0001347178-21-000005 | 10-K | XBRL Viewer | Vanda Pharmaceuticals INC

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Cover Page - USD ($) $ in Millions	12 Months Ended
Cover Page - USD ($) $ in Millions	Dec. 31, 2020	Feb. 04, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	001-34186
Entity Registrant Name	VANDA PHARMACEUTICALS INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	03-0491827
Entity Address, Address Line One	2200 Pennsylvania Avenue NW
Entity Address, Address Line Two	Suite 300 E
Entity Address, City or Town	Washington
Entity Address, State or Province	DC
Entity Address, Postal Zip Code	20037
City Area Code	202
Local Phone Number	734-3400
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	VNDA
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 609.8
Entity Common Stock, Shares Outstanding		54,882,710
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Specified portions of the registrant’s proxy statement with respect to the registrant’s 2021 Annual Meeting of Stockholders, which is to be filed pursuant to Regulation 14A within 120 days after the end of the registrant’s fiscal year ended December 31, 2020, are incorporated by reference into Part III of this Form 10-K.
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Central Index Key	0001347178

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 61,031	$ 45,072
Marketable securities	306,709	267,057
Accounts receivable, net	30,036	26,367
Inventory	1,280	1,140
Prepaid expenses and other current assets	10,089	14,500
Total current assets	409,145	354,136
Property and equipment, net	4,136	3,864
Operating lease right-of-use assets	10,459	11,180
Intangible assets, net	21,559	23,037
Deferred tax assets	81,516	87,680
Non-current inventory and other	6,641	3,851
Total assets	533,456	483,748
Current liabilities:
Accounts payable and accrued liabilities	31,509	27,590
Product revenue allowances	34,427	31,915
Total current liabilities	65,936	59,505
Operating lease non-current liabilities	11,497	12,455
Other non-current liabilities	2,757	843
Total liabilities	80,190	72,803
Commitments and contingencies (Notes 10 and 17)
Stockholders’ equity:
Preferred stock, $0.001 par value; 20,000,000 shares authorized, and no shares issued or outstanding at December 31, 2020 and 2019, respectively	0	0
Common stock, $0.001 par value; 150,000,000 shares authorized; 54,865,092 and 53,549,612 shares issued and outstanding at December 31, 2020 and 2019, respectively	55	54
Additional paid-in capital	650,300	631,307
Accumulated other comprehensive income	239	249
Accumulated deficit	(197,328)	(220,665)
Total stockholders’ equity	453,266	410,945
Total liabilities and stockholders’ equity	$ 533,456	$ 483,748

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	150,000,000	150,000,000
Common stock, shares issued (in shares)	54,865,092	53,549,612
Common stock, shares outstanding (in shares)	54,865,092	53,549,612

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Net product sales	$ 248,168	$ 227,188	$ 193,118
Total revenues	248,168	227,188	193,118
Operating expenses:
Cost of goods sold excluding amortization	23,364	24,488	20,508
Research and development	55,577	48,649	43,594
Selling, general and administrative	140,510	129,736	105,751
Intangible asset amortization	1,478	1,505	1,527
Total operating expenses	220,929	204,378	171,380
Income from operations	27,239	22,810	21,738
Other income	4,416	6,218	3,608
Income before income taxes	31,655	29,028	25,346
Provision (benefit) for income taxes	8,318	(86,525)	138
Net income	$ 23,337	$ 115,553	$ 25,208
Net income per share:
Basic (in dollars per share)	$ 0.43	$ 2.17	$ 0.50
Diluted (in dollars per share)	$ 0.42	$ 2.11	$ 0.48
Weighted average shares outstanding:
Basic (in shares)	54,427,683	53,137,562	50,859,947
Diluted (in shares)	55,190,802	54,847,060	53,045,257

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 23,337	$ 115,553	$ 25,208
Other comprehensive income (loss):
Net foreign currency translation gain (loss)	68	6	(22)
Change in net unrealized gain (loss) on marketable securities	(102)	313	57
Tax benefit (provision) on other comprehensive income	24	(71)	0
Other comprehensive income (loss), net of tax	(10)	248	35
Comprehensive income	$ 23,327	$ 115,801	$ 25,243

- Definition

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

+ References + Details

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2017		44,938,133
Beginning balance at Dec. 31, 2017	$ 131,387	$ 45	$ 492,802	$ (34)	$ (361,426)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net proceeds from public offering of common stock	100,870	$ 6	100,864
Net proceeds from public offering of common stock (in shares)		6,325,000
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	6,256	$ 1	6,255
Issuance of common stock from the exercise of stock options and settlement of restricted stock units (in shares)		1,214,460
Stock-based compensation expense	11,666		11,666
Net income	25,208				25,208
Other comprehensive income (loss), net of tax	35			35
Ending balance (in shares) at Dec. 31, 2018		52,477,593
Ending balance at Dec. 31, 2018	275,422	$ 52	611,587	1	(336,218)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	6,264	$ 2	6,262
Issuance of common stock from the exercise of stock options and settlement of restricted stock units (in shares)		1,072,019
Stock-based compensation expense	13,458		13,458
Net income	115,553				115,553
Other comprehensive income (loss), net of tax	$ 248			248
Ending balance (in shares) at Dec. 31, 2019	53,549,612	53,549,612
Ending balance at Dec. 31, 2019	$ 410,945	$ 54	631,307	249	(220,665)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock from the exercise of stock options and settlement of restricted stock units	5,634	$ 1	5,633
Issuance of common stock from the exercise of stock options and settlement of restricted stock units (in shares)		1,315,480
Stock-based compensation expense	13,360		13,360
Net income	23,337				23,337
Other comprehensive income (loss), net of tax	$ (10)			(10)
Ending balance (in shares) at Dec. 31, 2020	54,865,092	54,865,092
Ending balance at Dec. 31, 2020	$ 453,266	$ 55	$ 650,300	$ 239	$ (197,328)

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net income	$ 23,337	$ 115,553	$ 25,208
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of property and equipment	1,386	1,387	1,429
Stock-based compensation	13,360	13,458	11,666
Amortization of premiums and accretion of discounts on marketable securities	179	(3,099)	(2,221)
Gain on sale of marketable securities	(229)	0	0
Intangible asset amortization	1,478	1,505	1,527
Deferred income taxes	6,189	(87,767)	0
Other non-cash adjustments, net	1,758	1,785	167
Changes in operating assets and liabilities:
Accounts receivable	(3,767)	2,342	(11,207)
Prepaid expenses and other assets	4,068	(2,764)	(4,258)
Inventory	(2,876)	(722)	70
Accounts payable and other liabilities	3,759	3,508	(618)
Product revenue allowances	3,133	761	8,223
Net cash provided by operating activities	51,775	45,947	29,986
Cash flows from investing activities
Acquisition of intangible asset	0	0	(25,000)
Purchases of property and equipment	(1,795)	(1,019)	(368)
Purchases of marketable securities	(346,622)	(394,517)	(282,395)
Sales and maturities of marketable securities	306,918	327,227	198,103
Net cash used in investing activities	(41,499)	(68,309)	(109,660)
Cash flows from financing activities
Net proceeds from offering of common stock	0	0	100,870
Proceeds from exercise of stock options	5,634	6,264	6,256
Net cash provided by financing activities	5,634	6,264	107,126
Effect of exchange rate changes on cash, cash equivalents and restricted cash	53	(1)	(38)
Net change in cash, cash equivalents and restricted cash	15,963	(16,099)	27,414
Cash, cash equivalents and restricted cash
Beginning of year	45,650	61,749	34,335
End of year	$ 61,613	$ 45,650	$ 61,749

Business Organization and Presentation	12 Months Ended
Business Organization and Presentation	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Business Organization and Presentation	Business Organization and Presentation Business Organization Vanda Pharmaceuticals Inc. (the Company) is a global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. The Company commenced its operations in 2003 and operates in one reporting segment. The Company’s commercial portfolio is currently comprised of two products, HETLIOZ® for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) and nighttime sleep disturbances in Smith-Magenis Syndrome (SMS) and Fanapt® for the treatment of schizophrenia. HETLIOZ® is the first treatment for patients with Non-24 and SMS approved by the United States Food and Drug Administration (FDA). In addition, the Company has a number of drugs in development, including: •HETLIOZ® (tasimelteon) for the treatment of jet lag disorder, pediatric Non-24, delayed sleep phase disorder (DSPD) and autism spectrum disorder (ASD); •Fanapt® (iloperidone) for the treatment of bipolar disorder and Parkinson's disease psychosis (PDP) and a long acting injectable (LAI) formulation for the treatment of schizophrenia; •Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist, for the treatment of gastroparesis, motion sickness, atopic dermatitis, and COVID-19 pneumonia; •VTR-297, a small molecule histone deacetylase (HDAC) inhibitor for the treatment of hematologic malignancies and with potential use as a treatment for several oncology indications; •Portfolio of Cystic Fibrosis Transmembrane Conductance Regulator (CFTR) activators and inhibitors, including VSJ-110 for the treatment of dry eye and ocular inflammation and BPO-27 for the treatment of secretory diarrhea disorders, including cholera; and •VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist, with potential use for the treatment of psychiatric disorders. Basis of Presentation The accompanying consolidated financial statements includes the accounts of Vanda Pharmaceuticals Inc. and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Management continually re-evaluates its estimates, judgments and assumptions, and management’s evaluation could change. Actual results could differ from those estimates.

Cash, Cash Equivalents and Restricted Cash

For purposes of the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, cash equivalents represent highly-liquid investments with a maturity date of three months or less at the date of purchase. Cash and cash equivalents include investments in money market funds with commercial banks and financial institutions, and commercial paper of high-quality corporate issuers. Restricted cash relates primarily to amounts held as collateral for letters of credit for leases for office space at the Company’s Washington, D.C. headquarters.

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the total end of period cash, cash equivalents and restricted cash reported within the Consolidated Statement of Cash Flows:


	December 31,
(in thousands)	2020		2019
Cash and cash equivalents	$	61,031	$	45,072
Restricted cash included in:
Prepaid expenses and other current assets	57		—
Non-current inventory and other	525		578
Total cash, cash equivalents and restricted cash	$	61,613	$	45,650

Marketable Securities

The Company classifies all of its marketable securities as available-for-sale securities. The Company’s investment policy requires the selection of high-quality issuers. Available-for-sale securities are carried at fair market value, with unrealized gains and losses reported as a component of stockholders’ equity in accumulated other comprehensive income. At each balance sheet date, the Company assesses available-for-sale securities in an unrealized loss position to determine whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value. The Company also reviews its available-for-sale securities in an unrealized loss position to determine whether the unrealized loss is the result of a change in creditworthiness or other factors. If declines in the value of available for-sale securities are determined to be credit-related, a loss is recorded in earnings in the current period. Interest and dividend income is recorded when earned and included in other income. Premiums and discounts on marketable securities are amortized and accreted, respectively, to earliest call date and maturity, respectively, and included in other income. The Company uses the specific identification method in computing realized gains and losses on the sale of investments, which would be included in the Consolidated Statements of Operations when generated. All available-for-sale marketable securities are available for use in current operations and are classified as current.

Inventory

Inventory, which is recorded at the lower of cost or net realizable value, includes the cost of third-party manufacturing and other direct and indirect costs and is valued using the first-in, first-out method. The Company evaluates expiry risk by evaluating current and future product demand relative to product shelf life. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. The Company capitalizes inventory costs associated with its products upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. Inventory levels are evaluated for the amount of inventory that would be sold within one year. At certain times, the level of inventory can exceed the forecasted level of cost of goods sold for the next 12 months. The Company classifies the estimate of such inventory as non-current.

Intangible Assets

Costs incurred for products not yet approved by the FDA and for which no alternative future use exists are recorded as research and development expense. Obligations for milestone payments to other pharmaceutical companies that may result in a capitalized intangible asset are recognized when it is deemed probable that the milestone event will occur. In the event a product has been approved by the FDA or an alternative future use exists for a product, patent and license costs are capitalized and amortized on a straight-line basis over the estimated useful economic life of the of the related product patents. For intangible assets related to HETLIOZ®, the estimated useful life is through July 2035, which is the estimated economic useful life of the related product patents. Intangible assets related Fanapt® have been fully amortized on a straight-line basis to November 2016. The useful life estimate for Fanapt® was based on the market participant methodology prescribed by ASC 805, and therefore does not reflect the impact of additional Fanapt® patents solely owned by the Company with varying expiration dates, the latest of which is December 2031.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation. Depreciation of most property and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized using a

straight-line basis over the lesser of the estimated useful lives of the assets or the terms of the related leases. The costs of additions and improvements are capitalized, and repairs and maintenance costs are charged to operations in the period incurred. Upon retirement or disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the statement of operations for that period.

Leases

In accordance with Accounting Standards Codification (ASC) 842, Leases, effective January 1, 2019, the Company determines if an arrangement contains a lease at inception. Right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from that lease. For leases with a term greater than 12 months, ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The lease term includes the option to extend the lease when it is reasonably certain the Company will exercise that option. When available, the Company uses the rate implicit in the lease to discount lease payments to present value. In the case the implicit rate is not available, the Company uses its incremental borrowing rate based on information available at the lease commencement date, including publicly available data for instruments with similar characteristics, to determine the present value of lease payments. The Company does not combine lease and non-lease elements for office leases. For existing office leases as of January 1, 2019, executory costs are excluded from lease expense, which is consistent with the Company's accounting under ASC 840, Leases. For all office leases entered into after January 1, 2019, executory costs are allocated between lease and non-lease elements based upon their relative stand-alone prices.

Accounts Payable and Accrued Liabilities

The Company’s management is required to estimate accrued liabilities as part of the process of preparing financial statements. The estimation of accrued liabilities involves identifying services that have been performed on the Company’s behalf, and then estimating the level of service performed and the associated cost incurred for such services as of each balance sheet date in the financial statements. Accrued liabilities include research and development expenses, such as accrued costs under contracts with clinical monitors, data management organizations and investigators in conjunction with clinical trials, fees to contract manufacturers in conjunction with the production of clinical materials, consulting and professional fees, such as lawyers and fees for marketing and other commercialization activities, accrued compensation and employee benefits, such as accrued bonus, royalties payable under licensing agreements, and other accrued fees. Pursuant to management’s assessment of the services that have been performed on clinical trials and other contracts, the Company recognizes these expenses as the services are provided. Such management assessments include, but are not limited to: (i) an evaluation by the project manager of the work that has been completed during the period, (ii) measurement of progress prepared internally and/or provided by the third-party service provider, (iii) analyses of data that justify the progress, and (iv) management’s judgment. In the event that the Company does not identify certain costs that have begun to be incurred or the Company under- or over-estimates the level of services performed or the costs of such services, the Company’s reported expenses for such period would be too low or too high.

Revenue from Net Product Sales

In accordance with ASC 606, Revenue from Contracts with Customers (ASC 606), which the Company adopted January 1, 2018, the Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company recognizes revenue when control of the product is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those product sales, which is typically once the product physically arrives at the customer. Sales taxes, value add taxes, and usage-based taxes are excluded from revenues.

The Company’s net product sales consist of sales of HETLIOZ® and Fanapt®. Net sales by product for the years ended December 31, 2020, 2019 and 2018 were as follows:


	Year Ended December 31,
(in thousands)	2020		2019		2018
HETLIOZ® net product sales	$	160,686	$	142,980	$	115,835
Fanapt® net product sales	87,482		84,208		77,283
Total net product sales	$	248,168	$	227,188	$	193,118

HETLIOZ® is available in the United States (U.S.) for distribution through a limited number of specialty pharmacies, and is not available in retail pharmacies. Specialty pharmacy customers include Diplomat Pharmacy, Inc. (a subsidiary of

UnitedHealth Group) and Accredo (a subsidiary of Express Scripts). Fanapt® is available in the U.S. for distribution through a limited number of wholesalers and is available in retail pharmacies. Wholesaler customers include Cardinal Health, Inc., AmerisourceBergen Drug Corporation, and McKesson Corporation. The Company invoices and records revenue when its customers, specialty pharmacies and wholesalers, receive product from the third-party logistics warehouse, which is the point at which control is transferred to the customer. Revenues and accounts receivable are concentrated with these customers. Outside the U.S., the Company sells HETLIOZ® in Germany and has a distribution agreement for the commercialization of Fanapt® in Israel. Receivables are carried at transaction price net of allowance for credit losses. Allowance for credit losses is measured using historical loss rates based on the aging of receivables and incorporating current conditions and forward-looking estimates.

The following table presents each major customer that represented more than 10% of total revenues for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
Percent of Net Product Sales	2020		2019		2018
Distributor A	43	%	38	%	37	%
Distributor B	19	%	23	%	17	%
Distributor C	12	%	12	%	14	%
Distributor D	11	%	12	%	12	%
Distributor E	10	%	11	%	12	%

The following table presents each major customer that represented more than 10% of accounts receivable, net, as of December 31, 2020 and 2019:


	December 31,
Percent of Accounts Receivable, Net	2020		2019
Distributor A	22	%	21	%
Distributor B	13	%	21	%
Distributor C	22	%	18	%
Distributor D	20	%	16	%
Distributor E	13	%	18	%

The transaction price is determined based upon the consideration to which the Company will be entitled in exchange for transferring product to the customer. The Company’s product sales are recorded net of applicable product revenue allowances for which reserves are established and include discounts, rebates, chargebacks, service fees, co-pay assistance and product returns that are applicable for various government and commercial payors. The Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method and updates its estimate at each reporting date. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Allowances for rebates, chargebacks and co-pay assistance are based upon the insurance benefits of the end customer, which are estimated using historical activity and, where available, actual and pending prescriptions for which the Company has validated the insurance benefits. Reserves for variable consideration are classified as product revenue allowances on the Consolidated Balance Sheets, with the exception of prompt-pay discounts that are classified as reductions of accounts receivable. The reserve for product returns for which the product may not be returned for a period of greater than one year from the balance sheet date is included as a component of other non-current liabilities in the Consolidated Balance Sheets. Uncertainties related to variable consideration are generally resolved in the quarter subsequent to period end, with the exception of Medicaid rebates, which are dependent upon the timing of when states submit reimbursement claims, and product returns that are resolved during the product expiry period specified in the customer contract. The Company currently records sales allowances for the following:

•Prompt-pay: Specialty pharmacies and wholesalers are offered discounts for prompt payment. The Company expects that the specialty pharmacies and wholesalers will earn prompt payment discounts and, therefore, deducts the full amount of these discounts from total product sales when revenues are recognized.

•Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program as well as contracted rebate programs with other payors. Rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with public sector benefit providers, such as Medicaid. The allowance for rebates is based on statutory or contracted discount rates and estimated patient utilization.

•Chargebacks: Chargebacks are discounts that occur when contracted indirect customers purchase directly from specialty pharmacies and wholesalers. Contracted indirect customers, which currently consist primarily of Public Health Service institutions and federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The specialty pharmacy or wholesaler, in turn, charges back the difference between the price initially paid by the specialty pharmacy or wholesaler and the discounted price paid to the specialty pharmacy or wholesaler by the contracted customer.

•Medicare Part D Coverage Gap: The Medicare Part D prescription drug benefit requires manufacturers to fund approximately 70% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients for applicable drugs. Vanda accounts for the Medicare Part D coverage gap using a point of sale model. Estimates for expected Medicare Part D coverage gap are based in part on historical activity and, where available, actual and pending prescriptions when the Company has validated the insurance benefits.

•Service Fees: The Company receives sales order management, data and distribution services from certain customers. These fees are based on contracted terms and are known amounts. The Company accrues service fees at the time of revenue recognition, resulting in a reduction of product sales and the recognition of an accrued liability, unless it is a payment for a distinct good or service from the customer in which case the fair value of those distinct goods or services are recorded as selling, general and administrative expense.

•Co-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. Co-pay assistance utilization is based on information provided by the Company’s third-party administrator.

•Product Returns: The Company generally offers direct customers a limited right to return as contractually defined with its customers. The Company considers several factors in the estimation process, including expiration dates of product shipped to customers, inventory levels within the distribution channel, product shelf life, historical return activity, including activity for product sold for which the return period has past, prescription trends and other relevant factors. The Company does not expect returned goods to be resalable. There was no right of return asset as of December 31, 2020 or 2019. The following table summarizes activity for product returns as of and for the years ended December 31, 2020, 2019 and 2018, all of which relates to sales of Fanapt®:


(in thousands)	Reserve for Product Returns
Balances at December 31, 2017	$	4,119
Additions	2,684
Credits/payments	(1,616)
Balances at December 31, 2018	5,187
Additions	3,138
Credits/payments	(2,205)
Balances at December 31, 2019	6,120
Additions	3,844
Credits/payments	(5,266)
Balances at December 31, 2020	$	4,698

Cost of Goods Sold

Cost of goods sold includes royalties payable, the cost of inventory sold, costs to write down inventory to net realizable value, manufacturing and supply chain costs and product shipping and handling costs related to sales of HETLIOZ® and Fanapt® to the Company’s distribution partners.

Research and Development Expenses

Research and development expenses consist primarily of fees for services provided by third parties in connection with the clinical trials, costs of contract manufacturing services, milestone payments, costs of materials used in clinical trials and research and development, costs for regulatory consultants and filings, depreciation of capital resources used to develop products, related facilities costs, and salaries, other employee-related costs and stock-based compensation for research and development personnel. The Company expenses research and development costs as they are incurred for products in the development stage, including manufacturing costs and milestone payments made under license agreements prior to FDA approval. Upon and subsequent to FDA approval, manufacturing and milestone payments related to license agreements are

capitalized. Milestone payments are accrued when it is deemed probable that the milestone event will be achieved. Costs related to the acquisition of intellectual property are expensed as incurred if the underlying technology is developed in connection with the Company’s research and development efforts and has no alternative future use.

Selling, General and Administrative Expenses

Selling, general and administrative expenses consist of salaries, stock-based compensation, facilities and third-party expenses. Selling, general and administrative expenses are associated with the activities of the corporate, finance, accounting, information technology, business development, commercial support, trade and distribution, sales, marketing, legal, medical affairs and human resource functions. Additionally, selling, general and administrative expenses included an estimate for the annual Affordable Care Act fee.

Stock-Based Compensation

Compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The Company recognizes the expense over the award’s vesting period. The fair value of stock options granted and restricted stock units (RSUs) awarded are amortized using the straight-line method. As stock-based compensation expense recognized in the Consolidated Statements of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

Advertising Expense

The Company expenses the costs of advertising, including branded promotional expenses, as incurred. Branded advertising expenses, recorded in selling, general and administrative expenses, were $12.6 million, $3.2 million and $0.9 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Foreign Currency

The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s international subsidiaries is the local currency. Assets and liabilities denominated in foreign currencies, including intercompany balances for which settlement is anticipated in the foreseeable future, are translated at exchange rates in effect at the balance sheet date. Foreign currency equity balances are translated at historical rates. Revenues and expenses denominated in foreign currencies are translated at average exchange rates for the respective periods. Foreign currency translation adjustments are recorded in accumulated other comprehensive income.

Transactions denominated in currencies other than subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in the Consolidated Balance Sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. Foreign currency transaction gains and losses are included in other income and were not material for the years ended December 31, 2020, 2019 and 2018, respectively.

Income Taxes

The Company accounts for income taxes using the asset and liability method. Under the asset and liability method, current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Tax rate changes are reflected in income during the period such changes are enacted. Changes in ownership may limit the amount of net operating loss (NOL) carryforwards that can be utilized in the future to offset taxable income. Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement.

Certain Risks and Uncertainties

The outbreak of the novel coronavirus known as COVID-19 has resulted in government-imposed quarantines, travel restrictions and other public health safety measures. As this pandemic endures, the extent to which COVID-19 may impact the Company's business, financial condition and results of operations is uncertain and will depend on many factors outside of the Company's control.

The Company’s products under development require approval from the FDA or other international regulatory agencies prior to commercial sales. There can be no assurance the products will receive the necessary clearance. If the Company is denied clearance or clearance is delayed, it may have a material adverse impact on the Company.

The Company’s products are concentrated in rapidly changing, highly competitive markets, which are characterized by rapid technological advances, changes in customer requirements and evolving regulatory requirements and industry standards. Any failure by the Company to anticipate or to respond adequately to technological developments in its industry, changes in customer requirements or changes in regulatory requirements or industry standards or any significant delays in the development or introduction of products or services could have a material adverse effect on the Company’s business, operating results and future cash flows.

The Company depends on single source suppliers for critical raw materials for manufacturing, as well as other components required for the administration of its products. The loss of these suppliers could delay the clinical trials or prevent or delay commercialization of the products.

Concentrations of Credit Risk

Financial instruments, which potentially subject the Company to significant concentrations of credit risk, consist primarily of cash, cash equivalents and marketable securities. The Company places its cash, cash equivalents and marketable securities with highly rated financial institutions. At December 31, 2020, the Company maintained all of its cash, cash equivalents and marketable securities in two financial institutions. Deposits held with these institutions may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand, and the Company believes there is minimal risk of losses on such balances.

Segment and Geographic Information

The Company operates in one reporting segment and, accordingly, no segment disclosures are presented herein. Foreign sales were not material for each of the years ended December 31, 2020, 2019 and 2018.

Recent Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which clarifies and simplifies certain aspects of the accounting for income taxes. The standard is effective for years beginning after December 15, 2020, and interim periods within annual periods beginning after December 15, 2020. The adoption of this standard on January 1, 2021 is not expected to have a material impact on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, which changed the impairment model for most financial assets and certain other financial instruments. The standard requires the use of a forward-looking “expected loss” model for instruments measured at amortized cost that generally will result in the earlier recognition of allowances for losses. The standard is effective for years beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2019. The adoption of this standard on January 1, 2020 did not have a material impact on the Company's consolidated financial results.

Marketable Securities

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

Marketable SecuritiesThe following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2020, which all have contractual maturities of less than two years:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
U.S. Treasury and government agencies	$	165,966	$	129	$	(3)	$	166,092
Corporate debt	140,538		87		(8)		140,617

Total marketable securities	$	306,504	$	216	$	(11)	$	306,709

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2019, which all have contractual maturities of less than two years:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
U.S. Treasury and government agencies	$	88,535	$	68	$	(2)	$	88,601
Corporate debt	129,860		196		(1)		130,055
Asset-backed securities	48,355		49		(3)		48,401
Total marketable securities	$	266,750	$	313	$	(6)	$	267,057

Fair Value Measurements

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

Authoritative guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include:

•Level 1 — defined as observable inputs such as quoted prices in active markets

•Level 2 — defined as inputs other than quoted prices in active markets that are either directly or indirectly observable

•Level 3 — defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions

The Company's assets classified in Level 1 and Level 2 as of December 31, 2020 and 2019 consist of cash equivalents and available-for-sale marketable securities. The valuation of Level 1 instruments is determined using a market approach and is based upon unadjusted quoted prices for identical assets in active markets. The valuation of Level 2 instruments is also determined using a market approach based upon quoted prices for similar assets in active markets, or other inputs that are observable for substantially the full term of the financial instrument. Level 2 securities include certificates of deposit, commercial paper, corporate notes and asset-backed securities that use as their basis readily observable market parameters.

The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2020, as follows:


			Fair Value Measurement as of December 31, 2020 Using
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury and government agencies	$	166,092	$	166,092	$	—	$	—
Corporate debt	140,617		—		140,617		—

Total assets measured at fair value	$	306,709	$	166,092	$	140,617	$	—

The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2019, as follows:


			Fair Value Measurement as of December 31, 2019 Using
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury and government agencies	$	88,601	$	88,601	$	—	$	—
Corporate debt	137,025		—		137,025		—
Asset-backed securities	48,401		—		48,401		—
Total assets measured at fair value	$	274,027	$	88,601	$	185,426	$	—

Total assets measured at fair value as of December 31, 2020 include no cash equivalents. Total assets measured at fair value as of December 31, 2019 include $7.0 million of cash equivalents.

The Company also has financial assets and liabilities, not required to be measured at fair value on a recurring basis, which primarily consist of cash, accounts receivable, restricted cash, accounts payable and accrued liabilities, product revenue allowances, and milestone obligations under license agreements, the carrying values of which materially approximate their fair values.

- Definition

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

+ References + Details

Inventory

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventory

Inventory consisted of the following as of December 31, 2020 and 2019:


(in thousands)	December 31, 2020		December 31, 2019
Current assets
Work-in-process	$	66	$	—
Finished goods	1,214		1,140
Total inventory, current	$	1,280	$	1,140
Non-Current assets
Raw materials	$	744	$	659
Work-in-process	4,045		1,109
Finished goods	302		1,056
Total inventory, non-current	5,091		2,824
Total inventory	$	6,371	$	3,964

Property and Equipment

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Property and Equipment

The following is a summary of the Company’s property and equipment, at cost, as of December 31, 2020 and 2019:


(in thousands)	Estimated Useful Life (Years)	December 31, 2020		December 31, 2019
Computer and other equipment	3	$	5,212	$	4,398
Furniture and fixtures	5 - 7	1,495		1,491
Leasehold improvements	5 - 11	5,457		4,587
Total property and equipment, gross		12,164		10,476
Accumulated depreciation and amortization		(8,028)		(6,612)
Total property and equipment, net		$	4,136	$	3,864

Depreciation expense was $1.4 million for each of the years ended December 31, 2020, 2019 and 2018.

Leases

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Leases

The Company's long-term leases primarily include operating leases and subleases for office space in Washington, D.C. and London, England. The Company recognized ROU assets and lease liabilities related to fixed payments for these long-term operating leases in its Consolidated Balance Sheet as of December 31, 2020 and 2019. The Company also has short-term leases, including office space in Berlin, Germany.

In June 2011, the Company entered into an operating lease agreement under which it leases 33,534 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. Subject to the prior rights of other tenants, the Company has the right to renew the lease for five years following its expiration in July 2028. As of December 31, 2020, the renewal period has not been included in the lease term. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions. The lease may be terminated early by the Company or the landlord under certain circumstances.

In June 2016, the Company entered into a sublease agreement under which it subleases an additional 9,928 square feet of office space for its headquarters at 2200 Pennsylvania Avenue, N.W. in Washington, D.C. The sublease term began in

January 2017 and ends in July 2026 but may be terminated earlier by either party under certain circumstances. The Company has the right to sublease or assign all or a portion of the premises, subject to standard conditions.

In May 2016, the Company entered into an operating lease agreement under which it leases 2,880 square feet of office space in London, England. In November 2020, the Company extended the non-cancellable portion of the lease term from 2021 to 2023 and has the option to renew the lease for an additional three years following its expiration.

The following is a summary of the Company’s ROU assets and operating lease liabilities as of December 31, 2020 and 2019:


(in thousands)	Classification on the Balance Sheet	December 31, 2020			December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	10,459		$	11,180

Liabilities
Operating lease current liabilities	Accounts payable and accrued liabilities	$	2,117		$	2,147
Operating lease non-current liabilities	Operating lease non-current liabilities	11,497			12,455
Total lease liabilities		$	13,614		$	14,602

Weighted average remaining lease term		7.1			8.1
Weighted average discount rate(1)		8.1		%	8.1		%

(1)Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.

For each of the years ended December 31, 2020 and 2019, the Company recognized operating lease cost of $2.3 million and short-term operating lease cost of $0.4 million. The Company also recognized $1.5 million and $1.4 million, respectively, of expense related to non-lease elements, such as building maintenance services and utilities, and executory costs associated with the operating leases. For existing leases as of January 1, 2019, executory costs are excluded from operating lease expense, which is consistent with the Company's accounting under ASC 840. For all leases entered into after January 1, 2019, executory costs are allocated between lease and non-lease elements based upon their relative stand-alone prices. For the year ended December 31, 2018, the Company recognized $3.6 million of rent expense, inclusive of lease expense, non-lease elements, and executory costs for short and long-term operating leases.

Cash paid for amounts included in the measurement of operating lease liabilities is included in operating cash flows and was $2.6 million and $2.5 million for the years ended December 31, 2020 and 2019, respectively.

The table below reconciles the Company's future cash obligations to operating lease liabilities recorded on the balance sheet as of December 31, 2020:



(in thousands)	Operating Leases
2021	$	2,290
2022	2,611
2023	2,462
2024	2,488
2025	2,557
Thereafter	5,624
Total minimum lease payments	18,032
Less: amount of lease payments representing interest	(4,418)
Present value of future minimum lease payments	13,614
Less: current obligations under leases	(2,117)
Operating lease non-current liabilities	$	11,497

Intangible Assets

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

HETLIOZ®. In January 2014, the Company announced that the FDA had approved the New Drug Application (NDA) for HETLIOZ®. As a result of this approval, the Company met a milestone under its license agreement with Bristol-Myers Squibb (BMS) that required the Company to make a license payment of $8.0 million to BMS. The $8.0 million is being amortized on a straight-line basis over the estimated economic useful life of the related product patents.

In April 2018, the Company met its final milestone under its license agreement with BMS when cumulative worldwide sales of HETLIOZ® reached $250.0 million. As a result of the achievement of this milestone, the Company made a payment to BMS of $25.0 million in 2018. The $25.0 million, which was capitalized as an intangible asset in the first quarter of 2015, was determined to be additional consideration for the acquisition of the HETLIOZ® intangible asset and is being amortized on a straight-line basis over the estimated economic useful life of the related product patents.

The estimated economic useful life of both the $8.0 million and the $25.0 million intangible assets were changed from February 2035 to July 2035 based on the July 2035 expiration date of U.S. patent number 10,376,487 (‘487 Patent) issued by the U.S. Patent and Trademark Office in August 2019.

The following is a summary of the Company’s intangible assets as of December 31, 2020:


		December 31, 2020
(in thousands)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
HETLIOZ®	July 2035	$	33,000	$	11,441	$	21,559

The following is a summary of the Company’s intangible assets as of December 31, 2019:


		December 31, 2019
(in thousands)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
HETLIOZ®	July 2035	$	33,000	$	9,963	$	23,037

As of December 31, 2020 and 2019, the Company also had $27.9 million of fully amortized intangible assets related to Fanapt®.

Intangible assets are amortized over their estimated useful economic life using the straight-line method. Amortization expense for the years ended December 31, 2020, 2019 and 2018 was as follows:


	Year Ended December 31,
(in thousands)	2020		2019		2018
HETLIOZ®	$	1,478	$	1,505	$	1,527

The following is a summary of the future intangible asset amortization schedule as of December 31, 2020:


(in thousands)	Total		2021		2022		2023		2024		2025		Thereafter
HETLIOZ®	$	21,559	$	1,478	$	1,478	$	1,478	$	1,478	$	1,478	$	14,169

Accounts Payable and Accrued Liabilities

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities

The following is a summary of the Company’s accounts payable and accrued liabilities as of December 31, 2020 and 2019:


(in thousands)	December 31, 2020		December 31, 2019
Compensation and employee benefits	$	10,951	$	6,597
Research and development expenses	6,173		5,893
Royalties payable	5,817		5,904
Consulting and other professional fees	5,052		5,376
Operating lease liabilities	2,117		2,147
Milestone obligations under license agreements	350		—
Other	1,049		1,673
Total accounts payable and accrued liabilities	$	31,509	$	27,590

Commitments and Contingencies	12 Months Ended
Commitments and Contingencies	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Guarantees and Indemnifications The Company has entered into a number of standard intellectual property indemnification agreements in the ordinary course of its business. Pursuant to these agreements, the Company indemnifies, holds harmless, and agrees to reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally the Company’s business partners or customers, in connection with any U.S. patent or any copyright or other intellectual property infringement claim by any third party with respect to the Company’s products. The term of these indemnification agreements is generally perpetual from the date of execution of the agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited. Since inception, the Company has not incurred costs to defend lawsuits or settle claims related to these indemnification agreements. The Company also indemnifies its officers and directors for certain events or occurrences, subject to certain conditions. License Agreements The Company’s rights to develop and commercialize its products are subject to the terms and conditions of licenses granted to the Company by other pharmaceutical companies. HETLIOZ®. In February 2004, the Company entered into a license agreement with BMS under which it received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize HETLIOZ®. As of December 31, 2020, the Company has paid BMS $37.5 million in upfront fees and milestone obligations, including $33.0 million of regulatory approval and commercial milestones capitalized as intangible assets (see Note 8). The Company has no remaining milestone obligations to BMS. Additionally, the Company is obligated to make royalty payments on HETLIOZ® net sales to BMS in any territory where the Company commercializes HETLIOZ® for a period equal to the greater of 10 years following the first commercial sale in the territory or the expiry of the new chemical entity (NCE) patent in that territory. During the period prior to the expiry of the NCE patent in a territory, the Company is obligated to pay a 10% royalty on net sales in that territory. The royalty rate is decreased by half for countries in which no NCE patent existed or for the remainder of the 10 years after the expiry of the NCE patent. The Company is also obligated under the license agreement to pay BMS a percentage of any sublicense fees, upfront payments and milestone and other payments (excluding royalties) that it receives from a third party in connection with any sublicensing arrangement, at a rate which is in the mid-twenties. The Company is obligated to use its commercially reasonable efforts to develop and commercialize HETLIOZ®. Fanapt®. Pursuant to the terms of a settlement agreement with Novartis Pharma AG (Novartis), Novartis transferred all U.S. and Canadian rights in the Fanapt® franchise to the Company on December 31, 2014. The Company paid directly to Sanofi S.A. (Sanofi) a fixed royalty of 3% of net sales through December 2019 related to manufacturing know-how. The Company is also obligated to pay Sanofi a fixed royalty on Fanapt® net sales equal to 6% on Sanofi know-how not related to manufacturing under certain conditions for a period of up to 10 years in markets where the NCE patent has expired or was not issued. The Company is obligated to pay this 6% royalty on net sales in the U.S. through November 2026. Tradipitant. In April 2012, the Company entered into a license agreement with Eli Lilly and Company (Lilly) pursuant to which the Company acquired an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize an NK-1R antagonist, tradipitant, for all human indications. Lilly is eligible to receive future payments based upon achievement of specified development, regulatory approval and commercialization milestones as well as tiered-royalties on net sales at percentage rates up to the low double digits. As of December 31, 2020, the Company has paid Lilly $3.0 million in upfront fees and development milestones. As of December 31, 2020, remaining milestone obligations include a $2.0 million development milestone due upon the filing of the first marketing authorization for tradipitant in either the U.S. or European Union (E.U.), $10.0 million and $5.0 million for the first approval of a marketing authorization for tradipitant in the U.S. and E.U., respectively, and up to $80.0 million for sales milestones. The Company is obligated to use its commercially reasonable efforts to develop and commercialize tradipitant. Portfolio of CFTR activators and inhibitors. In March 2017, the Company entered into a license agreement with the University of California San Francisco (UCSF), under which the Company acquired an exclusive worldwide license to develop and commercialize a portfolio of CFTR activators and inhibitors. Pursuant to the license agreement, the Company will develop and commercialize the CFTR activators and inhibitors and is responsible for all development costs under the license agreement, including current pre-investigational new drug development work. UCSF is eligible to receive future payments based upon achievement of specified development and commercialization milestones as well as single-digit royalties on net sales. As of December 31, 2020, the Company has paid UCSF $1.2 million in upfront fees and development milestones, including a $0.2 million development milestone payment in March 2019. As of December 31, 2020, remaining milestone obligations include $12.2 million for development milestones and $33.0 million for future regulatory approval and sales milestones. Included in the $12.2 million of development milestones is a $350,000 milestone due upon the conclusion of a Phase I study for each licensed product but not to exceed $1.1 million in total for the CFTR portfolio. In the fourth quarter of 2020, the Company determined the $350,000 milestone to be probable and accrued it as a current liability as of December 31, 2020. VQW-765. In connection with a settlement agreement with Novartis relating to Fanapt®, the Company received an exclusive worldwide license under certain patents and patent applications, and other licenses to intellectual property, to develop and commercialize VQW-765, a Phase II alpha-7 nicotinic acetylcholine receptor partial agonist. Pursuant to the license agreement, the Company is obligated to use its commercially reasonable efforts to develop and commercialize VQW-765 and is responsible for all development costs. The Company has no milestone obligations; however, Novartis is eligible to receive tiered-royalties on net sales at percentage rates up to the mid-teens. Purchase Commitments In the course of its business, the Company regularly enters into agreements with clinical organizations to provide services relating to clinical development and clinical manufacturing activities under fee service arrangements. The Company’s current agreements for clinical, marketing and other services may be terminated on generally 90 days’ notice without incurring additional charges, other than charges for work completed but not paid for through the effective date of termination and other costs incurred by the Company’s contractors in closing out work in progress as of the effective date of termination.

Public Offering of Common Stock	12 Months Ended
Public Offering of Common Stock	Dec. 31, 2020
Equity [Abstract]
Public Offering of Common Stock	Public Offering of Common StockIn March 2018, the Company completed a public offering of 6,325,000 shares of its common stock, including the exercise of the underwriters’ option to purchase an additional 825,000 shares of common stock, at a price to the public of $17.00 per share. Net cash proceeds from the public offering were $100.9 million, after deducting the underwriting discounts and commissions and offering expenses.

Accumulated Other Comprehensive Income

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Accumulated Other Comprehensive Income

The accumulated balances related to each component of other comprehensive income (loss), net of taxes, were as follows for the years ended December 31, 2020 and 2019:


(in thousands)	December 31, 2020		December 31, 2019
Foreign currency translation	$	81	$	13
Unrealized gain on marketable securities	158		236
Accumulated other comprehensive income	$	239	$	249

Stock-Based Compensation

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

As of December 31, 2020, there were 5,246,381 shares subject to outstanding options and RSUs under the 2006 Equity Incentive Plan (2006 Plan) and the Amended and Restated 2016 Equity Incentive Plan (2016 Plan, and together with the 2006 Plan, Plans). The 2006 Plan expired by its terms in April 2016, and the Company adopted the 2016 Plan. Outstanding options under the 2006 Plan remain in effect and the terms of the 2006 Plan continue to apply, but no additional awards can be granted under the 2006 Plan. In June 2016, the Company’s stockholders approved the 2016 Plan. The 2016 Plan has been amended and restated three times to increase the number of shares reserved for issuance, among other administrative changes. Each of the amendments and restatements of the 2016 Plan was approved by the Company's stockholders. There is a total of 8,790,000 shares of common stock authorized for issuance under the 2016 Plan, 3,991,612 shares of which remained available for future grant as of December 31, 2020.

Stock Options

The Company has granted option awards under the Plans with service conditions (service option awards) that are subject to terms and conditions established by the compensation committee of the board of directors. Service option awards have 10-year contractual terms. Service option awards granted to employees and new directors upon their election vest and become exercisable over four years, with the first 25% of the shares subject to service option awards vesting on the first anniversary of the grant date and the remaining 75% of the shares subject to the service option awards in 36 equal monthly installments thereafter. Subsequent annual service option awards granted to directors vest and become exercisable in full on the first anniversary of the grant date. Certain service option awards granted to employees and executive officers provide for partial

acceleration of vesting if the employee or executive officer is subject to an involuntary termination, and full acceleration of vesting if the employee or executive officer is subject to an involuntary termination within 24 months after a change in control of the Company. Service option awards granted to directors provide for accelerated vesting if there is a change in control of the Company or if the director's service terminates as a result of the director's death or total and permanent disability.

As of December 31, 2020, $6.9 million of unrecognized compensation costs related to unvested service option awards are expected to be recognized over a weighted average period of 1.2 years. No option awards are classified as a liability as of December 31, 2020.

A summary of option activity under the Plans for the years ended December 31, 2020, 2019, and 2018 is as follows:


(in thousands, except for share and per share amounts)	Number of Shares	Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2017	4,719,784	$	10.03	5.63	$	24,421
Granted	567,500	19.22
Forfeited	(232,527)	13.99

Exercised	(685,715)	9.12			5,945
Outstanding at December 31, 2018	4,369,042	11.15		5.28	65,438
Granted	687,500	18.38
Forfeited	(53)	7.94
Expired	(15,000)	14.78
Exercised	(546,344)	11.47			2,482
Outstanding at December 31, 2019	4,495,145	12.21		5.58	22,148
Granted	627,500	11.27
Forfeited	(225,000)	18.83
Expired	(557,604)	14.21
Exercised	(733,223)	7.68			2,868
Outstanding at December 31, 2020	3,606,818	12.24		5.76	8,511
Exercisable at December 31, 2020	2,556,394	11.52		4.53	7,302
Vested and expected to vest at December 31, 2020	3,482,804	12.22		5.64	8,337

The weighted average grant-date fair value of options granted was $5.53, $10.19 and $10.66 per share for the years ended December 31, 2020, 2019 and 2018, respectively. Proceeds from the exercise of stock options amounted to $5.6 million, $6.3 million and $6.3 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Restricted Stock Units

An RSU is a stock award that entitles the holder to receive shares of the Company’s common stock as the award vests. The fair value of each RSU is based on the closing price of the Company’s stock on the date of grant. The Company has granted RSUs under the Plans with service conditions (service RSUs) that are subject to terms and conditions established by the compensation committee of the board of directors. Service RSUs granted to employees vest in four equal annual installments provided that the employee remains employed with the Company. Certain service RSUs granted to employees and executive officers provide for accelerated vesting if the employee or executive officer is subject to an involuntary termination within 24 months after a change in control. Annual service RSUs granted to directors vest on the first anniversary of the grant date and provide for accelerated vesting if there is a change in control of the Company.

As of December 31, 2020, $18.3 million of unrecognized compensation costs related to unvested service RSUs are expected to be recognized over a weighted average period of 1.6 years. No RSUs are classified as a liability as of December 31, 2020.

A summary of RSU activity for the Plans for the years ended December 31, 2020, 2019, and 2018 is as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2017	1,357,838	$	12.72
Granted	714,086	18.93
Forfeited	(229,603)	15.19
Vested	(528,745)	12.69
Unvested at December 31, 2018	1,313,576	15.68
Granted	937,328	19.46
Forfeited	(75,444)	18.93
Vested	(526,175)	14.54
Unvested at December 31, 2019	1,649,285	18.04
Granted	832,162	11.28
Forfeited	(260,127)	17.35
Vested	(581,757)	16.54
Unvested at December 31, 2020	1,639,563	15.26

The grant date fair value for the 581,757 shares underlying RSUs that vested during the year ended December 31, 2020 was $9.6 million.

Stock-Based Compensation Expense

Stock-based compensation expense recognized for the years ended December 31, 2020, 2019 and 2018 comprised of the following:


	Year Ended December 31,
(in thousands)	2020		2019		2018
Research and development	$	3,804	$	3,207	$	1,290
Selling, general and administrative	9,556		10,251		10,376
Total stock-based compensation expense	$	13,360	$	13,458	$	11,666

The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model that uses the assumptions noted in the following table. Expected volatility rates are based on the historical volatility of the Company’s publicly traded common stock and other factors. The risk-free interest rates are based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The Company has never paid cash dividends to its stockholders and does not plan to pay dividends in the foreseeable future. Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the years ended December 31, 2020, 2019 and 2018 were as follows:


	Year Ended December 31,
	2020		2019		2018
Expected dividend yield	—	%	—	%	—	%
Weighted average expected volatility	51	%	58	%	58	%
Weighted average expected term (years)	6.07		5.95		5.90
Weighted average risk-free rate	1.14	%	2.26	%	2.68	%

Employee Benefit Plan	12 Months Ended
Employee Benefit Plan	Dec. 31, 2020
Retirement Benefits [Abstract]
Employee Benefit Plan	Employee Benefit PlanThe Company has a defined contribution plan under IRC Section 401(k). This plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Currently, the Company matches fifty percent up to the first six percent of employee contributions. All matching contributions have been paid by the Company. The Company match vests over a 4-year period and amounted to $0.9 million, $0.8 million and $0.9 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

The following is a summary of the domestic and foreign components of income before income taxes for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
(in thousands)	2020		2019		2018
Domestic	$	31,667	$	28,794	$	25,123
Foreign	(12)		234		223
Total income before income taxes	$	31,655	$	29,028	$	25,346

The following is a summary of the provision (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
(in thousands)	2020		2019		2018
Current:
Federal	$	—	$	—	$	—
State	2,061		1,161		53
Foreign	68		81		99
Deferred:
Federal	6,076		(85,624)		—
State	155		(2,127)		—
Foreign	(42)		(16)		(14)
Provision (benefit) for income taxes	$	8,318	$	(86,525)	$	138

The Company assesses the need for a valuation allowance against its deferred tax asset each quarter through the review of all available positive and negative evidence. Deferred tax assets are reduced by a tax valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. The analysis depends on historical and projected taxable income. Projected taxable income includes significant assumptions related to revenue, commercial expenses and research and development activities. During 2019, after considering all available positive and negative evidence, including but not limited to cumulative income in recent periods, historical, current and future projected results and significant risks and uncertainties related to forecasts, the Company concluded that it was more likely than not that substantially all of its deferred tax assets in the U.S. are realizable in future periods. A valuation allowance was retained against certain District of Columbia state deferred tax assets as of December 31, 2020, and 2019.

The following is reconciliation between the federal statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
	2020		2019		2018
Federal tax at statutory rate	21.0	%	21.0	%	21.0	%
State taxes	2.6	%	1.8	%	1.7	%
Change in valuation allowance (1)	(3.5)	%	(357.6)	%	(16.4)	%
Research and development credit (2)	(5.4)	%	(10.9)	%	(9.1)	%
Orphan drug credit (2)	(1.3)	%	17.1	%	(2.7)	%
Section 162(m) limitation	1.7	%	2.7	%	3.1	%
Other tax rate changes	0.2	%	(0.5)	%	(0.7)	%
Other changes in state deferred taxes (3)	—	%	—	%	5.9	%
Uncertain tax positions (2)	4.7	%	26.3	%	—	%
Stock-based compensation	5.1	%	(1.0)	%	(3.9)	%
Other items	1.2	%	3.0	%	1.6	%
Effective tax rate	26.3	%	(298.1)	%	0.5	%

(1)Reductions in 2020 valuation allowances are attributable to 2020 income before income taxes. Reductions in 2019 valuation allowances include $7.5 million related to 2019 U.S. income before income taxes, $10.7 related to adjustments for prior period credit carryforwards and uncertain tax positions and $85.6 million related to a change in

beginning-of-the-year balances that resulted from a change in circumstances that caused a change in judgment about the realizability of U.S. deferred tax assets in future years. Reductions in 2018 valuation allowances are attributable to 2018 income before income taxes.

(2)2019 activity includes adjustments to prior year credit carryforwards and prior year tax positions. As a result of the tax valuation allowance previously recorded against deferred tax assets in the U.S., these adjustments resulted in no change in tax expense.

(3)Includes adjustments to state deferred taxes based on changes to filing jurisdictions.

The following is a summary of the components of the Company’s net deferred tax assets and the related tax valuation allowance as of December 31, 2020 and 2019. Certain prior period amounts in the table have been reclassified to conform to the current period presentation.


(in thousands)	December 31, 2020		December 31, 2019
Deferred tax assets:
Net operating loss carryforwards	$	43,623	$	52,034
Stock-based compensation	4,653		5,298
Accrued expenses	2,429		1,266
Allowance for returns and credit losses	1,169		1,468
Research and development and orphan drug credit carryforwards	37,737		36,041

Other	3,279		4,572
Total deferred tax assets	92,890		100,679
Deferred tax liabilities:
Intangible assets	(1,911)		(1,994)
Other	(2,412)		(2,850)
Total deferred tax liabilities	(4,323)		(4,844)
Deferred tax assets, net	88,567		95,835
Less: Valuation allowance	7,051		8,155
Net deferred tax assets	$	81,516	$	87,680

The following is a summary of changes in the Company’s tax valuation allowance for the years ended December 31, 2020, 2019 and 2018:


(in thousands)	Balance at Beginning of Year		Additions		Reductions		Balance at End of Year
Year Ended:
December 31, 2020	$	8,155	$	—	$	(1,104)	$	7,051
December 31, 2019	111,950		—		(103,795)		8,155
December 31, 2018	116,110		4,036		(8,196)		111,950

The Company has NOL and other tax credit carryforwards in several jurisdictions. As of December 31, 2020, the Company has $35.2 million of deferred tax assets relating to U.S. federal NOL carryforwards, along with deferred tax assets of $13.4 million and $24.4 million related to U.S. federal research and development credits and orphan drug credits, respectively. These tax attributes will begin to expire in 2031, 2024 and 2030, respectively. In addition, the Company has $8.4 million of deferred tax assets relating to U.S. state NOL carryforwards, which primarily relate to the District of Columbia. State NOLs for the District of Columbia will begin to expire in 2032 and other state NOLs will begin to expire in 2029.

Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:


	Year Ended December 31,
(in thousands)	2020		2019		2018
Unrecognized tax benefits at the beginning of the year	$	9,741	$	—	$	—
Increases (decreases) related to prior year tax positions	(121)		8,223		—
Increases related to current year tax positions	1,613		1,518		—
Unrecognized tax benefits at the end of the year	$	11,233	$	9,741	$	—

The amount of uncertain tax benefits that, if recognized, would impact the effective tax rate is $11.2 million. No material income tax interest or penalties have been recorded, and unrecognized tax benefits are not expected to change materially over the next 12 months. Income tax returns filed by the Company for all periods are open to examination by tax jurisdictions. As of December 31, 2020, the Company is not under examination by any federal or state tax jurisdiction.

Certain tax attributes of the Company, including NOLs and credits, would be subject to a limitation should an ownership change as defined under the Internal Revenue Code of 1986, as amended (IRC), Section 382, occur. The limitations resulting from a change in ownership could affect the Company’s ability to utilize its NOLs and credit carryforward (tax attributes). Ownership changes occurred in the years ending December 31, 2014 and December 31, 2008. The Company believes that the ownership changes in 2014 and 2008 will not impact its ability to utilize NOL and credit carryforwards; however, future ownership changes may cause the Company’s existing tax attributes to have additional limitations.

Earnings per Share

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Earnings per Share

Basic earnings per share (EPS) is calculated by dividing the net income by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income by the weighted average number of shares of common stock outstanding, plus potential outstanding common stock for the period. Potential outstanding common stock includes stock options and shares underlying RSUs, but only to the extent that their inclusion is dilutive.

The following table presents the calculation of basic and diluted net income per share of common stock for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
(in thousands, except for share and per share amounts)	2020		2019		2018
Numerator:
Net income	$	23,337	$	115,553	$	25,208
Denominator:
Weighted average shares outstanding, basic	54,427,683		53,137,562		50,859,947
Effect of dilutive securities	763,119		1,709,498		2,185,310
Weighted average shares outstanding, diluted	55,190,802		54,847,060		53,045,257
Net income per share, basic and diluted:
Basic	$	0.43	$	2.17	$	0.50
Diluted	$	0.42	$	2.11	$	0.48
Antidilutive securities excluded from calculations of diluted net income per share	3,407,409		1,932,024		903,265

Legal Matters	12 Months Ended
Legal Matters	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Legal Matters	Legal Matters Fanapt®. In 2014 and 2015, Roxane Laboratories, Inc. (Roxane) and its affiliates, West-Ward Pharmaceuticals International Limited and West-Ward Pharmaceuticals Corp (West-Ward), Inventia Healthcare Pvt. Ltd. (Inventia), Lupin Ltd. and Lupin Pharmaceuticals, Inc. (Lupin), Taro Pharmaceuticals USA, Inc. and Taro Pharmaceutical Industries, Ltd. (Taro), and Apotex Inc. and Apotex Corp. (Apotex) (collectively, the Fanapt® Defendants) each submitted an Abbreviated New Drug Applications (ANDA) to the FDA seeking approval to market generic versions of Fanapt® prior to the expiration of certain of the Company’s patents covering Fanapt®, including U.S. Patent No. 8,586,610 (‘610 Patent) and U.S. Patent No. 9,138,432 (‘432 Patent). In response, the Company filed separate lawsuits in 2014 and 2015 against each of the Fanapt® Defendants in the U.S. District Court for the District of Delaware (Delaware District Court) for patent infringement. In August 2016, the Delaware District Court ruled in the Company’s favor, permanently enjoining Roxane from manufacturing, using, selling, offering to sell, distributing or importing any generic iloperidone product described in Roxane’s ANDA until the expiration of the ‘610 Patent in November 2027, or May 2028 if the Company obtains pediatric exclusivity. This ruling was affirmed on appeal by the Federal Circuit Court of Appeals in April 2018. West-Ward, having replaced Roxane as defendant following the acquisition of Roxane by West-Ward’s parent company, Hikma Pharmaceuticals PLC (Hikma), petitioned the U.S. Supreme Court for a writ of certiorari, which was denied in January 2020. The Company’s lawsuit against Hikma regarding the ‘432 Patent remains pending. The Company entered into separate license agreements with each of Taro, Apotex and Lupin resolving these lawsuits in October 2016, December 2016 and July 2020, respectively. The license agreements grant Taro, Apotex and Lupin non-exclusive licenses to manufacture and commercialize a version of Fanapt® in the U.S. effective as of the expiration of the ‘610 Patent or earlier under certain limited circumstances. The Company entered into a confidential stipulation with Inventia regarding any potential launch of its generic versions of Fanapt®, but the Company’s lawsuit against Inventia regarding the ‘610 and ‘432 Patents remains pending. HETLIOZ®. Between April and February 2021, the Company filed numerous patent infringement lawsuits in the Delaware District Court against Teva Pharmaceuticals USA, Inc. (Teva), MSN Pharmaceuticals Inc. and MSN Laboratories Private Limited (MSN) and Apotex (collectively with Teva and MSN, the HETLIOZ® Defendants) after having received multiple Paragraph IV certification notice letters (Paragraph IV Letters) from each of the HETLIOZ® Defendants alleging that the Company’s patents covering HETLIOZ®, U.S. Patent Nos. RE46,604, 9,060,995, 9,539,234, 9,549,913, 9,730,910, 9,844,241, 10,071,977, 10,149,829, 10,376,487, 10,449,176, 10,610,510, 10,610,511, and 10,829,465, were invalid, unenforceable and/or would not be infringed by the manufacture, use or sale of their generic versions of HETLIOZ®, as described in the ANDAs submitted to the FDA by each of the HETLIOZ® Defendants. These lawsuits have been consolidated and are schedule for trial in March 2022. Other Matters. In February 2019, a qui tam action filed against the Company was unsealed by order of the U.S. District Court for the District of Columbia (DC District Court). The qui tam action, which was filed under seal in March 2017, was brought by a former Company employee on behalf of the U.S., 28 states and the District of Columbia (collectively, the Plaintiff States) and the policyholders of certain insurance companies under the Federal False Claims Act and state law equivalents to the Federal False Claims Act and related state laws. The complaint alleged that the Company violated these laws through the promotion and marketing of its products Fanapt® and HETLIOZ® and sought, among other things, treble damages, civil penalties for each alleged false claim, and attorneys’ fees and costs. By virtue of the DC District Court having unsealed the original complaint, the Company learned that in January 2019, the U.S. Department of Justice (the DOJ), as well as the Plaintiff States, elected not to intervene in the qui tam action at that time. In May 2019, the plaintiff filed an amended complaint under seal repeating the same allegations and seeking the same relief. According to a filing unsealed in June 2019, the DOJ reaffirmed its decision not to intervene and incorporated its prior filing, indicating that neither the DOJ nor the Plaintiff States were intervening regarding the original complaint. Although the DOJ and the Plaintiff States have elected not to intervene, the plaintiff may litigate this action and the DOJ and the Plaintiff States may later seek to intervene in the action. In August 2019, the Company filed a motion to dismiss, and in October 2019 the plaintiff filed a reply. In May 2020, the DC District Court dismissed the plaintiff’s complaint in its entirety, without prejudice. In June 2020, the plaintiff filed a second amended complaint with similar allegations and seeking the same relief. In July 2020, the Company filed another motion to dismiss and in October 2020 the plaintiff filed a reply. The DC District Court will hear the Company's motion to dismiss on February 24, 2021. The Company intends to continue to vigorously defend itself in the case. In February 2019, a securities class action, Gordon v. Vanda Pharmaceuticals Inc., was filed in the U.S. District Court for the Eastern District of New York naming the Company and certain of its officers as defendants. An amended complaint was filed in July 2019. The amended complaint, filed on behalf of a purported stockholder, asserts claims on behalf of a putative class of all persons who purchased the Company’s publicly traded securities between November 4, 2015 and February 11, 2019, for alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The amended complaint alleges that the defendants made false and misleading statements and/or omissions regarding Fanapt®, HETLIOZ® and the Company’s interactions with the FDA regarding tradipitant between November 3, 2015 and February 11, 2019. In March 2020, the Company filed a motion to dismiss the complaint. The Company believes that it has meritorious defenses and intends to vigorously defend this lawsuit. The Company does not anticipate that this litigation will have a material adverse effect on its business, results of operations or financial condition. However, this lawsuit is subject to inherent uncertainties, the actual cost may be significant, and the Company may not prevail. The Company believes it is entitled to coverage under its relevant insurance policies, subject to a retention, but coverage could be denied or prove to be insufficient. In July 2019, a shareholder derivative complaint, Samuel Williams v. Mihael Polymeropoulos, et al., was filed in the U.S. District Court for the Eastern District of New York naming certain current and former Company directors and officers as defendants. In September 2019, a shareholder derivative complaint, Michael Bavaro v. Mihael Polymeropoulos, et al., was filed in the Delaware District Court naming certain current and former Company directors and officers as defendants. In October 2019, the Company filed a motion to transfer the Bavaro case to the Eastern District of New York, where the Gordon and Williams cases are pending. In March 2020, the Delaware District Court transferred the Bavaro case to the Eastern District of New York, consolidating the Williams and Bavaro cases, and the plaintiffs filed a consolidated complaint in April 2020. These complaints, filed on behalf of purported stockholders, derivatively on behalf of the Company, assert claims for alleged breach of fiduciary duties by certain of the Company’s current and former directors and officers. The Company believes that it has meritorious defenses and intends to vigorously defend this lawsuit. The Company does not anticipate that this litigation will have a material adverse effect on its business, results of operations or financial condition. However, this lawsuit is subject to inherent uncertainties, the actual cost may be significant, and the Company may not prevail. The Company believes it is entitled to coverage under its relevant insurance policies, subject to a retention, but coverage could be denied or prove to be insufficient. In July 2017, the Committee for Medicinal Products for Human Use (CHMP) issued a negative opinion recommending against approval of Fanaptum® (oral iloperidone tablets) for the treatment of schizophrenia in adult patients in the E.U. The CHMP was of the opinion that the benefits of Fanaptum® did not outweigh its risks and recommended against marketing authorization. In March 2018, the Company filed an application seeking annulment of the EMA’s negative opinion and the subsequent European Commission decision refusing marketing authorization of Fanaptum in the E.U. General Court. In December 2019, the General Court issued its judgment dismissing the action, leaving the EMA opinion and Commission decision intact. In February 2020, the Company filed an appeal of this judgment with the Court of Justice of the E.U.

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

The following is a summary of quarterly financial data for the years ended December 31, 2020 and 2019:


(in thousands, except for per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Year Ended December 31, 2020
Revenues	$	58,000	$	62,207	$	60,308	$	67,653
Gross profit (1)	52,423		55,991		54,041		60,871
Income (loss) from operations	(125)		9,171		7,742		10,451
Net income	486		8,714		5,947		8,190
Net income per share, basic	$	0.01	$	0.16	$	0.11	$	0.15
Net income per share, diluted	$	0.01	$	0.16	$	0.11	$	0.15
Year Ended December 31, 2019
Revenues	$	47,713	$	59,060	$	59,485	$	60,930
Gross profit (1)	42,220		52,313		52,327		54,335
Income (loss) from operations	(2,087)		9,895		10,759		4,243
Net income (loss)	(612)		11,526		100,423		4,216
Net income (loss) per share, basic	$	(0.01)	$	0.22	$	1.88	$	0.08
Net income (loss) per share, diluted	$	(0.01)	$	0.21	$	1.84	$	0.08

(1)Gross profit includes revenues less cost of goods sold excluding amortization, and less intangible asset amortization.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2020
Accounting Policies [Abstract]
Business Organization	Business Organization Vanda Pharmaceuticals Inc. (the Company) is a global biopharmaceutical company focused on the development and commercialization of innovative therapies to address high unmet medical needs and improve the lives of patients. The Company commenced its operations in 2003 and operates in one reporting segment. The Company’s commercial portfolio is currently comprised of two products, HETLIOZ® for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) and nighttime sleep disturbances in Smith-Magenis Syndrome (SMS) and Fanapt® for the treatment of schizophrenia. HETLIOZ® is the first treatment for patients with Non-24 and SMS approved by the United States Food and Drug Administration (FDA). In addition, the Company has a number of drugs in development, including: •HETLIOZ® (tasimelteon) for the treatment of jet lag disorder, pediatric Non-24, delayed sleep phase disorder (DSPD) and autism spectrum disorder (ASD); •Fanapt® (iloperidone) for the treatment of bipolar disorder and Parkinson's disease psychosis (PDP) and a long acting injectable (LAI) formulation for the treatment of schizophrenia; •Tradipitant (VLY-686), a small molecule neurokinin-1 receptor (NK-1R) antagonist, for the treatment of gastroparesis, motion sickness, atopic dermatitis, and COVID-19 pneumonia; •VTR-297, a small molecule histone deacetylase (HDAC) inhibitor for the treatment of hematologic malignancies and with potential use as a treatment for several oncology indications; •Portfolio of Cystic Fibrosis Transmembrane Conductance Regulator (CFTR) activators and inhibitors, including VSJ-110 for the treatment of dry eye and ocular inflammation and BPO-27 for the treatment of secretory diarrhea disorders, including cholera; and •VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist, with potential use for the treatment of psychiatric disorders.
Basis of presentation	Basis of Presentation The accompanying consolidated financial statements includes the accounts of Vanda Pharmaceuticals Inc. and its wholly-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Management continually re-evaluates its estimates, judgments and assumptions, and management’s evaluation could change. Actual results could differ from those estimates.
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted CashFor purposes of the Consolidated Balance Sheets and Consolidated Statements of Cash Flows, cash equivalents represent highly-liquid investments with a maturity date of three months or less at the date of purchase. Cash and cash equivalents include investments in money market funds with commercial banks and financial institutions, and commercial paper of high-quality corporate issuers. Restricted cash relates primarily to amounts held as collateral for letters of credit for leases for office space at the Company’s Washington, D.C. headquarters.
Marketable Securities	Marketable Securities The Company classifies all of its marketable securities as available-for-sale securities. The Company’s investment policy requires the selection of high-quality issuers. Available-for-sale securities are carried at fair market value, with unrealized gains and losses reported as a component of stockholders’ equity in accumulated other comprehensive income. At each balance sheet date, the Company assesses available-for-sale securities in an unrealized loss position to determine whether it intends to sell or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value. The Company also reviews its available-for-sale securities in an unrealized loss position to determine whether the unrealized loss is the result of a change in creditworthiness or other factors. If declines in the value of available for-sale securities are determined to be credit-related, a loss is recorded in earnings in the current period. Interest and dividend income is recorded when earned and included in other income. Premiums and discounts on marketable securities are amortized and accreted, respectively, to earliest call date and maturity, respectively, and included in other income. The Company uses the specific identification method in computing realized gains and losses on the sale of investments, which would be included in the Consolidated Statements of Operations when generated. All available-for-sale marketable securities are available for use in current operations and are classified as current.
Inventory	Inventory Inventory, which is recorded at the lower of cost or net realizable value, includes the cost of third-party manufacturing and other direct and indirect costs and is valued using the first-in, first-out method. The Company evaluates expiry risk by evaluating current and future product demand relative to product shelf life. The Company builds demand forecasts by considering factors such as, but not limited to, overall market potential, market share, market acceptance and patient usage. The Company capitalizes inventory costs associated with its products upon regulatory approval when, based on management’s judgment, future commercialization is considered probable and the future economic benefit is expected to be realized; otherwise, such costs are expensed as research and development. Inventory levels are evaluated for the amount of inventory that would be sold within one year. At certain times, the level of inventory can exceed the forecasted level of cost of goods sold for the next 12 months. The Company classifies the estimate of such inventory as non-current.
Intangible Assets	Intangible Assets Costs incurred for products not yet approved by the FDA and for which no alternative future use exists are recorded as research and development expense. Obligations for milestone payments to other pharmaceutical companies that may result in a capitalized intangible asset are recognized when it is deemed probable that the milestone event will occur. In the event a product has been approved by the FDA or an alternative future use exists for a product, patent and license costs are capitalized and amortized on a straight-line basis over the estimated useful economic life of the of the related product patents. For intangible assets related to HETLIOZ®, the estimated useful life is through July 2035, which is the estimated economic useful life of the related product patents. Intangible assets related Fanapt® have been fully amortized on a straight-line basis to November 2016. The useful life estimate for Fanapt® was based on the market participant methodology prescribed by ASC 805, and therefore does not reflect the impact of additional Fanapt® patents solely owned by the Company with varying expiration dates, the latest of which is December 2031.
Property and Equipment	Property and Equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation of most property and equipment is provided on a straight-line basis over the estimated useful lives of the assets. Leasehold improvements are amortized using a straight-line basis over the lesser of the estimated useful lives of the assets or the terms of the related leases. The costs of additions and improvements are capitalized, and repairs and maintenance costs are charged to operations in the period incurred. Upon retirement or disposition of property and equipment, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the statement of operations for that period.
Leases	Leases In accordance with Accounting Standards Codification (ASC) 842, Leases, effective January 1, 2019, the Company determines if an arrangement contains a lease at inception. Right-of-use (ROU) assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from that lease. For leases with a term greater than 12 months, ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The lease term includes the option to extend the lease when it is reasonably certain the Company will exercise that option. When available, the Company uses the rate implicit in the lease to discount lease payments to present value. In the case the implicit rate is not available, the Company uses its incremental borrowing rate based on information available at the lease commencement date, including publicly available data for instruments with similar characteristics, to determine the present value of lease payments. The Company does not combine lease and non-lease elements for office leases. For existing office leases as of January 1, 2019, executory costs are excluded from lease expense, which is consistent with the Company's accounting under ASC 840, Leases. For all office leases entered into after January 1, 2019, executory costs are allocated between lease and non-lease elements based upon their relative stand-alone prices.
Accounts Payable and Accrued Liabilities	Accounts Payable and Accrued Liabilities The Company’s management is required to estimate accrued liabilities as part of the process of preparing financial statements. The estimation of accrued liabilities involves identifying services that have been performed on the Company’s behalf, and then estimating the level of service performed and the associated cost incurred for such services as of each balance sheet date in the financial statements. Accrued liabilities include research and development expenses, such as accrued costs under contracts with clinical monitors, data management organizations and investigators in conjunction with clinical trials, fees to contract manufacturers in conjunction with the production of clinical materials, consulting and professional fees, such as lawyers and fees for marketing and other commercialization activities, accrued compensation and employee benefits, such as accrued bonus, royalties payable under licensing agreements, and other accrued fees. Pursuant to management’s assessment of the services that have been performed on clinical trials and other contracts, the Company recognizes these expenses as the services are provided. Such management assessments include, but are not limited to: (i) an evaluation by the project manager of the work that has been completed during the period, (ii) measurement of progress prepared internally and/or provided by the third-party service provider, (iii) analyses of data that justify the progress, and (iv) management’s judgment. In the event that the Company does not identify certain costs that have begun to be incurred or the Company under- or over-estimates the level of services performed or the costs of such services, the Company’s reported expenses for such period would be too low or too high.
Revenue from Net Product Sales	Revenue from Net Product SalesIn accordance with ASC 606, Revenue from Contracts with Customers (ASC 606), which the Company adopted January 1, 2018, the Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The Company recognizes revenue when control of the product is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those product sales, which is typically once the product physically arrives at the customer. Sales taxes, value add taxes, and usage-based taxes are excluded from revenues.
Major Customers	HETLIOZ® is available in the United States (U.S.) for distribution through a limited number of specialty pharmacies, and is not available in retail pharmacies. Specialty pharmacy customers include Diplomat Pharmacy, Inc. (a subsidiary of UnitedHealth Group) and Accredo (a subsidiary of Express Scripts). Fanapt® is available in the U.S. for distribution through a limited number of wholesalers and is available in retail pharmacies. Wholesaler customers include Cardinal Health, Inc., AmerisourceBergen Drug Corporation, and McKesson Corporation. The Company invoices and records revenue when its customers, specialty pharmacies and wholesalers, receive product from the third-party logistics warehouse, which is the point at which control is transferred to the customer. Revenues and accounts receivable are concentrated with these customers. Outside the U.S., the Company sells HETLIOZ® in Germany and has a distribution agreement for the commercialization of Fanapt® in Israel. Receivables are carried at transaction price net of allowance for credit losses. Allowance for credit losses is measured using historical loss rates based on the aging of receivables and incorporating current conditions and forward-looking estimates.
Reserves for Variable Consideration	The transaction price is determined based upon the consideration to which the Company will be entitled in exchange for transferring product to the customer. The Company’s product sales are recorded net of applicable product revenue allowances for which reserves are established and include discounts, rebates, chargebacks, service fees, co-pay assistance and product returns that are applicable for various government and commercial payors. The Company estimates the amount of variable consideration that should be included in the transaction price utilizing the most likely amount method and updates its estimate at each reporting date. Variable consideration is included in the transaction price if, in the Company’s judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Allowances for rebates, chargebacks and co-pay assistance are based upon the insurance benefits of the end customer, which are estimated using historical activity and, where available, actual and pending prescriptions for which the Company has validated the insurance benefits. Reserves for variable consideration are classified as product revenue allowances on the Consolidated Balance Sheets, with the exception of prompt-pay discounts that are classified as reductions of accounts receivable. The reserve for product returns for which the product may not be returned for a period of greater than one year from the balance sheet date is included as a component of other non-current liabilities in the Consolidated Balance Sheets. Uncertainties related to variable consideration are generally resolved in the quarter subsequent to period end, with the exception of Medicaid rebates, which are dependent upon the timing of when states submit reimbursement claims, and product returns that are resolved during the product expiry period specified in the customer contract. The Company currently records sales allowances for the following: •Prompt-pay: Specialty pharmacies and wholesalers are offered discounts for prompt payment. The Company expects that the specialty pharmacies and wholesalers will earn prompt payment discounts and, therefore, deducts the full amount of these discounts from total product sales when revenues are recognized. •Rebates: Allowances for rebates include mandated discounts under the Medicaid Drug Rebate Program as well as contracted rebate programs with other payors. Rebate amounts owed after the final dispensing of the product to a benefit plan participant are based upon contractual agreements or legal requirements with public sector benefit providers, such as Medicaid. The allowance for rebates is based on statutory or contracted discount rates and estimated patient utilization. •Chargebacks: Chargebacks are discounts that occur when contracted indirect customers purchase directly from specialty pharmacies and wholesalers. Contracted indirect customers, which currently consist primarily of Public Health Service institutions and federal government entities purchasing via the Federal Supply Schedule, generally purchase the product at a discounted price. The specialty pharmacy or wholesaler, in turn, charges back the difference between the price initially paid by the specialty pharmacy or wholesaler and the discounted price paid to the specialty pharmacy or wholesaler by the contracted customer. •Medicare Part D Coverage Gap: The Medicare Part D prescription drug benefit requires manufacturers to fund approximately 70% of the Medicare Part D insurance coverage gap for prescription drugs sold to eligible patients for applicable drugs. Vanda accounts for the Medicare Part D coverage gap using a point of sale model. Estimates for expected Medicare Part D coverage gap are based in part on historical activity and, where available, actual and pending prescriptions when the Company has validated the insurance benefits. •Service Fees: The Company receives sales order management, data and distribution services from certain customers. These fees are based on contracted terms and are known amounts. The Company accrues service fees at the time of revenue recognition, resulting in a reduction of product sales and the recognition of an accrued liability, unless it is a payment for a distinct good or service from the customer in which case the fair value of those distinct goods or services are recorded as selling, general and administrative expense. •Co-payment Assistance: Patients who have commercial insurance and meet certain eligibility requirements may receive co-payment assistance. Co-pay assistance utilization is based on information provided by the Company’s third-party administrator. •Product Returns: The Company generally offers direct customers a limited right to return as contractually defined with its customers. The Company considers several factors in the estimation process, including expiration dates of product shipped to customers, inventory levels within the distribution channel, product shelf life, historical return activity, including activity for product sold for which the return period has past, prescription trends and other relevant factors. The Company does not expect returned goods to be resalable. There was no right of return asset as of December 31, 2020 or 2019.
Cost of Goods Sold	Cost of Goods Sold Cost of goods sold includes royalties payable, the cost of inventory sold, costs to write down inventory to net realizable value, manufacturing and supply chain costs and product shipping and handling costs related to sales of HETLIOZ® and Fanapt® to the Company’s distribution partners.
Research and Development Expenses	Research and Development Expenses Research and development expenses consist primarily of fees for services provided by third parties in connection with the clinical trials, costs of contract manufacturing services, milestone payments, costs of materials used in clinical trials and research and development, costs for regulatory consultants and filings, depreciation of capital resources used to develop products, related facilities costs, and salaries, other employee-related costs and stock-based compensation for research and development personnel. The Company expenses research and development costs as they are incurred for products in the development stage, including manufacturing costs and milestone payments made under license agreements prior to FDA approval. Upon and subsequent to FDA approval, manufacturing and milestone payments related to license agreements are capitalized. Milestone payments are accrued when it is deemed probable that the milestone event will be achieved. Costs related to the acquisition of intellectual property are expensed as incurred if the underlying technology is developed in connection with the Company’s research and development efforts and has no alternative future use.
Selling, General and Administrative Expenses	Selling, General and Administrative Expenses Selling, general and administrative expenses consist of salaries, stock-based compensation, facilities and third-party expenses. Selling, general and administrative expenses are associated with the activities of the corporate, finance, accounting, information technology, business development, commercial support, trade and distribution, sales, marketing, legal, medical affairs and human resource functions. Additionally, selling, general and administrative expenses included an estimate for the annual Affordable Care Act fee.
Stock-Based Compensation	Stock-Based Compensation Compensation costs for all stock-based awards to employees and directors are measured based on the grant date fair value of those awards and recognized over the period during which the employee or director is required to perform service in exchange for the award. The Company recognizes the expense over the award’s vesting period. The fair value of stock options granted and restricted stock units (RSUs) awarded are amortized using the straight-line method. As stock-based compensation expense recognized in the Consolidated Statements of Operations is based on awards ultimately expected to vest, it has been reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.
Advertising Expense	Advertising Expense The Company expenses the costs of advertising, including branded promotional expenses, as incurred. Branded advertising expenses, recorded in selling, general and administrative expenses, were $12.6 million, $3.2 million and $0.9 million for the years ended December 31, 2020, 2019 and 2018, respectively.
Foreign Currency	Foreign Currency The reporting currency of the Company is the U.S. dollar. The functional currency of the Company’s international subsidiaries is the local currency. Assets and liabilities denominated in foreign currencies, including intercompany balances for which settlement is anticipated in the foreseeable future, are translated at exchange rates in effect at the balance sheet date. Foreign currency equity balances are translated at historical rates. Revenues and expenses denominated in foreign currencies are translated at average exchange rates for the respective periods. Foreign currency translation adjustments are recorded in accumulated other comprehensive income. Transactions denominated in currencies other than subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in the Consolidated Balance Sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions.
Income Taxes	Income TaxesThe Company accounts for income taxes using the asset and liability method. Under the asset and liability method, current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Tax rate changes are reflected in income during the period such changes are enacted. Changes in ownership may limit the amount of net operating loss (NOL) carryforwards that can be utilized in the future to offset taxable income. Tax benefits are recognized from an uncertain tax position only if it is more likely than not that the position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefit recognized in the financial statements for a particular tax position is based on the largest benefit that is more likely than not to be realized upon settlement.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes, which clarifies and simplifies certain aspects of the accounting for income taxes. The standard is effective for years beginning after December 15, 2020, and interim periods within annual periods beginning after December 15, 2020. The adoption of this standard on January 1, 2021 is not expected to have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses, which changed the impairment model for most financial assets and certain other financial instruments. The standard requires the use of a forward-looking “expected loss” model for instruments measured at amortized cost that generally will result in the earlier recognition of allowances for losses. The standard is effective for years beginning after December 15, 2019, and interim periods within annual periods beginning after December 15, 2019. The adoption of this standard on January 1, 2020 did not have a material impact on the Company's consolidated financial results.
Earnings per Share	Earnings per ShareBasic earnings per share (EPS) is calculated by dividing the net income by the weighted average number of shares of common stock outstanding. Diluted EPS is computed by dividing the net income by the weighted average number of shares of common stock outstanding, plus potential outstanding common stock for the period. Potential outstanding common stock includes stock options and shares underlying RSUs, but only to the extent that their inclusion is dilutive.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Reconciliation of Cash, Cash Equivalents and Restricted Cash


	December 31,
(in thousands)	2020		2019
Cash and cash equivalents	$	61,031	$	45,072
Restricted cash included in:
Prepaid expenses and other current assets	57		—
Non-current inventory and other	525		578
Total cash, cash equivalents and restricted cash	$	61,613	$	45,650

Net Product Sales

The Company’s net product sales consist of sales of HETLIOZ® and Fanapt®. Net sales by product for the years ended December 31, 2020, 2019 and 2018 were as follows:


	Year Ended December 31,
(in thousands)	2020		2019		2018
HETLIOZ® net product sales	$	160,686	$	142,980	$	115,835
Fanapt® net product sales	87,482		84,208		77,283
Total net product sales	$	248,168	$	227,188	$	193,118

Schedule of Major Customers that Represented More Than 10% of Total Revenues

The following table presents each major customer that represented more than 10% of total revenues for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
Percent of Net Product Sales	2020		2019		2018
Distributor A	43	%	38	%	37	%
Distributor B	19	%	23	%	17	%
Distributor C	12	%	12	%	14	%
Distributor D	11	%	12	%	12	%
Distributor E	10	%	11	%	12	%

Schedule of Major Customers that Represented More Than 10% of Accounts Receivable, Net

The following table presents each major customer that represented more than 10% of accounts receivable, net, as of December 31, 2020 and 2019:


	December 31,
Percent of Accounts Receivable, Net	2020		2019
Distributor A	22	%	21	%
Distributor B	13	%	21	%
Distributor C	22	%	18	%
Distributor D	20	%	16	%
Distributor E	13	%	18	%

Summary of Product Return Allowance

The following table summarizes activity for product returns as of and for the years ended December 31, 2020, 2019 and 2018, all of which relates to sales of Fanapt®:


(in thousands)	Reserve for Product Returns
Balances at December 31, 2017	$	4,119
Additions	2,684
Credits/payments	(1,616)
Balances at December 31, 2018	5,187
Additions	3,138
Credits/payments	(2,205)
Balances at December 31, 2019	6,120
Additions	3,844
Credits/payments	(5,266)
Balances at December 31, 2020	$	4,698

Marketable Securities (Tables)

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Summary of Available-for-Sale Marketable Securities

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2020, which all have contractual maturities of less than two years:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
U.S. Treasury and government agencies	$	165,966	$	129	$	(3)	$	166,092
Corporate debt	140,538		87		(8)		140,617

Total marketable securities	$	306,504	$	216	$	(11)	$	306,709

The following is a summary of the Company’s available-for-sale marketable securities as of December 31, 2019, which all have contractual maturities of less than two years:


(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Market Value
U.S. Treasury and government agencies	$	88,535	$	68	$	(2)	$	88,601
Corporate debt	129,860		196		(1)		130,055
Asset-backed securities	48,355		49		(3)		48,401
Total marketable securities	$	266,750	$	313	$	(6)	$	267,057

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

Assets Measured at Fair Value on Recurring Basis

The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2020, as follows:


			Fair Value Measurement as of December 31, 2020 Using
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury and government agencies	$	166,092	$	166,092	$	—	$	—
Corporate debt	140,617		—		140,617		—

Total assets measured at fair value	$	306,709	$	166,092	$	140,617	$	—

The Company held certain assets that are required to be measured at fair value on a recurring basis as of December 31, 2019, as follows:


			Fair Value Measurement as of December 31, 2019 Using
(in thousands)	Total Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
U.S. Treasury and government agencies	$	88,601	$	88,601	$	—	$	—
Corporate debt	137,025		—		137,025		—
Asset-backed securities	48,401		—		48,401		—
Total assets measured at fair value	$	274,027	$	88,601	$	185,426	$	—

Inventory (Tables)

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

Inventory

Inventory consisted of the following as of December 31, 2020 and 2019:


(in thousands)	December 31, 2020		December 31, 2019
Current assets
Work-in-process	$	66	$	—
Finished goods	1,214		1,140
Total inventory, current	$	1,280	$	1,140
Non-Current assets
Raw materials	$	744	$	659
Work-in-process	4,045		1,109
Finished goods	302		1,056
Total inventory, non-current	5,091		2,824
Total inventory	$	6,371	$	3,964

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

Summary of Property and Equipment-at Cost

The following is a summary of the Company’s property and equipment, at cost, as of December 31, 2020 and 2019:


(in thousands)	Estimated Useful Life (Years)	December 31, 2020		December 31, 2019
Computer and other equipment	3	$	5,212	$	4,398
Furniture and fixtures	5 - 7	1,495		1,491
Leasehold improvements	5 - 11	5,457		4,587
Total property and equipment, gross		12,164		10,476
Accumulated depreciation and amortization		(8,028)		(6,612)
Total property and equipment, net		$	4,136	$	3,864

Leases (Tables)

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

Schedule of Lease Assets and Liabilities

The following is a summary of the Company’s ROU assets and operating lease liabilities as of December 31, 2020 and 2019:


(in thousands)	Classification on the Balance Sheet	December 31, 2020			December 31, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	10,459		$	11,180

Liabilities
Operating lease current liabilities	Accounts payable and accrued liabilities	$	2,117		$	2,147
Operating lease non-current liabilities	Operating lease non-current liabilities	11,497			12,455
Total lease liabilities		$	13,614		$	14,602

Weighted average remaining lease term		7.1			8.1
Weighted average discount rate(1)		8.1		%	8.1		%

(1)Upon adoption of the new lease standard, discount rates used for existing leases were established at January 1, 2019.

Reconciliation of Future Cash Obligations to Operating Lease Liabilities

The table below reconciles the Company's future cash obligations to operating lease liabilities recorded on the balance sheet as of December 31, 2020:



(in thousands)	Operating Leases
2021	$	2,290
2022	2,611
2023	2,462
2024	2,488
2025	2,557
Thereafter	5,624
Total minimum lease payments	18,032
Less: amount of lease payments representing interest	(4,418)
Present value of future minimum lease payments	13,614
Less: current obligations under leases	(2,117)
Operating lease non-current liabilities	$	11,497

Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets

The following is a summary of the Company’s intangible assets as of December 31, 2020:


		December 31, 2020
(in thousands)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
HETLIOZ®	July 2035	$	33,000	$	11,441	$	21,559

The following is a summary of the Company’s intangible assets as of December 31, 2019:


		December 31, 2019
(in thousands)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
HETLIOZ®	July 2035	$	33,000	$	9,963	$	23,037

Summary of Amortization Expense

Amortization expense for the years ended December 31, 2020, 2019 and 2018 was as follows:


	Year Ended December 31,
(in thousands)	2020		2019		2018
HETLIOZ®	$	1,478	$	1,505	$	1,527

Summary of Future Intangible Asset Amortization

The following is a summary of the future intangible asset amortization schedule as of December 31, 2020:


(in thousands)	Total		2021		2022		2023		2024		2025		Thereafter
HETLIOZ®	$	21,559	$	1,478	$	1,478	$	1,478	$	1,478	$	1,478	$	14,169

Accounts Payable and Accrued Liabilities (Tables)

12 Months Ended

Dec. 31, 2020

Payables and Accruals [Abstract]

Summary of Accounts Payable and Accrued Liabilities

The following is a summary of the Company’s accounts payable and accrued liabilities as of December 31, 2020 and 2019:


(in thousands)	December 31, 2020		December 31, 2019
Compensation and employee benefits	$	10,951	$	6,597
Research and development expenses	6,173		5,893
Royalties payable	5,817		5,904
Consulting and other professional fees	5,052		5,376
Operating lease liabilities	2,117		2,147
Milestone obligations under license agreements	350		—
Other	1,049		1,673
Total accounts payable and accrued liabilities	$	31,509	$	27,590

Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

Summary of Accumulated Balances Related to Each Component of Other Comprehensive Income (Loss)

The accumulated balances related to each component of other comprehensive income (loss), net of taxes, were as follows for the years ended December 31, 2020 and 2019:


(in thousands)	December 31, 2020		December 31, 2019
Foreign currency translation	$	81	$	13
Unrealized gain on marketable securities	158		236
Accumulated other comprehensive income	$	239	$	249

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Summary of Option Activity

A summary of option activity under the Plans for the years ended December 31, 2020, 2019, and 2018 is as follows:


(in thousands, except for share and per share amounts)	Number of Shares	Weighted Average Exercise Price at Grant Date		Weighted Average Remaining Term (Years)	Aggregate Intrinsic Value
Outstanding at December 31, 2017	4,719,784	$	10.03	5.63	$	24,421
Granted	567,500	19.22
Forfeited	(232,527)	13.99

Exercised	(685,715)	9.12			5,945
Outstanding at December 31, 2018	4,369,042	11.15		5.28	65,438
Granted	687,500	18.38
Forfeited	(53)	7.94
Expired	(15,000)	14.78
Exercised	(546,344)	11.47			2,482
Outstanding at December 31, 2019	4,495,145	12.21		5.58	22,148
Granted	627,500	11.27
Forfeited	(225,000)	18.83
Expired	(557,604)	14.21
Exercised	(733,223)	7.68			2,868
Outstanding at December 31, 2020	3,606,818	12.24		5.76	8,511
Exercisable at December 31, 2020	2,556,394	11.52		4.53	7,302
Vested and expected to vest at December 31, 2020	3,482,804	12.22		5.64	8,337

Summary of RSU Activity

A summary of RSU activity for the Plans for the years ended December 31, 2020, 2019, and 2018 is as follows:


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested at December 31, 2017	1,357,838	$	12.72
Granted	714,086	18.93
Forfeited	(229,603)	15.19
Vested	(528,745)	12.69
Unvested at December 31, 2018	1,313,576	15.68
Granted	937,328	19.46
Forfeited	(75,444)	18.93
Vested	(526,175)	14.54
Unvested at December 31, 2019	1,649,285	18.04
Granted	832,162	11.28
Forfeited	(260,127)	17.35
Vested	(581,757)	16.54
Unvested at December 31, 2020	1,639,563	15.26

Stock-Based Compensation Expense

Stock-based compensation expense recognized for the years ended December 31, 2020, 2019 and 2018 comprised of the following:


	Year Ended December 31,
(in thousands)	2020		2019		2018
Research and development	$	3,804	$	3,207	$	1,290
Selling, general and administrative	9,556		10,251		10,376
Total stock-based compensation expense	$	13,360	$	13,458	$	11,666

Black-Scholes-Merton Option Pricing Model for Employee and Director Stock Options Granted

Assumptions used in the Black-Scholes-Merton option pricing model for employee and director stock options granted during the years ended December 31, 2020, 2019 and 2018 were as follows:


	Year Ended December 31,
	2020		2019		2018
Expected dividend yield	—	%	—	%	—	%
Weighted average expected volatility	51	%	58	%	58	%
Weighted average expected term (years)	6.07		5.95		5.90
Weighted average risk-free rate	1.14	%	2.26	%	2.68	%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Summary of the Domestic and Foreign Components of Income Before Income Taxes

The following is a summary of the domestic and foreign components of income before income taxes for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
(in thousands)	2020		2019		2018
Domestic	$	31,667	$	28,794	$	25,123
Foreign	(12)		234		223
Total income before income taxes	$	31,655	$	29,028	$	25,346

Summary of Provision (Benefit) for Income Taxes

The following is a summary of the provision (benefit) for income taxes for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
(in thousands)	2020		2019		2018
Current:
Federal	$	—	$	—	$	—
State	2,061		1,161		53
Foreign	68		81		99
Deferred:
Federal	6,076		(85,624)		—
State	155		(2,127)		—
Foreign	(42)		(16)		(14)
Provision (benefit) for income taxes	$	8,318	$	(86,525)	$	138

Reconciliation Between Statutory Tax Rate and Effective Tax Rate

The following is reconciliation between the federal statutory tax rate and the Company’s effective tax rate for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
	2020		2019		2018
Federal tax at statutory rate	21.0	%	21.0	%	21.0	%
State taxes	2.6	%	1.8	%	1.7	%
Change in valuation allowance (1)	(3.5)	%	(357.6)	%	(16.4)	%
Research and development credit (2)	(5.4)	%	(10.9)	%	(9.1)	%
Orphan drug credit (2)	(1.3)	%	17.1	%	(2.7)	%
Section 162(m) limitation	1.7	%	2.7	%	3.1	%
Other tax rate changes	0.2	%	(0.5)	%	(0.7)	%
Other changes in state deferred taxes (3)	—	%	—	%	5.9	%
Uncertain tax positions (2)	4.7	%	26.3	%	—	%
Stock-based compensation	5.1	%	(1.0)	%	(3.9)	%
Other items	1.2	%	3.0	%	1.6	%
Effective tax rate	26.3	%	(298.1)	%	0.5	%

(3)Includes adjustments to state deferred taxes based on changes to filing jurisdictions.

Components of Net Deferred Tax Assets and Related Valuation Allowance


(in thousands)	December 31, 2020		December 31, 2019
Deferred tax assets:
Net operating loss carryforwards	$	43,623	$	52,034
Stock-based compensation	4,653		5,298
Accrued expenses	2,429		1,266
Allowance for returns and credit losses	1,169		1,468
Research and development and orphan drug credit carryforwards	37,737		36,041

Other	3,279		4,572
Total deferred tax assets	92,890		100,679
Deferred tax liabilities:
Intangible assets	(1,911)		(1,994)
Other	(2,412)		(2,850)
Total deferred tax liabilities	(4,323)		(4,844)
Deferred tax assets, net	88,567		95,835
Less: Valuation allowance	7,051		8,155
Net deferred tax assets	$	81,516	$	87,680

Summary of Changes in Tax Valuation Allowance

The following is a summary of changes in the Company’s tax valuation allowance for the years ended December 31, 2020, 2019 and 2018:


(in thousands)	Balance at Beginning of Year		Additions		Reductions		Balance at End of Year
Year Ended:
December 31, 2020	$	8,155	$	—	$	(1,104)	$	7,051
December 31, 2019	111,950		—		(103,795)		8,155
December 31, 2018	116,110		4,036		(8,196)		111,950

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows:


	Year Ended December 31,
(in thousands)	2020		2019		2018
Unrecognized tax benefits at the beginning of the year	$	9,741	$	—	$	—
Increases (decreases) related to prior year tax positions	(121)		8,223		—
Increases related to current year tax positions	1,613		1,518		—
Unrecognized tax benefits at the end of the year	$	11,233	$	9,741	$	—

Earnings per Share (Tables)

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

Basic and Diluted Net Income Per Share of Common Stock

The following table presents the calculation of basic and diluted net income per share of common stock for the years ended December 31, 2020, 2019 and 2018:


	Year Ended December 31,
(in thousands, except for share and per share amounts)	2020		2019		2018
Numerator:
Net income	$	23,337	$	115,553	$	25,208
Denominator:
Weighted average shares outstanding, basic	54,427,683		53,137,562		50,859,947
Effect of dilutive securities	763,119		1,709,498		2,185,310
Weighted average shares outstanding, diluted	55,190,802		54,847,060		53,045,257
Net income per share, basic and diluted:
Basic	$	0.43	$	2.17	$	0.50
Diluted	$	0.42	$	2.11	$	0.48
Antidilutive securities excluded from calculations of diluted net income per share	3,407,409		1,932,024		903,265

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data

The following is a summary of quarterly financial data for the years ended December 31, 2020 and 2019:


(in thousands, except for per share amounts)	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Year Ended December 31, 2020
Revenues	$	58,000	$	62,207	$	60,308	$	67,653
Gross profit (1)	52,423		55,991		54,041		60,871
Income (loss) from operations	(125)		9,171		7,742		10,451
Net income	486		8,714		5,947		8,190
Net income per share, basic	$	0.01	$	0.16	$	0.11	$	0.15
Net income per share, diluted	$	0.01	$	0.16	$	0.11	$	0.15
Year Ended December 31, 2019
Revenues	$	47,713	$	59,060	$	59,485	$	60,930
Gross profit (1)	42,220		52,313		52,327		54,335
Income (loss) from operations	(2,087)		9,895		10,759		4,243
Net income (loss)	(612)		11,526		100,423		4,216
Net income (loss) per share, basic	$	(0.01)	$	0.22	$	1.88	$	0.08
Net income (loss) per share, diluted	$	(0.01)	$	0.21	$	1.84	$	0.08

(1)Gross profit includes revenues less cost of goods sold excluding amortization, and less intangible asset amortization.

Business Organization and Presentation (Detail)	12 Months Ended
Business Organization and Presentation (Detail)	Dec. 31, 2020 segment product
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments \| segment	1
Number of products in portfolio \| product	2

Summary of Significant Accounting Policies - Reconciliation Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash and Cash Equivalents [Line Items]
Cash and cash equivalents	$ 61,031	$ 45,072
Restricted cash included in:
Total cash, cash equivalents and restricted cash	61,613	45,650	$ 61,749	$ 34,335
Prepaid expenses and other current assets
Restricted cash included in:
Restricted cash	57	0
Non-current inventory and other
Restricted cash included in:
Restricted cash	$ 525	$ 578

Summary of Significant Accounting Policies - Net Sales by Product (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Revenue from External Customer [Line Items]
Net product sales	$ 248,168	$ 227,188	$ 193,118
HETLIOZ®
Revenue from External Customer [Line Items]
Net product sales	160,686	142,980	115,835
Fanapt®
Revenue from External Customer [Line Items]
Net product sales	$ 87,482	$ 84,208	$ 77,283

Summary of Significant Accounting Policies - Schedule of Major Customers that Represented More Than 10% of Total Revenues (Detail) - Customer Concentration Risk - Sales Revenue, Net	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Distributor A
Revenue, Major Customer [Line Items]
Concentration risk, percentage	43.00%	38.00%	37.00%
Distributor B
Revenue, Major Customer [Line Items]
Concentration risk, percentage	19.00%	23.00%	17.00%
Distributor C
Revenue, Major Customer [Line Items]
Concentration risk, percentage	12.00%	12.00%	14.00%
Distributor E
Revenue, Major Customer [Line Items]
Concentration risk, percentage	10.00%	11.00%	12.00%
Distributor D
Revenue, Major Customer [Line Items]
Concentration risk, percentage	11.00%	12.00%	12.00%

Summary of Significant Accounting Policies - Schedule of Major Customers that Represented More Than 10% of Accounts Receivable, Net (Detail) - Credit Concentration Risk - Accounts Receivable	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Distributor A
Concentration Risk [Line Items]
Concentration risk, percentage	22.00%	21.00%
Distributor B
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%	21.00%
Distributor C
Concentration Risk [Line Items]
Concentration risk, percentage	22.00%	18.00%
Distributor D
Concentration Risk [Line Items]
Concentration risk, percentage	20.00%	16.00%
Distributor E
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%	18.00%

Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Accounting Policies [Abstract]
Percentage of insurance coverage gap allocated for prescription drugs under Medicare Part D	70.00%
Advertising expenses \| $	$ 12.6	$ 3.2	$ 0.9
Number of reportable segments \| segment	1

Summary of Significant Accounting Policies - Summary of Product Return Allowance (Detail) - Reserve for Product Returns - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ 6,120	$ 5,187	$ 4,119
Additions	3,844	3,138	2,684
Credits/payments	(5,266)	(2,205)	(1,616)
Ending balance	$ 4,698	$ 6,120	$ 5,187

Marketable Securities - Available-For-Sale Marketable Securities (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 306,504	$ 266,750
Gross Unrealized Gains	216	313
Gross Unrealized Losses	(11)	(6)
Fair Market Value	306,709	267,057
U.S. Treasury and government agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	165,966	88,535
Gross Unrealized Gains	129	68
Gross Unrealized Losses	(3)	(2)
Fair Market Value	166,092	88,601
Corporate debt
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	140,538	129,860
Gross Unrealized Gains	87	196
Gross Unrealized Losses	(8)	(1)
Fair Market Value	$ 140,617	130,055
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost		48,355
Gross Unrealized Gains		49
Gross Unrealized Losses		(3)
Fair Market Value		$ 48,401

Inventory (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets
Work-in-process	$ 66	$ 0
Finished goods	1,214	1,140
Total inventory, current	1,280	1,140
Non-Current assets
Raw materials	744	659
Work-in-process	4,045	1,109
Finished goods	302	1,056
Total inventory, non-current	5,091	2,824
Total inventory	$ 6,371	$ 3,964

Property and Equipment - Property and Equipment-at Cost (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 12,164	$ 10,476
Accumulated depreciation and amortization	(8,028)	(6,612)
Total property and equipment, net	$ 4,136	3,864
Computer and other equipment
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	3 years
Total property and equipment, gross	$ 5,212	4,398
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 1,495	1,491
Furniture and fixtures \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Furniture and fixtures \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	7 years
Leasehold improvements
Property, Plant and Equipment [Line Items]
Total property and equipment, gross	$ 5,457	$ 4,587
Leasehold improvements \| Minimum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	5 years
Leasehold improvements \| Maximum
Property, Plant and Equipment [Line Items]
Estimated Useful Life (Years)	11 years

Property and Equipment - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 1,386	$ 1,387	$ 1,429

Leases - Additional Information (Details) $ in Millions	12 Months Ended
Leases - Additional Information (Details) $ in Millions	Dec. 31, 2020 USD ($) ft²	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease cost	$ 2.3	$ 2.3
Short-term lease cost	0.4	0.4
Non-lease component expense	1.5	1.4
Rent expense			$ 3.6
Operating lease, payments	$ 2.6	$ 2.5
Washington, D.C. Lease
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Leased square footage \| ft²	33,534
Renewal term of lease agreement	5 years
London Lease
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Leased square footage \| ft²	2,880
Renewal term of lease agreement	3 years
Sublease \| Washington, D.C. Lease
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Leased square footage \| ft²	9,928

Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Assets
Operating lease assets	$ 10,459	$ 11,180
Liabilities
Operating lease current liabilities	2,117	2,147
Operating lease non-current liabilities	11,497	12,455
Total lease liabilities	$ 13,614	$ 14,602
Weighted average remaining lease term	7 years 1 month 6 days	8 years 1 month 6 days
Weighted average discount rate	8.10%	8.10%

Leases - Maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Operating Leases
2021	$ 2,290
2022	2,611
2023	2,462
2024	2,488
2025	2,557
Thereafter	5,624
Total minimum lease payments	18,032
Less: amount of lease payments representing interest	(4,418)
Total lease liabilities	13,614	$ 14,602
Less: current obligations under leases	(2,117)	(2,147)
Operating lease non-current liabilities	$ 11,497	$ 12,455

Intangible Assets - HETLIOZ - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended	12 Months Ended			203 Months Ended
	Apr. 30, 2018	Jan. 31, 2014	Mar. 31, 2015	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]
Acquisition of intangible assets				$ 0	$ 0	$ 25,000
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Acquisition of intangible assets		$ 8,000				$ 25,000	$ 37,500
Cumulative worldwide sales milestone	$ 250,000
Intangible assets capitalized			$ 25,000				$ 33,000

Intangible Assets - Fanapt - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019
Fanapt®
Finite-Lived Intangible Assets [Line Items]
Fully amortized intangible assets	$ 27.9	$ 27.9

Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 21,559	$ 23,037
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	33,000	33,000
Accumulated Amortization	11,441	9,963
Net Carrying Amount	$ 21,559	$ 23,037

Intangible Assets - Summary of Amortization Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	$ 1,478	$ 1,505	$ 1,527
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Intangible asset amortization	$ 1,478	$ 1,505	$ 1,527

Intangible Assets - Summary of Future Intangible Asset Amortization (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	$ 21,559	$ 23,037
HETLIOZ®
Finite-Lived Intangible Assets [Line Items]
Net Carrying Amount	21,559	$ 23,037
2021	1,478
2022	1,478
2023	1,478
2024	1,478
2025	1,478
Thereafter	$ 14,169

Accounts Payable and Accrued Liabilities (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Compensation and employee benefits	$ 10,951	$ 6,597
Research and development expenses	6,173	5,893
Royalties payable	5,817	5,904
Consulting and other professional fees	5,052	5,376
Operating lease liabilities	2,117	2,147
Milestone obligations under license agreements	350	0
Other	1,049	1,673
Total accounts payable and accrued liabilities	$ 31,509	$ 27,590

Commitments and Contingencies - HETLIOZ - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended	12 Months Ended			203 Months Ended
	Jan. 31, 2014	Mar. 31, 2015	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2020
HETLIOZ
Acquisition of intangible assets			$ 0	$ 0	$ 25,000
HETLIOZ®
HETLIOZ
Acquisition of intangible assets	$ 8,000				$ 25,000	$ 37,500
Intangible assets capitalized		$ 25,000				$ 33,000
Royalty payment period			10 years
Royalty payable percentage on net sales			10.00%
Percentage of future sublicense fees payable to third-party			mid-twenties

Commitments and Contingencies - Fanapt - Additional Information (Detail) - Fanapt®	12 Months Ended	60 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Fanapt
Royalty payable percentage on net sales	6.00%
Royalty payment period	10 years
November 16,2016 through December 31,2019
Fanapt
Royalty payable percentage on net sales		3.00%

Commitments and Contingencies - Tradipitant - Additional Information (Detail) - Tradipitant - USD ($) $ in Millions	12 Months Ended	105 Months Ended
	Dec. 31, 2020	Dec. 31, 2020
Commitments and Contingencies [Line Items]
Future percentage of royalty payments based net sales	low double digits
Development and milestone payments to third party		$ 3.0
Pre-NDA Approval Milestones
Commitments and Contingencies [Line Items]
Possible future milestone payment	$ 2.0
Sales Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment	80.0
U.S. \| Regulatory Approval Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment	10.0
E.U. \| Regulatory Approval Milestone
Commitments and Contingencies [Line Items]
Possible future milestone payment	$ 5.0

Commitments and Contingencies - CFTR Activators and Inhibitors - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended	46 Months Ended
	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2020	Dec. 31, 2019
CFTR activators and inhibitors
Milestone obligations under license agreements		$ 350	$ 350	$ 0
CFTR Activators and Inhibitors
CFTR activators and inhibitors
Tiered royalties payable on future net sales		single-digit
Development and milestone payments to third party			1,200
Regulatory Approval Milestone \| CFTR Activators and Inhibitors
CFTR activators and inhibitors
Possible future milestone payments		$ 12,200
Future Regulatory Approval And Sales Milestones \| CFTR Activators and Inhibitors
CFTR activators and inhibitors
Possible future milestone payments		33,000
Development And Milestone Payment, Conclusion Of Phase I Study \| CFTR Activators and Inhibitors
CFTR activators and inhibitors
Development and milestone payments to third party	$ 200
Possible future milestone payments		350
Milestone obligations under license agreements		350	$ 350
Maximum \| Development And Milestone Payment, Conclusion Of Phase I Study \| CFTR Activators and Inhibitors
CFTR activators and inhibitors
Possible future milestone payments		$ 1,100

Commitments and Contingencies - VQW-765 - Additional Information (Details)	12 Months Ended
	Dec. 31, 2020
VQW-765
Commitments and Contingencies [Line Items]
Future percentage of royalty payments based net sales	mid-teens

Commitments and Contingencies - Purchase Commitments (Detail)	12 Months Ended
	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Agreements for clinical and marketing services, termination notice period	90 days

Public Offering of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Subsidiary, Sale of Stock [Line Items]
Net proceeds from public offering		$ 0	$ 0	$ 100,870
Public Offering
Subsidiary, Sale of Stock [Line Items]
Public offering of common stock (in shares)	6,325,000
Public offering of common stock (in dollars per shares)	$ 17.00
Net proceeds from public offering	$ 100,900
Over-Allotment Option
Subsidiary, Sale of Stock [Line Items]
Public offering of common stock (in shares)	825,000

Accumulated Other Comprehensive Income - Summary of Accumulated Balances Related to Each Component of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Equity [Abstract]
Foreign currency translation	$ 81	$ 13
Unrealized gain on marketable securities	158	236
Accumulated other comprehensive income	$ 239	$ 249

- Definition

Accumulated adjustment, net of tax, that results from the process of translating subsidiary financial statements and foreign equity investments into the reporting currency from the functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains or losses.

+ References + Details

Stock-Based Compensation - Additional Information (Detail)	12 Months Ended
	Dec. 31, 2020 shares
2006 Plan and 2016 Plan \| Outstanding options and RSUs granted (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares subject to outstanding options and RSUs (in shares)	5,246,381
2016 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of common stock authorized for issuance (in shares)	8,790,000
Number of shares of common stock available for future grant (in shares)	3,991,612

Stock-Based Compensation - Stock Option - Additional Information (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) installment $ / shares	Dec. 31, 2019 USD ($) $ / shares	Dec. 31, 2018 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation option awards contractual term	10 years
Vesting period for subsequent stock options granted to directors	4 years
Portion of initial stock options granted to employees that vests on employee's first anniversary	25.00%
Portion of initial stock options granted to employees that vests ratably over three years after completion of first year of service	75.00%
Number of vesting equal installments \| installment	36
Options granted, weighted average fair value per share (in dollars per share) \| $ / shares	$ 5.53	$ 10.19	$ 10.66
Proceeds from exercise of stock options	$ 5,634	$ 6,264	$ 6,256
Service option awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Full acceleration of vesting, employee or executive officer subject to involuntary termination, period post change of control of the Company	24 months
Unrecognized compensation expenses	$ 6,900
Unrecognized compensation expenses, weighted average period	1 year 2 months 12 days

Stock-Based Compensation - RSU - Additional Information (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($) installment shares	Dec. 31, 2019 shares	Dec. 31, 2018 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting equal installments \| installment	36
Restricted Stock Units (RSU)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of vesting equal installments \| installment	4
Full acceleration of vesting, employee or executive officer subject to involuntary termination, period post change of control of the Company	24 months
Unrecognized compensation expenses related to unvested RSUs \| $	$ 18.3
Unrecognized compensation expenses, weighted average period	1 year 7 months 6 days
Grant date fair value of common stock vested (in shares) \| shares	581,757	526,175	528,745
Grant date fair value of common stock vested \| $	$ 9.6

Stock-Based Compensation - Summary of Option Activity (Detail) - 2006 Plan and 2016 Plan - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Number of Shares
Beginning balance (in shares)	4,495,145	4,369,042	4,719,784
Granted (in shares)	627,500	687,500	567,500
Forfeited (in shares)	(225,000)	(53)	(232,527)
Expired (in shares)	(557,604)	(15,000)
Exercised (in shares)	(733,223)	(546,344)	(685,715)
Ending balance (in shares)	3,606,818	4,495,145	4,369,042	4,719,784
Exercisable at end of period (in shares)	2,556,394
Vested and expected to vest at end of period (in shares)	3,482,804
Weighted Average Exercise Price at Grant Date
Beginning balance (in dollars per share)	$ 12.21	$ 11.15	$ 10.03
Granted (in dollars per share)	11.27	18.38	19.22
Forfeited (in dollars per share)	18.83	7.94	13.99
Expired (in dollars per share)	14.21	14.78
Exercised (in dollars per share)	7.68	11.47	9.12
Ending balance (in dollars per share)	12.24	$ 12.21	$ 11.15	$ 10.03
Exercisable at end of period (in dollars per share)	11.52
Vested and expected to vest at end of period (in dollars per share)	$ 12.22
Weighted Average Remaining Term (Years)
Weighted Average Remaining Term	5 years 9 months 3 days	5 years 6 months 29 days	5 years 3 months 10 days	5 years 7 months 17 days
Exercisable at end of period	4 years 6 months 10 days
Vested and expected to vest at end of period	5 years 7 months 20 days
Aggregate Intrinsic Value
Beginning balance	$ 22,148	$ 65,438	$ 24,421
Exercised	2,868	2,482	5,945
Ending balance	8,511	$ 22,148	$ 65,438	$ 24,421
Exercisable at end of period	7,302
Vested and expected to vest at end of period	$ 8,337

Stock-Based Compensation - Summary of RSU Activity Plan (Detail) - Restricted Stock Units (RSU) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Number of Shares
Beginning balance (in shares)	1,649,285	1,313,576	1,357,838
Granted (in shares)	832,162	937,328	714,086
Forfeited (in shares)	(260,127)	(75,444)	(229,603)
Vested (in shares)	(581,757)	(526,175)	(528,745)
Ending balance (in shares)	1,639,563	1,649,285	1,313,576
Weighted Average Grant Date Fair Value
Beginning balance (in dollars per share)	$ 18.04	$ 15.68	$ 12.72
Granted (in dollars per share)	11.28	19.46	18.93
Forfeited (in dollars per share)	17.35	18.93	15.19
Vested (in dollars per share)	16.54	14.54	12.69
Ending balance (in dollars per share)	$ 15.26	$ 18.04	$ 15.68

Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 13,360	$ 13,458	$ 11,666
Research and development
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	3,804	3,207	1,290
Selling, general and administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 9,556	$ 10,251	$ 10,376

Stock-Based Compensation - Black-Scholes-Merton Option Pricing Model for Stock Options Granted (Detail)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement [Abstract]
Expected dividend yield	0.00%	0.00%	0.00%
Weighted average expected volatility	51.00%	58.00%	58.00%
Weighted average expected term (years)	6 years 25 days	5 years 11 months 12 days	5 years 10 months 24 days
Weighted average risk-free rate	1.14%	2.26%	2.68%

Employee Benefit Plan (Detail) - USD ($) $ in Millions	12 Months Ended
Employee Benefit Plan (Detail) - USD ($) $ in Millions	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Defined contribution plan employer matching percent	50.00%
Defined contribution plan maximum employee contribution percent	6.00%
Defined contribution plan vesting period	4 years
Defined contribution plan matching amount	$ 0.9	$ 0.8	$ 0.9

Income Taxes - Summary of Domestic and Foreign Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Domestic	$ 31,667	$ 28,794	$ 25,123
Foreign	(12)	234	223
Income before income taxes	$ 31,655	$ 29,028	$ 25,346

Income Taxes - Summary of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current:
Federal	$ 0	$ 0	$ 0
State	2,061	1,161	53
Foreign	68	81	99
Deferred:
Federal	6,076	(85,624)	0
State	155	(2,127)	0
Foreign	(42)	(16)	(14)
Provision (benefit) for income taxes	$ 8,318	$ (86,525)	$ 138

Income Taxes - Reconciliation Between Statutory Tax Rate and Effective Tax Rate (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Federal tax at statutory rate	21.00%	21.00%	21.00%
State taxes	2.60%	1.80%	1.70%
Change in valuation allowance	(3.50%)	(357.60%)	(16.40%)
Research and development credit	(5.40%)	(10.90%)	(9.10%)
Orphan drug credit	(1.30%)	17.10%	(2.70%)
Section 162(m) limitation	1.70%	2.70%	3.10%
Other tax rate changes	0.20%	(0.50%)	(0.70%)
Other changes in state deferred taxes	0.00%	0.00%	5.90%
Uncertain tax positions	4.70%	26.30%	0.00%
Stock-based compensation	5.10%	(1.00%)	(3.90%)
Other items	1.20%	3.00%	1.60%
Effective tax rate	26.30%	(298.10%)	0.50%
Income Before Income Taxes, Current Year
Valuation Allowance [Line Items]
Reduction in valuation allowances		$ 7.5
Income Tax Credit Carryforwards and Uncertain Tax Positions
Valuation Allowance [Line Items]
Reduction in valuation allowances		10.7
Estimated Realizability of Deferred Tax Asset
Valuation Allowance [Line Items]
Reduction in valuation allowances		$ 85.6

Income Taxes - Components of Net Deferred Tax Assets and Related Valuation Allowance (Detail) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Net operating loss carryforwards	$ 43,623	$ 52,034
Stock-based compensation	4,653	5,298
Accrued expenses	2,429	1,266
Allowance for returns and credit losses	1,169	1,468
Research and development and orphan drug credit carryforwards	37,737	36,041
Other	3,279	4,572
Total deferred tax assets	92,890	100,679
Deferred tax liabilities:
Intangible assets	(1,911)	(1,994)
Other	(2,412)	(2,850)
Total deferred tax liabilities	(4,323)	(4,844)
Deferred tax assets, net	88,567	95,835
Less: Valuation allowance	7,051	8,155	$ 111,950	$ 116,110
Net deferred tax assets	$ 81,516	$ 87,680

Income Taxes - Valuation Allowance Activity on Deferred Tax Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Deferred Tax Assets, Valuation Allowance [Roll Forward]
Balance at Beginning of Year	$ 8,155	$ 111,950	$ 116,110
Additions	0	0	4,036
Reductions	(1,104)	(103,795)	(8,196)
Balance at End of Year	$ 7,051	$ 8,155	$ 111,950

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
Net operating loss carryforwards	$ 43,623	$ 52,034
Deferred tax assets related to U.S. federal research and development credits	$ 13,400
Net operating loss carryforwards beginning expiration year	2031
U.S. research and development credit beginning expiration year	2024
Orphan drug credit beginning expiration year	2030
Deferred tax assets relating to U.S. state NOL carryforwards	$ 8,400
Unrecognized tax benefits that would impact effective tax rate	11,200
U.S. Federal
Income Taxes [Line Items]
Net operating loss carryforwards	35,200
Orphan Drug
Income Taxes [Line Items]
Net deferred tax assets	$ 24,400
District of Columbia
Income Taxes [Line Items]
Net operating loss carryforwards beginning expiration year	2032
Other States
Income Taxes [Line Items]
Net operating loss carryforwards beginning expiration year	2029

Income Taxes - Summary of Gross Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits at the beginning of the year	$ 9,741	$ 0	$ 0
Increases (decreases) related to prior year tax positions	(121)
Increases (decreases) related to prior year tax positions		8,223	0
Increases related to current year tax positions	1,613	1,518	0
Unrecognized tax benefits at the end of the year	$ 11,233	$ 9,741	$ 0

Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net income	$ 8,190	$ 5,947	$ 8,714	$ 486	$ 4,216	$ 100,423	$ 11,526	$ (612)	$ 23,337	$ 115,553	$ 25,208
Denominator:
Weighted average shares outstanding, basic (in shares)									54,427,683	53,137,562	50,859,947
Effect of dilutive securities (in shares)									763,119	1,709,498	2,185,310
Weighted average shares outstanding, diluted (in shares)									55,190,802	54,847,060	53,045,257
Net income per share, basic and diluted:
Basic (in dollars per share)	$ 0.15	$ 0.11	$ 0.16	$ 0.01	$ 0.08	$ 1.88	$ 0.22	$ (0.01)	$ 0.43	$ 2.17	$ 0.50
Diluted (in dollars per share)	$ 0.15	$ 0.11	$ 0.16	$ 0.01	$ 0.08	$ 1.84	$ 0.21	$ (0.01)	$ 0.42	$ 2.11	$ 0.48
Antidilutive securities excluded from calculations of diluted net income per share (in shares)									3,407,409	1,932,024	903,265

Quarterly Financial Data (Unaudited) (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Revenues	$ 67,653	$ 60,308	$ 62,207	$ 58,000	$ 60,930	$ 59,485	$ 59,060	$ 47,713	$ 248,168	$ 227,188	$ 193,118
Gross profit	60,871	54,041	55,991	52,423	54,335	52,327	52,313	42,220
Income (loss) from operations	10,451	7,742	9,171	(125)	4,243	10,759	9,895	(2,087)	27,239	22,810	21,738
Net income	$ 8,190	$ 5,947	$ 8,714	$ 486	$ 4,216	$ 100,423	$ 11,526	$ (612)	$ 23,337	$ 115,553	$ 25,208
Net income (loss) per share, basic (in dollars per share)	$ 0.15	$ 0.11	$ 0.16	$ 0.01	$ 0.08	$ 1.88	$ 0.22	$ (0.01)	$ 0.43	$ 2.17	$ 0.50
Net income (loss) per share, diluted (in dollars per share)	$ 0.15	$ 0.11	$ 0.16	$ 0.01	$ 0.08	$ 1.84	$ 0.21	$ (0.01)	$ 0.42	$ 2.11	$ 0.48

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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+ Details

- Definition

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

+ References + Details

Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($)	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 306,709,000	$ 274,027,000
U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	166,092,000	88,601,000
Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	140,617,000	137,025,000
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		48,401,000
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	166,092,000	88,601,000
Quoted Prices in Active Markets for Identical Assets (Level 1) \| U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	166,092,000	88,601,000
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	140,617,000	185,426,000
Significant Other Observable Inputs (Level 2) \| U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Significant Other Observable Inputs (Level 2) \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	140,617,000	137,025,000
Significant Other Observable Inputs (Level 2) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		48,401,000
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Significant Unobservable Inputs (Level 3) \| U.S. Treasury and government agencies
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Significant Unobservable Inputs (Level 3) \| Corporate debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	0	0
Significant Unobservable Inputs (Level 3) \| Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value		0
Cash Equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 0	$ 7,000,000.0