Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2012	Feb. 21, 2013	Jun. 29, 2012
Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Trading Symbol	NKTR
Entity Registrant Name	NEKTAR THERAPEUTICS
Entity Central Index Key	0000906709
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		115,289,548
Entity Public Float			$ 922,720,854

CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 25,437	$ 15,312
Short-term investments	251,757	225,856
Accounts receivable, net of allowance of nil at December 31, 2012 and 2011	5,805	4,938
Inventory	18,269	12,656
Other current assets	13,363	17,944
Total current assets	314,631	276,706
Long-term investments		173,768
Restricted cash	25,000
Property and equipment, net	72,215	78,576
Goodwill	76,501	76,501
Other assets	9,443	999
Total assets	497,790	606,550
Current liabilities:
Accounts payable	2,863	3,019
Accrued compensation	8,773	12,807
Accrued expenses	8,008	6,669
Accrued clinical trial expenses	17,500	11,953
Deferred revenue, current portion	21,896	19,643
Interest payable	7,083	1,805
Convertible subordinated notes		214,955
Other current liabilities	12,414	4,681
Total current liabilities	78,537	275,532
Senior secured notes	125,000
Capital lease obligations, less current portion	11,607	14,582
Liability related to the sale of future royalties, less current portion	128,266
Deferred revenue, less current portion	96,551	108,188
Deferred gain	2,404	3,278
Other long-term liabilities	8,407	7,159
Total liabilities	450,772	408,739
Commitments and contingencies
Stockholders' equity:
Preferred stock, 10,000 shares authorized, $0.0001 par value; 3,100 shares designated Series A and no shares issued or outstanding at December 31, 2011; no shares designated, issued or outstanding at December 31, 2012
Common stock, $0.0001 par value; 300,000 authorized; 115,259 shares and 114,485 shares issued and outstanding at December 31, 2012 and 2011, respectively	11	11
Capital in excess of par value	1,617,744	1,597,428
Accumulated other comprehensive loss	(357)	(1,103)
Accumulated deficit	(1,570,380)	(1,398,525)
Total stockholders' equity	47,018	197,811
Total liabilities and stockholders' equity	$ 497,790	$ 606,550

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Allowances for accounts receivable
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000	10,000
Preferred stock, shares designated Series A	0	3,100
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	300,000	300,000
Common stock, shares issued	115,259	114,485
Common stock, shares outstanding	115,259	114,485

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenue:
Product sales	$ 35,399	$ 24,864	$ 27,412
Royalty revenues	4,874	10,327	7,255
Non-cash royalty revenue related to sale of future royalties	10,791
License, collaboration and other revenue	30,127	36,289	124,372
Total revenue	81,191	71,480	159,039
Operating costs and expenses:
Cost of goods sold	30,428	21,891	25,667
Research and development	148,675	126,766	108,065
General and administrative	41,614	46,760	40,986
Impairment of long-lived assets	1,675		12,576
Total operating costs and expenses	222,392	195,417	187,294
Loss from operations	(141,201)	(123,937)	(28,255)
Non-operating income (expense):
Interest income	2,315	2,244	1,545
Interest expense	(15,489)	(10,223)	(11,174)
Non-cash interest expense on liability related to sale of future royalties	(18,057)
Other income (expense), net	983	(1,044)	827
Total non-operating expense, net	(30,248)	(9,023)	(8,802)
Loss before provision for income taxes	(171,449)	(132,960)	(37,057)
Provision for income taxes	406	1,018	881
Net loss	$ (171,855)	$ (133,978)	$ (37,938)
Basic and diluted net loss per share	$ (1.50)	$ (1.19)	$ (0.40)
Weighted average shares outstanding used in computing basic and diluted net loss per share	114,820	112,942	94,079

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Net loss	$ (171,855)	$ (133,978)	$ (37,938)
Other comprehensive income (loss):
Net unrealized gain (loss) on available-for-sale investments	1,206	(783)	(267)
Income tax benefit on unrealized gain on available-for-sale investments	(470)
Net foreign currency translation gain (loss)	10	(1,288)	210
Other comprehensive income (loss), net of tax	746	(2,071)	(57)
Comprehensive loss	$ (171,109)	$ (136,049)	$ (37,995)

- Definition

This item represents the tax effects occurring during the period which are related to the net unrealized gain (loss) resulting from changes in the fair [carrying] value during the period of available-for-sale securities. Such tax affects would have been charged or credited directly to other comprehensive income or to related components of shareholders' equity.

+ References+ Details

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References+ Details

- Definition

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

+ References

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+ Details

- Definition

Amount after tax and reclassification adjustments, resulting from the process of expressing in the reporting currency of the reporting entity those amounts that are denominated or measured in a different currency, and from transactions whose terms are denominated in a currency other than the entity's functional currency, which is attributable to noncontrolling interests.

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Reference 1: http://www.xbrl.org/2003/role/presentationRef

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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+ Details

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (USD $) In Thousands	Total	Common Stock [Member]	Capital in Excess of Par Value [Member]	Accumulated Other Comprehensive Income/(Loss) [Member]	Accumulated Deficit [Member]
Beginning Balance at Dec. 31, 2009	$ 102,367	$ 9	$ 1,327,942	$ 1,025	$ (1,226,609)
Beginning Balance, Shares at Dec. 31, 2009		93,281
Stock option exercises and RSU release	8,340		8,340
Stock option exercises and RSU release, Shares		1,176
Stock-based compensation	17,399		17,399
Shares issued for Employee Stock Purchase Plan	551		551
Shares issued for Employee Stock Purchase Plan, Shares		60
Other comprehensive income/loss	(57)			(57)
Net loss	(37,938)				(37,938)
Ending Balance at Dec. 31, 2010	90,662	9	1,354,232	968	(1,264,547)
Ending Balance, Shares at Dec. 31, 2010		94,517
Sale of common stock	219,783	2	219,781
Sale of common stock, Shares		19,000
Stock option exercises and RSU release	3,916		3,916
Stock option exercises and RSU release, Shares		866
Stock-based compensation	18,885		18,885
Shares issued for Employee Stock Purchase Plan	614		614
Shares issued for Employee Stock Purchase Plan, Shares		102
Other comprehensive income/loss	(2,071)			(2,071)
Net loss	(133,978)				(133,978)
Ending Balance at Dec. 31, 2011	197,811	11	1,597,428	(1,103)	(1,398,525)
Ending Balance, Shares at Dec. 31, 2011		114,485
Shares issued under equity compensation plans	4,117		4,117
Shares issued under equity compensation plans, Shares		774
Stock-based compensation	16,199		16,199
Other comprehensive income/loss	746			746
Net loss	(171,855)				(171,855)
Ending Balance at Dec. 31, 2012	$ 47,018	$ 11	$ 1,617,744	$ (357)	$ (1,570,380)
Ending Balance, Shares at Dec. 31, 2012		115,259

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net loss	$ (171,855)	$ (133,978)	$ (37,938)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash interest expense on liability related to sale of future royalties	18,057
Non-cash royalty revenue related to sale of future royalties	(10,791)
Stock-based compensation	16,199	18,885	17,399
Depreciation and amortization	14,508	14,951	16,551
Impairment of long-lived assets	1,675		12,576
Other non-cash transactions	845	1,359	198
Changes in assets and liabilities:
Accounts receivable, net	(867)	20,164	(20,301)
Inventory	(5,613)	(5,390)	(795)
Other assets	6,031	(12,267)	577
Accounts payable	(122)	(3,384)	4,274
Accrued compensation	(4,034)	3,555	(800)
Accrued expenses	1,495	1,013	1,683
Accrued clinical trial expenses	5,547	(191)	(2,023)
Deferred revenue	(9,384)	(17,516)	(47,025)
Interest payable	5,278
Other liabilities	3,275	(943)	(247)
Net cash used in operating activities	(129,756)	(113,742)	(55,871)
Cash flows from investing activities:
Purchases of property and equipment	(10,583)	(9,722)	(31,457)
Restricted cash	(25,000)
Maturities of investments	307,887	383,052	475,813
Sales of investments	5,378	210,089	15,479
Purchases of investments	(164,662)	(695,371)	(443,122)
Net cash provided by (used in) investing activities	113,020	(111,952)	16,713
Cash flows from financing activities:
Proceeds from issuance of senior secured notes, net of $4.5 million of issuance costs	77,940
Repayment of convertible subordinated notes	(172,407)
Payment of capital lease obligations	(2,437)	(1,978)	(1,356)
Proceeds from sale of future royalties, net of $4.4 million of transaction costs	119,588
Proceeds from shares issued under equity compensation plans	4,117	4,530	8,891
Issuance of common stock, net of issuance costs		219,783
Net cash provided by financing activities	26,801	222,335	7,535
Effect of exchange rates on cash and cash equivalents	60	916	(219)
Net increase (decrease) in cash and cash equivalents	10,125	(2,443)	(31,842)
Cash and cash equivalents at beginning of year	15,312	17,755	49,597
Cash and cash equivalents at end of year	25,437	15,312	17,755
Supplemental disclosure of cash flow information:
Cash paid for interest	9,620	10,277	10,599
Cash paid for income taxes	1,021	957	407
Supplemental schedule of non-cash investing and financing activities:
Retirement of convertible subordinated notes in exchange for senior secured notes	42,548
Property and equipment acquired through capital leases			$ 195

Organization and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Organization and Summary of Significant Accounting Policies

Note 1 — Organization and Summary of Significant Accounting Policies

Organization

We are a clinical-stage biopharmaceutical company headquartered in San Francisco, California and incorporated in Delaware. We are developing a pipeline of drug candidates that utilize our PEGylation and advanced polymer conjugate technology platforms with the objective to improve the benefits of drugs for patients.

Our research and development activities have required significant resources to date and are expected to continue to require significant resources. As a result, we expect to continue to incur substantial losses and negative cash flows from operations in the future. We have financed our operations primarily through cash from licensing, collaboration and manufacturing agreements as well as financing transactions. At December 31, 2012, we had approximately $302.2 million in cash, cash equivalents and investments in marketable securities, of which $25.0 million was restricted, and $149.0 million in indebtedness. The indebtedness includes $125.0 million in aggregate principal amount of 12.0% senior secured notes due July 15, 2017 which we issued during the year ended December 31, 2012, but excludes our long-term liability relating to the sale of future royalties. As is further described in Note 7, this royalty obligation liability will not be settled in cash, but we may be required to make a payment of up to $7.0 million to the royalty purchaser in 2014 if certain worldwide net sales thresholds of MIRCERA^® in 2013 are not met. During the year ended December 31, 2012, we retired $215.0 million in aggregate principal amount of all of our previously outstanding convertible subordinated notes.

Basis of Presentation, Principles of Consolidation and Use of Estimates

Our consolidated financial statements include the financial position, results of operations and cash flows of our wholly-owned subsidiaries: Nektar Therapeutics (India) Private Limited, Nektar Therapeutics UK, Ltd. (Nektar UK) and Aerogen, Inc. All intercompany accounts and transactions have been eliminated in consolidation. In December 2010, we completed the dissolution of Aerogen, Inc. and all remaining assets were transferred to Nektar Therapeutics.

Our consolidated financial statements are denominated in U.S. dollars. Accordingly, changes in exchange rates between the applicable foreign currency and the U.S. dollar will affect the translation of each foreign subsidiary’s financial results into U.S. dollars for purposes of reporting our consolidated financial results. Translation gains and losses are included in accumulated other comprehensive income (loss) in the stockholders’ equity section of the balance sheet. To date, such cumulative translation adjustments have not been material to our consolidated financial position. Aggregate gross foreign currency transaction gains (losses) recorded in operations for the years ended December 31, 2012, 2011, and 2010 were not material.

The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. On an ongoing basis, we evaluate our estimates, including those related to deferred revenue recognition periods, inventories, the impairment of investments, the impairment of goodwill and long-lived assets, contingencies, estimated interest expense from our liability related to our sale of future royalties, stock-based compensation, and ongoing litigation, amongst other estimates. We base our estimates on historical experience and on other assumptions that management believes are reasonable under the circumstances. These estimates also form the basis for making judgments about the carrying values of assets and liabilities when these values are not readily apparent from other sources.

Reclassifications

Certain items previously reported in specific financial statement captions have been reclassified to conform to the current period presentation. Such reclassifications do not impact previously reported total revenue, operating loss or net loss or total assets, liabilities or stockholders’ equity.

Cash, Cash Equivalents, and Investments, and Fair Value of Financial Instruments

We consider all investments in marketable securities with an original maturity of three months or less when purchased to be cash equivalents. Investments in securities with remaining maturities of less than one year, or where our intent is to use the investments to fund current operations or to make them available for current operations, are classified as short-term investments.

Investments are designated as available-for-sale and are carried at fair value, with unrealized gains and losses reported in stockholders’ equity as accumulated other comprehensive income (loss). The disclosed fair value related to our cash equivalents and investments is based primarily on the reported fair values in our period-end brokerage statements, which are based on market prices from a variety of industry standard data providers and generally represent quoted prices for similar assets in active markets or have been derived from observable market data. We independently validate these fair values using available market quotes and other information.

Interest and dividends on securities classified as available-for-sale, as well as amortization of premiums and accretion of discounts to maturity, are included in interest income. Realized gains and losses and declines in value of available-for-sale securities judged to be other-than-temporary, if any, are included in other income (expense). The cost of securities sold is based on the specific identification method.

Accounts Receivable and Significant Customer Concentrations

Our customers are primarily pharmaceutical and biotechnology companies that are located in the U.S. and Europe. Our accounts receivable balance contains billed and unbilled trade receivables from product sales and royalties, as well as time and materials based billings from collaborative research and development agreements. When appropriate, we provide for an allowance for doubtful accounts by reserving for specifically identified doubtful accounts. We generally do not require collateral from our customers. We perform a regular review of our customers’ payment histories and associated credit risk. We have not experienced significant credit losses from our accounts receivable. At December 31, 2012, four different customers represented 38%, 27%, 14% and 11%, respectively, of our accounts receivable. At December 31, 2011, four different customers represented 26%, 20%, 19% and 17%, respectively, of our accounts receivable.

Inventory and Significant Supplier Concentrations

Inventory is generally manufactured upon receipt of firm purchase orders from our collaboration partners. Inventory includes direct materials, direct labor, and manufacturing overhead and cost is determined on a first-in, first-out basis. Inventory is stated at the lower of cost or market and is net of reserves determined using specific identification plus an estimated reserve for defective or excess inventory based on historical experience or projected usage. Inventory related to research and development activities are expensed when purchased.

We are dependent on our suppliers and contract manufacturers to provide raw materials, drugs and devices of appropriate quality and reliability and to meet applicable contract and regulatory requirements. In certain cases, we rely on single sources of supply of one or more critical materials. Consequently, in the event that supplies are delayed or interrupted for any reason, our ability to develop and produce our drug candidates or our ability to meet our supply obligations could be significantly impaired, which could have a material adverse effect on our business, financial condition and results of operations.

Property and Equipment

Property and equipment are stated at cost. Major improvements are capitalized, while maintenance and repairs are expensed when incurred. Manufacturing, laboratory and other equipment are depreciated using the straight-line method generally over estimated useful lives of three to seven years. Leasehold improvements and buildings are depreciated using the straight-line method over the shorter of the estimated useful life or the remaining term of the lease.

We periodically review our property and equipment for recoverability whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Generally, an impairment loss would be recognized if the carrying amount of an asset exceeds the sum of the discounted cash flows expected to result from the use and eventual disposal of the asset (See Note 11).

Goodwill

Goodwill represents the excess of the price paid for another entity over the fair value of the assets acquired and liabilities assumed in a business combination. We test for impairment in the fourth quarter of each year using an October 1 measurement date, as well as at other times when impairment indicators exist or when events occur or circumstances change that would indicate the carrying amount may not be fully recoverable.

We are organized in one reporting unit and have evaluated the goodwill for the Company as a whole. In order to test for goodwill impairment, we first assess qualitative factors to determine whether it is more likely than not that the fair value of our single reporting unit is less than its carrying amount and, if so, we perform a two-step goodwill impairment test. The first step, identifying a potential impairment, compares the fair value of the reporting unit with its carrying amount. If the carrying amount exceeds its fair value, the second step would need to be performed; otherwise, no. The second step compares the book value of our assigned goodwill to the implied fair value of our goodwill. We did not recognize any goodwill-related impairment charges during 2012, 2011, or 2010.

Revenue Recognition

We enter into arrangements with pharmaceutical and biotechnology collaboration partners that may involve multiple deliverables. Our arrangements may contain one or more of the following elements: upfront fees, contract research and development, milestone payments, manufacturing and supply payments, royalties, and license fees. Each deliverable in the arrangement is evaluated to determine whether it meets the criteria to be accounted for as a separate unit of accounting or whether it should be combined with other deliverables. Revenue is recognized separately for each element.

On January 1, 2011, we adopted on a prospective basis Accounting Standards Update (ASU) 2009-13, which amends the criteria to identify separate units of accounting within Subtopic 605-25, “Revenue Recognition-Multiple-Element Arrangements.” Under this guidance, at the inception of each new multiple-element arrangement or the material modification of an existing multiple-element arrangement, we allocate all consideration received under multiple-element arrangements to all units of accounting based on the relative selling price method, generally based on our best estimate of selling price (ESP). The objective of ESP is to determine the price at which we would transact a sale if the product or service was sold on a stand-alone basis. We determine ESP for the elements in our collaboration arrangements by considering multiple factors including, but not limited to, technical complexity of the performance obligation and similarity of elements to those performed under previous arrangements. Since we apply significant judgment in arriving at the ESPs, any material change in our estimates would significantly affect the allocation of the total consideration to the different elements of a multiple element arrangement.

Product sales

Product sales are primarily derived from cost-plus and fixed price manufacturing and supply agreements with our collaboration partners and revenue is recognized when there is persuasive evidence that an arrangement exists, delivery has occurred, the price is fixed or determinable, and collection is reasonably assured. We have not experienced any significant returns from our customers.

Royalty revenues

Generally, we are entitled to royalties from our partners based on the net sales of their approved drugs that are marketed and sold in one or more countries where we hold royalty rights. We recognize royalty revenue when the cash is received or when the royalty amount to be received is estimable and collection is reasonably assured. With respect to the non-cash royalties related to sale of future royalties described at Note 7, revenues are recognized during the period in which the related royalty report is received, which generally occurs in the quarter after the applicable product sales are made.

License, collaboration and other

Upfront fees received by us in license and collaboration arrangements that include future obligations, such as manufacturing and supply obligations, are recognized ratably over our expected performance period under each respective arrangement. We make our best estimate of the period over which we expect to fulfill our performance obligations, which may include technology transfer assistance, research activities, clinical development activities, and manufacturing activities from development through the commercialization of the product. Given the uncertainties of these collaboration arrangements, significant judgment is required to determine the duration of the performance period.

On January 1, 2011, we elected to prospectively adopt ASU 2010-17, “Milestone Method of Revenue Recognition”. Under the milestone method, contingent consideration received from the achievement of a substantive milestone is recognized in its entirety in the period in which the milestone is achieved, which we believe is consistent with the substance of our performance under our various license and collaboration agreements. A milestone is defined as an event (i) that can only be achieved based in whole or in part either on the entity’s performance or on the occurrence of a specific outcome resulting from the entity’s performance, (ii) for which there is substantive uncertainty at the date the arrangement is entered into that the event will be achieved, and (iii) that would result in additional payments being due to the entity. A milestone is substantive if the consideration earned from the achievement of the milestone is consistent with our performance required to achieve the milestone or the increase in value to the collaboration resulting from our performance, relates solely to our past performance, and is reasonable relative to all of the other deliverables and payments within the arrangement.

Our license and collaboration agreements with our partners provide for payments to us upon the achievement of development milestones, such as the completion of clinical trials or regulatory submissions, approvals by health authorities, and commercial launches of drugs. Given the challenges inherent in developing and obtaining regulatory approval for drug products and in achieving commercial launches, there was substantial uncertainty whether any such milestones would be achieved at the time of execution of these licensing and collaboration agreements. In addition, we evaluated whether the development milestones meet the remaining criteria to be considered substantive. As a result of our analysis, we consider our remaining development milestones under all of our license and collaboration agreements to be substantive and, accordingly, we expect to recognize as revenue future payments received from such milestones only if and as each milestone is achieved.

Our license and collaboration agreements with certain partners also provide for contingent payments to us based solely upon the performance of the respective partner. For such contingent amounts we expect to recognize the payments as revenue when earned under the applicable contract, which is generally upon completion of performance by the respective partner, provided that collection is reasonably assured.

Our license and collaboration agreements with our partners also provide for payments to us upon the achievement of specified sales volumes of approved drugs. We consider these payments to be similar to royalty payments and we will recognize such sales-based payments upon achievement of such sales volumes, provided that collection is reasonably assured.

Shipping and Handling Costs

We recognize costs related to shipping and handling of product to customers in cost of goods sold.

Stock-Based Compensation

Stock-based compensation arrangements include stock option grants and restricted stock unit (RSU) awards under our equity incentive plans, as well as shares issued under our Employee Stock Purchase Plan (ESPP), in which employees may purchase our common stock at a discount to the market price.

We use the Black-Scholes option valuation model for the respective grant to determine the estimated fair value of the option on the date of grant (grant date fair value) and the estimated fair value of common stock purchased under the ESPP. The Black-Scholes option pricing model requires the input of highly subjective assumptions. Because our employee stock options have characteristics significantly different from those of traded options, and because changes in the subjective input assumptions can materially affect the fair value estimate, in management’s opinion, the existing models may not provide a reliable single measure of the fair value of our employee stock options or common stock purchased under the ESPP. Management will continue to assess the assumptions and methodologies used to calculate the estimated fair value of stock-based compensation. Circumstances may change and additional data may become available over time, which could result in changes to these assumptions and methodologies, and which could materially impact our fair value determination.

We expense the value of the portion of the option or award that is ultimately expected to vest based on the historical forfeiture rate on a straight line basis over the requisite service periods in our Consolidated Statements of Operations. For awards that vest upon the achievement of performance milestones, we estimate the vesting period based on our evaluation of the probability of achievement of each respective milestone and the related estimated date of achievement. Stock-based compensation expense for purchases under the ESPP are recognized based on the estimated fair value of the common stock during each offering period and the percentage of the purchase discount. Expense amounts are allocated among inventory, cost of goods sold, research and development expense, and general and administrative expense based on the function of the applicable employee. Stock-based compensation charges are non-cash charges and as such have no impact on our reported cash flows.

Research and Development Expense

Research and development costs are expensed as incurred and include salaries, benefits and other operating costs such as outside services, supplies and allocated overhead costs. We perform research and development for our proprietary drug candidates and technology development and for certain third parties under collaboration agreements. For our proprietary drug candidates and our internal technology development programs, we invest our own funds without reimbursement from a third party.

We record accruals for the estimated costs of our clinical trial activities performed by third parties. We generally accrue costs associated with the start-up and reporting phases of the clinical trials ratably over the estimated duration of the start-up and reporting phases. We generally accrue costs associated with the treatment phase of clinical trials based on the total estimated cost of the treatment phase on a per patient basis and we expense the per patient cost ratably over the estimated patient treatment period based on patient enrollment in the trials. In addition, certain time-based costs are expensed ratably over the treatment phase. Advance payments for goods or services that will be used or rendered for future research and development activities are capitalized as prepaid expenses and recognized as expense as the related goods are delivered or the related services are performed.

Net Loss Per Share

Basic net loss per share is calculated based on the weighted-average number of common shares outstanding during the periods presented. For all periods presented in the Consolidated Statements of Operations, the net loss available to common stockholders is equal to the reported net loss. Basic and diluted net loss per share are the same due to our historical net losses and the requirement to exclude potentially dilutive securities which would have an anti-dilutive effect on net loss per share. The weighted average of these potentially dilutive securities has been excluded from the diluted net loss per share calculation and is as follows (in thousands):


	Year Ended December 31,
	2012		2011		2010
Stock options		13,970		11,338		9,338
Convertible subordinated notes		—		9,989		9,989

Total		13,970		21,327		19,327

Income Taxes

We account for income taxes under the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax reporting bases of assets and liabilities and are measured using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain. We record a valuation allowance against deferred tax assets to reduce their carrying value to an amount that is more likely than not to be realized. When we establish or reduce the valuation allowance related to the deferred tax assets, our provision for income taxes will increase or decrease, respectively, in the period such determination is made.

We utilize a two-step approach to recognize and measure uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained upon tax authority examination, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement.

Comprehensive loss

Comprehensive loss is the change in stockholders’ equity from transactions and other events and circumstances other than those resulting from investments by stockholders and distributions to stockholders. Our other comprehensive income (loss) is comprised of net loss, gains and losses from the foreign currency translation of the assets and liabilities of our India and UK subsidiaries, and unrealized gains and losses on investments.

Recent Accounting Pronouncements

On January 1, 2012, we were required to adopt new accounting guidance related to the presentation of comprehensive income that prohibits the presentation of other comprehensive income (OCI) in the statement of stockholders’ equity and instead, provides the option of presenting OCI in a continuous statement of comprehensive income or as two separate consecutive statements. We elected to present OCI in two separate consecutive statements.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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+ Details

Cash, Cash Equivalents, and Available-For-Sale Investments

12 Months Ended

Dec. 31, 2012

Cash, Cash Equivalents, and Available-For-Sale Investments

Note 2 — Cash, Cash Equivalents, and Available-For-Sale Investments

Cash, cash equivalents, and available-for-sale investments are as follows (in thousands):


	Estimated Fair Value at
	December 31, 2012		December 31, 2011
Cash and cash equivalents	$	25,437	$	15,312
Short-term investments		251,757		225,856
Long-term investments		—		173,768
Restricted cash		25,000		—

Total cash, cash equivalents, and available-for-sale investments	$	302,194	$	414,936

Included in our restricted cash balance on our Consolidated Balance Sheet at December 31, 2012 is $25.0 million of restricted cash required to be maintained until July 1, 2017 under the terms of our senior secured notes issued in July 2012. At December 31, 2012 and 2011, we had letter of credit arrangements in favor of a landlord and certain vendors totaling $2.4 million. These letters of credit are secured by investments of similar amounts.

Our portfolio of cash, cash equivalents, and available-for-sale investments includes (in thousands):


	Estimated Fair Value at
	December 31, 2012		December 31, 2011
Corporate notes and bonds	$	241,158	$	344,427
U.S. corporate commercial paper		3,990		9,464
Obligations of U.S. government agencies		6,108		44,230
Obligations of U.S. states and municipalities		1,504		1,503

Available-for-sale investments		252,760		399,624
Cash and money market funds, including restricted cash		49,434		15,312

Total cash, cash equivalents, and available-for-sale investments	$	302,194	$	414,936

The following table summarizes our portfolio of available-for-sale investments reported as short-term and long-term investments by contractual maturity (in thousands):


	Estimated Fair Value at
	December 31, 2012		December 31, 2011
Less than one year	$	251,757	$	213,386
Greater than one year but less than two years		—		186,238

Total available-for-sale investments	$	251,757	$	399,624

We invest in liquid, high quality debt securities. Our investments in debt securities are subject to interest rate risk. To minimize the exposure due to an adverse shift in interest rates, we invest in securities with maturities of two years or less and maintain a weighted average maturity of one year or less.

Gross unrealized gains and losses were not significant at December 31, 2012 and 2011. During the years ended December 31, 2012, 2011, and 2010, we sold available-for-sale securities totaling $5.4 million, $210.1 million and $15.5 million, respectively, and realized gains and losses were not significant in any of those periods.

All of our investments are categorized as Level 1 or Level 2, as explained in the table below. During the years ended December 31, 2012, 2011, and 2010, there were no transfers between Level 1 and Level 2 of the fair value hierarchy. The following table represents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of December 31, 2012 and 2011 (in thousands):


As of December 31, 2012:	Level 1		Level 2		Level 3		Total
Money market funds	$	22,487	$	—	$	—	$	22,487
U.S. corporate commercial paper		—		3,990		—		3,990
Corporate notes and bonds		—		241,158		—		241,158
Obligations of U.S. government agencies		—		6,108		—		6,108
Obligations of U.S. states and municipalities		—		1,504		—		1,504

Cash equivalents and available-for-sale investments	$	22,487	$	252,760	$	—	$	275,247
Cash, including restricted cash								26,947

Cash, cash equivalents, and available-for-sale investments							$	302,194


As of December 31, 2011:	Level 1		Level 2		Level 3		Total
Money market funds	$	13,950	$	—	$	—	$	13,950
U.S. corporate commercial paper		—		9,464		—		9,464
Corporate notes and bonds		—		344,427		—		344,427
Obligations of U.S. government agencies		—		44,230		—		44,230
Obligations of U.S. states and municipalities		—		1,503		—		1,503

Cash equivalents and available-for-sale investments	$	13,950	$	399,624	$	—	$	413,574
Cash								1,362

Cash, cash equivalents, and available-for-sale investments							$	414,936

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

- Definition

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

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+ Details

Inventory

12 Months Ended

Dec. 31, 2012

Inventory

Note 3 — Inventory

Inventory consists of the following (in thousands):


	December 31,
	2012		2011
Raw materials	$	7,489	$	6,660
Work-in-process		6,661		4,313
Finished goods		4,119		1,683

Inventory	$	18,269	$	12,656

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

+ References+ Details

Property and Equipment

12 Months Ended

Dec. 31, 2012

Property and Equipment

Note 4 — Property and Equipment

Property and equipment consist of the following (in thousands):


	December 31,
	2012			2011
Building and leasehold improvements	$	72,180		$	72,473
Laboratory equipment		27,145			26,290
Manufacturing equipment		20,877			19,550
Furniture, fixtures and other equipment		21,914			20,750

Depreciable property and equipment at cost		142,116			139,063
Less: accumulated depreciation		(72,666	)		(62,237	)

Depreciable property and equipment, net		69,450			76,826
Construction-in-progress		2,765			1,750

Property and equipment, net	$	72,215		$	78,576

Building and leasehold improvements include our manufacturing, research and development and administrative facilities and the related improvements to these facilities. Laboratory and manufacturing equipment include assets that support both our manufacturing and research and development efforts. Construction-in-progress includes assets being built to enhance our manufacturing and research and development efforts. Property and equipment includes certain assets acquired through capital leases (See Note 6).

In July 2012, we consolidated our U.S.-based research activities into our existing San Francisco facility and ceased use of one of our buildings located in Huntsville, Alabama that was dedicated to research activities. The announcement of this consolidation plan in March 2012 triggered the recognition of a $1.7 million impairment charge relating to these assets (see Note 11).

Depreciation expense, including depreciation of assets acquired through capital leases, for the years ended December 31, 2012, 2011, and 2010 was $13.8 million, $15.0 million, and $14.8 million, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References+ Details

Senior Secured Notes and Convertible Subordinated Notes

12 Months Ended

Dec. 31, 2012

Senior Secured Notes and Convertible Subordinated Notes

Note 5 — Senior Secured Notes and Convertible Subordinated Notes

The outstanding balances of our senior secured notes and our convertible subordinated notes are as follows (in thousands):


	Semi-Annual Interest Payment Dates	December 31,
	Semi-Annual Interest Payment Dates	2012		2011
12% Senior Secured Notes due July 2017	January 15, July 15	$	125,000	$	—
3.25% Convertible Subordinated Notes due September 2012	March 28, September 28	$	—	$	214,955

On July 11, 2012, we issued $125.0 million in aggregate principal amount of senior secured notes (Senior Notes) with the entire principal amount due on July 15, 2017. The Senior Notes bear interest at 12.0% per annum payable in cash semi-annually in arrears on January 15 and July 15 of each year, beginning January 15, 2013. The Senior Notes are secured by a first-priority lien on substantially all of our assets. In connection with this transaction, we retired $42.5 million of principal amount of our convertible subordinated notes in exchange for the same principal amount of Senior Notes and received the remaining proceeds in cash, less approximately $4.5 million in transaction costs. Given that the Senior Notes were recently issued in July 2012, we believe the carrying amount of the Senior Notes is consistent with its fair value at December 31, 2012.

The Senior Notes contain customary covenants, including covenants that limit or restrict our ability to incur liens, incur indebtedness, and make certain restricted payments, but do not contain covenants related to future financial performance. In particular, $25.0 million of the proceeds is required to be maintained in a restricted account until July 1, 2015 and which is included in restricted cash. The Senior Notes are callable by us at any time, subject to certain prepayment premiums and conditions. If we experience certain change of control events, the holders of the Senior Notes will have the right to require us to purchase all or a portion of the Senior Notes at a purchase price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase. In addition, upon certain asset sales, we may be required to offer to use the net proceeds thereof to purchase some of the Senior Notes at 100% of the principal amount thereof, plus accrued and unpaid interest to the date of purchase.

We used the proceeds from the issuance of the Senior Notes and our existing cash to repay the remaining $172.4 million in principal amount of our convertible subordinated notes in full at maturity on September 28, 2012.

Leases

12 Months Ended

Dec. 31, 2012

Leases

Note 6 — Leases

Capital Leases

We lease office space and certain office equipment under capital lease arrangements. The gross carrying value by major asset class and accumulated depreciation as of December 31, 2012 and 2011 are as follows (in thousands):


	December 31,
	2012			2011
Building and leasehold improvements	$	2,117		$	2,117
Furniture, fixtures and other equipment		195			195

Total assets recorded under capital leases		2,312			2,312
Less: accumulated depreciation		(882	)		(464	)

Net assets recorded under capital leases	$	1,430		$	1,848

We lease office space at 201 Industrial Road in San Carlos, California under capital lease arrangements. Under the terms of the lease, rent increases up to 3% annually and the lease termination date is October 5, 2016. As of November 29, 2010, we ceased use of this space as a result of the relocation of our San Carlos operations and corporate headquarters to San Francisco, California. We have subleased portions of the San Carlos facility and are currently seeking one or more subtenants for the remaining space, but have not been relieved of any obligations under the terms of this lease. As a result of our relocation, an impairment test was performed for the building and related leasehold improvements located in San Carlos. As a result of this impairment test, we recorded an impairment charge of $12.6 million in November 2010 (see Note 11).

Future minimum payments for our capital leases at December 31, 2012 are as follows (in thousands):


Years ending December 31,
2013	$	5,129
2014		5,191
2015		5,280
2016		4,034

Total minimum payments required	$	19,634
Less: amount representing interest		(5,057	)

Present value of future minimum lease payments	$	14,577
Less: current portion		(2,970	)

Capital lease obligation, less current portion	$	11,607

Operating Lease

On September 30, 2009, we entered into an operating sublease (Sublease) with Pfizer, Inc. for a 102,283 square foot facility located in San Francisco, California (Mission Bay Facility). Upon completion of construction of the Mission Bay Facility, we moved in on November 29, 2010. The Mission Bay Facility includes a research and development center with biology, chemistry, pharmacology, and clinical development capabilities, as well as all of the functions previously located in San Carlos, California, including our corporate headquarters.

Under the terms of the Sublease, we will begin making non-cancelable lease payments in 2014, after the expiration of our free rent period on August 1, 2014. The Sublease term is 114 months, commencing in August 2010 and terminating on January 31, 2020. Monthly base rent will start at $2.95 per square foot and will escalate over the term of the sublease at various intervals to $3.42 per square foot in the final period of the Sublease term. Rent expense is being recognized ratably from April 2010, the inception of our tenant improvement construction period, through the end of the Sublease term. In addition, throughout the term of the Sublease, we are responsible for paying certain costs and expenses specified in the Sublease, including insurance costs and a pro rata share of operating expenses and applicable taxes for the Mission Bay Facility.

On December 28, 2011, we amended the Sublease to include an additional 24,002 square feet of space. The amendment term commenced on December 28, 2011 and ends on January 31, 2020. However, we retain the right to terminate the amendment on or prior to May 31, 2013. Under the terms of the amendment, beginning January 1, 2012, we began making lease payments of $40,000 per month which will continue until the termination option expires.

Our future minimum lease payments for our operating lease at December 31, 2012 are as follows (in thousands):


Years ending December 31,
2013	$	200
2014		1,509
2015		3,667
2016		3,777
2017		3,888
2018 and thereafter		8,479

Total future minimum lease payments	$	21,520

We recognize rent expense on a straight-line basis over the lease period. For the years ended December 31, 2012, 2011, and 2010, rent expense for all our operating leases, including our Mission Bay Facility, was approximately $2.8 million, $2.4 million, and $2.2 million, respectively.

Liability Related to Sale of Future Royalties

12 Months Ended

Dec. 31, 2012

Note 7 — Liability Related to Sale of Future Royalties

On February 24, 2012, we entered into a Purchase and Sale Agreement (the Purchase and Sale Agreement) with RPI Finance Trust (RPI), an affiliate of Royalty Pharma, pursuant to which we sold, and RPI purchased, our right to receive royalty payments (the Royalty Entitlement) arising from the worldwide net sales, from and after January 1, 2012, of (a) CIMZIA^®, under Nektar’s license, manufacturing and supply agreement with UCB Pharma (UCB), and (b) MIRCERA^®, under Nektar’s license, manufacturing and supply agreement with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc. (together referred to as Roche). We received aggregate cash proceeds for the Royalty Entitlement of $124.0 million. As part of this sale, we incurred approximately $4.4 million in transaction costs, which will be amortized to interest expense over the estimated life of the Purchase and Sale Agreement. As a result of our ongoing manufacturing and supply obligations related to the generation of these royalties, although we sold all of our rights to receive royalties from the CIMZIA^® and MIRCERA^® products, we will continue to account for these royalties as revenue and recorded the $124.0 million in proceeds from this transaction as a liability (Royalty Obligation) that will be amortized using the interest method over the estimated life of the Purchase and Sale Agreement.

The following table shows the activity within the liability account during the year ended December 31, 2012 (in thousands):


Liability related to sale of future royalties—beginning balance	$	—
Proceeds from sale of future royalties		124,000
Non-cash interest expense recognized during 2012		18,057
CIMZIA^® and MIRCERA^® royalties paid to RPI during 2012		(10,791	)

Total liability related to sale of future royalties as of December 31, 2012		131,266
Less: current portion		(3,000	)

Liability related to sale of future royalties, less current portion	$	128,266

As a result of this liability accounting, even though the royalties from UCB and Roche are remitted directly to RPI which started in the second quarter of 2012 for royalties arising from product sales in the first quarter of 2012, we will continue to recognize revenue for these royalties. We recognize royalties from net sales of CIMZIA^® and MIRCERA^® upon notification of the actual royalty amount, which occurs in the quarter after such sales are made. During the year ended December 31, 2012, we recognized $13.5 million in aggregate royalties from net sales of CIMZIA^® and MIRCERA^®, of which the $2.7 million recognized in the three months ended March 31, 2012 was retained by us as these amounts resulted from royalties on product sales in the fourth quarter of 2011 and the $10.8 million recognized in the nine month period ended December 31, 2012 was remitted by UCB and Roche directly to RPI as these amounts resulted from product sales in the first three quarters of 2012.

As royalties are remitted to RPI from Roche and UCB, the balance of the Royalty Obligation will be effectively repaid over the life of the agreement. In order to determine the amortization of the Royalty Obligation, we are required to estimate the total amount of future royalty payments to be received by RPI and payments we are required to make to RPI as noted below, if any, over the life of the agreement. The sum of these amounts less the $124.0 million proceeds we received will be recorded as interest expense over the life of the Royalty Obligation. Since inception, our estimate of this total interest expense resulted in an effective annual interest rate of approximately 17%. We will periodically assess the estimated royalty payments to RPI from UCB and Roche and to the extent such payments are greater or less than our initial estimates, or the timing of such payments is materially different than our original estimates, we will prospectively adjust the amortization of the Royalty Obligation. There are a number of factors that could materially affect the amount and timing of royalty payments from CIMZIA^® and MIRCERA^®, most of which are not within our control. Such factors include, but are not limited to, changing standards of care, the introduction of competing products, manufacturing or other delays, biosimilar competition, intellectual property matters, adverse events that result in governmental health authority imposed restrictions on the use of the drug products, and other events or circumstances that could result in reduced royalty payments from CIMZIA^® and MIRCERA^®, all of which would result in a reduction of non-cash royalty revenues and the non-cash interest expense over the life of the Royalty Obligation. Conversely, if sales of CIMZIA^® and MIRCERA^® are more than expected, the non-cash royalty revenues and the non-cash interest expense recorded by us would be greater over the term of the Royalty Obligation.

Pursuant to the Purchase and Sale Agreement, we are required to pay to RPI (a) $3.0 million if certain worldwide net sales thresholds of MIRCERA^® for the 12 month period ending on December 31, 2012 are not achieved and (b) up to an additional $7.0 million if certain worldwide net sales thresholds of MIRCERA^® for the 12 month period ending on December 31, 2013 are not achieved. The Purchase and Sale Agreement grants RPI the right to receive certain reports and other information relating to the Royalty Entitlement and contains other representations and warranties, covenants and indemnification obligations that are customary for a transaction of this nature. In particular, if we breach our obligations under the Purchase and Sale Agreement, we could be required to pay damages to RPI that are not limited to the purchase price we received in the sale transaction. As of December 31, 2012, we have concluded that it is probable that the minimum 2012 MIRCERA^® net sales threshold will not be met and, therefore, we expect to make the $3.0 million payment to RPI described above in the first quarter of 2013. The liability for this expected $3.0 million payment is included in other current liabilities on our Consolidated Balance Sheet at December 31, 2012.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies

Note 8 — Commitments and Contingencies

Royalty Expense

We have third party licenses that require us to pay royalties based on our shipment of certain products and/or on our receipt of royalty payments under certain of our collaboration agreements. Royalty expense, which is reflected in cost of goods sold in our Consolidated Statements of Operations, was approximately $2.9 million, $1.8 million, and $2.2 million for the years ended December 31, 2012, 2011, and 2010, respectively. The overall maximum amount of these obligations is based upon sales of the applicable products by our collaboration partners and cannot be reasonably estimated.

Purchase Commitments

In the normal course of business we enter into various firm purchase commitments related to contract manufacturing, clinical development and certain other items. As of December 31, 2012, these commitments were approximately $14.6 million, all of which are expected to be paid in 2013.

Legal Matters

From time to time, we are involved in lawsuits, arbitrations, claims, investigations and proceedings, consisting of intellectual property, commercial, employment and other matters, which arise in the ordinary course of business. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are reviewed at least quarterly and adjusted to reflect the impact of settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. If any unfavorable ruling were to occur in any specific period, there exists the possibility of a material adverse impact on the results of operations of that period or on our cash flows and liquidity.

On November 18, 2009, the Research Foundation of the State University of New York (SUNY) filed an action against Nektar in the United States District Court for the Northern District of New York. SUNY seeks to recover amounts it alleges it is owed pursuant to a technology licensing contract between Nektar and SUNY. We dispute SUNY’s claims. Discovery in the matter has closed and cross motions for summary judgment (including Nektar’s motion for summary judgment dismissing the action) were filed in October 2012. The motions are fully briefed and are currently being considered by the court. In the event the action survives Nektar’s motion, we expect that a trial would be scheduled in the first half of 2013. We believe that SUNY’s claims are without merit. No reasonable estimate of the possible loss or range of loss can be made at this time and no liabilities have been recorded for this matter on our Consolidated Balance Sheets as of December 31, 2012 or 2011.

Indemnifications in Connection with Commercial Agreements

As part of our collaboration agreements with our partners related to the license, development, manufacture and supply of drugs based on our proprietary technologies, we generally agree to defend, indemnify and hold harmless our partners from and against third party liabilities arising out of the agreement, including product liability (with respect to our activities) and infringement of intellectual property to the extent the intellectual property is developed by us and licensed to our partners. The term of these indemnification obligations is generally perpetual any time after execution of the agreement. There is generally no limitation on the potential amount of future payments we could be required to make under these indemnification obligations.

As part of the sale of our royalty interest in the CIMZIA^® and MIRCERA^® products, we and RPI made representations and warranties and entered into certain covenants and ancillary agreements which are supported by indemnity obligations. Additionally, as part of our pulmonary asset sale to Novartis, we and Novartis made representations and warranties and entered into certain covenants and ancillary agreements which are supported by an indemnity obligation. In the event it is determined that we breached certain of the representations and warranties or covenants and agreements made by us in any such agreements, we could incur substantial indemnification liabilities depending on the timing, nature, and amount of any such claims.

To date we have not incurred costs to defend lawsuits or settle claims related to these indemnification obligations. If any of our indemnification obligations is triggered, we may incur substantial liabilities. Because the aggregate amount of any potential indemnification obligation is not a stated amount, the overall maximum amount of any such obligations cannot be reasonably estimated. No liabilities have been recorded for these obligations on our Consolidated Balance Sheets as of December 31, 2012 or 2011.

Indemnification of Underwriters and Initial Purchasers of our Securities

In connection with our sale of equity and senior secured debt securities, we have agreed to defend, indemnify and hold harmless our underwriters or initial purchasers, as applicable, as well as certain related parties from and against certain liabilities, including liabilities under the Securities Act of 1933, as amended. The term of these indemnification obligations is generally perpetual. There is no limitation on the potential amount of future payments we could be required to make under these indemnification obligations. We have never incurred costs to defend lawsuits or settle claims related to these indemnification obligations. If any of our indemnification obligations are triggered, however, we may incur substantial liabilities. Because the obligated amount of this agreement is not explicitly stated, the overall maximum amount of the obligations cannot be reasonably estimated. Historically, we have not been obligated to make significant payments for these obligations, and no liabilities have been recorded for these obligations in our Consolidated Balance Sheets as of December 31, 2012 or 2011.

Director and Officer Indemnifications

As permitted under Delaware law, and as set forth in our Certificate of Incorporation and our Bylaws, we indemnify our directors, executive officers, other officers, employees, and other agents for certain events or occurrences that may arise while in such capacity. The maximum potential amount of future payments we could be required to make under this indemnification is unlimited; however, we have insurance policies that may limit our exposure and may enable us to recover a portion of any future amounts paid. Assuming the applicability of coverage, the willingness of the insurer to assume coverage, and subject to certain retention, loss limits and other policy provisions, we believe any obligations under this indemnification would not be material, other than an initial $500,000 per incident for securities related claims and $150,000 per incident for non-securities related claims retention deductible per our insurance policy. However, no assurances can be given that the covering insurers will not attempt to dispute the validity, applicability, or amount of coverage without expensive litigation against these insurers, in which case we may incur substantial liabilities as a result of these indemnification obligations. Because the obligated amount of this agreement is not explicitly stated, the overall maximum amount of the indemnification obligations cannot be reasonably estimated. Historically, we have not been obligated to make significant payments for these obligations, and no liabilities have been recorded for these obligations in our Consolidated Balance Sheets as of December 31, 2012 or 2011.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Name FASB Interpretation (FIN)

-Number 14

-Paragraph 3

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Reference 2: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-Publisher FASB

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-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 9, 10, 11, 12

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stockholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity

Note 9 — Stockholders’ Equity

Preferred Stock

We have authorized 10,000,000 shares of Preferred Stock with each share having a par value of $0.0001. In 2011, 3,100,000 shares were previously designated Series A Junior Participating Preferred Stock (Series A Preferred Stock) in connection with our Share Purchase Rights Plan (Rights Plan) that expired on June 1, 2011. On March 30, 2012, we filed a certificate of elimination of the Series A Preferred Stock. As of December 31, 2012, no shares are designated, issued or outstanding.

Common Stock

On January 24, 2011, we completed the issuance and sale of 19,000,000 shares of our common stock for gross proceeds to the Company of approximately $220.4 million. Additionally, we incurred approximately $0.6 million in legal and accounting fees, filing fees, and other offering expenses.

Equity Compensation Plans

At December 31, 2012, we had 29,915,641 reserved shares of common stock, all of which are reserved for issuance in our equity compensation plans as summarized in the following table (share number in thousands):


Plan Category	Number of Securities to be Issued Upon Exercise of Outstanding Options & Vesting of RSUs (a)		Weighted-Average Exercise Price of Outstanding Options (b)		Number of Securities Remaining Available for Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column(a)) (c)
Equity compensation plans approved by security holders(1)		12,292	$	8.66		10,800
Equity compensation plans not approved by security holders		6,824	$	9.71		—

Total		19,116	$	9.03		10,800

(1)	Includes shares of common stock available for future issuance under our ESPP as of December 31, 2012.

2012 Performance Incentive Plan

Our 2012 Performance Incentive Plan (2012 Plan) was adopted by the Board of Directors on April 4, 2012 and was approved by our stockholders on June 28, 2012. On the date of approval, any shares of the company’s common stock that were available for issuance under all other previously existing stock plans (the 2008 Equity Incentive Plan, the 2000 Equity Incentive Plan, and the 2000 Non-Officer Equity Incentive Plan) became available for issuance under the 2012 Plan. In addition, 5,300,000 new shares were made available for award grants under the 2012 Plan. No new awards were granted under any of the previous stock plans after June 28, 2012. Any shares of common stock subject to outstanding awards under the previous stock plans that expire, are cancelled, or otherwise terminate at any time after December 31, 2011 will also be available for award grant purposes under the 2012 Plan.

The purpose of the 2012 Plan and our other incentive plans is to attract, motivate, retain, and reward directors, officers, employees, and other eligible persons through the grant of awards and incentives for high levels of individual performance and increasing the value of our business, as well as to further align the interests of award recipients and our stockholders. The 2012 Plan authorizes stock options, stock appreciation rights, restricted stock, performance stock, stock units, stock bonuses, dividend equivalents, other similar rights to purchase or acquire shares, and other forms of awards granted or denominated in the company’s common stock or units of the company’s common stock, as well as cash bonus awards. Directors, officers, or employees, and certain consultants and advisors may receive awards under the 2012 Plan. In 2012, the requisite service period for stock options granted to our employees under the 2012 Plan as well as all other previously existing stock plans was generally four years; the requisite service period for stock options granted to our directors was generally one year.

The maximum number of shares of our common stock that may be issued or transferred pursuant to awards under the 2012 Plan is 10,347,140 shares, plus any shares subject to outstanding awards under the previous stock plans that expire, are cancelled, or otherwise terminate for any reason. Generally, shares that are subject to or underlie awards which expire or for any reason are cancelled or terminated, are forfeited, fail to vest, or for any other reason (except for shares exchanged by a participant or withheld to pay the exercise price of an award granted and related tax withholding obligations) are not paid or delivered under the 2012 Plan will again be available for subsequent awards under the 2012 Plan. Shares issued in respect of any award, other than a stock option or stock appreciation right, granted under the 2012 Plan will be counted against the plan’s share limit as 1.5 shares for every one share actually issued in connection with the award.

The 2012 Plan will terminate on April 3, 2022, unless earlier terminated by the Board of Directors. The maximum term of a stock option or stock appreciation right under the 2012 Plan is eight years from the date of grant. The per share exercise price of an option generally may not be less than the fair market value of a share of the company’s common stock on the Nasdaq Global Select Market on the date of grant.

2008 Equity Incentive Plan

Our 2008 Equity Incentive Plan (2008 Plan) was adopted by the Board of Directors on March 20, 2008 and was approved by our stockholders on June 6, 2008. However, with the approval of the 2012 Plan, no new awards will be granted under the 2008 Plan. Pursuant to the 2008 Plan, we granted or issued incentive stock options to employees and officers and non-qualified stock options, rights to acquire restricted stock, restricted stock units, and stock bonuses to consultants, employees, officers and non-employee directors.

The 2008 Plan will terminate on March 20, 2018, unless earlier terminated by the Board of Directors. The maximum term of a stock option under the 2008 Equity Incentive Plan is eight years. The exercise price of stock options granted under the 2008 Plan must be at least equal to 100% (or 110% with respect to holders of more than 10% of the voting power of our outstanding capital stock) of the fair market value of the stock subject to the option as determined by the closing price of our common stock on the Nasdaq Global Select Market on the date of grant.

2000 Equity Incentive Plan

On April 19, 2000, our Board of Directors adopted the 2000 Equity Incentive Plan (2000 Plan) by amending and restating our 1994 Equity Incentive Plan. On February 9, 2010, the 2000 Plan expired. As a result, no new options may be granted, but existing options granted remain outstanding. Pursuant to the 2000 Plan, we granted or issued incentive stock options to employees and officers and non-qualified stock options, rights to acquire restricted stock, restricted stock units, and stock bonuses to consultants, employees, officers and non-employee directors.

The maximum term of a stock option under the 2000 Plan is eight years. The exercise price of incentive stock options granted under the 2000 Equity Incentive Plan must be at least equal to 100% (or 110% with respect to holders of more than 10% of the voting power of our outstanding capital stock) of the fair market value of the stock subject to the option as determined by the closing price of our common stock on the Nasdaq Global Market on the date of grant.

2000 Non-Officer Equity Incentive Plan

The 1998 Non-Officer Equity Incentive Plan was adopted by our Board of Directors on August 18, 1998, and was amended and restated in its entirety and renamed the 2000 Non-officer Equity Incentive Plan on June 6, 2000 (2000 Non-Officer Plan). However, with the approval of the 2012 Plan, no new awards will be granted under the 2000 Non-Officer Plan. Pursuant to the 2000 Non-Officer Plan, we granted or issued non-qualified stock options, rights to acquire restricted stock and stock bonuses to employees and consultants who are neither officers nor directors of Nektar.

The maximum term of a stock option under the 2000 Non-Officer Plan is eight years. The exercise price of stock options granted under the 2000 Non-Officer Plan was determined by our Board of Directors by reference to the closing price of our common stock on the Nasdaq Global Market on the date of grant.

Restricted Stock Units

RSU awards have been granted under the 2008 Plan, the 2000 Plan and the 2000 Non-Officer Plan and are settled by delivery of shares of our common stock on or shortly after the date the awards vest. During the year ended December 31, 2010, we granted RSU awards to certain officers, non-employee directors, employees and consultants. We did not grant any RSU awards during the years ended December 31, 2012 or 2011. RSU awards are similar to restricted stock in that they are issued for no consideration; however, the holder generally is not entitled to the underlying shares of common stock until the RSU award vests. Also, because the RSU awards are granted for $0.01 per share, the grant-date fair value of the award is equal to the intrinsic value of our common stock on the date of grant.

Beginning with shares granted during 2005, each RSU award depletes the pool of options available for grant under our equity incentive plans by a ratio of 1:1.5.

Employee Stock Purchase Plan

In February 1994, our Board of Directors adopted the Employee Stock Purchase Plan (ESPP) pursuant to section 423(b) of the Internal Revenue Code of 1986. Under the ESPP, 1,500,000 shares of our common stock have been authorized for issuance. The terms of the ESPP provide eligible employees with the opportunity to acquire an ownership interest in Nektar through participation in a program of periodic payroll deductions for the purchase of our common stock. Employees may elect to enroll or re-enroll in the ESPP on a semi-annual basis. Stock is purchased at 85% of the lower of the closing price on the first day of the enrollment period or the last day of the enrollment period.

401(k) Retirement Plan

We sponsor a 401(k) retirement plan whereby eligible employees may elect to contribute up to the lesser of 60% of their annual compensation or the statutorily prescribed annual limit allowable under Internal Revenue Service regulations. The 401(k) plan permits us to make matching contributions on behalf of all participants, up to a maximum of $3,000 per participant. For the years ended December 31, 2012, 2011, and 2010, we recognized $0.9 million, $0.9 million, and $1.0 million, respectively, of compensation expense in connection with our 401(k) retirement plan.

Change in Control Severance Plan

On December 6, 2006, our Board of Directors approved a Change of Control Severance Benefit Plan (CIC Plan). This CIC Plan has subsequently been amended a number of times by our Board of Directors with the most recent amendment occurring on April 5, 2011. The CIC Plan is designed to make certain benefits available to our eligible employees in the event of a change of control of Nektar and, following such change of control, an employee’s employment with us or a successor company is terminated in certain specified circumstances. We adopted the CIC Plan to support the continuity of the business in the context of a change of control transaction. The CIC Plan was not adopted in contemplation of any specific change of control transaction.

Under the CIC Plan, in the event of a change of control of Nektar and a subsequent termination of employment initiated by us or a successor company other than for Cause (as defined in the CIC Plan) or initiated by the employee for a Good Reason Resignation (as defined in the CIC Plan) in each case within twelve months following a change of control transaction, (i) the Chief Executive Officer would be entitled to receive cash severance pay equal to 24 months base salary plus annual target incentive pay, the extension of employee benefits over this severance period and the full acceleration of unvested outstanding equity awards, and (ii) our Senior Vice Presidents and Vice Presidents (including Principal Fellows) would each be entitled to receive cash severance pay equal to twelve months base salary plus annual target incentive pay, the extension of employee benefits over this severance period and the full acceleration of unvested outstanding equity awards. In the event of a change of control of Nektar and a subsequent termination of employment initiated by the Company or a successor company other than for Cause within twelve months following a change of control transaction, all other employees would each be entitled to receive cash severance pay equal to 6 months base salary plus a pro-rata portion of annual target incentive pay, the extension of employee benefits over this severance period and the full acceleration of each such employee’s unvested outstanding equity awards. Under the CIC Plan, as amended, non-employee directors would also be entitled to full acceleration of vesting of all outstanding stock awards in the event of a change of control transaction.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

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+ Details

License and Collaboration Agreements

12 Months Ended

Dec. 31, 2012

License and Collaboration Agreements

Note 10 — License and Collaboration Agreements

We have entered into various license agreements and collaborative research, development and commercialization agreements with pharmaceutical and biotechnology companies. Under these arrangements, we are entitled to receive license fees, upfront payments, milestone payments, royalties, sales milestones, payment for the manufacture and supply of our proprietary PEGylation materials and/or reimbursement for research and development activities. All of our collaboration agreements are generally cancelable by our partners without significant financial penalty. Our costs of performing these services are generally included in research and development expense, however, costs for product sales to our collaboration partners are included in cost of goods sold.

In accordance with these agreements, we recognized license, collaboration and other revenue as follows (in thousands):


		Year Ended December 31,
Partner	Agreement	2012		2011		2010
Roche	PEGASYS^® and MIRCERA^®	$	7,146	$	5,131	$	5,131
Baxter Healthcare	Hemophilia		6,238		5,646		1,701
Amgen, Inc.	Neulasta^®		5,000		5,000		833
Bayer Healthcare LLC	BAY41-6551 (Amikacin Inhale)		2,971		2,992		3,300
Affymax, Inc.	OMONTYS^®		2,829		3,838		1,867
AstraZeneca AB	Naloxegol (NKTR-118) and naloxegol fixed-dose combination program (NKTR-119)		59		2,496		107,854
Other			5,884		11,186		3,686

License, collaboration and other revenue		$	30,127	$	36,289	$	124,372

As of December 31, 2012, our collaboration agreements with partners included potential future payments for development milestones totaling approximately $161.1 million, including amounts from our agreements with Baxter and Bayer described below. In addition, we are entitled to receive up to $235.0 million and $75.0 million of contingent payments related to NKTR-118 and NKTR-119, respectively, based on development and regulatory events to be pursued and completed solely by AstraZeneca.

Roche: PEGASYS^® and MIRCERA^®

In February 1997, we entered into a license, manufacturing and supply agreement with Roche, under which we granted Roche a worldwide, exclusive license to certain intellectual property related to our proprietary PEGylation materials used in the manufacture and commercialization of PEGASYS^®. As a result of Roche exercising a license extension option in December 2009, Roche has the right to manufacture all of its requirements for our proprietary PEGylation materials for PEGASYS^® and we perform additional manufacturing, if any, only on an as-requested basis. In connection with Roche’s exercise of the license extension option in December 2009, we received a payment of $31.0 million. As of December 31, 2012, we have deferred revenue of approximately $15.4 million related to this agreement, which we expect to recognize through December 2015, the period through which we are required to provide back-up manufacturing and supply services related to PEGASYS^®.

In February 2012, we entered into a toll-manufacturing agreement with Roche under which we will manufacture the proprietary PEGylation material used by Roche to produce MIRCERA^®. Roche entered into the toll-manufacturing agreement with the objective of establishing us as a secondary back-up source on a non-exclusive basis. Under the terms of the toll-manufacturing agreement, Roche paid us an upfront payment of $5.0 million and will pay a total of up to $22.0 million in performance-based milestone payments upon our achievement of certain manufacturing readiness, validation and production milestones, including the delivery of specified quantities of PEGylation materials, all of which were completed as of January 2013. Roche will also pay us additional consideration for any future orders of the PEGylation materials for MIRCERA^® beyond the initial quantities manufactured through January 2013. Roche may terminate the toll-manufacturing agreement due to an uncured material default by us. As of December 31, 2012, we have received $16.0 million in upfront and milestone payments under this agreement. We achieved the remaining $11.0 million milestone in January 2013.

We analyzed the milestone payments under the agreement and determined that they did not meet the criteria for revenue recognition under the milestone method as a result of our continuing manufacturing obligations. We have identified our back-up manufacturing obligation through December 2016 and the delivery of PEGylation materials specified in the agreement in 2012 and early 2013 as the units of accounting in the arrangement. We made our best estimate of the selling prices for these deliverables and have allocated the expected $27.0 million consideration to these items based on the relative selling price method. As of December 31, 2012, we have recognized revenue of $3.0 million related to this agreement. As of December 31, 2012, we have deferred revenue of approximately $13.0 million, which we expect to recognize through December 2016, the estimated end of our obligations under this agreement.

Baxter Healthcare: Hemophilia

In September 2005, we entered into an exclusive research, development, license and manufacturing and supply agreement with Baxter Healthcare SA and Baxter Healthcare Corporation (together referred to as Baxter) to develop products designed to improve therapies for Hemophilia A patients using our PEGylation technology. In December 2007, we expanded our agreement with Baxter to include the license of our PEGylation technology with the potential to improve any future products Baxter may develop for Hemophilia B patients. Under the terms of the agreement, we are entitled to research and development funding and are responsible for supplying Baxter with its requirements for our proprietary materials. Baxter is responsible for all clinical development, regulatory, and commercialization expenses. The agreement is terminable by the parties under customary conditions.

We are entitled to up to $28.0 million of development milestones related to Hemophilia A upon achievement of certain development objectives, as well as sales milestones upon achievement of annual sales targets and royalties based on annual worldwide net sales of products resulting from this agreement. This Hemophilia A program includes BAX-855, which is currently in a Phase 3 clinical study initiated in February 2013. In prior years, we received an upfront payment of $4.0 million related to the Hemophilia A programs. As of December 31, 2012, we have deferred revenue of $1.3 million, which we expect to recognize through September 2016, the estimated end of our obligations under this agreement.

In prior years, we received an upfront payment of $5.0 million relating to the Hemophilia B program. In May 2012, Baxter notified us that they intended to cease all future research activities under our agreement related to Hemophilia B. As a result, in the year ended December 31, 2012, we recognized the remaining $3.9 million deferred revenue balance related to the Hemophilia B program since we have no ongoing or additional performance obligations.

Amgen, Inc.: Neulasta^®

In October 2010, we amended and restated an existing supply and license agreement by entering into a supply, dedicated suite and manufacturing guarantee agreement (the amended and restated agreement) and a license agreement with Amgen Inc. and Amgen Manufacturing, Limited (together referred to as Amgen). Under the terms of the amended and restated agreement, we guarantee the manufacture and supply of our proprietary PEGylation materials (Polymer Materials) to Amgen in an existing manufacturing suite to be used exclusively for the manufacture of Polymer Materials for Amgen (the Manufacturing Suite) in our manufacturing facility in Huntsville, Alabama (the Facility). This supply arrangement is on a non-exclusive basis (other than the use of the Manufacturing Suite and certain equipment) whereby Nektar is free to manufacture and supply the Polymer Materials to any other third party and Amgen is free to procure the Polymer Materials from any other third party. Under the terms of the amended and restated agreement, we received a $50.0 million payment in the fourth quarter of 2010 in return for our guaranteeing the supply of certain quantities of Polymer Materials to Amgen including without limitation the Additional Rights described below and manufacturing fees that are calculated based on fixed and variable components applicable to the Polymer Materials ordered by Amgen and delivered by us. Amgen has no minimum purchase commitments. If quantities of the Polymer Materials ordered by Amgen exceed specified quantities, significant additional payments become payable to us in return for our guaranteeing the supply of additional quantities of the Polymer Materials.

The term of the amended and restated agreement ends on October 29, 2020. In the event we become subject to a bankruptcy or insolvency proceeding, we cease to own or control the Facility, we fail to manufacture and supply or certain other events, Amgen or its designated third party will have the right to elect, among certain other options, to take title to the dedicated equipment and access the Facility to operate the Manufacturing Suite solely for the purpose of manufacturing the Polymer Materials (the Additional Rights). Amgen may terminate the amended and restated agreement for convenience or due to an uncured material default by us. Our research facility in Huntsville, Alabama that we propose to sell is a different building and location from that of the Facility as described here.

As of December 31, 2012, we have deferred revenue of approximately $39.2 million related to this agreement, which we expect to recognize through October 2020, the estimated end of our obligations under this agreement.

Bayer Healthcare LLC: BAY41-6551 (Amikacin Inhale)

In August 2007, we entered into a co-development, license and co-promotion agreement with Bayer Healthcare LLC (Bayer) to develop a specially-formulated inhaled Amikacin. We are responsible for development and manufacturing and supply of the nebulizer device included in the Amikacin product. Bayer is responsible for most future clinical development and commercialization costs, all activities to support worldwide regulatory filings, approvals and related activities, further development of Amikacin Inhale and final product packaging and distribution. We received an upfront payment of $40.0 million in 2007 and performance milestone payments of $20.0 million, of which $10.0 million will be used to reimburse Bayer for Phase 3 clinical trial costs. This $10.0 million obligation is recorded in accrued clinical trial expense in our Consolidated Balance Sheets. We are entitled to up to $60.0 million of development milestones upon achievement of certain development objectives, as well as sales milestones upon achievement of annual sales targets and royalties based on annual worldwide net sales of Amikacin Inhale. As of December 31, 2012, we have deferred revenue of approximately $24.5 million related to this agreement, which we expect to recognize through July 2021, the estimated end of our obligations under this agreement.

Affymax, Inc.: OMONTYS^®

In April 2004, we entered into a license, manufacturing and supply agreement with Affymax, Inc. (Affymax) under which we provided Affymax with a worldwide, non-exclusive license under certain of our proprietary PEGylation technology to develop, manufacture and commercialize OMONTYS^® (peginesatide). On March 27, 2012, the U.S. Food and Drug Administration (FDA) approved OMONTYS^® to treat anemia in patients with chronic kidney disease on dialysis and OMONTYS^® sales were initiated in the second quarter of 2012. On February 23, 2013, Affymax and Takeda announced a voluntary recall of all lots of OMONTYS^® drug product to the user level as a result of new post-marketing reports regarding serious hypersensitivity reactions, including anaphylaxis, which can be life-threatening or fatal. Under our agreement, Affymax is obligated to purchase its entire requirements of the proprietary PEGylation materials required to manufacture OMONTYS^® exclusively from Nektar. Affymax is responsible for all clinical development, regulatory and commercialization expenses. We are entitled to royalties based on annual worldwide net sales of OMONTYS^®. For a certain period of time, we will share a portion of our future royalty payments with Enzon Pharmaceuticals, Inc.

In addition, as a result of the FDA’s approval of OMONTYS^®, we earned a $2.0 million milestone payment. Under our milestone method revenue recognition policy, this substantive milestone was recognized in its entirety upon achievement in March 2012. We have previously received other milestone and related payments under our agreement with Affymax and, as of December 31, 2012, we have deferred revenue of approximately $7.1 million, which we expect to recognize through March 2022, the estimated period through which we are required to provide manufacturing and supply services.

AstraZeneca AB: naloxegol (NKTR-118) and naloxegol fixed-dose combination program (NKTR-119)

In September 2009, we entered into a license agreement with AstraZeneca AB (AstraZeneca), under which we granted AstraZeneca a worldwide, exclusive, perpetual, royalty-bearing, and sublicensable license under our patents and other intellectual property to develop, market, and sell naloxegol (NKTR-118) and naloxegol fixed-dose combination program (NKTR-119). AstraZeneca is responsible for all costs associated with research, development and commercialization and is responsible for all drug development and commercialization decisions for naloxegol and naloxegol fixed-dose combination program. AstraZeneca paid us an upfront payment of $125.0 million, which we received in the fourth quarter of 2009 and which was fully recognized as of December 31, 2010. We are entitled to receive up to $235.0 million and $75.0 million of contingent payments related to naloxegol and naloxegol fixed-dose combination program, respectively, based on development events to be pursued and completed solely by AstraZeneca. In particular, if AstraZeneca files for regulatory approval of naloxegol with and such filings are accepted by the FDA and the European Medicines Agency (EMA), Nektar will be entitled to $95.0 million of these payments. We will be entitled to the remaining $140.0 million of these payments if naloxegol is approved by the FDA and EMA and commercial launch is achieved in the U.S. and one major country in the European Union. In addition, we are also entitled to sales milestone payments and royalties based on annual worldwide net sales of naloxegol and naloxegol fixed-dose combination products.

Other

During the year ended December 31, 2011, in addition to the revenues recognized from the collaboration agreements discussed above, we also recorded license, collaboration and other revenue of approximately $11.2 million in connection with a number of our license and collaboration agreements. This revenue included a $5.0 million up-front payment from a license agreement entered into in 2011, as well as revenues from milestone payments, amortization of upfront payments, and reimbursed research and development activities related to agreements entered into in previous years.

In addition, we have a number of collaboration agreements with other partners under which we are entitled to up to a total of $73.1 million of development milestones upon achievement of certain development objectives, as well as sales milestones upon achievement of annual sales targets and royalties based on net sales of commercialized products, if any. However, given the current phase of development of the potential products under these collaboration agreements, we cannot estimate the probability or timing of achieving these milestones.

Impairment of Long Lived Assets

12 Months Ended

Dec. 31, 2012

Impairment of Long Lived Assets

Note 11 — Impairment of Long Lived Assets

During the years ended December 31, 2012 and 2010, we recorded a charge for the impairment of long-lived assets of $1.7 million and $12.6 million, respectively. We did not record any such charge in 2011.

In an effort to reduce ongoing operating costs and improve our organizational structure, efficiency and productivity, in March 2012, we announced a plan to consolidate our U.S.-based research activities at our existing San Francisco location and to cease the use of and sell one of our buildings located in Huntsville, Alabama that was dedicated to research activities. As a result, we performed a preliminary analysis of the fair value of the land, building and related improvements based primarily on available market data. Based upon this analysis, we concluded that the combined carrying value of the land and building exceeded fair value and we recorded an impairment loss of $1.7 million in March 2012. No further impairment losses were recorded in 2012, however, until we dispose of these assets, we will update our analysis of their fair value on a regular basis and such updates could result in further impairment charges in future periods. As of December 31, 2012, the remaining net book value of these assets is $2.8 million.

On November 29, 2010, we ceased use of the San Carlos facility as a result of our relocation to the Mission Bay Facility. The remaining assets at the San Carlos location consist of the building capital lease and related leasehold improvements. We have subleased portions of the San Carlos building and are currently seeking one or more subtenants for the remaining space through the lease termination date. As a result of our relocation, we performed an impairment analysis on these assets. We concluded that the carrying values of the building and leasehold improvements exceeded their fair values based on a probability-weighted discounted cash flow model of the future estimated net sublease income and recorded an impairment loss of $12.6 million. As of December 31, 2012, the remaining net book value of these assets is $1.4 million.

Stock-Based Compensation

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation

Note 12 — Stock-Based Compensation

We issue stock-based awards from our equity incentive plans, which are more fully described in Note 9. Stock-based compensation expense was recognized as follows (in thousands):


	Year Ended December 31,
	2012		2011		2010
Cost of goods sold	$	1,496	$	1,266	$	915
Research and development		7,082		7,944		7,218
General and administrative		7,621		9,675		9,266

Total stock-based compensation	$	16,199	$	18,885	$	17,399

As of December 31, 2012, total unrecognized compensation costs of $25.0 million related to unvested stock-based compensation arrangements are expected to be recognized as expense over a weighted-average period of 1.6 years.

Black-Scholes Assumptions

The following tables list the Black-Scholes option-pricing model assumptions used to calculate the fair value of employee and director stock options and ESPP purchases.


	Year Ended December 31, 2012						Year Ended December 31, 2011						Year Ended December 31, 2010
	Stock Options			ESPP			Stock Options			ESPP			Stock Options			ESPP
Average risk-free interest rate		0.9	%		0.1	%		1.6	%		0.1	%		1.8	%		0.2	%
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Volatility factor		62.2	%		45.6	%		63.8	%		53.6	%		62.7	%		47.8	%
Weighted average expected life		5.0 years			0.5 years			4.9 years			0.5 years			4.9 years			0.5 years

The average risk-free interest rate is based on the U.S. treasury yield curve in effect at the time of grant for periods commensurate with the expected life of the stock-based award. We have never paid dividends, nor do we expect to pay dividends in the foreseeable future; therefore, we used a dividend yield of 0.0%. Our estimate of expected volatility is based on the daily historical trading data of our common stock over a historical period commensurate with the expected life of the stock-based award.

For the years ended December 31, 2012, 2011, and 2010, we estimated the weighted-average expected life based on the contractual and vesting terms of the stock options, as well as historic cancellation and exercise data.

Summary of Stock Option Activity

The table below presents a summary of stock option activity under our equity incentive plans (in thousands, except for price per share and contractual life information):


	Number of Shares			Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (in Years)		Aggregate Intrinsic Value(1)
Outstanding at December 31, 2011		17,046		$	9.29
Options granted		3,435			7.46
Options exercised		(631	)		5.48
Options forfeited and canceled		(852	)		10.34

Outstanding at December 31, 2012		18,998		$	9.03		4.73	$	10,972

Vested and expected to vest at December 31, 2012		18,688		$	9.04		4.70	$	10,916
Exercisable at December 31, 2012		13,449		$	9.05		4.04	$	9,874

(1)	Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of our common stock on December 31, 2012.

The weighted-average grant-date fair value per share of options granted during the years ended December 31, 2012, 2011, and 2010 was $3.92, $5.22, and $6.30, respectively. The total intrinsic value of options exercised during the years ended December 31, 2012, 2011, and 2010 was $1.9 million, $3.7 million, and $6.8 million, respectively. The estimated fair value of options vested during the years ended December 31, 2012, 2011, and 2010 was $15.7 million, $18.1 million, and $14.7 million, respectively.

RSU Awards

We issued RSU awards to certain officers and employees. The RSU awards granted in 2006 vest upon achievement of pre-determined performance milestones, while the RSU awards granted in 2007 through 2010 have a time-based vesting schedule. There were no RSU awards granted in 2011 and 2012. There were 120,580 and 136,080 RSU awards outstanding at December 31, 2012 and 2011, respectively. We expense the grant date fair value of the RSU awards ratably over the expected service or performance period.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 718

-SubTopic 10

-Section 50

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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 718

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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

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+ Details

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes

Note 13 — Income Taxes

Loss before provision for income taxes includes the following components (in thousands):


	Year Ended December 31,
	2012			2011			2010
Domestic	$	(174,258	)	$	(135,880	)	$	(39,321	)
Foreign		2,809			2,920			2,264

Loss before provision for income taxes	$	(171,449	)	$	(132,960	)	$	(37,057	)

Provision for Income Taxes

The provision (benefit) for income taxes consists of the following (in thousands):


	Year Ended December 31,
	2012			2011		2010
Current:
Federal	$	(137	)	$	—	$	1
State		1			1		2
Foreign		1,029			921		698

Total Current		893			922		701

Deferred:
Federal		(422	)		—		—
State		(49	)		—		—
Foreign		(16	)		96		180

Total Deferred		(487	)		96		180

Provision for income taxes	$	406		$	1,018	$	881

Income tax provision related to continuing operations differs from the amount computed by applying the statutory income tax rate of 35% to pretax loss as follows (in thousands):


	Year Ended December 31,
	2012			2011			2010
U.S. federal provision (benefit)
At statutory rate	$	(60,007	)	$	(46,536	)	$	(12,970	)
State taxes		(48	)		1			2
Change in valuation allowance		47,349			48,959			15,123
Foreign tax inclusion		6,510			—			—
Non-cash interest expense on liability related to sale of future royalties		6,320			—			—
Foreign tax differential		(227	)		(129	)		86
Unrecognized tax credits		(591	)		(893	)		(1,833	)
Other		1,100			(384	)		473

Provision for income taxes	$	406		$	1,018		$	881

Deferred Tax Assets and Liabilities

Deferred income taxes reflect the net tax effects of loss and credit carryforwards and temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets for federal and state income taxes are as follows (in thousands):


	December 31,
	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	351,354		$	342,128
Research and other credits		52,769			51,125
Sale of future royalties		39,750			—
Deferred revenue		39,521			48,732
Stock-based compensation		23,746			19,268
Capitalized research expenses		7,192			9,514
Property and equipment		8,482			8,081
Reserves and accruals		8,776			8,083
Other		2,773			3,895

Deferred tax assets before valuation allowance		534,363			490,826
Valuation allowance for deferred tax assets		(534,268	)		(490,689	)

Total deferred tax assets		95			137

Deferred tax liabilities:
Property and equipment		—			(75	)

Total deferred tax liabilities		—			(75	)

Net deferred tax assets	$	95		$	62

Realization of our deferred tax assets is dependent upon future earnings, if any, the timing and amount of which are uncertain. Because of our lack of U.S. earnings history, the net U.S. deferred tax assets have been fully offset by a valuation allowance. The valuation allowance increased by $43.6 million and $52.9 million during the years ended December 31, 2012 and 2011, respectively. The valuation allowance includes approximately $35.6 million of income tax benefit at both December 31, 2012 and December 31, 2011 related to stock-based compensation and exercises prior to the implementation of the accounting guidance for stock-based compensation that will be credited to additional paid in capital when realized.

Undistributed earnings of our foreign subsidiary in India are considered to be permanently reinvested and accordingly, no deferred U.S. income taxes have been provided thereon. Upon distribution of those earnings in the form of dividends or otherwise, we would be subject to U.S. income tax. As of December 31, 2012, U.S. income taxes have not been provided on a cumulative total of $3.1 million of such earnings. At the present time it is not practicable to estimate the amount of U.S. income taxes that might be payable if these earnings were repatriated.

Net Operating Loss and Tax Credit Carryforwards

As of December 31, 2012, we had a net operating loss carryforward for federal income tax purposes of approximately $909.4 million, portions of which will begin to expire in 2018. We had a total state net operating loss carryforward of approximately $602.5 million, which will begin to expire in 2013. Utilization of some of the federal and state net operating loss and credit carryforwards are subject to annual limitations due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitations may result in the expiration of net operating losses and credits before utilization.

We have federal research credits of approximately $23.7 million, which will begin to expire in 2019 and state research credits of approximately $14.7 million which have no expiration date. We have federal orphan drug credits of $14.0 million which will begin to expire in 2026. These tax credits are subject to the same limitations discussed above.

The American Taxpayer Relief Act of 2012 was signed into law on January 2, 2013. The act retroactively reinstated various expired tax extenders for the 2012 year. None of the extenders included in the Act are material to our financial statements and the impact of the tax law change will be accounted for in 2013 as this is the period of enactment.

A change in California law occurred in November 2012 with the enactment of RTC Sec. 25128.7 related to apportionment of income. The new law is effective beginning in 2013. All California deferred tax assets have been adjusted using the rates that will be in effect when the deferred tax assets are expected to be utilized.

Unrecognized tax benefits

We have incurred net operating losses since inception. Our policy is to include interest and penalties related to unrecognized tax benefits, if any, within the provision for income taxes in the consolidated statements of operations. If we are eventually able to recognize our uncertain positions, our effective tax rate would be reduced. We currently have a full valuation allowance against our net deferred tax asset which would impact the timing of the effective tax rate benefit should any of these uncertain tax positions be favorably settled in the future. Any adjustments to our uncertain tax positions would result in an adjustment of our net operating loss or tax credit carry forwards rather than resulting in a cash outlay.

We file income tax returns in the U.S., California, Alabama, India and the U.K. The 2009 and 2010 tax years were previously under audit by the IRS. These audits were completed and we received no change letters. The 2005 through 2010 tax years were previously under audit in Alabama. These audits were completed with no changes to the tax liability. Because of net operating losses and research credit carryovers, substantially all of our domestic tax years remain open and subject to examination. We are currently under examination in India for the fiscal years ending 2009 through 2011.

We have the following activity relating to unrecognized tax benefits (in thousands):


	December 31,
	2012			2011		2010
Beginning balance	$	13,576		$	13,058	$	13,084
Tax positions related to current year
Additions:
Federal		289			297		259
State		302			221		208
Reductions		—			—		—
Tax positions related to prior year
Additions:
Federal		37			—		—
State		—			—		—
Reductions		—			—		(493	)
Settlements		—			—		—
Lapses in statute of limitations		(137	)		—		—

Ending balance	$	14,067		$	13,576	$	13,058

Although it is reasonably possible that certain unrecognized tax benefits may increase or decrease within the next twelve months due to tax examination changes, settlement activities, expirations of statute of limitations, or the impact on recognition and measurement considerations related to the results of published tax cases or other similar activities, we do not anticipate any significant changes to unrecognized tax benefits over the next twelve months. During the years ended December 31, 2012, 2011 and 2010, no interest or penalties were required to be recognized relating to unrecognized tax benefits.

- Definition

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

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+ Details

Segment Reporting

12 Months Ended

Dec. 31, 2012

Segment Reporting

Note 14 — Segment Reporting

We operate in one business segment which focuses on applying our technology platforms to improve the performance of established and novel medicines. We operate in one segment because our business offerings have similar economics and other characteristics, including the nature of products and manufacturing processes, types of customers, distribution methods and regulatory environment. We are comprehensively managed as one business segment by our Chief Executive Officer and his management team. Within our one business segment we have two components, PEGylation technology and pulmonary technology.

Our revenue is derived primarily from clients in the pharmaceutical and biotechnology industries. UCB, Roche, and Affymax represented 30%, 23%, and 11% of our revenue, respectively, for the year ended December 31, 2012. Revenue from UCB and Roche represented 27% and 16% of our revenue, respectively, for the year ended December 31, 2011.

Revenue by geographic area is based on the locations of our partners. The following table sets forth revenue by geographic area (in thousands):


	Years Ended December 31,
	2012		2011		2010
United States	$	34,591	$	37,896	$	29,636
European countries		46,600		33,584		129,403

Total revenue	$	81,191	$	71,480	$	159,039

At December 31, 2012, $62.5 million, or approximately 87%, of the net book value of our property and equipment was located in the United States and $9.7 million, or approximately 13%, was located in India. At December 31, 2011, $67.7 million, or approximately 86%, of the net book value of our property and equipment was located in the United States and $10.9 million, or approximately 14%, was located in India.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Selected Quarterly Financial Data

12 Months Ended

Dec. 31, 2012

Selected Quarterly Financial Data

Note 15 — Selected Quarterly Financial Data (Unaudited)

The following table sets forth certain unaudited quarterly financial data. In our opinion, the unaudited information set forth below has been prepared on the same basis as the audited information and includes all adjustments necessary to present fairly the information set forth herein. We have experienced fluctuations in our quarterly results and expect these fluctuations to continue in the future. Due to these and other factors, we believe that quarter-to-quarter comparisons of our operating results will not be meaningful, and you should not rely on our results for any one quarter as an indication of our future performance. Certain items previously reported in specific financial statement captions have been reclassified to conform to the current period presentation. Such reclassifications have not impacted previously reported total revenues, operating loss or net loss. All data is in thousands except per share information.


	Fiscal Year 2012												Fiscal Year 2011
	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Product sales	$	6,945		$	9,694		$	8,355		$	10,405		$	2,474		$	8,641		$	7,677		$	6,073

Total revenue	$	17,949		$	23,684		$	18,412		$	21,146		$	11,299		$	17,331		$	27,068		$	15,782
Cost of goods sold	$	8,707		$	7,203		$	7,228		$	7,290		$	3,263		$	8,140		$	5,038		$	5,450
Research and development expenses	$	35,085		$	33,201		$	34,016		$	46,373		$	30,176		$	32,270		$	31,018		$	33,302
Operating loss	$	(37,932	)	$	(26,988	)	$	(32,900	)	$	(43,381	)	$	(33,867	)	$	(34,264	)	$	(21,338	)	$	(34,468	)
Net loss	$	(41,097	)	$	(34,285	)	$	(43,547	)	$	(52,926	)	$	(36,034	)	$	(36,381	)	$	(24,068	)	$	(37,495	)
Basic and diluted net loss per share(1)	$	(0.36	)	$	(0.30	)	$	(0.38	)	$	(0.46	)	$	(0.33	)	$	(0.32	)	$	(0.21	)	$	(0.33	)

(1)	Quarterly loss per share amounts may not total to the year-to-date loss per share due to rounding.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

12 Months Ended

Dec. 31, 2012

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

SCHEDULE II

NEKTAR THERAPEUTICS

VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

YEARS ENDED DECEMBER 31, 2012, 2011, and 2010


Description	Balance at Beginning of Year		Charged to Costs and Expenses, Net of Reversals		Utilizations			Balance at End of Year
	(In thousands)
2012:
Allowance for doubtful accounts	$	—	$	—	$	—		$	—
Allowance for inventory reserves	$	2,439	$	1,225	$	(2,716	)	$	948
2011:
Allowance for doubtful accounts	$	—	$	—	$	—		$	—
Allowance for inventory reserves	$	3,982	$	2,766	$	(4,309	)	$	2,439
2010:
Allowance for doubtful accounts	$	—	$	—	$	—		$	—
Allowance for inventory reserves	$	3,336	$	1,012	$	(366	)	$	3,982

Organization and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2012

Organization

Organization

Basis of Presentation, Principles of Consolidation and Use of Estimates

Basis of Presentation, Principles of Consolidation and Use of Estimates

Reclassifications

Reclassifications

Cash, Cash Equivalents, and Investments, and Fair Value of Financial Instruments

Cash, Cash Equivalents, and Investments, and Fair Value of Financial Instruments

Accounts Receivable and Significant Customer Concentrations

Accounts Receivable and Significant Customer Concentrations

Inventory and Significant Supplier Concentrations

Inventory and Significant Supplier Concentrations

Property and Equipment

Property and Equipment

Goodwill

Goodwill

Revenue Recognition

Revenue Recognition

Product sales

Royalty revenues

License, collaboration and other

Shipping and Handling Costs

Shipping and Handling Costs

We recognize costs related to shipping and handling of product to customers in cost of goods sold.

Stock-Based Compensation

Stock-Based Compensation

Research and Development Expense

Research and Development Expense

Net Loss Per Share

Net Loss Per Share


	Year Ended December 31,
	2012		2011		2010
Stock options		13,970		11,338		9,338
Convertible subordinated notes		—		9,989		9,989

Total		13,970		21,327		19,327

Income Taxes

Income Taxes

Comprehensive Loss

Comprehensive loss

Recent Accounting Pronouncements

Recent Accounting Pronouncements

Organization and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Weighted Average Securities Excluded from Diluted Net Loss Per Share

The weighted average of these potentially dilutive securities has been excluded from the diluted net loss per share calculation and is as follows (in thousands):


	Year Ended December 31,
	2012		2011		2010
Stock options		13,970		11,338		9,338
Convertible subordinated notes		—		9,989		9,989

Total		13,970		21,327		19,327

Cash, Cash Equivalents, and Available-For-Sale Investments (Tables)

12 Months Ended

Dec. 31, 2012

Cash, Cash Equivalents, and Available-for-Sale Investments

Cash, cash equivalents, and available-for-sale investments are as follows (in thousands):


	Estimated Fair Value at
	December 31, 2012		December 31, 2011
Cash and cash equivalents	$	25,437	$	15,312
Short-term investments		251,757		225,856
Long-term investments		—		173,768
Restricted cash		25,000		—

Total cash, cash equivalents, and available-for-sale investments	$	302,194	$	414,936

Portfolio of Cash, Cash Equivalents, and Available-for-Sale Investments

Our portfolio of cash, cash equivalents, and available-for-sale investments includes (in thousands):


	Estimated Fair Value at
	December 31, 2012		December 31, 2011
Corporate notes and bonds	$	241,158	$	344,427
U.S. corporate commercial paper		3,990		9,464
Obligations of U.S. government agencies		6,108		44,230
Obligations of U.S. states and municipalities		1,504		1,503

Available-for-sale investments		252,760		399,624
Cash and money market funds, including restricted cash		49,434		15,312

Total cash, cash equivalents, and available-for-sale investments	$	302,194	$	414,936

Portfolio of Available-for-Sale Investments Reported as Short-Term and Long-Term Investments by Contractual Maturity

The following table summarizes our portfolio of available-for-sale investments reported as short-term and long-term investments by contractual maturity (in thousands):


	Estimated Fair Value at
	December 31, 2012		December 31, 2011
Less than one year	$	251,757	$	213,386
Greater than one year but less than two years		—		186,238

Total available-for-sale investments	$	251,757	$	399,624

Financial Assets Measured at Fair Value on Recurring Basis

The following table represents the fair value hierarchy for our financial assets measured at fair value on a recurring basis as of December 31, 2012 and 2011 (in thousands):


As of December 31, 2012:	Level 1		Level 2		Level 3		Total
Money market funds	$	22,487	$	—	$	—	$	22,487
U.S. corporate commercial paper		—		3,990		—		3,990
Corporate notes and bonds		—		241,158		—		241,158
Obligations of U.S. government agencies		—		6,108		—		6,108
Obligations of U.S. states and municipalities		—		1,504		—		1,504

Cash equivalents and available-for-sale investments	$	22,487	$	252,760	$	—	$	275,247
Cash, including restricted cash								26,947

Cash, cash equivalents, and available-for-sale investments							$	302,194


As of December 31, 2011:	Level 1		Level 2		Level 3		Total
Money market funds	$	13,950	$	—	$	—	$	13,950
U.S. corporate commercial paper		—		9,464		—		9,464
Corporate notes and bonds		—		344,427		—		344,427
Obligations of U.S. government agencies		—		44,230		—		44,230
Obligations of U.S. states and municipalities		—		1,503		—		1,503

Cash equivalents and available-for-sale investments	$	13,950	$	399,624	$	—	$	413,574
Cash								1,362

Cash, cash equivalents, and available-for-sale investments							$	414,936

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 19, 20, 21

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

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-Name FASB Staff Position (FSP)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Emerging Issues Task Force (EITF)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References+ Details

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Property and Equipment

Property and equipment consist of the following (in thousands):


	December 31,
	2012			2011
Building and leasehold improvements	$	72,180		$	72,473
Laboratory equipment		27,145			26,290
Manufacturing equipment		20,877			19,550
Furniture, fixtures and other equipment		21,914			20,750

Depreciable property and equipment at cost		142,116			139,063
Less: accumulated depreciation		(72,666	)		(62,237	)

Depreciable property and equipment, net		69,450			76,826
Construction-in-progress		2,765			1,750

Property and equipment, net	$	72,215		$	78,576

- Definition

Tabular disclosure of the useful life and salvage value of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software.

+ References+ Details

Senior Secured Notes and Convertible Subordinated Notes (Tables)

12 Months Ended

Dec. 31, 2012

Outstanding Balance of Senior Secured Notes and Convertible Secured Notes

The outstanding balances of our senior secured notes and our convertible subordinated notes are as follows (in thousands):


	Semi-Annual Interest Payment Dates	December 31,
	Semi-Annual Interest Payment Dates	2012		2011
12% Senior Secured Notes due July 2017	January 15, July 15	$	125,000	$	—
3.25% Convertible Subordinated Notes due September 2012	March 28, September 28	$	—	$	214,955

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

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+ Details

Leases (Tables)

12 Months Ended

Dec. 31, 2012

Gross Carrying Value by Major Asset Class and Accumulated Depreciation

The gross carrying value by major asset class and accumulated depreciation as of December 31, 2012 and 2011 are as follows (in thousands):


	December 31,
	2012			2011
Building and leasehold improvements	$	2,117		$	2,117
Furniture, fixtures and other equipment		195			195

Total assets recorded under capital leases		2,312			2,312
Less: accumulated depreciation		(882	)		(464	)

Net assets recorded under capital leases	$	1,430		$	1,848

Future Minimum Payments for Capital Leases

Future minimum payments for our capital leases at December 31, 2012 are as follows (in thousands):


Years ending December 31,
2013	$	5,129
2014		5,191
2015		5,280
2016		4,034

Total minimum payments required	$	19,634
Less: amount representing interest		(5,057	)

Present value of future minimum lease payments	$	14,577
Less: current portion		(2,970	)

Capital lease obligation, less current portion	$	11,607

Future Minimum Lease Payments for Operating Lease

Our future minimum lease payments for our operating lease at December 31, 2012 are as follows (in thousands):


Years ending December 31,
2013	$	200
2014		1,509
2015		3,667
2016		3,777
2017		3,888
2018 and thereafter		8,479

Total future minimum lease payments	$	21,520

Liability Related to Sale of Future Royalties (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Liability Related to Potential Future Royalties

The following table shows the activity within the liability account during the year ended December 31, 2012 (in thousands):


Liability related to sale of future royalties—beginning balance	$	—
Proceeds from sale of future royalties		124,000
Non-cash interest expense recognized during 2012		18,057
CIMZIA^® and MIRCERA^® royalties paid to RPI during 2012		(10,791	)

Total liability related to sale of future royalties as of December 31, 2012		131,266
Less: current portion		(3,000	)

Liability related to sale of future royalties, less current portion	$	128,266

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2012

Summarization of Common Stock Shares for Issuance Under Existing Equity Compensation Plans


Plan Category	Number of Securities to be Issued Upon Exercise of Outstanding Options & Vesting of RSUs (a)		Weighted-Average Exercise Price of Outstanding Options (b)		Number of Securities Remaining Available for Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column(a)) (c)
Equity compensation plans approved by security holders(1)		12,292	$	8.66		10,800
Equity compensation plans not approved by security holders		6,824	$	9.71		—

Total		19,116	$	9.03		10,800

(1)	Includes shares of common stock available for future issuance under our ESPP as of December 31, 2012.

License and Collaboration Agreements (Tables)

12 Months Ended

Dec. 31, 2012

License, Collaboration and Other Revenue

In accordance with these agreements, we recognized license, collaboration and other revenue as follows (in thousands):


		Year Ended December 31,
Partner	Agreement	2012		2011		2010
Roche	PEGASYS^® and MIRCERA^®	$	7,146	$	5,131	$	5,131
Baxter Healthcare	Hemophilia		6,238		5,646		1,701
Amgen, Inc.	Neulasta^®		5,000		5,000		833
Bayer Healthcare LLC	BAY41-6551 (Amikacin Inhale)		2,971		2,992		3,300
Affymax, Inc.	OMONTYS^®		2,829		3,838		1,867
AstraZeneca AB	Naloxegol (NKTR-118) and naloxegol fixed-dose combination program (NKTR-119)		59		2,496		107,854
Other			5,884		11,186		3,686

License, collaboration and other revenue		$	30,127	$	36,289	$	124,372

Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Total Stock-Based Compensation Expense

Stock-based compensation expense was recognized as follows (in thousands):


	Year Ended December 31,
	2012		2011		2010
Cost of goods sold	$	1,496	$	1,266	$	915
Research and development		7,082		7,944		7,218
General and administrative		7,621		9,675		9,266

Total stock-based compensation	$	16,199	$	18,885	$	17,399

Black-Scholes Option-Pricing Model Assumptions Used to Calculate Fair Value of Employee Stock Options and ESPP Purchases

The following tables list the Black-Scholes option-pricing model assumptions used to calculate the fair value of employee and director stock options and ESPP purchases.


	Year Ended December 31, 2012						Year Ended December 31, 2011						Year Ended December 31, 2010
	Stock Options			ESPP			Stock Options			ESPP			Stock Options			ESPP
Average risk-free interest rate		0.9	%		0.1	%		1.6	%		0.1	%		1.8	%		0.2	%
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Volatility factor		62.2	%		45.6	%		63.8	%		53.6	%		62.7	%		47.8	%
Weighted average expected life		5.0 years			0.5 years			4.9 years			0.5 years			4.9 years			0.5 years

Stock Option Activity Under Equity Incentive Plans

The table below presents a summary of stock option activity under our equity incentive plans (in thousands, except for price per share and contractual life information):


	Number of Shares			Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (in Years)		Aggregate Intrinsic Value(1)
Outstanding at December 31, 2011		17,046		$	9.29
Options granted		3,435			7.46
Options exercised		(631	)		5.48
Options forfeited and canceled		(852	)		10.34

Outstanding at December 31, 2012		18,998		$	9.03		4.73	$	10,972

Vested and expected to vest at December 31, 2012		18,688		$	9.04		4.70	$	10,916
Exercisable at December 31, 2012		13,449		$	9.05		4.04	$	9,874

(1)	Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of our common stock on December 31, 2012.

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Loss Before Provision for Income Taxes

Loss before provision for income taxes includes the following components (in thousands):


	Year Ended December 31,
	2012			2011			2010
Domestic	$	(174,258	)	$	(135,880	)	$	(39,321	)
Foreign		2,809			2,920			2,264

Loss before provision for income taxes	$	(171,449	)	$	(132,960	)	$	(37,057	)

Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes consists of the following (in thousands):


	Year Ended December 31,
	2012			2011		2010
Current:
Federal	$	(137	)	$	—	$	1
State		1			1		2
Foreign		1,029			921		698

Total Current		893			922		701

Deferred:
Federal		(422	)		—		—
State		(49	)		—		—
Foreign		(16	)		96		180

Total Deferred		(487	)		96		180

Provision for income taxes	$	406		$	1,018	$	881

Income Tax Provision Related to Continuing Operations

Income tax provision related to continuing operations differs from the amount computed by applying the statutory income tax rate of 35% to pretax loss as follows (in thousands):


	Year Ended December 31,
	2012			2011			2010
U.S. federal provision (benefit)
At statutory rate	$	(60,007	)	$	(46,536	)	$	(12,970	)
State taxes		(48	)		1			2
Change in valuation allowance		47,349			48,959			15,123
Foreign tax inclusion		6,510			—			—
Non-cash interest expense on liability related to sale of future royalties		6,320			—			—
Foreign tax differential		(227	)		(129	)		86
Unrecognized tax credits		(591	)		(893	)		(1,833	)
Other		1,100			(384	)		473

Provision for income taxes	$	406		$	1,018		$	881

Significant Components of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets for federal and state income taxes are as follows (in thousands):


	December 31,
	2012			2011
Deferred tax assets:
Net operating loss carryforwards	$	351,354		$	342,128
Research and other credits		52,769			51,125
Sale of future royalties		39,750			—
Deferred revenue		39,521			48,732
Stock-based compensation		23,746			19,268
Capitalized research expenses		7,192			9,514
Property and equipment		8,482			8,081
Reserves and accruals		8,776			8,083
Other		2,773			3,895

Deferred tax assets before valuation allowance		534,363			490,826
Valuation allowance for deferred tax assets		(534,268	)		(490,689	)

Total deferred tax assets		95			137

Deferred tax liabilities:
Property and equipment		—			(75	)

Total deferred tax liabilities		—			(75	)

Net deferred tax assets	$	95		$	62

Unrecognized Tax Benefits

We have the following activity relating to unrecognized tax benefits (in thousands):


	December 31,
	2012			2011		2010
Beginning balance	$	13,576		$	13,058	$	13,084
Tax positions related to current year
Additions:
Federal		289			297		259
State		302			221		208
Reductions		—			—		—
Tax positions related to prior year
Additions:
Federal		37			—		—
State		—			—		—
Reductions		—			—		(493	)
Settlements		—			—		—
Lapses in statute of limitations		(137	)		—		—

Ending balance	$	14,067		$	13,576	$	13,058

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2012

Revenue by Geographic Area

Revenue by geographic area is based on the locations of our partners. The following table sets forth revenue by geographic area (in thousands):


	Years Ended December 31,
	2012		2011		2010
United States	$	34,591	$	37,896	$	29,636
European countries		46,600		33,584		129,403

Total revenue	$	81,191	$	71,480	$	159,039

- Definition

Tabular disclosure of the names of foreign countries from which revenue is material and the amount of revenue from external customers attributed to those countries. An entity may also provide subtotals of geographic information about groups of countries.

+ References+ Details

Selected Quarterly Financial Data (Tables)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Data


	Fiscal Year 2012												Fiscal Year 2011
	Q1			Q2			Q3			Q4			Q1			Q2			Q3			Q4
Product sales	$	6,945		$	9,694		$	8,355		$	10,405		$	2,474		$	8,641		$	7,677		$	6,073

Total revenue	$	17,949		$	23,684		$	18,412		$	21,146		$	11,299		$	17,331		$	27,068		$	15,782
Cost of goods sold	$	8,707		$	7,203		$	7,228		$	7,290		$	3,263		$	8,140		$	5,038		$	5,450
Research and development expenses	$	35,085		$	33,201		$	34,016		$	46,373		$	30,176		$	32,270		$	31,018		$	33,302
Operating loss	$	(37,932	)	$	(26,988	)	$	(32,900	)	$	(43,381	)	$	(33,867	)	$	(34,264	)	$	(21,338	)	$	(34,468	)
Net loss	$	(41,097	)	$	(34,285	)	$	(43,547	)	$	(52,926	)	$	(36,034	)	$	(36,381	)	$	(24,068	)	$	(37,495	)
Basic and diluted net loss per share(1)	$	(0.36	)	$	(0.30	)	$	(0.38	)	$	(0.46	)	$	(0.33	)	$	(0.32	)	$	(0.21	)	$	(0.33	)

(1)	Quarterly loss per share amounts may not total to the year-to-date loss per share due to rounding.

Organization and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012 Customer	Dec. 31, 2011 Customer
Organization And Summary Of Significant Accounting Policies [Line Items]
Cash, cash equivalents, and investments in marketable securities	$ 302,200,000
Indebtedness	149,000,000
Outstanding convertible subordinated notes		214,955,000
Senior secured notes, issued	125,000,000
Principal amount of the convertible subordinated notes, retired amount	214,955,000
Restricted cash and long-term investments	25,000,000
Maximum maturity term of investments in marketable securities to be considered as cash equivalents	Three months
Maturity term of investments considered as short-term	Less than one year
Number of customers accounted for major accounts receivable	4	4
Percentage of accounts receivable customers one	38.00%	26.00%
Percentage of accounts receivable customers two	27.00%	20.00%
Percentage of accounts receivable customers three	14.00%	19.00%
Percentage of accounts receivable customers four	11.00%	17.00%
Minimum percentage of amount realized upon ultimate settlement	50.00%
12% Senior Secured Notes due July 2017 [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Senior secured notes, interest rate	12.00%
Maturity date of senior secured notes	Jul. 15, 2017
Minimum [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Property and Equipment estimated useful lives	3
Maximum [Member]
Organization And Summary Of Significant Accounting Policies [Line Items]
Contingent payment related to royalty obligation	$ 7,000,000
Property and Equipment estimated useful lives	7

Organization and Summary of Significant Accounting Policies - Weighted Average Securities Excluded from Diluted Net Loss Per Share (Detail) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average diluted securities excluded from diluted net loss per share	13,970	21,327	19,327
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average diluted securities excluded from diluted net loss per share	13,970	11,338	9,338
Convertible subordinated notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average diluted securities excluded from diluted net loss per share		9,989	9,989

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Antidilution

-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Diluted Earnings Per Share

-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Contingent Stock Agreement

-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 260

-SubTopic 10

-Section 50

-Paragraph 1

-Subparagraph (c)

-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 40

-Subparagraph c

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 13, 14

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Emerging Issues Task Force (EITF)

-Number 07-4

-Paragraph 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 128

-Paragraph 171

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Cash, Cash Equivalents, and Available-For-Sale Investments - Cash, Cash Equivalents, and Available-for-Sale Investments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Balance Sheet Components [Line Items]
Cash and cash equivalents	$ 25,437	$ 15,312	$ 17,755	$ 49,597
Short-term investments	251,757	225,856
Long-term investments		173,768
Restricted cash	25,000
Cash, cash equivalents, and available-for-sale investments	$ 302,194	$ 414,936

- Definition

Amount of investment in debt and equity securities categorized neither as trading securities nor held-to-maturity securities and intended be sold or mature one year or operating cycle, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 25

-Paragraph 1

-Subparagraph (b)

-URI http://asc.fasb.org/extlink&oid=7534914&loc=d3e22054-111558

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-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 12

-Subparagraph b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Number 115

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 45

-Paragraph 2

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-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 43

-Section A

-Paragraph 4, 5

-Chapter 3

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 13, 17

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Number FAS115-1/124-1

-Paragraph 15C

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Investments in debt and equity securities which are categorized neither as held-to-maturity nor trading and which are intended to be sold or mature more than one year from the balance sheet date or operating cycle, if longer. Such securities are reported at fair value; unrealized gains (losses) related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale security is designated as a hedge or is determined to have had an other than temporary decline in fair value below its amortized cost basis. All or a portion of the unrealized holding gain (loss) of an Available-for-sale security that is designated as being hedged in a fair value hedge is recognized in earnings during the period of the hedge, as are other than temporary declines in fair value below the cost basis for investments in equity securities and debt securities that an entity intends to sell or it is more likely than not that it will be required to sell before the recovery of its amortized cost basis. Other than temporary declines in fair value below the cost basis for debt securities categorized as Available-for-sale that an entity does not intend to sell and for which it is not more likely than not that the entity will be required to sell before the recovery of its amortized cost basis are bifurcated into credit losses and losses related to all other factors. Other than temporary declines in fair value below cost basis related to credit losses are recognized in earnings, and losses related to all other factors are recognized in other comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 12

-Subparagraph b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS115-1/124-1

-Paragraph 15D

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 45

-Paragraph 2

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-Paragraph 15E

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Available-for-Sale Securities

-URI http://asc.fasb.org/extlink&oid=6505594

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-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 17

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Cash

-URI http://asc.fasb.org/extlink&oid=6506951

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-Publisher FASB

-Name Accounting Standards Codification

-Glossary Cash Equivalents

-URI http://asc.fasb.org/extlink&oid=6507016

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 95

-Paragraph 8, 9

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Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.1)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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-Number 95

-Paragraph 7

-Footnote 1

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 1

-Article 5

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section 45

-Paragraph 1

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6361293&loc=d3e6676-107765

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-Name Accounting Standards Codification

-Topic 230

-SubTopic 10

-Section 45

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3044-108585

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-Name Statement of Financial Accounting Standard (FAS)

-Number 95

-Paragraph 7, 26

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Cash, Cash Equivalents, and Available-For-Sale Investments - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash and Cash Equivalents [Line Items]
Restricted cash	$ 25,000,000
Letter of credit	2,400,000	2,400,000
Maximum maturity term for debt securities investment	Two years or less
Weighted average maturity term for debt securities investment	One year or less
Available-for-sale securities, sold	$ 5,400,000	$ 210,100,000	$ 15,500,000

Cash, Cash Equivalents, and Available-For-Sale Investments - Portfolio of Cash, Cash Equivalents, and Available-for-Sale Investments (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale investments	$ 252,760	$ 399,624
Cash and money market funds, including restricted cash	49,434	15,312
Cash, cash equivalents, and available-for-sale investments	302,194	414,936
Corporate notes and bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale investments	241,158	344,427
U.S. corporate commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale investments	3,990	9,464
Obligations of U.S. government agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale investments	6,108	44,230
Obligations of U.S. states and municipalities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale investments	$ 1,504	$ 1,503

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

+ References+ Details

Cash, Cash Equivalents, and Available-For-Sale Investments - Portfolio of Available-for-Sale Investments Reported as Short-Term and Long-Term Investments by Contractual Maturity (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Schedule of Available-for-sale Securities [Line Items]
Less than one year	$ 251,757	$ 213,386
Greater than one year but less than two years		186,238
Total available-for-sale investments	$ 251,757	$ 399,624

- Definition

Amount of investment in debt and equity securities categorized neither as held-to-maturity nor trading.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-SubTopic 10

-Section 25

-Paragraph 1

-Subparagraph (b)

-URI http://asc.fasb.org/extlink&oid=7534914&loc=d3e22054-111558

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-Number 115

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 133

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-Topic 320

-SubTopic 10

-Section 45

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6871852&loc=d3e26610-111562

+ Details

Cash, Cash Equivalents, and Available-For-Sale Investments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	$ 252,760	$ 399,624
Cash, cash equivalents, and available-for-sale investments	302,194	414,936
U.S. corporate commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	3,990	9,464
Corporate notes and bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	241,158	344,427
Obligations of U.S. government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	6,108	44,230
Obligations of U.S. states and municipalities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	1,504	1,503
Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	22,487	13,950
Cash equivalents and available-for-sale investments	275,247	413,574
Cash	26,947	1,362
Cash, cash equivalents, and available-for-sale investments	302,194	414,936
Recurring [Member] \| U.S. corporate commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	3,990	9,464
Recurring [Member] \| Corporate notes and bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	241,158	344,427
Recurring [Member] \| Obligations of U.S. government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	6,108	44,230
Recurring [Member] \| Obligations of U.S. states and municipalities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	1,504	1,503
Level 1 [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	22,487	13,950
Cash equivalents and available-for-sale investments	22,487	13,950
Level 2 [Member] \| Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and available-for-sale investments	252,760	399,624
Level 2 [Member] \| Recurring [Member] \| U.S. corporate commercial paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	3,990	9,464
Level 2 [Member] \| Recurring [Member] \| Corporate notes and bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	241,158	344,427
Level 2 [Member] \| Recurring [Member] \| Obligations of U.S. government agencies [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	6,108	44,230
Level 2 [Member] \| Recurring [Member] \| Obligations of U.S. states and municipalities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, fair value	$ 1,504	$ 1,503

- Definition

+ References+ Details

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Company may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months.

+ References+ Details

Inventory - Inventory (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Inventories [Line Items]
Raw materials	$ 7,489	$ 6,660
Work-in-process	6,661	4,313
Finished goods	4,119	1,683
Inventory	$ 18,269	$ 12,656

Property and Equipment - Property and Equipment (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Property, Plant and Equipment [Line Items]
Depreciable property and equipment at cost	$ 142,116	$ 139,063
Less: accumulated depreciation	(72,666)	(62,237)
Depreciable property and equipment, net	69,450	76,826
Construction-in-progress	2,765	1,750
Property and equipment, net	72,215	78,576
Building and leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Depreciable property and equipment at cost	72,180	72,473
Laboratory equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciable property and equipment at cost	27,145	26,290
Manufacturing equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciable property and equipment at cost	20,877	19,550
Furniture, fixtures and other equipment [Member]
Property, Plant and Equipment [Line Items]
Depreciable property and equipment at cost	$ 21,914	$ 20,750

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References+ Details

- Definition

Amount, net of accumulated depreciation, depletion and amortization, of long-lived physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, furniture and fixtures, and computer equipment.

+ References+ Details

Property and Equipment - Additional Information (Detail) (USD $) In Millions, unless otherwise specified	1 Months Ended	12 Months Ended			3 Months Ended
	Nov. 30, 2010	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Mar. 31, 2012 Land and building [Member]
Property, Plant and Equipment [Line Items]
Impairment charge	$ 12.6				$ 1.7
Depreciation expense		$ 13.8	$ 15.0	$ 14.8

Senior Secured Notes and Convertible Subordinated Notes - Outstanding Balance of Senior Secured Notes and Convertible Secured Notes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
12% Senior Secured Notes due July 2017 [Member]
Debt Instrument [Line Items]
Semi-Annual Interest Payment Dates	January 15, July 15
Senior secured notes	$ 125,000
3.25% Convertible Subordinated Notes due September 2012 [Member]
Debt Instrument [Line Items]
Semi-Annual Interest Payment Dates	March 28, September 28
Convertible subordinated notes outstanding		$ 214,955

- Definition

Including the current and noncurrent portions, the carrying value of convertible subordinated debt, as of the balance sheet date, initially scheduled to be repaid after one year or beyond the normal operating cycle if longer. This form of debt can be exchanged for a specified amount of another security, typically the entity's common stock, at the option of the issuer or the holder, and places a lender in a lien position behind debt having a higher priority of repayment in liquidation of the entity's assets.

+ References+ Details

Senior Secured Notes and Convertible Subordinated Notes - Additional Information (Detail) (USD $)	1 Months Ended	12 Months Ended
	Jul. 31, 2012	Dec. 31, 2012	Jul. 11, 2012
Line of Credit Facility [Line Items]
Amount reserved			$ 25,000,000
Percentage of repurchase of notes on principal amount of notes		101.00%
Percentage of repurchase of notes on principal amount of notes		100.00%
Convertible subordinated notes remaining			172,400,000
Issuance of Debt [Member]
Line of Credit Facility [Line Items]
Senior secured notes, issued			125,000,000
Maturity date of senior secured notes	Jul. 15, 2017
Retirement of convertible subordinated notes	42,500,000
Interest rate			12.00%
Issuance costs	$ 4,500,000
Maturity date of convertible subordinated notes		Sep. 28, 2012

Leases - Gross Carrying Value by Major Asset Class and Accumulated Depreciation (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Capital Leased Assets [Line Items]
Total assets recorded under capital leases	$ 2,312	$ 2,312
Less: accumulated depreciation	(882)	(464)
Net assets recorded under capital leases	1,430	1,848
Building and leasehold improvements [Member]
Capital Leased Assets [Line Items]
Total assets recorded under capital leases	2,117	2,117
Furniture, fixtures and other equipment [Member]
Capital Leased Assets [Line Items]
Total assets recorded under capital leases	$ 195	$ 195

- Definition

Property, plant, or equipment held under lease agreements classified as an asset.

+ References+ Details

- Definition

The total charge for the use of long-lived depreciable assets subject to a lease meeting the criteria for capitalization.

+ References+ Details

Leases - Additional Information (Detail) (USD $)	1 Months Ended	12 Months Ended
Leases - Additional Information (Detail) (USD $)	Nov. 30, 2010	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 28, 2011 sqft	Sep. 30, 2009 sqft
Leases [Line Items]
Percentage ceiling on rent increases, annually, capital lease		3.00%
San Carlos facility capital leases termination date		Oct. 05, 2016
Impairment charge	$ 12,600,000
Operating sublease						102,283
Operating Sublease term commenced start date		August 2010
Operating Sublease term commenced period		114 months
Operating Sublease term commenced end date		January 31, 2020
Initial monthly base rent per square foot, operating lease		2.95
Final monthly base rent per square foot, operating lease		3.42
Additional area included in operating sublease due to amendment					24,002
Operating lease expense per month per amendment		40,000
Rent expense for operating leases		$ 2,800,000	$ 2,400,000	$ 2,200,000

Leases - Future Minimum Payments for Capital Leases (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Future Minimum Lease Payments Under Capital Leases [Line Items]
2013	$ 5,129
2014	5,191
2015	5,280
2016	4,034
Total minimum payments required	19,634
Less: amount representing interest	(5,057)
Present value of future minimum lease payments	14,577
Less: current portion	(2,970)
Capital lease obligation, less current portion	$ 11,607	$ 14,582

Leases - Future Minimum Lease Payments for Operating Lease (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012
Future Minimum Lease Payments Under Operating Leases [Line Items]
2013	$ 200
2014	1,509
2015	3,667
2016	3,777
2017	3,888
2018 and thereafter	8,479
Total future minimum lease payments	$ 21,520

- Definition

Amount of required minimum rental payments for leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing in the next fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing in the fifth fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing in the forth fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing in the third fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing in the second fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

- Definition

Amount of required minimum rental payments maturing after the fifth fiscal year following the latest fiscal year for operating leases having an initial or remaining non-cancelable letter-terms in excess of one year.

+ References+ Details

Liability Related to Sale of Future Royalties - Additional Information (Detail) (USD $)	12 Months Ended				3 Months Ended	9 Months Ended	12 Months Ended		12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012 Purchase and Sale Agreement with RPI [Member]	Mar. 31, 2012 CIMZIA and MIRCERA [Member]	Dec. 31, 2012 CIMZIA and MIRCERA [Member]	Dec. 31, 2012 CIMZIA and MIRCERA [Member]	Dec. 31, 2012 MIRCERA [Member]	Dec. 31, 2012 Milestone Scenario One [Member]	Dec. 31, 2012 Milestone Scenario Two [Member]
Proceeds from sale of royalty rights				$ 124,000,000
Transaction costs related to sale of potential future royalties				4,400,000
Royalty revenues	4,874,000	10,327,000	7,255,000		2,700,000		13,500,000
Non-cash royalty revenue related to sale of future royalties	10,791,000					10,800,000
Annual interest rate	17.00%
Potential payments milestone not achieved year one									3,000,000
Potential payments milestone not achieved year two										7,000,000
Royalty agreement contingent payment description									If certain worldwide net sales thresholds of MIRCERAfor the 12 month period ending on December 31, 2012 are not achieved	If certain worldwide net sales thresholds of MIRCERAfor the 12 month period ending on December 31, 2013 are not achieved
Other current liabilities	$ 12,414,000	$ 4,681,000						$ 3,000,000

- Definition

Aggregate carrying amount of current liabilities (due within one year or within the normal operating cycle if longer) not separately disclosed in the balance sheet. Includes costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered and of liabilities not separately disclosed.

+ References+ Details

Liability Related to Sale of Future Royalties - Summary of Liability Related to Potential Future Royalties (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Schedule Of Other Liabilities [Line Items]
Liability related to sale of future royalties-beginning balance
Proceeds from sale of future royalties	124,000
Non-cash interest expense recognized during 2012	18,057
CIMZIA®and MIRCERA®royalties paid to RPI during 2012	(10,791)
Total liability related to sale of future royalties as of December 31, 2012	131,266
Less: current portion	(3,000)
Liability related to sale of future royalties, less current portion	$ 128,266

Commitments and Contingencies - Additional Information (Detail) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Loss Contingencies [Line Items]
Royalty expense	$ 2,900,000	$ 1,800,000	$ 2,200,000
Purchase commitments related to contract manufacturing, clinical development and certain other items	14,600,000
Securities related claims [Member]
Loss Contingencies [Line Items]
Obligations under Director and Officer Indemnifications per incident	500,000
Non-securities related claims [Member]
Loss Contingencies [Line Items]
Obligations under Director and Officer Indemnifications per incident	$ 150,000

- Definition

The floor amount as of the balance sheet date that the entity must expend to satisfy the terms of disclosed arrangements (excluding long-term commitments) in which the entity has agreed to expend funds to procure goods or services from one or more suppliers, other than under a long-term purchase commitment or an unconditional purchase obligation.

+ References+ Details

Stockholders' Equity - Additional Information (Detail) (USD $)	12 Months Ended									12 Months Ended		1 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012 2012 Performance Incentive Plan [Member] Y	Dec. 31, 2012 2000 Non-Officer Equity Incentive Plan [Member]	Dec. 31, 2012 Employee Stock Purchase Plan [Member]	Dec. 31, 2012 2008 Equity Incentive Plan [Member] Y	Dec. 31, 2012 2000 Equity Incentive Plan [Member] Y	Dec. 31, 2012 Restricted Stock Units [Member]	Dec. 31, 2012 Director [Member] 2012 Performance Incentive Plan [Member]	Dec. 31, 2012 Employee [Member] 2012 Performance Incentive Plan [Member]	Jan. 31, 2011 Common Stock [Member]	Dec. 31, 2012 Common Stock [Member]	Jan. 24, 2011 Common Stock [Member]	Dec. 31, 2012 Preferred Stock [Member]	Dec. 31, 2011 Series A Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	10,000,000	10,000,000													10,000,000	3,100,000
Preferred stock, par value	$ 0.0001	$ 0.0001													$ 0.0001
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, shares issued	115,259,000	114,485,000												19,000,000
Proceeds from sale of common stock												$ 220,400,000
Legal, accounting fees, filing fees and other offering expenses												600,000
Common stock, shares reserved for issuance in equity compensation plans													29,915,641
Additional new shares available for award grants				5,300,000
Service period for stock options granted										4 years	1 year
Number of common stock shares available for stock options grants				10,347,140
Share-based compensation plan's share limit reduction for every one restricted stock unit granted				1.5
Maximum term of stock options under equity incentive plans				8			8	8
Minimum voting power percentage for accelerated vesting period							10.00%	10.00%
Exercise price of stock options granted							100.00%	100.00%
Exercise price of stock options granted for holders of more than ten percent of voting right							110.00%	110.00%
Maximum term of stock options under equity incentive plans					8 years
RSU awards par value	$ 0.0001	$ 0.0001							$ 0.01
Restricted stock units award depletion ratio	1:1.5
Common stock, shares authorized	300,000,000	300,000,000				1,500,000
Percentage of purchase price of stock						85.00%
Maximum 401(k) per employee, percentage of annual salary	60.00%
Matching 401(k) employer contribution, maximum amount	3,000
Compensation expense in connection with 401(k) retirement plan	$ 900,000	$ 900,000	$ 1,000,000
Severance payment period for executives	12 months
Severance payment period for employees	6 months
Cash severance payment for chief executive officer	24 months base salary plus annual target incentive pay

Stockholders' Equity - Summarization of Common Stock Shares for Issuance Under Existing Equity Compensation Plans (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Securities to be Issued Upon Exercise of Outstanding Options & Vesting of RSUs	19,116
Number of Securities Remaining Available for Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column)	10,800
Weighted-Average Exercise Price of Outstanding Options	$ 9.03
Equity compensation plans approved by security holders [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Securities to be Issued Upon Exercise of Outstanding Options & Vesting of RSUs	12,292
Number of Securities Remaining Available for Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column)	10,800
Weighted-Average Exercise Price of Outstanding Options	$ 8.66
Equity compensation plans not approved by security holders [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Securities to be Issued Upon Exercise of Outstanding Options & Vesting of RSUs	6,824
Weighted-Average Exercise Price of Outstanding Options	$ 9.71

License and Collaboration Agreements - License, Collaboration and Other Revenue (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
License And Collaboration Agreements [Line Items]
License, collaboration and other revenue	$ 30,127	$ 36,289	$ 124,372
Roche [Member] \| PEGASYS and MIRCERA [Member]
License And Collaboration Agreements [Line Items]
License, collaboration and other revenue	7,146	5,131	5,131
Baxter Healthcare [Member] \| Hemophilia [Member]
License And Collaboration Agreements [Line Items]
License, collaboration and other revenue	6,238	5,646	1,701
Amgen, Inc. [Member] \| Neulasta [Member]
License And Collaboration Agreements [Line Items]
License, collaboration and other revenue	5,000	5,000	833
Bayer Healthcare LLC [Member] \| BAY41-6551 (Amikacin Inhale) [Member]
License And Collaboration Agreements [Line Items]
License, collaboration and other revenue	2,971	2,992	3,300
Affymax, Inc. [Member] \| OMONTYS [Member]
License And Collaboration Agreements [Line Items]
License, collaboration and other revenue	2,829	3,838	1,867
AstraZeneca AB [Member] \| Naloxegol (NKTR-118) and naloxegol fixed-dose combination program (NKTR-119) [Member]
License And Collaboration Agreements [Line Items]
License, collaboration and other revenue	59	2,496	107,854
Other [Member]
License And Collaboration Agreements [Line Items]
License, collaboration and other revenue	$ 5,884	$ 11,186	$ 3,686

License and Collaboration Agreements - Additional Information (Detail) (USD $)	12 Months Ended			2 Months Ended	12 Months Ended	3 Months Ended		12 Months Ended	1 Months Ended			12 Months Ended					12 Months Ended	2 Months Ended	12 Months Ended	1 Months Ended	12 Months Ended											3 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009 Roche [Member] License extension option [Member]	Dec. 31, 2012 Roche [Member] Performance-based milestone payments [Member]	Dec. 31, 2010 Amgen, Inc. [Member]	Dec. 31, 2012 Amgen, Inc. [Member]	Dec. 31, 2012 Bayer Healthcare LLC [Member]	Dec. 31, 2007 Bayer Healthcare LLC [Member] Upfront payment arrangement [Member]	Dec. 31, 2007 Bayer Healthcare LLC [Member] Performance-based milestone payments [Member]	Dec. 31, 2012 AstraZeneca AB [Member]	Dec. 31, 2012 Other [Member]	Dec. 31, 2011 Other [Member]	Dec. 31, 2010 Other [Member]	Dec. 31, 2011 Other [Member] Upfront payment arrangement [Member]	Dec. 31, 2012 PEGASYS [Member] Roche [Member]	Dec. 31, 2012 MIRCERA [Member] Roche [Member]	Feb. 29, 2012 MIRCERA [Member] Roche [Member] Upfront payment arrangement [Member]	Dec. 31, 2012 MIRCERA [Member] Roche [Member] Upfront payment arrangement [Member]	Feb. 29, 2012 MIRCERA [Member] Roche [Member] Performance-based milestone payments [Member]	Dec. 31, 2012 OMONTYS [Member] Affymax, Inc. [Member]	Dec. 31, 2011 OMONTYS [Member] Affymax, Inc. [Member]	Dec. 31, 2010 OMONTYS [Member] Affymax, Inc. [Member]	Dec. 31, 2012 Hemophilia [Member] Baxter Healthcare [Member]	Dec. 31, 2011 Hemophilia [Member] Baxter Healthcare [Member]	Dec. 31, 2010 Hemophilia [Member] Baxter Healthcare [Member]	Dec. 31, 2012 Hemophilia B [Member]	Dec. 31, 2012 Hemophilia B [Member] Baxter Healthcare [Member]	Dec. 31, 2012 Naloxegol (NKTR-118) and naloxegol fixed-dose combination program (NKTR-119) [Member] AstraZeneca AB [Member]	Dec. 31, 2011 Naloxegol (NKTR-118) and naloxegol fixed-dose combination program (NKTR-119) [Member] AstraZeneca AB [Member]	Dec. 31, 2010 Naloxegol (NKTR-118) and naloxegol fixed-dose combination program (NKTR-119) [Member] AstraZeneca AB [Member]	Dec. 31, 2009 Naloxegol (NKTR-118) and naloxegol fixed-dose combination program (NKTR-119) [Member] AstraZeneca AB [Member] Upfront payment arrangement [Member]	Dec. 31, 2012 Naloxegol [Member]	Dec. 31, 2012 Naloxegol [Member] AstraZeneca AB [Member]	Dec. 31, 2012 Naloxegol fixed-dose combination program [Member] AstraZeneca AB [Member]
Deferred Revenue Arrangement [Line Items]
Potential future payments for development milestones	$ 161,100,000							$ 60,000,000				$ 73,100,000												$ 28,000,000
Received upfront and milestone payments				31,000,000		50,000,000			40,000,000	20,000,000								5,000,000	16,000,000					4,000,000				5,000,000				125,000,000
Deferred revenue							39,200,000	24,500,000								15,400,000	13,000,000				7,100,000			1,300,000
Expected consideration					11,000,000												27,000,000			22,000,000
Revenue recognized as contractual obligations are completed															5,000,000		3,000,000										3,900,000
Performance milestone to be used to reimburse Bayer for future clinical trial costs								10,000,000
Substantive milestone revenue																					2,000,000
Contingent payments receivable based on development events regulatory to be pursued and completed solely by others											95,000,000																						140,000,000	235,000,000	75,000,000
License, collaboration and other revenue	$ 30,127,000	$ 36,289,000	$ 124,372,000									$ 5,884,000	$ 11,186,000	$ 3,686,000							$ 2,829,000	$ 3,838,000	$ 1,867,000	$ 6,238,000	$ 5,646,000	$ 1,701,000			$ 59,000	$ 2,496,000	$ 107,854,000

Impairment of Long Lived Assets - Additional Information (Detail) (USD $)	12 Months Ended		3 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2010	Mar. 31, 2012 Land and building [Member]	Dec. 31, 2012 Land and building [Member]
Impaired Long-Lived Assets Held and Used [Line Items]
Impairment of long-lived assets	$ 1,675,000	$ 12,576,000	$ 1,700,000	$ 0
Net book value of assets	$ 1,400,000			$ 2,800,000
Method for determining fair value	Probability-weighted discounted cash flow model of the future estimated net sublease income

- Definition

A description of how an entity determined the fair value of the long-lived asset being disposed of by a method other than sale, for example, whether based on a quoted market price, prices for similar assets, or another valuation technique.

+ References+ Details

- Definition

The aggregate amount of write-downs for impairments recognized during the period for long lived assets held for use (including those held for disposal by means other than sale).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 230

-SubTopic 10

-Section 45

-Paragraph 28

-Subparagraph (b)

-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 360

-SubTopic 10

-Section 45

-Paragraph 4

-URI http://asc.fasb.org/extlink&oid=8077374&loc=d3e2420-110228

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 360

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (b)

-URI http://asc.fasb.org/extlink&oid=6391110&loc=d3e2921-110230

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 144

-Paragraph 26

-Subparagraph b

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 958

-SubTopic 225

-Section 45

-Paragraph 11

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=6743430&loc=d3e92212-112881

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Impairment

-URI http://asc.fasb.org/extlink&oid=6515133

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 144

-Paragraph 7, 25

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stock-Based Compensation - Total Stock-Based Compensation Expense (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 16,199	$ 18,885	$ 17,399
Cost of goods sold [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	1,496	1,266	915
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	7,082	7,944	7,218
General and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total stock-based compensation	$ 7,621	$ 9,675	$ 9,266

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References+ Details

Stock-Based Compensation - Additional Information (Detail) (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation expense	$ 25.0
Recognized over a weighted-average period	1 year 7 months 6 days
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%
Weighted-average grant-date fair value	$ 3.92	$ 5.22	$ 6.30
Total intrinsic value of options exercised	1.9	3.7	6.8
Estimated fair value of options vested	$ 15.7	$ 18.1	$ 14.7
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock unit awards outstanding	120,580	136,080

- Definition

The number of non-vested equity-based payment instruments, excluding stock (or unit) options, that validly exist and are outstanding as of the balance sheet date.

+ References+ Details

Stock-Based Compensation - Black-Scholes Option-Pricing Model Assumptions Used To Calculate Fair Value of Employee Stock Options ESPP Purchases (Detail)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Stock options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	0.90%	1.60%	1.80%
Dividend yield	0.00%	0.00%	0.00%
Volatility factor	62.20%	63.80%	62.70%
Weighted average expected life	5 years	4 years 10 months 24 days	4 years 10 months 24 days
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Average risk-free interest rate	0.10%	0.10%	0.20%
Dividend yield	0.00%	0.00%	0.00%
Volatility factor	45.60%	53.60%	47.80%
Weighted average expected life	6 months	6 months	6 months

Stock-Based Compensation - Stock Option Activity Under Equity Incentive Plans (Detail) (Stock options [Member], USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Stock options [Member]
Schedule Of Stock Option Activity [Line Items]
Number of Shares outstanding, Beginning balance	17,046
Number of Shares, Options granted	3,435
Number of Shares, Options exercised	(631)
Number of Shares, Options forfeited & canceled	(852)
Number of Shares outstanding, Ending balance	18,998
Vested & Expected to Vest, Outstanding Number of Shares	18,688
Exercisable, Number of Shares	13,449
Weighted Average Exercise Price per Share, Outstanding, Beginning balance	$ 9.29
Weighted Average Exercise Price per Share, Options granted	$ 7.46
Weighted Average Exercise Price per Share, Options exercised	$ 5.48
Weighted Average Exercise Price per Share, Options forfeited & Canceled	$ 10.34
Weighted Average Exercise Price per Share , Outstanding, Ending balance	$ 9.03
Vested and expected to vest, Weighted-Average Exercise Price per Share	$ 9.04
Exercisable, Weighted Average Exercise Price per Share	$ 9.05
Weighted-Average Remaining Contractual Life, Outstanding	4 years 8 months 23 days
Vested and expected to Vest, Weighted-Average Remaining Contractual Life	4 years 8 months 12 days
Exercisable, Weighted-Average Remaining Contractual Life	4 years 15 days
Aggregate Intrinsic Value, Outstanding	$ 10,972
Vested and expected to Vest, Aggregate Intrinsic Value	10,916
Exercisable, Aggregate Intrinsic Value	$ 9,874

Income Taxes - Loss Before Provision for Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Loss Before Provision For Income Tax [Line Items]
Domestic	$ (174,258)	$ (135,880)	$ (39,321)
Foreign	2,809	2,920	2,264
Loss before provision for income taxes	$ (171,449)	$ (132,960)	$ (37,057)

Income Taxes - Provision (Benefit) for Income Taxes (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Current:
Federal	$ (137)		$ 1
State	1	1	2
Foreign	1,029	921	698
Total Current	893	922	701
Deferred:
Federal	(422)
State	(49)
Foreign	(16)	96	180
Total Deferred	(487)	96	180
Provision for income taxes	$ 406	$ 1,018	$ 881

Income Taxes - Additional Information (Detail) (USD $)	12 Months Ended
Income Taxes - Additional Information (Detail) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Tax Disclosure [Line Items]
Statutory income tax rate	35.00%
Increase in valuation allowance	$ 43,600,000	$ 52,900,000
Valuation allowance related to stock-based compensation and exercises prior to the implementation of ASC 515 and 718	35,600,000	35,600,000
Deferred U.S. income taxes	(422,000)
Income taxes on cumulative total	3,100,000
Federal orphan drug credits	14,000,000
Unrecognized tax benefits, period increase (decrease) reasonable period of change	Next twelve months
Interest or penalties related to income tax	0	0	0
Federal [Member]
Income Tax Disclosure [Line Items]
Net operating loss carryforward for income tax purposes	909,400,000
Income tax research credits	23,700,000
State [Member]
Income Tax Disclosure [Line Items]
Net operating loss carryforward for income tax purposes	602,500,000
Income tax research credits	$ 14,700,000

Income Taxes - Income Tax Provision Related to Continuing Operations (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
U.S. federal provision (benefit)
At statutory rate	$ (60,007)	$ (46,536)	$ (12,970)
State taxes	(48)	1	2
Change in valuation allowance	47,349	48,959	15,123
Foreign tax inclusion	6,510
Non-cash interest expense on liability related to sale of future royalties	6,320
Foreign tax differential	(227)	(129)	86
Unrecognized tax credits	(591)	(893)	(1,833)
Other	1,100	(384)	473
Provision for income taxes	$ 406	$ 1,018	$ 881

Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Detail) (USD $) In Thousands, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Deferred tax assets:
Net operating loss carryforwards	$ 351,354	$ 342,128
Research and other credits	52,769	51,125
Sale of future royalties	39,750
Deferred revenue	39,521	48,732
Stock-based compensation	23,746	19,268
Capitalized research expenses	7,192	9,514
Property and equipment	8,482	8,081
Reserves and accruals	8,776	8,083
Other	2,773	3,895
Deferred tax assets before valuation allowance	534,363	490,826
Valuation allowance for deferred tax assets	(534,268)	(490,689)
Total deferred tax assets	95	137
Deferred tax liabilities:
Property and equipment		(75)
Total deferred tax liabilities		(75)
Net deferred tax assets	$ 95	$ 62

Income Taxes - Unrecognized Tax Benefits (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Unrecognized Tax Benefits [Line Items]
Beginning balance	$ 13,576	$ 13,058	$ 13,084
Reductions
Reductions			(493)
Settlements
Lapses in statute of limitations	(137)
Ending balance	14,067	13,576	13,058
Federal [Member]
Unrecognized Tax Benefits [Line Items]
Tax positions related to current year, Additions	289	297	259
Tax positions related to prior year, Additions	37
State [Member]
Unrecognized Tax Benefits [Line Items]
Tax positions related to current year, Additions	$ 302	$ 221	$ 208

Segment Reporting - Additional Information (Detail) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012 Segment	Dec. 31, 2011
Segment Reporting Information [Line Items]
Number of operating business segment	1
Number of components within business segment	2
Property and equipment, net	$ 72,215	$ 78,576
UCB [Member]
Segment Reporting Information [Line Items]
Percentage revenue from clients	30.00%
Roche [Member]
Segment Reporting Information [Line Items]
Percentage revenue from clients	23.00%	27.00%
Affymax, Inc. [Member]
Segment Reporting Information [Line Items]
Percentage revenue from clients	11.00%	16.00%
United States [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	62,500	67,700
Percent of net book value of property and equipment	87.00%	86.00%
India [Member]
Segment Reporting Information [Line Items]
Property and equipment, net	$ 9,700	$ 10,900
Percent of net book value of property and equipment	13.00%	14.00%

- Definition

+ References+ Details

Segment Reporting - Revenue by Geographic Area (Detail) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenue by geographic area
Total revenue	$ 21,146	$ 18,412	$ 23,684	$ 17,949	$ 15,782	$ 27,068	$ 17,331	$ 11,299	$ 81,191	$ 71,480	$ 159,039
United States [Member]
Revenue by geographic area
Revenue from Home country									34,591	37,896	29,636
European Countries [Member]
Revenue by geographic area
Revenue from External customers									$ 46,600	$ 33,584	$ 129,403

Selected Quarterly Financial Data - Quarterly Financial Data (Detail) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Schedule Of Quarterly Financial Data [Line Items]
Product sales	$ 10,405	$ 8,355	$ 9,694	$ 6,945	$ 6,073	$ 7,677	$ 8,641	$ 2,474	$ 35,399	$ 24,864	$ 27,412
Total revenue	21,146	18,412	23,684	17,949	15,782	27,068	17,331	11,299	81,191	71,480	159,039
Cost of goods sold	7,290	7,228	7,203	8,707	5,450	5,038	8,140	3,263	30,428	21,891	25,667
Research and development expenses	46,373	34,016	33,201	35,085	33,302	31,018	32,270	30,176	148,675	126,766	108,065
Operating loss	(43,381)	(32,900)	(26,988)	(37,932)	(34,468)	(21,338)	(34,264)	(33,867)	(141,201)	(123,937)	(28,255)
Net loss	$ (52,926)	$ (43,547)	$ (34,285)	$ (41,097)	$ (37,495)	$ (24,068)	$ (36,381)	$ (36,034)	$ (171,855)	$ (133,978)	$ (37,938)
Basic and diluted net loss per share	$ (0.46)	$ (0.38)	$ (0.30)	$ (0.36)	$ (0.33)	$ (0.21)	$ (0.32)	$ (0.33)	$ (1.50)	$ (1.19)	$ (0.40)

- Definition

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

+ References

+ Details

- Definition

The aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility, and costs allocated in accounting for a business combination to in-process projects deemed to have no alternative future use.

+ References+ Details

Valuation and Qualifying Accounts and Reserves (Detail) (Allowance for inventory reserves [Member], USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Allowance for inventory reserves [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Year	$ 2,439	$ 3,982	$ 3,336
Charged to Costs and Expenses, Net of Reversals	1,225	2,766	1,012
Utilizations	(2,716)	(4,309)	(366)
Balance at End of Year	$ 948	$ 2,439	$ 3,982

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2011
Net of issuance costs	$ 617
Common Stock [Member]
Net of issuance costs	617
Capital in Excess of Par Value [Member]
Net of issuance costs	$ 617

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Net of issuance costs	$ 4.5
Net of transaction costs	$ 4.4