View Filing Data

Print Document View Excel Document

Document And Entity Information - shares	3 Months Ended
Document And Entity Information - shares	Mar. 31, 2014	Apr. 24, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 28, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Trading Symbol	exel
Entity Registrant Name	EXELIXIS, INC.
Entity Central Index Key	0000939767
Entity Filer Category	Large Accelerated Filer
Current Fiscal Year End Date	--01-02
Entity Common Stock, Shares Outstanding		194,694,949

Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands

Mar. 31, 2014

Dec. 31, 2013

^[1]

Current assets:

Cash and cash equivalents

$ 157,539

$ 103,978

Short-term investments

116,033

138,475

Short-term restricted cash and investments

12,208

12,213

Trade and other receivables

4,457

3,941

Inventory

2,686

2,890

Prepaid expenses and other current assets

5,386

5,112

Total current assets

298,309

266,609

Long-term investments

111,155

144,299

Long-term restricted cash and investments

10,814

16,897

Property and equipment, net

4,685

4,910

Goodwill

63,684

Other assets

8,918

6,888

Total assets

497,565

503,287

Current liabilities:

Accounts payable

4,943

9,345

Accrued clinical trial liabilities

39,118

34,958

Accrued compensation and benefits

8,088

12,797

Other accrued liabilities

11,974

13,116

Current portion of convertible notes

10,000

Current portion of loans payable

1,392

1,762

Current portion of restructuring

4,298

4,425

Deferred revenue

1,243

1,450

Total current liabilities

71,056

87,853

Long-term portion of convertible notes

261,408

255,147

Long-term portion of loans payable

80,219

80,328

Long-term portion of restructuring

7,933

9,047

Other long-term liabilities

5,467

4,674

Total liabilities

426,083

437,049

Commitments

Stockholders' Equity:

Preferred stock

Common stock, $0.001 par value; 400,000,000 shares authorized; issued and outstanding: 194,652,943 and 184,533,651 shares at March 31, 2014 and December 31, 2013, respectively

194

184

Additional paid-in capital

1,644,516

1,564,670

Accumulated other comprehensive income

153

146

Accumulated deficit

(1,573,381)

(1,498,762)

Total stockholders’ equity

71,482

66,238

Total liabilities and stockholders' equity

$ 497,565

$ 503,287

[1]	The condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited financial statements as of that date.

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Common stock, par value, in dollars per share	$ 0.001	$ 0.001
Common stock, shares authorized	400,000,000	400,000,000
Common stock, shares issued	194,652,943	184,533,651
Common stock, shares outstanding	194,652,943	184,533,651

Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenues:
Net product revenues	$ 4,905	$ 1,856
License and contract revenues	0	7,813
Total revenues	4,905	9,669
Operating expenses:
Cost of goods sold	309	280
Research and development	54,847	32,735
Selling, general and administrative	14,691	10,545
Restructuring charge	46	119
Total operating expenses	69,893	43,679
Loss from operations	(64,988)	(34,010)
Other income (expense), net:
Interest income and other, net	2,131	338
Interest expense	(11,762)	(11,057)
Total other income (expense), net	(9,631)	(10,719)
Net loss	$ (74,619)	$ (44,729)
Net loss per share, basic and diluted, in dollars per share	$ (0.39)	$ (0.24)
Shares used in computing basic and diluted net loss per share, in shares	191,699	183,742

Condensed Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Statement of Comprehensive Income [Abstract]

Net loss

$ (74,619)

$ (44,729)

Other comprehensive income

^[1]

194

Comprehensive loss

$ (74,612)

$ (44,535)

[1]

Other comprehensive income consisted solely of unrealized gains or losses, net on available for sale securities arising during the periods presented. There were no reclassification adjustments to net loss resulting from realized gains or losses on the sale of securities and there was no income tax expense related to other comprehensive income during those periods.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Cash flows from operating activities:

Net loss

$ (74,619)

$ (44,729)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

498

842

Stock-based compensation expense

3,758

2,679

Accretion of debt discount

6,988

6,314

Gain on warrants

(1,739)

Other

1,475

1,733

Changes in assets and liabilities:

Trade and other receivables

(516)

(1,114)

Inventory

204

(280)

Prepaid expenses and other current assets

(359)

(4,757)

Other assets

(5)

Accounts payable, accrued compensation, and other accrued liabilities

(10,254)

(4,769)

Clinical trial liabilities

4,160

(703)

Restructuring liability

(1,241)

(2,378)

Other long-term liabilities

(229)

(143)

Deferred revenue

(207)

(7,110)

Net cash used in operating activities

(72,086)

(54,415)

Cash flows from investing activities:

Purchases of property and equipment

(384)

(729)

Proceeds from sale of property and equipment

276

Proceeds from maturities of restricted cash and investments

6,598

6,647

Purchase of restricted cash and investments

(504)

Proceeds from maturities of investments

90,311

157,096

Purchases of investments

(35,937)

(96,157)

Net cash provided by investing activities

60,360

66,353

Cash flows from financing activities:

Proceeds from issuance of common stock, net

75,646

Proceeds from exercise of stock options and warrants

120

Principal payments on debt

(10,479)

(10,791)

Net cash provided by (used in) financing activities

65,287

(10,775)

Net increase in cash and cash equivalents

53,561

1,163

Cash and cash equivalents at beginning of period

103,978

^[1]

170,069

Cash and cash equivalents at end of period

157,539

171,232

Supplemental cash flow disclosure - non-cash financing activity:

Issuance of warrants in connection with amendment to convertible notes

$ 2,762

$ 0

[1]	The condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited financial statements as of that date.

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Summary of Significant Accounting Policies	ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization Exelixis, Inc. (“Exelixis,” “we,” “our” or “us”) is a biopharmaceutical company committed to developing small molecule therapies for the treatment of cancer. Our two most advanced assets, COMETRIQ® (cabozantinib), our wholly-owned inhibitor of multiple receptor tyrosine kinases, and cobimetinib (GDC-0973/XL518), a potent, highly selective inhibitor of MEK, which we out-licensed to Genentech, Inc. (a member of the Roche Group) (“Genentech”), are currently the subject of six ongoing phase 3 pivotal trials. We are focusing our development and commercialization efforts primarily on COMETRIQ (cabozantinib), which was approved by the U.S. Food and Drug Administration (“FDA”) on November 29, 2012, for the treatment of progressive, metastatic medullary thyroid cancer (“MTC”) in the United States, where it became commercially available in late January 2013. In March 2014, the European Commission approved COMETRIQ for the treatment of adult patients with progressive, unresectable locally advanced or metastatic MTC. The European Commission granted conditional marketing authorization following a positive opinion from the European Committee for Medicinal Products for Human Use (“CHMP”) issued in December 2013. Basis of Consolidation The consolidated financial statements include the accounts of Exelixis and those of our wholly-owned subsidiaries. These entities’ functional currency is the U.S. dollar. All intercompany balances and transactions have been eliminated. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results of operations and cash flows for the period presented have been included. Exelixis adopted a 52- or 53-week fiscal year that generally ends on the Friday closest to December 31^st. Fiscal year 2013, a 52-week year, ended on December 27, 2013, and fiscal year 2014, a 53-week year, will end on January 2, 2015. For convenience, references in this report as of and for the fiscal quarters ended March 29, 2013 and March 28, 2014, and as of the fiscal year ended December 27, 2013, are indicated as ended March 31, 2013, March 31, 2014, and December 31, 2013, respectively. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending January 2, 2015 or for any future period. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2013, included in our Annual Report on Form 10-K filed with the SEC on February 20, 2014. Segment Information We operate as a single reportable segment. Use of Estimates The preparation of our consolidated financial statements is in conformity with accounting principles generally accepted in the United States which requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. On an ongoing basis, management evaluates its estimates including, but not limited to, those related to inventory, revenue recognition, valuation of long-lived assets, certain accrued liabilities including clinical trial accruals and restructuring liability, valuation of warrants, share-based compensation and the valuation of the debt and equity components of our convertible debt at issuance. We base our estimates on historical experience and on various other market-specific and other relevant assumptions that we believe 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 materially from those estimates. Revenue Recognition We recognize revenue from the sale of COMETRIQ and from license fees and milestones earned on research and collaboration arrangements. See “Note 1 - Organization and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a description of our policies for revenue recognition on research and collaboration agreements. We did not enter into any new collaboration agreements during the three months ended March 31, 2014. See “Note 2 - Research and Collaboration Agreements” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a description of our existing collaboration agreements. Net Product Revenues We recognize revenue when it is both realized or realizable and earned, meaning persuasive evidence of an arrangement exists, delivery has occurred, title has transferred, the price is fixed or determinable, there are no remaining customer acceptance requirements, and collectability of the resulting receivable is reasonably assured. For product sales in the United States, this generally occurs upon shipment of the product to the patient by our distributor. For product sales in Europe, this occurs when our European distribution partner has accepted the product. We sell our product, COMETRIQ, in the United States to a specialty pharmacy that benefits from customer incentives and has a right of return. We have a limited sales history and cannot reliably estimate expected returns of the product nor the discounts and rebates due to payors at the time of shipment to the specialty pharmacy. Accordingly, upon shipment to the specialty pharmacy, we record deferred revenue on our Consolidated Balance Sheets. We recognize revenue when the specialty pharmacy provides the product to a patient based on the fulfillment of a prescription. We record revenue using an analysis of prescription data from our specialty pharmacy to ascertain the date of shipment and the payor mix. This approach is frequently referred to as the “sell-through” revenue recognition model. Once the prescription has been provided to the patient, it is not subject to return unless the product is damaged. Product sales to our European distribution partner are generally not subject to customer incentives, rights of return or discounts and allowances. We record revenue at the time our European distribution partner has accepted the product, a method also known as the “sell-in” revenue recognition model. Product Sales Discounts and Allowances We calculate gross product revenues based on the price that we charge our United States specialty pharmacy and our European distribution partner. We estimate our net product revenues by deducting from our gross product revenues (a) trade allowances, such as discounts for prompt payment, (b) estimated government rebates and chargebacks, and (c) estimated costs of patient assistance programs. We initially record estimates for these deductions at the time we recognize the gross revenue. We update our estimates on a recurring basis as new information becomes available. These discounts and allowances apply only to gross product revenues earned in the United States. See “Note 1 - Organization and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a further description of those discounts and allowances. Cost of Goods Sold Cost of goods sold is related to our product revenues and consisted primarily of a 3% royalty and indirect labor costs, and to a lesser extent, the cost of manufacturing and other third party logistics costs of our product. A significant portion of the manufacturing costs for product sales were incurred prior to regulatory approval of COMETRIQ for the treatment of progressive, metastatic MTC and, therefore, were expensed as research and development costs when those costs were incurred, rather than capitalized as inventory. In accordance with our product development and commercialization agreement with GlaxoSmithKline, we are required to pay GlaxoSmithKline a 3% royalty on the Net Sales of any product incorporating cabozantinib, including COMETRIQ. Net Sales is defined in the product development and commercialization agreement generally as the gross invoiced sales price less customer credits, rebates, chargebacks, shipping costs, customs duties, and sales tax and other similar tax payments we are required to make.

Restructurings

3 Months Ended

Mar. 31, 2014

Restructuring Charges [Abstract]

Restructurings

RESTRUCTURINGS

Between March 2010 and May 2013, we implemented five restructurings (referred to collectively as the “Restructurings”) as a consequence of our decision to focus our proprietary resources and development efforts on the development and commercialization of cabozantinib and strategy to manage costs. The aggregate reduction in headcount from the Restructurings was 429 employees. Charges and credits related to the Restructurings were recorded in periods other than those in which the Restructurings were implemented as a result of sublease activities for certain of our buildings in South San Francisco, California, changes in assumptions regarding anticipated sublease activities, the effect of the passage of time on our discounted cash flow computations, previously planned employee terminations, and sales of excess equipment and other assets.

We have recorded aggregate restructuring charges of $53.3 million in connection with the Restructurings, of which $29.4 million related to facility charges, $21.7 million related to termination benefits, $2.2 million related to the impairment of excess equipment and other assets, and an additional minor amount related to legal and other fees.

For the three months ended March 31, 2014 and 2013, we recorded restructuring charges of $46 thousand and $0.1 million, respectively. The charges for both periods presented were related to the effect of the passage of time on our discounted cash flow computations. During the three months ended March 31, 2014, those charges were partially offset by $0.1 million in recoveries recorded in connection with the sale of excess equipment and other assets.

The total outstanding restructuring liability related to the Restructurings is included in the current and long-term portion of restructuring on the accompanying Consolidated Balance Sheets. The components and changes of these liabilities during the annual periods from inception of the restructuring activities through the year ended December 31, 2013 and during the three months ended March 31, 2014 are summarized in the following table (in thousands):



	Facility Charges			Other			Total
Restructuring liability as of December 31, 2012	$	19,202		$	20		$	19,222
Restructuring charge	662			569			1,231
Cash payments	(6,331		)	(434		)	(6,765		)
Adjustments or non-cash credits including stock compensation expense	(73		)	(238		)	(311		)
Proceeds from sale of assets	—			95			95
Restructuring liability as of December 31, 2013	13,460			12			13,472
Restructuring charge (credit)	159			(113		)	46
Cash payments	(1,403		)	(6		)	(1,409		)
Adjustments or non-cash credits	9			(86		)	(77		)
Proceeds from sale of assets	—			199			199
Restructuring liability as of March 31, 2014	$	12,225		$	6		$	12,231

We expect to pay accrued facility charges of $12.2 million, net of cash received from our subtenants, through the end of our lease terms of the buildings, the last of which ends in 2017. With respect to our Restructurings, we expect to incur additional restructuring charges of approximately $2.5 million which relates to the effect of the passage of time on our discounted cash flow computations for the exit, in prior periods, of certain of our South San Francisco buildings. These charges will be recorded through the end of the building lease terms, the last of which ends in 2017.

The Restructurings have resulted in aggregate cash expenditures of $36.6 million, net of $11.3 million in cash received from subtenants and $2.9 million in cash received in connection with the sale of excess equipment and other assets. Net cash expenditures for the Restructurings were $1.2 million and $2.4 million during the three months ended March 31, 2014 and 2013, respectively.

The restructuring charges that we expect to incur in connection with the Restructurings are subject to a number of assumptions, and actual results may materially differ. We may also incur other material charges not currently contemplated due to events that may occur as a result of, or associated with, the Restructurings.

Cash and Investments

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Cash and Investments

CASH AND INVESTMENTS

The following table summarizes cash and cash equivalents, investments, and restricted cash and investments by balance sheet line item as of March 31, 2014 and December 31, 2013 (in thousands):



	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash and cash equivalents	$	157,538	$	1	$	—		$	157,539
Short-term investments	115,931		119		(17		)	116,033
Short-term restricted cash and investments	12,142		66		—			12,208
Long-term investments	111,110		54		(9		)	111,155
Long-term restricted cash and investments	10,768		46		—			10,814
Total cash and investments	$	407,489	$	286	$	(26	)	$	407,749



	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash and cash equivalents	$	103,978	$	—	$	—		$	103,978
Short-term investments	138,403		94		(22		)	138,475
Short-term restricted cash and investments	12,173		40		—			12,213
Long-term investments	144,226		106		(33		)	144,299
Long-term restricted cash and investments	16,837		60		—			16,897
Total cash and investments	$	415,617	$	300	$	(55	)	$	415,862

Under our loan and security agreement with Silicon Valley Bank, we are required to maintain compensating balances on deposit in one or more investment accounts with Silicon Valley Bank or one of its affiliates. The total collateral balances as of March 31, 2014 and December 31, 2013 were $83.2 million and $83.7 million, respectively, and are reflected on the accompanying Consolidated Balance Sheets in short- and long-term investments. See “Note 8 - Debt” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013, for more information regarding the collateral balance requirements under our Silicon Valley Bank loan and security agreement.

All of our cash equivalents and investments are classified as available-for-sale. The following table summarizes our cash equivalents and investments by security type as of March 31, 2014 and December 31, 2013. The amounts presented exclude cash, but include investments classified as cash equivalents (in thousands):



	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Money market funds	$	71,150	$	—	$	—		$	71,150
Commercial paper	103,273		—		—			103,273
Corporate bonds	208,208		166		(26		)	208,348
U.S. Treasury and government sponsored enterprises	21,372		116		—			21,488
Municipal bonds	2,752		4		—			2,756
Total investments	$	406,755	$	286	$	(26	)	$	407,015



	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Money market funds	$	24,813	$	—	$	—		$	24,813
Commercial paper	94,682		—		—			94,682
Corporate bonds	239,937		190		(55		)	240,072
U.S. Treasury and government sponsored enterprises	44,284		102		—			44,386
Municipal bonds	6,005		8					6,013
Total investments	$	409,721	$	300	$	(55	)	$	409,966

There were no gains or losses on the sales of investments during the three months ended March 31, 2014 and 2013.

All of our investments are subject to a quarterly impairment review. During the three months ended March 31, 2014 and 2013, we did not record any other-than-temporary impairment charges on our available-for-sale securities. As of March 31, 2014, there were 27 investments in an unrealized loss position with an aggregate fair value $39.5 million. All of our investments in an unrealized loss position are corporate bonds. All of our investments in an unrealized loss position have been so for less than one year and the unrealized losses were not attributed to credit risk, but rather associated with the changes in interest rates. Based on the scheduled maturities of our investments, we concluded that the unrealized losses in our investment securities are not other-than-temporary, as it is more likely than not that we will hold these investments for a period of time sufficient for a recovery of our cost basis.

The following summarizes the fair value of securities classified as available-for-sale by contractual maturity as of March 31, 2014 (in thousands):



	Mature within One Year		After One Year through Two Years		Fair Value
Money market funds	$	71,150	$	—	$	71,150
Commercial paper	103,273		—		103,273
Corporate bonds	168,772		39,576		208,348
U.S. Treasury and government sponsored enterprises	15,400		6,088		21,488
Municipal bonds	—		2,756		2,756
Total investments	$	358,595	$	48,420	$	407,015

Cash is excluded from the table above. The classification of certain compensating balances and restricted investments are dependent upon the term of the underlying restriction on the asset and not the maturity date of the investment. Therefore, certain long-term investments and long-term restricted cash and investments have contractual maturities within one year.

Inventory

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Inventory

INVENTORY

Inventory consists of the following (in thousands):



	March 31, 2014		December 31, 2013
Raw materials	$	678	$	529
Work in process	1,665		2,280
Finished goods	343		81
Total	$	2,686	$	2,890

We received regulatory approval for our first product, COMETRIQ, on November 29, 2012. A significant portion of the manufacturing costs for our inventory were incurred prior to regulatory approval of COMETRIQ for the treatment of progressive, metastatic MTC and, therefore, were expensed as research and development costs when those costs were incurred, rather than capitalized as inventory.

Debt

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Debt

DEBT

The amortized carrying amount of our debt consists of the following (in thousands):



	March 31, 2014			December 31, 2013
Convertible Senior Subordinated Notes due 2019	$	169,415		$	165,296
Secured Convertible Notes due 2015	91,993			99,851
Silicon Valley Bank term loan	80,000			80,000
Silicon Valley Bank line of credit	1,611			2,090
Total debt	343,019			347,237
Less: current portion	(1,392		)	(11,762		)
Long-term debt	$	341,627		$	335,475

See “Note 8 - Debt” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013, for additional information on the terms of our debt, including a description of the conversion features of the of 4.25% Convertible Senior Subordinated Notes due 2019 (the “2019 Notes”) and our Secured Convertible Notes due June 2015 (the “Deerfield Notes”).

Convertible Senior Subordinated Notes due 2019

In August 2012, we issued and sold $287.5 million aggregate principal amount the 2019 Notes. As of March 31, 2014, the entire principal balance remains outstanding. The following is a summary of the liability component of the 2019 Notes (in thousands):



	March 31, 2014		December 31, 2013
Net carrying amount of the liability component	$	169,415	$	165,296
Unamortized discount of the liability component	118,085		122,204
Face amount of the 2019 Notes	$	287,500	$	287,500

The debt discount and debt issuance costs will be amortized as interest expense through August 2019. During the three months ended March 31, 2014, total interest expense was $7.4 million, including stated coupon interest of $3.1 million and the amortization of the debt discount and debt issuance costs of $4.3 million. During the three months ended March 31, 2013, total interest expense was $7.0 million including stated coupon interest of $3.1 million and the amortization of the debt discount and debt issuance costs of $3.9 million. The balance of unamortized fees and costs was $3.8 million and $4.0 million as of March 31, 2014 and December 31, 2013, respectively, which is included in Other assets on the accompanying Consolidated Balance Sheets.

Secured Convertible Notes due June 2015

In June 2010, we entered into a note purchase agreement with entities affiliated with Deerfield Management Company, L.P. (“Deerfield”), pursuant to which, on July 1, 2010, we sold to Deerfield an aggregate of $124.0 million initial principal amount of the Deerfield Notes. As of March 31, 2014 and December 31, 2013, the remaining outstanding principal balance on the Deerfield Notes was $104.0 million and $114.0 million, respectively, which, subject to certain limitations, is payable in cash or in stock at our discretion. During the three months ended March 31, 2014, and 2013, total interest expense for the Deerfield Notes was $4.2 million and $3.9 million, respectively, including the stated coupon rate and the amortization of the debt discount and debt issuance costs. The non-cash expense relating to the amortization of the debt discount and debt issuance costs was $2.7 million and $2.4 million, during the three months ended March 31, 2014 and 2013, respectively. The balance of unamortized fees and costs was $3.6 million and $1.4 million as of March 31, 2014 and December 31, 2013, respectively, which is included in Other assets on the accompanying Consolidated Balance Sheets.

On January 22, 2014, the note purchase agreement was amended to provide us with an option to extend the maturity date of our indebtedness under the note purchase agreement to July 1, 2018 (the “Extension Option”). Under the terms of the Extension Option, which expires on March 31, 2015, we have the right to require Deerfield Partners, L.P. and Deerfield International Master Fund, L.P. (the “New Deerfield Purchasers”) to acquire $100 million principal amount of the Deerfield Notes and extend the maturity date to July 1, 2018. If we exercise the Extension Option, the Deerfield Notes would bear interest on and after July 2, 2015 at the rate of 7.5% per annum to be paid in cash, quarterly in arrears, and 7.5% per annum to be paid in kind, quarterly in arrears, for a total interest rate of 15% per annum. We are under no obligation to exercise the Extension Option.

In connection with the amendment to the note purchase agreement, on January 22, 2014 we issued to the New Deerfield Purchasers two-year warrants (the “2014 Deerfield Warrants”) to purchase an aggregate of 1,000,000 shares of our common stock at an exercise price of $9.70 per share, which exercise price is subject to change in the event we exercise the Extension Option. See “Note 6 - Common Stock and Warrants” for further information on those warrants.

We determined that the amendment resulted in the Deerfield Notes being modified. In connection with the amendment, we recorded a $2.8 million deferred commitment fee upon the issuance of the 2014 Deerfield Warrants. See “Note 6 - Common Stock and Warrants” for further information on those warrants. The deferred commitment fee is included in Other assets and will be amortized into interest expense as a yield adjustment through the current maturity date of the Deerfield Notes, July 1, 2015. Third-party expenses, comprised primarily of legal and accounting fees, were expensed as of the date of the amendment.

Common Stock And Warrants

3 Months Ended

Mar. 31, 2014

Warrants and Rights Note Disclosure [Abstract]

Common Stock And Warrants

COMMON STOCK AND WARRANTS

Sale of Shares of Common Stock

In January 2014 we completed a registered underwritten public offering of 10.0 million shares of our common stock at a price of $8.00 per share pursuant to a shelf registration statement previously filed with the SEC, which the SEC declared effective on June 8, 2012. We received $75.6 million in net proceeds from the offering after deducting the underwriting discount and related offering expenses.

Warrants

On January 22, 2014, in connection with the amendment to the note purchase agreement to provide us with the Extension Option, we issued to the New Deerfield Purchasers the 2014 Deerfield Warrants to purchase an aggregate of 1,000,000 shares of our common stock at an exercise price of $9.70 per share. If we exercise the Extension Option, the term of the 2014 Deerfield Warrants will be extended by two years and the exercise price will be reset to the lower of (i) the existing exercise price and (ii) 120% of the volume weighted average price of our common stock for the ten trading days immediately following the date of such extension election. Due to the potential increase in term and decrease of the exercise price, the 2014 Deerfield Warrants were recorded as a liability which is included in Other long-term liabilities. The 2014 Deerfield Warrants are recorded at fair value, on a recurring basis, which was $1.0 million and $2.8 million as of March 31, 2014 and January 22, 2014, respectively. We recorded an unrealized gain on the warrants of $1.7 million during the three months ended March 31, 2014 which is included in Interest income and other, net. See “Note 7 - Fair Value Measurements” for more information on the valuation of these warrants.

At March 31, 2014, the following warrants to purchase common stock were outstanding and exercisable:



Date Issued	Exercise Price per Share		Expiration Date	Number of Shares
June 4, 2008	$	7.40	June 4, 2014	1,000,000
June 10, 2009	$	6.05	June 10, 2014	186,362
January 22, 2014	$	9.70	January 22, 2016	1,000,000
				2,186,362

The warrants issued in June 2008 and January 2014 are Participating Securities. The warrant holders do not have a contractual obligation to share in our losses.

Fair Value Measurements

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The following table sets forth the fair value of our financial assets and liabilities that were measured and recorded on a recurring basis as of March 31, 2014 and December 31, 2013. We did not have any financial liabilities that were measured and recorded on a recurring basis or Level 3 investments as of December 31, 2013. The amounts presented exclude cash, but include investments classified as cash equivalents (in thousands):



	March 31, 2014
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	71,150	$	—	$	—	$	71,150
Commercial paper	—		103,273		—		103,273
Corporate bonds	—		208,348		—		208,348
U.S. Treasury and government sponsored enterprises	—		21,488		—		21,488
Municipal bonds	—		2,756		—		2,756
Total financial assets	$	71,150	$	335,865	$	—	$	407,015
Financial liabilities:
Warrants	$	—	$	—	$	1,022	$	1,022
Total financial liabilities	$	—	$	—	$	1,022	$	1,022



	December 31, 2013
	Level 1		Level 2		Total
Money market funds	$	24,813	$	—	$	24,813
Commercial paper	—		94,682		94,682
Corporate bonds	—		240,072		240,072
U.S. Treasury and government sponsored enterprises	—		44,386		44,386
Municipal bonds	—		6,013		6,013
Total financial assets	$	24,813	$	385,153	$	409,966

There were no transfers between any of the fair value hierarchies, as determined at the end of each reporting period.

The estimated fair values of our financial instruments that are carried at amortized cost for which it is practicable to determine a fair value were as follows (in thousands):



	March 31, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
2019 Notes	$	169,415	$	255,731	$	165,296	$	339,883
Silicon Valley Bank term loan	$	80,000	$	79,900	$	80,000	$	79,946
Silicon Valley Bank line of credit	$	1,611	$	1,611	$	2,090	$	2,090

We believe it is not practicable to determine the fair value of the Deerfield Notes due to the unique structure of the instrument that was financed by entities affiliated with Deerfield.

The carrying amounts of cash, trade and other receivables, accounts payable and accrued clinical trial liabilities approximate their fair values and are excluded from the tables above.

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate a value:


•	When available, we value investments based on quoted prices for those financial instruments, which is a Level 1 input. Our remaining investments are valued using third-party pricing sources, which use observable market prices, interest rates and yield curves observable at commonly quoted intervals of similar assets as observable inputs for pricing, which is a Level 2 input.


•	The 2019 Notes are valued using a third-party pricing model that is based in part on average trading prices, which is a Level 2 input. The 2019 Notes are not marked-to-market and are shown at their initial fair value less the unamortized discount; the portion of the value allocated to the conversion option is included in Stockholders’ equity on the accompanying Consolidated Balance Sheets.


•	We estimate the fair value of our other debt instruments, where possible, using the net present value of the payments discounted at an interest rate that is consistent with money-market rates that would have been earned on our non-interest-bearing compensating balances, which is a Level 2 input.

•

The 2014 Deerfield Warrants are valued using a Monte Carlo simulation model. The expected life is based on the contractual terms of the 2014 Deerfield Warrants, and in certain simulations, assumes the two year extension that would result from our exercise of the Extension Option. We consider implied volatility as well as our historical volatility in developing our estimate of expected volatility. The fair value of the 2014 Deerfield Warrants were estimated using the following assumptions, which, except for risk-free interest rate, are Level 3 inputs (dollars in thousands):



				January 22, 2014
	March 31, 2014			(issuance date)
Fair value of warrants	$	1,022		$	2,762
Risk-free interest rate	0.98		%	0.95		%
Dividend yield	—		%	—		%
Volatility	84		%	57		%
Average expected life	3.0 years			3.2 years

- 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

Stock-Based Compensation

3 Months Ended

Mar. 31, 2014

Share-based Compensation [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

We recorded and allocated employee stock-based compensation expenses for our equity incentive plans and our 2000 Employee Stock Purchase Plan (“ESPP”) as follows (in thousands):



	Three Months Ended March 31,
	2014		2013
Research and development expense	$	1,565	$	1,407
Selling, general and administrative expense	2,193		1,268
Total employee stock-based compensation expense	$	3,758	$	2,675

We use the Black-Scholes option pricing model to value our stock options. The expected life computation is based on historical exercise patterns and post-vesting termination behavior. We considered implied volatility as well as our historical volatility in developing our estimate of expected volatility. The fair value of employee stock option awards and ESPP purchases was estimated using the following assumptions and weighted average fair values:



	Stock Options
	Three Months Ended March 31,
	2014			2013
Weighted average grant-date fair value	$	4.70		$	2.45
Risk-free interest rate	1.59		%	0.78		%
Dividend yield	—		%	—		%
Volatility	81		%	62		%
Expected life	5.5 years			5.2 years



	Employee Stock Purchase Plan
	Three Months Ended March 31,
	2014			2013
Weighted average grant-date fair value	$	1.59		$	1.59
Risk-free interest rate	0.08		%	0.15		%
Dividend yield	—		%	—		%
Volatility	62		%	67		%
Expected life	6 months			6 months

Of the stock options outstanding as of March 31, 2014, 3,720,752 were granted subject to performance objectives tied to the achievement of goals set by the Compensation Committee of our Board of Directors and will vest in full or part based on achievement of such goals. As of March 31, 2014, we expect that achievement of some of those performance objectives is probable and have, therefore, recorded for stock-based compensation expense in connection with such awards. We have not included any stock-based compensation expense for stock options with performance objectives where the performance goals cannot be reasonably assured of achievement; the grant date fair value of such awards was $6.9 million.

A summary of all stock option activity for the three months ended March 31, 2014 is presented below (dollars in thousands, except per share amounts):



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Options outstanding at December 31, 2013	23,983,275		$	6.48
Granted	626,290		$	6.96
Exercised	(19,090	)	$	6.28
Forfeited	(5,979	)	$	5.73
Expired	(352,342	)	$	7.75
Options outstanding at March 31, 2014	24,232,154		$	6.47	4.46	$	2
Exercisable at March 31, 2014	14,057,195		$	7.12	3.35	$	2

As of March 31, 2014, $26.6 million of total unrecognized compensation expense related to employee stock options was expected to be recognized over a weighted-average period of 2.52 years.

A summary of all restricted stock unit (“RSU”) activity for the three months ended March 31, 2014 is presented below (dollars in thousands, except per share amounts):



	Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Awards outstanding at December 31, 2013	1,810,521		$	5.56
Awarded	32,096		$	6.77
Released	(81,590	)	$	7.11
Forfeited	(14,687	)	$	5.56
Awards outstanding at March 31, 2014	1,746,340		$	5.51	3.18	$	5,903

As of March 31, 2014, $6.7 million of total unrecognized compensation expense related to employee RSUs was expected to be recognized over a weighted-average period of 3.18 years.

Net Loss Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Net Loss Per Share

NET LOSS PER SHARE

The following table sets forth a reconciliation of basic and diluted net loss per share (in thousands, except per share amounts):



	Three Months Ended March 31,
	2014			2013
Numerator:
Net loss	$	(74,619	)	$	(44,729	)
Denominator:
Shares used in computing basic and diluted net loss per share	191,699			183,742
Net loss per share, basic and diluted	$	(0.39	)	$	(0.24	)

The following table sets forth outstanding potential shares of common stock that are not included in the computation of diluted net loss per share because, to do so would be anti-dilutive (in thousands):



	March 31
	2014	2013
Convertible debt	54,123	54,123
Outstanding stock options, unvested RSUs and ESPP contributions	26,302	18,181
Warrants	2,186	1,441
Total potentially dilutive shares	82,611	73,745

Concentrations of Credit Risk

3 Months Ended

Mar. 31, 2014

Risks and Uncertainties [Abstract]

Concentrations of Credit Risk

CONCENTRATIONS OF CREDIT RISK

Financial instruments that potentially subject us to concentrations of credit risk are primarily trade and other receivables and investments. Investments consist of money market funds, taxable commercial paper, corporate bonds with high credit quality, U.S. Treasury and government sponsored enterprises, and municipal bonds. All investments are maintained with financial institutions that management believes are creditworthy.

Trade and other receivables are unsecured and are concentrated in the pharmaceutical and biotechnology industries. Accordingly, we may be exposed to credit risk generally associated with pharmaceutical and biotechnology companies. We have incurred no bad debt expense since inception. As of March 31, 2014, 70% of our trade receivables are with the specialty pharmacy that sells COMETRIQ in the United States and 6% are with our European distribution partner. Both of these customers pay promptly and within their respective payment terms.

We have operations primarily in the United States, while some of our collaboration partners have headquarters outside of the United States and certain of our clinical trials for cabozantinib are conducted outside of the United States. During the three months ended March 31, 2013, 100% of our revenues were earned in the United States. During the second quarter of 2013, we initiated a Named Patient Use (“NPU”) program through our distribution partner, Swedish Orphan Biovitrum, to support the distribution and commercialization of COMETRIQ for metastatic MTC primarily in the European Union and potentially other countries. During the three months ended March 31, 2014, 98%, of our revenues were earned in the United States; the remainder of our revenues were earned in the European Union under this NPU program. All of our long-lived assets are located in the United States.

The following table sets forth the percentage of revenues recognized under our collaboration agreements and product sales to the specialty pharmacy that represent 10% or more of total revenues during the three months ended March 31, 2014 and 2013:



	Three Months Ended March 31,
	2014		2013
Collaboration agreement:
Bristol-Myers Squibb	—	%	81	%
Product sales:
Diplomat Specialty Pharmacy	98	%	19	%

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization	Organization Exelixis, Inc. (“Exelixis,” “we,” “our” or “us”) is a biopharmaceutical company committed to developing small molecule therapies for the treatment of cancer. Our two most advanced assets, COMETRIQ® (cabozantinib), our wholly-owned inhibitor of multiple receptor tyrosine kinases, and cobimetinib (GDC-0973/XL518), a potent, highly selective inhibitor of MEK, which we out-licensed to Genentech, Inc. (a member of the Roche Group) (“Genentech”), are currently the subject of six ongoing phase 3 pivotal trials. We are focusing our development and commercialization efforts primarily on COMETRIQ (cabozantinib), which was approved by the U.S. Food and Drug Administration (“FDA”) on November 29, 2012, for the treatment of progressive, metastatic medullary thyroid cancer (“MTC”) in the United States, where it became commercially available in late January 2013. In March 2014, the European Commission approved COMETRIQ for the treatment of adult patients with progressive, unresectable locally advanced or metastatic MTC. The European Commission granted conditional marketing authorization following a positive opinion from the European Committee for Medicinal Products for Human Use (“CHMP”) issued in December 2013.
Basis of Consolidation	Basis of Consolidation The consolidated financial statements include the accounts of Exelixis and those of our wholly-owned subsidiaries. These entities’ functional currency is the U.S. dollar. All intercompany balances and transactions have been eliminated.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and pursuant to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In our opinion, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation of the results of operations and cash flows for the period presented have been included. Exelixis adopted a 52- or 53-week fiscal year that generally ends on the Friday closest to December 31^st. Fiscal year 2013, a 52-week year, ended on December 27, 2013, and fiscal year 2014, a 53-week year, will end on January 2, 2015. For convenience, references in this report as of and for the fiscal quarters ended March 29, 2013 and March 28, 2014, and as of the fiscal year ended December 27, 2013, are indicated as ended March 31, 2013, March 31, 2014, and December 31, 2013, respectively. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending January 2, 2015 or for any future period. These financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2013, included in our Annual Report on Form 10-K filed with the SEC on February 20, 2014.
Fiscal Period, Policy	Exelixis adopted a 52- or 53-week fiscal year that generally ends on the Friday closest to December 31^st. Fiscal year 2013, a 52-week year, ended on December 27, 2013, and fiscal year 2014, a 53-week year, will end on January 2, 2015. For convenience, references in this report as of and for the fiscal quarters ended March 29, 2013 and March 28, 2014, and as of the fiscal year ended December 27, 2013, are indicated as ended March 31, 2013, March 31, 2014, and December 31, 2013, respectively.
Segment Information	Segment Information We operate as a single reportable segment.
Use of Estimates	Use of Estimates The preparation of our consolidated financial statements is in conformity with accounting principles generally accepted in the United States which requires management to make judgments, estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. On an ongoing basis, management evaluates its estimates including, but not limited to, those related to inventory, revenue recognition, valuation of long-lived assets, certain accrued liabilities including clinical trial accruals and restructuring liability, valuation of warrants, share-based compensation and the valuation of the debt and equity components of our convertible debt at issuance. We base our estimates on historical experience and on various other market-specific and other relevant assumptions that we believe 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 materially from those estimates.
Revenue Recognition	Revenue Recognition We recognize revenue from the sale of COMETRIQ and from license fees and milestones earned on research and collaboration arrangements. See “Note 1 - Organization and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a description of our policies for revenue recognition on research and collaboration agreements. We did not enter into any new collaboration agreements during the three months ended March 31, 2014. See “Note 2 - Research and Collaboration Agreements” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a description of our existing collaboration agreements. Net Product Revenues We recognize revenue when it is both realized or realizable and earned, meaning persuasive evidence of an arrangement exists, delivery has occurred, title has transferred, the price is fixed or determinable, there are no remaining customer acceptance requirements, and collectability of the resulting receivable is reasonably assured. For product sales in the United States, this generally occurs upon shipment of the product to the patient by our distributor. For product sales in Europe, this occurs when our European distribution partner has accepted the product. We sell our product, COMETRIQ, in the United States to a specialty pharmacy that benefits from customer incentives and has a right of return. We have a limited sales history and cannot reliably estimate expected returns of the product nor the discounts and rebates due to payors at the time of shipment to the specialty pharmacy. Accordingly, upon shipment to the specialty pharmacy, we record deferred revenue on our Consolidated Balance Sheets. We recognize revenue when the specialty pharmacy provides the product to a patient based on the fulfillment of a prescription. We record revenue using an analysis of prescription data from our specialty pharmacy to ascertain the date of shipment and the payor mix. This approach is frequently referred to as the “sell-through” revenue recognition model. Once the prescription has been provided to the patient, it is not subject to return unless the product is damaged. Product sales to our European distribution partner are generally not subject to customer incentives, rights of return or discounts and allowances. We record revenue at the time our European distribution partner has accepted the product, a method also known as the “sell-in” revenue recognition model. Product Sales Discounts and Allowances We calculate gross product revenues based on the price that we charge our United States specialty pharmacy and our European distribution partner. We estimate our net product revenues by deducting from our gross product revenues (a) trade allowances, such as discounts for prompt payment, (b) estimated government rebates and chargebacks, and (c) estimated costs of patient assistance programs. We initially record estimates for these deductions at the time we recognize the gross revenue. We update our estimates on a recurring basis as new information becomes available. These discounts and allowances apply only to gross product revenues earned in the United States. See “Note 1 - Organization and Summary of Significant Accounting Policies” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 for a further description of those discounts and allowances.
Cost of Goods Sold	Cost of Goods Sold Cost of goods sold is related to our product revenues and consisted primarily of a 3% royalty and indirect labor costs, and to a lesser extent, the cost of manufacturing and other third party logistics costs of our product. A significant portion of the manufacturing costs for product sales were incurred prior to regulatory approval of COMETRIQ for the treatment of progressive, metastatic MTC and, therefore, were expensed as research and development costs when those costs were incurred, rather than capitalized as inventory. In accordance with our product development and commercialization agreement with GlaxoSmithKline, we are required to pay GlaxoSmithKline a 3% royalty on the Net Sales of any product incorporating cabozantinib, including COMETRIQ. Net Sales is defined in the product development and commercialization agreement generally as the gross invoiced sales price less customer credits, rebates, chargebacks, shipping costs, customs duties, and sales tax and other similar tax payments we are required to make.

- Definition

Disclosure of accounting policy regarding (1) the principles it follows in consolidating or combining the separate financial statements, including the principles followed in determining the inclusion or exclusion of subsidiaries or other entities in the consolidated or combined financial statements and (2) its treatment of interests (for example, common stock, a partnership interest or other means of exerting influence) in other entities, for example consolidation or use of the equity or cost methods of accounting. The accounting policy may also address the accounting treatment for intercompany accounts and transactions, noncontrolling interest, and the income statement treatment in consolidation for issuances of stock by a subsidiary.

+ References + Details

- Definition

Disclosure of accounting policy for determining an entity's fiscal year or other fiscal period. This disclosure may include identification of the fiscal period end-date, the length of the fiscal period, any reporting period lag between the entity and its subsidiaries, or equity investees. If a reporting lag exists, the closing date of the entity having a different period end is generally noted, along with an explanation of the necessity for using different closing dates. Any intervening events that materially affect the entity's financial position or results of operations are generally also disclosed.

+ References + Details

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

Restructurings (Tables)

3 Months Ended

Mar. 31, 2014

Restructuring Charges [Abstract]

Summary Of Components Of Restructuring Liability

The components and changes of these liabilities during the annual periods from inception of the restructuring activities through the year ended December 31, 2013 and during the three months ended March 31, 2014 are summarized in the following table (in thousands):



	Facility Charges			Other			Total
Restructuring liability as of December 31, 2012	$	19,202		$	20		$	19,222
Restructuring charge	662			569			1,231
Cash payments	(6,331		)	(434		)	(6,765		)
Adjustments or non-cash credits including stock compensation expense	(73		)	(238		)	(311		)
Proceeds from sale of assets	—			95			95
Restructuring liability as of December 31, 2013	13,460			12			13,472
Restructuring charge (credit)	159			(113		)	46
Cash payments	(1,403		)	(6		)	(1,409		)
Adjustments or non-cash credits	9			(86		)	(77		)
Proceeds from sale of assets	—			199			199
Restructuring liability as of March 31, 2014	$	12,225		$	6		$	12,231

Cash and Investments Cash and Investments (Tables)

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-Sale Securities

The following table summarizes cash and cash equivalents, investments, and restricted cash and investments by balance sheet line item as of March 31, 2014 and December 31, 2013 (in thousands):



	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash and cash equivalents	$	157,538	$	1	$	—		$	157,539
Short-term investments	115,931		119		(17		)	116,033
Short-term restricted cash and investments	12,142		66		—			12,208
Long-term investments	111,110		54		(9		)	111,155
Long-term restricted cash and investments	10,768		46		—			10,814
Total cash and investments	$	407,489	$	286	$	(26	)	$	407,749



	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Cash and cash equivalents	$	103,978	$	—	$	—		$	103,978
Short-term investments	138,403		94		(22		)	138,475
Short-term restricted cash and investments	12,173		40		—			12,213
Long-term investments	144,226		106		(33		)	144,299
Long-term restricted cash and investments	16,837		60		—			16,897
Total cash and investments	$	415,617	$	300	$	(55	)	$	415,862

Summary of Cash and Investments by Security Type

The amounts presented exclude cash, but include investments classified as cash equivalents (in thousands):



	March 31, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Money market funds	$	71,150	$	—	$	—		$	71,150
Commercial paper	103,273		—		—			103,273
Corporate bonds	208,208		166		(26		)	208,348
U.S. Treasury and government sponsored enterprises	21,372		116		—			21,488
Municipal bonds	2,752		4		—			2,756
Total investments	$	406,755	$	286	$	(26	)	$	407,015



	December 31, 2013
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Money market funds	$	24,813	$	—	$	—		$	24,813
Commercial paper	94,682		—		—			94,682
Corporate bonds	239,937		190		(55		)	240,072
U.S. Treasury and government sponsored enterprises	44,284		102		—			44,386
Municipal bonds	6,005		8					6,013
Total investments	$	409,721	$	300	$	(55	)	$	409,966

Summary of Available-for-Sale Securities by Contractual Maturity

The following summarizes the fair value of securities classified as available-for-sale by contractual maturity as of March 31, 2014 (in thousands):



	Mature within One Year		After One Year through Two Years		Fair Value
Money market funds	$	71,150	$	—	$	71,150
Commercial paper	103,273		—		103,273
Corporate bonds	168,772		39,576		208,348
U.S. Treasury and government sponsored enterprises	15,400		6,088		21,488
Municipal bonds	—		2,756		2,756
Total investments	$	358,595	$	48,420	$	407,015

Inventory (Tables)

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory

Inventory consists of the following (in thousands):



	March 31, 2014		December 31, 2013
Raw materials	$	678	$	529
Work in process	1,665		2,280
Finished goods	343		81
Total	$	2,686	$	2,890

Debt (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Schedule Of Debt

The amortized carrying amount of our debt consists of the following (in thousands):



	March 31, 2014			December 31, 2013
Convertible Senior Subordinated Notes due 2019	$	169,415		$	165,296
Secured Convertible Notes due 2015	91,993			99,851
Silicon Valley Bank term loan	80,000			80,000
Silicon Valley Bank line of credit	1,611			2,090
Total debt	343,019			347,237
Less: current portion	(1,392		)	(11,762		)
Long-term debt	$	341,627		$	335,475

Summary Of The Liability Component Of The 2019 Notes

The following is a summary of the liability component of the 2019 Notes (in thousands):



	March 31, 2014		December 31, 2013
Net carrying amount of the liability component	$	169,415	$	165,296
Unamortized discount of the liability component	118,085		122,204
Face amount of the 2019 Notes	$	287,500	$	287,500

- 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.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Common Stock And Warrants (Tables)

3 Months Ended

Mar. 31, 2014

Warrants and Rights Note Disclosure [Abstract]

Schedule Of Warrants To Purchase Common Stock Outstanding And Exercisable

At March 31, 2014, the following warrants to purchase common stock were outstanding and exercisable:



Date Issued	Exercise Price per Share		Expiration Date	Number of Shares
June 4, 2008	$	7.40	June 4, 2014	1,000,000
June 10, 2009	$	6.05	June 10, 2014	186,362
January 22, 2014	$	9.70	January 22, 2016	1,000,000
				2,186,362

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details

Fair Value Measurements Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Schedule Of Fair Value Of Financial Assets Measured On A Recurring Basis

The amounts presented exclude cash, but include investments classified as cash equivalents (in thousands):



	March 31, 2014
	Level 1		Level 2		Level 3		Total
Financial assets:
Money market funds	$	71,150	$	—	$	—	$	71,150
Commercial paper	—		103,273		—		103,273
Corporate bonds	—		208,348		—		208,348
U.S. Treasury and government sponsored enterprises	—		21,488		—		21,488
Municipal bonds	—		2,756		—		2,756
Total financial assets	$	71,150	$	335,865	$	—	$	407,015
Financial liabilities:
Warrants	$	—	$	—	$	1,022	$	1,022
Total financial liabilities	$	—	$	—	$	1,022	$	1,022



	December 31, 2013
	Level 1		Level 2		Total
Money market funds	$	24,813	$	—	$	24,813
Commercial paper	—		94,682		94,682
Corporate bonds	—		240,072		240,072
U.S. Treasury and government sponsored enterprises	—		44,386		44,386
Municipal bonds	—		6,013		6,013
Total financial assets	$	24,813	$	385,153	$	409,966

Schedule Of Estimated Fair Value Of Outstanding Debt

The estimated fair values of our financial instruments that are carried at amortized cost for which it is practicable to determine a fair value were as follows (in thousands):



	March 31, 2014				December 31, 2013
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
2019 Notes	$	169,415	$	255,731	$	165,296	$	339,883
Silicon Valley Bank term loan	$	80,000	$	79,900	$	80,000	$	79,946
Silicon Valley Bank line of credit	$	1,611	$	1,611	$	2,090	$	2,090

Schedule of Assumptions Used

The fair value of the 2014 Deerfield Warrants were estimated using the following assumptions, which, except for risk-free interest rate, are Level 3 inputs (dollars in thousands):



				January 22, 2014
	March 31, 2014			(issuance date)
Fair value of warrants	$	1,022		$	2,762
Risk-free interest rate	0.98		%	0.95		%
Dividend yield	—		%	—		%
Volatility	84		%	57		%
Average expected life	3.0 years			3.2 years

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

Share-based Compensation [Abstract]

Schedule Of Allocated Employee Stock-Based Compensation Expenses

We recorded and allocated employee stock-based compensation expenses for our equity incentive plans and our 2000 Employee Stock Purchase Plan (“ESPP”) as follows (in thousands):



	Three Months Ended March 31,
	2014		2013
Research and development expense	$	1,565	$	1,407
Selling, general and administrative expense	2,193		1,268
Total employee stock-based compensation expense	$	3,758	$	2,675

Schedule Of Fair Value Of Employee Share-Based Payments Awards Estimated Using The Assumptions And Weighted Average Fair Values

The fair value of employee stock option awards and ESPP purchases was estimated using the following assumptions and weighted average fair values:



	Stock Options
	Three Months Ended March 31,
	2014			2013
Weighted average grant-date fair value	$	4.70		$	2.45
Risk-free interest rate	1.59		%	0.78		%
Dividend yield	—		%	—		%
Volatility	81		%	62		%
Expected life	5.5 years			5.2 years



	Employee Stock Purchase Plan
	Three Months Ended March 31,
	2014			2013
Weighted average grant-date fair value	$	1.59		$	1.59
Risk-free interest rate	0.08		%	0.15		%
Dividend yield	—		%	—		%
Volatility	62		%	67		%
Expected life	6 months			6 months

Summary Of All Stock Option Activity

A summary of all stock option activity for the three months ended March 31, 2014 is presented below (dollars in thousands, except per share amounts):



	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Options outstanding at December 31, 2013	23,983,275		$	6.48
Granted	626,290		$	6.96
Exercised	(19,090	)	$	6.28
Forfeited	(5,979	)	$	5.73
Expired	(352,342	)	$	7.75
Options outstanding at March 31, 2014	24,232,154		$	6.47	4.46	$	2
Exercisable at March 31, 2014	14,057,195		$	7.12	3.35	$	2

Summary Of All RSU Activity

A summary of all restricted stock unit (“RSU”) activity for the three months ended March 31, 2014 is presented below (dollars in thousands, except per share amounts):



	Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Awards outstanding at December 31, 2013	1,810,521		$	5.56
Awarded	32,096		$	6.77
Released	(81,590	)	$	7.11
Forfeited	(14,687	)	$	5.56
Awards outstanding at March 31, 2014	1,746,340		$	5.51	3.18	$	5,903

Net Loss Per Share (Tables)

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Schedule Of Reconciliation Of Basic And Diluted Net Income (Loss) Per Share

The following table sets forth a reconciliation of basic and diluted net loss per share (in thousands, except per share amounts):



	Three Months Ended March 31,
	2014			2013
Numerator:
Net loss	$	(74,619	)	$	(44,729	)
Denominator:
Shares used in computing basic and diluted net loss per share	191,699			183,742
Net loss per share, basic and diluted	$	(0.39	)	$	(0.24	)

Schedule Of Potential Shares Of Common Stock Not Included In Computation Of Diluted Net Loss Per Share



	March 31
	2014	2013
Convertible debt	54,123	54,123
Outstanding stock options, unvested RSUs and ESPP contributions	26,302	18,181
Warrants	2,186	1,441
Total potentially dilutive shares	82,611	73,745

Concentrations of Credit Risk (Tables)

3 Months Ended

Mar. 31, 2014

Risks and Uncertainties [Abstract]

Schedules of collaborators that represent 10% or more of total revenues



	Three Months Ended March 31,
	2014		2013
Collaboration agreement:
Bristol-Myers Squibb	—	%	81	%
Product sales:
Diplomat Specialty Pharmacy	98	%	19	%

Organization and Summary of Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2014 segment trial	Mar. 31, 2013
Operations [Line Items]
Operating Cycle	371 days	364 days
Number of trials in process \| trial	6
Number of operating segments \| segment	1
Glaxo Smith Kline [Member]
Operations [Line Items]
Percent of royalty on net sale	3.00%
Minimum [Member]
Operations [Line Items]
Operating Cycle	364 days
Maximum [Member]
Operations [Line Items]
Operating Cycle	371 days

Restructurings (Narrative) (Details) $ in Thousands	3 Months Ended		12 Months Ended	49 Months Ended
Restructurings (Narrative) (Details) $ in Thousands	Mar. 31, 2014 USD ($) employee	Mar. 31, 2013 USD ($)	Dec. 31, 2013 USD ($)	Mar. 31, 2014 USD ($) employee restructuring	Dec. 31, 2012 USD ($)
Restructuring Cost and Reserve [Line Items]
Number of restructurings implemented \| restructuring				5
Aggregate reduction in headcount \| employee	429			429
Restructuring charge (credit)	$ 46	$ 119	$ 1,231	$ 53,300
Restructuring reserve	12,231		13,472	12,231	$ 19,222
Expected additional payment for restructuring	2,500
Restructuring reserve, settled with cash	1,409		6,765	36,600
Proceeds from subtenants				11,300
Proceeds from sale of property and equipment	276	0
Restructuring reserve, cash settlement net of proceeds	1,200	$ 2,400
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charge (credit)	159		662	29,400
Restructuring reserve	12,225		13,460	12,225	$ 19,202
Restructuring reserve, settled with cash	1,403		$ 6,331
Termination Benefits [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charge (credit)				21,700
Asset Impairment [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charge (credit)	$ (100)			2,200
Proceeds from sale of property and equipment				$ 2,900

Restructurings (Summary of Components of Restructuring Liability) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended	49 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014
Restructuring Reserve [Roll Forward]
Restructuring liability	$ 13,472	$ 19,222	$ 19,222
Restructuring charge (credit)	46	119	1,231	$ 53,300
Cash payments	(1,409)		(6,765)	(36,600)
Adjustments or non-cash credits	(77)		(311)
Proceeds from sale of assets	199		95
Restructuring liability	12,231		13,472	12,231
Facility Charges [Member]
Restructuring Reserve [Roll Forward]
Restructuring liability	13,460	19,202	19,202
Restructuring charge (credit)	159		662	29,400
Cash payments	(1,403)		(6,331)
Adjustments or non-cash credits	9		(73)
Proceeds from sale of assets	0		0
Restructuring liability	12,225		13,460	12,225
Other [Member]
Restructuring Reserve [Roll Forward]
Restructuring liability	12	$ 20	20
Restructuring charge (credit)	(113)		569
Cash payments	(6)		(434)
Adjustments or non-cash credits	(86)		(238)
Proceeds from sale of assets	199		95
Restructuring liability	$ 6		$ 12	$ 6

Cash and Investments Cash and Investments (Details)	3 Months Ended
Cash and Investments Cash and Investments (Details)	Mar. 31, 2014 USD ($) account affiliate investment	Mar. 31, 2013 USD ($)	Dec. 31, 2013 USD ($)
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 407,489,000		$ 415,617,000
Gross Unrealized Gains	286,000		300,000
Gross Unrealized Losses	(26,000)		(55,000)
Fair Value	$ 407,749,000		415,862,000
Debt collateral, number of required investment accounts \| account	1
Debt collateral, number of affiliate banks \| affiliate	1
Amortized Cost	$ 406,755,000		409,721,000
Gross Unrealized Gains	286,000		300,000
Gross Unrealized Losses	(26,000)		(55,000)
Fair Value	407,015,000		409,966,000
Gain (loss) on sale of investments	$ 0	$ 0
Number of investments in an unrealized loss position, less than 1 year \| investment	27
Unrealized loss position, less than 1 year	$ 39,500,000
Number of investments in an unrealized loss position, greater than 1 year \| investment	0
Unrealized loss position, greater than 1 year	$ 0
Mature within One Year	358,595,000
After One Year through Two Years	48,420,000
Money market funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	71,150,000		24,813,000
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		0
Fair Value	71,150,000		24,813,000
Mature within One Year	71,150,000
After One Year through Two Years	0
Commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	103,273,000		94,682,000
Gross Unrealized Gains	0		0
Gross Unrealized Losses	0		0
Fair Value	103,273,000		94,682,000
Mature within One Year	103,273,000
After One Year through Two Years	0
Corporate bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	208,208,000		239,937,000
Gross Unrealized Gains	166,000		190,000
Gross Unrealized Losses	(26,000)		(55,000)
Fair Value	208,348,000		240,072,000
Mature within One Year	168,772,000
After One Year through Two Years	39,576,000
U.S. Treasury and government sponsored enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	21,372,000		44,284,000
Gross Unrealized Gains	116,000		102,000
Gross Unrealized Losses	0		0
Fair Value	21,488,000		44,386,000
Mature within One Year	15,400,000
After One Year through Two Years	6,088,000
Municipal bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,752,000		6,005,000
Gross Unrealized Gains	4,000		8,000
Gross Unrealized Losses	0
Fair Value	2,756,000		6,013,000
Mature within One Year	0
After One Year through Two Years	2,756,000
Silicon Valley Bank Loan And Security Agreement [Member]
Schedule of Available-for-sale Securities [Line Items]
Collateral balance	83,200,000		83,700,000
Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	157,538,000		103,978,000
Gross Unrealized Gains	1,000		0
Gross Unrealized Losses	0		0
Fair Value	157,539,000		103,978,000
Short-term investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	115,931,000		138,403,000
Gross Unrealized Gains	119,000		94,000
Gross Unrealized Losses	(17,000)		(22,000)
Fair Value	116,033,000		138,475,000
Short-term restricted cash and investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	12,142,000		12,173,000
Gross Unrealized Gains	66,000		40,000
Gross Unrealized Losses	0		0
Fair Value	12,208,000		12,213,000
Long-term investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	111,110,000		144,226,000
Gross Unrealized Gains	54,000		106,000
Gross Unrealized Losses	(9,000)		(33,000)
Fair Value	111,155,000		144,299,000
Long-term restricted cash and investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,768,000		16,837,000
Gross Unrealized Gains	46,000		60,000
Gross Unrealized Losses	0		0
Fair Value	$ 10,814,000		$ 16,897,000

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

Mar. 31, 2014

Dec. 31, 2013

Inventory Disclosure [Abstract]

Raw materials

$ 678

$ 529

Work in process

1,665

2,280

Finished goods

343

Total

$ 2,686

$ 2,890

^[1]

[1]	The condensed consolidated balance sheet as of December 31, 2013 has been derived from the audited financial statements as of that date.

Debt (Schedule Of Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Total debt	$ 343,019	$ 347,237
Less: current portion	(1,392)	(11,762)
Long-term debt	341,627	335,475
Senior Subordinated Notes [Member] \| Convertible Senior Subordinated Notes due 2019 [Member]
Debt Instrument [Line Items]
Convertible Debt	169,415	165,296
Secured Debt [Member] \| Deerfield Notes [Member]
Debt Instrument [Line Items]
Convertible Debt	91,993	99,851
Term Loan [Member] \| Silicon Valley Bank term loan and Line of Credit [Member]
Debt Instrument [Line Items]
Silicon Valley Bank term loan	80,000	80,000
Line of Credit [Member] \| Silicon Valley Bank term loan and Line of Credit [Member]
Debt Instrument [Line Items]
Silicon Valley Bank Line of Credit	$ 1,611	$ 2,090

Debt (Narrative) (Details)		3 Months Ended
Debt (Narrative) (Details)	Jan. 22, 2014 USD ($) $ / warrant shares	Mar. 31, 2014 USD ($) $ / warrant shares	Mar. 31, 2013 USD ($)	Dec. 31, 2013 USD ($)	Aug. 14, 2012 USD ($)	Jun. 30, 2010 USD ($)
Debt Instrument [Line Items]
Warrants outstanding \| shares		2,186,362
Issued On January 22, 2014 [Member]
Debt Instrument [Line Items]
Warrant period	2 years
Warrants outstanding \| shares	1,000,000	1,000,000
Warrant exercise price (in dollars per warrant) \| $ / warrant	9.70	9.70
Senior Subordinated Notes [Member] \| 4.25% Convertible Senior Subordinated Notes due August 15, 2019 [Member]
Debt Instrument [Line Items]
Debt, interest rate					4.25%
Debt, principal amount		$ 287,500,000		$ 287,500,000	$ 287,500,000
Convertible debt		169,415,000		165,296,000
Interest expense, debt		7,400,000	$ 7,000,000
Interest expense, coupon interest		3,100,000	3,100,000
Amortization of financing costs and discounts		4,300,000	3,900,000
Balance of unamortized closing fees and expenses		3,800,000		4,000,000
Secured Convertible Notes Due June 2015 [Member] \| Deerfield Financing [Member]
Debt Instrument [Line Items]
Debt, principal amount						$ 124,000,000.0
Convertible debt		104,000,000		114,000,000
Interest expense, debt		4,200,000	3,900,000
Amortization of financing costs and discounts		2,700,000	$ 2,400,000
Balance of unamortized closing fees and expenses		$ 3,600,000		$ 1,400,000
Principal eligible for extension option	$ 100,000,000
Debt instrument, interest rate, stated percentage after extension option election	15.00%
Debt instrument, discount	$ 2,800,000
Secured Convertible Notes Due June 2015 [Member] \| Deerfield Financing [Member] \| Coupon Interest [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage after extension option election	7.50%
Secured Convertible Notes Due June 2015 [Member] \| Deerfield Financing [Member] \| Payment-in-Kind Interest [Member]
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage after extension option election	7.50%

Debt (2019 Notes) (Details) - Senior Subordinated Notes [Member] - 4.25% Convertible Senior Subordinated Notes due August 15, 2019 [Member] - USD ($)	Mar. 31, 2014	Dec. 31, 2013	Aug. 14, 2012
Debt Instrument [Line Items]
Net carrying amount of the liability component	$ 169,415,000	$ 165,296,000
Unamortized discount of the liability component	118,085,000	122,204,000
Face amount	$ 287,500,000	$ 287,500,000	$ 287,500,000

Common Stock And Warrants (Narrative) (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended
	Jan. 22, 2014 USD ($) $ / warrant shares	Jan. 31, 2014 USD ($) $ / shares shares	Mar. 31, 2014 USD ($) $ / warrant shares	Mar. 31, 2013 USD ($)
Class of Warrant or Right [Line Items]
Public offering of common stock \| shares		10,000,000
Share price (dollars per share) \| $ / shares		$ 8
Net proceeds from public offering \| $		$ 75,600	$ 75,646	$ 0
Warrants outstanding \| shares			2,186,362
Issued On January 22, 2014 [Member]
Class of Warrant or Right [Line Items]
Warrant period	2 years
Warrants outstanding \| shares	1,000,000		1,000,000
Warrant exercise price (in dollars per warrant) \| $ / warrant	9.70		9.70
Warrant repricing terms on exercise of extension option	120.00%
Fair value of warrants \| $	$ 2,800		$ 1,000
Unrealized gain on warrants \| $			$ 1,700

Common Stock And Warrants (Schedule Of Warrants To Purchase Common Stock Outstanding And Exercisable) (Details)	3 Months Ended
	Mar. 31, 2014 $ / warrant shares	Jan. 22, 2014 $ / warrant shares
Class of Warrant or Right [Line Items]
Number of Shares	2,186,362
Issued On June 4, 2008 [Member]
Class of Warrant or Right [Line Items]
Exercise Price per Share \| $ / warrant	7.40
Expiration Date	6/4/2014
Number of Shares	1,000,000
Issued On June 10, 2009 [Member]
Class of Warrant or Right [Line Items]
Exercise Price per Share \| $ / warrant	6.05
Expiration Date	6/10/2014
Number of Shares	186,362
Issued On January 22, 2014 [Member]
Class of Warrant or Right [Line Items]
Exercise Price per Share \| $ / warrant	9.70	9.70
Expiration Date	1/22/2016
Number of Shares	1,000,000	1,000,000

Fair Value Measurements (Schedule Of Fair Value Of Financial Assets Measured On A Recurring Basis) (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	$ 407,015	$ 409,966
Warrants	1,022
Total financial liabilities	1,022
Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	71,150	24,813
Warrants	0
Total financial liabilities	0
Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	335,865	385,153
Warrants	0
Total financial liabilities	0
Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	0
Warrants	1,022
Total financial liabilities	1,022
Money market funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	71,150	24,813
Money market funds [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	71,150	24,813
Money market funds [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	0	0
Money market funds [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	0
Commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	103,273	94,682
Commercial paper [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	0	0
Commercial paper [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	103,273	94,682
Commercial paper [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	0
Corporate bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	208,348	240,072
Corporate bonds [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	0	0
Corporate bonds [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	208,348	240,072
Corporate bonds [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	0
U.S. Treasury and government sponsored enterprises [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	21,488	44,386
U.S. Treasury and government sponsored enterprises [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	0	0
U.S. Treasury and government sponsored enterprises [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	21,488	44,386
U.S. Treasury and government sponsored enterprises [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	0
Municipal bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	2,756	6,013
Municipal bonds [Member] \| Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	0	0
Municipal bonds [Member] \| Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	2,756	$ 6,013
Municipal bonds [Member] \| Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total fair value of financial assets	$ 0

Fair Value Measurements (Schedule of Estimated Fair Value of Outstanding Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2014	Dec. 31, 2013
Carrying Amount [Member] \| Senior Subordinated Notes [Member] \| 2019 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair values of financial instruments	$ 169,415	$ 165,296
Carrying Amount [Member] \| Term Loan [Member] \| Silicon Valley Bank term loan and Line of Credit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair values of financial instruments	80,000	80,000
Carrying Amount [Member] \| Line of Credit [Member] \| Silicon Valley Bank term loan and Line of Credit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair values of financial instruments	1,611	2,090
Fair Value [Member] \| Senior Subordinated Notes [Member] \| 2019 Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair values of financial instruments	255,731	339,883
Fair Value [Member] \| Term Loan [Member] \| Silicon Valley Bank term loan and Line of Credit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair values of financial instruments	79,900	79,946
Fair Value [Member] \| Line of Credit [Member] \| Silicon Valley Bank term loan and Line of Credit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair values of financial instruments	$ 1,611	$ 2,090

Fair Value Measurements (Schedule of Assumptions Used) (Details) - Issued On January 22, 2014 [Member] - USD ($) $ in Thousands		3 Months Ended
	Jan. 22, 2014	Mar. 31, 2014
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Warrant period	2 years
Warrant liability [Member]
Fair Value Inputs, Liabilities, Quantitative Information [Line Items]
Fair value of warrants	$ 2,762	$ 1,022
Risk-free interest rate	0.95%	0.98%
Dividend yield	0.00%	0.00%
Volatility	57.00%	84.00%
Average expected life	3 years 2 months 12 days	3 years 7 days

Stock-Based Compensation (Schedule of Allocated Employee Stock-Based Compensation Expenses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation expense	$ 3,758	$ 2,675
Research and development expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation expense	1,565	1,407
Selling, general and administrative expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation expense	$ 2,193	$ 1,268

Stock-Based Compensation (Schedule of Fair Value of Employee Share-Based Payments Awards Estimated Using the Assumptions and Weighted Average Fair Values) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value	$ 4.70	$ 2.45
Risk-free interest rate	1.59%	0.78%
Dividend yield	0.00%	0.00%
Volatility	81.00%	62.00%
Expected life	5 years 6 months	5 years 2 months 12 days
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average grant date fair value	$ 1.59	$ 1.59
Risk-free interest rate	0.08%	0.15%
Dividend yield	0.00%	0.00%
Volatility	62.00%	67.00%
Expected life	6 months	6 months

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, in shares	24,232,154	23,983,275
Performance Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding, in shares	3,720,752
Grant date fair value			$ 6.9
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 26.6
Unrecognized compensation expense, weighted-average period for recognition (in years)	2 years 6 months 7 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation expense	$ 6.7
Unrecognized compensation expense, weighted-average period for recognition (in years)	3 years 2 months 4 days

Stock-Based Compensation (Summary of All Stock Option Activity) (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2014 USD ($) $ / shares shares
Shares [Roll Forward]
Options outstanding at beginning of period, Shares \| shares	23,983,275
Granted, Shares \| shares	626,290
Exercised, Shares \| shares	(19,090)
Forfeited, Shares \| shares	(5,979)
Expired, Shares \| shares	(352,342)
Options outstanding at end of period, Shares \| shares	24,232,154
Exercisable at end of period, Shares \| shares	14,057,195
Weighted Average Exercise Price [Roll Forward]
Options outstanding at beginning of period, Weighted Average Exercise Price \| $ / shares	$ 6.48
Granted, Weighted Average Exercise Price \| $ / shares	6.96
Exercised, Weighted Average Exercise Price \| $ / shares	6.28
Forfeited, Weighted Average Exercise Price \| $ / shares	5.73
Expired, Weighted Average Exercise Price \| $ / shares	7.75
Options outstanding at end of period, Weighted Average Exercise Price \| $ / shares	6.47
Exercisable at end of period, Weighted Average Exercise Price \| $ / shares	$ 7.12
Options outstanding at end of period, Weighted Average Remaining Contractual Term	4 years 5 months 15 days
Exercisable at end of period, Weighted Average Remaining Contractual Term	3 years 4 months 6 days
Options outstanding at end of period, Aggregate Intrinsic Value, in dollars \| $	$ 2
Exercisable at end of period, Aggregate Intrinsic Value, in dollars \| $	$ 2

Stock-Based Compensation (Summary of All RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2014 USD ($) $ / shares shares
Shares [Roll Forward]
RSUs outstanding at beginning of period, Shares \| shares	1,810,521
Awarded, Shares \| shares	32,096
Released, Shares \| shares	(81,590)
Forfeited, Shares \| shares	(14,687)
RSUs outstanding at end of period, Shares \| shares	1,746,340
Weighted Average Grant DateFair Value [Roll Forward]
RSUs outstanding at beginning of period, Weighted Average Grant Date Fair Value \| $ / shares	$ 5.56
Awarded, Weighted Average Grant Date Fair Value \| $ / shares	6.77
Released, Weighted Average Grant Date Fair Value \| $ / shares	7.11
Forfeited, Weighted Average Grant Date Fair Value \| $ / shares	5.56
RSUs outstanding at end of period, Weighted Average Grant Date Fair Value \| $ / shares	$ 5.51
ShareBasedCompensationArrangementByShareBasedPaymentAwardEquityInstrumentsOtherThanOptionsOutstandingWeightedAverageRemainingContractualTerms	3 years 2 months 4 days
RSUs outstanding at end of period, Aggregate Intrinsic Value, in dollars \| $	$ 5,903

Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net loss, in dollars	$ (74,619)	$ (44,729)
Shares used in computing basic and diluted net loss per share	191,699	183,742
Net loss per share, basic and diluted, in dollars per share	$ (0.39)	$ (0.24)
Potentially dilutive shares	82,611	73,745
Convertible debt [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares	54,123	54,123
Outstanding stock options, unvested RSUs and ESPP contributions [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares	26,302	18,181
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive shares	2,186	1,441

- Definition

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

+ References

+ Details

Concentrations of Credit Risk (Details)	3 Months Ended
Concentrations of Credit Risk (Details)	Mar. 31, 2014	Mar. 31, 2013
Revenue from Rights Concentration Risk [Member] \| Accounts Receivable [Member] \| European Distribution Partner [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	6.00%
Revenue from Rights Concentration Risk [Member] \| Accounts Receivable [Member] \| Diplomat Specialty Pharmacy [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	70.00%
Revenue from Rights Concentration Risk [Member] \| Revenue, Rights Granted [Member] \| Bristol-Myers Squibb [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	0.00%	81.00%
Revenue from Rights Concentration Risk [Member] \| Revenue, Rights Granted [Member] \| Diplomat Specialty Pharmacy [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	98.00%	19.00%
Geographic Concentration Risk [Member] \| Sales [Member] \| UNITED STATES
Concentration Risk [Line Items]
Concentration Risk, Percentage	98.00%	100.00%