentation and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company’s condensed consolidated financial statements for the periods presented. The condensed consolidated balance sheet at December 31, 2019 was derived from the audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial results are not necessarily indicative of results to be expected for the full fiscal year ending December 31, 2020, or any other future period. Readers should read these interim unaudited condensed consolidated financial statements in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission, or SEC. The Company’s critical accounting policies are detailed in its Annual Report on Form 10-K for the year ended December 31, 2019. The Company’s critical accounting policies have not changed materially from December 31, 2019. Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses in the consolidated financial statements and the accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition and variable consideration, lease assets and liabilities, clinical trial accruals, fair value of assets and liabilities including short-term and long-term classification, embedded derivatives, income taxes, inventory, and stock-based compensation. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results may differ from those estimates. Risks and Uncertainties The outbreak of the novel Coronavirus (“COVID-19”), which is understood to have begun in December 2019, continues to grow both within the U.S. and globally. The World Health Organization has declared the outbreak of COVID-19 to be a pandemic, and the U.S. federal government has declared it a national emergency. The Company is subject to risks and uncertainties as a result of the outbreak of COVID-19. Despite disruptions to the Company’s business operations, the COVID-19 pandemic did not significantly impact GOCOVRI prescription refill rates for the three and nine months ended September 30, 2020, and thus far management has observed no disruptions to its inventory on hand or planned manufacturing schedule. However, new prescription rates have been impacted due to several factors, including: a fluid environment in which office practices are changing frequently including many healthcare providers have temporarily closed their offices or are restricting patient visits; patients are postponing visits to healthcare provider facilities; and the sales force has moved to a mix of virtual and live interactions with healthcare providers, adapting to the local environment. While management believes this initial decline and continued impact on new prescriptions to be temporary, the duration and severity is dependent on future developments, including new information that may emerge concerning the actions taken to contain or prevent further spread, all of which are highly uncertain and cannot be predicted with confidence. As of the date of issuance of these condensed consolidated financial statements, due to the numerous uncertainties surrounding the COVID-19 pandemic, the Company is unable to predict the extent to which the COVID-19 pandemic may materially adversely affect the Company’s future business, financial results, liquidity and cash flows. Liquidity Since January 1, 2017, the Company has funded its operations primarily through a royalty-backed loan agreement (“Royalty-Backed Loan”) with HealthCare Royalty Partners III, L.P., (“HCRP”), sales of GOCOVRI, and sales of its common stock. In 2017, the Company entered into a Royalty-Backed Loan with HCRP, whereby the Company borrowed a total of $100.0 million. The Company made GOCOVRI available for physician and patient use in the fourth quarter of 2017, with a full commercial launch in January 2018. In January 2018, the Company completed a follow-on public offering of its common stock from which proceeds raised were approximately $134.3 million, net of underwriting discounts, commissions, and offering-related transaction costs. Prior to the generation of revenue from GOCOVRI, the Company had not generated any commercial revenue from the sale of its products. In November 2019, the Company entered into a sales agreement with Cowen and Company, LLC, pursuant to which it may, from time to time, issue and sell shares of common stock having an aggregate offering value of up to $50.0 million. As of September 30, 2020, no shares had been sold under the sales agreement. As of September 30, 2020, the Company had $92.5 million of cash, cash equivalents, and investments, which management believes will be sufficient to fund its projected operating requirements, including continued commercialization of GOCOVRI for the treatment of dyskinesia in patients with Parkinson’s disease and operations related to completing activities for ADS-5102 for MSW, for at least 12 months from the issuance of this quarterly report on Form 10-Q. However, it is possible that the Company will not achieve the progress it expects, because revenues from GOCOVRI may be less than anticipated, especially in light of the current COVID-19 pandemic. Recent Accounting Pronouncements Accounting Pronouncements Adopted in 2020 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements. The Company adopted the new guidance effective January 1, 2020, and determined the adoption did not have a material impact on its consolidated financial statements. Disclosures are updated in Note 3 “Fair Value Measurements”. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606, which amends ASC 808 to clarify ASC 606 should apply in entirety to certain transactions between collaborative arrangement participants. The Company adopted the new guidance effective January 1, 2020, and determined the adoption did not have a material impact on its consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments; in November 2018 the FASB issued a subsequent amendment ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses; in April 2019 the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments; in May 2019 the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief; and in November 2019 the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses. The new guidance changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. In November 2019 the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)—Effective Dates, which defers the effective date of ASU 2016-13 for all entities except SEC reporting companies that are not smaller reporting companies. As a smaller reporting company, this guidance is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the timing and effect the new guidance will have on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes, which is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating but does not expect the new guidance to have a material impact on its consolidated financial statements.

Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

In accordance with ASC 820-10, Fair Value Measurements and Disclosures, the Company determines the fair value of financial and non-financial assets and liabilities using the fair value hierarchy, which establishes three levels of inputs that may be used to measure fair value, as follows:

•Level 1 inputs, which include quoted prices in active markets for identical assets or liabilities;

•Level 2 inputs, which include observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities, quoted prices for identical or similar assets or liabilities 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 asset or liability. For available-for-sale securities, the Company reviews trading activity and pricing as of the measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs either represent quoted prices for similar assets in active markets or have been derived from observable market data; and

•Level 3 inputs, which include unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the underlying asset or liability. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies, or similar valuation techniques, as well as significant management judgment or estimation.

The following table represents the fair value hierarchy for the Company’s financial assets and liabilities which require fair value measurement on a recurring basis (in thousands):


	September 30, 2020
	Total		Level 1		Level 2		Level 3
Assets:
Money market	$	26,178	$	26,178	$	—	$	—
Corporate debt	10,679		—		10,679		—
U.S. Treasury securities	30,995		—		30,995		—

Total assets measured at fair value	$	67,852	$	26,178	$	41,674	$	—
Liabilities:
Embedded derivative liability	$	2,426	$	—	$	—	$	2,426
Total liabilities measured at fair value	$	2,426	$	—	$	—	$	2,426


	December 31, 2019
	Total		Level 1		Level 2		Level 3
Assets:
Money market	$	27,720	$	27,720	$	—	$	—
Corporate debt	22,576		—		22,576		—
U.S. Treasury securities	37,811		—		37,811		—
Commercial paper	10,928		—		10,928		—
Total assets measured at fair value	$	99,035	$	27,720	$	71,315	$	—
Liabilities:
Embedded derivative liability	$	2,157	$	—	$	—	$	2,157
Total liabilities measured at fair value	$	2,157	$	—	$	—	$	2,157

Money market funds are highly liquid investments and are actively traded. The pricing information on these investment instruments are readily available and can be independently validated as of the measurement date. This approach results in the classification of these securities as Level 1 of the fair value hierarchy.

Corporate debt, U.S. Treasury securities, and commercial paper are measured at fair value using Level 2 inputs. The Company reviews trading activity and pricing for these investments as of each measurement date. When sufficient quoted pricing for identical securities is not available, the Company uses market pricing and other observable market inputs for similar securities obtained from various third-party data providers. These inputs represent quoted prices for similar assets in active markets or these inputs have been derived from observable market data. This approach results in the classification of these securities as Level 2 of the fair value hierarchy. In certain cases where there is limited activity or less transparency around inputs to valuation, the related assets or liabilities are classified as Level 3. The Company classified an embedded derivative related to the Company’s Royalty-Backed Loan with HCRP as a Level 3 liability.

The fair value of the embedded derivative as a result of a change in control was calculated using a probability-weighted discounted cash flow model. The model used in valuing this embedded derivative requires the use of significant estimates and assumptions including but not limited to: 1) expected cash flows the Company expects to receive on U.S. net sales of GOCOVRI and on royalties from Allergan on U.S. net sales of Namzaric; 2) the Company’s risk adjusted discount rates; and 3) the probability of a change in control occurring during the term of the note based on the percentage of similar companies that were acquired over the previous five year period. Changes in the estimated fair value of the bifurcated embedded derivative are reported as gains or losses in interest and other income, net, in the condensed consolidated statement of operations. In the periods presented, the Company evaluated the embedded derivative value as a result of an event of default and the value as a result of increased costs due to a regulatory change and considered both to have no material value based on current assessment of probability, but could become material in future periods if a specified event of default or regulatory change became more probable than is currently estimated. See Note 8 “Long-Term Debt” for further description.

At September 30, 2020, the embedded derivative related to the Royalty-Backed Loan was the only recurring fair value measurement with Level 3 unobservable inputs. A risk-adjusted discount rate of 18.4% and a probability of a change in control of 3.0% were applied to calculate the value of the embedded derivative. Significant increases (or decreases) in the discount rate, and significant increases (or decreases) in the probability of a change in control would result in a significantly higher (or lower) fair value measurement.

The following table sets forth changes in Level 3 liabilities measured at fair value on a recurring basis for the three and nine months ended September 30, 2020 and 2019 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Beginning balance	$	2,595	$	1,501	$	2,157	$	1,352

Change in fair value included in interest and other income, net	(169)		138		269		287
Ending balance	$	2,426	$	1,639	$	2,426	$	1,639

There were no transfers into or out of Level 3 during the three and nine months ended September 30, 2020 and 2019.

- 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

Investments

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investments

INVESTMENTS

The Company’s investments consist of corporate debt, U.S. Treasury securities, and commercial paper classified as available-for-sale securities.

The Company limits the amount of investment exposure as to institution, maturity, and investment type. To mitigate credit risk, the Company invests in investment grade corporate debt, U.S. Treasury securities, and commercial paper. Such securities are reported at fair value, with unrealized gains and losses excluded from earnings and shown separately as a component of accumulated other comprehensive income (loss) within stockholders’ equity. Realized gains and losses are reclassified from other comprehensive income (loss) to other income on the condensed consolidated statements of operations when incurred. The Company may pay a premium or receive a discount upon the purchase of available-for-sale securities. Interest earned and gains realized on available-for-sale securities and amortization of discounts received and accretion of premiums paid on the purchase of available-for-sale securities are included in investment income.

The following table is a summary of amortized cost, unrealized gain and loss, and the fair value of available-for-sale securities as of September 30, 2020 and December 31, 2019 (in thousands):


	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investments:
Corporate debt	$	10,649	$	30	$	—	$	10,679
U.S. Treasury securities	30,993		2		—		30,995

Total	$	41,642	$	32	$	—	$	41,674
Reported as:
Short-term investments	$	41,642	$	32	$	—	$	41,674

Total	$	41,642	$	32	$	—	$	41,674


	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investments:
Corporate debt	$	22,582	$	3	$	(9)	$	22,576
U.S. Treasury securities	37,789		22		—		37,811
Commercial paper	6,446		—		—		6,446
Total	$	66,817	$	25	$	(9)	$	66,833
Reported as:
Short-term investments	$	66,817	$	25	$	(9)	$	66,833

Total	$	66,817	$	25	$	(9)	$	66,833

Short-term investments include accrued interest of $0.1 million and $0.4 million as of September 30, 2020 and December 31, 2019, respectively. For the three and nine months ended September 30, 2020, there were gross realized gains on investments of $0 and $55,000, respectively, and no gross realized losses for both periods. There were no gross realized gains or losses on investments for the three and nine months ended September 30, 2019. Realized gains are reflected in interest and other income, net, in the condensed consolidated statements of operations, using the specific-identification method. Investments are classified as short-term or long-term depending on the underlying investment’s maturity date. The Company had no investments with a maturity date greater than 12 months as of September 30, 2020 and December 31, 2019. All investments with unrealized losses at September 30, 2020 have been in a loss position for less than twelve months or the loss is not material and were temporary in nature. The Company does not intend to sell the investments that are in an unrealized loss position before recovery of their amortized cost basis.

Inventory

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Inventory

INVENTORY

If the Company identifies excess, obsolete or unsalable product, the Company will write down its inventory to net realizable value in the period it is identified. During the nine months ended September 30, 2020 and 2019, the Company recorded a $0.3 million and $0.6 million, respectively, provision for the write-down of inventory to cost of sales. Inventory consists of the following (in thousands):


	September 30, 2020		December 31, 2019
Raw materials	$	802	$	1,057
Work-in-process	3,465		1,925
Finished goods	2,587		2,285
Total inventory	$	6,854	$	5,267

License Agreements	9 Months Ended
License Agreements	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
License Agreements	LICENSE AGREEMENTS In November 2012, the Company granted Forest Laboratories Holdings Limited “Forest”, an indirect wholly-owned subsidiary of Allergan plc (collectively “Allergan”) an exclusive license, with right to sublicense, certain of the Company’s intellectual property rights relating to human therapeutics containing memantine in the United States. In connection with these rights, Allergan markets and sells Namzaric® and Namenda XR® for the treatment of moderate to severe dementia related to Alzheimer’s disease. Pursuant to the agreement, Allergan made an upfront payment of $65.0 million. The Company earned and received additional cash payments totaling $95.0 million upon achievement by Allergan of certain development and regulatory milestones. Under the agreement, external costs incurred related to the prosecution and litigation of intellectual property rights are reimbursable. Reimbursable external costs are recorded as a reduction to selling, general and administrative, net. For the three and nine months ended September 30, 2020 and 2019, there were no reimbursable external costs for prosecution or litigation of intellectual property rights. In addition, the Company may earn tiered royalty payments based on net sales of Namzaric and Namenda XR. Beginning in May 2020, the Company became entitled to receive royalties at rates in the low double digits to mid-teens from Allergan for sales of Namzaric in the United States. The Company recognized $1.2 million and $2.0 million in Namzaric royalty revenue for the three and nine months ended September 30, 2020, respectively, and recognized no royalty revenue for the three and nine months ended September 30, 2019. Accrued revenue related to Namzaric royalties is recorded in prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets. Allergan’s obligation to pay royalties with respect to fixed-dose memantine-donepezil products, including Namzaric, continues until the later of (i) 15 years after the commercial launch of the first fixed-dose memantine-donepezil product by Allergan in the United States or (ii) the expiration of the Orange Book listed patents for which Allergan obtained rights from the Company covering such product, but is eliminated in any quarter where there is significant competition from generics. Based on Allergan’s and the Company’s current settlement agreements with the Namzaric ANDA filers to date, the earliest date on which any of these agreements grant a license to market a Namzaric ANDA filer’s generic version of Namzaric is January 1, 2025 (or earlier in certain circumstances). Alternatively, the Namzaric ANDA filers with the earliest license date have the option to launch an authorized generic version of Namzaric beginning on January 1, 2026 instead of launching their own generic version of Namzaric on January 1, 2025. For further discussion of Namzaric ANDA filers, see Litigation and Other Legal Proceedings in “Note 7 – Commitments and Contingencies”. Beginning in June 2018, the Company was entitled to receive royalties at rates in the low to mid-single digits for sales of Namenda XR in the United States. The Company does not expect to receive royalties on net sales of Namenda XR, due to the entry of generic versions of Namenda XR. Royalties under the license agreement will be recognized when the related sales occur, in accordance with the sales-based royalty exception.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	COMMITMENTS AND CONTINGENCIES Purchase Commitments The Company has entered into agreements for the supply of active pharmaceutical ingredient with Moehs Ibérica, S.L. and AMSA S.p.A., and the manufacture of commercial supply of GOCOVRI with Catalent Pharma Solutions, LLC. Under the terms of the agreements, the Company will supply the vendors with non-cancelable firm commitment purchase orders. The Company has also entered into other agreements with certain vendors for the provision of services, including services related to data access and packaging, under which the Company is contractually obligated to make certain payments to the vendors. The Company enters into contracts in the normal course of business that include, among others, arrangements with CROs for clinical trials, vendors for preclinical research, and vendors for manufacturing. These contracts generally provide for termination upon notice, and therefore the Company believes that its obligations under these agreements are not material. Contingencies 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. The Company accrues a liability for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. Indemnification In accordance with the Company’s amended and restated certificate of incorporation and amended and restated bylaws, the Company has indemnification obligations to its officers and directors for certain events or occurrences, subject to certain limits, while they are serving in such capacity. The Company has a directors and officers liability insurance policy that may enable it to recover a portion of any amounts paid for claims. In addition, in the normal course of business, the Company enters into contracts and agreements that may contain a variety of representations and warranties and provide for general indemnifications. For example, the Company provided certain indemnifications to its agents and underwriters as part of the Company’s January 2018 underwritten secondary public offering of common stock. Underwriters have now made a claim to such indemnifications in conjunction with the ongoing litigation involving that transaction. Litigation and Other Legal Proceedings In November 2012, the Company granted Forest an exclusive license to certain of the Company’s intellectual property rights relating to human therapeutics containing memantine in the United States. Under the terms of that license agreement, Forest has the right to enforce such intellectual property rights which are related to its right to market and sell Namzaric and Namenda XR for the treatment of moderate to severe dementia related to Alzheimer’s disease. The Company has a right to participate in, but not control, such enforcement actions by Forest. In 2018 and as of the date of this filing, multiple generic companies have launched generic versions of Namenda XR. As of the date of this filing, a number of companies have submitted ANDAs including one or more certifications pursuant to 21 U.S.C. § 355(j)(2)(A)(vii)(iv) to the FDA requesting approval to manufacture and market generic versions of Namzaric, on which the Company is entitled to receive royalties from Forest beginning in May 2020. As of the date of this filing, the Company and Forest have settled with all such Namzaric ANDA filers, including all first filers on all the available dosage forms of Namzaric. Subject to those agreements, the earliest date on which any of these agreements grant a license to market a Namzaric ANDA filer’s generic version of Namzaric is January 1, 2025 (or earlier in certain circumstances). Alternatively, the Namzaric ANDA filers with the earliest date have the option to launch an authorized generic version of Namzaric beginning on January 1, 2026 instead of launching their own generic version of Namzaric on January 1, 2025. The Company and Forest intend to continue to enforce the patents associated with Namzaric. On February 16, 2018, Osmotica Pharmaceuticals LLC and Vertical Pharmaceuticals LLC (“Osmotica”) filed an action against the Company in U.S. District Court for the state of Delaware, requesting a declaratory judgment that Osmotica’s newly-approved product Osmolex ER™ (amantadine) extended release tablets do not infringe certain of the Company’s patents. On September 20, 2018, the Company filed its first amended answer including infringement counterclaims against Osmotica asserting Osmotica has infringed nine Company patents under 35 U.S.C. §§ 271(a), (b), and/or (c) and 35 U.S.C. § 271(e)(2)(A) and seeking various forms of relief, including damages, treble damages, injunctive relief, and an order pursuant to 35 U.S.C. § 271(e)(4)(A) that the effective date of any approval of Osmotica’s NDA for Osmolex ER™ be a date that is not earlier than the latest expiration date of the Company patents involved in the lawsuit. This action is ongoing, but was stayed on May 23, 2019 at the parties’ joint request. On July 1, 2020, the Company received a letter dated June 29, 2020, notifying the Company that Zydus Worldwide DMCC (“Zydus Worldwide”) submitted to the FDA an ANDA for Amantadine Extended-Release Capsules, 68.5 mg and 137 mg that contains certifications pursuant to 21 U.S.C. § 355(j)(2)(A)(vii)(IV) with respect to the Company’s U.S. Patent Nos. 8,389,578; 8,741,343; 8,796,337; 8,889,740; 8,895,614; 8,895,615; 8,895,616; 8,895,617; 8,895,618; 9,867,791; 9,867,792; 9,867,793; 9,877,933; and 10,154,971, that these patents are invalid or will not be infringed by the manufacture, use or sale of Zydus Worldwide’s Amantadine Extended-Release Capsules, 68.5 mg and 137 mg. On August 13, 2020, the Company filed a lawsuit against Zydus Worldwide and Zydus Pharmaceuticals (USA), Inc. (collectively “Zydus”) alleging infringement of those patents and U.S. Patent No. 10,646,456 by Zydus in the United States District Court for the District of New Jersey. This action is ongoing and is in an early stage. U.S. Patent No. 10,646,456 was not listed in the Orange Book at the time Zydus Worldwide filed its ANDA, but on or about September 3, 2020, the Company received a letter dated September 2, 2020, notifying the Company that Zydus Worldwide submitted a certifications pursuant to 21 U.S.C. § 355(j)(2)(A)(vii)(IV) with respect to the Company’s U.S. Patent No. 10,646,456 with respect to its ANDA for Amantadine Extended-Release Capsules, 68.5 mg and 137 mg. On April 1, 2019, the Company was served with a complaint filed in the United States District Court for the Northern District of California (Case No. 3:18-cv-03018-JCS) against the Company and several Allergan entities alleging violations of Federal and state false claims acts (“FCA”) in connection with the commercialization of Namenda XR and Namzaric by Allergan. The lawsuit is a qui tam complaint brought by a named individual, Zachary Silbersher, asserting rights of the Federal government and various state governments. The lawsuit was originally filed in May 2018 under seal, and the Company became aware of the lawsuit when it was served. The complaint alleges that patents held by Allergan and the Company covering Namenda XR and Namzaric were procured through fraud on the United States Patent and Trademark Office and that these patents were asserted against potential generic manufacturers of Namenda XR and Namzaric to prevent the generic manufacturers from entering the market, thereby wrongfully excluding generic competition resulting in an artificially high price being charged to government payors. The Company’s patents in question were licensed exclusively to Forest. The complaint includes a claim for damages of “potentially more than $2.5 billion dollars,” treble damages “under the federal FCA and most of the State FCAs,” and “statutory penalties that can be assessed for each false claim.” This action is ongoing. The federal and state governments have declined to intervene in this action. To the Company’s knowledge, the individual plaintiff is pursuing the lawsuit in his individual capacity. The Company believes it has strong factual and legal defenses and intends to defend itself vigorously. The Company is in the early stages of this litigation. On May 13, 2019, a putative class action lawsuit alleging violations of the federal securities laws was filed in California Superior Court for the County of Alameda (Case No. RG1901875). The lawsuit alleges violations of the Securities Act of 1933 by the Company and certain of the Company’s current and former directors and officers for allegedly making false statements and omissions in the registration statement and prospectus filed by the Company in connection with its January 24, 2018, secondary public offering of common stock. On October 29, 2020, Adamas signed a Memorandum of Understanding to settle this lawsuit for a payment of $7.5 million to eligible settlement class members in resolution of claims asserted against the Company, its officers, directors, and the other defendants. The settlement will be paid by the Company’s Director & Officer liability insurance. As a result of signing the Memorandum of Understanding and the potential liability becoming probable and estimable, the Company has recorded a litigation settlement liability of $7.5 million, which is included in other current liabilities on the Condensed Consolidated Balance Sheets. Additionally, the Company has recorded an insurance litigation recovery of $7.5 million within prepaid expenses and other current assets on the Condensed Consolidated Balance Sheets, which represents the estimated insurance proceeds agreed with the Company’s insurance carrier in excess of the Company’s retention. The Company and the other defendants continue to deny each of the plaintiff’s claims and all liability. The Company has agreed to the settlement to resolve the disputes, avoid the costs and risks of further litigation, and avoid further distractions to management. This settlement remains subject to final documentation and approval by the court. A final non-appealable closure of this court action is expected in mid-2021. On December 10, 2019, another putative class action lawsuit alleging violations of the federal securities laws was filed in federal court in the Northern District of California (Case No. 4:19-cv-08051). This lawsuit alleges violations of the Securities Exchange Act of 1934 by the Company and certain of the Company’s current and former officers. On March 16, 2020, a shareholder derivative lawsuit was filed in federal court in the Northern District of California (Case No. 4:20-cv-01815). This lawsuit alleges breaches of fiduciary duty and violations of the Securities Exchange Act of 1934 by certain of the Company’s current and former directors and officers. The Company is named as a nominal defendant only. On April 6, 2020, another, virtually identical, shareholder derivative lawsuit was filed in federal court in the Northern District of California (Case No. 4:20-cv-02320). This lawsuit contains the same allegations, claims, and defendants as the first derivative action. Other similar cases may be filed in the future. In all of these actions, Plaintiffs seek unspecified monetary damages and other relief. These actions are ongoing. The Company believes it has strong factual and legal defenses to all actions and intends to defend itself vigorously. From time to time, the Company may be party to legal proceedings, investigations, and claims in the ordinary course of its business. Other than the matters described above, the Company is not currently party to any material legal proceedings.

Long-term Debt

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Long-term Debt

LONG-TERM DEBT

Royalty-Backed Loan Agreement

In May 2017, the Company, through a new wholly-owned subsidiary, Adamas Pharma, LLC, entered into a Royalty-Backed Loan with HCRP, whereby the Company initially borrowed $35 million, followed by an additional $65 million received in the fourth quarter 2017 upon FDA’s recognition in the Orange Book of seven-year orphan drug exclusivity, which GOCOVRI earned upon approval on August 24, 2017. Principal and interest will be payable quarterly from the proceeds of a 12.5% royalty on U.S. net sales of GOCOVRI and up to $15 million of the Company’s annual royalties from Allergan on U.S. net sales of Namzaric starting in May 2020, pursuant to the Company’s license agreement with Allergan. The royalty rate on net sales of GOCOVRI will drop to 6.25% after the principal amount of the loan has been repaid in full, until the Company has made total payments of 200% of the funded amounts. The Company may elect to voluntarily prepay the loan at any time, or may be required to prepay subject to specified prepayment trigger events as described below, in which case the amount due will be 200% of the funded amounts, less total payments made to date. Royalty rates are subject to increase to 17.5% and 22.5% if total principal and interest payments have not reached minimum specified levels at measurement dates on December 2021 and December 2022, respectively. Under the terms of the loan, HCRP has recourse to Adamas Pharma, LLC, not the Company. The loan agreement matures in December 2026 but as the repayment of the loan amount is contingent upon the sales volumes of GOCOVRI and

royalties from Allergan, the repayment term may be shortened depending on the actual sales of GOCOVRI and actual royalties received from Allergan.

The loans bear interest at an annual rate of 11% on the outstanding principal amount and includes an interest-only period until the interest payment date following the ninth full calendar quarter after the $65 million additional loan received in the fourth quarter 2017. To the extent that royalties were insufficient to pay interest in full during the first nine quarters of the loan, any unpaid portion of the quarterly interest payment was added to the principal amount of the loans. This payment-in-kind period ended in the first quarter of 2020.

In connection with the Royalty-Backed Loan, in 2017 the Company paid HCRP a lender expense amount of $0.4 million and incurred additional debt issuance costs totaling $0.8 million. The lender expense and additional debt issuance costs have been recorded as a debt discount and are being amortized and recorded as interest expense over the estimated term of the loan using the effective interest method. The Company recorded interest expense, including amortization of the debt discount, related to the Royalty-Backed Loan, of $3.5 million and $10.6 million for the three and nine months ended September 30, 2020, respectively, and $3.9 million and $11.4 million for the three and nine months ended September 30, 2019, respectively. Interest expense over the life of the Royalty-Backed Loan includes an annual interest rate of 11% on the outstanding principal, a royalty rate of 6.25% on net sales of GOCOVRI after the principal amount is paid, and amortization of the debt discount. The effective interest rate as of September 30, 2020 on the amounts borrowed under the Royalty-Backed Loan, including the amortization of the debt discount, was 13.0%.

The assumptions used in determining the expected repayment term of the loan and amortization period of the debt discount require that the Company make estimates that could impact the short and long-term classification of these costs, as well as the period over which these costs will be amortized and the effective interest rate.

The Company may be required to make mandatory prepayments of the borrowings under the Royalty-Backed Loan upon the occurrence of specified prepayment trigger events, including: (1) the occurrence of any event of default or (2) the occurrence of a change in control. Upon the prepayment of all or any of the outstanding principal balance, the Company shall pay, in addition to such prepayment, a prepayment premium. As HCRP, as the holder of the loans, may exercise the option to require prepayment by the Company, the prepayment premium is considered to be an embedded derivative which is required to be bifurcated from its host contract and accounted for as a separate financial instrument. The valuation of the embedded derivative is described further in Note 3.

Payment obligations under the Royalty-Backed Loan are as follows (in thousands):


	September 30, 2020		December 31, 2019
Total repayment obligation	$	200,000	$	200,000
Less: Interest to be accreted in future periods	(52,620)		(63,217)
Less: Payments made	(17,575)		(9,068)
Carrying value of loans payable	$	129,805	$	127,715
Less: Current portion of long-term debt	(3,232)		(2,041)
Non-current portion of long-term debt	$	126,573	$	125,674

The estimated fair value of the long-term debt, as measured using Level 3 inputs, approximates $105.3 million as of September 30, 2020. The estimated fair value was calculated in the same methodology as the valuation of the embedded derivative as described further in Note 3.

There are no contractual minimum principal payments due until the loan matures in December 2026 as the repayment of the loan amount is contingent upon the sales volumes of GOCOVRI and royalties from Allergan on U.S. net sales of Namzaric.

Paycheck Protection Program

On April 15, 2020, the Company received proceeds from a loan in the amount of $2.7 million (the “PPP Loan”) from JPMorgan Chase Bank, N.A. (the “Lender”), pursuant to the Small Business Association (“SBA”) Paycheck Protection Program (or “PPP”) of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). At the time the Company applied for the PPP loan, the Company believed it qualified to receive the funds pursuant to the then published qualification requirements. On April 23, 2020, the SBA, in consultation with the Department of Treasury,

issued new guidance regarding qualification requirements for public companies. Based on the Company’s assessment of the new guidance, on April 29, 2020, the Company repaid the principal and interest on the PPP loan.

Stockholders' Equity

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Common Stock

The amended and restated certificate of incorporation authorizes the Company to issue 100,000,000 shares of common stock. Common stockholders are entitled to dividends as and when declared by the board of directors, subject to the rights of holders of all classes of stock outstanding having priority rights as to dividends. There have been no dividends declared to date. Each share of common stock is entitled to one vote.

Sales Agreement

In November 2019, the Company entered into a sales agreement (“Sales Agreement”) with Cowen and Company, LLC (“Cowen”), as sales agent, pursuant to which the Company may, from time to time, issue and sell at its option, shares of the Company’s common stock for an aggregate offering price of up to $50.0 million under an at-the-market offering (“ATM Offering”). Sales of the common stock, if any, will be made pursuant to a shelf registration statement that was declared effective by the Securities and Exchange Commission (“SEC”) on December 2, 2019. Cowen is acting as sole sales agent for any sales made under the Sales Agreement and the Company will pay Cowen a commission of up to 3% of the gross proceeds. The Company’s common stock will be sold at prevailing market prices at the time of the sale, and, as a result, prices may vary.

The Company is not obligated to make any sales of shares of common stock under the Sales Agreement. Unless otherwise terminated earlier, the Sales Agreement continues until all shares available under the Sales Agreement have been sold. As of September 30, 2020, no shares have been sold under the Sales Agreement.

Shares Reserved for Future Issuance

Shares of the Company’s common stock reserved for future issuance are as follows:


	September 30, 2020	December 31, 2019
Common stock awards issued and outstanding	7,028,987	6,874,633
Authorized for future issuance under 2014 Equity Incentive Plan	3,423,936	2,376,613
Authorized for future issuance under 2016 Inducement Plan	142,536	236,269
Employee stock purchase plan	1,111,497	926,943
Total	11,706,956	10,414,458

Stock-Based Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

Stock Compensation Plans

In January 2020, the common stock available for issuance under the 2014 Equity Incentive Plan (the “2014 Plan”) automatically increased by 4% of the total number of shares of the Company’s capital stock outstanding on December 31, 2019, or 1,118,591 shares.

In February 2020, the Company’s board of directors approved an amendment to the 2016 Inducement Plan (the “Inducement Plan”) to increase the number of shares available for issuance by an additional 450,000.

Employee Stock Purchase Plan

In January 2020, the common stock available for issuance under the 2014 Employee Stock Purchase Plan (the “ESPP”) automatically increased by 1% of the total number of shares of the Company’s capital stock outstanding on December 31, 2019, or 279,648 shares.

Stock-Based Compensation Expense

The following table reflects stock-based compensation expense recognized for the three and nine months ended September 30, 2020 and 2019 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Research and development	$	68	$	386	$	288	$	1,539
Selling, general and administrative	1,559		4,077		4,515		9,247
Total stock-based compensation expense	$	1,627	$	4,463	$	4,803	$	10,786

Stock-based compensation of $53,000 and $206,000 was capitalized into inventory for the three and nine months ended September 30, 2020, respectively, and $74,000 and $134,000 for the three and nine months ended September 30, 2019, respectively. Stock-based compensation capitalized into inventory is recognized as cost of sales when the related product is sold.

Net Loss Per Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Loss Per Share

NET LOSS PER SHARE

For all periods presented, there is no difference in the number of shares used to compute basic and diluted shares outstanding due to the Company’s net loss position. The following total outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented, because including them would have been anti-dilutive (in thousands):


	Three and Nine Months Ended September 30,
	2020	2019
Options to purchase common stock	5,469	5,483
Restricted stock units	1,560	872
Total	7,029	6,355

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. The unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements include all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair statement of the Company’s condensed consolidated financial statements for the periods presented. The condensed consolidated balance sheet at December 31, 2019 was derived from the audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. These interim financial results are not necessarily indicative of results to be expected for the full fiscal year ending December 31, 2020, or any other future period. Readers should read these interim unaudited condensed consolidated financial statements in conjunction with the audited consolidated financial statements and the related notes thereto for the year ended December 31, 2019, included in the Company’s Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission, or SEC. The Company’s critical accounting policies are detailed in its Annual Report on Form 10-K for the year ended December 31, 2019. The Company’s critical accounting policies have not changed materially from December 31, 2019.
Use of Estimates	Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenues and expenses in the consolidated financial statements and the accompanying notes. On an ongoing basis, management evaluates its estimates, including those related to revenue recognition and variable consideration, lease assets and liabilities, clinical trial accruals, fair value of assets and liabilities including short-term and long-term classification, embedded derivatives, income taxes, inventory, and stock-based compensation. Management bases its estimates on historical experience and on various other market-specific and relevant assumptions that management believes to be reasonable under the circumstances. Actual results may differ from those estimates.
Risks and Uncertainties	Risks and Uncertainties The outbreak of the novel Coronavirus (“COVID-19”), which is understood to have begun in December 2019, continues to grow both within the U.S. and globally. The World Health Organization has declared the outbreak of COVID-19 to be a pandemic, and the U.S. federal government has declared it a national emergency. The Company is subject to risks and uncertainties as a result of the outbreak of COVID-19. Despite disruptions to the Company’s business operations, the COVID-19 pandemic did not significantly impact GOCOVRI prescription refill rates for the three and nine months ended September 30, 2020, and thus far management has observed no disruptions to its inventory on hand or planned manufacturing schedule. However, new prescription rates have been impacted due to several factors, including: a fluid environment in which office practices are changing frequently including many healthcare providers have temporarily closed their offices or are restricting patient visits; patients are postponing visits to healthcare provider facilities; and the sales force has moved to a mix of virtual and live interactions with healthcare providers, adapting to the local environment. While management believes this initial decline and continued impact on new prescriptions to be temporary, the duration and severity is dependent on future developments, including new information that may emerge concerning the actions taken to contain or prevent further spread, all of which are highly uncertain and cannot be predicted with confidence. As of the date of issuance of these condensed consolidated financial statements, due to the numerous uncertainties surrounding the COVID-19 pandemic, the Company is unable to predict the extent to which the COVID-19 pandemic may materially adversely affect the Company’s future business, financial results, liquidity and cash flows.
Liquidity	Liquidity Since January 1, 2017, the Company has funded its operations primarily through a royalty-backed loan agreement (“Royalty-Backed Loan”) with HealthCare Royalty Partners III, L.P., (“HCRP”), sales of GOCOVRI, and sales of its common stock. In 2017, the Company entered into a Royalty-Backed Loan with HCRP, whereby the Company borrowed a total of $100.0 million. The Company made GOCOVRI available for physician and patient use in the fourth quarter of 2017, with a full commercial launch in January 2018. In January 2018, the Company completed a follow-on public offering of its common stock from which proceeds raised were approximately $134.3 million, net of underwriting discounts, commissions, and offering-related transaction costs. Prior to the generation of revenue from GOCOVRI, the Company had not generated any commercial revenue from the sale of its products. In November 2019, the Company entered into a sales agreement with Cowen and Company, LLC, pursuant to which it may, from time to time, issue and sell shares of common stock having an aggregate offering value of up to $50.0 million. As of September 30, 2020, no shares had been sold under the sales agreement. As of September 30, 2020, the Company had $92.5 million of cash, cash equivalents, and investments, which management believes will be sufficient to fund its projected operating requirements, including continued commercialization of GOCOVRI for the treatment of dyskinesia in patients with Parkinson’s disease and operations related to completing activities for ADS-5102 for MSW, for at least 12 months from the issuance of this quarterly report on Form 10-Q. However, it is possible that the Company will not achieve the progress it expects, because revenues from GOCOVRI may be less than anticipated, especially in light of the current COVID-19 pandemic.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Accounting Pronouncements Adopted in 2020 In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement, which modifies the disclosure requirements on fair value measurements. The Company adopted the new guidance effective January 1, 2020, and determined the adoption did not have a material impact on its consolidated financial statements. Disclosures are updated in Note 3 “Fair Value Measurements”. In November 2018, the FASB issued ASU 2018-18, Collaborative Arrangements (Topic 808): Clarifying the Interaction between Topic 808 and Topic 606, which amends ASC 808 to clarify ASC 606 should apply in entirety to certain transactions between collaborative arrangement participants. The Company adopted the new guidance effective January 1, 2020, and determined the adoption did not have a material impact on its consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses of Financial Instruments; in November 2018 the FASB issued a subsequent amendment ASU No. 2018-19, Codification Improvements to Topic 326, Financial Instruments—Credit Losses; in April 2019 the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments; in May 2019 the FASB issued ASU No. 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief; and in November 2019 the FASB issued ASU No. 2019-11, Codification Improvements to Topic 326, Financial Instruments—Credit Losses. The new guidance changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. In November 2019 the FASB issued ASU No. 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)—Effective Dates, which defers the effective date of ASU 2016-13 for all entities except SEC reporting companies that are not smaller reporting companies. As a smaller reporting company, this guidance is effective for fiscal years beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the timing and effect the new guidance will have on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes, which is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating but does not expect the new guidance to have a material impact on its consolidated financial statements.

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of fair value hierarchy for the Company’s financial assets and liabilities which require fair value measurement on a recurring basis

The following table represents the fair value hierarchy for the Company’s financial assets and liabilities which require fair value measurement on a recurring basis (in thousands):


	September 30, 2020
	Total		Level 1		Level 2		Level 3
Assets:
Money market	$	26,178	$	26,178	$	—	$	—
Corporate debt	10,679		—		10,679		—
U.S. Treasury securities	30,995		—		30,995		—

Total assets measured at fair value	$	67,852	$	26,178	$	41,674	$	—
Liabilities:
Embedded derivative liability	$	2,426	$	—	$	—	$	2,426
Total liabilities measured at fair value	$	2,426	$	—	$	—	$	2,426


	December 31, 2019
	Total		Level 1		Level 2		Level 3
Assets:
Money market	$	27,720	$	27,720	$	—	$	—
Corporate debt	22,576		—		22,576		—
U.S. Treasury securities	37,811		—		37,811		—
Commercial paper	10,928		—		10,928		—
Total assets measured at fair value	$	99,035	$	27,720	$	71,315	$	—
Liabilities:
Embedded derivative liability	$	2,157	$	—	$	—	$	2,157
Total liabilities measured at fair value	$	2,157	$	—	$	—	$	2,157

Summary of the changes in the estimated fair value of the Company’s embedded derivative

The following table sets forth changes in Level 3 liabilities measured at fair value on a recurring basis for the three and nine months ended September 30, 2020 and 2019 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Beginning balance	$	2,595	$	1,501	$	2,157	$	1,352

Change in fair value included in interest and other income, net	(169)		138		269		287
Ending balance	$	2,426	$	1,639	$	2,426	$	1,639

Investments (Tables)

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Summary of amortized cost, unrealized gain and loss and the fair value of available-for-sale securities

The following table is a summary of amortized cost, unrealized gain and loss, and the fair value of available-for-sale securities as of September 30, 2020 and December 31, 2019 (in thousands):


	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investments:
Corporate debt	$	10,649	$	30	$	—	$	10,679
U.S. Treasury securities	30,993		2		—		30,995

Total	$	41,642	$	32	$	—	$	41,674
Reported as:
Short-term investments	$	41,642	$	32	$	—	$	41,674

Total	$	41,642	$	32	$	—	$	41,674


	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Investments:
Corporate debt	$	22,582	$	3	$	(9)	$	22,576
U.S. Treasury securities	37,789		22		—		37,811
Commercial paper	6,446		—		—		6,446
Total	$	66,817	$	25	$	(9)	$	66,833
Reported as:
Short-term investments	$	66,817	$	25	$	(9)	$	66,833

Total	$	66,817	$	25	$	(9)	$	66,833

Inventory (Tables)

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Schedule of inventory

Inventory consists of the following (in thousands):


	September 30, 2020		December 31, 2019
Raw materials	$	802	$	1,057
Work-in-process	3,465		1,925
Finished goods	2,587		2,285
Total inventory	$	6,854	$	5,267

Long-term Debt (Tables)

9 Months Ended

Sep. 30, 2020

Debt Disclosure [Abstract]

Schedule of payment obligations under the Royalty-Backed Loan

Payment obligations under the Royalty-Backed Loan are as follows (in thousands):


	September 30, 2020		December 31, 2019
Total repayment obligation	$	200,000	$	200,000
Less: Interest to be accreted in future periods	(52,620)		(63,217)
Less: Payments made	(17,575)		(9,068)
Carrying value of loans payable	$	129,805	$	127,715
Less: Current portion of long-term debt	(3,232)		(2,041)
Non-current portion of long-term debt	$	126,573	$	125,674

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

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+ Details

Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2020

Equity [Abstract]

Schedule of shares of Company's common stock reserved for future issuance

Shares of the Company’s common stock reserved for future issuance are as follows:


	September 30, 2020	December 31, 2019
Common stock awards issued and outstanding	7,028,987	6,874,633
Authorized for future issuance under 2014 Equity Incentive Plan	3,423,936	2,376,613
Authorized for future issuance under 2016 Inducement Plan	142,536	236,269
Employee stock purchase plan	1,111,497	926,943
Total	11,706,956	10,414,458

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(27))
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+ Details

Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of allocation of total stock-based compensation expense

The following table reflects stock-based compensation expense recognized for the three and nine months ended September 30, 2020 and 2019 (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Research and development	$	68	$	386	$	288	$	1,539
Selling, general and administrative	1,559		4,077		4,515		9,247
Total stock-based compensation expense	$	1,627	$	4,463	$	4,803	$	10,786

Net Loss Per Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of outstanding shares of potentially dilutive securities excluded from the computation of diluted net loss per share of common stock, because including them would have been anti-dilutive

The following total outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented, because including them would have been anti-dilutive (in thousands):


	Three and Nine Months Ended September 30,
	2020	2019
Options to purchase common stock	5,469	5,483
Restricted stock units	1,560	872
Total	7,029	6,355

Description of Business (Details)	9 Months Ended
Description of Business (Details)	Sep. 30, 2020 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	1

Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($)	1 Months Ended		3 Months Ended	9 Months Ended	12 Months Ended
	Jan. 31, 2018	May 31, 2017	Dec. 31, 2017	Sep. 30, 2020	Dec. 31, 2017	Nov. 30, 2019
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Proceeds from public offerings, net of offering costs	$ 134,300,000
Cash, cash equivalents, and investments				$ 92,500,000
HCRP \| Royalty-backed loan agreement
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Proceeds from issuance of debt		$ 35,000,000	$ 65,000,000		$ 100,000,000.0
Cowen
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
At-the-market offering, aggregate offering price (up to)						$ 50,000,000.0
Sale of shares under the sales agreement (in shares)				0

Fair Value Measurements - Financial Assets and Liabilities Which Require Fair Value Measurement (Details) - Recurring basis - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets:
Total assets measured at fair value	$ 67,852	$ 99,035
Liabilities:
Total liabilities measured at fair value	2,426	2,157
Embedded derivative liability
Liabilities:
Total liabilities measured at fair value	2,426	2,157
Level 1
Assets:
Total assets measured at fair value	26,178	27,720
Liabilities:
Total liabilities measured at fair value	0	0
Level 1 \| Embedded derivative liability
Liabilities:
Total liabilities measured at fair value	0	0
Level 2
Assets:
Total assets measured at fair value	41,674	71,315
Liabilities:
Total liabilities measured at fair value	0	0
Level 2 \| Embedded derivative liability
Liabilities:
Total liabilities measured at fair value	0	0
Level 3
Assets:
Total assets measured at fair value	0	0
Liabilities:
Total liabilities measured at fair value	2,426	2,157
Level 3 \| Embedded derivative liability
Liabilities:
Total liabilities measured at fair value	2,426	2,157
Money market
Assets:
Total assets measured at fair value	26,178	27,720
Money market \| Level 1
Assets:
Total assets measured at fair value	26,178	27,720
Money market \| Level 2
Assets:
Total assets measured at fair value	0	0
Money market \| Level 3
Assets:
Total assets measured at fair value	0	0
Corporate debt
Assets:
Total assets measured at fair value	10,679	22,576
Corporate debt \| Level 1
Assets:
Total assets measured at fair value	0	0
Corporate debt \| Level 2
Assets:
Total assets measured at fair value	10,679	22,576
Corporate debt \| Level 3
Assets:
Total assets measured at fair value	0	0
U.S. Treasury securities
Assets:
Total assets measured at fair value	30,995	37,811
U.S. Treasury securities \| Level 1
Assets:
Total assets measured at fair value	0	0
U.S. Treasury securities \| Level 2
Assets:
Total assets measured at fair value	30,995	37,811
U.S. Treasury securities \| Level 3
Assets:
Total assets measured at fair value	$ 0	0
Commercial paper
Assets:
Total assets measured at fair value		10,928
Commercial paper \| Level 1
Assets:
Total assets measured at fair value		0
Commercial paper \| Level 2
Assets:
Total assets measured at fair value		10,928
Commercial paper \| Level 3
Assets:
Total assets measured at fair value		$ 0

Fair Value Measurements - Narrative (Details) - Level 3 - Embedded derivative liability	Sep. 30, 2020
Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.184
Measurement Input, Change In Control Probability
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.030

Fair Value Measurements - Changes in Estimated Fair Value of Embedded Derivative (Details) - Level 3 - Long-term debt with embedded derivative - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 2,595	$ 1,501	$ 2,157	$ 1,352
Change in fair value included in interest and other income, net	(169)	138	269	287
Ending balance	$ 2,426	$ 1,639	$ 2,426	$ 1,639

Investments (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
Investments (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Available-for-sale securities
Amortized cost	$ 41,642,000		$ 41,642,000		$ 66,817,000
Gross unrealized gains	32,000		32,000		25,000
Gross unrealized losses	0		0		(9,000)
Fair value	41,674,000		41,674,000		66,833,000
Debt securities, available-for-sale, realized gain	0	$ 0	55,000	$ 0
Debt securities, available-for-sale, realized loss	0	$ 0	0	$ 0
Short-term investments
Available-for-sale securities
Amortized cost	41,642,000		41,642,000		66,817,000
Gross unrealized gains	32,000		32,000		25,000
Gross unrealized losses	0		0		(9,000)
Fair value	41,674,000		41,674,000		66,833,000
Accrued interest	100,000		$ 100,000		$ 400,000
Long-term investments \| Maximum
Available-for-sale securities
Maturity of long term investment			12 months		12 months
Corporate debt
Available-for-sale securities
Amortized cost	10,649,000		$ 10,649,000		$ 22,582,000
Gross unrealized gains	30,000		30,000		3,000
Gross unrealized losses	0		0		(9,000)
Fair value	10,679,000		10,679,000		22,576,000
U.S. Treasury securities
Available-for-sale securities
Amortized cost	30,993,000		30,993,000		37,789,000
Gross unrealized gains	2,000		2,000		22,000
Gross unrealized losses	0		0		0
Fair value	$ 30,995,000		$ 30,995,000		37,811,000
Commercial paper
Available-for-sale securities
Amortized cost					6,446,000
Gross unrealized gains					0
Gross unrealized losses					0
Fair value					$ 6,446,000

Inventory (Details) - USD ($) $ in Thousands	9 Months Ended
Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Inventory Disclosure [Abstract]
Provision for write-down of inventory	$ 340	$ 618
Raw materials	802		$ 1,057
Work-in-process	3,465		1,925
Finished goods	2,587		2,285
Total inventory	$ 6,854		$ 5,267

License Agreements (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
License Agreements (Details) - USD ($)	Nov. 30, 2012	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
License Agreements
Revenues		$ 20,176,000	$ 13,933,000	$ 53,451,000	$ 38,289,000
Period describing the commercial launch of dose				15 years
Royalty
License Agreements
Revenues		1,206,000	0	$ 2,046,000	0
License agreement
License Agreements
Upfront payment received	$ 65,000,000.0
Maximum total additional cash payments receivable upon achievement of certain development and regulatory milestones	$ 95,000,000.0
Prosecution and litigation cost		$ 0	$ 0	$ 0	$ 0

- Definition

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

+ References

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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Commitments and Contingencies (Details) $ in Millions	Oct. 29, 2020 USD ($)	Sep. 30, 2020 USD ($) claim
Loss Contingencies [Line Items]
Litigation settlement liability		$ 7.5
Insurance litigation recovery		$ 7.5
Number of legal claims \| claim		0
Qui Tam Complaint \| Pending Litigation \| Unfavorable Regulatory Action
Loss Contingencies [Line Items]
Claim for damages (potentially more than)		$ 2,500.0
Putative Class Action Lawsuit \| Pending Litigation \| Subsequent Event
Loss Contingencies [Line Items]
Litigation settlement, amount awarded to other party	$ 7.5

Long-term Debt - Narrative (Details) - USD ($)			1 Months Ended	3 Months Ended			9 Months Ended		12 Months Ended
Long-term Debt - Narrative (Details) - USD ($)	Apr. 29, 2020	Apr. 15, 2020	May 31, 2017	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2017	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2017
Debt Instrument [Line Items]
Proceeds from PPP Loan		$ 2,700,000					$ 2,650,000	$ 0
Repayments of PPP loan	$ 2,700,000						2,650,000	0
HCRP \| Royalty-backed loan agreement
Debt Instrument [Line Items]
Proceeds from issuance of debt			$ 35,000,000			$ 65,000,000			$ 100,000,000.0
Percentage revenue interest of future net sales			12.50%
Quarterly royalty payment (up to)			$ 15,000,000
Royalty percentage of future net sales			6.25%
Royalty trail cap, percentage of face amount			200.00%
Voluntary prepay election, amount due, percentage of funded amount			200.00%
Interest rate, stated percentage			11.00%
Contingent consideration, asset						$ 65,000,000			$ 65,000,000
Unpaid interest payment added to principal amount, term			2 years 3 months
Lender expense			$ 400,000
Payment of debt issuance costs			$ 800,000
Interest expense				$ 3,500,000	$ 3,900,000		$ 10,600,000	$ 11,400,000
Effective interest rate				13.00%			13.00%
HCRP \| Royalty-backed loan agreement \| Level 3
Debt Instrument [Line Items]
Long-term debt, fair value				$ 105,300,000			$ 105,300,000
HCRP \| Royalty-backed loan agreement \| December 2021
Debt Instrument [Line Items]
Royalty percentage of future net sales if principal and interest payments below minimum specified levels (up to)			17.50%
HCRP \| Royalty-backed loan agreement \| December 2022
Debt Instrument [Line Items]
Royalty percentage of future net sales if principal and interest payments below minimum specified levels (up to)			22.50%