Summary of Significant Accounting Policies (Tables)

6 Months Ended

Dec. 31, 2016

Summary of Significant Accounting Policies

Schedule of inventory

Inventory at December 31, 2016 and June 30, 2016 and 2015 is summarized below (in thousands):

	December 31,		June 30,
	2016		2016		2015
Raw materials	$	357	$	317	$	279
Work in process		1,835		590		2,656
Total	$	2,192	$	907	$	2,935

Schedule of components of other accrued liabilities

Other accrued liabilities consisted of the following at December 31, 2016 and June 30, 2016 and 2015 (in thousands):

	December 31,		June 30,
	2016		2016		2015
Accrued contract payments	$	1,980	$	4,202	$	5,830
Accrued clinical trial costs		4,700		3,096		1,735
Accrued professional services		865		1,028		788
Accrued employee benefits		676		640		567
Accrued public reporting charges		156		192		192
Accrued interest on convertible senior notes		2,388		138		—
Other current accrued liabilities		385		417		1,329
Total	$	11,150	$	9,713	$	10,441

Schedule of assets that are required to be measured at fair value on a recurring basis

The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of December 31, 2016 (in thousands):

	Fair Value Measurements at December 31, 2016 Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	144,176	$	144,176	$	—	$	—

As of June 30, 2016, the Company held certain assets that are required to be measured at fair value on a recurring basis. The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2016 (in thousands):

	Fair Value Measurements at June 30, 2016 Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	219,918	$	219,918	$	—	$	—

As of June 30, 2015, the Company held certain assets that are required to be measured at fair value on a recurring basis. The following table represents the fair value hierarchy for the Company’s financial assets measured at fair value on a recurring basis as of June 30, 2015 (in thousands):

	Fair Value Measurements at June 30, 2015 Using
			Quoted Prices in				Significant
			Active Markets for		Significant Other		Unobservable
			Identical Assets		Observable Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Cash equivalents	$	269,304	$	269,304	$	—	$	—

Schedule of estimated useful lives of property and equipment

Machinery and equipment	5 years
Computer hardware and software	3 years
Furniture and fixtures	5 years
Leasehold improvements	Shorter of remaining lease term or 7 years

Schedule of common stock equivalents, as calculated in accordance with the treasury-stock method

The Company’s common stock equivalents, as calculated in accordance with the treasury‑stock method for the options and the if-converted method for the convertible notes, are shown in the following table (in thousands):

	Six Months Ended
	December 31,	June 30,
	2016	2016	2015	2014
Options outstanding to purchase common stock
and unvested restricted stock	13,878	11,919	9,739	8,486
Common stock equivalents under treasury stock method for options	1	735	770	1,820
Shares issuable upon conversion of convertible notes	23,878	23,878	—	—
Common stock equivalents under
if-converted method for convertible notes	23,878	718	—	—

Schedule of risk-free rate of the stock options based on US Treasury rate

	Six Months Ended
	December 31,		Year Ended June 30,
	2016		2016		2015		2014
Dividend	None		None		None		None
Volatility	65.63	%	66.34	%	60.86	%	60.40	%
Risk-free interest rate	1.29	%	1.80	%	1.84	%	1.74	%
Expected life (years)	6.3		6.3		6.3		6.3

Summary of stock option activity

A summary of option activity under the 2006 and 2016 Plans as of June 30, 2016 and December 31, 2016, and changes during the year ended June 30, 2016 and the six month period ended December 31, 2016 is presented below (in thousands, except weighted‑average data):

		Weighted-		Weighted-
	Number	Average		Average	Aggregate
	of Stock	Exercise		Remaining	Intrinsic
	Options	Price		Life in Yrs	Value
Outstanding at June 30, 2015	9,689	$	12.49
Granted	3,340	$	14.34
Exercised	(555)	$	9.30
Forfeited/Canceled	(661)	$	14.84
Outstanding at June 30, 2016	11,813	$	13.03	6.82	$	—
Outstanding at June 30, 2016—vested or unvested and expected to vest	11,475	$	13.05	6.76	$	—
Exercisable at June 30, 2016	6,453	$	12.63	5.30	$	—
Outstanding at June 30, 2016	11,813	$	13.03
Granted	3,536	$	2.90
Exercised	—	$	—
Forfeited/Canceled	(1,670)	$	10.64
Outstanding at December 31, 2016	13,679	$	10.70	6.55	$	23
Outstanding at December 31, 2016—vested or unvested and expected to vest	13,516	$	10.76	6.52	$	22
Exercisable at December 31, 2016	7,898	$	13.15	4.70	$	—

Summary of restricted stock activity

A summary of restricted stock activity under the 2006 and 2016 Plans as of June 30, 2016 and December 31, 2016, and changes during the year ended June 30, 2016 and the six month period ended December 31, 2016 is presented below (in thousands, except weighted‑average data):

		Weighted-
	Number of	Average
	Restricted	Exercise
	Stock Shares	Price
Unvested at June 30, 2015	50,000	$	9.23
Awarded	75,000	$	5.65
Vested	(18,750)	$	10.13
Unvested at June 30, 2016	106,250	$	6.54
Awarded	117,800	$	3.15
Vested	—	$	—
Forfeited	(25,100)		7.52
Unvested at December 31, 2016	198,950	$	4.41

Summary of vested stock option activity

A summary of option activity for options vested during the six months ended December 31, 2016 and fiscal years ended June 30, 2016, 2015 and 2014 is presented below (in thousands):

	Six Months Ended
	December 31,		Year Ended June 30,
	2016		2016		2015		2014
Total fair value of options vested	$	17,121	$	15,298	$	16,145	$	12,535
Total intrinsic value of options exercised		—		3,142		3,275		9,961
Cash received for exercise of stock options		—		5,161		4,429		9,136

Schedule of percentage of total revenues recognized from each significant customer

	Six Months Ended		Year Ended
	December 31,		June 30,
Collaborative Partner:	2016		2016		2015		2014
Bayer	—	%	17	%	—	%	—	%
Lilly	4	%	11	%	21	%	18	%
Novartis	24	%	1	%	43	%	38	%
Roche	60	%	43	%	23	%	34	%
Takeda	8	%	16	%	—	%	—	%