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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2019	Oct. 24, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2019
Document Transition Report	false
Entity File Number	001-36297
Entity Registrant Name	Revance Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0551645
Entity Address, Address Line One	7555 Gateway Boulevard
Entity Address, City or Town	Newark
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94560
City Area Code	510
Local Phone Number	742-3400
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	RVNC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		45,108,360
Entity Central Index Key	0001479290
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 58,922	$ 73,256
Short-term investments	150,110	102,556
Accounts receivable	5,000	27,000
Prepaid expenses and other current assets	6,536	5,110
Total current assets	220,568	207,922
Property and equipment, net	14,917	14,449
Operating lease right of use assets	27,078
Restricted cash	730	730
Other non-current assets	2,519	3,247
TOTAL ASSETS	265,812	226,348
CURRENT LIABILITIES
Accounts payable	6,902	8,434
Accruals and other current liabilities	18,694	14,948
Deferred revenue, current portion	5,241	8,588
Operating lease liabilities, current portion	3,317
Total current liabilities	34,154	31,970
Derivative liability associated with the Medicis settlement	2,892	2,753
Deferred revenue, net of current portion	50,707	42,684
Operating lease liabilities, net of current portion	26,778
Deferred rent		3,319
TOTAL LIABILITIES	114,531	80,726
Commitments and Contingencies (Note 7)
STOCKHOLDERS’ EQUITY
Convertible preferred stock, par value $0.001 per share — 5,000,000 shares authorized, and no shares issued and outstanding as of September 30, 2019 and December 31, 2018	0	0
Common stock, par value $0.001 per share — 95,000,000 shares authorized as of September 30, 2019 and December 31, 2018; 44,108,407 and 36,975,203 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively	44	37
Additional paid-in capital	950,073	830,368
Accumulated other comprehensive income (loss)	42	(8)
Accumulated deficit	(798,878)	(684,775)
TOTAL STOCKHOLDERS’ EQUITY	151,281	145,622
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 265,812	$ 226,348

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock authorized (shares)	5,000,000	5,000,000
Convertible preferred stock issued (shares)	0	0
Convertible preferred stock outstanding (shares)	0	0
Common stock, par value (in dollar per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	95,000,000	95,000,000
Common stock, shares issued (in shares)	44,108,407	36,975,203
Common stock, shares outstanding (in shares)	44,108,407	36,975,203

Condensed Consolidated Statement of Operations and Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income Statement [Abstract]
Revenue	$ 46	$ 2,362	$ 324	$ 3,242
Operating expenses:
Research and development	25,847	21,848	75,368	66,968
General and administrative	16,739	14,155	43,245	40,505
Total operating expenses	42,586	36,003	118,613	107,473
Loss from operations	(42,540)	(33,641)	(118,289)	(104,231)
Interest income	1,329	996	4,495	3,099
Interest expense	0	0	0	(44)
Change in fair value of derivative liability associated with the Medicis settlement	(68)	(45)	(139)	(150)
Other expense, net	(130)	(144)	(170)	(626)
Net loss	(41,409)	(32,834)	(114,103)	(101,952)
Unrealized gain (loss) and adjustment on securities included in net loss	(74)	90	50	(133)
Comprehensive loss	(41,483)	(32,744)	(114,053)	(102,085)
Basic and diluted net loss	$ (41,409)	$ (32,834)	$ (114,103)	$ (101,952)
Basic and diluted net loss (in dollar per share)	$ (0.96)	$ (0.91)	$ (2.67)	$ (2.82)
Basic and diluted weighted-average number of shares used in computing net loss per share (in shares)	43,314,831	36,272,445	42,730,983	36,116,745

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) Statement - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Other Accumulated Comprehensive Gain (Loss)	Accumulated Deficit
Beginning Balance (in shares) at Dec. 31, 2017		36,516,075
Beginning Balance at Dec. 31, 2017		$ 37	$ 810,975	$ 0	$ (542,167)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2018-07 \| Accounting Standards Update 2018-07			40		(40)
Issuance of common stock upon exercise of stock options (in shares)		284,094
Issuance of restricted stock awards, net of cancellation (in shares)		232,284
Net settlement of restricted stock awards for employee taxes (in shares)		(59,126)
Issuance of common stock relating to employee stock purchase plan (in shares)		18,795
Stock-based compensation expense			12,422
Issuance of common stock upon exercise of stock options			4,382
Net settlement of restricted stock awards for employee taxes			(1,906)
Issuance of common stock relating to employee stock purchase plan			439
Unrealized gain (loss) and adjustment on securities included in net loss	$ (133)			(133)
Net loss	$ (101,952)				(101,951)
Ending Balance (in shares) at Sep. 30, 2018	36,992,122	36,992,122
Ending Balance at Sep. 30, 2018	$ 182,098	$ 37	826,352	(133)	(644,158)
Beginning Balance (in shares) at Jun. 30, 2018		36,917,723
Beginning Balance at Jun. 30, 2018		$ 37	821,326	(223)	(611,284)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment from adoption of ASU 2018-07 \| Accounting Standards Update 2018-07			40		(40)
Issuance of common stock upon exercise of stock options (in shares)		51,006
Issuance of restricted stock awards, net of cancellation (in shares)		26,598
Net settlement of restricted stock awards for employee taxes (in shares)		(3,205)
Stock-based compensation expense			4,092
Issuance of common stock upon exercise of stock options			987
Net settlement of restricted stock awards for employee taxes			(93)
Unrealized gain (loss) and adjustment on securities included in net loss	90			90
Net loss	$ (32,834)				(32,834)
Ending Balance (in shares) at Sep. 30, 2018	36,992,122	36,992,122
Ending Balance at Sep. 30, 2018	$ 182,098	$ 37	826,352	(133)	(644,158)
Beginning Balance (in shares) at Dec. 31, 2018	36,975,203	36,975,203
Beginning Balance at Dec. 31, 2018	$ 145,622	$ 37	830,368	(8)	(684,775)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with the 2019 follow-on offering (in shares)		6,764,705
Issuance of common stock in connection with the 2019 follow-on offering		$ 7	107,572
Issuance of common stock upon exercise of stock options (in shares)		8,240
Issuance of restricted stock awards, net of cancellation (in shares)		400,720
Net settlement of restricted stock awards for employee taxes (in shares)		(75,627)
Issuance of common stock relating to employee stock purchase plan (in shares)		35,166
Stock-based compensation expense			12,882
Issuance of common stock upon exercise of stock options			93
Net settlement of restricted stock awards for employee taxes			(1,229)
Issuance of common stock relating to employee stock purchase plan			387
Unrealized gain (loss) and adjustment on securities included in net loss	50			50
Net loss	$ (114,103)				$ (114,103)
Ending Balance (in shares) at Sep. 30, 2019	44,108,407	44,108,407			0
Ending Balance at Sep. 30, 2019	$ 151,281	$ 44	950,073	42	$ (798,878)
Beginning Balance (in shares) at Jun. 30, 2019		44,105,474
Beginning Balance at Jun. 30, 2019		$ 44	945,851	116	(757,469)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of restricted stock awards, net of cancellation (in shares)		9,697
Net settlement of restricted stock awards for employee taxes (in shares)		(6,764)
Stock-based compensation expense			4,303
Net settlement of restricted stock awards for employee taxes			(81)
Unrealized gain (loss) and adjustment on securities included in net loss	(74)			(74)
Net loss	$ (41,409)				$ (41,409)
Ending Balance (in shares) at Sep. 30, 2019	44,108,407	44,108,407			0
Ending Balance at Sep. 30, 2019	$ 151,281	$ 44	$ 950,073	$ 42	$ (798,878)

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2019 USD ($)
Follow On Offering
Payments of Stock Issuance Costs	$ 521

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (114,103)	$ (101,952)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	2,152	1,251
Amortization of discount on investments	(2,215)	(904)
Stock-based compensation expense	12,882	12,422
Gain on disposal of property and equipment	(7)	(1,480)
Other non-cash operating activities	418	178
Changes in operating assets and liabilities:
Accounts receivable	22,000
Prepaid expenses and other current assets	(1,426)	(5,141)
Operating lease right of use assets	(2,414)
Other non-current assets	999	(1,919)
Accounts payable	(1,050)	793
Accruals and other liabilities	3,532	1,889
Deferred revenue	4,676	21,758
Operating lease liabilities	1,903
Net cash used in operating activities	(72,653)	(73,105)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments	(228,568)	(212,197)
Purchases of property and equipment	(2,950)	(5,367)
Proceeds from maturities of investments	183,000	50,000
Proceeds from sales of property and equipment	7	1,537
Payment for acquisition of in-process research and development		(100)
Net cash used in investing activities	(48,511)	(166,127)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock in connection with the 2019 follow-on offering, net of commissions and discount	108,100
Proceeds from the exercise of stock options and employee stock purchase plan	480	4,822
Net settlement of restricted stock awards for employee taxes	(1,229)	(1,906)
Payment of offering costs	(521)	(366)
Principal payments made on financing obligations		(932)
Net cash provided by financing activities	106,830	1,618
NET DECREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(14,334)	(237,614)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — Beginning of period	73,986	283,476
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH — End of period	59,652	45,862
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for income taxes	3,000	0
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Property and equipment purchases included in accounts payable and accruals	$ 313	$ 920

The Company and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Summary of Significant Accounting Policies	The Company and Summary of Significant Accounting Policies The Company Revance Therapeutics, Inc. (the “Company” or “Revance”) is a biotechnology company developing new innovations in neuromodulators for aesthetic and therapeutic indications. The Company’s lead product candidate, DaxibotulinumtoxinA for Injection (“DAXI”), combines a proprietary stabilizing peptide excipient with a highly purified botulinum toxin that does not contain human or animal-based components. The Company has successfully completed a Phase 3 program for DAXI in glabellar (frown) lines, demonstrating efficacy and long-lasting duration of effect, and is pursuing U.S. regulatory approval in 2020. The Company is also evaluating DAXI in forehead lines and lateral canthal lines (crow’s feet), as well as three therapeutic indications including cervical dystonia, adult upper limb spasticity, and plantar fasciitis, with plans to study migraine. Beyond DAXI, the Company has begun development of a biosimilar to BOTOX®, which would compete in the existing short-acting neuromodulator marketplace. Revance is dedicated to making a difference by transforming patient experiences. Since inception, the Company has devoted substantially all of its efforts to identifying and developing product candidates for the aesthetic and therapeutic pharmaceutical markets, recruiting personnel, raising capital, conducting preclinical and clinical development of, and manufacturing development for DAXI, DaxibotulinumtoxinA Topical, and the biosimilar to BOTOX®. The Company has incurred losses and negative cash flows from operations. The Company has not commenced commercial operations, has not generated product revenue to date, and will continue to incur significant research and development and other expenses related to its ongoing operations. For the three and nine months ended September 30, 2019, the Company had a net loss of $41.4 million and $114.1 million, respectively. As of September 30, 2019, the Company had a working capital surplus of $186.4 million and an accumulated deficit of $798.9 million. The Company has funded its operations primarily through the issuance and sale of common stock, convertible preferred stock, notes payable, and convertible notes. As of September 30, 2019, the Company had capital resources of $209.0 million consisting of cash, cash equivalents, and investments. The Company believes that its existing capital resources will fund the operating plan through at least the next 12 months following the issuance of this Form 10-Q, and may identify additional capital resources to fund its operations. Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited, and reflect all adjustments which are, in the opinion of management, of a normal recurring nature and necessary for a fair statement of the results for the interim periods presented. The Condensed Consolidated Balance Sheet for the year ended December 31, 2018 was derived from audited Consolidated Financial Statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2019, or any other future period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission (“SEC”), on February 28, 2019. The Condensed Consolidated Financial Statements include the Company’s accounts and those of its wholly-owned subsidiaries, and have been prepared in conformity with U.S. GAAP. The Company operates in one segment. Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the company and its wholly-owned subsidiaries. All intercompany transactions have been eliminated. Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Such management estimates include revenue recognition, deferred revenue, accruals including clinical trial accruals, stock-based compensation, fair value of derivative liability, and the valuation of deferred tax assets. The Company bases its estimates on historical experience and on assumptions that it believes are reasonable; however, actual results could significantly differ from those estimates. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires an entity to recognize right-of-use asset and lease liabilities arising from a lease for both financing and operating leases with terms greater than twelve months. In July 2018, the FASB issued ASU 2018-10, Leases (Topic 842), Codification Improvements and ASU 2018-11, Leases (Topic 842), Targeted Improvements, to provide additional guidance for the Topic 842 adoption. ASU 2018-10 clarifies certain provisions and correct unintended applications of the guidance such as the application of implicit rate, lessee reassessment of lease classification, and certain transition adjustments that should be recognized to earnings rather than to stockholders’ equity. ASU 2018-11 provides an alternative transition method to allow entities initially applying Topic 842 at the adoption date, rather than at the beginning of the earliest comparative period presented, and recognizing the cumulative effect of applying the new standard as an adjustment to beginning retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. ASU 2018-11 also provides a number of optional practical expedients in transition. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements. The Company evaluated ASU 2019-01 in its entirety and determined that Issue 3, Transition disclosures related to Topic 250, Accounting Changes and Error Corrections, is the only provision that currently applies to the Company. Issue 3 of ASU 2019-01 exempts certain interim disclosures in the fiscal year of adoption. ASU 2018-11, ASU 2018-10, ASU 2016-02, and Issue 3 of ASU 2019-01 (collectively, “the new lease standards”) are effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company has elected the transition method under ASU 2018-11 at the adoption date of January 1, 2019 on a modified retrospective basis and will not restate comparative periods. The Company has also elected all of the available practical expedients except the practical expedient allowing the use of hindsight in determining the lease term and assessing impairment of right-of-use assets based on all facts and circumstances through the effective date of the new standard. The Company has elected the recognition exemption for short-term leases for all leases that qualify. Under this exemption, the Company will not recognize right-of-use assets or lease liabilities for those leases that qualify as a short-term lease. For real estate leases, the Company did not elect the practical expedient to combine lease and non-lease components, therefore the Company accounts for lease and non-lease components separately. For equipment leases, lease and non-lease components are accounted for as a single lease component. The Company recognized $24.7 million and $28.2 million as total right-of-use assets and total lease liabilities, respectively, on its Condensed Consolidated Balance Sheet as of January 1, 2019 for its existing operating lease agreements for the office and manufacturing spaces in Newark, California and equipment leases. The existing deferred rent liabilities of $3.5 million associated with the same lease agreements was reversed as of January 1, 2019. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company intends to adopt ASU 2018-15 prospectively when it becomes effective on January 1, 2020. The Company’s Condensed Consolidated Financial Statements and disclosures before adoption are not expected to be impacted as a result of the adoption.

Medicis Settlement	9 Months Ended
Medicis Settlement	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Medicis Settlement	Medicis Settlement In July 2009, the Company and Medicis Pharmaceutical Corporation (“Medicis”) entered into a license agreement granting Medicis worldwide aesthetic and dermatological rights to the Company’s investigational botulinum toxin type A product candidate. In October 2012, the Company entered into a settlement and termination agreement with Medicis. The terms of the settlement provided for the reacquisition of the rights related to all territories of DAXI and DaxibotulinumtoxinA Topical from Medicis and for consideration payable by the Company to Medicis of up to $25.0 million, comprised of (i) an upfront payment of $7.0 million, which was paid in 2012, (ii) a proceeds sharing arrangement payment of $14.0 million due upon specified capital raising achievements by the Company, of which $6.9 million was paid in 2013 and $7.1 million in 2014, and (iii) a product approval payment of $4.0 million to be paid upon the achievement of regulatory approval for DAXI or DaxibotulinumtoxinA Topical by the Company. In December 2012, Medicis was subsequently acquired by Valeant Pharmaceuticals International Inc., now known as Bausch Health Companies Inc. The Company determined that the settlement provisions related to the proceeds sharing arrangement payment in (ii) above and product approval payment in (iii) above were derivative instruments that require fair value accounting as a liability and periodic fair value remeasurements until settled. As of September 30, 2019, the fair value of the Company’s liability for the product approval payment was $2.9 million, which was measured using a term of 1.1 years, a risk-free rate of 1.7% and a credit risk adjustment of 7.5%. As of December 31, 2018, the fair value of the Company’s liability for the product approval payment was $2.7 million, which was measured using a term of 1.5 years, a risk-free rate of 2.6% and a credit risk adjustment of 8.0%. The term is based on an expected Biologics License Application (“BLA”) approval in 2020. For the nine months ended September 30, 2019 and 2018, no payment was made for the product approval payment.

Revenue	9 Months Ended
Revenue	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Revenue	Revenue Mylan Collaboration and License Agreement The Company and Mylan Ireland Limited, a wholly-owned indirect subsidiary of Mylan N.V. (“Mylan”) entered into a collaboration agreement in February 2018 (the “Mylan Collaboration”), pursuant to which the companies will collaborate exclusively, on a world-wide basis (excluding Japan), to develop, manufacture, and commercialize a biosimilar to the branded biologic product (onabotulinumtoxinA) marketed as BOTOX®. Under the Mylan Collaboration, Mylan paid the Company a non-refundable upfront payment of $25.0 million with additional contingent payments of up to $100.0 million in the aggregate, upon the achievement of specified clinical and regulatory (i.e., biosimilar biological pathway) milestones and of specified, tiered sales milestones of up to $225.0 million. The upfront payment does not represent a financing component for the transfer of goods or services. The contingent payments would be payable following Mylan’s decision (“Continuation Decision”) to continue development services for the Initial Phase and Phase 3 clinical trials and upon meeting certain milestones. In addition, Mylan would pay the Company low to mid double-digit royalties on any sales of the biosimilar in the U.S., mid double-digit royalties on any sales in Europe, and high single-digit royalties on any sales in other areas excluding Japan. However, the Company agreed to waive royalties for U.S. sales, up to a limit of $50.0 million in annual sales, during the first approximately four years after commercialization to defray launch costs. In August 2019, the Company and Mylan entered into an amendment (the “Mylan Amendment”) to the Mylan Collaboration, pursuant to which, among other things, the Company has agreed to extend the period of time for Mylan to make the Continuation Decision under the Mylan Collaboration as to whether to continue the development and commercialization of the biosimilar beyond the initial development plan, for which both parties prepared and conducted the Biosimilar Initial Advisory Meeting (“BIAM”) with the U.S. Food and Drug Administration (“FDA”). In accordance with the Mylan Amendment, Mylan is required to notify the Company of the Continuation Decision on or before the later of (i) April 30, 2020 or (ii) 30 calendar days from the date that the Company provides Mylan with certain deliverables, and Mylan has agreed to make an incremental payment to the Company in the amount of $5.0 million. Revenue Recognition As of the Mylan Amendment date, the Company has the following unfulfilled non-distinct performance obligations within the Mylan Collaboration: (1) intellectual property (“IP”) license for technology and know–how related to the biosimilar, (2) the performance of development services after the Initial Phase for the biosimilar through the filing of an Investigational New Drug (“IND”) application by the Company, and (3) manufacturing services to provide drug substance or drug product during the development and commercialization periods. The performance obligation related to the initial development services for the biosimilar up to the BIAM was completed in February 2019. In accordance with ASC 606, transaction price is defined as the amount of consideration to which an entity expects to be entitled in exchange for promised goods or services to a customer. The initial estimated transaction price was $81.0 million which included a $25.0 million upfront payment, $40.0 million of development milestones, and the estimated variable consideration for cost-sharing payments from Mylan. The Company re-evaluates the transaction price at each reporting period. As of September 30, 2019, the transaction price allocated to the unfulfilled performance obligations is $107.0 million, which incorporates the impact from the incremental payment of $5.0 million and estimated variable consideration for cost-sharing payments resulting from the Mylan Amendment. The Company recognizes revenue and estimates deferred revenue based on the cost of services incurred over the total estimated cost of services to be provided for the development period. As a result of the extended period of time for Mylan to make the Continuation Decision provided in the Mylan Amendment, both short-term and long-term deferred revenue have been adjusted accordingly to reflect the impact of the extension. For revenue recognition purposes, the development period is estimated to extend through 2024. However, it is possible that this period will change and is assessed at each reporting date. For the three and nine months ended September 30, 2019, the Company recognized revenue related to development services of less than $0.1 million and $0.3 million, respectively. For the three and nine months ended September 30, 2018, the Company recognized revenue related to development services of $2.4 million and $3.2 million, respectively. As of September 30, 2019 and December 31, 2018, the Company estimated short-term deferred revenue of $5.2 million and $8.6 million, respectively; and long-term deferred revenue of $20.7 million and $12.7 million, respectively. Fosun License Agreement The Company and Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd., a wholly-owned subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd (“Fosun”) entered into a license agreement (the “Fosun License Agreement”) in December 2018, whereby the Company has granted Fosun the exclusive rights to develop and commercialize the Company’s proprietary DAXI in mainland China, Hong Kong and Macau (the “Fosun Territory”) and certain sublicense rights. Under the Fosun License Agreement, the Company received a non-refundable upfront payment of $30.0 million net of foreign withholding tax of $3.0 million from Fosun in January 2019. The Company is also eligible to receive (i) additional contingent payments of up to $230.5 million upon the achievement of specified milestones, and (ii) tiered royalty payments in low double-digit to high-teen percentages on annual net sales. Revenue Recognition In accordance with ASC 606, transaction price is defined as the amount of consideration to which an entity expects to be entitled in exchange for promised goods or services to a customer. The Company estimated the transaction price for the Fosun License Agreement using the most likely amount method. The Company evaluated all of the variable payments to be received during the duration of the contract, which included payments from specified milestones, royalties, and estimated supplies to be delivered, and concluded only a certain milestone of $1.0 million was included in the transaction price. The Company will re-evaluate the transaction price at each reporting period and upon a change in circumstances. As of September 30, 2019, the transaction price allocated to unfulfilled performance obligation is $31.0 million. The Company will recognize revenue on the single performance obligation as control of the manufactured product is supplied to Fosun. For the nine months ended September 30, 2019, no revenue has been recognized from the Fosun License Agreement. As of September 30, 2019 and December 31, 2018, substantially all of the $30.0 million non-refundable upfront payment was included in long-term deferred revenue.

Cash Equivalents and Investments

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Cash Equivalents and Investments

The Company’s cash equivalents and investments consist of money market funds, U.S. treasury securities, U.S. government agency obligations, commercial paper, and overnight repurchase agreements which are classified as available-for-sale securities.

The following table is a summary of amortized cost, unrealized gains and losses, and fair value:



	September 30, 2019						December 31, 2018
			Unrealized						Unrealized
(in thousands)	Cost		Gains		Fair Value		Cost		Gains		Losses			Fair Value
Money market funds	$	40,153	$	—	$	40,153	$	38,354	$	—	$	—		$	38,354
U.S. treasury securities	75,326		27		75,353		80,844		5		(5		)	80,844
U.S. government agency obligations	32,867		15		32,882		52,586		—		(8		)	52,578
Commercial paper	43,873		—		43,873		—		—		—			—
Overnight repurchase agreements	14,501		—		14,501		—		—		—			—
Total cash equivalents and available-for-sale securities	$	206,720	$	42	$	206,762	$	171,784	$	5	$	(13	)	$	171,776

Classified as:
Cash equivalents					$	56,652								$	69,220
Short-term investments					150,110									102,556
Total cash equivalents and available-for-sale securities					$	206,762								$	171,776

As of September 30, 2019 and December 31, 2018, the Company has no other-than-temporary impairments on its available-for-sale securities.

Related Party Transactions

The Company had no related party transactions for the nine months ended September 30, 2019.

As of December 31, 2018, JPMorgan Chase & Co. and its wholly owned subsidiaries JPMorgan Chase Bank, National Association (NA), J.P. Morgan Investment Management Inc., and JPMorgan Asset Management (UK) Limited held approximately 3.8 million shares or 10.3% of the Company’s outstanding common stock. J.P. Morgan Securities LLC is an affiliate of JPMorgan Chase Bank, NA, and it acts as a custodian and trustee for certain investments of the Company. As of December 31, 2018, cash, cash equivalents, and investments of $87.7 million were held in an investment account with J.P. Morgan Securities LLC. As of September 30, 2019, JPMorgan Chase & Co. and its wholly owned subsidiaries owned less than 10% of the Company’s outstanding common stock.

Fair Value Measurements

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company determines the fair value of certain financial assets and liabilities using three levels of inputs as follows:


•	Level 1 — Observable inputs, such as quoted prices in active markets for identical assets or liabilities;


•	Level 2 — Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and


•	Level 3 — Valuations based on unobservable inputs to the valuation methodology and including data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances.

The following table summarizes, for assets and liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy:



	September 30, 2019
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets
Money market funds	$	40,153	$	40,153	$	—	$	—
U.S. treasury securities	75,353		75,353		—		—
U.S. government agency obligations	32,882		—		32,882		—
Commercial paper	43,873		—		43,873		—
Overnight repurchase agreements	14,501		—		14,501		—
Total assets measured at fair value	$	206,762	$	115,506	$	91,256	$	—

Liabilities
Derivative liability associated with the Medicis settlement	$	2,892	$	—	$	—	$	2,892
Total liabilities measured at fair value	$	2,892	$	—	$	—	$	2,892



	December 31, 2018
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets
Money market funds	$	38,354	$	38,354	$	—	$	—
U.S. treasury securities	80,844		80,844		—		—
U.S. government agency obligations	52,578		—		52,578		—
Total assets measured at fair value	$	171,776	$	119,198	$	52,578	$	—

Liabilities
Derivative liability associated with the Medicis settlement	$	2,753	$	—	$	—	$	2,753
Total liabilities measured at fair value	$	2,753	$	—	$	—	$	2,753

The Company classifies U.S. government agency obligations, commercial paper, and overnight repurchase agreements within Level 2 because it uses alternative pricing sources and models utilizing market observable inputs to determine their fair values.

The following table summarizes the change in the fair value of the Company’s Level 3 financial instrument:



(in thousands)	Derivative Liability Associated with the Medicis Settlement
Fair value as of December 31, 2018	$	2,753
Change in fair value	139
Fair value as of September 30, 2019	$	2,892

The fair value of the derivative liability associated with the Medicis settlement was determined by estimating the timing and probability of the related regulatory approval and multiplying the payment amount by this probability percentage and a discount factor based primarily on the estimated timing of the payment and a credit risk adjustment (Note 3). Generally, increases or decreases in these unobservable inputs would result in a directionally similar impact to the fair value measurement of this derivative instrument. The significant unobservable inputs used in the fair value measurement of the product approval payment derivative are the expected timing and probability of the payments at the valuation date and the credit risk adjustment.

- 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

Leases

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Leases

The Company has non-cancelable operating leases for facilities for research, manufacturing, and administrative functions, and equipment operating leases. One of the facility operating leases commenced in February 2019. As of September 30, 2019, the weighted average remaining lease term is 7.2 years. The monthly payments for the facility lease escalate over the facility lease term with the exception of a decrease in payments at the beginning of 2022. The Company has options to extend the facility operating leases for up to 14 years. The Company’s lease contracts do not contain termination options, residual value guarantees or restrictive covenants.

The operating lease costs are summarized as follows:



	Three Months Ended		Nine Months Ended
(in thousands)	September 30, 2019		September 30, 2019
Operating lease cost	$	1,425	$	4,193
Variable lease cost ⁽¹⁾	298		886
Total operating lease costs	$	1,723	$	5,079

⁽¹⁾Variable lease cost includes management fees, common area maintenance, property taxes, and insurance, which are not included in the lease liabilities and are expensed as incurred.

As of September 30, 2019, maturities of the Company’s operating lease liabilities are as follows:



Year Ending December 31,	(in thousands)
2019 remaining three months	$	1,633
2020	6,735
2021	6,942
2022	5,464
2023	5,557
2024 and thereafter	17,959
Total operating lease payments	44,290
Less imputed interest ⁽¹⁾	(14,195		)
Present value of operating lease payments	$	30,095

⁽¹⁾The Company’s lease contracts do not provide a readily determinable implicit rate. The imputed interest was based on a weighted average discount rate of 12.0%, which represents the estimated incremental borrowing based on the information available at the adoption or commencement dates.

As of December 31, 2018, the aggregate total future minimum lease payments under non-cancelable operating leases were as follows:



Year Ending December 31,	(in thousands)
2019	$	5,826
2020	6,011
2021	6,196
2022	4,696
2023 and thereafter	20,173
Total payments	$	42,902

Supplemental cash flow information related to the operating leases was as follows:



	Nine Months Ended
(in thousands)	September 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	4,704
Right-of-use assets obtained in exchange for operating lease liabilities	$	3,890

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments The Company and Ajinomoto Althea, Inc. (“Althea”) are parties to a Technology Transfer, Validation and Commercial Fill/Finish Services Agreement (the “Althea Services Agreement”), under which Althea provides the Company a contract development and manufacturing organization, which allows the Company to have expanded capacity and a second source for drug product manufacturing in order to support a global launch of DAXI. Under the Althea Services Agreement, the initial term is to 2024, unless terminated sooner by either company, and the Company has minimum purchase obligations based on its production forecasts. As of September 30, 2019, non-refundable advanced payments of $1.3 million under the Althea Services Agreement have been recorded in prepaid expense on the Company’s Condensed Consolidated Balance Sheets. The remaining services can be canceled at any time, with the Company required to pay costs incurred through the cancellation date. Contingencies The Company is obligated to pay $2.0 million milestone payment to a developer of botulinum toxin, List Biological Laboratories, Inc. (“List Laboratories”), when a certain regulatory milestone is achieved. As of September 30, 2019, the milestone has not been achieved. The Company is also obligated to pay royalties to List Laboratories on future sales of botulinum toxin products. The Company and Botulinum Toxin Research Associates, Inc. (“BTRX”) are parties to an asset purchase agreement (the “BTRX Purchase Agreement”), under which the Company is obligated to pay up to $16.0 million to BTRX upon the satisfaction of milestones relating to the Company’s product revenue, intellectual property, and clinical and regulatory events. As of September 30, 2019, a one-time intellectual property development milestone liability of $1.0 million has been recorded in accruals on the Company’s Condensed Consolidated Balance Sheets. The Company and BioSentinel, Inc. (“BioSentinel”) are parties to an agreement under which the Company in-licenses BioSentinel’s technology and expertise for research, development and manufacturing purposes. The Company is obligated to pay BioSentinel minimum quarterly use fees, and a one-time milestone payment of $0.3 million when regulatory approval is achieved. As of September 30, 2019, the milestone has not been achieved. Indemnification The Company has standard indemnification agreements in the ordinary course of business. Under these indemnification agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent or other intellectual property infringement claim by any third party with respect to its technology. The term of these indemnification agreements is generally perpetual after the execution of the agreements. The maximum potential amount of future payments the Company is obligated to pay under these indemnification agreements is not determinable because it involves claims that may be made against the Company in the future, but have not been made. The Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. The Company has indemnification agreements with its directors and officers that may require the Company to indemnify them against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from willful misconduct of the individual. For the nine months ended September 30, 2019, no amounts associated with the indemnification agreements have been recorded.

Stockholders' Equity

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Common Stock Warrants

As of September 30, 2019 and December 31, 2018, 34,113 common stock warrants were outstanding at an exercise price of $14.95 per share, which expire in 2020.

Stock Option Plan

2014 Equity Incentive Plan (“2014 EIP”)

On January 1, 2019, the number of shares of common stock reserved for issuance under the 2014 EIP increased by 1,479,008 shares. For the nine months ended September 30, 2019, 1,202,650 stock options and 513,225 restricted stock awards were granted under the 2014 EIP. As of September 30, 2019, 2,018,200 shares were available for issuance under the 2014 EIP.

2014 Inducement Plan (the “2014 IN”)

For the nine months ended September 30, 2019, no stock options or restricted stock awards were granted under the 2014 IN. As of September 30, 2019, 170,019 shares were available for issuance under the 2014 IN.

2014 Employee Stock Purchase Plan (the “2014 ESPP”)

On January 1, 2019, the number of shares of common stock reserved for issuance under the 2014 ESPP increased by 300,000 shares. As of September 30, 2019, 1,443,774 shares were available for issuance under the 2014 ESPP.

Stock-Based Compensation

Stock-based compensation expense was allocated as follows:



(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Research and development	$	2,106	$	1,836	$	6,438	$	5,627
General and administrative	2,197		2,256		6,444		6,795
Total stock-based compensation expense	$	4,303	$	4,092	$	12,882	$	12,422

Net Loss per Share

The Company’s basic net loss per share is calculated by dividing the net loss by the weighted average number of shares of common stock outstanding for the period, which includes the vested restricted stock awards. The diluted net loss per share is calculated by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, outstanding stock options, outstanding common stock warrants, unvested restricted stock awards, and shares of common stock expected to be purchased under 2014 ESPP are considered common stock equivalents, which were excluded from the computation of diluted net loss per share because including them would have been antidilutive.

Common stock equivalents that were excluded from the computation of diluted net loss per share are presented as below:



	As of September 30,
	2019	2018
Outstanding common stock options	4,402,244	3,491,751
Outstanding common stock warrants	34,113	34,113
Unvested restricted stock awards	788,125	679,541
Shares of common stock expected to be purchased on December 31 under the 2014 ESPP	45,123	16,712

Follow-On Public Offering

In January 2019, the Company completed the 2019 follow-on public offering, pursuant to which the Company issued 6,764,705 shares of common stock at $17.00 per share, including the exercise of the underwriters’ over-allotment option to purchase 882,352 additional shares of common stock, for aggregate net proceeds of $107.6 million, after deducting underwriting discounts, commissions and other offering expenses.

At-The-Market Offering

The Company and Cantor Fitzgerald & Co. (“Cantor Fitzgerald”) are parties to a Controlled Equity Offering sales agreement (the “2018 ATM Agreement”), under which the Company may offer and sell common stock having aggregate proceeds of up to $125.0 million through Cantor Fitzgerald as its sales agent. Under the 2018 ATM Agreement, sales of common stock through Cantor Fitzgerald will be made by means of ordinary brokers’ transactions on the Nasdaq Global Market or otherwise at market prices prevailing at the time of sale, in block transactions, or as otherwise agreed upon by the Company and Cantor Fitzgerald. From time to time, Cantor Fitzgerald may sell the common stock based upon the Company’s instructions, and the Company will pay a commission to Cantor Fitzgerald of up to 3.0% of the gross sales proceeds of any common stock sold through Cantor Fitzgerald. For the nine months ended September 30, 2019 and 2018, no common stock was sold under the 2018 ATM Agreement.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes California State Apportionment In 2018, the Company petitioned the California Franchise Tax Board for an alternative apportionment percentage due to the insignificant apportionment percentage derived from the single sales factor methodology for California. In January 2019, the California Franchise Tax Board approved the use of an alternative apportionment method. The Company’s net operating losses (“NOL”) in California is estimated to increase by approximately $219 million as a result of the change in apportionment model. The Company has increased its deferred tax assets by $15 million with a corresponding offsetting adjustment to its valuation allowance. There is no impact to the Company’s net loss in the period as a result of the adjustment.

Subsequent Event	9 Months Ended
Subsequent Event	Sep. 30, 2019
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event Effective as of October 13, 2019, the Company’s Board of Directors (the “Board”) appointed Mark J. Foley as the Company’s President, Chief Executive Officer and Principal Executive Officer. In connection with his appointment, the Company has entered into an executive employment agreement, pursuant to which Mr. Foley will initially receive an annual base salary of $650,000 and an annual target bonus of 75% of his base salary. The Board also approved the grant of certain equity awards to Mr. Foley under the 2014 EIP. Mr. Foley received (i) a stock option to purchase 740,000 shares of the Company’s common stock at $12.18 per share, (ii) 200,000 shares of restricted common stock awards of the Company and (iii) 860,000 shares of performance-based common stock awards. The performance-based common stock awards will vest based on the Company’s certain market and performance conditions. Effective as of October 11, 2019, the Company entered into a separation agreement with L. Daniel Browne providing for (i) a release of claims against the Company, (ii) cash severance payments to Mr. Browne in an amount equal to fifteen months of Mr. Browne’s 2019 base salary; and (iii) certain health care continuation benefits. The separation agreement also provides for an extension of the post-termination exercise period for all vested stock options held by Mr. Browne through the earlier of a Change in Control (as defined in the 2014 EIP) or January 31, 2021. The Company is currently evaluating the effect on its Consolidated Financial Statements of Mr. Foley’s equity compensation and the modification to Mr. Browne’s vested stock options.

The Company and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying Condensed Consolidated Financial Statements are unaudited, and reflect all adjustments which are, in the opinion of management, of a normal recurring nature and necessary for a fair statement of the results for the interim periods presented. The Condensed Consolidated Balance Sheet for the year ended December 31, 2018 was derived from audited Consolidated Financial Statements, but does not include all disclosures required by U.S. generally accepted accounting principles (“U.S. GAAP”). The interim results presented herein are not necessarily indicative of the results of operations that may be expected for the full fiscal year ending December 31, 2019, or any other future period. The Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited Consolidated Financial Statements contained in its Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the Securities and Exchange Commission (“SEC”), on February 28, 2019. The Condensed Consolidated Financial Statements include the Company’s accounts and those of its wholly-owned subsidiaries, and have been prepared in conformity with U.S. GAAP. The Company operates in one segment.
Principles of Consolidation	Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the company and its wholly-owned subsidiaries. All intercompany transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of the Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the Condensed Consolidated Financial Statements and accompanying notes. Such management estimates include revenue recognition, deferred revenue, accruals including clinical trial accruals, stock-based compensation, fair value of derivative liability, and the valuation of deferred tax assets. The Company bases its estimates on historical experience and on assumptions that it believes are reasonable; however, actual results could significantly differ from those estimates.
Accounting Pronouncements	Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) which requires an entity to recognize right-of-use asset and lease liabilities arising from a lease for both financing and operating leases with terms greater than twelve months. In July 2018, the FASB issued ASU 2018-10, Leases (Topic 842), Codification Improvements and ASU 2018-11, Leases (Topic 842), Targeted Improvements, to provide additional guidance for the Topic 842 adoption. ASU 2018-10 clarifies certain provisions and correct unintended applications of the guidance such as the application of implicit rate, lessee reassessment of lease classification, and certain transition adjustments that should be recognized to earnings rather than to stockholders’ equity. ASU 2018-11 provides an alternative transition method to allow entities initially applying Topic 842 at the adoption date, rather than at the beginning of the earliest comparative period presented, and recognizing the cumulative effect of applying the new standard as an adjustment to beginning retained earnings in the year of adoption while continuing to present all prior periods under previous lease accounting guidance. ASU 2018-11 also provides a number of optional practical expedients in transition. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements. The Company evaluated ASU 2019-01 in its entirety and determined that Issue 3, Transition disclosures related to Topic 250, Accounting Changes and Error Corrections, is the only provision that currently applies to the Company. Issue 3 of ASU 2019-01 exempts certain interim disclosures in the fiscal year of adoption. ASU 2018-11, ASU 2018-10, ASU 2016-02, and Issue 3 of ASU 2019-01 (collectively, “the new lease standards”) are effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company has elected the transition method under ASU 2018-11 at the adoption date of January 1, 2019 on a modified retrospective basis and will not restate comparative periods. The Company has also elected all of the available practical expedients except the practical expedient allowing the use of hindsight in determining the lease term and assessing impairment of right-of-use assets based on all facts and circumstances through the effective date of the new standard. The Company has elected the recognition exemption for short-term leases for all leases that qualify. Under this exemption, the Company will not recognize right-of-use assets or lease liabilities for those leases that qualify as a short-term lease. For real estate leases, the Company did not elect the practical expedient to combine lease and non-lease components, therefore the Company accounts for lease and non-lease components separately. For equipment leases, lease and non-lease components are accounted for as a single lease component. The Company recognized $24.7 million and $28.2 million as total right-of-use assets and total lease liabilities, respectively, on its Condensed Consolidated Balance Sheet as of January 1, 2019 for its existing operating lease agreements for the office and manufacturing spaces in Newark, California and equipment leases. The existing deferred rent liabilities of $3.5 million associated with the same lease agreements was reversed as of January 1, 2019. Recent Accounting Pronouncements In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The amendments in ASU 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). Accordingly, the amendments require an entity (customer) in a hosting arrangement that is a service contract to follow the guidance in Subtopic 350-40 to determine which implementation costs to capitalize as an asset related to the service contract and which costs to expense. ASU 2018-15 is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The Company intends to adopt ASU 2018-15 prospectively when it becomes effective on January 1, 2020. The Company’s Condensed Consolidated Financial Statements and disclosures before adoption are not expected to be impacted as a result of the adoption.

Cash Equivalents and Investments (Tables)

9 Months Ended

Sep. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Available-for-sale Securities

The following table is a summary of amortized cost, unrealized gains and losses, and fair value:



	September 30, 2019						December 31, 2018
			Unrealized						Unrealized
(in thousands)	Cost		Gains		Fair Value		Cost		Gains		Losses			Fair Value
Money market funds	$	40,153	$	—	$	40,153	$	38,354	$	—	$	—		$	38,354
U.S. treasury securities	75,326		27		75,353		80,844		5		(5		)	80,844
U.S. government agency obligations	32,867		15		32,882		52,586		—		(8		)	52,578
Commercial paper	43,873		—		43,873		—		—		—			—
Overnight repurchase agreements	14,501		—		14,501		—		—		—			—
Total cash equivalents and available-for-sale securities	$	206,720	$	42	$	206,762	$	171,784	$	5	$	(13	)	$	171,776

Classified as:
Cash equivalents					$	56,652								$	69,220
Short-term investments					150,110									102,556
Total cash equivalents and available-for-sale securities					$	206,762								$	171,776

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of Fair Value of Financial Instruments

The following table summarizes, for assets and liabilities measured at fair value, the respective fair value and the classification by level of input within the fair value hierarchy:



	September 30, 2019
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets
Money market funds	$	40,153	$	40,153	$	—	$	—
U.S. treasury securities	75,353		75,353		—		—
U.S. government agency obligations	32,882		—		32,882		—
Commercial paper	43,873		—		43,873		—
Overnight repurchase agreements	14,501		—		14,501		—
Total assets measured at fair value	$	206,762	$	115,506	$	91,256	$	—

Liabilities
Derivative liability associated with the Medicis settlement	$	2,892	$	—	$	—	$	2,892
Total liabilities measured at fair value	$	2,892	$	—	$	—	$	2,892



	December 31, 2018
(in thousands)	Fair Value		Level 1		Level 2		Level 3
Assets
Money market funds	$	38,354	$	38,354	$	—	$	—
U.S. treasury securities	80,844		80,844		—		—
U.S. government agency obligations	52,578		—		52,578		—
Total assets measured at fair value	$	171,776	$	119,198	$	52,578	$	—

Liabilities
Derivative liability associated with the Medicis settlement	$	2,753	$	—	$	—	$	2,753
Total liabilities measured at fair value	$	2,753	$	—	$	—	$	2,753

Summary of Changes in Fair Value of Financial Instruments

The following table summarizes the change in the fair value of the Company’s Level 3 financial instrument:



(in thousands)	Derivative Liability Associated with the Medicis Settlement
Fair value as of December 31, 2018	$	2,753
Change in fair value	139
Fair value as of September 30, 2019	$	2,892

Leases Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Operating Lease Costs

The operating lease costs are summarized as follows:



	Three Months Ended		Nine Months Ended
(in thousands)	September 30, 2019		September 30, 2019
Operating lease cost	$	1,425	$	4,193
Variable lease cost ⁽¹⁾	298		886
Total operating lease costs	$	1,723	$	5,079

⁽¹⁾Variable lease cost includes management fees, common area maintenance, property taxes, and insurance, which are not included in the lease liabilities and are expensed as incurred.

Operating Lease Liability Maturities

As of September 30, 2019, maturities of the Company’s operating lease liabilities are as follows:



Year Ending December 31,	(in thousands)
2019 remaining three months	$	1,633
2020	6,735
2021	6,942
2022	5,464
2023	5,557
2024 and thereafter	17,959
Total operating lease payments	44,290
Less imputed interest ⁽¹⁾	(14,195		)
Present value of operating lease payments	$	30,095

As of December 31, 2018, the aggregate total future minimum lease payments under non-cancelable operating leases were as follows:



Year Ending December 31,	(in thousands)
2019	$	5,826
2020	6,011
2021	6,196
2022	4,696
2023 and thereafter	20,173
Total payments	$	42,902

Supplemental Cash Flow Information

Supplemental cash flow information related to the operating leases was as follows:



	Nine Months Ended
(in thousands)	September 30, 2019
Cash paid for amounts included in the measurement of operating lease liabilities	$	4,704
Right-of-use assets obtained in exchange for operating lease liabilities	$	3,890

Stockholders' Equity Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Schedule of Stock-based Compensation Expense

Stock-based compensation expense was allocated as follows:



(in thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2019		2018		2019		2018
Research and development	$	2,106	$	1,836	$	6,438	$	5,627
General and administrative	2,197		2,256		6,444		6,795
Total stock-based compensation expense	$	4,303	$	4,092	$	12,882	$	12,422

Summary of Common Stock Equivalents Excluded from Computation of Diluted Net Income (Loss) Per Share

Common stock equivalents that were excluded from the computation of diluted net loss per share are presented as below:



	As of September 30,
	2019	2018
Outstanding common stock options	4,402,244	3,491,751
Outstanding common stock warrants	34,113	34,113
Unvested restricted stock awards	788,125	679,541
Shares of common stock expected to be purchased on December 31 under the 2014 ESPP	45,123	16,712

The Company and Summary of Significant Accounting Policies- Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Jan. 01, 2019	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Net loss	$ 41,409	$ 32,834	$ 114,103	$ 101,952
Working capital surplus	186,400		186,400
Accumulated deficit	798,878		798,878			$ 684,775
Contract with customer, liability, net	209,000		$ 209,000
Cash and cash equivalents, and investments, expected funding term for operating plan (in months)			12 months
Operating lease right of use assets	27,078		$ 27,078		$ 24,700
Operating lease liabilities	$ 30,095		$ 30,095		28,200
Deferred rent liabilities					$ (3,500)

- Definition

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

+ References + Details

Medicis Settlement - Additional Information (Detail) - USD ($)	1 Months Ended	9 Months Ended		12 Months Ended
	Oct. 31, 2012	Sep. 30, 2019	Sep. 30, 2018	Dec. 31, 2014	Dec. 31, 2013
Medicis Pharmaceutical Corporation
Settlement And Termination [Line Items]
Settlement consideration payable	$ 25,000,000.0
Upfront payment paid	7,000,000.0
Medicis Pharmaceutical Corporation \| Proceeds Sharing Arrangement
Settlement And Termination [Line Items]
Settlement agreement, payable	$ 14,000,000.0
Settlement payment				$ 7,100,000	$ 6,900,000
Medicis Pharmaceutical Corporation \| Product Approval Payment Derivative
Settlement And Termination [Line Items]
Derivative liability for the product approval payment		$ 2,900,000	$ 2,700,000
Valeant Pharmaceuticals International, Inc. \| Product Approval Payment Derivative
Settlement And Termination [Line Items]
Accrued milestone obligations		$ 4,000,000.0
Measurement Input, Expected Term \| Medicis Pharmaceutical Corporation \| Product Approval Payment Derivative
Settlement And Termination [Line Items]
Fair value, measurement input, duration		1 year 1 month 6 days	1 year 6 months
Measurement Input, Risk Free Interest Rate \| Medicis Pharmaceutical Corporation \| Product Approval Payment Derivative
Settlement And Termination [Line Items]
Fair value, measurement input		1.70%	2.60%
Measurement Input, Entity Credit Risk \| Medicis Pharmaceutical Corporation \| Product Approval Payment Derivative
Settlement And Termination [Line Items]
Fair value, measurement input		7.50%	8.00%

Revenue (Details) - USD ($)		1 Months Ended		3 Months Ended		9 Months Ended
Revenue (Details) - USD ($)	Feb. 28, 2018	Jan. 31, 2019	Dec. 31, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Aug. 31, 2019
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Deferred revenue, current portion			$ 8,588,000	$ 5,241,000		$ 5,241,000
Deferred revenue, net of current portion			42,684,000	50,707,000		50,707,000
Mylan
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Non-refundable upfront payment	$ 25,000,000.0
Contingent payments	100,000,000.0
Revenue maximum for receipt of tiered milestone payments	225,000,000.0
Revenue maximum for waiver of royalties	50,000,000.0
Additional one-time payment receivable								$ 5,000,000.0
Transaction price	81,000,000.0
Remaining performance obligation				107,000,000.0		107,000,000.0
Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd.
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Contingent payments				230,500,000		230,500,000
Revenue maximum for receipt of tiered milestone payments			1,000,000.0
Remaining performance obligation				31,000,000.0		31,000,000.0
Contract with customer, liability, revenue recognized (less than $0.1 million for the three months ended sept. 30, 2019)						0
Contract with customer, asset, before allowance for credit loss		$ 30,000,000.0
Foreign withholding tax, amount		$ 3,000,000.0
Deferred revenue, net of current portion				30,000,000.0		30,000,000.0
Development Services
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Contract with customer, liability, revenue recognized (less than $0.1 million for the three months ended sept. 30, 2019)				100,000	$ 2,400,000	300,000	$ 3,200,000
Deferred revenue, current portion			8,600,000	5,200,000		5,200,000
Contract with customer, refund liability, noncurrent			$ 12,700,000	$ 20,700,000		$ 20,700,000
Development Milestones \| Mylan
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Revenue maximum for receipt of tiered milestone payments	$ 40,000,000.0

Cash Equivalents and Investments (Detail) - USD ($)	9 Months Ended	12 Months Ended
Cash Equivalents and Investments (Detail) - USD ($)	Sep. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Cost	$ 206,720,000	$ 171,784,000
Gains	42,000	5,000
Losses		(13,000)
Fair Value	206,762,000	171,776,000
Other-than-temporary impairments on available-for-sale securities	0	0
Cash equivalents
Debt Securities, Available-for-sale [Line Items]
Fair Value	56,652,000	69,220,000
Short-term investments
Debt Securities, Available-for-sale [Line Items]
Fair Value	150,110,000	102,556,000
Money market funds
Debt Securities, Available-for-sale [Line Items]
Cost	40,153,000	38,354,000
Gains	0	0
Losses		0
Fair Value	40,153,000	38,354,000
U.S. treasury securities
Debt Securities, Available-for-sale [Line Items]
Cost	75,326,000	80,844,000
Gains	27,000	5,000
Losses		(5,000)
Fair Value	75,353,000	80,844,000
U.S. government agency obligations
Debt Securities, Available-for-sale [Line Items]
Cost	32,867,000	52,586,000
Gains	15,000	0
Losses		(8,000)
Fair Value	32,882,000	52,578,000
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Cost	43,873,000	0
Gains	0	0
Losses		0
Fair Value	43,873,000	0
Overnight repurchase agreements
Debt Securities, Available-for-sale [Line Items]
Cost	14,501,000	0
Gains	0	0
Losses		0
Fair Value	$ 14,501,000	$ 0

Cash Equivalents and Investments - Related Party Transactions (Details) - USD ($) shares in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2018
Related Party Transaction [Line Items]
Related party transactions	$ 0
J.P. Morgan Securities LLC
Related Party Transaction [Line Items]
Cash, cash equivalents and investments, held by JP Morgan Chase		$ 87,700,000
JPMorgan Chase & Co. and Wholly-owned Subsidiaries
Related Party Transaction [Line Items]
Common stock outstanding, held by JP Morgan Chase (in shares)		3.8
Percent of outstanding common stock held by JP Morgan Chase during the period (less than 10$ at Sept. 30, 2019)	10.00%	10.30%

Fair Value Measurements - Schedule of Fair Value of Financial Instruments (Detail) - Recurring - USD ($) $ in Thousands	Sep. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	$ 206,762	$ 171,776
Total liabilities measured at fair value	2,892	2,753
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	40,153	38,354
U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	75,353	80,844
U.S. government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	32,882	52,578
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	43,873
Overnight repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	14,501
Derivative liability associated with the Medicis settlement
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities measured at fair value	2,892	2,753
Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	115,506	119,198
Total liabilities measured at fair value	0	0
Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	40,153	38,354
Level 1 \| U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	75,353	80,844
Level 1 \| U.S. government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 1 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0
Level 1 \| Overnight repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0
Level 1 \| Derivative liability associated with the Medicis settlement
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities measured at fair value	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	91,256	52,578
Total liabilities measured at fair value	0	0
Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 2 \| U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 2 \| U.S. government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	32,882	52,578
Level 2 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	43,873
Level 2 \| Overnight repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	14,501
Level 2 \| Derivative liability associated with the Medicis settlement
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total liabilities measured at fair value	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0	0
Total liabilities measured at fair value	2,892	2,753
Level 3 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 \| U.S. treasury securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 \| U.S. government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0	0
Level 3 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0
Level 3 \| Overnight repurchase agreements
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Total assets measured at fair value	0
Level 3 \| Derivative liability associated with the Medicis settlement
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]