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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 30, 2019
Document and Entity Information
Entity Registrant Name	Theravance Biopharma, Inc.
Entity Central Index Key	0001583107
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		56,137,175
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 223,235	$ 378,021
Short-term marketable securities	210,823	127,255
Accounts receivable, net of allowances of $0 at March 31, 2019 and December 31, 2018	113	620
Receivables from collaborative arrangements	7,824	10,053
Prepaid taxes	310	310
Other prepaid and current assets	24,928	16,564
Total current assets	467,233	532,823
Property and equipment, net	12,899	13,176
Long-term marketable securities		11,869
Operating lease assets	48,861
Restricted cash	833	833
Other assets	1,439	1,534
Total assets	531,265	560,235
Current liabilities:
Accounts payable	5,596	9,028
Accrued personnel-related expenses	22,097	23,803
Accrued clinical and development expenses	9,207	11,876
Accrued interest payable	10,240	3,086
Non-recourse notes due 2033, net	8,300
Deferred revenue	42,515	43,402
Other accrued liabilities	15,587	7,359
Total current liabilities	113,542	98,554
Convertible senior notes due 2023, net	225,086	224,818
Non-recourse notes due 2033, net	221,402	229,535
Deferred rent		7,976
Operating lease liabilities	48,493
Long-term deferred revenue	21,733	26,179
Other long-term liabilities	14,261	24,762
Commitments and contingencies
Shareholders’ Deficit
Preferred shares, $0.00001 par value: 230 shares authorized, no shares issued or outstanding
Ordinary shares, $0.00001 par value: 200,000 shares authorized; 56,122 and 55,681 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively	1	1
Additional paid-in capital	971,508	960,721
Accumulated other comprehensive loss	(36)	(166)
Accumulated deficit	(1,084,725)	(1,012,145)
Total shareholders’ deficit	(113,252)	(51,589)
Total liabilities and shareholders’ deficit	$ 531,265	$ 560,235

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS
Accounts receivable, allowances	$ 0	$ 0
Preferred shares, par value (in dollars per share)	$ 0.00001	$ 0.00001
Preferred shares, shares authorized	230	230
Preferred shares, shares issued	0	0
Preferred shares, outstanding shares	0	0
Ordinary shares, par value (in dollars per share)	$ 0.00001	$ 0.00001
Ordinary shares, authorized shares	200,000	200,000
Ordinary shares, shares issued	56,122	55,681
Ordinary shares, outstanding shares	56,122	55,681

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue:
Revenue	$ 5,338	$ 8,319
Costs and expenses:
Cost of goods sold		826
Research and development	53,818	47,765
Selling, general and administrative	25,186	24,704
Total costs and expenses	79,004	73,295
Loss from operations	(73,666)	(64,976)
Income from investment in TRC, LLC	6,229	686
Interest expense	(7,858)	(2,137)
Interest and other income, net	2,795	1,484
Loss before income taxes	(72,500)	(64,943)
Provision for income tax expense	(80)	(144)
Net loss	(72,580)	(65,087)
Net unrealized gain (loss) on available-for-sale investments	130	(120)
Total comprehensive loss	$ (72,450)	$ (65,207)
Net loss per share:
Basic and diluted net loss per share (in dollars per share)	$ (1.32)	$ (1.22)
Shares used to compute basic and diluted net loss per share (in shares)	54,938	53,256
Share-based compensation expense	$ 12,220	$ 13,998
Research and development
Net loss per share:
Share-based compensation expense	6,159	6,559
Selling, general and administrative
Net loss per share:
Share-based compensation expense	6,061	7,439
Product
Revenue:
Revenue		3,679
Collaborative revenue
Revenue:
Revenue	$ 5,338	$ 4,640

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (DEFICIT) - USD ($) shares in Thousands, $ in Thousands	Ordinary Shares	Additional Paid-in Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
Balances at Dec. 31, 2017	$ 1	$ 913,650	$ (733)	$ (797,740)	$ 115,178
Balances (in shares) at Dec. 31, 2017	54,381
Increase (Decrease) in Stockholders' Equity
Employee share-based compensation expense		13,998			13,998
Issuance of restricted shares (in shares)	415
Option exercises		35			35
Option exercises (in shares)	2
Cumulative effect upon the adoption of ASC 606				1,119	1,119
Repurchase of shares to satisfy tax withholding		(1,715)			(1,715)
Net unrealized gain (loss) on marketable securities			(120)		(120)
Net loss				(65,087)	(65,087)
Balances at Mar. 31, 2018	$ 1	925,968	(853)	(861,708)	63,408
Balances (in shares) at Mar. 31, 2018	54,798
Balances at Dec. 31, 2018	$ 1	960,721	(166)	(1,012,145)	$ (51,589)
Balances (in shares) at Dec. 31, 2018	55,681				55,681
Increase (Decrease) in Stockholders' Equity
Employee share-based compensation expense		12,220			$ 12,220
Issuance of restricted shares (in shares)	426
Option exercises		254			254
Option exercises (in shares)	15
Repurchase of shares to satisfy tax withholding		(1,687)			(1,687)
Net unrealized gain (loss) on marketable securities			130		130
Net loss				(72,580)	(72,580)
Balances at Mar. 31, 2019	$ 1	$ 971,508	$ (36)	$ (1,084,725)	$ (113,252)
Balances (in shares) at Mar. 31, 2019	56,122				56,122

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Operating activities
Net loss	$ (72,580)	$ (65,087)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	1,316	1,007
Amortization and accretion income, net	(629)	(107)
Share-based compensation	12,220	13,998
Amortization of right-of-use assets	986
Undistributed earnings from investment in TRC, LLC	(6,229)	(493)
Other	16	(397)
Changes in operating assets and liabilities:
Accounts receivable	507	280
Receivables from collaborative arrangements	2,229	4,264
Other prepaid and current assets	(2,135)	(1,578)
Inventories		(371)
Tax receivable		5,092
Accounts payable	(3,440)	(449)
Accrued personnel-related expenses, accrued clinical and development expenses, and other accrued liabilities	(7,284)	(5,076)
Deferred rent		2,104
Deferred revenue	(5,333)	95,371
Long-term portion of lease liabilities	(910)
Other long-term liabilities	73	1,267
Net cash (used in) provided by operating activities	(81,193)	49,825
Investing activities
Purchases of property and equipment	(1,220)	(2,771)
Purchases of marketable securities	(148,138)	(54,839)
Maturities of marketable securities	77,198	46,299
Proceeds from the sale of fixed assets		17
Net cash used in investing activities	(72,160)	(11,294)
Financing activities
Proceeds from option exercises	254	35
Repurchase of shares to satisfy tax withholding	(1,687)	(1,715)
Net cash used in financing activities	(1,433)	(1,680)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(154,786)	36,851
Cash, cash equivalents, and restricted cash at beginning of period	378,854	89,813
Cash, cash equivalents, and restricted cash at end of period	224,068	126,664
Supplemental disclosure of cash flow information
Cash received (paid) for income taxes, net		$ 4,473
Right-of-use assets obtained in exchange for lease obligations (1)	$ 49,847

Organization and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2019
Organization and Summary of Significant Accounting Policies
Organization and Summary of Significant Accounting Policies	1. Organization and Summary of Significant Accounting Policies Theravance Biopharma, Inc. (“Theravance Biopharma” or the “Company”) is a diversified biopharmaceutical company primarily focused on the discovery, development and commercialization of organ-selective medicines. Our purpose is to create transformational medicines to improve the lives of patients suffering from serious illnesses. Our research is focused in the areas of inflammation and immunology. Basis of Presentation The Company’s condensed consolidated financial information as of March 31, 2019, and the three months ended March 31, 2019 and 2018 is unaudited but includes all adjustments (consisting only of normal recurring adjustments), which are considered necessary for a fair presentation of the financial position at such date and of the operating results and cash flows for those periods, and have been prepared in accordance with US generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated December 31, 2018 financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2019. The results for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019, for any other interim period or for any future period. These condensed consolidated financial statements include the accounts of the Company and its subsidiaries, and intercompany transactions and balances have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates. Significant Accounting Policies Other than the recently adopted accounting pronouncements below, there have been no material revisions in the Company’s significant accounting policies described in Note 1 to the consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2018. Recently Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”) under the required modified retrospective approach. ASU 2016‑02 was aimed at making leasing activities more transparent and comparable, and requires leases with terms greater than one year to be recognized by lessees on their balance sheet as a right‑of‑use asset and corresponding lease liability. The Company elected the optional transition method to initially account for the impact of the adoption with a cumulative adjustment to accumulated deficit, if any, on the effective date of ASU 2016-02 of January 1, 2019, rather than applying the transition provisions in the earliest period presented, and the Company elected a package of practical expedients that allowed entities to not (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases; and (iii) reassess initial direct costs for any existing leases. In addition, the Company elected other practical expedients that allowed entities to (i) use hindsight in determining the term of a lease when the lease includes an option to extend the lease term; (ii) exclude all leases, on a go forward basis, that have a lease term of 12-month or less; and (iii) combine lease and non-lease components (e.g., office common area maintenance expenses) when recognizing a lease on an entity’s balance sheet on a go forward basis. As a result of the adoption of ASU 2016-02, on January 1, 2019, the Company recorded a right-of-use operating lease asset of $48.3 million and an operating lease liability of $56.3 million related to its office leases in South San Francisco, California and Dublin, Ireland. The lease liability included $8.0 million related to deferred rent liabilities. The adoption of ASU 2016-02 did not have an impact on the Company’s results of operations, lease expense, or cash flows. Effective January 1, 2019, the Company adopted ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 was issued to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The amendments in ASU 2017-09 provided guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Essentially, an entity will not have to account for the effects of a modification if: (1) the fair value of the modified award is the same immediately before and after the modification; (2) the vesting conditions of the modified award are the same immediately before and after the modification; and (3) the classification of the modified award as either an equity instrument or liability instrument is the same immediately before and after the modification. The adoption of ASU 2017-09 did not have a material impact upon the Company’s condensed consolidated financial statements and related disclosures as of January 1, 2019. Effective January 1, 2019, the Company adopted the new final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Company has included condensed consolidated statements of shareholders’ equity (deficit) in this Form 10-Q for the three month periods ended March 31, 2019 and 2018. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13"). This guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability. ASU 2016-13 also eliminates the concept of “other-than-temporary” impairment when evaluating available-for-sale debt securities and instead focuses on determining whether any impairment is a result of a credit loss or other factors. An entity will recognize an allowance for credit losses on available-for-sale debt securities rather than an other-than-temporary impairment that reduces the cost basis of the investment. ASU 2016-13 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2019. The Company does not currently expect ASU 2016-13 to have a material impact on its consolidated financial statements and related disclosures based on the historical high credit quality of the Company’s financial instruments. The Company is currently evaluating other recently issued accounting pronouncements and does not currently believe that any of those pronouncements will have a material impact on its consolidated financial statements and related disclosures.

Net Loss per Share

3 Months Ended

Mar. 31, 2019

Net Loss per Share

Net Loss per Share

2. Net Loss per Share

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of outstanding, less ordinary shares subject to forfeiture. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares outstanding, less ordinary shares subject to forfeiture, plus all additional ordinary shares that would have been outstanding, assuming dilutive potential ordinary shares had been issued for other dilutive securities.

For the three months ended March 31, 2019 and 2018, diluted and basic net loss per share was identical since potential ordinary shares were excluded from the calculation, as their effect was anti-dilutive.

Anti-dilutive Securities

The following ordinary equivalent shares were not included in the computation of diluted net loss per share because their effect was anti-dilutive:


	Three Months Ended
	March 31,
(In thousands)	2019	2018
Share issuances under equity incentive plans and ESPP	5,481	3,916
Restricted shares	1	5
Share issuances upon the conversion of convertible senior notes	6,676	6,676
Total	12,158	10,597

In addition, there were 468,000 and 1,305,000 shares that are subject to performance‑based vesting criteria which have been excluded from the ordinary equivalent shares table above as of March 31, 2019 and 2018, respectively.

Collaborative Arrangements

3 Months Ended

Mar. 31, 2019

Collaborative Arrangements

Collaborative Arrangements

3. Collaborative Arrangements

Revenue from Collaborative Arrangements

The Company recognized revenues from its collaborative arrangements as follows:


	Three Months Ended
	March 31,
(In thousands)	2019		2018
Janssen	$	5,323	$	4,613
Other		15		27
Total collaboration revenue	$	5,338	$	4,640

Changes in Deferred Revenue Balances

The Company recognized the following revenue from collaborative arrangements as a result of changes in its deferred revenue balance during the periods below:


	Three Months Ended
	March 31,
(In thousands)	2019		2018
Collaboration revenue recognized in the period from:
Amounts included in deferred revenue at the beginning of the period	$	5,333	$	16
Performance obligations satisfied in previous period		—		—

Janssen Biotech

In February 2018, the Company entered into a global co-development and commercialization agreement with Janssen Biotech, Inc. (“Janssen”) for TD-1473 and related back-up compounds for inflammatory intestinal diseases, including ulcerative colitis and Crohn’s disease (the “Janssen Agreement”). Under the terms of the Janssen Agreement, the Company received an upfront payment of $100.0 million. The Company is conducting a Phase 2 (DIONE) study of TD-1473 in Crohn’s disease and a Phase 2b/3 (RHEA) induction and maintenance study of TD-1473 in ulcerative colitis. Following the initial Phase 2 development period, including the completion of the Phase 2 Crohn’s study and the Phase 2b induction portion of the ulcerative colitis study, Janssen can elect to obtain an exclusive license to develop and commercialize TD-1473 and certain related compounds by paying us a fee of $200.0 million. Upon any such election, the Company and Janssen will jointly develop and commercialize TD-1473 in inflammatory intestinal diseases and share profits in the US and expenses related to a potential Phase 3 program (67% to Janssen; 33% to Theravance Biopharma). The Company would receive royalties on ex-US sales at double-digit tiered percentage royalty rates, and the Company would be eligible to receive up to an additional $700.0 million in development and commercialization milestone payments from Janssen.

The Janssen Agreement is considered to be within the scope of Accounting Standards Codification, Topic 808, Collaborative Arrangements (“ASC 808”), as the parties are active participants and exposed to the risks and rewards of the collaborative activity. The Company evaluated the terms of the Janssen Agreement and have analogized to Accounting Standards Codification, Topic 606, Revenue from Contracts with Customers (“ASC 606”) for the research and development activities to be performed through the initial Phase 2 development period of the collaborative arrangement that are considered to be part of the Company’s ongoing major or central operations. Using the concepts of ASC 606, the Company has identified research and development activities as its only performance obligation. The Company further determined that the transaction price under the arrangement was the $100.0 million upfront payment which was allocated to the single performance obligation.

The $900.0 million in future potential payments is considered variable consideration if Janssen elects to remain in the collaboration arrangement following completion of the initial Phase 2 development period, as described above and, as such, was not included in the transaction price, as the potential payments were all determined to be fully constrained under ASC 606. As part of the Company’s evaluation of this variable consideration constraint, it determined that the potential payments are contingent upon developmental and regulatory milestones that are uncertain and are highly susceptible to factors outside of its control. The Company expects that any consideration related to royalties and sales-based milestones will be recognized when the subsequent sales occur.

For the three months ended March 31, 2019 and 2018, the Company recognized $5.3 million and $4.6 million, respectively, as revenue from collaboration arrangements related to the Janssen Agreement. The remaining transaction price of $63.6 million was recorded in deferred revenue on the condensed consolidated balance sheets and is expected to be recognized as collaboration revenue as the research and development services are delivered over the initial Phase 2 development period. Collaboration revenue is recognized for the research and development services based on a measure of the Company’s efforts toward satisfying the performance obligation relative to the total expected efforts or inputs to satisfy the performance obligation (e.g., costs incurred compared to total budget). For the three months ended March 31, 2019 and 2018, the Company incurred $8.6 million and $6.5 million, respectively, in research and development costs related to the Janssen Agreement. In future reporting periods, the Company will reevaluate the Company’s estimates related to its efforts towards satisfying the performance obligation and may record a change in estimate if deemed necessary.

Mylan

Development and Commercialization Agreement

In January 2015, the Company and Mylan Ireland Limited (“Mylan”) established a strategic collaboration (the “Mylan Agreement”) for the development and commercialization of revefenacin, including YUPELRI® (revefenacin) inhalation solution. The Company entered into the collaboration to expand the breadth of its revefenacin development program and extend its commercial reach beyond the hospital setting.

Under the Mylan Agreement, Mylan paid the Company an up-front fee of $15.0 million for the delivery of the revefenacin license in 2015 and, in 2016, Mylan paid the Company a milestone payment $15.0 million for the achievement of 50% enrollment in the Phase 3 twelve-month safety study. Separately, pursuant to an agreement to purchase ordinary shares entered into on January 30, 2015, Mylan Inc., a subsidiary of Mylan N.V., made a $30.0 million equity investment in the Company, buying 1,585,790 ordinary shares from the Company in February 2015 in a private placement transaction at a price of approximately $18.918 per share, which represented a 10% premium, equal to $4.2 million, over the volume weighted average price per share of the Company’s ordinary shares for the five trading days ending on January 30, 2015.

As of March 31, 2019, the Company is eligible to receive from Mylan additional potential development, regulatory and sales milestone payments totaling up to $205.0 million in the aggregate, with $160.0 million associated with YUPELRI monotherapy, and $45.0 million associated with future potential combination products. Of the $160.0 million associated with monotherapy, $150.0 million relates to sales milestones based on achieving certain levels of net sales and $10.0 million relates to regulatory actions in the EU.

The Mylan Agreement is considered to be within the scope of ASC 808, as the parties are active participants and exposed to the risks and rewards of the collaborative activity. Under the terms of the Mylan Agreement, Mylan was responsible for reimbursement of the Company’s costs related to the registrational program up until the approval of the first new drug application in November 2018, thereafter, R&D expenses are shared. Performing R&D services for reimbursement is considered to be a collaborative activity under the scope of ASC 808. Reimbursable program costs are recognized proportionately with the performance of the underlying services and accounted for as reductions to R&D expense. For this unit of account, the Company did not recognize revenue or analogize to ASC 606 and, as such, the reimbursable program costs are excluded from the transaction price.

The Company analogized to ASC 606 for the accounting for two performance obligations: (1) delivery of the license to develop and commercialize revefenacin; and (2) joint steering committee participation. The Company determined the license to be distinct from the joint steering committee participation. The Company further determined that the transaction price under the arrangement was comprised of the following: (1) $15.0 million up-front license fee received in 2015; (2) $4.2 million premium related to the ordinary share purchase agreement received in 2015; and (3) $15.0 million milestone for 50% enrollment in the Phase 3 twelve-month safety study received in 2016. The total transaction price of $34.2 million was allocated to the two performance obligations based on the Company’s best estimate of the relative stand-alone selling price. For the delivery of the license, the Company based the stand-alone selling price on a discounted cash flow approach and considered several factors including, but not limited to: discount rate, development timeline, regulatory risks, estimated market demand and future revenue potential. For the committee participation, the Company based the stand-alone selling price on the average compensation of its committee members estimated to be incurred over the performance period. The Company expects to recognize collaboration revenue from the committee participation ratably over the performance period of approximately seventeen years.

The 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. As part of the Company’s evaluation of the development and regulatory milestones constraint, the Company determined that the achievement of such milestones are contingent upon success in future clinical trials and regulatory approvals which are not within its control and uncertain at this stage. The Company expects that the sales-based milestone payments and royalty arrangements will be recognized when the sales occur or the milestone is achieved. The Company will re-evaluate the transaction price each quarter and as uncertain events are resolved or other changes in circumstances occur.

As of March 31, 2019, $0.3 million was recorded in deferred revenue on the condensed consolidated balance sheets under the Mylan Agreement. This amount reflects revenue allocated to joint steering committee participation and will be recognized as collaboration revenue over the course of the remaining performance period of approximately thirteen years. The Company recognized approximately $6,000 in each three month period ended March 31, 2019 and 2018 as collaboration revenue from the recognition of previously deferred revenue under the Mylan collaborative arrangement.

The Company is also entitled to a share of US profits and losses (65% to Mylan; 35% to Theravance Biopharma) received in connection with commercialization of YUPELRI, and the Company is entitled to low double-digit royalties on ex-US net sales (excluding China). In China, the Company retains all rights to revefenacin in any dosage form. Mylan is the principal in the sales transactions, and as a result, the Company will not reflect the product sales in its financial statements. Net amounts payable to or receivable from Mylan each quarter under the profit sharing structure are disaggregated according to their individual components. The reimbursement received from Mylan for the Company’s R&D expense is characterized as a reduction of R&D expense, as the Company does not consider performing research and development services for reimbursement to be a part of its ongoing major or central operations. For the three months ended March 31, 2019 and 2018, the Company recorded $0.2 million and $1.9 million, respectively, as reductions to R&D expense related to the YUPELRI cost sharing payments with Mylan which were attributed to R&D services.

If in any reporting period, the arrangement results in a receivable from Mylan after the Company’s R&D expenses have been reimbursed, then such a receivable is recognized as profit sharing revenue. If in any reporting period, the arrangement results in a payable to Mylan after the Company’s R&D expenses have been reimbursed, then such payments are recognized as collaboration expenses within operating expenses. For the three months ended March 31, 2019, the arrangement resulted in a payable of $1.4 million to Mylan after the Company’s R&D expenses had been reimbursed and, consequently, this amount was recognized within operating expenses.

Reimbursement of R&D Expense

Under certain collaborative arrangements, we are entitled to reimbursement of certain R&D expense. Activities under collaborative arrangements for which we are entitled to reimbursement are considered to be collaborative activities under the scope of ASC 808. For these units of account, we do not analogize to ASC 606 or recognize revenue. We record reimbursement payments received from our collaboration partners as reductions to R&D expense.

The following table summarizes the reductions to R&D expenses related to the reimbursement payments:


	Three Months Ended
	March 31,
(In thousands)	2019		2018
Janssen	$	1,411	$	—
Mylan		203		1,850
Total reduction to R&D expense	$	1,614	$	1,850

Cash, Cash Equivalents, and Restricted Cash

3 Months Ended

Mar. 31, 2019

Cash, Cash Equivalents, and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash

4. Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the same such amount shown on the condensed consolidated statements of cash flows.


	March 31,
(In thousands)	2019		2018
Cash and cash equivalents	$	223,235	$	125,831
Restricted cash		833		833
Total cash, cash equivalents, and restricted cash shown on the condensed consolidated statements of cash flows	$	224,068	$	126,664

Investments and Fair Value Measurements

3 Months Ended

Mar. 31, 2019

Investments and Fair Value Measurements

Investments and Fair Value Measurements

5. Investments and Fair Value Measurements

Available‑for‑Sale Securities

The estimated fair value of marketable securities is based on quoted market prices for these or similar investments that were based on prices obtained from a commercial pricing service. The fair value of marketable securities classified within Level 2 is based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications.

Available‑for‑sale securities are summarized below:


		March 31, 2019
				Gross		Gross
		Amortized		Unrealized		Unrealized		Estimated
(In thousands)		Cost		Gains		Losses		Fair Value
US government securities	Level 1	$	61,422	$	24	$	(41)	$	61,405
US government agency securities	Level 2		19,882		3		—		19,885
Corporate notes	Level 2		42,462		25		(4)		42,483
Commercial paper	Level 2		217,453		7		(50)		217,410
Marketable securities			341,219		59		(95)		341,183
Money market funds	Level 1		84,136		—		—		84,136
Total		$	425,355	$	59	$	(95)	$	425,319


		December 31, 2018
				Gross		Gross
		Amortized		Unrealized		Unrealized		Estimated
(In thousands)		Cost		Gains		Losses		Fair Value
US government securities	Level 1	$	48,807	$	—	$	(86)	$	48,721
US government agency securities	Level 2		9,852		2		—		9,854
Corporate notes	Level 2		57,508		6		(88)		57,426
Commercial paper	Level 2		90,919		—		—		90,919
Marketable securities			207,086		8		(174)		206,920
Money market funds	Level 1		294,751		—		—		294,751
Total		$	501,837	$	8	$	(174)	$	501,671

As of March 31, 2019, all of the available-for-sale securities had contractual maturities within one year and the weighted average maturity of marketable securities was approximately five months. There were no transfers between Level 1 and Level 2 during the periods presented, and there have been no changes to the Company’s valuation techniques during the three months ended March 31, 2019.

In general, the Company invests in debt securities with the intent to hold such securities until maturity at par value. The Company does not intend to sell the investments that are currently in an unrealized loss position, and it is unlikely that it will be required to sell the investments before recovery of their amortized cost basis, which may be maturity. The Company has determined that the gross unrealized losses on its marketable securities, as of March 31, 2019, were temporary in nature, and there were no material unrealized losses on investments which have been in a loss position for more than twelve months as of March 31, 2019.

As of March 31, 2019, the Company’s accumulated other comprehensive loss on its condensed consolidated balance sheets consisted of net unrealized losses on available-for-sale investments. During the three months ended March 31, 2019 and 2018, the Company did not sell any of its marketable securities.

Long-Term Debt	3 Months Ended
Long-Term Debt	Mar. 31, 2019
Long-Term Debt
Long-Term Debt	6. Long-Term Debt 9.0% Non-Recourse Notes Due 2033 In November 2018, the Company entered into note purchase agreements relating to the private placement of $250.0 million aggregate principal amount of 9.0% non-recourse notes, due on or before 2033 (the "Non-Recourse 2033 Notes") issued by the Company’s wholly-owned subsidiary, Triple Royalty Sub LLC (the “Issuer”). The Non-Recourse 2033 Notes are secured by all of the Issuer’s rights, title and interest as a holder of certain membership interests (the “Issuer Class C Units”) in TRC. The primary source of funds to make payments on the Non-Recourse 2033 Notes will be the 63.75% economic interest of the Issuer (evidenced by the Issuer Class C Units) in any future payments made by GSK under the collaboration agreement, dated as of November 14, 2002, by and between Innoviva, Inc. (“Innoviva”) and GSK, as amended from time to time (net of the amount of cash, if any, expected to be used in TRC pursuant to the TRC LLC Agreement over the next four fiscal quarters) relating to the TRELEGY ELLIPTA program. The sole source of principal and interest payments for the Non-Recourse 2033 Notes are the future royalty payments generated from the TRELEGY ELLIPTA program, and as a result, the holders of the Non-Recourse 2033 Notes have no recourse against the Company even if the TRELEGY ELLIPTA payments are insufficient to cover the principal and interest payments for the Non-Recourse 2033 Notes. The Non-Recourse 2033 Notes are not convertible into Company equity and have no security interest in nor rights under any agreement with GSK. The Non-Recourse 2033 Notes may be redeemed at any time prior to maturity, in whole or in part, at specified redemption premiums. The Non-Recourse 2033 Notes bear an annual interest rate of 9.0%, with interest and principal paid quarterly beginning April 15, 2019. Prior to October 15, 2020, in the event that the distributions received by the Issuer from TRC in a quarter are less than the interest accrued for the quarter, the principal amount of the Non-Recourse 2033 Notes will increase by the interest shortfall amount for that period without a default or event of default occurring. The terms of the Notes also provide that the Company, at its option, may satisfy the quarterly interest payment obligations by making a capital contribution to the Issuer, but not for more than four (4) consecutive quarterly interest payment dates or for more than six (6) quarterly interest payment dates during the term of the Notes. Since the principal and interest payments on the Non-Recourse 2033 Notes are ultimately based on royalties from TRELEGY ELLIPTA product sales, which will vary from quarter to quarter, the Non-Recourse 2033 Notes may be repaid prior to the final maturity date in 2033. The portion of the Non-Recourse 2033 Notes classified as a current liability is based on the amount of royalties received, or receivable, as of March 31, 2019, that are expected to be used to make a principal repayment on the Non-Recourse 2033 Notes. Please refer to Note 12 for further information concerning the withholding of royalty payments by Innoviva due to us under the TRC LLC Agreement. In order to comply with Regulation RR – Credit Risk Retention (17 C.F.R. Part 246), 5.0% of the principal amount of the Non-Recourse 2033 Notes were retained by Theravance Biopharma R&D, Inc. and eliminated in the Company’s condensed consolidated financial statements. As of March 31, 2019, the net principal amount and estimated fair market value of the Non-Recourse 2033 Notes was $237.5 million. The inputs to determine fair value of the Non-Recourse 2033 Notes are categorized as Level 2 inputs. Level 2 inputs include quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. 3.25% Convertible Senior Notes Due 2023 The Company has $230.0 million of 3.250% convertible senior notes due in 2023 (“Convertible Senior 2023 Notes”) outstanding as of March 31, 2019 with an estimated fair value of $221.8 million. The estimated fair value was primarily based upon the underlying price of Theravance Biopharma’s publicly traded shares and other observable inputs as of March 31, 2019. The inputs to determine fair value of the Convertible Senior 2023 Notes are categorized as Level 2 inputs. Level 2 inputs include quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Leases

3 Months Ended

Mar. 31, 2019

Leases

Leases

7. Leases

The Company leases approximately 170,000 square feet of office and laboratory space in two buildings in South San Francisco, California, under a non-cancelable operating lease that ends in May 2030 (“SSF Lease”) and includes a tenant improvement allowance with a remaining balance of $16.3 million, as of March 31, 2019 that expires in May 2022. The Company’s Irish subsidiary leases approximately 6,100 square feet of office space in Dublin, Ireland that ends in April 2027 (“Dublin Lease”). In addition, the Company leases equipment for clinical research studies with an estimated duration of approximately 21-months ending in 2021.

The SSF Lease contains two options to extend the term of the lease for successive periods of five years each and the Dublin Lease contains a lease termination option in April 2024 at the Company’s discretion. The two options to extend the SSF Lease and the option to terminate the Dublin Lease were not recognized in the determination of the Company’s right-of-use assets and lease liabilities below.

The Company has evaluated its leases and determined that they were all operating leases. The present values of the remaining lease payments and corresponding right-of-use assets were as follows, and the difference between the lease assets and lease liabilities amounts was due to deferred rent payments that are payable in future periods.


(In thousands)	Classification	March 31, 2019
Assets
Operating lease assets	Operating lease assets	$	48,861

Liabilities
Current:
Operating lease liabilities	Other accrued liabilities	$	8,420
Non-current:
Operating lease liabilities	Operating lease liabilities		48,493
Total operating lease liabilities		$	56,913

Lease expense was included within operating expenses in the condensed consolidated statements of operations as follows:


		Three Months
		Ended
(In thousands)	Classification	March 31, 2019
Operating lease expense	Selling, general and administrative expenses	$	2,543
Operating lease expense	Research and development expenses		238
Total operating lease expense (1)		$	2,781

⁽¹⁾

Includes short-term leases which were immaterial.

As of March 31, 2019, the maturities of our lease liabilities were as follows:


(In thousands)
Nine months ending December 31, 2019	$	6,612
Years ending December 31:
2020		7,253
2021		9,492
2022		9,757
2023		10,035
Thereafter		70,208
Total operating lease payments	$	113,357
Less: Estimated tenant improvement allowance		(16,318)
Less: Imputed interest		(40,126)
Present value of operating lease liabilities	$	56,913

Cash paid for amounts included in the measurement of lease liabilities for the three months ended March 31, 2019 was $2.2 million and was included in net cash used in operating activities in the condensed consolidated statements of cash flows. As of March 31, 2019, the weighted average remaining lease term was 10.9 years, and the weighted average discount rate used to determine the lease liabilities was 8.65%. The Company’s discount rate was primarily derived from the 9.0% interest rate on its Non-Recourse 2033 Notes issued in November 2018 and did not involve any significant assumptions.

Theravance Respiratory Company, LLC	3 Months Ended
Theravance Respiratory Company, LLC	Mar. 31, 2019
Theravance Respiratory Company, LLC
Theravance Respiratory Company, LLC	8. Theravance Respiratory Company, LLC (“TRC”) Prior to the June 2014 spin-off from Innoviva, the Company’s former parent company, Innoviva assigned to TRC, a Delaware limited liability company formed by Innoviva, its strategic alliance agreement with GSK and all of its rights and obligations under its collaboration agreement with GSK other than with respect to RELVAR® ELLIPTA®/BREO® ELLIPTA®, ANORO® ELLIPTA® and vilanterol monotherapy. Through the Company’s 85% equity interests in TRC, the Company is entitled to receive an 85% economic interest in any future payments made by GSK under the strategic alliance agreement and under the portion of the collaboration agreement assigned to TRC (net of TRC expenses paid and the amount of cash, if any, expected to be used by TRC pursuant to the TRC LLC Agreement over the next four fiscal quarters). The drug programs assigned to TRC include Trelegy Ellipta and the MABA program, as monotherapy and in combination with other therapeutically active components, such as an inhaled corticosteroid (“ICS”), and any other product or combination of products that may be discovered and developed in the future under the GSK agreements. In May 2014, the Company entered into the TRC LLC Agreement with Innoviva that governs the operation of TRC. Under the TRC LLC Agreement, Innoviva is the manager of TRC, and the business and affairs of TRC are managed exclusively by the manager, including (i) day to day management of the drug programs in accordance with the existing GSK agreements; (ii) preparing an annual operating plan for TRC; and (iii) taking all actions necessary to ensure that the formation, structure and operation of TRC complies with applicable law and partner agreements. The Company is responsible for its proportionate share of TRC’s administrative expenses incurred, and communicated to the Company, by Innoviva. The Company analyzed its ownership, contractual and other interests in TRC to determine if it is a variable‑interest entity (“VIE”), whether the Company has a variable interest in TRC and the nature and extent of that interest. The Company determined that TRC is a VIE. The party with the controlling financial interest, the primary beneficiary, is required to consolidate the entity determined to be a VIE. Therefore, the Company also assessed whether it is the primary beneficiary of TRC based on the power to direct TRC’s activities that most significantly impact TRC’s economic performance and its obligation to absorb TRC’s losses or the right to receive benefits from TRC that could potentially be significant to TRC. Based on the Company’s assessment, the Company determined that it is not the primary beneficiary of TRC, and, as a result, the Company does not consolidate TRC in its condensed consolidated financial statements. TRC is recognized in the Company’s condensed consolidated financial statements under the equity method of accounting, and the value of the Company’s equity investment in TRC was $11.7 million and $5.4 million as of March 31, 2019 and December 31, 2018, respectively. This amount includes undistributed earnings from the Company’s investment in TRC which are recorded within “other prepaid and current assets” on the condensed consolidated balance sheets, net of the Company’s proportionate share of TRC’s administrative expenses incurred, and communicated to the Company, by Innoviva. Pursuant to the TRC operating agreement, the cash from the TRELEGY ELLIPTA royalties, net of any expenses, is distributed to the equity holders quarterly. For the three months ended March 31, 2019 and 2018, the Company recognized $6.2 million and $0.7 million, respectively, in income from its investment in TRC which was generated by royalty payments from GSK to TRC arising from the net sales of Trelegy Ellipta.

Share-Based Compensation

3 Months Ended

Mar. 31, 2019

Share-Based Compensation

Share-Based Compensation

9. Share-Based Compensation

Share-Based Compensation Expense Allocation

The allocation of share-based compensation expense included in the condensed consolidated statements of operations was as follows:


	Three Months Ended
	March 31,
(In thousands)	2019		2018
Research and development	$	6,159	$	6,559
Selling, general and administrative		6,061		7,439
Total share-based compensation expense	$	12,220	$	13,998

Performance-Contingent Awards

In the first quarter of 2016, the Compensation Committee of the Company’s board of directors (“Compensation Committee”) approved the grant of 1,575,000 performance-contingent restricted share awards (“RSAs”) and 135,000 performance-contingent restricted share units (“RSUs”) to senior management. The vesting of such awards is dependent on the Company meeting its critical operating goals and objectives during the five-year period from 2016 to December 31, 2020. The goals that must be met in order for the performance-contingent RSAs and RSUs to vest are strategically important for the Company, and the Compensation Committee believes the goals, if achieved, will increase shareholder value. The awards have dual triggers of vesting based upon the achievement of these goals and continued employment. As of March 31, 2019, there were 877,500 of these performance-contingent RSAs and 101,250 of these performance-contingent RSUs outstanding, and as of March 31, 2018, there were 1,305,000 of these performance-contingent RSAs and 135,000 of these performance-contingent RSUs outstanding.

Expense associated with these awards is broken into three separate tranches and may be recognized during the years 2016 to 2020 depending on the probability of meeting the performance conditions. Compensation expense relating to awards subject to performance conditions is recognized if it is considered probable that the performance goals will be achieved. The probability of achievement is reassessed at each quarter-end reporting period.

The performance conditions associated with the first tranche of these awards were completed in the second quarter of 2018, and the Company recognized $1.1 million of share-based compensation expense for the three months ended March 31, 2018 associated with the first tranche of these awards.

The performance conditions associated with the second tranche of these awards were completed in the first quarter of 2019. For the three months ended March 31, 2019 and 2018, the Company recognized $0.8 million and $0.9 million, respectively, of share-based compensation expense related to the second tranche of these awards. The maximum remaining expense associated with the second tranche is $2.8 million (allocated as $1.2 million for research and development expense and $1.6 million for selling, general and administrative expense).

As of March 31, 2019, the Company determined that the remaining third tranche was not probable of vesting and, as a result, no compensation expense related to the third tranche has been recognized to date. The maximum potential expense associated with the remaining third tranche could be up to $14.2 million (allocated as $5.9 million for research and development expense and $8.3 million for selling, general and administrative expense) if the performance conditions are achieved.

In the fourth quarter of 2018, the Compensation Committee approved a grant of 3,000 performance-contingent RSUs to an employee. These RSUs have a maximum compensation expense of $75,000 which will be recognized when its single performance milestone is deemed to be probable of achievement. These 3,000 performance-contingent RSUs expire by December 31, 2020.

In the first quarter of 2019, the Compensation Committee approved a grant of 60,000 performance-contingent RSUs and incentive cash bonus awards to certain employees. These awards have dual triggers of vesting based upon the achievement of certain performance milestones in specified timeframes, as well as a requirement for continued employment. The compensation expense related to these awards is broken into two separate performance milestones and recognized when the associated performance milestones are deemed to be probable of achievement. The maximum share-based compensation expense associated with 60,000 performance-contingent RSUs’ first and second performance milestones are $0.8 million each for a total of $1.6 million. The maximum compensation expense associated with the cash bonus’ first and second performance milestones are $75,000 and $225,000, respectively, for a total of $300,000. The 60,000 performance-contingent RSUs and cash bonus milestones expire by December 31, 2021, and December 31, 2020, respectively.

As of March 31, 2019, the Company has determined that the performance milestones for the awards granted in the fourth quarter of 2018 and the first quarter of 2019 were not probable of achievement and, as a result, no compensation expense related to these awards has been recognized to date.

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2019
Income Taxes
Income Taxes	10. Income Taxes The income tax provision was a $0.1 million expense for the three months ended March 31, 2019. The expense for the three months ended March 31, 2019 was primarily attributed to recording contingent tax liabilities for uncertain tax positions taken with respect to transfer pricing and tax credits. No provision for income taxes has been recognized on undistributed earnings of the Company’s foreign subsidiaries because it considers such earnings to be indefinitely reinvested. The Company follows the accounting guidance related to accounting for income taxes which requires that a company reduce its deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some portion or all of its deferred tax assets will not be realized. As of March 31, 2019, the Company’s deferred tax assets were offset in full by a valuation allowance. The Company records liabilities related to uncertain tax positions in accordance with the income tax guidance which clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements by prescribing a minimum recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Resolution of one or more of these uncertain tax positions in any period may have a material impact on the results of operations for that period. The Company includes any applicable interest and penalties within the provision for income taxes in the condensed consolidated statements of operations. The Company’s future income tax expense may be affected by such factors as changes in tax laws, its business, regulations, tax rates, interpretation of existing laws or regulations, the impact of accounting for share-based compensation, the impact of accounting for business combinations, its international organization, shifts in the amount of income before tax earned in the US as compared with other regions in the world, and changes in overall levels of income before tax.

Reduction in Workforce	3 Months Ended
Reduction in Workforce	Mar. 31, 2019
Reduction in Workforce
Reduction in Workforce	11. Reduction in Workforce In January 2019, the Company announced a reduction in workforce to align with its focus on continued execution of key strategic programs and advancement of selected late-stage research programs toward clinical development. The Company reduced its overall headcount by 51 individuals, with the affected employees primarily focused on early research or the infrastructure in support of VIBATIV which was sold by the Company to Cumberland Pharmaceuticals Inc. in November 2018. The workforce reduction was substantially completed in the first quarter of 2019, and the Company recorded severance related charges totaling approximately $3.9 million including compensation expense made to affected employees through any minimum statutory notice periods. As of March 31, 2019, the Company had paid total severance of $3.4 million. The severance related charges are presented on the condensed consolidated statements of operations within research and development expenses and selling, general and administrative expenses for the three months ended March 31, 2019.

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2019
Subsequent Events
Subsequent Events	12. Subsequent Events In May 2019, the Company announced that it had initiated an arbitration against Innoviva and TRC because Innoviva has caused TRC not to make any distributions to the Company with respect to its 85% economic interest in TRC for the quarter ended December 31, 2018, which distributions were due March 31, 2019, and Innoviva’s statement to the Company that it intends to cause TRC to withhold making further cash distributions through calendar year 2019.

Organization and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2019
Organization and Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation The Company’s condensed consolidated financial information as of March 31, 2019, and the three months ended March 31, 2019 and 2018 is unaudited but includes all adjustments (consisting only of normal recurring adjustments), which are considered necessary for a fair presentation of the financial position at such date and of the operating results and cash flows for those periods, and have been prepared in accordance with US generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated December 31, 2018 financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2019. The results for the three months ended March 31, 2019 are not necessarily indicative of the results to be expected for the year ending December 31, 2019, for any other interim period or for any future period. These condensed consolidated financial statements include the accounts of the Company and its subsidiaries, and intercompany transactions and balances have been eliminated.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures in the condensed consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on assumptions believed to be reasonable under the circumstances. Actual results could differ materially from those estimates.
Significant Accounting Policies	Significant Accounting Policies Other than the recently adopted accounting pronouncements below, there have been no material revisions in the Company’s significant accounting policies described in Note 1 to the consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2018.
Recently Issued Accounting Pronouncements	Recently Adopted Accounting Pronouncements Effective January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) (“ASU 2016-02”) under the required modified retrospective approach. ASU 2016‑02 was aimed at making leasing activities more transparent and comparable, and requires leases with terms greater than one year to be recognized by lessees on their balance sheet as a right‑of‑use asset and corresponding lease liability. The Company elected the optional transition method to initially account for the impact of the adoption with a cumulative adjustment to accumulated deficit, if any, on the effective date of ASU 2016-02 of January 1, 2019, rather than applying the transition provisions in the earliest period presented, and the Company elected a package of practical expedients that allowed entities to not (i) reassess whether any expired or existing contracts are considered or contain leases; (ii) reassess the lease classification for any expired or existing leases; and (iii) reassess initial direct costs for any existing leases. In addition, the Company elected other practical expedients that allowed entities to (i) use hindsight in determining the term of a lease when the lease includes an option to extend the lease term; (ii) exclude all leases, on a go forward basis, that have a lease term of 12-month or less; and (iii) combine lease and non-lease components (e.g., office common area maintenance expenses) when recognizing a lease on an entity’s balance sheet on a go forward basis. As a result of the adoption of ASU 2016-02, on January 1, 2019, the Company recorded a right-of-use operating lease asset of $48.3 million and an operating lease liability of $56.3 million related to its office leases in South San Francisco, California and Dublin, Ireland. The lease liability included $8.0 million related to deferred rent liabilities. The adoption of ASU 2016-02 did not have an impact on the Company’s results of operations, lease expense, or cash flows. Effective January 1, 2019, the Company adopted ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 was issued to provide clarity and reduce both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 718, Compensation—Stock Compensation, to a change to the terms or conditions of a share-based payment award. The amendments in ASU 2017-09 provided guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Essentially, an entity will not have to account for the effects of a modification if: (1) the fair value of the modified award is the same immediately before and after the modification; (2) the vesting conditions of the modified award are the same immediately before and after the modification; and (3) the classification of the modified award as either an equity instrument or liability instrument is the same immediately before and after the modification. The adoption of ASU 2017-09 did not have a material impact upon the Company’s condensed consolidated financial statements and related disclosures as of January 1, 2019. Effective January 1, 2019, the Company adopted the new final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders’ equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The Company has included condensed consolidated statements of shareholders’ equity (deficit) in this Form 10-Q for the three month periods ended March 31, 2019 and 2018. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13"). This guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The measurement of expected credit losses is based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability. ASU 2016-13 also eliminates the concept of “other-than-temporary” impairment when evaluating available-for-sale debt securities and instead focuses on determining whether any impairment is a result of a credit loss or other factors. An entity will recognize an allowance for credit losses on available-for-sale debt securities rather than an other-than-temporary impairment that reduces the cost basis of the investment. ASU 2016-13 is effective for annual reporting periods and interim periods within those years beginning after December 15, 2019. The Company does not currently expect ASU 2016-13 to have a material impact on its consolidated financial statements and related disclosures based on the historical high credit quality of the Company’s financial instruments. The Company is currently evaluating other recently issued accounting pronouncements and does not currently believe that any of those pronouncements will have a material impact on its consolidated financial statements and related disclosures.

Net Loss per Share (Tables)

3 Months Ended

Mar. 31, 2019

Net Loss per Share

Schedule of anti-dilutive securities


	Three Months Ended
	March 31,
(In thousands)	2019	2018
Share issuances under equity incentive plans and ESPP	5,481	3,916
Restricted shares	1	5
Share issuances upon the conversion of convertible senior notes	6,676	6,676
Total	12,158	10,597

Collaborative Arrangements (Tables)

3 Months Ended

Mar. 31, 2019

Collaborative Arrangements

Schedule of revenue recognized from collaborative arrangements


	Three Months Ended
	March 31,
(In thousands)	2019		2018
Janssen	$	5,323	$	4,613
Other		15		27
Total collaboration revenue	$	5,338	$	4,640

Summary of changes in deferred revenue


	Three Months Ended
	March 31,
(In thousands)	2019		2018
Collaboration revenue recognized in the period from:
Amounts included in deferred revenue at the beginning of the period	$	5,333	$	16
Performance obligations satisfied in previous period		—		—

Summary of reductions to R and D costs related to the reimbursement payments


	Three Months Ended
	March 31,
(In thousands)	2019		2018
Janssen	$	1,411	$	—
Mylan		203		1,850
Total reduction to R&D expense	$	1,614	$	1,850

Cash, Cash Equivalents, and Restricted Cash (Tables)

3 Months Ended

Mar. 31, 2019

Cash, Cash Equivalents, and Restricted Cash

Schedule of reconciliation of cash, cash equivalents, and restricted cash


	March 31,
(In thousands)	2019		2018
Cash and cash equivalents	$	223,235	$	125,831
Restricted cash		833		833
Total cash, cash equivalents, and restricted cash shown on the condensed consolidated statements of cash flows	$	224,068	$	126,664

Investments and Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2019

Investments and Fair Value Measurements

Schedule of available-for-sale securities


		March 31, 2019
				Gross		Gross
		Amortized		Unrealized		Unrealized		Estimated
(In thousands)		Cost		Gains		Losses		Fair Value
US government securities	Level 1	$	61,422	$	24	$	(41)	$	61,405
US government agency securities	Level 2		19,882		3		—		19,885
Corporate notes	Level 2		42,462		25		(4)		42,483
Commercial paper	Level 2		217,453		7		(50)		217,410
Marketable securities			341,219		59		(95)		341,183
Money market funds	Level 1		84,136		—		—		84,136
Total		$	425,355	$	59	$	(95)	$	425,319


		December 31, 2018
				Gross		Gross
		Amortized		Unrealized		Unrealized		Estimated
(In thousands)		Cost		Gains		Losses		Fair Value
US government securities	Level 1	$	48,807	$	—	$	(86)	$	48,721
US government agency securities	Level 2		9,852		2		—		9,854
Corporate notes	Level 2		57,508		6		(88)		57,426
Commercial paper	Level 2		90,919		—		—		90,919
Marketable securities			207,086		8		(174)		206,920
Money market funds	Level 1		294,751		—		—		294,751
Total		$	501,837	$	8	$	(174)	$	501,671

Leases (Tables)

3 Months Ended

Mar. 31, 2019

Leases

Summary of supplemental balance sheet information related to leases


(In thousands)	Classification	March 31, 2019
Assets
Operating lease assets	Operating lease assets	$	48,861

Liabilities
Current:
Operating lease liabilities	Other accrued liabilities	$	8,420
Non-current:
Operating lease liabilities	Operating lease liabilities		48,493
Total operating lease liabilities		$	56,913

Summary of components of lease expense


		Three Months
		Ended
(In thousands)	Classification	March 31, 2019
Operating lease expense	Selling, general and administrative expenses	$	2,543
Operating lease expense	Research and development expenses		238
Total operating lease expense (1)		$	2,781

⁽¹⁾

Includes short-term leases which were immaterial.

Summary of maturities of lease liabilities


(In thousands)
Nine months ending December 31, 2019	$	6,612
Years ending December 31:
2020		7,253
2021		9,492
2022		9,757
2023		10,035
Thereafter		70,208
Total operating lease payments	$	113,357
Less: Estimated tenant improvement allowance		(16,318)
Less: Imputed interest		(40,126)
Present value of operating lease liabilities	$	56,913

Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Share-Based Compensation

Schedule of share-based compensation expense included in the consolidated statements of operations


	Three Months Ended
	March 31,
(In thousands)	2019		2018
Research and development	$	6,159	$	6,559
Selling, general and administrative		6,061		7,439
Total share-based compensation expense	$	12,220	$	13,998

Organization and Summary of Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2019 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Lease, Practical Expedients, Package	true
Lease, Practical Expedient, Use of Hindsight	true
Operating lease asset	$ 48,861
Operating lease liability	56,913
Restatement Adjustment \| ASU 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease asset	48,300
Operating lease liability	56,300
Deferred rent liabilities	$ 8,000

Net Loss per Share (Details) - shares	3 Months Ended
Net Loss per Share (Details) - shares	Mar. 31, 2019	Mar. 31, 2018
Anti-Dilutive Securities
Anti-dilutive securities (in shares)	12,158,000	10,597,000
Share issuances under equity incentive plans and ESPP
Anti-Dilutive Securities
Anti-dilutive securities (in shares)	5,481,000	3,916,000
RSAs
Anti-Dilutive Securities
Anti-dilutive securities (in shares)	1,000	5,000
Share issuances upon the conversion of convertible senior notes
Anti-Dilutive Securities
Anti-dilutive securities (in shares)	6,676,000	6,676,000
Performance-based vesting
Anti-Dilutive Securities
Anti-dilutive securities (in shares)	468,000	1,305,000

Collaborative Arrangements - Revenue from Collaborative Arrangements (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2018	Mar. 31, 2019	Mar. 31, 2018
Collaborative Arrangements and Co-Promote Agreement
Revenue		$ 5,338	$ 8,319
Collaboration revenue recognized in the period from:
Amounts included in deferred revenue at the beginning of the period		5,333	16
Janssen
Collaborative Arrangements and Co-Promote Agreement
Revenue		5,323	4,613
Collaboration revenue recognized in the period from:
Amounts included in deferred revenue at the beginning of the period	$ 63,600
Other
Collaborative Arrangements and Co-Promote Agreement
Revenue		15	27
Collaborative revenue
Collaborative Arrangements and Co-Promote Agreement
Revenue		$ 5,338	$ 4,640

Collaborative Arrangements - Janssen Biotech Agreement (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Feb. 28, 2018	Mar. 31, 2019	Mar. 31, 2018
Collaborative Arrangements and Co-Promote Agreement
Revenue		$ 5,338	$ 8,319
Percentage of profit share	67.00%	35.00%
Revenue from the recognition of previously deferred revenue		$ 5,333	16
Research and development		53,818	47,765
Janssen
Collaborative Arrangements and Co-Promote Agreement
Upfront payment receivable	$ 100,000
Revenue		5,323	4,613
Percentage of profit share	33.00%
Maximum potential payments receivable	$ 900,000
Revenue from collaborative arrangements		5,300	4,600
Revenue from the recognition of previously deferred revenue	63,600
Research and development		$ 8,600	$ 6,500
Janssen \| Collaborative Arrangement
Collaborative Arrangements and Co-Promote Agreement
Revenue	700,000
Janssen \| Collaborative Arrangement \| TD-1473
Collaborative Arrangements and Co-Promote Agreement
Revenue	$ 200,000

Collaborative Arrangements - Development and Commercialization Agreement (Details)		1 Months Ended			3 Months Ended		12 Months Ended
	Jan. 30, 2015	Feb. 28, 2018	Feb. 28, 2015 USD ($) $ / shares shares	Jan. 31, 2015 USD ($) plan	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
Collaborative Arrangements and Co-Promote Agreement
Milestone payment					$ 5,338,000	$ 8,319,000
Percentage of profit share		67.00%			35.00%
Revenue from the recognition of previously deferred revenue					$ 5,333,000	16,000
Mylan
Collaborative Arrangements and Co-Promote Agreement
Potential milestone or contingent payments					$ 205,000,000
Transaction price				$ 34,200,000
Number of performance obligations \| plan				2
Percentage of profit share					65.00%
Performance period (in years)				17 years	13 years
Deferred revenue					$ 300,000
Revenue from the recognition of previously deferred revenue					6,000	$ 6,000
Mylan \| Purchase Agreement
Collaborative Arrangements and Co-Promote Agreement
Equity investments made in the entity			$ 30,000,000
Number of shares purchased \| shares			1,585,790
Share Price \| $ / shares			$ 18.918
Price per share premium (as a percent)			10.00%
Premium proceeds from sale of ordinary shares			$ 4,200,000
Trading days	5 days
Mylan \| Development and Commercialization Agreement
Collaborative Arrangements and Co-Promote Agreement
Initial cash payment								$ 15,000,000
Mylan \| Revefenacin Monotherapy (TD-4208)
Collaborative Arrangements and Co-Promote Agreement
Potential milestone or contingent payments					160,000,000
Mylan \| Future potential combination products
Collaborative Arrangements and Co-Promote Agreement
Potential milestone or contingent payments					45,000,000
Mylan \| Milestone - 50% enrollment in Phase 3 twelve-month safety study \| Collaborative Arrangement
Collaborative Arrangements and Co-Promote Agreement
Milestone payment							$ 15,000,000
Mylan \| Sales milestones \| Revefenacin Monotherapy (TD-4208)
Collaborative Arrangements and Co-Promote Agreement
Potential milestone or contingent payments					150,000,000
Mylan \| Regulatory actions \| Revefenacin Monotherapy (TD-4208) \| European Union
Collaborative Arrangements and Co-Promote Agreement
Potential milestone or contingent payments					$ 10,000,000

Collaborative Arrangements - Reimbursement of R and D Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Research and Development Reimbursement
Total reduction to R and D expense	$ 1,614	$ 1,850
Operating expenses
Research and Development Reimbursement
Payable after the Company’s R&D expenses had been reimbursed	1,400
Mylan
Research and Development Reimbursement
Total reduction to R and D expense	203	1,850
Mylan \| Cost Sharing Payments \| Development and Commercialization Agreement
Research and Development Reimbursement
Total reduction to R and D expense	200	$ 1,900
Janssen
Research and Development Reimbursement
Total reduction to R and D expense	$ 1,411

Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018	Dec. 31, 2017
Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents	$ 223,235	$ 378,021	$ 125,831
Restricted cash	833	833	833
Total cash, cash equivalents, and restricted cash shown on the condensed consolidated statements of cash flows	$ 224,068	$ 378,854	$ 126,664	$ 89,813

Investments and Fair Value Measurements - Available for sale securities (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Available for sale securities:
Amortized Cost	$ 425,355	$ 501,837
Gross Unrealized Gains	59	8
Gross Unrealized Losses	(95)	(174)
Estimated Fair Value	425,319	501,671
Marketable securities
Available for sale securities:
Amortized Cost	341,219	207,086
Gross Unrealized Gains	59	8
Gross Unrealized Losses	(95)	(174)
Estimated Fair Value	341,183	206,920
US government securities \| Level 1
Available for sale securities:
Amortized Cost	61,422	48,807
Gross Unrealized Gains	24
Gross Unrealized Losses	(41)	(86)
Estimated Fair Value	61,405	48,721
US government agency securities \| Level 2
Available for sale securities:
Amortized Cost	19,882	9,852
Gross Unrealized Gains	3	2
Estimated Fair Value	19,885	9,854
Corporate notes \| Level 2
Available for sale securities:
Amortized Cost	42,462	57,508
Gross Unrealized Gains	25	6
Gross Unrealized Losses	(4)	(88)
Estimated Fair Value	42,483	57,426
Commercial paper \| Level 2
Available for sale securities:
Amortized Cost	217,453	90,919
Gross Unrealized Gains	7
Gross Unrealized Losses	(50)
Estimated Fair Value	217,410	90,919
Money market funds \| Level 1
Available for sale securities:
Amortized Cost	84,136	294,751
Estimated Fair Value	$ 84,136	$ 294,751

Investments and Fair Value Measurements - Convertible senior notes (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Nov. 30, 2018	Mar. 31, 2019	Mar. 31, 2018
Maturity period for marketable securities
Maximum contractual maturity period		1 year
Weighted average contractual maturity period		5 months
Fair value transfers
Fair value of assets transferred from Level 1 to Level 2		$ 0
Fair value of assets transferred from Level 2 to Level 1		0
Fair value of liabilities transferred from Level 1 to Level 2		0
Fair value of liabilities transferred from Level 2 to Level 1		0
Unrealized losses
Net unrealized losses		0
Available-for-sale securities sold		$ 0	$ 0
9.0% non-recourse notes due 2033
Unrealized losses
Proceeds from issuance of debt	$ 250,000
Interest rate (as a percent)	9.00%	9.00%
9.0% non-recourse notes due 2033 \| Level 2
Unrealized losses
Notes fair value		$ 237,500
9.0% non-recourse notes due 2033 \| Theravance Biopharma R&D, Inc.
Unrealized losses
Interest rate (as a percent)	5.00%

Long-Term Debt (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
Long-Term Debt (Details) - USD ($) $ in Millions	Nov. 30, 2018	Mar. 31, 2019
Long-Term Debt
Equity interest		85.00%
9.0% non-recourse notes due 2033
Long-Term Debt
Proceeds from issuance of debt	$ 250.0
Interest rate (as a percent)	9.00%	9.00%
Equity interest	63.75%
9.0% non-recourse notes due 2033 \| Level 2
Long-Term Debt
Notes fair value		$ 237.5
3.25% Convertible Senior Notes Due 2023
Long-Term Debt
Proceeds from issuance of debt		$ 230.0
Interest rate (as a percent)		3.25%
Notes fair value		$ 221.8
TRC
Long-Term Debt
Equity interest		85.00%
Theravance Biopharma R&D, Inc. \| 9.0% non-recourse notes due 2033
Long-Term Debt
Interest rate (as a percent)	5.00%

Leases - General (Details) $ in Thousands	3 Months Ended
Leases - General (Details) $ in Thousands	Mar. 31, 2019 USD ($) ft² Option building
Lessee, Lease, Description [Line Items]
Area of leased space	170,000
Number of building leased \| building	2
Number of options to extend \| Option	2
Option to extend	true
Renewal term	5 years
Tenant improvement allowance \| $	$ 16,318
Ireland
Lessee, Lease, Description [Line Items]
Area of leased space	6,100
Option to terminate	true
Lease term	21 months

Leases - Assets and Liabilities (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Assets and liabilities
Operating lease assets	$ 48,861
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Operating lease assets
Operating lease liabilities, current	$ 8,420
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Accrued Liabilities, Current
Operating lease liabilities, Noncurrent	$ 48,493
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Operating lease liabilities, Noncurrent
Total operating lease liabilities	$ 56,913

Leases - Lease Cost (Details) $ in Thousands	3 Months Ended
Leases - Lease Cost (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 2,781
Selling, general and administrative
Lessee, Lease, Description [Line Items]
Operating lease expense	2,543
Research and development
Lessee, Lease, Description [Line Items]
Operating lease expense	$ 238

Leases - Maturity of Lease Liabilities and Other Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Nov. 30, 2018
Maturity of Lease Liabilities
Nine months ending December 31, 2019	$ 6,612
2020	7,253
2021	9,492
2022	9,757
2023	10,035
Thereafter	70,208
Total operating lease payments	113,357
Less: Estimated tenant improvement allowance	(16,318)
Less: Imputed interest	(40,126)
Present value of operating lease liabilities	56,913
Operating cash flows from operating leases	$ 2,200
Weighted-average remaining lease term (years)	10 months 27 days
Weighted-average discount rate	8.65%
9.0% non-recourse notes due 2033
Maturity of Lease Liabilities
Interest rate (as a percent)	9.00%	9.00%

Theravance Respiratory Company, LLC (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Theravance Respiratory Company, LLC
Equity interest	85.00%
TRC
Theravance Respiratory Company, LLC
Equity interest	85.00%
Value of investment	$ 11.7		$ 5.4
Royalty payments	$ 6.2	$ 0.7

Share-Based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share-Based Compensation
Share-based compensation expense	$ 12,220	$ 13,998
Research and development
Share-Based Compensation
Share-based compensation expense	6,159	6,559
Selling, general and administrative
Share-Based Compensation
Share-based compensation expense	$ 6,061	$ 7,439

Share-Based Compensation - Performance Contingent Awards (Details)	3 Months Ended
	Mar. 31, 2019 USD ($) tranche Milestone shares	Mar. 31, 2018 USD ($) shares	Dec. 31, 2018 USD ($) shares	Mar. 31, 2016 shares
Share-Based Compensation
Number of tranches \| tranche	3
Number of performance milestones \| Milestone	2
Share-based compensation expense	$ 12,220,000	$ 13,998,000
Research and development
Share-Based Compensation
Share-based compensation expense	6,159,000	6,559,000
Selling, general and administrative
Share-Based Compensation
Share-based compensation expense	$ 6,061,000	$ 7,439,000
Performance-Contingent Awards - RSAs
Share-Based Compensation
Shares approved for grant (in shares) \| shares				1,575,000
Awards outstanding (in shares) \| shares	877,500	1,305,000
Performance-Contingent Awards - RSUs
Share-Based Compensation
Shares approved for grant (in shares) \| shares	60,000			135,000
Awards outstanding (in shares) \| shares	101,250	135,000
Maximum potential expense \| RSUs \| Employee
Share-Based Compensation
Shares approved for grant (in shares) \| shares			3,000
Maximum potential expense \| RSUs \| Employee \| Maximum
Share-Based Compensation
Compensation expense			$ 75,000
First tranche
Share-Based Compensation
Share-based compensation expense		$ 1,100,000
Second tranche
Share-Based Compensation
Share-based compensation expense	$ 800,000	$ 900,000
Second tranche \| Maximum potential expense
Share-Based Compensation
Share-based compensation expense	2,800,000
Second tranche \| Maximum potential expense \| Research and development
Share-Based Compensation
Share-based compensation expense	1,200,000
Second tranche \| Maximum potential expense \| Selling, general and administrative
Share-Based Compensation
Share-based compensation expense	1,600,000
Third tranche
Share-Based Compensation
Share-based compensation expense	0
Third tranche \| Maximum potential expense
Share-Based Compensation
Share-based compensation expense	14,200,000
Third tranche \| Maximum potential expense \| Research and development
Share-Based Compensation
Share-based compensation expense	5,900,000
Third tranche \| Maximum potential expense \| Selling, general and administrative
Share-Based Compensation
Share-based compensation expense	8,300,000
First performance milestone \| Maximum potential expense \| Performance-Contingent Awards - RSUs
Share-Based Compensation
Share-based compensation expense	800,000
First performance milestone \| Maximum potential expense \| Cash bonus award
Share-Based Compensation
Share-based compensation expense	75,000
Second performance milestone \| Maximum potential expense \| Performance-Contingent Awards - RSUs
Share-Based Compensation
Share-based compensation expense	800,000
Second performance milestone \| Maximum potential expense \| Cash bonus award
Share-Based Compensation
Share-based compensation expense	225,000
First and second performance milestones \| Performance-Contingent Awards – RSUs and cash bonus milestones
Share-Based Compensation
Share-based compensation expense	0
First and second performance milestones \| Maximum potential expense \| Performance-Contingent Awards - RSUs
Share-Based Compensation
Share-based compensation expense	1,600,000
First and second performance milestones \| Maximum potential expense \| Cash bonus award
Share-Based Compensation
Share-based compensation expense	$ 300,000

Income Taxes - Components of provision for income taxes (Details) $ in Millions	3 Months Ended
	Mar. 31, 2019 USD ($)
Provision for income tax benefit (expense)
Income tax expense	$ 0.1
Provision for income taxes on undistributed earnings of foreign subsidiaries	$ 0.0

Reduction in Workforce (Details) $ in Millions	1 Months Ended	3 Months Ended
Reduction in Workforce (Details) $ in Millions	Jan. 31, 2019 employee	Mar. 31, 2019 USD ($)
Reduction in Workforce
Number of headcount reduced by Company on sale of VIBATIV \| employee	51
Severance related charges		$ 3.9
Total severance paid		$ 3.4

Subsequent Events (Details)	May 31, 2019	Mar. 31, 2019
Subsequent Events
Equity interest		85.00%
TRC
Subsequent Events
Equity interest		85.00%
Subsequent Events \| TRC
Subsequent Events
Equity interest	85.00%