Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v2.4.0.8
Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2013
Fair Value Disclosures [Abstract]  
Summary of investments classified as available for sale, and carried at fair value
A summary of our investments as of June 30, 2013, classified as available for sale, and carried at fair value is as follows:
 
As of June 30, 2013
(In thousands)
Amortized
Cost
 
Gross
unrealized
gains in
Accumulated
OCI
 
Gross
unrealized
losses in
Accumulated
OCI
 
Gain/(Loss)
in
Accumulated
Deficit
 
Fair
value
Common stock investments, available for sale
$
1,376

 
$
1,160

 
$
—

 
$
—

 
$
2,536

BZNE Note and conversion feature
1,700

 
53

 
—

 
287

 
2,040

Neovasc common stock options
925

 
715

 
—

 
679

 
2,319

U.S. Treasury securities
75,040

 
—

 
(7
)
 
(7
)
 
75,026

Total assets
$
79,041

 
$
1,928

 
$
(7
)
 
$
959

 
$
81,921

A summary of our investments as of December 31, 2012, classified as available for sale, and carried at fair value is as follows:
 
As of December 31, 2012
(In thousands)
Amortized
Cost
 
Gross
unrealized
gains in
Accumulated
OCI
 
Gross
unrealized
losses in
Accumulated
OCI
 
Gain/(Loss)
in
Accumulated
Deficit
 
Fair
value
Common stock investments, available for sale
$
2,051

 
$
6,185

 
$
—

 
$
—

 
$
8,236

BZNE Note and conversion feature
1,700

 
53

 
—

 
287

 
2,040

Neovasc common stock options
925

 
293

 
—

 
176

 
1,394

Neovasc common stock warrants
659

 
194

 
—

 
(375
)
 
478

Total assets
$
5,335

 
$
6,725

 
$
—

 
$
88

 
$
12,148

Financial assets and liabilities measured at fair value on a recurring basis
Our financial assets and liabilities measured at fair value on a recurring basis are as follows:
 
Fair value measurements as of June 30, 2013
(In thousands)
Quoted
prices in
active
markets for
identical
assets
(Level 1)
 
Significant
other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Money market funds
$
80,183

 
$
—

 
$
—

 
$
80,183

U.S. Treasury securities
24,999

 
50,027

 
—

 
75,026

Certificates of deposit
—

 
827

 
—

 
827

Pharmsynthez Note Receivable and Purchase Option
—

 
6,795

 
—

 
6,795

Forward contracts
—

 
133

 
—

 
133

Common stock investments, available for sale
2,536

 
—

 
—

 
2,536

BZNE Note and conversation feature
—

 
—

 
2,040

 
2,040

Neovasc common stock options
—

 
2,319

 
—

 
2,319

Total assets
$
107,718

 
$
60,101

 
$
2,040

 
$
169,859

Liabilities:
 
 
 
 
 
 
 
Embedded conversion option
$
—

 
$
—

 
$
74,079

 
$
74,079

Deferred acquisition payments, net of discount
—

 
—

 
9,415

 
9,415

Contingent consideration:
 
 
 
 
 
 
 
CURNA
—

 
—

 
549

 
549

OPKO Diagnostics
—

 
—

 
14,512

 
14,512

FineTech
—

 
—

 
2,763

 
2,763

Cytochroma
—

 
—

 
49,784

 
49,784

Farmadiet
—

 
—

 
1,298

 
1,298

Total liabilities
$
—

 
$
—

 
$
152,400

 
$
152,400

 
Fair value measurements as of December 31, 2012
(In thousands)
Quoted
prices in
active
markets for
identical
assets
(Level 1)
 
Significant
other
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Money market funds
$
18,716

 
$
—

 
$
—

 
$
18,716

Certificates of deposit
—

 
820

 
—

 
820

Common stock investments, available for sale
8,236

 
—

 
—

 
8,236

BZNE Note and conversation feature
—

 
—

 
2,040

 
2,040

Neovasc common stock options
—

 
1,394

 
—

 
1,394

Neovasc common stock warrants
—

 
478

 
—

 
478

Total assets
$
26,952

 
$
2,692

 
$
2,040

 
$
31,684

Liabilities:
 
 
 
 
 
 
 
Forward contracts
$
—

 
$
10

 
$
—

 
$
10

Deferred acquisition payments, net of discount
—

 
—

 
10,103

 
10,103

Contingent consideration:
 
 
 
 
 
 
 
CURNA
—

 
—

 
510

 
510

OPKO Diagnostics
—

 
—

 
12,974

 
12,974

FineTech
—

 
—

 
5,262

 
5,262

Farmadiet
—

 
—

 
1,310

 
1,310

Total liabilities
$
—

 
$
10

 
$
30,159

 
$
30,169

The carrying amount and estimated fair value of our long-term debt
. The fair value of the Notes is determined using a binomial lattice approach in order to estimate the fair value of the embedded derivative in the Notes. Refer to Note 6.
 
June 30, 2013
(In thousands)
Carrying
Value
 
Total
Fair Value
 
Level 1
 
Level 2
 
Level 3
Notes
$
114,445

 
$
115,402

 
$
—

 
$
—

 
$
115,402

Reconcile the beginning and ending balances of Level 3 assets and liabilities
The following tables reconcile the beginning and ending balances of our Level 3 assets and liabilities as of June 30, 2013 and December 31, 2012:
 
June 30, 2013
(In thousands)
BZNE Note
and
conversion
feature
 
Contingent
consideration
 
Deferred
acquisition
payments, net
of discount
 
Embedded
conversion
option
Balance at December 31, 2012
$
2,040

 
$
20,056

 
$
10,103

 
$
—

Additions
—

 
47,710

 
—

 
59,204

Total losses (gains) for the period:
 
 
 
 
 
 
 
Included in results of operations
—

 
3,901

 
112

 
14,875

Payments
—

 
(2,761
)
 
(800
)
 
—

Balance at June 30, 2013
$
2,040

 
$
68,906

 
$
9,415

 
$
74,079

 
December 31, 2012
(In thousands)
BZNE Note
and
conversion
feature
 
Contingent
consideration
 
Deferred
acquisition
payments, net
of discount
Balance at December 31, 2011
$
—

 
$
18,002

 
$
—

Additions
1,700

 
1,234

 
9,673

Total losses (gains) for the period:
 
 
 
 
 
Included in results of operations
1,563

 
820

 
430

Included in Other comprehensive loss
53

 
—

 
—

Transfer out to equity method investment
(1,276
)
 
—

 
—

Balance at December 31, 2012
$
2,040

 
$
20,056

 
$
10,103