0001628280-20-015284 | 10-Q | XBRL Viewer | Esperion Therapeutics INC

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Cover Page - shares	9 Months Ended
Cover Page - shares	Sep. 30, 2020	Nov. 01, 2020
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	001-35986
Entity Registrant Name	Esperion Therapeutics, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	26-1870780
Entity Address, Address Line One	3891 Ranchero Drive, Suite 150
Entity Address, City or Town	Ann Arbor
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	48108
City Area Code	734
Local Phone Number	887-3903
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	ESPR
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		27,876,626
Entity Central Index Key	0001434868
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 215,748	$ 166,130
Restricted cash	0	928
Short-term investments	0	34,651
Prepaid clinical development costs	1,110	6,081
Inventories	9,061	0
Other prepaid and current assets	16,884	3,924
Total current assets	242,803	211,714
Property and equipment, net	1,408	1,145
Right of use operating lease assets	6,702	1,532
Other long-term assets	56	56
Total assets	250,969	214,447
Current liabilities:
Accounts payable	17,584	28,856
Accrued clinical development costs	21,686	17,511
Other accrued liabilities	21,458	11,871
Revenue interest liability	10,926	5,236
Deferred revenue from collaborations	1,662	2,152
Operating lease liabilities	2,631	454
Total current liabilities	75,947	66,080
Revenue interest liability	160,247	127,308
Operating lease liabilities	4,105	1,109
Other long-term liabilities	1,710	0
Total liabilities	242,009	194,497
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized and no shares issued or outstanding as of September 30, 2020 and December 31, 2019	0	0
Common stock, $0.001 par value; 120,000,000 shares authorized as of September 30, 2020 and December 31, 2019; 27,856,298 shares issued and outstanding at September 30, 2020 and 27,497,911 shares issued and outstanding at December 31, 2019	28	27
Additional paid-in capital	743,273	715,166
Accumulated other comprehensive income	0	23
Accumulated deficit	(734,341)	(695,266)
Total stockholders’ equity	8,960	19,950
Total liabilities and stockholders’ equity	$ 250,969	$ 214,447

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized (in shares)	5,000,000	5,000,000
Preferred stock, issued (in shares)	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized (in shares)	120,000,000	120,000,000
Common stock, issued (in shares)	27,856,298	27,497,911
Common stock, outstanding (in shares)	27,856,298	27,497,911

Condensed Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Revenues:
Total Revenues	$ 3,833	$ 981	$ 217,909	$ 147,382
Operating expenses:
Cost of goods sold	275	0	704	0
Research and development	35,283	48,281	104,972	137,377
Selling, general and administrative	48,826	18,468	138,060	44,142
Total operating expenses	84,384	66,749	243,736	181,519
Loss from operations	(80,551)	(65,768)	(25,827)	(34,137)
Interest expense	(4,928)	(3,996)	(13,739)	(3,996)
Other income, net	42	1,387	491	2,914
Net loss	$ (85,437)	$ (68,377)	$ (39,075)	$ (35,219)
Net loss per common share - basic and diluted (in dollars per share)	$ (3.07)	$ (2.52)	$ (1.41)	$ (1.30)
Weighted-average shares outstanding - basic and diluted (in shares)	27,830,281	27,171,769	27,672,325	26,995,661
Other comprehensive loss:
Unrealized gain (loss) on investments	$ 0	$ 27	$ (23)	$ 330
Comprehensive loss	(85,437)	(68,350)	(39,098)	(34,889)
Product sales, net
Revenues:
Total Revenues	3,331	0	4,798	0
Collaboration revenue
Revenues:
Total Revenues	$ 502	$ 981	$ 213,111	$ 147,382

Condensed Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2018		26,824,859
Beginning balance at Dec. 31, 2018	$ 79,118	$ 27	$ 677,511	$ (598,101)	$ (319)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		80,218
Exercise of stock options	1,669		1,669
Vesting of restricted stock units (in shares)		3,125
Vesting of restricted stock units	0
Stock-based compensation	6,636		6,636
Other comprehensive gain (loss)	208				208
Net income (loss)	87,379			87,379
Ending balance (in shares) at Mar. 31, 2019		26,908,202
Ending balance at Mar. 31, 2019	175,010	$ 27	685,816	(510,722)	(111)
Beginning balance (in shares) at Dec. 31, 2018		26,824,859
Beginning balance at Dec. 31, 2018	79,118	$ 27	677,511	(598,101)	(319)
Increase (Decrease) in Stockholders' Equity
Net income (loss)	(35,219)
Ending balance (in shares) at Sep. 30, 2019		27,178,230
Ending balance at Sep. 30, 2019	68,512	$ 27	701,794	(633,320)	11
Beginning balance (in shares) at Mar. 31, 2019		26,908,202
Beginning balance at Mar. 31, 2019	175,010	$ 27	685,816	(510,722)	(111)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		115,612
Exercise of stock options	1,887		1,887
Exercise of warrants (in shares)		5,813
Exercise of warrants	0
Vesting of restricted stock units (in shares)		7,025
Vesting of restricted stock units	0
Stock-based compensation	6,563		6,563
Other comprehensive gain (loss)	95				95
Net income (loss)	(54,221)			(54,221)
Ending balance (in shares) at Jun. 30, 2019		27,036,652
Ending balance at Jun. 30, 2019	129,334	$ 27	694,266	(564,943)	(16)
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		137,878
Exercise of stock options	1,201		1,201
Vesting of restricted stock units (in shares)		3,700
Vesting of restricted stock units	0
Stock-based compensation	6,327		6,327
Other comprehensive gain (loss)	27				27
Net income (loss)	(68,377)			(68,377)
Ending balance (in shares) at Sep. 30, 2019		27,178,230
Ending balance at Sep. 30, 2019	68,512	$ 27	701,794	(633,320)	11
Beginning balance (in shares) at Dec. 31, 2019		27,497,911
Beginning balance at Dec. 31, 2019	19,950	$ 27	715,166	(695,266)	23
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		40,133
Exercise of stock options	1,014	$ 1	1,013
Vesting of restricted stock units (in shares)		10,089
Vesting of restricted stock units	0
Stock-based compensation	7,053		7,053
Other comprehensive gain (loss)	(14)				(14)
Net income (loss)	(78,249)			(78,249)
Ending balance (in shares) at Mar. 31, 2020		27,548,133
Ending balance at Mar. 31, 2020	(50,246)	$ 28	723,232	(773,515)	9
Beginning balance (in shares) at Dec. 31, 2019		27,497,911
Beginning balance at Dec. 31, 2019	$ 19,950	$ 27	715,166	(695,266)	23
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)	270,735
Net income (loss)	$ (39,075)
Ending balance (in shares) at Sep. 30, 2020		27,856,298
Ending balance at Sep. 30, 2020	8,960	$ 28	743,273	(734,341)	0
Beginning balance (in shares) at Mar. 31, 2020		27,548,133
Beginning balance at Mar. 31, 2020	(50,246)	$ 28	723,232	(773,515)	9
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		160,024
Exercise of stock options	3,738		3,738
Vesting of restricted stock units (in shares)		43,498
Vesting of restricted stock units	0
Stock-based compensation	7,395		7,395
Other comprehensive gain (loss)	(9)				(9)
Net income (loss)	124,611			124,611
Ending balance (in shares) at Jun. 30, 2020		27,751,655
Ending balance at Jun. 30, 2020	85,489	$ 28	734,365	(648,904)	0
Increase (Decrease) in Stockholders' Equity
Exercise of stock options (in shares)		70,578
Exercise of stock options	1,644		1,644
Vesting of restricted stock units (in shares)		34,065
Vesting of restricted stock units	0
Stock-based compensation	7,264		7,264
Net income (loss)	(85,437)			(85,437)
Ending balance (in shares) at Sep. 30, 2020		27,856,298
Ending balance at Sep. 30, 2020	$ 8,960	$ 28	$ 743,273	$ (734,341)	$ 0

Condensed Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
Condensed Statements of Cash Flows - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Operating activities
Net loss	$ (39,075)	$ (35,219)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense	387	218
Accretion of premiums and discounts on investments	(97)	(140)
Non-cash interest expense related to the revenue interest liability	13,739	3,996
Stock-based compensation expense	21,712	19,526
Changes in assets and liabilities:
Prepaids and other assets	(7,989)	(1,802)
Deferred revenue	(490)	2,618
Inventories	(9,061)	0
Other long-term liabilities	1,710	0
Accounts payable	(11,326)	(21,158)
Other accrued liabilities	13,863	11,614
Net cash used in operating activities	(16,627)	(20,347)
Investing activities
Purchases of investments	(4,420)	(26,630)
Proceeds from sales/maturities of investments	39,145	94,510
Purchase of property and equipment	(693)	(781)
Net cash provided by investing activities	34,032	67,099
Financing activities
Proceeds from revenue interest liability	25,000	124,424
Proceeds from exercise of common stock options	6,395	4,757
Payments on revenue interest liability	(110)	0
Net cash provided by financing activities	31,285	129,181
Net increase in cash and cash equivalents	48,690	175,933
Cash, cash equivalents and restricted cash at beginning of period	167,058	36,973
Cash, cash equivalents and restricted cash at end of period	215,748	212,906
Supplemental disclosure of cash flow information:
Purchase of property and equipment not yet paid	148	74
Non cash right of use asset	$ 3	$ 31

The Company and Basis of Presentation	9 Months Ended
The Company and Basis of Presentation	Sep. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Company and Basis of Presentation	The Company and Basis of Presentation Esperion Therapeutics, Inc. ("the Company”) is the Lipid Management Company, a pharmaceutical company focused on developing and commercializing affordable, oral, once-daily, non-statin medicines for the treatment of patients with elevated low density lipoprotein cholesterol ("LDL-C"). Through scientific and clinical excellence, and a deep understanding of cholesterol biology, the experienced Lipid Management Team at Esperion is committed to developing new LDL-C lowering medicines that will make a substantial impact on reducing global cardiovascular disease ("CVD"); the leading cause of death around the world. NEXLETOL® (bempedoic acid) and NEXLIZET® (bempedoic acid and ezetimibe) tablets are the first, oral, once-daily, non-statin LDL-C lowering medicines approved in the U.S. in nearly 20 years for patients with atherosclerotic cardiovascular disease (“ASCVD”) or heterozygous familial hypercholesterolemia (“HeFH”). On February 21, 2020, the Company announced that the U.S. Food and Drug Administration (“FDA”) approved NEXLETOL as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. The effect of NEXLETOL on cardiovascular morbidity and mortality has not been determined. NEXLETOL is the first oral, once-daily, non-statin LDL-C lowering medicine approved since 2002 for indicated patients. NEXLETOL became commercially available on March 30, 2020. On February 26, 2020, the Company announced that the FDA approved NEXLIZET as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. The effect of NEXLIZET on cardiovascular morbidity and mortality has not been determined. NEXLIZET is the first non-statin, LDL-C lowering fixed combination drug product ever approved. NEXLIZET became commercially available on June 4, 2020. On January 31, 2020, the Committee for Medicinal Products for Human Use ("CHMP") of the European Medicines Agency ("EMA") adopted a positive opinion for the Marketing Authorisation Applications ("MAAs") of both bempedoic acid and the bempedoic acid / ezetimibe combination tablets, recommending approval for the treatment of hypercholesterolemia and mixed dyslipidemia. On April 6, 2020, the Company announced that the European Commission (“EC”) approved the NILEMDO™ (bempedoic acid) and NUSTENDI™ (bempedoic acid and ezetimibe) tablets for the treatment of hypercholesterolemia and mixed dyslipidemia. The decision is applicable to all 27 European Union member states plus the United Kingdom, Iceland, Norway and Liechtenstein. NILEMDO (bempedoic acid) and NUSTENDI (bempedoic acid and ezetimibe) are the branded products names for bempedoic acid and the bempedoic acid / ezetimibe combination tablets in Europe. NILEMDO is the first, oral, non-statin, LDL-C lowering medicine approved in Europe in almost two decades for indicated patients, and NUSTENDI is the first non-statin, LDL-C lowering combination medicine ever approved in Europe. On April 17, 2020, the Company entered into a license and collaboration agreement (the "Otsuka Agreement") with Otsuka Pharmaceutical Co., Ltd. ("Otsuka"). Pursuant to the Otsuka Agreement, the Company granted Otsuka exclusive development and commercialization rights to NEXLETOL and NEXLIZET in Japan. Otsuka will be responsible for all development, regulatory, and commercialization activities in Japan. In addition, Otsuka will fund all clinical development costs associated with the program in Japan. The Company received an upfront cash payment of $60 million in April 2020 and will receive up to an additional $450 million in total development and sales milestones. The Company will also receive tiered royalties ranging from 15 percent to 30 percent on net sales in Japan. On June 18, 2020, the Company entered into an amendment to the license and collaboration agreement ("LCA Amendment") with Daiichi Sankyo Europe GmbH ("DSE") dated as of January 2, 2019. In June 2020, the Company completed the transfer of the MAAs for NILEMDO and NUSTENDI. Pursuant to the terms of the amendment, DSE paid the Company the second $150 million milestone based on completion of the NUSTENDI MAA transfer rather than the first product sale in the EU. Prior to the execution of the LCA Amendment, the milestone payment was due upon the first commercial sale in Europe, which is anticipated later this year. Additionally, the Company and DSE have agreed to expand the territory in which DSE has exclusive commercialization rights to NILEMDO and NUSTENDI to include Turkey. DSE's designated affiliate in Turkey will be solely responsible, at its sole cost and expense, for all regulatory matters relating to such products in Turkey, including obtaining Regulatory Approval for such product in Turkey. The Company's primary activities since incorporation have been conducting research and development activities, including nonclinical, preclinical and clinical testing, performing business and financial planning, recruiting personnel, and raising capital. The Company received approval by the FDA in February 2020 to commercialize NEXLETOL and NEXLIZET in the U.S., and accordingly commenced principal operations on March 30, 2020 with the commercialization of NEXLETOL. The Company is subject to risks and uncertainties which include the need to successfully commercialize its products, research, develop, and clinically test therapeutic products; obtain regulatory approvals for its products; expand its management, commercial and scientific staff; and finance its operations with an ultimate goal of achieving profitable operations. The Company has sustained annual operating losses since inception and expects such losses to continue over the foreseeable future. While management believes current cash resources and future cash received from the Company's net product sales, collaboration agreements with DSE and Otsuka, entered into on January 2, 2019 and April 17, 2020, respectively, and from the Revenue Interest Purchase Agreement (“RIPA”) with Eiger III SA LLC (“Oberland”), an affiliate of Oberland Capital LLC, and the Purchasers named therein, entered into on June 26, 2019, will fund operations for the foreseeable future, management may continue to fund operations and advance the development of the Company's products and product candidates through a combination of collaborations with third parties, strategic alliances, licensing arrangements, permitted debt financings, permitted royalty-based financings, and permitted private and public equity offerings or through other sources. The impact of COVID-19 and the uncertainty around the global pandemic could further impact the commercial launch of NEXLETOL and NEXLIZET and the Company’s research and development programs and could result in lower cash flows or higher costs that could further impact the Company’s overall operations and cash needs in the future. If adequate funds are not available, the Company may not be able to continue the development of its current products or future product candidates, or to commercialize its current or future product candidates, if approved. Basis of Presentation The accompanying condensed interim financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“GAAP”). In the opinion of management, the Company has made all adjustments, which include only normal recurring adjustments necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods presented. Certain prior year amounts have been reclassified to conform with current year presentation. Certain information and disclosures normally included in the annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, have been condensed or omitted. These condensed interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2019, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The results of operations for the interim periods are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2020
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenues, expenses and related disclosures. Actual results could differ from those estimates. Concentration of Risk The Company enters into a limited number of distribution agreements with distributors and specialty pharmacies. The Company's net product sales are with these customers. As of September 30, 2020, ten customers accounted for all of the Company's net trade receivables. Inventories Inventories are stated at the lower of cost or net realizable value and recognized on a first-in, first-out ("FIFO") method. The Company uses standard cost to determine the cost basis for inventory. Inventory is capitalized based on when future economic benefit is expected to be realized. The Company began capitalizing inventory upon receiving FDA approval for NEXLETOL and NEXLIZET on February 21, 2020 and February 26, 2020, respectively. Prior to the FDA approval of NEXLETOL and NEXLIZET, expenses associated with the manufacturing of the Company's products were recorded as research and development expense. The Company analyzes its inventory levels on a periodic basis to determine if any inventory is at risk for expiration prior to sale or has a cost basis that is greater than its estimated future net realizable value. Any adjustments are recognized through cost of sales in the period in which they are incurred. Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to receive in exchange for the goods or services provided. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: identify the contracts with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when or as the entity satisfies a performance obligation. At contract inception the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when or as the performance obligation is satisfied. The Company derives revenue through two primary sources: collaboration revenue and product sales. Collaboration revenue consists of the collaboration payments to the Company for collaboration arrangements outside of the United States for the development, manufacturing and commercialization of the Company's product candidates by the Company's partners and product sales consists of sales of NEXLETOL and NEXLIZET. a.Collaboration Revenue The Company has entered into agreements related to its activities to develop, manufacture, and commercialize its product candidates. The Company earns collaboration revenue in connection with a collaboration agreement to develop and/or commercialize product candidates where the Company deems the collaborator to be the customer. Revenue is recognized when (or as) the Company satisfies performance obligations under the terms of a contract. Depending on the terms of the arrangement, the Company may defer the recognition of all or a portion of the consideration received as the performance obligations are satisfied. The collaboration agreements may require the Company to deliver various rights, services, and/or goods across the entire life cycle of a product or product candidate. In an agreement involving multiple goods or services promised to be transferred to a customer, the Company must assess, at the inception of the contract, whether each promise represents a separate performance obligation (i.e., is "distinct"), or whether such promises should be combined as a single performance obligation. The terms of the agreement typically include consideration to be provided to the Company in the form of non-refundable up-front payments, development milestones, sales milestones, and royalties on sales of products within a respective territory. The Company recognizes regulatory and approval milestones consideration when it is probable that a future reversal is unlikely to occur. For sales based milestones and royalties based on sales of product in a territory, the Company applies the sales-based royalty exception in ASC 606-10-55-65 to all of these milestones and royalties. At the inception of the contract, the transaction price reflects the amount of consideration the Company expects to be entitled to in exchange for transferring promised goods or services to its customer. In the arrangement where the Company satisfies performance obligation(s) during the regulatory phase over time, the Company recognizes collaboration revenue typically using an input method on the basis of regulatory costs incurred relative to the total expected cost which determines the extent of progress toward completion. The Company reviews the estimate of the transaction price and the total expected cost each period and makes revisions to such estimates as necessary. Under contracted supply agreements with collaborators, the Company may manufacture and supply quantities of active pharmaceutical ingredient (“API”) or bulk tablets reasonably required by collaboration partners for the development or sale of licensed products in their respective territory. The Company recognizes revenue when the collaboration partner has obtained control of the API or bulk tablets. The Company records the costs related to the supply agreement in cost of goods sold on the condensed statements of operations and comprehensive income (loss). Under the Company's collaboration agreements, product sales and cost of sales may be recorded by the Company's collaborators as they are deemed to be the principal in the transaction. The Company receives royalties from the commercialization of such products, and records its share of the variable consideration, representing a percentage of net product sales, as collaboration revenue in the period in which such underlying sales occur and costs are incurred by the collaborator. The collaborator will provide the Company with estimates of its royalties for such quarter; these estimates are reconciled to actual results in the subsequent quarter, and the royalty is adjusted accordingly, as necessary. b.Product Sales, Net On February 21, 2020, the Company announced that the FDA approved NEXLETOL as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On February 26, 2020, the Company announced that the FDA approved NEXLIZET as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On March 30, 2020, NEXLETOL was commercially available in the U.S. through prescription and on June 4, 2020, NEXLIZET was commercially available in the U.S. through prescription. Net product sales totaled $3.3 million and $4.8 million for the three and nine months ended September 30, 2020, respectively. The Company sells NEXLETOL and NEXLIZET to wholesalers in the U.S and, in accordance with ASC 606, recognizes revenue at the point in time when the customer is deemed to have obtained control of the product. The customer is deemed to have obtained control of the product at the time of physical receipt of the product at the customers’ distribution facilities, or free on board (“FOB”) destination, the terms of which are designated in the contract. Product sales are recorded at the net selling price, which includes estimates of variable consideration for which reserves are established for (a) rebates and chargebacks, (b) co-pay assistance programs, (c) distribution fees, (d) product returns, and (e) other discounts. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as current contractual and statutory requirements, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company's best estimates of the amount of consideration to which it is entitled based on the terms of the applicable contract. The amount of variable consideration may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Given the early stage of the Company’s commercial operations it has provided constraint of its variable consideration due to its potential consumption trends. Actual amounts of consideration ultimately received may differ from the Company's estimates. If actual results in the future vary from estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period such variances become known. Liabilities for co-pay assistance, expected product returns, rebates, and distributor fees are classified as “Other accrued liabilities” in the condensed balance sheets. Discounts, such as prompt pay discounts, and chargebacks are recorded as a reduction to trade accounts receivable, which is included in “Other prepaid and current assets” in the condensed balance sheets. Forms of Variable Consideration Rebates and Chargebacks: The Company estimates reductions to product sales for Public Health Service Institutions, such as Medicaid, Medicare and Veterans' Administration ("VA") programs, as well as certain other qualifying federal and state government programs, and other group purchasing organizations. The Company estimates these reductions based upon the Company's contracts with government agencies and other organizations, statutorily defined discounts and estimated payor mix. These organizations purchase directly from the Company's wholesalers at a discount and the wholesalers charge the Company back the difference between the wholesaler price and the discounted price. The Company's liability for Medicaid rebates consists of estimates for claims that a state will make for a current quarter. The Company's reserve for this discounted pricing is based on expected sales to qualified healthcare providers and the chargebacks that customers have already claimed. Co-pay assistance: Eligible patients who have commercial insurance may receive assistance from the Company to reduce the patient's out of pocket costs. The Company will buy down the difference between the amount of the eligible patient's co-pay when the drug is purchased at the pharmacy at a determined price. Liabilities for co-pay assistance are calculated by actual program participation from third-party administrators. Distribution Fees: The Company has written contracts with its customers that include terms for distribution fees and costs for inventory management. The Company estimates and records distribution fees due to its customers based on gross sales. Product Returns: The Company generally offers a right of return based on the product’s expiration date and certain spoilage and damaged instances. The Company estimates the amount of product sales that may be returned and records the estimate as a reduction of product sales in the period the related product sales is recognized. The Company’s estimates for expected returns are based primarily on an ongoing analysis of sales information and visibility into the inventory remaining in the distribution channel. Discounts: The Company provides product discounts, such as prompt pay discounts, to its customers. The Company estimates cash discounts based on terms in negotiated contracts and the Company’s expectations regarding future payment patterns. Recently Implemented Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2016-13 which requires financial instruments to be recognized at an estimate of current expected credit losses. As part of the ASU, financial assets measured at amortized cost will be presented at the net amount expected to be collected. In addition, companies will recognize an allowance for credit losses on available-for-sale investments rather than reducing the amortized cost in an other-than-temporary impairment. The Company has chosen the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of available-for-sale debt securities in identifying and measuring an impairment. The Company adopted the standard on January 1, 2020. The adoption of this standard did not have a material impact on the Company's balance sheets, statements of operations or statements of cash flows. In August 2018, the FASB issued ASU 2018-15 which includes provisions to clarify customer's accounting for implementation costs incurred in a cloud computing arrangement. Under the updated guidance, a customer in a cloud computing arrangement that is a service contract should follow the internal-use software guidance to determine how to account for costs incurred in implementation. The updated guidance also requires certain classification on the balance sheets, statements of operations and statements of cash flows as well as additional quantitative and qualitative disclosures. The Company adopted the standard effective January 1, 2020 and has chosen to adopt the standard prospectively. Implementation costs for cloud computing arrangements are capitalized in "Other prepaid and current assets" on the Company's balance sheets. The adoption of this standard did not have a material impact to the Company's balance sheets, statements of operations or statements of cash flows. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

Collaborations with Third Parties	9 Months Ended
Collaborations with Third Parties	Sep. 30, 2020
Collaborations with Third Parties
Collaborations with Third Parties	Collaborations with Third Parties DSE Agreement Terms On January 2, 2019, the Company entered into a license and collaboration agreement with DSE. Pursuant to the agreement, the Company granted DSE exclusive commercialization rights to bempedoic acid and the bempedoic acid / ezetimibe combination tablets in the European Economic Area and Switzerland (“DSE Territory”). DSE will be responsible for commercialization in the DSE Territory. The Company remains responsible for clinical development, regulatory and manufacturing activities for the licensed products globally, including in the DSE Territory. Pursuant to the agreement, the consideration consists of a $150.0 million upfront cash payment as well as $150.0 million cash payment to the Company upon first commercial sales in the DSE Territory. The Company also is responsible to supply DSE with certain manufacturing supply of the API or bulk tablets. The Company is also eligible to receive a substantial additional regulatory milestone payment upon the grant of the marketing authorisation in the European Union for the CV risk reduction label, depending on the range of relative risk reduction in the CLEAR Outcomes study. In addition, the Company is eligible to receive additional sales milestone payments related to total net sales achievements for DSE in the DSE Territory. Finally, the Company will receive tiered fifteen percent (15%) to twenty-five percent (25%) royalties on net DSE Territory sales. The agreement calls for both parties to participate in a Joint Collaboration Committee (the “DSE JCC”). The DSE JCC is comprised of executive management from each company and the Company will lead in all aspects related to development and DSE will lead in all aspects related to commercialization in the DSE Territory. Agreement Terms Amendment On June 18, 2020, the Company entered into an amendment to the license and collaboration agreement with DSE, dated as of January 2, 2019. In June, the Company completed the transfer of the MAAs for NILEMDO and NUSTENDI. Pursuant to the terms of the amendment, DSE paid the Company the second $150.0 million milestone based on completion of the NUSTENDI MAA transfer rather than the first product sale in the EU, as previously agreed. Additionally, the Company and DSE have agreed to expand the DSE Territory, or the territory in which DSE has exclusive commercialization rights to NILEMDO and NUSTENDI to include Turkey. DSE's designated affiliate in Turkey will be solely responsible, at its sole cost and expense, for all regulatory matters relating to such products in Turkey, including obtaining regulatory approval for such products in Turkey. Collaboration Revenue The Company considered the guidance under ASC 606 and concluded that the agreement was in the scope of ASC 606. The Company concluded that the upfront payment of $150.0 million should be included in the transaction price and related to the following performance obligations under the agreement: 1) the license to the Company’s intellectual property and 2) the obligation to provide ongoing regulatory and development activities. The Company used the adjusted market assessment approach in determining the standalone selling price of the Company’s intellectual property and the expected cost plus margin approach in determining the standalone selling price of the Company’s obligation to provide ongoing regulatory and development activities. In the three and nine months ended September 30, 2019, the Company recognized $1.0 million and $147.4 million of collaboration revenue, respectively. In the nine months ended September 30, 2020, the Company recognized $1.6 million related to the on-going performance obligation for the ongoing regulatory efforts related to the MAA in the DSE Territory, which was transferred to DSE in June 2020. In addition, in the nine months ended September 30, 2020, the Company recognized the $150.0 million milestone as collaboration revenue based on the successful transfer of the NUSTENDI MAA. In the three and nine months ended September 30, 2020, the Company recognized collaboration revenue of $0.5 million and $1.5 million, respectively, related to the sales of bulk tablets of NILEMDO and NUSTENDI to DSE pursuant to the Supply Agreement that was executed with DSE. All remaining future potential milestone amounts were not included in the transaction price, as they were all determined to be fully constrained following the concepts of ASC 606 due to the fact that such amounts hinge on development activities, regulatory approvals and sales-based milestones. Additionally, the Company expects that any consideration related to royalties and sales-based milestones will be recognized when the subsequent sales occur. Otsuka Agreement Terms On April 17, 2020, the Company entered into the Otsuka Agreement with Otsuka. Pursuant to the Otsuka Agreement, the Company granted Otsuka exclusive development and commercialization rights to NEXLETOL and NEXLIZET in Japan. Otsuka will be responsible for all development, regulatory, and commercialization activities in Japan. In addition, Otsuka will fund all clinical development costs associated with the program in Japan. Pursuant to the agreement, the consideration consists of a $60.0 million upfront cash payment and the Company will be eligible to receive additional payments of up to $450.0 million if certain regulatory and commercial milestones are achieved by Otsuka. The potential future milestone payments include up to $20.0 million upon first JNDA submissions in the Otsuka Territory, up to $70.0 million upon the first NHI Price Listing for NEXLETOL in the Otsuka Territory, and up to $50.0 million upon the achievement of the primary major adverse cardiovascular events (“MACE”) in the CLEAR Outcomes study and the CV risk reduction rate on the U.S. label, depending on the range of relative risk reduction in the CLEAR Outcomes study. In addition, the Company is eligible to receive additional sales milestone payments up to $310.0 million related to total net sales achievements for Otsuka in Japan. Finally, the Company will receive tiered fifteen percent (15%) to thirty percent (30%) royalties on net sales in Japan. The agreement calls for both parties to participate in a Joint Collaboration Committee (the "Otsuka JCC"). The Otsuka JCC is comprised of executive management from each company and Otsuka will lead in all aspects related to development and commercialization in the Otsuka Territory. Collaboration Revenue The Company considered the guidance under ASC 606 and concluded that the agreement was in the scope of ASC 606. The Company concluded that the upfront payment of $60.0 million should be included in the transaction price and related to the performance obligation under the agreement to the license to the Company's intellectual property. In the nine months ended September 30, 2020, the Company recognized $60.0 million of collaboration revenue related to the $60.0 million upfront payment. The Company did not have any collaboration revenue from the Otsuka Agreement during the three months ended September 30, 2020. All future potential milestone amounts were not included in the transaction price, as they were all determined to be fully constrained following the concepts of ASC 606 due to the fact that such amounts hinge on development activities, regulatory approvals and sales-based milestones. Additionally, the Company expects that any consideration related to royalties and sales-based milestones will be recognized when the subsequent sales occur. The Company has not yet recognized any revenue for milestone payments as the related regulatory and commercial milestones have not yet been achieved.

Inventories

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Inventories

Inventories as of September 30, 2020 and December 31, 2019 consist of the following (in thousands):


	September 30, 2020		December 31, 2019
Raw materials	$	4,103	—
Work in process	4,541		—
Finished goods	417		—
	$	9,061	$	—

The Company has entered into a contract manufacturing agreement with a third party commercial manufacturing organization for the production of certain inventory supplies of NEXLETOL and NEXLIZET. The agreement has an initial term of three years and will renew automatically for successive periods of one year each unless otherwise terminated by either party. Under the agreement the Company is obligated to purchase minimum order commitments on a rolling twelve months period for the batches of inventory supplies produced.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies On January 12, 2016, a purported stockholder of the Company filed a putative class action lawsuit in the United States District Court for the Eastern District of Michigan, against the Company and Tim Mayleben, captioned Kevin L. Dougherty v. Esperion Therapeutics, Inc., et al. (No. 16-cv-10089). The lawsuit alleges that the Company and Mr. Mayleben violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 by allegedly failing to disclose in an August 17, 2015, public statement that the FDA would require a cardiovascular outcomes trial before approving the Company’s lead product candidate. The lawsuit seeks, among other things, compensatory damages in connection with an allegedly inflated stock price between August 18, 2015, and September 28, 2015, as well as attorneys’ fees and costs. On May 20, 2016, an amended complaint was filed in the lawsuit and on July 5, 2016, the Company filed a motion to dismiss the amended complaint. On December 27, 2016, the court granted the Company’s motion to dismiss with prejudice and entered judgment in the Company’s favor. On January 24, 2017, the plaintiffs in this lawsuit filed a motion to alter or amend the judgment. In May 2017, the court denied the plaintiff’s motion to alter or amend the judgment. On June 19, 2017, the plaintiffs filed a notice of appeal to the Sixth Circuit Court of Appeals and on September 14, 2017, they filed their opening brief in support of the appeal. The appeal was fully briefed on December 7, 2017, and it was argued before the Sixth Circuit on March 15, 2018. On September 27, 2018, the Sixth Circuit issued an opinion in which it reversed the district court’s dismissal and remanded for further proceedings. On October 11, 2018, the Company filed a petition for rehearing en banc and, on October 23, 2018, the Sixth Circuit Court of Appeals directed plaintiffs to respond to that petition. On December 3, 2018, the Sixth Circuit denied the Company’s petition for en banc rehearing, and on December 11, 2018, the case was returned to the federal district court by mandate from the Sixth Circuit. On December 26, 2018, the Company filed an answer to the amended complaint, and on March 28, 2019, the Company filed its amended answer to the amended complaint. On September 15, 2020, the Company filed a motion for summary judgment, and the plaintiffs filed a motion for partial summary judgment, and on October 23, 2020, the parties filed oppositions to both motions for summary judgment. The Company is unable to predict the outcome of this matter and is unable to make a meaningful estimate of the amount or range of loss, if any, that could result from an unfavorable outcome. On December 15, 2016, a purported stockholder of the Company filed a derivative lawsuit in the Court of Chancery of the State of Delaware against Tim Mayleben, Roger Newton, Mary McGowan, Nicole Vitullo, Dov Goldstein, Daniel Janney, Antonio Gotto Jr., Mark McGovern, Gilbert Omenn, Scott Braunstein, and Patrick Enright. The Company is named as a nominal defendant. The lawsuit alleges that the defendants breached their fiduciary duties to the Company when they made or approved improper statements on August 17, 2015, regarding the Company’s lead product candidate’s path to FDA approval, and failed to ensure that reliable systems of internal controls were in place at the Company. On February 8, 2019, the Company and defendants filed a motion to dismiss the derivative lawsuit. On April 23, 2019, the plaintiff filed an opposition to the motion to dismiss the derivative lawsuit, and the Company filed a reply brief on May 15, 2019. On November 6, 2019, the court held a hearing on the motion to dismiss. On February 13, 2020, the court granted the motion to dismiss with prejudice and entered judgment in the Company’s favor. On March 16, 2020, the plaintiff filed a notice of appeal to the Supreme Court of Delaware. On June 1, 2020, the plaintiff filed his opening brief on appeal to the Supreme Court of Delaware. On July 1, 2020, the Company and the defendants filed an answering brief, and on July 16, 2020, the plaintiff filed a reply brief. On October 14, 2020, the Supreme Court of Delaware held oral arguments on the appeal. On October 29, 2020, the Supreme Court of Delaware issued an order affirming the judgment of the Court of Chancery. The lawsuit seeks, among other things, any damages sustained by the Company as a result of the defendants’ alleged breaches of fiduciary duties, including damages related to the above-referenced securities class action, an order directing the Company to take all necessary actions to reform and improve its corporate governance and internal procedures, restitution from the defendants, and attorneys’ fees and costs. The Company is unable to predict the outcome of this matter and is unable to make a meaningful estimate of the amount or range of loss, if any, that could result from an unfavorable outcome. There have been no other material changes to the Company’s contractual obligations and commitments and contingencies outside the ordinary course of business from those previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019 other than the Revenue Interest Purchase Agreement disclosed in Note 8 “Liability Related to the Revenue Interest Purchase Agreement.”

Investments

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investments

The following table summarizes the Company’s cash equivalents and short-term investments:


	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousand)
Cash equivalents:
Money market funds	$	206,147	$	—	$	—	$	206,147


Total	$	206,147	$	—	$	—	$	206,147


	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash equivalents:
Money market funds	$	20,970	$	—	$	—	$	20,970
U.S. treasury notes	2,497		—		—		2,497
Commercial paper	4,494		—		—		4,494
Short-term investments:
Certificates of deposit	245		—		—		245
U.S treasury notes	29,155		23		—		29,178
Commercial paper	5,228		—		—		5,228
Total	$	62,589	$	23	$	—	$	62,612

At September 30, 2020, remaining contractual maturities of investments classified as current on the balance sheets were less than 12 months.

During the three and nine months ended September 30, 2020, other income, net in the statements of operations includes interest income on investments of less than $0.1 million and $0.5 million, respectively, and income for the accretion of premiums and discounts on investments of less than $0.1 million and $0.1 million, respectively. During the three and nine months ended September 30, 2019, other income, net in the statements of operations includes interest income on investments of $1.2 million and $2.6 million, respectively, and income for the accretion of premiums and discounts on investments of $0.2 million and $0.3 million, respectively.

There were no unrealized gains or losses on investments reclassified from accumulated other comprehensive income (loss) to other income in the statements of operations during the three and nine months ended September 30, 2020 and 2019.

In the three and nine months ended September 30, 2020, there were no allowances for credit losses and all unrealized gains (losses) for available-for-sale securities were recognized in accumulated other comprehensive income (loss). As of September 30, 2020, the Company had no accrued interest receivables.

Fair Value Measurements

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

The Company follows accounting guidance that emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” Fair value measurements are defined on a three level hierarchy:


Level 1 inputs:						Quoted prices for identical assets or liabilities in active markets;

Level 2 inputs:						Observable inputs other than Level 1 prices, such as quoted market prices for similar assets or liabilities or other inputs that are observable or can be corroborated by market data; and

Level 3 inputs:						Unobservable inputs that are supported by little or no market activity and require the reporting entity to develop assumptions that market participants would use when pricing the asset or liability.

The following table presents the Company’s financial assets that have been measured at fair value on a recurring basis:


Description	Total		Level 1		Level 2		Level 3

September 30, 2020
Assets:
Money market funds	$	206,147	$	206,147	$	—	$	—


Total assets at fair value	$	206,147	$	206,147	$	—	$	—
December 31, 2019
Assets:
Money market funds	$	20,970	$	20,970	$	—	$	—
Investments:
Certificates of deposit	245		245		—		—
U.S. treasury notes	31,675		31,675		—		—
Commercial paper	9,722		—		9,722		—
Total assets at fair value	$	62,612	$	52,890	$	9,722	$	—

There were no transfers between Levels 1, 2 or 3 during the three and nine months ended September 30, 2020 and 2019.

- Definition

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

+ References + Details

Liability Related to the Revenue Interest Purchase Agreement

9 Months Ended

Sep. 30, 2020

On June 26, 2019, the Company entered into a RIPA with Oberland, as agent for purchasers party thereto (the “Purchasers”), and the Purchasers named therein, to obtain financing in respect to the commercialization and further development of bempedoic acid and the bempedoic acid / ezetimibe combination tablets and other working capital needs. Pursuant to the RIPA, the Company received $125.0 million at closing, less certain issuance costs. The Company is also entitled to receive up to approximately $75.0 million in subsequent installments subject to the terms and conditions set forth in the RIPA: (i) $25.0 million upon certain regulatory approval of its product candidates and (ii) $50.0 million, at the Company’s option, upon reaching $100.0 million trailing worldwide six-month net sales any time prior to December 31, 2021 (the “Third Payment”). In March 2020, the Company received $25.0 million from Oberland upon receiving regulatory approval of NEXLETOL.

As consideration for such payments, the Purchasers have a right to receive certain revenue interests (the “Revenue Interests”) from the Company based upon net sales of the Company’s certain products which will be tiered payments initially ranging from 2.5% to 7.5% of the Company’s net sales in the covered territory (the “Covered Territory”); provided that (a) if

annual net sales equal or exceed $350.0 million by December 31, 2021 (the “Sales Threshold”), the initially tiered revenue interest rate will be decreased to a single rate of 2.5% of the Company’s net sales in the Covered Territory, beginning on January 1, 2022, and (b) if annual net sales equal or exceed the Sales Threshold and if the Purchasers receive 100% of their invested capital by December 31, 2024, the revenue interest rate will be decreased to a single rate of 0.4% of the Company’s net sales in the Covered Territory beginning on January 1, 2025. If the Third Payment is drawn down by the Company, the applicable royalty rates will increase by one-third. The Covered Territory is the United States, but is subject to expand to include the world-wide net sales if the Company’s annual U.S. net sales are less than $350.0 million for the year ended December 31, 2021. The U.S. net sales milestone thresholds are not to be taken as financial guidance. The Purchasers’ rights to receive the Revenue Interests shall terminate on the date on which the Purchasers have received Revenue Interests payments of 195% of the then aggregate purchase price (the “Cumulative Purchaser Payments”) paid to the Company, unless the RIPA is terminated earlier.

Under the RIPA, the Company has an option (the “Call Option”) to terminate the RIPA and repurchase future Revenue Interests at any time upon advance written notice. Additionally, the Purchasers have an option (the “Put Option”) to terminate the RIPA and to require the Company to repurchase future Revenue Interests upon enumerated events such as a bankruptcy event, an uncured material breach, a material adverse effect or a change of control. If the Put Option is exercised prior to the first anniversary of the closing date by the Purchasers (except pursuant to a change of control), the required repurchase price will be 120% of the Cumulative Purchaser Payments (minus all payments Company has made to the Purchasers in connection with the Revenue Interests). In all other cases, if the Put Option or the Call Option are exercised, the required repurchase price will be 175% of the Cumulative Purchaser Payments (minus all payments Company has made to the Purchasers in connection with the Revenue Interests), if such option is exercised prior to the third anniversary of the closing date, and 195% of the Cumulative Purchaser Payments (minus all payments Company has made to the Purchasers in connection with the Revenue Interests), if such option is exercised thereafter.

In addition, the RIPA contains various representations and warranties, information rights, non-financial covenants, indemnification obligations and other provisions that are customary for a transaction of this nature.

In connection with the arrangement, as of September 30, 2020, the Company has recorded a liability, referred to as the “Revenue interest liability” in the condensed balance sheets, of $171.2 million, net of $0.5 million of capitalized issuance costs in connection with the RIPA. The Company imputes interest expense associated with this liability using the effective interest rate method. The effective interest rate is calculated based on the rate that would enable the debt to be repaid in full over the anticipated life of the arrangement. The interest rate on this liability may vary during the term of the agreement depending on a number of factors, including the level of forecasted net sales. The Company evaluates the interest rate quarterly based on its current net sales forecasts utilizing the prospective method.

A significant increase or decrease in net sales will materially impact the revenue interest liability, interest expense and the time period for repayment. The Company recorded approximately $4.9 million and $13.7 million in interest expense related to this arrangement for the three and nine months ended September 30, 2020, respectively.

The repayment of the RIPA to Oberland does not have a fixed repayment schedule, rather it will be completely repaid and extinguished when the Company has repaid 195% of the aggregate purchase price unless the RIPA is terminated earlier. Since there is not a fixed repayment schedule, the Company does not project its future repayments by year. Each period, the Company estimates the future expected sales of its products in the covered territory and determines the effective annual imputed interest rate, which updates and changes the timing of the Company’s payments. Under the terms of the agreement, every $100 million of net sales generated, less than or equal to $250 million in an annual aggregate year, would result in a repayment obligation of approximately $7.5 million or 7.5% at the stated repayment rate in the first year. Annual Net Sales for a calendar year exceeding $250 million would result in a repayment obligation of approximately $2.5 million or 2.5% for every $100 million of sales above the threshold. If the Company equals or exceeds $350 million of sales in the U.S. in 2021, then the repayment amount would drop to $2.5 million for every $100 million of net sales starting in 2022. If the US net sales are less than $350 million for the year ended December 31, 2021, then the Covered Territory is expanded to include worldwide sales beginning in 2022. The Company’s repayments of the RIPA are directly tied to the growth of its net sales, and as the Company’s net sales grow, the Company expects the related repayments of the RIPA to grow as well. The Company currently expects to repay $10.9 million in the next twelve months.

The Company received $125.0 million in exchange for entering into the RIPA and $25.0 million in March 2020 upon receiving regulatory approval of NEXLETOL. The effective annual imputed interest rate is 14.8% as of September 30, 2020. The Company incurred $0.6 million of issuance costs in connection with the RIPA, which will be amortized to interest expense over the estimated term of the RIPA. Payments made to Oberland as a result of the Company’s net sales will reduce the revenue interest liability.

The following table summarizes the revenue interest liability activity during the nine months ended September 30, 2020:


	(in thousands)
Revenue interest liability at December 31, 2019	$	132,544
Oberland funding for regulatory approval of NEXLETOL	25,000
Interest expense recognized	13,739
Revenue Interests payments	(110)
Revenue interest liability at September 30, 2020	$	171,173

Other Accrued Liabilities

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

Other Accrued Liabilities

Other accrued liabilities consist of the following:


	September 30, 2020	December 31, 2019
	(in thousands)
Accrued compensation	12,156	7,818
Accrued professional fees	5,958	3,842

Accrued other	3,344	211
Total other accrued liabilities	21,458	11,871

Stock Compensation

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Stock Compensation

Employee Stock Purchase Plan

In April 2020, the board of directors approved the Esperion Therapeutics, Inc. 2020 Employee Stock Purchase Plan (the "ESPP") which was approved by the Company's shareholders on May 28, 2020. The ESPP allows eligible employees to authorize payroll deductions of up to 10% of their base salary or wages up to $25,000 annually to be applied toward the purchase of shares of the Company's common stock on the last trading day of the offering period. Participating employees will purchase shares of the Company's common stock at a discount of up to 15% on the lesser of the closing price of the Company's common stock on the NASDAQ Global Select Market (i) on the first trading day of the offering period or (ii) the last day of any offering period. Offering periods under the ESPP will generally be in six months increments, commencing on September 1 and March 1 of each calendar year with the administrator having the right to establish different offering periods. In the three and nine months ended September 30, 2020, the Company recognized $0.1 million of stock compensation expense related to the ESPP. As of September 30, 2020, there have been no shares issued and 825,000 shares reserved for future issuance under the ESPP.

Stock Options

The following table summarizes the activity relating to the Company’s options to purchase common stock for the nine months ended September 30, 2020:


	Number of Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2019	4,677,929	$	39.31	6.82	$	109,054
Granted	234,940	$	61.14
Forfeited or expired	(213,484)	$	55.55
Exercised	(270,735)	$	23.62
Outstanding at September 30, 2020	4,428,650	$	40.65	5.84	$	38,247

The following table summarizes information about the Company’s stock option plan as of September 30, 2020:


	Number of Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Vested and expected to vest at September 30, 2020	4,428,650	$	40.65	5.84	$	38,247
Exercisable at September 30, 2020	3,274,100	$	36.40	5.01	$	36,798

Stock-based compensation related to stock options was $5.1 million and $16.2 million for the three and nine months ended September 30, 2020, respectively, including less than $0.1 million and $0.5 million for the three and nine months ended September 30, 2020, respectively, that were capitalized into inventory, and $5.5 million and $18.1 million for the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, there was $37.5 million of unrecognized stock-based compensation expense related to unvested options, which will be recognized over a weighted-average period of 2.2 years.

Restricted Stock Units (or RSUs)

The following table summarizes the activity relating to the Company’s RSUs for the nine months ended September 30, 2020:


	Number of RSUs	Weighted-Average Fair Value Per Share
Outstanding and unvested December 31, 2019	245,966	$	44.45
Granted	347,733	$	51.42
Forfeited	(48,437)	$	45.07
Vested	(87,652)	$	48.78
Outstanding and unvested September 30, 2020	457,610	$	48.85

Stock-based compensation related to RSUs was approximately $2.1 million and $5.4 million for the three and nine months ended September 30, 2020, respectively, including less than $0.1 million and $0.1 million for the three and nine months ended September 30, 2020, respectively, that were capitalized into inventory, and $0.8 million and $1.4 million for the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, there was $19.5 million of unrecognized stock-based compensation expense related to unvested RSUs, which will be recognized over a weighted-average period of 3.0 years.

Leases

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Leases

The Company has operating leases primarily related to the Company’s principal executive office, automobile leases and other IT related equipment. The lease for the principal executive office has a lease term of 5 years and the automobile leases and IT equipment leases primarily have a term of 3 years. During the nine months ended September 30, 2020, the right of use operating lease assets and operating lease liabilities recognized on the condensed balance sheet increased by $5.2 million and $5.2 million from December 31, 2019, respectively, due to the addition of automobile leases and IT equipment associated with the onboarding of the Company’s commercial sales force to support the commercialization of NEXLETOL and NEXLIZET. During the three and nine months ended September 30, 2020, the Company recognized $0.7 million and $1.5 million, respectively, of operating lease costs, recognized on the condensed statements of operations, and paid cash for the amounts included in the measurement of lease liabilities of $0.7 million and $1.5 million, respectively, which were included in operating cash flows on the condensed statements of cash flows. During the three and nine months ended September 30, 2019, the Company recognized $0.1 million and $0.2 million, respectively, of operating lease costs, recognized on the condensed statements of operations, and paid cash for the amounts included in the measurement of lease liabilities of $0.1 million and $0.2 million, respectively, which were included in operating cash flows on the condensed statements of cash flows. At September 30, 2020, the weighted-average remaining lease term of operating leases was 2.6 years and the weighted average discount rate was 3.5%. There were no right-of-use assets obtained in exchange for lease obligations in the nine months ended September 30, 2020 or 2019. The Company had no additional operating and finance leases that have not yet commenced as of September 30, 2020 or 2019.

The following table summarizes the Company’s future maturities of operating lease liabilities as of September 30, 2020:


	(in thousands)
2020 (remaining)	$	719
2021	2,772
2022	2,725
2023	820
2024	—
Total lease payments	7,036
Less imputed interest	300
Total	$	6,736

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes There was no provision for income taxes for the three and nine months ended September 30, 2020 and 2019, because the Company has incurred annual operating losses since inception. At September 30, 2020, the Company continues to conclude that it is not more likely than not that the Company will realize the benefit of its deferred tax assets due to its history of losses. Accordingly, a full valuation allowance has been applied against the net deferred tax assets.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Net Loss Per Common Share

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Net Loss Per Common Share

Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common stock equivalents outstanding for the period, including shares that potentially could be dilutive if they were exercised during the period, determined using the treasury-stock method. For purposes of this calculation, stock options and unvested RSUs are considered to be common stock equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.

The shares outstanding at the end of the respective periods presented below were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:


	Three and Nine Months Ended September 30,
	2020	2019
Common shares under option	4,428,650	5,093,262
Unvested RSUs	457,610	192,204
Total potential dilutive shares	4,886,260	5,285,466

Statements of Cash Flows

9 Months Ended

Sep. 30, 2020

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]

Statements of Cash Flows

The following table provides a reconciliation of cash and cash equivalents and restricted cash presented on the condensed balance sheets to the same amounts presented on the condensed statements of cash flows on September 30, 2020 and 2019 and December 31, 2019 and 2018 (in thousands):


	September 30, 2020		September 30, 2019		December 31, 2019		December 31, 2018
Cash and cash equivalents	$	215,748	$	211,978	$	166,130	$	36,973
Restricted cash	—		928		928		—
Total cash and cash equivalents and restricted cash shown on the condensed statements of cash flows	$	215,748	$	212,906	$	167,058	$	36,973

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2020
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed interim financial statements are unaudited and were prepared by the Company in accordance with generally accepted accounting principles in the United States of America (“GAAP”). In the opinion of management, the Company has made all adjustments, which include only normal recurring adjustments necessary for a fair presentation of the Company’s financial position and results of operations for the interim periods presented. Certain prior year amounts have been reclassified to conform with current year presentation. Certain information and disclosures normally included in the annual financial statements prepared in accordance with GAAP, but that is not required for interim reporting purposes, have been condensed or omitted. These condensed interim financial statements should be read in conjunction with the audited financial statements as of and for the year ended December 31, 2019, and the notes thereto, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The results of operations for the interim periods are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period.
Use of Estimates	Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, net revenues, expenses and related disclosures. Actual results could differ from those estimates.
Concentration of Risk	Concentration of Risk The Company enters into a limited number of distribution agreements with distributors and specialty pharmacies. The Company's net product sales are with these customers. As of September 30, 2020, ten customers accounted for all of the Company's net trade receivables.
Inventories	Inventories Inventories are stated at the lower of cost or net realizable value and recognized on a first-in, first-out ("FIFO") method. The Company uses standard cost to determine the cost basis for inventory. Inventory is capitalized based on when future economic benefit is expected to be realized. The Company began capitalizing inventory upon receiving FDA approval for NEXLETOL and NEXLIZET on February 21, 2020 and February 26, 2020, respectively. Prior to the FDA approval of NEXLETOL and NEXLIZET, expenses associated with the manufacturing of the Company's products were recorded as research and development expense. The Company analyzes its inventory levels on a periodic basis to determine if any inventory is at risk for expiration prior to sale or has a cost basis that is greater than its estimated future net realizable value. Any adjustments are recognized through cost of sales in the period in which they are incurred.
Revenue Recognition	Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers, the Company recognizes revenue when a customer obtains control of promised goods or services, in an amount that reflects the consideration the Company expects to receive in exchange for the goods or services provided. To determine revenue recognition for arrangements within the scope of ASC 606, the Company performs the following five steps: identify the contracts with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when or as the entity satisfies a performance obligation. At contract inception the Company assesses the goods or services promised within each contract and determines those that are performance obligations and assesses whether each promised good or service is distinct. The Company then recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when or as the performance obligation is satisfied. The Company derives revenue through two primary sources: collaboration revenue and product sales. Collaboration revenue consists of the collaboration payments to the Company for collaboration arrangements outside of the United States for the development, manufacturing and commercialization of the Company's product candidates by the Company's partners and product sales consists of sales of NEXLETOL and NEXLIZET. a.Collaboration Revenue The Company has entered into agreements related to its activities to develop, manufacture, and commercialize its product candidates. The Company earns collaboration revenue in connection with a collaboration agreement to develop and/or commercialize product candidates where the Company deems the collaborator to be the customer. Revenue is recognized when (or as) the Company satisfies performance obligations under the terms of a contract. Depending on the terms of the arrangement, the Company may defer the recognition of all or a portion of the consideration received as the performance obligations are satisfied. The collaboration agreements may require the Company to deliver various rights, services, and/or goods across the entire life cycle of a product or product candidate. In an agreement involving multiple goods or services promised to be transferred to a customer, the Company must assess, at the inception of the contract, whether each promise represents a separate performance obligation (i.e., is "distinct"), or whether such promises should be combined as a single performance obligation. The terms of the agreement typically include consideration to be provided to the Company in the form of non-refundable up-front payments, development milestones, sales milestones, and royalties on sales of products within a respective territory. The Company recognizes regulatory and approval milestones consideration when it is probable that a future reversal is unlikely to occur. For sales based milestones and royalties based on sales of product in a territory, the Company applies the sales-based royalty exception in ASC 606-10-55-65 to all of these milestones and royalties. At the inception of the contract, the transaction price reflects the amount of consideration the Company expects to be entitled to in exchange for transferring promised goods or services to its customer. In the arrangement where the Company satisfies performance obligation(s) during the regulatory phase over time, the Company recognizes collaboration revenue typically using an input method on the basis of regulatory costs incurred relative to the total expected cost which determines the extent of progress toward completion. The Company reviews the estimate of the transaction price and the total expected cost each period and makes revisions to such estimates as necessary. Under contracted supply agreements with collaborators, the Company may manufacture and supply quantities of active pharmaceutical ingredient (“API”) or bulk tablets reasonably required by collaboration partners for the development or sale of licensed products in their respective territory. The Company recognizes revenue when the collaboration partner has obtained control of the API or bulk tablets. The Company records the costs related to the supply agreement in cost of goods sold on the condensed statements of operations and comprehensive income (loss). Under the Company's collaboration agreements, product sales and cost of sales may be recorded by the Company's collaborators as they are deemed to be the principal in the transaction. The Company receives royalties from the commercialization of such products, and records its share of the variable consideration, representing a percentage of net product sales, as collaboration revenue in the period in which such underlying sales occur and costs are incurred by the collaborator. The collaborator will provide the Company with estimates of its royalties for such quarter; these estimates are reconciled to actual results in the subsequent quarter, and the royalty is adjusted accordingly, as necessary. b.Product Sales, Net On February 21, 2020, the Company announced that the FDA approved NEXLETOL as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On February 26, 2020, the Company announced that the FDA approved NEXLIZET as an adjunct to diet and maximally tolerated statin therapy for the treatment of adults with HeFH or established ASCVD who require additional lowering of LDL-C. On March 30, 2020, NEXLETOL was commercially available in the U.S. through prescription and on June 4, 2020, NEXLIZET was commercially available in the U.S. through prescription. Net product sales totaled $3.3 million and $4.8 million for the three and nine months ended September 30, 2020, respectively. The Company sells NEXLETOL and NEXLIZET to wholesalers in the U.S and, in accordance with ASC 606, recognizes revenue at the point in time when the customer is deemed to have obtained control of the product. The customer is deemed to have obtained control of the product at the time of physical receipt of the product at the customers’ distribution facilities, or free on board (“FOB”) destination, the terms of which are designated in the contract. Product sales are recorded at the net selling price, which includes estimates of variable consideration for which reserves are established for (a) rebates and chargebacks, (b) co-pay assistance programs, (c) distribution fees, (d) product returns, and (e) other discounts. Where appropriate, these estimates take into consideration a range of possible outcomes which are probability-weighted for relevant factors such as current contractual and statutory requirements, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company's best estimates of the amount of consideration to which it is entitled based on the terms of the applicable contract. The amount of variable consideration may be constrained and is included in the net sales price only to the extent that it is probable that a significant reversal in the amount of the cumulative revenue recognized will not occur in a future period. Given the early stage of the Company’s commercial operations it has provided constraint of its variable consideration due to its potential consumption trends. Actual amounts of consideration ultimately received may differ from the Company's estimates. If actual results in the future vary from estimates, the Company adjusts these estimates, which would affect net product revenue and earnings in the period such variances become known. Liabilities for co-pay assistance, expected product returns, rebates, and distributor fees are classified as “Other accrued liabilities” in the condensed balance sheets. Discounts, such as prompt pay discounts, and chargebacks are recorded as a reduction to trade accounts receivable, which is included in “Other prepaid and current assets” in the condensed balance sheets. Forms of Variable Consideration Rebates and Chargebacks: The Company estimates reductions to product sales for Public Health Service Institutions, such as Medicaid, Medicare and Veterans' Administration ("VA") programs, as well as certain other qualifying federal and state government programs, and other group purchasing organizations. The Company estimates these reductions based upon the Company's contracts with government agencies and other organizations, statutorily defined discounts and estimated payor mix. These organizations purchase directly from the Company's wholesalers at a discount and the wholesalers charge the Company back the difference between the wholesaler price and the discounted price. The Company's liability for Medicaid rebates consists of estimates for claims that a state will make for a current quarter. The Company's reserve for this discounted pricing is based on expected sales to qualified healthcare providers and the chargebacks that customers have already claimed. Co-pay assistance: Eligible patients who have commercial insurance may receive assistance from the Company to reduce the patient's out of pocket costs. The Company will buy down the difference between the amount of the eligible patient's co-pay when the drug is purchased at the pharmacy at a determined price. Liabilities for co-pay assistance are calculated by actual program participation from third-party administrators. Distribution Fees: The Company has written contracts with its customers that include terms for distribution fees and costs for inventory management. The Company estimates and records distribution fees due to its customers based on gross sales. Product Returns: The Company generally offers a right of return based on the product’s expiration date and certain spoilage and damaged instances. The Company estimates the amount of product sales that may be returned and records the estimate as a reduction of product sales in the period the related product sales is recognized. The Company’s estimates for expected returns are based primarily on an ongoing analysis of sales information and visibility into the inventory remaining in the distribution channel. Discounts: The Company provides product discounts, such as prompt pay discounts, to its customers. The Company estimates cash discounts based on terms in negotiated contracts and the Company’s expectations regarding future payment patterns.
Recently Implemented Accounting Pronouncements	Recently Implemented Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2016-13 which requires financial instruments to be recognized at an estimate of current expected credit losses. As part of the ASU, financial assets measured at amortized cost will be presented at the net amount expected to be collected. In addition, companies will recognize an allowance for credit losses on available-for-sale investments rather than reducing the amortized cost in an other-than-temporary impairment. The Company has chosen the practical expedient to exclude accrued interest from both the fair value and the amortized cost basis of available-for-sale debt securities in identifying and measuring an impairment. The Company adopted the standard on January 1, 2020. The adoption of this standard did not have a material impact on the Company's balance sheets, statements of operations or statements of cash flows. In August 2018, the FASB issued ASU 2018-15 which includes provisions to clarify customer's accounting for implementation costs incurred in a cloud computing arrangement. Under the updated guidance, a customer in a cloud computing arrangement that is a service contract should follow the internal-use software guidance to determine how to account for costs incurred in implementation. The updated guidance also requires certain classification on the balance sheets, statements of operations and statements of cash flows as well as additional quantitative and qualitative disclosures. The Company adopted the standard effective January 1, 2020 and has chosen to adopt the standard prospectively. Implementation costs for cloud computing arrangements are capitalized in "Other prepaid and current assets" on the Company's balance sheets. The adoption of this standard did not have a material impact to the Company's balance sheets, statements of operations or statements of cash flows. There have been no other material changes to the significant accounting policies previously disclosed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019.

- Definition

Disclosure of inventory accounting policy for inventory classes, including, but not limited to, basis for determining inventory amounts, methods by which amounts are added and removed from inventory classes, loss recognition on impairment of inventories, and situations in which inventories are stated above cost.

+ References + Details

Inventories (Tables)

9 Months Ended

Sep. 30, 2020

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories as of September 30, 2020 and December 31, 2019 consist of the following (in thousands):


	September 30, 2020		December 31, 2019
Raw materials	$	4,103	—
Work in process	4,541		—
Finished goods	417		—
	$	9,061	$	—

Investments (Tables)

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Schedule of Company's Cash Equivalents and Short-Term Investments

The following table summarizes the Company’s cash equivalents and short-term investments:


	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousand)
Cash equivalents:
Money market funds	$	206,147	$	—	$	—	$	206,147


Total	$	206,147	$	—	$	—	$	206,147


	December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in thousands)
Cash equivalents:
Money market funds	$	20,970	$	—	$	—	$	20,970
U.S. treasury notes	2,497		—		—		2,497
Commercial paper	4,494		—		—		4,494
Short-term investments:
Certificates of deposit	245		—		—		245
U.S treasury notes	29,155		23		—		29,178
Commercial paper	5,228		—		—		5,228
Total	$	62,589	$	23	$	—	$	62,612

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of the Company's Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table presents the Company’s financial assets that have been measured at fair value on a recurring basis:


Description	Total		Level 1		Level 2		Level 3

September 30, 2020
Assets:
Money market funds	$	206,147	$	206,147	$	—	$	—


Total assets at fair value	$	206,147	$	206,147	$	—	$	—
December 31, 2019
Assets:
Money market funds	$	20,970	$	20,970	$	—	$	—
Investments:
Certificates of deposit	245		245		—		—
U.S. treasury notes	31,675		31,675		—		—
Commercial paper	9,722		—		9,722		—
Total assets at fair value	$	62,612	$	52,890	$	9,722	$	—

Liability Related to the Revenue Interest Purchase Agreement (Tables)

9 Months Ended

Sep. 30, 2020

Summary of Revenue Interest Liability Activity During the Period

The following table summarizes the revenue interest liability activity during the nine months ended September 30, 2020:


	(in thousands)
Revenue interest liability at December 31, 2019	$	132,544
Oberland funding for regulatory approval of NEXLETOL	25,000
Interest expense recognized	13,739
Revenue Interests payments	(110)
Revenue interest liability at September 30, 2020	$	171,173

Other Accrued Liabilities (Tables)

9 Months Ended

Sep. 30, 2020

Payables and Accruals [Abstract]

Schedule of Other Accrued Liabilities

Other accrued liabilities consist of the following:


	September 30, 2020	December 31, 2019
	(in thousands)
Accrued compensation	12,156	7,818
Accrued professional fees	5,958	3,842

Accrued other	3,344	211
Total other accrued liabilities	21,458	11,871

Stock Compensation (Tables)

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Abstract]

Summary of Activity Relating to the Company's Options to Purchase Common Stock

The following table summarizes the activity relating to the Company’s options to purchase common stock for the nine months ended September 30, 2020:


	Number of Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Outstanding at December 31, 2019	4,677,929	$	39.31	6.82	$	109,054
Granted	234,940	$	61.14
Forfeited or expired	(213,484)	$	55.55
Exercised	(270,735)	$	23.62
Outstanding at September 30, 2020	4,428,650	$	40.65	5.84	$	38,247

Summary of Information About the Company's Stock Option Plan

The following table summarizes information about the Company’s stock option plan as of September 30, 2020:


	Number of Options	Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
					(in thousands)
Vested and expected to vest at September 30, 2020	4,428,650	$	40.65	5.84	$	38,247
Exercisable at September 30, 2020	3,274,100	$	36.40	5.01	$	36,798

Summary of Activity Relating to the Company's RSUs

The following table summarizes the activity relating to the Company’s RSUs for the nine months ended September 30, 2020:


	Number of RSUs	Weighted-Average Fair Value Per Share
Outstanding and unvested December 31, 2019	245,966	$	44.45
Granted	347,733	$	51.42
Forfeited	(48,437)	$	45.07
Vested	(87,652)	$	48.78
Outstanding and unvested September 30, 2020	457,610	$	48.85

Leases (Tables)

9 Months Ended

Sep. 30, 2020

Leases [Abstract]

Schedule of Future Maturities of Operating Lease Liabilities

The following table summarizes the Company’s future maturities of operating lease liabilities as of September 30, 2020:


	(in thousands)
2020 (remaining)	$	719
2021	2,772
2022	2,725
2023	820
2024	—
Total lease payments	7,036
Less imputed interest	300
Total	$	6,736

Net Loss Per Common Share (Tables)

9 Months Ended

Sep. 30, 2020

Earnings Per Share [Abstract]

Schedule of Shares Excluded From Calculation of Diluted Net Loss Per Share

The shares outstanding at the end of the respective periods presented below were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:


	Three and Nine Months Ended September 30,
	2020	2019
Common shares under option	4,428,650	5,093,262
Unvested RSUs	457,610	192,204
Total potential dilutive shares	4,886,260	5,285,466

Statements of Cash Flows (Tables)

9 Months Ended

Sep. 30, 2020

Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]

Reconciliation of Cash and Cash Equivalents and Restricted Cash


	September 30, 2020		September 30, 2019		December 31, 2019		December 31, 2018
Cash and cash equivalents	$	215,748	$	211,978	$	166,130	$	36,973
Restricted cash	—		928		928		—
Total cash and cash equivalents and restricted cash shown on the condensed statements of cash flows	$	215,748	$	212,906	$	167,058	$	36,973

The Company and Basis of Presentation (Details) - USD ($) $ in Millions		1 Months Ended
	Apr. 17, 2020	Jun. 30, 2020
Exclusive Development and Commercialization Rights to NEXLETOL and NEXLIZET Tablets \| Otsuka Pharmaceutical Co, Ltd.
The Company and Basis of Presentation
Upfront cash payment	$ 60.0
Potential additional future payments	$ 450.0
Exclusive Development and Commercialization Rights to NEXLETOL and NEXLIZET Tablets \| Otsuka Pharmaceutical Co, Ltd. \| Minimum
The Company and Basis of Presentation
Percentage of royalties to be received on the net sales	15.00%
Exclusive Development and Commercialization Rights to NEXLETOL and NEXLIZET Tablets \| Otsuka Pharmaceutical Co, Ltd. \| Maximum
The Company and Basis of Presentation
Percentage of royalties to be received on the net sales	30.00%
Amended License and Collaboration Agreement \| Daiichi Sankyo Europe GmbH ("DSE")
The Company and Basis of Presentation
Proceeds received upon completion of NUSTENDI MAA transfer		$ 150.0

Summary of Significant Accounting Policies (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2020 USD ($) customer revenue_source	Sep. 30, 2019 USD ($)
Summary of Significant Accounting Policies
Number of revenue sources \| revenue_source			2
Revenue	$ 3,833	$ 981	$ 217,909	$ 147,382
Product sales, net
Summary of Significant Accounting Policies
Revenue	$ 3,331	$ 0	$ 4,798	$ 0
Trade Receivables \| Customer Concentration Risk
Summary of Significant Accounting Policies
Number of major customers \| customer			10

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 40
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Paragraph 22
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
-Paragraph 22
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
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-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Collaborations with Third Parties (Details) - USD ($)			1 Months Ended	3 Months Ended		9 Months Ended
Collaborations with Third Parties (Details) - USD ($)	Apr. 17, 2020	Jan. 02, 2019	Jun. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Collaborations with Third Parties
Total Revenues				$ 3,833,000	$ 981,000	$ 217,909,000	$ 147,382,000
Collaboration revenue
Collaborations with Third Parties
Total Revenues				502,000	981,000	213,111,000	147,382,000
Daiichi Sankyo Europe GmbH ("DSE") \| Regulatory performance obligations
Collaborations with Third Parties
Upfront payment, revenue recognized					$ 1,000,000.0	1,600,000	$ 147,400,000
Daiichi Sankyo Europe GmbH ("DSE") \| NUSTENDI, MAA
Collaborations with Third Parties
Total Revenues						150,000,000.0
Daiichi Sankyo Europe GmbH ("DSE") \| NILEMDO and NUSTENDI, sales of bulk tablets
Collaborations with Third Parties
Total Revenues				500,000		1,500,000
License and Collaboration Agreement \| Daiichi Sankyo Europe GmbH ("DSE")
Collaborations with Third Parties
Upfront cash payment		$ 150,000,000.0
Cash payment to the Company upon first commercial sales in the DSE Territory		$ 150,000,000.0
License and Collaboration Agreement \| Daiichi Sankyo Europe GmbH ("DSE") \| Minimum
Collaborations with Third Parties
Percentage of royalties to be received on the net sales		15.00%
License and Collaboration Agreement \| Daiichi Sankyo Europe GmbH ("DSE") \| Maximum
Collaborations with Third Parties
Percentage of royalties to be received on the net sales		25.00%
Amended License and Collaboration Agreement \| Daiichi Sankyo Europe GmbH ("DSE")
Collaborations with Third Parties
Proceeds received upon completion of NUSTENDI MAA transfer			$ 150,000,000.0
Exclusive Development and Commercialization Rights to NEXLETOL and NEXLIZET Tablets \| Otsuka Pharmaceutical Co, Ltd.
Collaborations with Third Parties
Upfront cash payment	$ 60,000,000.0
Potential additional future payments	$ 450,000,000.0
Exclusive Development and Commercialization Rights to NEXLETOL and NEXLIZET Tablets \| Otsuka Pharmaceutical Co, Ltd. \| Minimum
Collaborations with Third Parties
Percentage of royalties to be received on the net sales	15.00%
Exclusive Development and Commercialization Rights to NEXLETOL and NEXLIZET Tablets \| Otsuka Pharmaceutical Co, Ltd. \| Maximum
Collaborations with Third Parties
Percentage of royalties to be received on the net sales	30.00%
Milestone payment, first JNDA submissions	$ 20,000,000.0
Milestone payment, first NHI Price Listing for NEXLETOL in the Otsuka Territory	70,000,000.0
Milestone payment, achievement of the primary MACE in the CLEAR Outcomes study and CV risk reduction rate on the U.S. label	50,000,000.0
Milestone payments related to total net sales achievements	$ 310,000,000.0
Exclusive Development and Commercialization Rights to NEXLETOL and NEXLIZET Tablets \| Otsuka Pharmaceutical Co, Ltd. \| Collaboration revenue
Collaborations with Third Parties
Total Revenues				$ 0		$ 60,000,000.0

Inventories (Details) - USD ($) $ in Thousands	9 Months Ended
Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Inventories
Raw materials	$ 4,103	$ 0
Work in process	4,541	0
Finished goods	417	0
Total Inventory	$ 9,061	$ 0
Inventory supplies of NEXLETOL and NEXLIZET
Inventories
Initial agreement term	3 years
Renewal periods	1 year
Rolling period for minimum purchase order commitments	12 months

Investments - Summary of Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Investments
Amortized Cost	$ 206,147	$ 62,589
Gross Unrealized Gains	0	23
Gross Unrealized Losses	0	0
Estimated Fair Value	206,147	62,612
Money market funds \| Cash Equivalents
Investments
Amortized Cost	206,147	20,970
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value	$ 206,147	20,970
Certificates of deposit \| Short-term Investments
Investments
Amortized Cost		245
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Estimated Fair Value		245
U.S. treasury notes \| Cash Equivalents
Investments
Amortized Cost		2,497
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Estimated Fair Value		2,497
U.S. treasury notes \| Short-term Investments
Investments
Amortized Cost		29,155
Gross Unrealized Gains		23
Gross Unrealized Losses		0
Estimated Fair Value		29,178
Commercial paper \| Cash Equivalents
Investments
Amortized Cost		4,494
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Estimated Fair Value		4,494
Commercial paper \| Short-term Investments
Investments
Amortized Cost		5,228
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Estimated Fair Value		$ 5,228

Investments - Narrative (Details) - USD ($)	3 Months Ended		9 Months Ended
Investments - Narrative (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Investments
Accretion of premiums and discounts on investments			$ (97,000)	$ (140,000)
Other income, net	$ 42,000	$ 1,387,000	491,000	2,914,000
Allowance for credit loss	0		0
Accrued interest receivable	0		0
Reclassification out of Accumulated Other Comprehensive Income
Investments
Other income, net			0	0
Other Nonoperating Income (Expense)
Investments
Interest income on investments		1,200,000	500,000	2,600,000
Accretion of premiums and discounts on investments		$ 200,000	$ 100,000	$ 300,000
Other Nonoperating Income (Expense) \| Maximum
Investments
Interest income on investments	100,000
Accretion of premiums and discounts on investments	$ 100,000

Fair Value Measurements (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair value measurements
Estimated Fair Value	$ 206,147	$ 62,612
Recurring fair value measurement
Fair value measurements
Estimated Fair Value	206,147	62,612
Recurring fair value measurement \| Money market funds
Fair value measurements
Estimated Fair Value	206,147	20,970
Recurring fair value measurement \| Certificates of deposit
Fair value measurements
Estimated Fair Value		245
Recurring fair value measurement \| U.S. treasury notes
Fair value measurements
Estimated Fair Value		31,675
Recurring fair value measurement \| Commercial paper
Fair value measurements
Estimated Fair Value		9,722
Recurring fair value measurement \| Level 1
Fair value measurements
Estimated Fair Value	206,147	52,890
Recurring fair value measurement \| Level 1 \| Money market funds
Fair value measurements
Estimated Fair Value	206,147	20,970
Recurring fair value measurement \| Level 1 \| Certificates of deposit
Fair value measurements
Estimated Fair Value		245
Recurring fair value measurement \| Level 1 \| U.S. treasury notes
Fair value measurements
Estimated Fair Value		31,675
Recurring fair value measurement \| Level 1 \| Commercial paper
Fair value measurements
Estimated Fair Value		0
Recurring fair value measurement \| Level 2
Fair value measurements
Estimated Fair Value	0	9,722
Recurring fair value measurement \| Level 2 \| Money market funds
Fair value measurements
Estimated Fair Value	0	0
Recurring fair value measurement \| Level 2 \| Certificates of deposit
Fair value measurements
Estimated Fair Value		0
Recurring fair value measurement \| Level 2 \| U.S. treasury notes
Fair value measurements
Estimated Fair Value		0
Recurring fair value measurement \| Level 2 \| Commercial paper
Fair value measurements
Estimated Fair Value		9,722
Recurring fair value measurement \| Level 3
Fair value measurements
Estimated Fair Value	0	0
Recurring fair value measurement \| Level 3 \| Money market funds
Fair value measurements
Estimated Fair Value	$ 0	0
Recurring fair value measurement \| Level 3 \| Certificates of deposit
Fair value measurements
Estimated Fair Value		0
Recurring fair value measurement \| Level 3 \| U.S. treasury notes
Fair value measurements
Estimated Fair Value		0
Recurring fair value measurement \| Level 3 \| Commercial paper
Fair value measurements
Estimated Fair Value		$ 0

Liability Related to the Revenue Interest Purchase Agreement - Narrative (Details) - USD ($)		1 Months Ended		3 Months Ended		9 Months Ended
	Jun. 26, 2019	Mar. 31, 2020	Jun. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Liability Related to the Revenue Interest Purchase Agreement
Proceeds from revenue interest liability						$ 25,000,000	$ 124,424,000
Revenue interest liability				$ 171,173,000		171,173,000		$ 132,544,000
Interest expense				4,928,000	$ 3,996,000	13,739,000	$ 3,996,000
Revenue Interest Purchase Agreement (RIPA)
Liability Related to the Revenue Interest Purchase Agreement
Revenue interest liability				171,200,000		171,200,000
Capitalized issuance costs						500,000
Interest expense				4,900,000		$ 13,700,000
Revenue Interest Purchase Agreement (RIPA) \| Oberland
Liability Related to the Revenue Interest Purchase Agreement
Gross proceeds from revenue interest liability	$ 125,000,000.0
Total amount of subsequent installment, subject to RIPA terms and conditions	75,000,000.0
Amount of subsequent installment, subject to regulatory approval	25,000,000.0
Amount of subsequent installment, subject to achievement of sales threshold	50,000,000.0
Milestone amount for worldwide sales to receive the third payment	$ 100,000,000.0
Consecutive number of months sales must be at or above milestone amount	6 months
Proceeds from revenue interest liability		$ 25,000,000.0
Revenue interest rate which will take effect if annual net sales equals or exceeds the sales threshold by December 31, 2021	2.50%
Initial revenue interest rate	7.50%
Minimum amount of annual net sales to qualify for reduced revenue interest rate by December 31, 2021	$ 350,000,000.0
Percentage of invested capital received by December 31, 2024, to qualify for second reduced revenue interest rate	100.00%
Revenue interest rate if annual net sales equal or exceed the Sales Threshold and if the Purchasers receive 100% of their invested capital by December 31, 2024	0.40%
Percentage of increase in royalty rate upon drawdown of third payment	33.33%
Percentage of revenue interests payment on which agreement terminates	195.00%
Percentage of revenue interests payment on which agreement terminates, if prior to the anniversary of the closing date, if put option is exercised	120.00%
Percentage of revenue interests payment on which agreement terminates, prior to the third anniversary of the closing date, if put option is exercised	175.00%
Percentage of revenue interests payment on which agreement terminates, after the third anniversary of the closing date, if put option is exercised	195.00%
Capitalized issuance costs			$ 600,000
Effective annual imputed interest rate (as a percent)						14.80%
Repayment amount expected to pay in next twelve months				$ 10,900,000		$ 10,900,000
Revenue Interest Purchase Agreement (RIPA) \| Oberland \| Net Sales Less Than $250 Million
Liability Related to the Revenue Interest Purchase Agreement
Initial revenue interest rate	7.50%
Minimum amount of annual net sales to qualify for reduced revenue interest rate by December 31, 2021	$ 250,000,000
Hypothetical sales generated amount	100,000,000
Hypothetical repayment obligation	$ 7,500,000
Revenue Interest Purchase Agreement (RIPA) \| Oberland \| Net Sales Greater Than $250 Million But Less Than $350 Million
Liability Related to the Revenue Interest Purchase Agreement
Revenue interest rate which will take effect if annual net sales equals or exceeds the sales threshold by December 31, 2021	2.50%
Minimum amount of annual net sales to qualify for reduced revenue interest rate by December 31, 2021	$ 250,000,000
Hypothetical sales generated amount	100,000,000
Hypothetical repayment obligation	2,500,000
Revenue Interest Purchase Agreement (RIPA) \| Oberland \| Net Sales Greater Than $350 Million
Liability Related to the Revenue Interest Purchase Agreement
Minimum amount of annual net sales to qualify for reduced revenue interest rate by December 31, 2021	350,000,000
Hypothetical sales generated amount	100,000,000
Hypothetical repayment obligation	$ 2,500,000

Liability Related to the Revenue Interest Purchase Agreement - Summary of Revenue Interest Liability (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Liability From Sale Of Future Revenues [Roll Forward]
Revenue interest liability at December 31, 2019	$ 132,544
Oberland funding for regulatory approval of NEXLETOL	25,000
Revenue Interests payments	(110)	$ 0
Revenue interest liability at September 30, 2020	171,173
Revenue Interest Purchase Agreement (RIPA)
Liability From Sale Of Future Revenues [Roll Forward]
Interest expense recognized	13,739
Revenue interest liability at September 30, 2020	$ 171,200

Other Accrued Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Payables and Accruals [Abstract]
Accrued compensation	$ 12,156	$ 7,818
Accrued professional fees	5,958	3,842
Accrued other	3,344	211
Total other accrued liabilities	$ 21,458	$ 11,871

Stock Compensation - Employee Stock Purchase Plan (Details) - Employee Stock - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended
	Apr. 30, 2020	Sep. 30, 2020	Sep. 30, 2020
Employee Stock Purchase Plan
Maximum annual contributions per employee, as a percentage of base salary	10.00%
Amount of maximum annual contributions per employee	$ 25,000
Purchase discount	15.00%
Duration of offering periods	6 months
Stock-based compensation expense		$ 100,000	$ 100,000
Shares reserved for future issuance (in shares)		825,000	825,000

Stock Compensation - Schedule of Stock Options (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares
Number of Options
Outstanding at the beginning of period (in shares) \| shares	4,677,929
Granted (in shares) \| shares	234,940
Forfeited or expired (in shares) \| shares	(213,484)
Exercised (in shares) \| shares	(270,735)
Outstanding at the end of the period (in shares) \| shares	4,428,650	4,677,929
Vested and expected to vest (in shares) \| shares	4,428,650
Exercisable (in shares) \| shares	3,274,100
Weighted-Average Exercise Price Per Share
Outstanding at the beginning of period (in dollars per share) \| $ / shares	$ 39.31
Granted (in dollars per share) \| $ / shares	61.14
Forfeited or expired (in dollars per share) \| $ / shares	55.55
Exercised (in dollars per share) \| $ / shares	23.62
Outstanding at the end of the period (in dollars per share) \| $ / shares	40.65	$ 39.31
Vested and expected to vest (in dollars per share) \| $ / shares	40.65
Exercisable (in dollars per share) \| $ / shares	$ 36.40
Weighted-Average Remaining Contractual Term (Years)
Outstanding	5 years 10 months 2 days	6 years 9 months 25 days
Vested and expected to vest	5 years 10 months 2 days
Exercisable	5 years 3 days
Aggregate Intrinsic Value
Outstanding \| $	$ 38,247	$ 109,054
Vested and expected to vest \| $	38,247
Exercisable \| $	$ 36,798

Stock Compensation - Stock Options Additional Information (Details) - Stock Options - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stock compensation
Stock-based compensation expense	$ 5.1	$ 5.5	$ 16.2	$ 18.1
Stock-based compensation capitalized into inventory			0.5
Unrecognized stock-based compensation expense, options	37.5		$ 37.5
Weighted-average period over which remaining unrecognized compensation cost will be recognized			2 years 2 months 12 days
Maximum
Stock compensation
Stock-based compensation capitalized into inventory	$ 0.1

Stock Compensation - RSUs (Details) - RSUs	9 Months Ended
Stock Compensation - RSUs (Details) - RSUs	Sep. 30, 2020 $ / shares shares
Number of RSUs
Outstanding and unvested at the beginning of period (in shares) \| shares	245,966
Granted (in shares) \| shares	347,733
Forfeited or expired (in shares) \| shares	(48,437)
Vested (in shares) \| shares	(87,652)
Outstanding and unvested at the ending of period (in shares) \| shares	457,610
Weighted-Average Fair Value Per Share
Outstanding and unvested at the beginning of period (in dollars per share) \| $ / shares	$ 44.45
Granted (in dollars per share) \| $ / shares	51.42
Forfeited or expired (in dollars per share) \| $ / shares	45.07
Vested (in dollars per share) \| $ / shares	48.78
Outstanding and unvested at the at the end of the period (in dollars per share) \| $ / shares	$ 48.85

Stock Compensation - RSUs Additional Information (Details) - RSUs - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Stock compensation
Stock-based compensation expense	$ 2.1	$ 0.8	$ 5.4	$ 1.4
Stock-based compensation capitalized into inventory			0.1
Unrecognized stock-based compensation expense, RSUs	19.5		$ 19.5
Weighted-average period over which remaining unrecognized compensation cost will be recognized			3 years
Maximum
Stock compensation
Stock-based compensation capitalized into inventory	$ 0.1

Leases (Details) - USD ($)	3 Months Ended		9 Months Ended
Leases (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Leases
Increase in right-of-use assets			$ 5,200,000
Increase in operating lease liabilities			5,200,000
Operating lease costs	$ 700,000	$ 100,000	1,500,000	$ 200,000
Cash paid for the amounts included in the measurement of lease liabilities	$ 700,000	$ 100,000	$ 1,500,000	200,000
Weighted-average remaining lease term of operating leases	2 years 7 months 6 days		2 years 7 months 6 days
Weighted average discount rate	3.50%		3.50%
Right of use assets obtained in exchange for lease obligations			$ 0	$ 0
Principal executive offices
Leases
Operating lease term	5 years		5 years
Automobile leases and IT equipment leases
Leases
Operating lease term	3 years		3 years

Leases - Summary of Future Maturities of Operating Lease Liabilities (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Leases [Abstract]
2020 (remaining)	$ 719
2021	2,772
2022	2,725
2023	820
2024	0
Total lease payments	7,036
Less imputed interest	300
Total	$ 6,736

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
Income Taxes (Details) - USD ($)	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Provision for income taxes
Provision for income taxes	$ 0	$ 0	$ 0	$ 0

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Net Loss Per Common Share (Details) - shares	3 Months Ended		9 Months Ended
Net Loss Per Common Share (Details) - shares	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Net Income (Loss) Per Common Share
Total potential dilutive shares (in shares)	4,886,260	5,285,466	4,886,260	5,285,466
Common shares under option
Net Income (Loss) Per Common Share
Total potential dilutive shares (in shares)	4,428,650	5,093,262	4,428,650	5,093,262
Unvested RSUs
Net Income (Loss) Per Common Share
Total potential dilutive shares (in shares)	457,610	192,204	457,610	192,204

Statements of Cash Flows (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 215,748	$ 166,130	$ 211,978	$ 36,973
Restricted cash	0	928	928	0
Total cash and cash equivalents and restricted cash shown on the condensed statements of cash flows	$ 215,748	$ 167,058	$ 212,906	$ 36,973