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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number: 000-50768

 

ACADIA PHARMACEUTICALS INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

Delaware

06-1376651

(State of Incorporation)

(I.R.S. Employer Identification No.)

 

3611 Valley Centre Drive, Suite 300

San Diego, California

92130

(Address of Principal Executive Offices)

(Zip Code)

 

(858) 558-2871

(Registrant’s Telephone Number, Including Area Code)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class 

Trading Symbol

Name of Each Exchange on Which Registered 

Common Stock, par value $0.0001 per share

ACAD

The Nasdaq Stock Market LLC

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

 

 

 

 

Non-accelerated filer

☐  

Smaller reporting company

 

 

 

 

Emerging growth company

  

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

Total shares of common stock outstanding as of the close of business on July 22, 2020:

 

Class 

 

Number of Shares Outstanding 

Common Stock, $0.0001 par value

 

157,680,830

 

 

 

 


 

ACADIA PHARMACEUTICALS INC.

FORM 10-Q

TABLE OF CONTENTS

 

 

 

PAGE NO.

 

 

 

PART I. FINANCIAL INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

1

 

 

 

 

 

 

 

Condensed Consolidated Balance Sheets

 

1

 

 

 

 

 

 

 

Condensed Consolidated Statements of Operations

 

2

 

 

 

 

 

 

 

Condensed Consolidated Statements of Comprehensive Loss

 

3

 

 

 

 

 

 

 

Condensed Consolidated Statements of Cash Flows

 

4

 

 

 

 

 

 

 

Condensed Consolidated Statements of Stockholders’ Equity

 

5

 

 

 

 

 

 

 

Notes to Condensed Consolidated Financial Statements

 

6

 

 

 

 

 

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

15

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

23

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

23

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

24

 

 

 

 

 

Item 1A.

 

Risk Factors

 

25

 

 

 

 

 

Item 6.

 

Exhibits

 

58

 

 

 

SIGNATURES

 

59

 

 

 

i


 

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

 

 

 

June 30,

2020

 

 

December 31,

2019

 

 

 

(unaudited)

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

310,441

 

 

$

189,680

 

Investment securities, available-for-sale

 

 

348,110

 

 

 

507,749

 

Accounts receivable, net

 

 

43,785

 

 

 

35,781

 

Interest and other receivables

 

 

2,343

 

 

 

2,093

 

Inventory

 

 

6,210

 

 

 

6,341

 

Prepaid expenses

 

 

24,846

 

 

 

18,606

 

Total current assets

 

 

735,735

 

 

 

760,250

 

Property and equipment, net

 

 

6,687

 

 

 

3,180

 

Operating lease right-of-use assets

 

 

7,880

 

 

 

9,524

 

Intangible assets, net

 

 

1,846

 

 

 

2,585

 

Restricted cash

 

 

5,770

 

 

 

4,787

 

Other assets

 

 

1,731

 

 

 

2,857

 

Total assets

 

$

759,649

 

 

$

783,183

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

Accounts payable

 

$

6,466

 

 

$

7,222

 

Accrued liabilities

 

 

79,956

 

 

 

67,604

 

Total current liabilities

 

 

86,422

 

 

 

74,826

 

Operating lease liabilities

 

 

5,669

 

 

 

6,361

 

Other long-term liabilities

 

 

4,545

 

 

 

2,861

 

Total liabilities

 

 

96,636

 

 

 

84,048

 

Commitments and contingencies (Note 9)

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Preferred stock, $0.0001 par value; 5,000,000 shares authorized at June 30, 2020

   and December 31, 2019; no shares issued and outstanding at June 30, 2020 and

   December 31, 2019

 

 

 

 

 

 

Common stock, $0.0001 par value; 225,000,000 shares authorized at June 30, 2020

   and December 31, 2019; 157,383,379 shares and 155,275,300 shares issued and

   outstanding at June 30, 2020 and December 31, 2019, respectively

 

 

15

 

 

 

15

 

Additional paid-in capital

 

 

2,495,804

 

 

 

2,402,945

 

Accumulated deficit

 

 

(1,834,286

)

 

 

(1,704,122

)

Accumulated other comprehensive income

 

 

1,480

 

 

 

297

 

Total stockholders’ equity

 

 

663,013

 

 

 

699,135

 

Total liabilities and stockholders’ equity

 

$

759,649

 

 

$

783,183

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

1


 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product sales, net

 

$

110,103

 

 

$

83,205

 

 

$

200,171

 

 

$

146,164

 

Total revenues

 

 

110,103

 

 

 

83,205

 

 

 

200,171

 

 

 

146,164

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of product sales

 

 

2,899

 

 

 

2,958

 

 

 

5,698

 

 

 

5,908

 

License fees and royalties

 

 

2,575

 

 

 

2,037

 

 

 

4,750

 

 

 

3,667

 

Research and development

 

 

64,295

 

 

 

67,320

 

 

 

136,931

 

 

 

120,243

 

Selling, general and administrative

 

 

84,344

 

 

 

67,981

 

 

 

186,317

 

 

 

161,071

 

Total operating expenses

 

 

154,113

 

 

 

140,296

 

 

 

333,696

 

 

 

290,889

 

Loss from operations

 

 

(44,010

)

 

 

(57,091

)

 

 

(133,525

)

 

 

(144,725

)

Interest income, net

 

 

1,825

 

 

 

2,527

 

 

 

4,814

 

 

 

5,461

 

Other income (expense)

 

 

437

 

 

 

(12

)

 

 

(1,060

)

 

 

(241

)

Loss before income taxes

 

 

(41,748

)

 

 

(54,576

)

 

 

(129,771

)

 

 

(139,505

)

Income tax expense

 

 

393

 

 

 

365

 

 

 

393

 

 

 

740

 

Net loss

 

$

(42,141

)

 

$

(54,941

)

 

$

(130,164

)

 

$

(140,245

)

Net loss per common share, basic and diluted

 

$

(0.27

)

 

$

(0.38

)

 

$

(0.83

)

 

$

(0.97

)

Weighted average common shares outstanding, basic and diluted

 

 

156,535

 

 

 

144,314

 

 

 

155,951

 

 

 

144,148

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

2


 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(in thousands)

(Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Net loss

 

$

(42,141

)

 

$

(54,941

)

 

$

(130,164

)

 

$

(140,245

)

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized (loss) gain on investment securities

 

 

(43

)

 

 

348

 

 

 

1,183

 

 

 

925

 

Foreign currency translation adjustments

 

 

(2

)

 

 

(1

)

 

 

 

 

 

1

 

Comprehensive loss

 

$

(42,186

)

 

$

(54,594

)

 

$

(128,981

)

 

$

(139,319

)

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

3


 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(130,164

)

 

$

(140,245

)

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

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

41,855

 

 

 

40,305

 

Amortization of premiums and accretion of discounts on investment securities

 

 

481

 

 

 

(1,995

)

Amortization of intangible assets

 

 

739

 

 

 

739

 

Loss on strategic investment

 

 

1,060

 

 

 

241

 

Depreciation

 

 

648

 

 

 

741

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(8,004

)

 

 

(5,691

)

Interest and other receivables

 

 

(250

)

 

 

758

 

Inventory

 

 

(20

)

 

 

273

 

Prepaid expenses

 

 

(6,240

)

 

 

2,220

 

Operating lease right-of-use assets

 

 

2,025

 

 

 

1,133

 

Other assets

 

 

66

 

 

 

70

 

Accounts payable

 

 

(756

)

 

 

1,483

 

Accrued liabilities

 

 

11,853

 

 

 

(1,576

)

Operating lease liabilities

 

 

(862

)

 

 

(1,077

)

Long-term liabilities

 

 

1,684

 

 

 

49

 

Net cash used in operating activities

 

 

(85,885

)

 

 

(102,572

)

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of investment securities

 

 

(100,813

)

 

 

(176,677

)

Maturities of investment securities

 

 

261,153

 

 

 

210,904

 

Purchases of property and equipment

 

 

(3,867

)

 

 

(842

)

Net cash provided by investing activities

 

 

156,473

 

 

 

33,385

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock, net of issuance costs

 

 

51,155

 

 

 

8,822

 

Net cash provided by financing activities

 

 

51,155

 

 

 

8,822

 

Effect of exchange rate changes on cash

 

 

1

 

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

121,744

 

 

 

(60,365

)

Cash, cash equivalents and restricted cash

 

 

 

 

 

 

 

 

Beginning of period

 

 

194,467

 

 

 

139,584

 

End of period

 

$

316,211

 

 

$

79,219

 

Supplemental disclosure of noncash information:

 

 

 

 

 

 

 

 

Property and equipment purchases in accounts payable and accrued liabilities

 

$

288

 

 

$

17

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 


4


 

ACADIA PHARMACEUTICALS INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(in thousands)

(Unaudited)

 

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Total stockholders’ equity, beginning balances

 

$

638,382

 

 

$

418,356

 

 

$

699,135

 

 

$

479,079

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

 

15

 

 

 

14

 

 

 

15

 

 

 

14

 

Ending balance

 

 

15

 

 

 

14

 

 

 

15

 

 

 

14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional paid-in capital:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

 

2,428,987

 

 

 

1,972,302

 

 

 

2,402,945

 

 

 

1,948,300

 

Issuance of common stock from exercise of stock options and units

 

 

43,431

 

 

 

2,447

 

 

 

47,185

 

 

 

6,623

 

Issuance of common stock pursuant to employee stock

   purchase plan

 

 

3,970

 

 

 

2,199

 

 

 

3,970

 

 

 

2,199

 

Stock-based compensation

 

 

19,416

 

 

 

20,506

 

 

 

41,704

 

 

 

40,332

 

Ending balance

 

 

2,495,804

 

 

 

1,997,454

 

 

 

2,495,804

 

 

 

1,997,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

 

(1,792,145

)

 

 

(1,554,167

)

 

 

(1,704,122

)

 

 

(1,468,863

)

Net loss

 

 

(42,141

)

 

 

(54,941

)

 

 

(130,164

)

 

 

(140,245

)

Ending balance

 

 

(1,834,286

)

 

 

(1,609,108

)

 

 

(1,834,286

)

 

 

(1,609,108

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

 

1,525

 

 

 

207

 

 

 

297

 

 

 

(372

)

Other comprehensive (loss) income

 

 

(45

)

 

 

347

 

 

 

1,183

 

 

 

926

 

Ending balance

 

 

1,480

 

 

 

554

 

 

 

1,480

 

 

 

554

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity, ending balances

 

$

663,013

 

 

$

388,914

 

 

$

663,013

 

 

$

388,914

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

5


 

ACADIA PHARMACEUTICALS INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Organization and Business

ACADIA Pharmaceuticals Inc. (the “Company”), based in San Diego, California, is a biopharmaceutical company focused on the development and commercialization of innovative medicines to address unmet medical needs in central nervous system disorders. The Company was originally incorporated in Vermont in 1993 as Receptor Technologies, Inc. and reincorporated in Delaware in 1997.

In April 2016, the U.S. Food and Drug Administration (“FDA”) approved the Company’s first drug, NUPLAZID® (pimavanserin), for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis (“PD Psychosis”). NUPLAZID became available for prescription in the United States in May 2016.

2. Basis of Presentation and Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of the Company should be read in conjunction with the audited financial statements and notes thereto as of and for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K (“Annual Report”) filed with the Securities and Exchange Commission (the “SEC”). The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, since they are interim statements, the accompanying financial statements do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the accompanying financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair statement of the financial position, results of operations, cash flows, and stockholders’ equity for the interim periods presented. Interim results are not necessarily indicative of results for a full year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. Actual results could differ from those estimates.

 

Risk and Uncertainties

The global pandemic resulting from the disease known as COVID-19, caused by a novel strain of coronavirus, SARS-CoV-2, has caused national and global economic and financial market disruptions and has impacted the Company’s business, including by causing the vast majority of the Company’s workforce to work remotely since March 2020. Although the Company did not see a material impact on its net revenue in the first half of 2020 due to the COVID-19 pandemic, the Company cannot predict the duration or magnitude of the pandemic or the full impact that it may have on the Company’s financial condition, operations, suppliers, and workforce.

During the six months ended June 30, 2020, there have been no changes to the Company’s significant accounting policies as described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2019, except as described below and in Note 6, investments.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statement of cash flows that sum to the total of the same such amounts shown in the statement of cash flows (in thousands):

 

 

 

Six Months Ended June 30, 2020

 

 

Six Months Ended June 30, 2019

 

 

 

Beginning of

period

 

 

End of

period

 

 

Beginning of

period

 

 

End of

period

 

Cash and cash equivalents

 

$

189,680

 

 

$

310,441

 

 

$

134,758

 

 

$

74,432

 

Restricted cash

 

 

4,787

 

 

 

5,770

 

 

 

4,826

 

 

 

4,787

 

Total cash, cash equivalents and restricted cash shown in

   the statement of cash flows

 

$

194,467

 

 

$

316,211

 

 

$

139,584

 

 

$

79,219

 

 

6


 

Accounts Receivable

Accounts receivable are recorded net of customer allowances for distribution fees, prompt payment discounts, chargebacks, and credit losses. Allowances for distribution fees, prompt payment discounts and chargebacks are based on contractual terms. As described further in Note 10, Recent Accounting Pronouncements, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification 326-20, Financial Instruments – Credit Losses (“ASC 326-20”) as of January 1, 2020. The Company estimated the current expected credit losses of its accounts receivable by assessing the risk of loss and available relevant information about the collectability, including historical credit losses, existing contractual payment terms, actual payment patterns of its customers, individual customer circumstances, and reasonable and supportable forecast of economic conditions expected to exist throughout the contractual life of the receivable. Based on its assessment, as of June 30, 2020 the Company determined that an allowance for credit loss was not required.

Although the Company has not historically experienced significant credit losses, the Company’s exposure may increase due to uncertainties associated with the global economic recession and other disruptions resulting from the COVID-19 pandemic.

License Fees and Royalties

The Company expenses amounts paid to acquire licenses associated with products under development when the ultimate recoverability of the amounts paid is uncertain and the technology has no alternative future use when acquired. Acquisitions of technology licenses are charged to expense or capitalized based upon management’s assessment regarding the ultimate recoverability of the amounts paid and the potential for alternative future use. The Company has determined that technological feasibility for its product candidates is reached when the requisite regulatory approvals are obtained to make the product available for sale.

In connection with the FDA approval of NUPLAZID in April 2016, the Company made a one-time milestone payment of $8.0 million pursuant to its 2006 license agreement with the Ipsen Group in which the Company licensed certain intellectual property rights that complement its patent portfolio for its serotonin platform, including NUPLAZID. The Company capitalized the $8.0 million payment as an intangible asset and is amortizing the asset on a straight-line basis over the estimated useful life of the licensed patents through the second half of 2021. The Company recorded amortization expense related to its intangible asset of $0.4 million and $0.7 million for each of the three and six months ended June 30, 2020 and 2019, respectively. As of June 30, 2020, estimated future amortization expense related to the Company’s intangible asset was $0.7 million for the remainder of 2020 and $1.1 million for 2021.

Royalties incurred in connection with the Company’s license agreement with the Ipsen Group, as disclosed in Note 9, Commitments and Contingencies, are expensed to license fees and royalties as revenue from product sales is recognized.

3. Net Loss Per Share

Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common shares and common stock equivalents outstanding for the period determined using the treasury stock method. For purposes of this calculation, stock options, employee stock purchase plan rights, restricted stock units, and warrants are considered to be common stock equivalents but are not included in the calculations of diluted net loss per share for the periods presented as their effect would be anti-dilutive. The Company incurred net losses for all periods presented and there were no reconciling items for potentially dilutive securities. More specifically, at June 30, 2020 and 2019, stock options, employee stock purchase plan rights, restricted stock units, and warrants totaling approximately 19,930,000 shares and 23,389,000 shares, respectively, were excluded from the calculation of diluted net loss per share as their effect would have been anti-dilutive.

4. Stock-Based Compensation

The following table summarizes the total stock-based compensation expense included in the Company’s condensed consolidated statements of operations for the periods presented (in thousands):

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Cost of product sales

 

$

743

 

 

$

803

 

 

$

1,592

 

 

$

1,798

 

Research and development

 

 

7,235

 

 

 

7,901

 

 

 

15,692

 

 

 

15,781

 

Selling, general and administrative

 

 

11,529

 

 

 

11,718

 

 

 

24,571

 

 

 

22,726

 

 

 

$

19,507

 

 

$

20,422

 

 

$

41,855

 

 

$

40,305

 

 

7


 

5. Balance Sheet Details

Inventory consisted of the following (in thousands):

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Raw material

 

$

2,677

 

 

$

3,175

 

Work in process

 

 

1,173

 

 

 

1,685

 

Finished goods

 

 

2,360

 

 

 

1,481

 

 

 

$

6,210

 

 

$

6,341

 

Accrued liabilities consisted of the following (in thousands):

 

 

 

June 30,

2020

 

 

December 31,

2019

 

Accrued compensation and benefits

 

$

20,005

 

 

$

21,080

 

Accrued consulting and professional fees

 

 

19,611

 

 

 

13,691

 

Accrued research and development services

 

 

19,355

 

 

 

14,273

 

Accrued sales allowances

 

 

12,884

 

 

 

11,326

 

Current portion of lease liabilities

 

 

2,653

 

 

 

3,434

 

Accrued royalties

 

 

2,214

 

 

 

1,971

 

Other

 

 

3,234

 

 

 

1,829

 

 

 

$

79,956

 

 

$

67,604

 

 

6. Investments

The carrying value and amortized cost of the Company’s investments, summarized by major security type, consisted of the following (in thousands):

 

 

 

June 30, 2020

 

 

 

Amortized

Cost

 

 

Unrealized

Gains

 

 

Unrealized

Losses

 

 

Estimated

Fair

Value

 

U.S. Treasury notes

 

$

185,739

 

 

$

656

 

 

$

 

 

$

186,395

 

Government sponsored enterprise securities

 

 

38,445

 

 

 

111

 

 

 

 

 

 

38,556

 

Corporate debt securities

 

 

90,142

 

 

 

567

 

 

 

(1

)

 

 

90,708

 

Commercial paper

 

 

32,317

 

 

 

134

 

 

 

 

 

 

32,451

 

 

 

$

346,643

 

 

$

1,468

 

 

$

(1

)

 

$

348,110

 

 

 

 

December 31, 2019

 

 

 

Amortized

Cost

 

 

Unrealized

Gains

 

 

Unrealized

Losses

 

 

Estimated

Fair

Value

 

U.S. Treasury notes

 

$

228,609

 

 

$

7

 

 

$

(13

)

 

$

228,603

 

Government sponsored enterprise securities

 

 

88,920

 

 

 

5

 

 

 

(30

)

 

 

88,895

 

Corporate debt securities

 

 

87,785

 

 

 

262

 

 

 

(8