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Income Taxes (Tables)
12 Months Ended
Dec. 31, 2018
Income Tax Disclosure [Abstract]  
Summary of Reconciliation of U.S. Statutory Rate to Company's Effective Tax Rate

A reconciliation of the U.S. statutory rate to the Company’s effective tax rate is as follows:

 

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

Tax due at statutory rate

 

 

21.0

%

 

 

34.0

%

 

 

34.0

%

State taxes, net of federal

 

 

6.0

 

 

 

5.1

 

 

 

4.2

 

Stock-based compensation

 

 

2.5

 

 

 

6.4

 

 

 

(1.0

)

Foreign rate differential

 

 

(4.3

)

 

 

(3.2

)

 

 

(3.1

)

Federal and state credits

 

 

2.5

 

 

 

7.2

 

 

 

10.3

 

Change in valuation allowance

 

 

(27.6

)

 

 

(22.5

)

 

 

(41.5

)

Other

 

 

(0.1

)

 

 

 

 

 

 

Federal and state rate change

 

 

 

 

 

(24.6

)

 

 

 

Research and orphan drug credit addback

 

 

 

 

 

(2.4

)

 

 

(2.9

)

 

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Summary of Significant Components of Company's Net Deferred Tax Asset

Significant components of the Company’s net deferred tax asset at December 31, 2018 and 2017 are as follows:

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

 

 

(in thousands)

 

Net operating losses

 

$

206,460

 

 

$

131,151

 

Capitalized start-up costs

 

 

1,242

 

 

 

1,362

 

Tax credit carryforwards

 

 

63,653

 

 

 

54,523

 

Accrued expenses

 

 

4,498

 

 

 

3,057

 

Depreciation and amortization

 

 

1,001

 

 

 

685

 

Stock options

 

 

30,925

 

 

 

13,573

 

Others

 

 

568

 

 

 

1,090

 

Total net deferred tax asset before valuation

   allowance

 

 

308,347

 

 

 

205,441

 

Valuation allowance

 

 

(308,347

)

 

 

(205,441

)

Net deferred tax asset

 

$

 

 

$

 

Summary of Rollforward of Company's Unrecognized Tax Benefits

The following is a rollforward of the Company’s unrecognized tax benefits:

 

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

 

2016

 

 

 

(in thousands)

 

Unrecognized tax benefits—as of the beginning of the

   year

 

$

 

 

$

 

 

$

 

Gross increases—current period tax positions

 

 

 

 

 

 

 

 

 

Gross decreases—tax positions of prior periods

 

 

 

 

 

 

 

 

 

Unrecognized tax benefits—as of the end of the year

 

$

 

 

$

 

 

$