View Filing Data

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Schedule of Goodwill and Intangible Assets

Goodwill and intangible assets consist of the following:

		December 31, 2019							December 31, 2018
(In thousands)	Weighted Amortizable Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Goodwill		$	92,873	$	—		$	92,873	$	92,873	$	—		$	92,873
Finite-lived intangible assets:
Collaboration agreements	12	$	465,590	$	(348,595	)	$	116,995	$	465,590	$	(319,311	)	$	146,279
NanoCrystal technology	13		74,600		(46,773	)		27,827		74,600		(38,942	)		35,658
OCR⁽¹⁾ technologies	12		42,560		(36,739	)		5,821		42,560		(33,496	)		9,064
Total		$	582,750	$	(432,107	)	$	150,643	$	582,750	$	(391,749	)	$	191,001

(1)OCR refers to the Company’s oral controlled release technologies.

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 203,771	$ 266,762
Investments—short-term	331,208	272,533
Receivables, net	257,086	292,223
Contract assets	8,386	8,230
Inventory	101,803	90,196
Prepaid expenses and other current assets	59,716	53,308
Total current assets	961,970	983,252
PROPERTY, PLANT AND EQUIPMENT, NET	362,168	309,987
INTANGIBLE ASSETS, NET	150,643	191,001
GOODWILL	92,873	92,873
DEFERRED TAX ASSETS	96,558	85,807
INVESTMENTS—LONG-TERM	79,391	80,744
CONTINGENT CONSIDERATION	32,400	65,200
RIGHT-OF-USE ASSETS	12,379
OTHER ASSETS	17,021	16,143
TOTAL ASSETS	1,805,403	1,825,007
CURRENT LIABILITIES:
Accounts payable and accrued expenses	373,037	333,762
Operating lease liabilities—short-term	8,466
Contract liabilities—short-term	6,766	3,169
Long-term debt—short-term	2,843	2,843
Total current liabilities	391,112	339,774
LONG-TERM DEBT	274,295	276,465
CONTRACT LIABILITIES—LONG-TERM	22,068	9,525
OPERATING LEASE LIABILITIES—LONG-TERM	5,342
OTHER LONG-TERM LIABILITIES	27,144	27,958
Total liabilities	719,961	653,722
COMMITMENTS AND CONTINGENT LIABILITIES (Note 19)
SHAREHOLDERS’ EQUITY:
Preferred shares, par value, $0.01 per share; 50,000,000 shares authorized; zero issued and outstanding at December 31, 2019 and 2018, respectively
Ordinary shares, par value, $0.01 per share; 450,000,000 shares authorized; 160,489,888 and 158,180,833 shares issued; 157,779,002 and 155,757,344 shares outstanding at December 31, 2019 and 2018, respectively	1,602	1,579
Treasury shares, at cost (2,710,886 and 2,423,489 shares at December 31, 2019 and 2018, respectively)	(118,386)	(108,969)
Additional paid-in capital	2,586,030	2,467,323
Accumulated other comprehensive loss	(1,816)	(3,280)
Accumulated deficit	(1,381,988)	(1,185,368)
Total shareholders’ equity	1,085,442	1,171,285
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 1,805,403	$ 1,825,007

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Tax provision (benefit)	$ 426	$ 159	$ (295)

Summary of Significant Accounting Policies - Summary of Estimated Fair Value of Stock Option Grant on Weighted Average Assumptions (Details) - Time-Based Stock Options	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Weighted-average assumptions
Expected stock volatility, minimum (as a percent)	46.00%	44.00%	43.00%
Expected stock volatility, maximum (as a percent)	50.00%	49.00%	47.00%
Risk-free interest rate, minimum (as a percent)	1.34%	2.25%	1.69%
Risk-free interest rate, maximum (as a percent)	2.59%	3.10%	2.38%
Minimum
Weighted-average assumptions
Expected option term	5 years	5 years	5 years
Maximum
Weighted-average assumptions
Expected option term	7 years	8 years	8 years

Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Long-term debt
Less: current portion	$ (2,843)	$ (2,843)
Long-term debt	274,295	276,465
2023 Term Loans
Long-term debt
2023 Term Loans, due March 26, 2023	277,138	279,308
Less: current portion	(2,843)	(2,843)
Long-term debt	$ 274,295	$ 276,465

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (196,620)	$ (139,311)	$ (157,945)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation and amortization	80,413	103,660	98,523
Share-based compensation expense	100,977	105,357	83,917
Deferred income taxes	(319)	10,623	7,234
Change in the fair value of contingent consideration	22,800	19,600	(21,600)
Loss on debt refinancing		2,298
Payment made for debt refinancing		(2,251)
Impairment of property, plant and equipment		5,746
Impairment of investment in Synchronicity Pharma, Inc.			10,471
Other non-cash charges	(580)
Other non-cash charges		979	3,471
Changes in assets and liabilities, excluding the effect of acquisitions:
Receivables	35,136	(58,632)	(42,489)
Contract assets	(5,156)	880
Inventory	(13,077)	(2,665)	(30,191)
Prepaid expenses and other assets	(1,784)	(5,990)	(9,506)
Right-of-use assets	8,399
Accounts payable and accrued expenses	34,847	46,739	72,658
Contract liabilities	16,140	3,252	(1,447)
Operating lease liabilities	(9,117)
Other long-term liabilities	18	8,996	6,094
Cash flows provided by operating activities	72,077	99,281	19,190
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions of property, plant and equipment	(90,942)	(69,431)	(51,300)
Proceeds from the sale of equipment	900	507	162
Proceeds from contingent consideration	10,000
Purchases of investments	(277,518)	(397,727)	(431,712)
Sales and maturities of investments	224,602	444,456	464,494
Acquisition of Rodin Therapeutics, Inc.'s net assets, net of cash acquired	(8,875)
Cash flows used in investing activities	(141,833)	(22,195)	(18,356)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from the issuance of ordinary shares under share-based compensation arrangements	18,925	20,877	23,517
Employee taxes paid related to net share settlement of equity awards	(9,317)	(19,622)	(16,433)
Principal payments of long-term debt	(2,843)	(743)
Payment made for debt refinancing		(2,132)	(3,000)
Cash flows provided by (used in) financing activities	6,765	(1,620)	4,084
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(62,991)	75,466	4,918
CASH AND CASH EQUIVALENTS—Beginning of period	266,762	191,296	186,378
CASH AND CASH EQUIVALENTS—End of period	203,771	266,762	191,296
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Cash paid for interest	13,254	12,526	11,143
Cash paid for taxes	2,508	754	2,992
Non-cash investing and financing activities:
Purchased capital expenditures included in accounts payable and accrued expenses	$ 13,789	$ 11,720	$ 11,151

Property, Plant and Equipment - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Depreciation expense	$ 40.1	$ 38.5	$ 36.5
Furniture, Fixtures and Equipment
Property Plant And Equipment [Line Items]
Carrying value at the time of disposition	$ 0.9	$ 0.5	$ 0.1

Share-based Compensation - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based compensation Expense
Total share-based compensation expense	$ 100,977	$ 105,357	$ 83,917
Cost of goods manufactured and sold
Share-based compensation Expense
Total share-based compensation expense	9,948	9,174	7,596
Research and development
Share-based compensation Expense
Total share-based compensation expense	29,924	32,943	22,635
Selling, general and administrative
Share-based compensation Expense
Total share-based compensation expense	$ 61,105	$ 63,240	$ 53,686

Summary of Significant Accounting Policies - Schedule of Concentration (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Janssen \| Accounts Receivable \| Credit Concentration Risk
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk percentage	29.00%	27.00%	31.00%
Janssen \| Revenues Net \| Customer Concentration Risk
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk percentage	28.00%	29.00%	33.00%
Biogen \| Revenues Net \| Customer Concentration Risk
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk percentage	17.00%	10.00%
Cardinal Health \| Accounts Receivable \| Credit Concentration Risk
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk percentage	12.00%
Cardinal Health \| Revenues Net \| Customer Concentration Risk
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk percentage		13.00%
AmerisourceBergen \| Accounts Receivable \| Credit Concentration Risk
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk percentage	10.00%
Acorda \| Accounts Receivable \| Credit Concentration Risk
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk percentage		15.00%	14.00%
Acorda \| Revenues Net \| Customer Concentration Risk
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk percentage		10.00%	13.00%

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

7. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:

	December 31,			December 31,
(In thousands)	2019			2018
Land	$	6,560		$	6,486
Building and improvements		177,087			157,053
Furniture, fixtures and equipment		340,146			314,831
Leasehold improvements		20,737			20,105
Construction in progress		134,683			88,983
Subtotal		679,213			587,458
Less: accumulated depreciation		(317,045	)		(277,471	)
Total property, plant and equipment, net	$	362,168		$	309,987

Depreciation expense was $40.1 million, $38.5 million and $36.5 million for the years ended December 31, 2019, 2018 and 2017, respectively. Also, during the years ended December 31, 2019, 2018 and 2017, the Company wrote off furniture, fixtures and equipment that had a carrying value of approximately $0.9 million, $0.5 million and $0.1 million, respectively, at the time of disposition.

Amounts included as construction in progress in the consolidated balance sheets primarily include capital expenditures at the Company’s manufacturing facility in Wilmington, Ohio. The Company continues to evaluate its manufacturing capacity based on expectations of demand for its products and will continue to record such amounts within construction in progress until such time as the underlying assets are placed into service. The Company continues to periodically evaluate whether facts and circumstances indicate that the carrying value of its long‑lived assets to be held and used may not be recoverable.

Inventory - Schedule of Inventories (Parenthetical) (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Finished goods inventory located at third-party warehouse and shipping service provider	$ 7.6	$ 11.0

Share-based Compensation - Performance-Based Restricted Stock Units - Additional Information (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) item	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Share-based compensation Expense
Share-based compensation expense		$ 100,977	$ 105,357	$ 83,917
Cost of goods manufactured and sold
Share-based compensation Expense
Share-based compensation expense		9,948	9,174	7,596
Research and development
Share-based compensation Expense
Share-based compensation expense		29,924	32,943	22,635
Selling, general and administrative
Share-based compensation Expense
Share-based compensation expense		$ 61,105	$ 63,240	$ 53,686
Performance-based RSUs
Share-based compensation Expense
Number of Phase 3 studies of ALKS 3831 \| item		2
Number of years from the date of the grant		3 years
Share-based compensation expense	$ 17,100
Expiration period		3 years
Unrecognized compensation cost		$ 29,800
Performance-based RSUs \| Cost of goods manufactured and sold
Share-based compensation Expense
Share-based compensation expense	2,100
Performance-based RSUs \| Research and development
Share-based compensation Expense
Share-based compensation expense	6,700
Performance-based RSUs \| Selling, general and administrative
Share-based compensation Expense
Share-based compensation expense	$ 8,300

Acquisition - Schedule of Assets Acquired, Liabilities Assumed and Amounts Expensed (Details) - Rodin Therapeutics, Inc. $ in Thousands	Nov. 18, 2019 USD ($)
Business Acquisition [Line Items]
Cash	$ 2,658
Prepaid expenses and other current assets	461
Deferred tax assets	11,642
Right-of-use assets	637
Other assets	137
Accounts payable and accrued expenses	(3,364)
Operating lease liabilities—short-term	(400)
Operating lease liabilities—long-term	(237)
Research and development expense	$ 86,594

Share-based Compensation - Stock Options - Additional Information (Details) - Stock options - USD ($) $ / shares in Units, shares in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based compensation Expense
Weighted average grant-date fair value of stock options granted (in dollars per share)	$ 15.57	$ 30.47	$ 25.81
Aggregate intrinsic value of stock options exercised	$ 21,300,000	$ 35,500,000	$ 40,400,000
Stock options expected to vest (in shares)	5.2
Weighted average exercise price (in dollars per share)	$ 42.64
Weighted average contractual remaining life	8 years 6 months
Aggregate intrinsic value of stock options exercisable	$ 12,900,000
Weighted average remaining contractual term of stock options exercisable	4 years 6 months
Unrecognized compensation cost	$ 48,000,000.0
Weighted average period for unrecognized compensation cost expected to be recognized	1 year 10 months 24 days
Cash received from option exercises	$ 18,900,000	$ 20,900,000	$ 23,500,000
Maximum
Share-based compensation Expense
Aggregate intrinsic value	$ 100,000

Summary of Significant Accounting Policies - Summary of Estimated Fair Value of Stock Options (Details) - Performance Based Stock Options - Monte Carlo Simulation Model	12 Months Ended
	Dec. 31, 2019
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Grant Date	Feb. 21, 2019
Weighted-Average Expected Volatility	45.00%
Cost of Equity	12.00%
Risk-Free Interest Rate	2.69%

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of acquired intangible assets	$ 40,358	$ 65,168	$ 62,059
Expected amortization of intangible assets
2020	40,000
2021	40,000
2022	35,000
2023	35,000
2024	$ 1,000

Acquisition

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Acquisition

16. ACQUISITION

On November 18, 2019, the Company entered into a definitive agreement to acquire Rodin, a privately held biopharmaceutical company focused on developing novel, small molecule therapeutics for synaptopathies. The acquisition was completed on November 25, 2019 and, under the terms of the agreement, the Company made an upfront cash payment of $98.1 million to Rodin's security holders and may make up to $850.0 million in future payments, $225.0 million of which are triggered upon achievement by the development candidates acquired in the acquisition of Rodin of certain specified clinical milestones, $300.0 million of which are triggered by the development candidates acquired in the acquisition of Rodin of certain regulatory milestones and $325.0 million of which are triggered upon the attainment of certain sales thresholds.

The Company accounted for the transaction, as an asset acquisition as substantially all of the fair value of Rodin’s gross assets acquired were concentrated in its in-process research and development (“IPR&D”), which is largely in the pre-clinical stage. As the IPR&D was determined to not have an alternative future use, the Company recorded a charge to R&D expense in the accompanying consolidated statements of operations and comprehensive loss of $86.6 million, which was the amount determined to be the relative fair value of the $98.1 million payment attributed to the acquired IPR&D. The Company has not recorded any of the $850.0 million in contingent consideration as a liability in the accompanying consolidated balance sheet as none of the future events which would trigger a milestone payment are considered probable of occurring at December 31, 2019.

The following were the amounts allocated to the assets acquired, liabilities assumed and amounts expensed at the acquisition date based on their respective fair values:

(In thousands)
Cash	2,658
Prepaid expenses and other current assets	461
Deferred tax assets	11,642
Right-of-use assets	637
Other assets	137
Accounts payable and accrued expenses	(3,364	)
Operating lease liabilities—short-term	(400	)
Operating lease liabilities—long-term	(237	)
Research and development expense	86,594

Summary of Significant Accounting Policies - Schedule of Property, Plant and Equipment (Details)	12 Months Ended
	Dec. 31, 2019
Buildings and improvements \| Minimum
Property Plant And Equipment [Line Items]
Estimated useful life	15 years
Buildings and improvements \| Maximum
Property Plant And Equipment [Line Items]
Estimated useful life	40 years
Furniture, fixtures and equipment \| Minimum
Property Plant And Equipment [Line Items]
Estimated useful life	3 years
Furniture, fixtures and equipment \| Maximum
Property Plant And Equipment [Line Items]
Estimated useful life	10 years
Leasehold improvements
Property Plant And Equipment [Line Items]
Estimated useful life	Shorter of useful life or lease term

Property, Plant and Equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Property, plant and equipment
Property, plant and equipment, gross	$ 679,213	$ 587,458
Less: accumulated depreciation	(317,045)	(277,471)
Total property, plant and equipment, net	362,168	309,987
Land
Property, plant and equipment
Property, plant and equipment, gross	6,560	6,486
Building and Improvements
Property, plant and equipment
Property, plant and equipment, gross	177,087	157,053
Furniture, Fixtures and Equipment
Property, plant and equipment
Property, plant and equipment, gross	340,146	314,831
Leasehold Improvements
Property, plant and equipment
Property, plant and equipment, gross	20,737	20,105
Construction in Progress
Property, plant and equipment
Property, plant and equipment, gross	$ 134,683	$ 88,983

Restructuring

12 Months Ended

Dec. 31, 2019

Restructuring And Related Activities [Abstract]

Restructuring

15. RESTRUCTURING

On October 18, 2019, the Company approved a restructuring plan following a review of its operations, cost structure and growth opportunities (the “Restructuring”). The Restructuring included a reduction in headcount of approximately 160 employees across the Company. The Company recorded a charge of $13.4 million in the fourth quarter of 2019 as a result of the Restructuring, which consisted of one-time termination benefits for employee severance, benefits and related costs, all of which are expected to result in cash expenditures and substantially all of which will be paid out over the next 12 months. Restructuring activity during the year ended December 31, 2019 was as follows:

(In thousands)
Balance, January 1, 2019	$	—
Restructuring charge		13,401
Amounts paid during the period:
Severance		(3,621	)
Outplacement services		(398	)
Benefits		(181	)
Balance, December 31, 2019	$	9,201

At December 31, 2019, $9.0 million and $0.2 million of the restructuring accrual were included within “Accounts payable and accrued expenses” and “Other long-term liabilities” in the accompanying consolidated balance sheets, respectively.

Summary of Significant Accounting Policies - Schedule of Concentration Parenthetical (Details) - Customer Concentration Risk - Minimum	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues Net
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk percentage	10.00%	10.00%	10.00%
Accounts Receivable
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Concentration risk percentage	10.00%	10.00%	10.00%

Revenue from Contracts with Customers - Schedule of Manufacturing and Royalty Revenues (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation Of Revenue [Line Items]
Total revenues	$ 1,170,947	$ 1,094,274	$ 903,374
Manufacturing Revenue
Disaggregation Of Revenue [Line Items]
Total revenues	104,254	133,028	152,821
Manufacturing Revenue \| RISPERDAL CONSTA
Disaggregation Of Revenue [Line Items]
Total revenues	50,433	52,770	64,793
Manufacturing Revenue \| AMPYRA/FAMPYRA
Disaggregation Of Revenue [Line Items]
Total revenues	22,071	53,044	55,373
Manufacturing Revenue \| Other
Disaggregation Of Revenue [Line Items]
Total revenues	31,750	27,214	32,655
Royalty
Disaggregation Of Revenue [Line Items]
Total revenues	343,628	393,647	352,487
Royalty \| INVEGA SUSTENNA/XEPLION & INVEGA TRINZA/TREVICTA
Disaggregation Of Revenue [Line Items]
Total revenues	256,947	241,423	214,931
Royalty \| RISPERDAL CONSTA
Disaggregation Of Revenue [Line Items]
Total revenues	15,950	18,352	20,129
Royalty \| AMPYRA/FAMPYRA
Disaggregation Of Revenue [Line Items]
Total revenues	15,170	54,009	61,646
Royalty \| Other
Disaggregation Of Revenue [Line Items]
Total revenues	55,561	79,863	55,781
Manufacturing and royalty revenues
Disaggregation Of Revenue [Line Items]
Total revenues	447,882	526,675	505,308
Manufacturing and royalty revenues \| INVEGA SUSTENNA/XEPLION & INVEGA TRINZA/TREVICTA
Disaggregation Of Revenue [Line Items]
Total revenues	256,947	241,423	214,931
Manufacturing and royalty revenues \| RISPERDAL CONSTA
Disaggregation Of Revenue [Line Items]
Total revenues	66,383	71,122	84,922
Manufacturing and royalty revenues \| AMPYRA/FAMPYRA
Disaggregation Of Revenue [Line Items]
Total revenues	37,241	107,053	117,019
Manufacturing and royalty revenues \| Other
Disaggregation Of Revenue [Line Items]
Total revenues	$ 87,311	$ 107,077	$ 88,436

Income Taxes - Schedule of Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
NOL carryforwards	$ 227,872	$ 198,633
Tax credits	57,385	52,395
Share-based compensation	45,214	44,873
Accrued expenses and reserves	20,337	15,892
Other	8,756	8,669
Less: valuation allowance	(242,059)	(219,093)	$ (172,797)	$ (141,859)
Total deferred tax assets	117,505	101,369
Deferred tax liabilities:
Property, plant and equipment	(19,926)	(14,533)
Other	(1,590)	(1,274)
Total deferred tax liabilities	(21,516)	(15,807)
Net deferred tax assets	$ 95,989	$ 85,562

Revenue from Contracts with Customers - Additional Information (Details) $ in Thousands	1 Months Ended					3 Months Ended	12 Months Ended
	Dec. 31, 2019 USD ($)	Nov. 30, 2019 USD ($)	Oct. 31, 2019	Jun. 30, 2018 USD ($)	Nov. 30, 2017 USD ($) item	Dec. 31, 2019 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Disaggregation Of Revenue [Line Items]
Total revenues								$ 1,170,947	$ 1,094,274	$ 903,374
License revenue
Disaggregation Of Revenue [Line Items]
Total revenues								145,750	48,370	28,000
Research and development revenue
Disaggregation Of Revenue [Line Items]
Total revenues								$ 52,816	$ 68,895	$ 7,232
Biogen
Disaggregation Of Revenue [Line Items]
Up-front payment received					$ 28,000
Additional cash payment received		$ 150,000		$ 50,000
Number of initial performance obligations \| item					4
Discount Rate (As a percent)					8.00%
Biogen \| License revenue
Disaggregation Of Revenue [Line Items]
Total revenues		144,800		48,300	$ 27,000
Biogen \| Research and development revenue
Disaggregation Of Revenue [Line Items]
Total revenues		5,200		1,500	900
Biogen \| Research and development revenue \| Forecast
Disaggregation Of Revenue [Line Items]
Additional revenue expected							$ 300
Biogen \| Clinical Supply
Disaggregation Of Revenue [Line Items]
Total revenues				200	100
Biogen \| License
Disaggregation Of Revenue [Line Items]
Total revenues	$ 5,000	$ 150,000		$ 50,000	$ 28,000
Percentage of net sales in royalty payment								15.00%
Biogen \| License \| Commercial Supply Agreements
Disaggregation Of Revenue [Line Items]
Maximum percentage of product supplies on net sales			100.00%
Milestone payments received						$ 5,800
Milestone payments receivable	$ 5,000					$ 5,000		$ 5,000

Summary of Significant Accounting Policies - Schedule of Balance Sheet Accounts Impacted for Topic 606 (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Jan. 01, 2018
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Contract assets	$ 8,386	$ 8,230
Inventory	101,803	90,196
Deferred tax asset	96,558	85,807
Contract liabilities—short-term	6,766	3,169
Contract liabilities—long-term	22,068	9,525
Accumulated deficit	$ (1,381,988)	$ (1,185,368)
ASU 2014-09 \| Adjustment
Revenue Initial Application Period Cumulative Effect Transition [Line Items]
Contract assets			$ 9,110
Inventory			(8,209)
Deferred tax asset			109
Contract liabilities—short-term			(1,104)
Contract liabilities—long-term			(724)
Accumulated deficit			$ 818

Fair Value - Additional Information (Details)		1 Months Ended		12 Months Ended
Fair Value - Additional Information (Details)	Dec. 20, 2018 USD ($) Milestone	Apr. 30, 2019 USD ($)	Jan. 31, 2019 USD ($)	Dec. 31, 2019 USD ($) item	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($)	Apr. 23, 2019 USD ($)	Dec. 19, 2018 USD ($)	Apr. 10, 2015 shares	Apr. 09, 2015 $ / shares
Fair Value
Number of investments transferred from level 1 to level 2 \| item				0
Number of investments transferred from level 2 to level 1 \| item				0
Milestone payment due upon approval of NDA								$ 45,000,000.0
Milestone payment due within 30 days	$ 5,000,000.0
Milestone payment due							$ 5,000,000.0
Milestone payment due within 180 days	5,000,000.0
Milestone additional payment approval of NDA	$ 45,000,000.0
Number of milestone payment upon approval of NDA \| Milestone	7
Milestone annual payment	$ 6,400,000
Milestone payments received		$ 5,000,000.0	$ 5,000,000.0
Contingent consideration				$ 32,400,000	$ 65,200,000
(Decrease) increase in the fair value of contingent consideration				(22,800,000)	(19,600,000)	$ 21,600,000
2023 Term Loan
Fair Value
Amount to be realized in future				277,900,000	$ 274,700,000
Warrants
Fair Value
Proceeds from the sale of warrants				3,000,000.0
Recro
Fair Value
Warrants purchase under amendments \| shares									350,000
Warrant strike price \| $ / shares					$ 8.26					$ 19.46
Maximum \| Recro
Fair Value
Milestone payment receivable				80,000,000.0
Other (Expense) Income, Net
Fair Value
Increase (decrease) in fair value of warrants					$ (200,000)
Warrants realized gain losses				$ 900,000
Other (Expense) Income, Net \| Maximum
Fair Value
Increase (decrease) in fair value of warrants						$ 100,000
Discount Rate \| Future royalties
Fair Value
Discount rate (as a percent) \| item				16.0
Discount Rate \| Real options approach
Fair Value
Discount rate (as a percent) \| item				16.0

Accounts Payable and Accrued Expenses - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Payables And Accruals [Abstract]
Accounts payable	$ 54,261	$ 39,767
Accrued compensation	72,072	67,613
Accrued sales discounts, allowances and reserves	153,902	152,911
Accrued other	92,802	73,471
Total accounts payable and accrued expenses	$ 373,037	$ 333,762

Accounts Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2019

Payables And Accruals [Abstract]

Accounts Payable and Accrued Expenses

10. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following:

	December 31,		December 31,
(In thousands)	2019		2018
Accounts payable	$	54,261	$	39,767
Accrued compensation		72,072		67,613
Accrued sales discounts, allowances and reserves		153,902		152,911
Accrued other		92,802		73,471
Total accounts payable and accrued expenses	$	373,037	$	333,762

Share-based Compensation - Summary of RSU Activity (Details) - Time-vested RSUs - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Number of Shares
Unvested at the beginning of the period (in shares)	2,266,286
Granted (in shares)	2,826,092
Vested (in shares)	(791,484)
Forfeited (in shares)	(556,094)
Unvested at the end of the period (in shares)	3,744,800	2,266,286
Weighted Average Grant Date Fair Value
Unvested at the beginning of the period (in dollars per share)	$ 55.32
Granted (in dollars per share)	30.47	$ 63.01	$ 54.85
Vested (in dollars per share)	53.62
Forfeited (in dollars per share)	41.44
Unvested at the end of the period (in dollars per share)	$ 38.99	$ 55.32

Summary of Significant Accounting Policies - Schedule of Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Contract Asset [Abstract]
Contract assets	$ 13,386	$ 8,230	$ 9,110
Additions	37,911	57,617
Transferred to receivables, net	(32,755)	(58,497)
Contract Liabilities [Abstract]
Contract liabilities at beginning of the period	12,694	9,442
Additions	18,677	6,381
Amounts recognized into revenue	(2,537)	(3,129)
Contract liabilities at end of the period	$ 28,834	$ 12,694

Restructuring - Additional Information (Details) $ in Thousands		12 Months Ended
	Oct. 18, 2019 USD ($) Position	Dec. 31, 2019 USD ($)
Restructuring Cost And Reserve [Line Items]
Restructuring and related activities, initiation date	Oct. 18, 2019
Expected number of positions eliminated \| Position	160
Restructuring and related charges	$ 13,400	$ 13,401
Restructuring and related activities description		The Company recorded a charge of $13.4 million in the fourth quarter of 2019 as a result of the Restructuring, which consisted of one-time termination benefits for employee severance, benefits and related costs, all of which are expected to result in cash expenditures and substantially all of which will be paid out over the next 12 months.
Restructuring accrual		$ 9,201
Accounts payable and accrued expenses
Restructuring Cost And Reserve [Line Items]
Restructuring accrual		9,000
Other long-term liabilities
Restructuring Cost And Reserve [Line Items]
Restructuring accrual		$ 200

Income Taxes - Schedule of (Loss) Income Before Provision for Income Taxes by Geographical Area (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Distribution of income (loss) before provision for income taxes
(Loss) Gain before (benefit) provision for income taxes	$ (197,056)	$ (126,967)	$ (143,274)
Ireland
Distribution of income (loss) before provision for income taxes
(Loss) Gain before (benefit) provision for income taxes	(141,869)	(180,195)	(172,363)
U.S.
Distribution of income (loss) before provision for income taxes
(Loss) Gain before (benefit) provision for income taxes	(55,102)	53,287	2,414
Rest of world
Distribution of income (loss) before provision for income taxes
(Loss) Gain before (benefit) provision for income taxes	$ (85)	$ (59)	$ 26,675

Fair Value

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value

5. FAIR VALUE

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis and indicates the fair value hierarchy and the valuation techniques the Company utilized to determine such fair value:

	December 31,
(In thousands)	2019		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	8,064	$	8,064	$	—	$	—
U.S. government and agency debt securities		117,376		73,795		43,581		—
Corporate debt securities		195,855		—		193,902		1,953
International government agency debt securities		93,779		—		93,779		—
Contingent consideration		32,400		—		—		32,400
Total	$	447,474	$	81,859	$	331,262	$	34,353

	December 31,
	2018		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	54,590	$	54,590	$	—	$	—
U.S. government and agency debt securities		98,513		60,107		38,406		—
Corporate debt securities		173,637		—		173,145		492
International government agency debt securities		77,504		—		77,504		—
Contingent consideration		65,200		—		—		65,200
Common stock warrants		1,205		—		—		1,205
Total	$	470,649	$	114,697	$	289,055	$	66,897

The Company transfers its financial assets and liabilities, measured at fair value on a recurring basis, between the fair value hierarchies at the end of each reporting period.

There were no transfers of any securities from Level 1 to Level 2 or from Level 2 to Level 1 during the year ended December 31, 2019. The following table is a rollforward of the fair value of the Company’s investments whose fair value was determined using Level 3 inputs at December 31, 2019:

(In thousands)	Fair Value
Balance, January 1, 2019	$	66,897
Purchase of corporate debt security		1,953
Change in the fair value of warrants		1,837
Change in the fair value of contingent consideration		(22,800	)
Payments received from contingent consideration		(10,000	)
Proceeds from the sale of shares acquired upon exercise of warrants		(3,042	)
Impairment of corporate debt security		(492	)
Balance, December 31, 2019	$	34,353

The Company’s investments in U.S. government and agency debt securities, international government agency debt securities and corporate debt securities classified as Level 2 within the fair value hierarchy were initially valued at the transaction price and subsequently valued, at the end of each reporting period, utilizing market-observable data. The market-observable data included reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events. The Company validated the prices developed using the market-observable data by obtaining market values from other pricing sources, analyzing pricing data in certain instances and confirming that the relevant markets are active.

In April 2015, the Company completed the sale of its Gainesville, GA manufacturing facility, the related manufacturing and royalty revenue associated with certain products manufactured at the facility, and the rights to IV/IM and parenteral forms of Meloxicam. On December 20, 2018, the Company entered into a Second Amendment to the Purchase and Sale Agreement (“Purchase and Sale Agreement Amendment”) dated March 7, 2015 with Recro and Recro Gainesville LLC and a Second Amendment to the Asset Transfer and License Agreement dated April 10, 2015 with Recro Gainesville LLC (the “License Agreement Amendment” and, together with the Purchase and Sale Agreement Amendment, the “Amendments”).

Under the terms of the Amendments, the milestone payment of $45.0 million previously due to the Company upon approval of an NDA for IV/IM and parenteral forms of Meloxicam or any other product with the same active ingredient as Meloxicam IV/IM that is discovered or identified using certain of the Company’s IP to which Recro was provided a right of use, through license or transfer (the “Meloxicam Product(s)”) was amended and replaced with (i) a $5.0 million payment due within 30 days of signing of the Amendments; (ii) a $5.0 million payment due by April 23, 2019; (iii) a $5.0 million payment due within 180 days following approval of an NDA for injectable Meloxicam; and (iv) an additional $45.0 million following approval of an NDA for Meloxicam Product(s), payable in seven equal annual payments of approximately $6.4 million beginning on the first anniversary of such approval.

At December 31, 2019, the Company determined the value of the contingent consideration receivable using the following valuation approaches:

•

Based upon the terms of the Amendments, the fair value of the regulatory milestone was estimated based on the likelihood of achieving this regulatory milestone and applying a discount rate from the expected time the milestone occurs to the balance sheet date. The Company received the first $5.0 million milestone payment in January 2019 and received the second $5.0 million in April 2019. Additionally, the Company expects the regulatory milestone event to occur in the first quarter of 2020 and to receive milestone payments on the subsequent seven anniversary years thereafter. A discount rate of 16.0% was utilized in this analysis;

•

The Company is entitled to receive future royalties on net sales of Meloxicam Products. To estimate the fair value of the future royalties, the Company assessed the likelihood of a Meloxicam Product being approved for sale and estimated the expected future sales of such Meloxicam Product assuming approval and IP protection. The Company then discounted these expected payments using a discount rate of 16.0%, which it believes captures a market participant’s view of the risk associated with the expected payments; and

•

The Company is entitled to receive payments of up to $80.0 million upon achieving certain sales milestones on future sales of the Meloxicam Products. The fair value of the sales milestones was determined through the use of a real options approach, where net sales are simulated in a risk-neutral world. To employ this methodology, the Company used a risk-adjusted expected growth rate based on its assessments of expected growth in net sales of the approved Meloxicam Product, adjusted by an appropriate factor capturing their respective correlation with the market. A resulting expected (probability-weighted) milestone payment was then discounted at a cost of debt, which was 16.0%.

At December 31, 2019 and 2018, the Company determined that the value of the contingent consideration was $32.4 million and $65.2 million, respectively. The Company recorded a decrease of $22.8 million and $19.6 million and an increase of $21.6 million during the years ended December 31, 2019, 2018 and 2017, respectively, within “Change in the fair value of contingent consideration” in the accompanying consolidated statements of operations and comprehensive loss.

In November 2019, Recro completed a spin out of its acute care segment, Baudax Bio, Inc. (“Baudax”), a publicly traded pharmaceutical company. As part of this transaction, Recro’s obligations to pay certain of the contingent consideration from the Gainesville Transaction were assigned and/or transferred to Baudax.

In addition to the signing of the Amendments, as described above, on December 20, 2018, the Company and Recro entered into a First Amendment to the Warrant to Purchase Stock (the “Warrant Amendment”), pursuant to which the exercise price of the warrant to purchase 350,000 shares of Recro’s common stock, was decreased to a per share exercise price of $8.26 from $19.46, subject to adjustment as set forth therein. In November 2019, the Company elected to convert those warrants into shares and sell those shares. The Company sold the shares for $3.0 million and recorded a realized gain of $0.9 million within “Other (expense) income, net” in the accompanying consolidated statement of operations and comprehensive loss during the year ended December 31, 2019. During the years ended December 31, 2018 and 2017, the Company recorded a decrease of $0.2 million and an increase of less than $0.1 million, respectively, in the fair value of the warrants. These changes were recorded within “Other (expense) income, net” in the accompanying consolidated statements of operations and comprehensive loss.

The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable, contract assets, other current assets, accounts payable and accrued expenses approximate fair value due to their short-term nature.

The estimated fair value of the Company’s long-term debt under the 2023 Term Loans, which was based on quoted market price indications (Level 2 in the fair value hierarchy) and which may not be representative of actual values that could have been, or will be, realized in the future, was $277.9 million and $274.7 million at December 31, 2019 and 2018, respectively. Please refer to Note 11, Long-Term Debt within these “Notes to Consolidated Financial Statements” in this Annual Report.

- 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.

+ References + Details

Restructuring - Schedule of Restructuring Activity (Details) - USD ($) $ in Thousands		12 Months Ended
	Oct. 18, 2019	Dec. 31, 2019
Restructuring And Related Activities [Abstract]
Restructuring expense	$ 13,400	$ 13,401
Amounts paid during the period:
Severance		(3,621)
Outplacement services		(398)
Benefits		(181)
Balance, December 31, 2019		$ 9,201

Share-based Compensation - Schedule of Stock Option Activity (Details) - Stock options	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Number of Shares
Outstanding at the beginning of the period (in shares) \| shares	14,852,457
Granted (in shares) \| shares	3,812,103
Exercised (in shares) \| shares	(1,515,957)
Expired (in shares) \| shares	(1,104,967)
Forfeited (in shares) \| shares	(807,791)
Outstanding at the end of the period (in shares) \| shares	15,235,845
Exercisable at the end of the period (in shares) \| shares	9,874,065
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares	$ 40.48
Granted (in dollars per share) \| $ / shares	31.49
Exercised (in dollars per share) \| $ / shares	12.55
Expired (in dollars per share) \| $ / shares	48.42
Forfeited (in dollars per share) \| $ / shares	42.32
Outstanding at the end of the period (in dollars per share) \| $ / shares	40.34
Exercisable at the end of the period (in dollars per share) \| $ / shares	$ 39.15

Shareholders' Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Shareholders' Equity

13. SHAREHOLDERS’ EQUITY

Share Repurchase Program

On September 16, 2011, the board of directors authorized the continuation of the Alkermes, Inc. share repurchase program to repurchase up to $215.0 million of the Company’s ordinary shares at the discretion of management from time to time in the open market or through privately negotiated transactions. At December 31, 2019, approximately $101.0 million was available to repurchase ordinary shares pursuant to the repurchase program. All shares repurchased are recorded as treasury stock. The repurchase program has no set expiration date and may be suspended or discontinued at any time. During the years ended December 31, 2019 and 2018, the Company did not acquire any ordinary shares under the repurchase program.

Collaborative Arrangements - Significant collaborative arrangements (Details)	1 Months Ended					12 Months Ended
	Dec. 31, 2019 USD ($)	Nov. 30, 2019 USD ($)	Oct. 31, 2019	Jun. 30, 2018 USD ($)	Nov. 30, 2017 USD ($)	Dec. 31, 2019 USD ($) Agreement	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Cash payments received						$ 1,170,947,000	$ 1,094,274,000	$ 903,374,000
VUMERITY
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Percentage of net sales in royalty payment						15.00%
Maximum percentage of product supplies on net sales			100.00%
Biogen
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Payment received upon the initiation of phase 3 clinical trial					$ 50,000,000.0
Biogen \| License
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Cash payments received	$ 5,000,000.0	$ 150,000,000.0		$ 50,000,000.0	$ 28,000,000.0
Percentage of net sales in royalty payment						15.00%
License agreement \| Janssen \| INVEGA SUSTENNA/XEPLION
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Patent royalty rate (as a percent)						1.50%
Know-how royalty rate resets (as a percent)						3.50%
Period after the date of the first commercial sale of the product for license expiration						15 years
License agreement \| Janssen \| INVEGA SUSTENNA/XEPLION \| Net sales of below $250.0 million
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Know-how royalty rate (as a percent)						3.50%
License agreement \| Janssen \| INVEGA SUSTENNA/XEPLION \| Net sales between $250.0 million and 500.0 million
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Know-how royalty rate (as a percent)						5.50%
License agreement \| Janssen \| INVEGA SUSTENNA/XEPLION \| Net sales greater than $500.0 million
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Know-how royalty rate (as a percent)						7.50%
License agreement \| Janssen \| INVEGA SUSTENNA/XEPLION \| Minimum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Royalty rate (as a percent)						5.00%
License agreement \| Janssen \| INVEGA SUSTENNA/XEPLION \| Minimum \| Net sales between $250.0 million and 500.0 million
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Aggregate worldwide net sales						$ 250,000,000
License agreement \| Janssen \| INVEGA SUSTENNA/XEPLION \| Minimum \| Net sales greater than $500.0 million
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Aggregate worldwide net sales						$ 500,000,000
License agreement \| Janssen \| INVEGA SUSTENNA/XEPLION \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Royalty rate (as a percent)						9.00%
License agreement \| Janssen \| INVEGA SUSTENNA/XEPLION \| Maximum \| Net sales of below $250.0 million
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Aggregate worldwide net sales						$ 250,000,000
License agreement \| Janssen \| INVEGA SUSTENNA/XEPLION \| Maximum \| Net sales between $250.0 million and 500.0 million
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Aggregate worldwide net sales						$ 500,000,000
License agreement \| Janssen \| RISPERDAL CONSTA
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Royalty rate (as a percent)						2.50%
Period after the date of the first commercial sale of the product for license expiration						15 years
Number of license agreements \| Agreement						2
Notice period required to be given before termination of agreement						30 days
Period for resolving default or breach after the receipt of notice for termination of agreement						90 days
License agreement \| Acorda
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Milestone payment entitled to be received upon the initiation of phase 3 clinical trial	1,000,000.0					$ 1,000,000.0
Milestone payment entitled to be received upon the acceptance of NDA by the FDA	1,000,000.0					1,000,000.0
Milestone payment entitled to be received upon the approval of NDA by the FDA	1,500,000					1,500,000
Milestone payment entitled to be received upon the first commercial sale	$ 1,500,000					$ 1,500,000
License agreement \| Acorda \| AMPYRA/ FAMPYRA
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Royalty rate (as a percent)						10.00%
Notice period required to be given before termination of agreement						90 days
Manufacturing and supply agreement \| Janssen \| RISPERDAL CONSTA
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Period after the date of the first commercial sale of the product for license expiration						60 days
Notice period required to be given before termination of agreement						6 months
Manufacturing and supply agreement \| Janssen \| RISPERDAL CONSTA \| Minimum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Royalty rate (as a percent)						7.50%
Royalty rate upon termination of manufacturing and supply agreement (as a percent)						2.50%
Manufacturing and supply agreement \| Janssen \| RISPERDAL CONSTA \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Royalty rate upon termination of manufacturing and supply agreement (as a percent)						5.00%
Manufacturing and supply agreement \| Acorda \| AMPYRA/ FAMPYRA
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Royalty rate (as a percent)						8.00%
Notice period required to be given before termination of agreement						12 months
Manufacturing and supply agreement \| Acorda \| AMPYRA/ FAMPYRA \| Maximum
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Percentage of total annual requirement of product that can be obtained from second source manufacturer						25.00%

Inventory

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Inventory

6. INVENTORY

Inventory consists of the following:

	December 31,		December 31,
(In thousands)	2019		2018
Raw materials	$	34,577	$	31,824
Work in process		54,061		38,019
Finished goods⁽¹⁾		13,165		20,353
Total inventory	$	101,803	$	90,196

(1)	At December 31, 2019 and 2018, the Company had $7.6 million and $11.0 million, respectively, of finished goods inventory located at its third‑party warehouse and shipping service provider.

Loss Per Share - Schedule of Anti-Dilutive Potential Common Equivalent Shares Excluded from Calculation of Net (Loss) Income Per Share (Details) - shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Denominator:
Anti-dilutive potential common equivalent shares excluded from calculation of net loss per ordinary share	16,991	13,923	11,659
Stock Options
Denominator:
Anti-dilutive potential common equivalent shares excluded from calculation of net loss per ordinary share	13,814	11,331	9,540
Restricted Stock Units
Denominator:
Anti-dilutive potential common equivalent shares excluded from calculation of net loss per ordinary share	3,177	2,592	2,119

Revenue from Contracts with Customers - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Disaggregation Of Revenue [Line Items]
Total revenues	$ 1,170,947	$ 1,094,274	$ 903,374
VIVITROL
Disaggregation Of Revenue [Line Items]
Total revenues	335,365	302,609	269,321
ARISTADA/ARISTADA INITIO
Disaggregation Of Revenue [Line Items]
Total revenues	189,134	147,725	93,513
Product sales, net
Disaggregation Of Revenue [Line Items]
Total revenues	$ 524,499	$ 450,334	$ 362,834

Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Schedule of Anti-Dilutive Potential Common Equivalent Shares Excluded from Calculation of Net (Loss) Income Per Share

The following potential ordinary equivalent shares were not included in the net loss per ordinary share calculation because the effect would have been anti-dilutive:

	Year Ended December 31,
(In thousands)	2019		2018		2017
Stock options		13,814		11,331		9,540
Restricted stock units		3,177		2,592		2,119
Total		16,991		13,923		11,659

Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property Plant And Equipment [Abstract]

Schedule of Property, Plant and Equipment

Property, plant and equipment consist of the following:

	December 31,			December 31,
(In thousands)	2019			2018
Land	$	6,560		$	6,486
Building and improvements		177,087			157,053
Furniture, fixtures and equipment		340,146			314,831
Leasehold improvements		20,737			20,105
Construction in progress		134,683			88,983
Subtotal		679,213			587,458
Less: accumulated depreciation		(317,045	)		(277,471	)
Total property, plant and equipment, net	$	362,168		$	309,987

Share-based Compensation - Time Vested Restricted Stock Units - Additional Information (Details) - Time-vested RSUs - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based compensation Expense
Granted (in dollars per share)	$ 30.47	$ 63.01	$ 54.85
Fair value of RSU's vested	$ 42.4	$ 34.5	$ 31.5
Unrecognized compensation cost	$ 66.6
Weighted average period for unrecognized compensation cost expected to be recognized	1 year 10 months 24 days

Commitments and Contingent Liabilities - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019 USD ($) Notice Filer
Commitments And Contingencies [Line Items]
Potential losses from claims, legal proceedings probable of occurring	$ 0
Number of separate Paragraph IV notices received \| Notice	11
Maximum number of days for lawsuit	45 days
Minimum number of months before FDA can approve patent request	30 months
Number of ANDA Filers consolidated to a single case \| Filer	8
Non-Capital Commitments
Commitments And Contingencies [Line Items]
Open purchase order commitments	$ 395,300,000
Capital Commitments
Commitments And Contingencies [Line Items]
Open purchase order commitments	$ 33,500,000

Income Taxes - Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate (Parenthetical) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of effective income tax rate
Federal tax law change			$ 21,453
Statutory tax rate (as a percent)	12.50%	12.50%	12.50%
U.S. federal
Reconciliation of effective income tax rate
Federal tax law change			$ 21,500
Statutory tax rate (as a percent)		21.00%	35.00%

Restructuring (Tables)

12 Months Ended

Dec. 31, 2019

Restructuring And Related Activities [Abstract]

Schedule of Restructuring Activity

Restructuring activity during the year ended December 31, 2019 was as follows:

(In thousands)
Balance, January 1, 2019	$	—
Restructuring charge		13,401
Amounts paid during the period:
Severance		(3,621	)
Outplacement services		(398	)
Benefits		(181	)
Balance, December 31, 2019	$	9,201

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2019	Feb. 04, 2020	Jun. 30, 2019
Cover [Abstract]
Entity Registrant Name	Alkermes plc.
Entity Central Index Key	0001520262
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 3,507,584,798
Entity Common Stock, Shares Outstanding		157,787,433
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Trading Symbol	ALKS
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity File Number	001-35299
Entity Incorporation, State or Country Code	L2
Entity Tax Identification Number	98-1007018
Entity Address, Address Line One	Connaught House
Entity Address, Address Line Two	1 Burlington Road
Entity Address, City or Town	Dublin 4
Entity Address, Country	IE
Entity Address, Postal Zip Code	D04 C5Y6
City Area Code	353
Local Phone Number	1-772-8000
Document Annual Report	true
Document Transition Report	false
Title of 12(b) Security	Ordinary shares, $0.01 par value
Security Exchange Name	NASDAQ
Documents Incorporated by Reference	Portions of the definitive proxy statement for our 2020 Annual General Meeting of Shareholders are incorporated by reference into Part III of this report.

Investments (Tables)

12 Months Ended

Dec. 31, 2019

Investments Debt And Equity Securities [Abstract]

Schedule of Investments

Investments consist of the following:

			Gross Unrealized
					Losses
	Amortized				Less than			Greater than			Estimated
December 31, 2019	Cost		Gains		One Year			One Year			Fair Value
Short-term investments:
Available-for-sale securities:
Corporate debt securities	$	144,161	$	676	$	—		$	—		$	144,837
U.S. government and agency debt securities		112,948		434		(1	)		(1	)		113,380
International government agency debt securities		72,753		248		(10	)		—			72,991
Total short-term investments		329,862		1,358		(11	)		(1	)		331,208
Long-term investments:
Available-for-sale securities:
Corporate debt securities		51,070		—		(45	)		(7	)		51,018
International government agency debt securities		20,806		—		(18	)		—			20,788
U.S. government and agency debt securities		4,000		—		(4	)		—			3,996
		75,876		—		(67	)		(7	)	$	75,802
Held-to-maturity securities:
Certificates of deposit		1,820		—		—			—			1,820
Fixed term deposit account		1,667		102		—			—			1,769
		3,487		102		—			—			3,589
Total long-term investments		79,363		102		(67	)		(7	)		79,391
Total investments	$	409,225	$	1,460	$	(78	)	$	(8	)	$	410,599

December 31, 2018
Short-term investments:
Available-for-sale securities:
Corporate debt securities	$	120,197	$	57	$	(62	)	$	(274	)	$	119,918
U.S. government and agency debt securities		80,055		115		(11	)		(87	)		80,072
International government agency debt securities		72,091		85		(8	)		(117	)		72,051
		272,343		257		(81	)		(478	)		272,041
Held-to-maturity securities:
Corporate debt securities		492		—		—			—			492
Total short-term investments		272,835		257		(81	)		(478	)		272,533
Long-term investments:
Available-for-sale securities:
Corporate debt securities		53,505		—		(185	)		(93	)	$	53,227
U.S. government and agency debt securities		18,474		—		(21	)		(12	)		18,441
International government agency debt securities		5,457		—		(4	)		—			5,453
		77,436		—		(210	)		(105	)		77,121
Held-to-maturity securities:
Certificates of deposit		1,820		—		—			—			1,820
Fixed term deposit account		1,667		136		—			—			1,803
		3,487		136		—			—			3,623
Total long-term investments		80,923		136		(210	)		(105	)		80,744
Total investments	$	353,758	$	393	$	(291	)	$	(583	)	$	353,277

Schedule of Proceeds From Sales and Maturities of Marketable Securities Plus Resulting Realized Gains and Losses

Realized gains and losses on the sales and maturities of marketable securities, which were identified using the specific identification method, were as follows:

	Year Ended December 31,
(In thousands)	2019		2018		2017
Proceeds from the sales and maturities of marketable securities	$	224,602	$	444,456	$	464,494
Realized gains	$	997	$	4	$	9
Realized losses	$	497	$	268	$	3

Schedule of Contractual Maturities of Available-for-Sale and Held-to-Maturity Securities

The Company’s available‑for‑sale and held‑to‑maturity securities at December 31, 2019 had contractual maturities in the following periods:

	Available-for-sale				Held-to-maturity
	Amortized		Estimated		Amortized		Estimated
(In thousands)	Cost		Fair Value		Cost		Fair Value
Within 1 year	$	216,084	$	216,764	$	1,820	$	1,820
After 1 year through 5 years		189,654		190,246		1,667		1,769
Total	$	405,738	$	407,010	$	3,487	$	3,589

Loss Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Loss Per Share

12. LOSS PER SHARE

Basic loss per ordinary share is calculated based upon net loss available to holders of ordinary shares divided by the weighted average number of shares outstanding. For the years ended December 31, 2019, 2018 and 2017, as the Company was in a net loss position, the diluted loss per share did not assume conversion or exercise of stock options and awards as they would have an anti-dilutive effect on loss per share.

The following potential ordinary equivalent shares were not included in the net loss per ordinary share calculation because the effect would have been anti-dilutive:

	Year Ended December 31,
(In thousands)	2019		2018		2017
Stock options		13,814		11,331		9,540
Restricted stock units		3,177		2,592		2,119
Total		16,991		13,923		11,659

Shareholders' Equity - Additional Information (Details) - USD ($)	Dec. 31, 2019	Sep. 16, 2011
Equity [Abstract]
Value of shares authorized under repurchase program		$ 215,000,000.0
Value of shares available for repurchase pursuant to repurchase program	$ 101,000,000.0

Income Taxes - Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Balance at the beginning of the period	$ 6,081	$ 5,518	$ 4,688
Reductions based on tax positions related to prior periods			(47)
Additions based on tax positions related to prior periods	38	4
Additions based on tax positions related to the current period	738	559	877
Balance at the end of the period	$ 6,857	$ 6,081	$ 5,518

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement Of Financial Position [Abstract]
Preferred stock shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock shares, authorized	50,000,000	50,000,000
Preferred stock shares, issued	0	0
Preferred stock shares, outstanding	0	0
Ordinary shares, par value (in dollars per share)	$ 0.01	$ 0.01
Ordinary shares, shares authorized	450,000,000	450,000,000
Ordinary shares, shares issued	160,489,888	158,180,833
Ordinary shares, shares outstanding	157,779,002	155,757,344
Treasury shares	2,710,886	2,423,489

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Statement Of Stockholders Equity [Abstract]
Tax provision (benefit)	$ 426	$ 159	$ (295)

Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Long‑term debt consists of the following:

	December 31,			December 31,
(In thousands)	2019			2018
2023 Term Loans, due March 26, 2023	$	277,138		$	279,308
Less: current portion		(2,843	)		(2,843	)
Long-term debt	$	274,295		$	276,465

Scheduled Maturities of Term Loan Facility

Scheduled maturities with respect to the 2023 Term Loans are as follows (in thousands):

Year Ending December 31:
2020	$	2,843
2021		2,843
2022		2,843
2023		270,747
2024		—
Total	$	279,276

Collaborative Arrangements

12 Months Ended

Dec. 31, 2019

Collaborative Arrangements Disclosure [Abstract]

Collaborative Arrangements

17. COLLABORATIVE ARRANGEMENTS

The Company has entered into several collaborative arrangements to develop and commercialize products and, in connection with such arrangements, to access technologies, financial, marketing, manufacturing and other resources. Refer to the “Patents and Proprietary Rights” section in “Item 1— Business” of this Annual Report for information with respect to IP protection for these products. The collaboration revenue the Company has earned in the years ended December 31, 2019, 2018 and 2017 is summarized in Note 3, Revenue from Contracts with Customers within the notes to the consolidated financial statements in this Annual Report.

The Company’s significant collaborative arrangements are described below:

Janssen

INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA

Under a license agreement with Janssen Pharmaceutica N.V., the Company granted Janssen a worldwide exclusive license under its NanoCrystal technology to develop, commercialize and manufacture INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA and related products.

Under this license agreement, the Company received milestone payments upon the achievement of certain development goals from Janssen; there are no further milestones to be earned under this agreement. The Company receives tiered royalty payments between 5% and 9% of INVEGA SUSTENNA/XEPLION and INVEGA TRINZA/TREVICTA end-market net sales in each country where the license is in effect, with the exact royalty percentage determined based on aggregate worldwide net sales. The tiered royalty payments consist of a patent royalty and a know‑how royalty, both of which are determined on a country‑by‑country basis. The patent royalty, which equals 1.5% of net sales, is payable in each country until the expiration of the last of the patents claiming the product in such country. The know‑how royalty is a tiered royalty of 3.5%, 5.5% and 7.5% on aggregate worldwide net sales of below $250 million, between $250 million and $500 million, and greater than $500 million, respectively. The know‑how royalty rate resets to 3.5% at the beginning of each calendar year and is payable until 15 years from first commercial sale of a product, subject to the

expiry of the license agreement. These royalty payments may be reduced in any country based on patent litigation or on competing products achieving certain minimum sales thresholds. The license agreement expires upon the expiration of the last of the patents subject to the agreement. After expiration, Janssen retains a non‑exclusive, royalty‑free license to develop, manufacture and commercialize the products.

Janssen may terminate the license agreement in whole or in part upon three months’ notice to the Company. The Company and Janssen have the right to terminate the agreement upon a material breach of the other party, which is not cured within a certain time period, or upon the other party’s bankruptcy or insolvency.

RISPERDAL CONSTA

Under a product development agreement, the Company collaborated with Janssen on the development of RISPERDAL CONSTA. Under the development agreement, Janssen provided funding to the Company for the development of RISPERDAL CONSTA and Janssen is responsible for securing all necessary regulatory approvals for the product.

Under two license agreements, the Company granted Janssen and an affiliate of Janssen exclusive worldwide licenses to use and sell RISPERDAL CONSTA. Under its license agreements with Janssen, the Company receives royalty payments equal to 2.5% of Janssen’s end-market net sales of RISPERDAL CONSTA in each country where the license is in effect based on the quarter when the product is sold by Janssen. This royalty may be reduced in any country based on lack of patent coverage and significant competition from generic versions of the product. Janssen can terminate the license agreements upon 30 days’ prior written notice to the Company. Either party may terminate the license agreements by written notice following a breach which continues for 90 days after the delivery of written notice thereof or upon the other party’s insolvency. The licenses granted to Janssen expire on a country‑by‑country basis upon the later of: (i) the expiration of the last patent claiming the product in such country; or (ii) 15 years after the date of the first commercial sale of the product in such country, provided that in no event will the license granted to Janssen expire later than the twentieth anniversary of the first commercial sale of the product in each such country, with the exception of Canada, France, Germany, Italy, Japan, Spain and the United Kingdom, in each case where the fifteen‑year minimum shall pertain regardless. After expiration, Janssen retains a non‑exclusive, royalty‑free license to manufacture, use and sell RISPERDAL CONSTA.

The Company exclusively manufactures RISPERDAL CONSTA for commercial sale. Under its manufacturing and supply agreement with Janssen, the Company records manufacturing revenues when product fully manufactured and approved for shipment by both Janssen and the Company. Revenue is based on a percentage of Janssen’s net unit sales price for RISPERDAL CONSTA for the applicable calendar year. This percentage is determined based on Janssen’s unit demand for such calendar year and varies based on the volume of units shipped, with a minimum manufacturing fee of 7.5%. Either party may terminate the manufacturing and supply agreement upon a material breach by the other party, which is not resolved within 60 days after receipt of a written notice specifying the material breach or upon written notice in the event of the other party’s insolvency or bankruptcy. Janssen may terminate the agreement upon six months’ written notice to the Company. In the event that Janssen terminates the manufacturing and supply agreement without terminating the license agreements, the royalty rate payable to the Company on Janssen’s net sales of RISPERDAL CONSTA would increase from 2.5% to 5.0%.

Biogen

Under this license and collaboration agreement, the Company received an upfront cash payment of $28.0 million in November 2017, and milestone payments of $50.0 million, $150.0 million and $5.0 million in June 2018, November 2019 and December 2019, respectively, upon the achievement of certain developmental milestones, including FDA approval of the NDA for VUMERITY in October 2019, and amendment of the license and collaboration agreement in October 2019. The Company is also eligible to receive additional payments upon achievement of milestones with respect to the first two products, other than VUMERITY, covered by patents licensed to Biogen under the license and collaboration agreement.

In addition, the Company receives a 15% royalty on worldwide net sales of VUMERITY, subject to, under certain circumstances, minimum annual payments for the first five years following FDA approval of VUMERITY. The Company is also entitled to receive royalties on net sales of products other than VUMERITY covered by patents licensed to Biogen under the license and collaboration agreement, at tiered royalty rates calculated as percentages of net sales ranging from high-single digits to sub-teen double digits. All royalties are payable on a product-by-product and country-by-country basis until the later of (i) the last-to-expire patent right covering the applicable product in the applicable country and (ii) a specified period of time from the first commercial sale of the applicable product in the applicable country. Royalties for all products and the minimum annual payments for VUMERITY are subject to customary reductions, as set forth in the license and collaboration agreement.

Except in limited circumstances, we were responsible for the development of VUMERITY until it was approved by the FDA. Following FDA approval of VUMERITY in October 2019 and except for the manufacturing responsibilities discussed below, Biogen is now responsible for all development and commercialization activities for VUMERITY and all other products covered by patents licensed to Biogen.

If VUMERITY discontinuations due to gastrointestinal adverse events in VUMERITY’s long-term safety clinical trial exceed a certain pre-defined threshold, then “GI Inferiority” shall be deemed to exist, and (i) Biogen shall have the right to recapture from the Company its $50.0 million option payment through certain temporary reductions in royalty rates, and (ii) the minimum annual payments Biogen owes to the Company shall terminate.

Unless earlier terminated, the license and collaboration agreement will remain in effect until the expiry of all royalty obligations. Biogen has the right to terminate the license and collaboration agreement at will, on a product-by-product basis or in its entirety upon 180 days’ prior notice to the Company. Either party has the right to terminate the license and collaboration agreement following any governmental prohibition of the transactions effected by the agreement, or in connection with an insolvency event involving the other party. Upon termination of the license and collaboration agreement by either party, then, at the Company’s request, the VUMERITY program will revert to the Company.

Acorda

Under an amended and restated license agreement, the Company granted Acorda an exclusive worldwide license to use and sell and, solely in accordance with its supply agreement, to make or have made AMPYRA/FAMPYRA. The Company receives certain commercial and development milestone payments, license revenues and a royalty of approximately 10% based on net selling price of AMPYRA and FAMPYRA by Acorda and its sub‑licensee, Biogen, respectively. This royalty payment may be reduced in any country based on lack of patent coverage, competing products achieving certain minimum sales thresholds and whether Alkermes manufactures the product.

In June 2009, the Company entered into an amendment of the amended and restated license agreement and the supply agreement with Acorda and, pursuant to such amendment, consented to the sublicense by Acorda to Biogen of Acorda’s rights to use and sell FAMPYRA in certain territories outside of the U.S. (to the extent that such rights were to be sublicensed to Biogen pursuant to its separate collaboration and license agreement with Acorda). Under this amendment, the Company agreed to modify certain terms and conditions of the amended and restated license agreement and the supply agreement with Acorda to reflect the sublicense by Acorda to Biogen.

Acorda has the right to terminate the amended and restated license agreement upon 90 days’ written notice. The Company has the right to terminate the amended and restated license agreement for countries in which Acorda fails to launch a product within a specified time after obtaining the necessary regulatory approval or fails to file regulatory approvals within a commercially reasonable time after completion of and receipt of positive data from all pre-clinical and clinical studies required for filing a marketing authorization application. Either party has the right to terminate the amended and restated license agreement by written notice following a material breach of the other party, which is not cured within a certain time period, or upon the other party’s entry into

bankruptcy or dissolution proceedings. If the Company terminates Acorda’s license in any country, the Company is entitled to a license from Acorda of its patent rights and know-how relating to the product as well as the related data, information and regulatory files, and to market the product in the applicable country, subject to an initial payment equal to Acorda’s cost of developing such data, information and regulatory files and to ongoing royalty payments to Acorda. Subject to the termination of the amended and restated license agreement, licenses granted under the license agreement terminate on a country-by-country basis upon the expiration of the last to expire of our patents or the existence of a threshold level of competition in the marketplace.

Under its commercial manufacturing supply agreement with Acorda, the Company manufactures and supplies AMPYRA/FAMPYRA for Acorda (and its sub‑licensee, Biogen). Under the terms of the agreement, Acorda may obtain up to 25% of its total annual requirements of product from a second‑source manufacturer. The Company receives manufacturing royalties equal to 8% of net selling price (or higher under certain circumstances) for all product manufactured by it and a compensating payment for product manufactured and supplied by a third party. The Company may terminate the commercial manufacturing supply agreement upon 12 months’ prior written notice to Acorda and either party may terminate the commercial manufacturing supply agreement following a material and uncured breach of the commercial manufacturing supply agreement or amended and restated license agreement or the entry into bankruptcy or dissolution proceedings by the other party. In addition, subject to early termination of the commercial manufacturing supply agreement noted above, the commercial manufacturing supply agreement terminates upon the expiry or termination of the amended and restated license agreement.

The Company is entitled to receive the following milestone payments under its amended and restated license agreement with Acorda for each of the third and fourth new indications of the product developed thereunder:

•

initiation of a phase 3 clinical trial: $1.0 million;

•

acceptance of an NDA by the FDA: $1.0 million;

•

approval of the NDA by the FDA: $1.5 million; and

•

the first commercial sale: $1.5 million.

Inventory (Tables)

12 Months Ended

Dec. 31, 2019

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventory consists of the following:

	December 31,		December 31,
(In thousands)	2019		2018
Raw materials	$	34,577	$	31,824
Work in process		54,061		38,019
Finished goods⁽¹⁾		13,165		20,353
Total inventory	$	101,803	$	90,196

(1)	At December 31, 2019 and 2018, the Company had $7.6 million and $11.0 million, respectively, of finished goods inventory located at its third‑party warehouse and shipping service provider.

Leases

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

9. LEASES

The Company adopted Topic 842 on January 1, 2019. Upon adoption, the Company elected the package of transition practical expedients, which allowed it to carry forward prior conclusions related to whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases and initial direct costs for existing leases. The Company also elected the practical expedient to not reassess certain land easements and made an accounting policy election to not recognize leases with an initial term of 12 months or less within its consolidated balance sheets and to instead recognize those lease payments on a straight-line basis in its consolidated statements of operations over the lease term.

The Company elected to adopt this standard using the optional modified retrospective transition method with no restatement of its prior periods or cumulative adjustment to retained earnings. With the adoption of Topic 842, the Company’s consolidated balance sheet now contains the following line items: Right-of-use assets, Operating lease liabilities—short-term and Operating lease liabilities—long-term.

The Company determined that it held the following significant operating leases of office and laboratory space as of January 1, 2019:

•

An operating lease for 175,000 square feet of office and laboratory space in Waltham, Massachusetts that expires in 2021, with an option to extend the term for up to two five year periods, both of which the Company assumed would be exercised in its right-of-use asset and lease liability amounts;

•

An operating lease for 67,000 square feet of office space in Waltham, Massachusetts that expires in 2020, with an option to extend the term for up to two one year periods, which the Company did not assume would be exercised in its right-of-use asset and lease liability amounts;

•

An operating lease for 14,600 square feet of office space in Dublin, Ireland that expires in 2022, with an option to extend the term for an additional five year period which the Company did not assume would be exercised in its right-of-use asset and lease liability amounts; and

•

An operating lease for 7,000 square feet of corporate office and administrative space in Washington, D.C. that expires in 2029 and includes an option to extend the term for an additional five year period which the Company did not assume would be exercised in its right-of-use asset and lease liability amounts.

The Company also has two additional operating leases that are included in its lease accounting but are not considered significant.

As all the existing leases subject to the new lease standard were previously classified as operating leases by the Company, they were similarly classified as operating leases under the new standard. The Company has determined that the identified operating leases did not contain non-lease components and require no further allocation of the total lease cost. Additionally, the agreements in place did not contain information to determine the rate implicit in the leases. As such, the Company calculated the incremental borrowing rate based on the assumed remaining lease term for each lease in order to calculate the present value of the remaining lease payments. At December 31, 2019, the weighted average incremental borrowing rate and the weighted average remaining lease term for the operating leases held by the Company were 4.73% and 4.0 years, respectively.

On November 18, 2019, the Company entered into a definitive agreement to acquire Rodin Therapeutics, Inc. (“Rodin”), a privately held biopharmaceutical company focused on developing novel, small molecule therapeutics for synaptopathies. As part of this transaction, the Company assumed an operating lease for 5,300 square feet of office space in Boston, Massachusetts that expires in 2021, with an option to extend the term for an additional year.

As of December 31, 2019, right-of-use assets and liabilities arising from operating leases were $12.4 million and $13.8 million, respectively. During the year ended December 31, 2019, cash paid for amounts included for the measurement of lease liabilities was $9.1 million. The Company recorded operating lease expense of $8.1 million, $10.8 million and $9.4 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Future lease payments under non-cancelable leases as of December 31, 2019 consisted of the following:

	December 31,
(In thousands)	2019
2020	$	9,053
2021		2,727
2022		500
2023		509
2024		520
Thereafter		2,579
Total lease payments	$	15,888
Less: imputed interest		(2,080	)
Total operating lease liabilities	$	13,808

For comparable purposes, future lease payments under non-cancelable leases as of December 31, 2018 consisted of the following:

	December 31,
(In thousands)	2018
2019	$	9,394
2020		10,717
2021		4,706
2022		2,455
2023		2,389
Thereafter		23,940
Total lease payments	$	53,601

In March 2018, the Company entered into a lease agreement for approximately 220,000 square feet of office and laboratory space located in a building to be built at 900 Winter Street, Waltham, Massachusetts (“900 Winter Street”). The initial term of the lease commenced on January 20, 2020 (the “Commencement Date”). The initial lease term expires on January 31, 2035, with an option to extend for an additional ten years.

As the Company (a) did not have the right to obtain or control the leased premises during the construction period; (b) did not have the right of payment for the partially constructed assets and, thus, could have been potentially leased to another tenant; and (c) did not legally own or control the land on which the property improvements are being constructed, it was not included as a right-of-use asset at December 31, 2019. Additionally, the future lease payments, outlined above, did not include the 900 Winter Street payments as of December 31, 2019 under Topic 842.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

18. INCOME TAXES

The Company’s (benefit) provision for income taxes is comprised of the following:

	Year Ended December 31,
(In thousands)	2019			2018			2017
Current income tax (benefit) provision:
U.S. federal	$	(471	)	$	(53	)	$	6,964
U.S. state		354			1,774			350
Rest of world		—			—			123
Deferred income tax (benefit) provision:
U.S. federal		(1,503	)		10,624			8,188
U.S. state		881			62			(933	)
Ireland		303			(63	)		(21	)
Total tax (benefit) provision	$	(436	)	$	12,344		$	14,671

The income tax benefit in 2019 and the income tax provision in 2018 and 2017 were primarily due to U.S. federal and state taxes. The favorable change in income taxes in 2019, as compared to 2018, was primarily due the foreign derived intangible income proposed regulations issued by the U.S. Department of the Treasury and the U.S. Internal Revenue Service (“IRS”) in March 2019. The favorable change in income taxes in 2018, as compared to 2017, was due to the one-off nature of a $21.5 million tax expense in 2017 from the enactment of the Tax Cuts and Jobs Act, partially offset by increased taxes on income earned in the U.S.

No provision for income tax has been provided on undistributed earnings of the Company's foreign subsidiaries because such earnings are indefinitely reinvested in the foreign operations or may be repatriated to Ireland without incurring any tax liability. Cumulative unremitted earnings of overseas subsidiaries totaled approximately $418.1 million at December 31, 2019. In the event of a repatriation of those earnings in the form of dividends or otherwise, the Company may be liable for income taxes, subject to adjustment, if any, for foreign tax credits and foreign withholding taxes payable to foreign tax authorities. The Company estimates that approximately $12.9 million of income taxes would be payable on the repatriation of the unremitted earnings to Ireland.

The distribution of the Company’s loss before the (benefit) provision for income taxes by geographical area consisted of the following:

	Year Ended December 31,
(In thousands)	2019			2018			2017
Ireland	$	(141,869	)	$	(180,195	)	$	(172,363	)
U.S.		(55,102	)		53,287			2,414
Rest of world		(85	)		(59	)		26,675
Loss before (benefit) provision for income taxes	$	(197,056	)	$	(126,967	)	$	(143,274	)

The components of the Company’s net deferred tax assets (liabilities) were as follows:

	December 31,			December 31,
(In thousands)	2019			2018
Deferred tax assets:
NOL carryforwards	$	227,872		$	198,633
Tax credits		57,385			52,395
Share-based compensation		45,214			44,873
Accrued expenses and reserves		20,337			15,892
Other		8,756			8,669
Less: valuation allowance		(242,059	)		(219,093	)
Total deferred tax assets		117,505			101,369
Deferred tax liabilities:
Intangible assets		—			—
Property, plant and equipment		(19,926	)		(14,533	)
Other		(1,590	)		(1,274	)
Total deferred tax liabilities		(21,516	)		(15,807	)
Net deferred tax assets	$	95,989		$	85,562

In February 2016 the FASB issued Topic 842, Leases, which includes the requirement for lessees to record a right-of-use asset and lease liability for virtually all leases. In addition, lessees are required to record deferred taxes resulting from any book versus tax basis differences upon the adoption of the standard. On January 1, 2019, the Company adopted this standard and recorded a cumulative-effect adjustment of $4.3 million to deferred tax asset in respect of the accrued lease liability and a $4.3 million deferred tax liability in respect of the right to use asset. There was no net impact to the income statement or to equity as a result of the adoption.

The activity in the valuation allowance associated with deferred taxes consisted of the following:

(In thousands)	Balance at Beginning of Period			Additions ⁽¹⁾			Balance at End of Period
Deferred tax asset valuation allowance for the year ended December 31, 2017	$	(141,859	)	$	(30,938	)	$	(172,797	)
Deferred tax asset valuation allowance for the year ended December 31, 2018	$	(172,797	)	$	(46,296	)	$	(219,093	)
Deferred tax asset valuation allowance for the year ended December 31, 2019	$	(219,093	)	$	(22,966	)	$	(242,059	)

(1)	The additions in each of the periods presented relate primarily to Irish NOLs. Additionally, in 2019 the Company’s valuation allowance was increased by $3.0 million as a result of the attributes acquired as part of the acquisition of Rodin.

At December 31, 2019, the Company maintained a valuation allowance of $17.3 million against certain U.S. state deferred tax assets and $224.8 million against certain Irish deferred tax assets as the Company has determined that it is more-likely-than-not that these net deferred tax assets will not be realized. If the Company demonstrates consistent profitability in the future, the evaluation of the recoverability of these deferred tax assets could change and the remaining valuation allowances could be released in part or in whole. If the Company incurs losses in the U.S. in the future, or experiences significant excess tax benefits arising from the future exercise of stock options and/or the vesting of RSUs, the evaluation of the recoverability of the U.S. deferred tax assets could change and a valuation allowance against the U.S. deferred tax assets may be required in part or in whole.

As of December 31, 2019, the Company had $1.5 billion of Irish NOL carryforwards, $49.5 million of U.S. federal NOL carryforwards, $44.5 million of state NOL carryforwards, $49.6 million of federal R&D credits and $18.0 million of state tax credits which will either expire on various dates through 2039 or can be carried forward indefinitely. These loss and credit carryforwards are available to reduce certain future Irish and foreign taxable income and tax. These loss and credit carryforwards are subject to review

and possible adjustment by the appropriate taxing authorities. These loss and credit carryforwards, which may be utilized in a future period, may be subject to limitations based upon changes in the ownership of the Company's ordinary shares.

As a result of the acquisition of Rodin, the Company acquired $51.4 million of U.S. federal NOL carryforwards, $43.3 million of state NOL carryforwards, $0.8 million of U.S. federal R&D credit carryforwards and $0.4 million of state R&D credit carryforwards. These attributes are subject to multiple limitations based upon prior changes in the ownership of the ordinary shares of Rodin.

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

	Year Ended December 31,
(In thousands, except percentage amounts)	2019				2018				2017
Statutory tax rate		12.5		%		12.5		%		12.5		%

Income tax provision at statutory rate	$	(24,632	)		$	(15,871	)		$	(17,909	)

Change in valuation allowance		19,882				28,371				26,771
In-process R&D⁽¹⁾		10,824				—				—
Share-based compensation		6,287				1,163				(1,205	)
Foreign rate differential⁽²⁾		5,390				5,405				(682	)
U.S. state income taxes, net of U.S. federal benefit		1,051				1,732				(558	)
Foreign derived intangible income		(3,450	)			—				—
Intercompany amounts⁽³⁾		(1,125	)			(751	)			(5,041	)
R&D credit		(8,846	)			(7,698	)			(9,326	)
Federal tax law change⁽⁴⁾		(8,111	)			—				21,453
Irish rate differential⁽⁵⁾		(146	)			(2,350	)			(2,675	)
Impairment on equity method investment		—				—				1,662
Other permanent items⁽⁶⁾		2,440				2,343				2,181
Income tax (benefit) provision	$	(436	)		$	12,344			$	14,671

Effective tax rate		0.2		%		(9.7	)	%		(10.2	)	%

(1)	Represents the tax effect of the research and development expense recorded on the acquisition of Rodin.

(2)	Represents income or losses of non-Irish subsidiaries, including U.S. subsidiaries, subject to tax at a rate other than the Irish statutory rate.

(3)	Intercompany amounts include cross-territory eliminations, the pre-tax effect of which has been eliminated in arriving at the Company's consolidated loss before taxes.

(4)

During the year ended December 31, 2019, federal tax law change represents federal income tax benefit related to the foreign derived intangible income deductions for 2018 following the publications by the IRS and the Department of Treasury of proposed regulations in March 2019. During the year ended December 31, 2017, federal tax law change resulted in a $21.5 million deferred tax expense related to the reduction in the U.S. federal tax rate from 35% to 21%.

(5)	Represents income or losses of Irish companies subject to tax at a rate other than the Irish statutory rate.

(6)	Other permanent items include, but are not limited to, non-deductible meals and entertainment expenses, non-deductible lobbying expenses, the impact of the tax treatment of the FDA branded prescription drug fee and non-deductible compensation of senior officers of the Company.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrecognized
(In thousands)	Tax Benefits
Balance, December 31, 2016	$	4,688
Reductions based on tax positions related to prior periods		(47	)
Additions based on tax positions related to the current period		877
Balance, December 31, 2017	$	5,518
Additions based on tax positions related to prior periods		4
Additions based on tax positions related to the current period		559
Balance, December 31, 2018	$	6,081
Additions based on tax positions related to prior periods		38
Additions based on tax positions related to the current period		738
Balance, December 31, 2019	$	6,857

The unrecognized tax benefits at December 31, 2019, if recognized, would affect the Company's effective tax rate. The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly increase or decrease within the next 12 months. The Company has elected to include interest and penalties related to uncertain tax positions as a component of its provision for taxes. For the years ended December 31, 2019, 2018 and 2017, the Company's accrued interest and penalties related to uncertain tax positions were not material.

The Company’s major taxing jurisdictions include Ireland and the U.S. (federal and state). These jurisdictions have varying statutes of limitations. In the U.S., the 2016 through 2019 fiscal years remain subject to examination by the respective tax authorities. In Ireland, the years 2015 to 2019 remain subject to examination by the Irish tax authorities. Additionally, because of the Company’s Irish and U.S. loss carryforwards and credit carryforwards, certain tax returns from fiscal years 1999 onward may also be examined. These years generally remain open for three to four years after the loss carryforwards and credit carryforwards have been utilized.

The years ended December 31, 2018 and 2017 for Alkermes U.S. Holdings, Inc. are currently under examination by the State of California. The years ended December 31, 2015 and 2014 for Alkermes U.S. Holdings, Inc. are currently under examination by the State of Illinois. There are no uncertain tax positions or adjustments associated with the audits at this time.

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

8. GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets consist of the following:

		December 31, 2019							December 31, 2018
(In thousands)	Weighted Amortizable Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Goodwill		$	92,873	$	—		$	92,873	$	92,873	$	—		$	92,873
Finite-lived intangible assets:
Collaboration agreements	12	$	465,590	$	(348,595	)	$	116,995	$	465,590	$	(319,311	)	$	146,279
NanoCrystal technology	13		74,600		(46,773	)		27,827		74,600		(38,942	)		35,658
OCR⁽¹⁾ technologies	12		42,560		(36,739	)		5,821		42,560		(33,496	)		9,064
Total		$	582,750	$	(432,107	)	$	150,643	$	582,750	$	(391,749	)	$	191,001

(1)OCR refers to the Company’s oral controlled release technologies.

The Company’s finite‑lived intangible assets consist of collaborative agreements and the NanoCrystal and OCR technologies acquired as part of the EDT acquisition. The Company recorded $40.4 million, $65.2 million and $62.1 million of amortization expense related to its finite‑lived intangible assets during the years ended December 31, 2019, 2018 and 2017, respectively. Based on the Company’s most recent analysis, amortization of intangible assets included within its consolidated balance sheets at December 31, 2019 is expected to be approximately $40.0 million, $40.0 million, $35.0 million, $35.0 million and $1.0 million in the years ending December 31, 2020 through 2024, respectively. Although the Company believes such available information and assumptions are reasonable, given the inherent risks and uncertainties underlying its expectations regarding such future revenues, there is the potential for the Company’s actual results to vary significantly from such expectations. If revenues are projected to change, the related amortization of the intangible assets will change in proportion to the change in revenues.

The Company performed its annual goodwill impairment test as of October 31, 2019. The Company elected to perform a qualitative assessment to determine whether it was necessary to perform a quantitative impairment test. Based on the weight of all available evidence, the Company determined that the fair value of the reporting unit more-likely-than-not exceeded its carrying value.

Share-based Compensation

12 Months Ended

Dec. 31, 2019

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Share-based Compensation

14. SHARE‑BASED COMPENSATION

Share‑Based Compensation Expense

The following table presents share‑based compensation expense included in the Company’s consolidated statements of operations and comprehensive loss:


	Year Ended December 31,
(In thousands)	2019		2018		2017
Cost of goods manufactured and sold	$	9,948	$	9,174	$	7,596
Research and development		29,924		32,943		22,635
Selling, general and administrative		61,105		63,240		53,686
Total share-based compensation expense	$	100,977	$	105,357	$	83,917

During the years ended December 31, 2019, 2018 and 2017, $1.5 million, $2.7 million and $0.4 million, respectively, of share‑based compensation expense was capitalized and recorded as “Inventory” in the accompanying consolidated balance sheets.

Share‑Based Compensation Plans

The Company has two share-based compensation plan pursuant to which awards are currently being made: the 2011 Stock Option and Incentive Plan, as amended (the “2011 Plan”) and the 2018 Stock Option and Incentive Plan, as amended (the “2018 Plan”). The Company has one share‑based compensation plan pursuant to which outstanding awards have been made, but from which no further awards can or will be made: the 2008 Stock Option and Incentive Plan, as amended. The 2018 Plan and the 2011 Plan allow for the issuance of non-qualified and incentive stock options, restricted stock, restricted stock units, cash-based awards and performance shares to employees, officers and directors of, and consultants to, the Company in such amounts and with such terms and conditions as may be determined by the compensation committee of the Company's board of directors, subject to the provisions of the 2018 Plan and the 2011 Plan, as applicable.

At December 31, 2019, there were 10.6 million ordinary shares available for issuance in the aggregate under the Company’s stock plans. The 2018 Plan and the 2011 Plan each provide that awards other than stock options will be counted against the total number of shares available under the plan in a 1.8-to‑1 ratio.

Stock Options

A summary of stock option activity is presented in the following table:

	Number of			Weighted Average
	Shares			Exercise Price
Outstanding, January 1, 2019		14,852,457		$	40.48
Granted		3,812,103		$	31.49
Exercised		(1,515,957	)	$	12.55
Expired		(1,104,967	)	$	48.42
Forfeited		(807,791	)	$	42.32
Outstanding, December 31, 2019		15,235,845		$	40.34
Exercisable, December 31, 2019		9,874,065		$	39.15

The weighted average grant date fair value of stock options granted during the years ended December 31, 2019, 2018 and 2017 was $15.57, $30.47 and $25.81, respectively. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2019, 2018 and 2017 was $21.3 million, $35.5 million and $40.4 million, respectively.

At December 31, 2019, there were 5.2 million stock options expected to vest with a weighted average exercise price of $42.64 per share, a weighted average contractual remaining life of 8.5 years with an aggregate intrinsic value of less than $0.1 million. At December 31, 2019, the aggregate intrinsic value of stock options exercisable was $12.9 million with a weighted average remaining contractual term of 4.5 years. The number of stock options expected to vest was determined by applying the pre‑vesting forfeiture rate to the total outstanding options. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the stock option.

At December 31, 2019, there was $48.0 million of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 1.9 years. Cash received from option exercises under the Company’s award plans during the years ended December 31, 2019, 2018 and 2017 was $18.9 million, $20.9 million and $23.5 million, respectively.

Time‑Vested Restricted Stock Units

A summary of time‑vested RSU activity is presented in the following table:

				Weighted Average
	Number of Shares			Grant Date Fair Value
Unvested, January 1, 2019		2,266,286		$	55.32
Granted		2,826,092		$	30.47
Vested		(791,484	)	$	53.62
Forfeited		(556,094	)	$	41.44
Unvested, December 31, 2019		3,744,800		$	38.99

The weighted average grant date fair value of time‑vested RSUs granted during the years ended December 31, 2019, 2018 and 2017 were $30.47, $63.01 and $54.85, respectively. The total fair value of time‑vested RSUs that vested during the years ended December 31, 2019, 2018 and 2017, was $42.4 million, $34.5 million and $31.5 million, respectively.

At December 31, 2019, there was $66.6 million of total unrecognized compensation cost related to unvested time‑vested RSUs, which will be recognized over a weighted average remaining contractual term of 1.9 years.

Performance-Based Restricted Stock Units

In February 2017, the compensation committee of the Company’s board of directors approved awards of RSUs to all employees employed by the Company during 2017, in each case subject to vesting on the achievement of the following performance criteria: (i) FDA approval of the NDA for ALKS 5461, (ii) the achievement of the pre-specified primary efficacy endpoints in each of two phase 3 studies of ALKS 3831, and (iii) revenues equal to or greater than a pre-specified amount for the year ending December 31, 2019. These performance criteria were to be assessed over a performance period of three years from the date of the grant.

A summary of performance-based RSU activity is presented in the following table:

				Weighted Average
	Number of Shares			Grant Date Fair Value
Unvested, January 1, 2019		626,168		$	54.75
Granted		—		$	—
Forfeited		(81,000	)	$	54.77
Vested		(1,614	)	$	48.48
Unvested, December 31, 2019		543,554		$	54.75

The grant date fair value of the performance-based RSUs was equal to the closing price of the Company’s stock on the Nasdaq Global Select Market on the date of grant.

In December 2018, the Company achieved the pre-specified primary efficacy endpoints on its second of the two phase 3 studies of ALKS 3831, resulting in the vesting of a portion of the granted performance-based RSUs and the recognition of $17.1 million in share-based compensation expense related to these awards. The Company recognized $2.1 million, $6.7 million and $8.3 million of this expense in cost of goods manufactured and sold, R&D expense and SG&A expense, respectively.

In the first quarter of 2020, the compensation committee of the Company’s board of directors will meet to determine whether the two remaining performance criteria were achieved. At December 31, 2019, the Company does not consider it probable that the performance criteria will be met on these remaining performance obligations and has not recognized any additional share-based compensation expense related to these performance-based RSUs. At December 31, 2019, there was $29.8 million of unrecognized compensation cost related to the remaining unvested portion of the performance-based RSUs, which would be recognized in accordance with the terms of the award should the Company deem that the performance criteria were met. The unvested awards will expire if it is determined that the performance conditions were not met on or before the three year anniversary of the grant date.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
REVENUES:
Total revenues	$ 1,170,947	$ 1,094,274	$ 903,374
EXPENSES:
Cost of goods manufactured and sold (exclusive of amortization of acquired intangible assets shown below)	180,385	176,420	154,748
Research and development	512,833	425,406	412,889
Selling, general and administrative	599,449	526,408	421,578
Amortization of acquired intangible assets	40,358	65,168	62,059
Restructuring expense	13,401
Total expenses	1,346,426	1,193,402	1,051,274
OPERATING LOSS	(175,479)	(99,128)	(147,900)
OTHER (EXPENSE) INCOME, NET:
Interest income	13,976	9,238	4,649
Interest expense	(13,601)	(15,437)	(12,008)
Change in the fair value of contingent consideration	(22,800)	(19,600)	21,600
Other income (expense), net	848	(2,040)	(9,615)
Total other (expense) income, net	(21,577)	(27,839)	4,626
LOSS BEFORE INCOME TAXES	(197,056)	(126,967)	(143,274)
INCOME TAX (BENEFIT) PROVISION	(436)	12,344	14,671
NET LOSS	$ (196,620)	$ (139,311)	$ (157,945)
LOSS PER ORDINARY SHARE:
Basic and diluted (in dollars loss per ordinary share)	$ (1.25)	$ (0.90)	$ (1.03)
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES OUTSTANDING:
Basic and diluted (in shares)	157,051	155,112	153,415
COMPREHENSIVE LOSS:
Net loss	$ (196,620)	$ (139,311)	$ (157,945)
Holding gain (loss), net of a tax provision (benefit) of $426, $159, $(295), respectively	1,464	512	(518)
COMPREHENSIVE LOSS	(195,156)	(138,799)	(158,463)
Manufacturing and royalty revenues
REVENUES:
Total revenues	447,882	526,675	505,308
Product sales, net
REVENUES:
Total revenues	524,499	450,334	362,834
Research and development revenue
REVENUES:
Total revenues	52,816	68,895	7,232
License revenue
REVENUES:
Total revenues	$ 145,750	$ 48,370	$ 28,000

Investments - Schedule of Proceeds From Sales and Maturities of Marketable Securities Plus Resulting Realized Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Investments Debt And Equity Securities [Abstract]
Proceeds from the sales and maturities of marketable securities	$ 224,602	$ 444,456	$ 464,494
Realized gains	997	4	9
Realized losses	$ 497	$ 268	$ 3

Long-term Debt - Scheduled Maturities of Term Loan Facility (Details) - 2023 Term Loans $ in Thousands	Dec. 31, 2019 USD ($)
Long-term debt
2020	$ 2,843
2021	2,843
2022	2,843
2023	270,747
Total	$ 279,276

Leases - Additional Information (Details) $ in Thousands			1 Months Ended	12 Months Ended
Leases - Additional Information (Details) $ in Thousands	Nov. 18, 2019 ft²	Jan. 01, 2019 USD ($) ft² Option	Mar. 31, 2018 ft²	Dec. 31, 2019 USD ($) lease	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Lessee Lease Description [Line Items]
Area of real estate property			220,000
Lessee operating lease term of option to extend			10 years
Operating lease, existence of option to extend			true
Number of additional operating leases \| lease				2
Weighted average incremental borrowing rate				4.73%
Weighted average remaining lease term				4 years
Operating lease, right-of-use asset \| $		$ 20,100		$ 12,379
Operating lease liabilities \| $		$ 22,100		13,808
Payments for operating leases \| $				9,100
Operating lease expense \| $				$ 8,100	$ 10,800	$ 9,400
Lease, commencement date			Jan. 20, 2020
Lease, expiration date			Jan. 31, 2035
MASSACHUSETTS \| Corporate office and administrative space expire in 2021
Lessee Lease Description [Line Items]
Area of real estate property		175,000
Maximum number of option to extend lease term \| Option		2
Lessee operating lease term of option to extend		5 years
Operating lease, existence of option to extend		true
MASSACHUSETTS \| Corporate office and administrative space expire in 2021 \| Rodin Therapeutics, Inc.
Lessee Lease Description [Line Items]
Area of real estate property	5,300
Lessee operating lease term of option to extend	1 year
Operating lease, existence of option to extend	true
MASSACHUSETTS \| Corporate office and administrative space expire in 2020
Lessee Lease Description [Line Items]
Area of real estate property		67,000
Maximum number of option to extend lease term \| Option		2
Lessee operating lease term of option to extend		1 year
Operating lease, existence of option to extend		true
Ireland \| Corporate office and administrative space expire in 2022
Lessee Lease Description [Line Items]
Area of real estate property		14,600
Lessee operating lease term of option to extend		5 years
Operating lease, existence of option to extend		true
Washington \| Corporate office and administrative space expire In 2029
Lessee Lease Description [Line Items]
Area of real estate property		7,000
Lessee operating lease term of option to extend		5 years
Operating lease, existence of option to extend		true

Long-term Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Long-term Debt

11. LONG‑TERM DEBT

Long‑term debt consists of the following:

	December 31,			December 31,
(In thousands)	2019			2018
2023 Term Loans, due March 26, 2023	$	277,138		$	279,308
Less: current portion		(2,843	)		(2,843	)
Long-term debt	$	274,295		$	276,465

2023 Term Loans

In March 2018, the Company amended and refinanced its existing term loan, referred to as Term Loan B-1 (as so amended and refinanced, the “2023 Term Loans”), in order to, among other things, extend the due date of the loan from September 25, 2021 to March 26, 2023, reduce the interest payable from LIBOR plus 2.75% with a LIBOR floor of 0.75% to LIBOR plus 2.25% with a 0% LIBOR floor and increase covenant flexibility (the “Refinancing”).

The Refinancing involved multiple lenders who were considered members of a loan syndicate. In determining whether the Refinancing was to be accounted for as a debt extinguishment or a debt modification, the Company considered whether creditors remained the same or changed and whether the changes in debt terms were substantial. A change in the debt terms was considered to be substantial if the present value of the remaining cash flows under the new terms of the 2023 Term Loans was at least 10% different from the present value of the remaining cash flows under the former Term Loan B-1 (commonly referred to as the “10% Test”). The Company performed a separate 10% Test for each individual creditor participating in the loan syndication. With the exception of one lender, who owned 1% of the total outstanding principal amount of Term Loan B-1 at the date of the Refinancing and was accounted for as a debt extinguishment, the Refinancing was accounted for as a debt modification.

The Refinancing resulted in a $2.3 million charge in the three months ended March 31, 2018, which was included in “Interest expense” in the accompanying consolidated statement of operations and comprehensive loss.

Scheduled maturities with respect to the 2023 Term Loans are as follows (in thousands):

Year Ending December 31:
2020	$	2,843
2021		2,843
2022		2,843
2023		270,747
2024		—
Total	$	279,276

Beginning on January 1, 2014, the Company became subject to mandatory prepayments of principal if certain excess cash flow thresholds, as defined in the 2023 Term Loans, were met. To date, the Company has not been required to make any such mandatory prepayments.

The 2023 Term Loans have an incremental facility capacity in an amount of $175.0 million, plus additional amounts as long as the Company meets certain conditions, including a specified leverage ratio. The 2023 Term Loans include a number of restrictive covenants that, among other things and subject to certain exceptions and baskets, impose operating and financial restrictions on the Company and certain of its subsidiaries. The 2023 Term Loans also contain customary affirmative covenants and events of default. The Company was in compliance with its debt covenants at December 31, 2019.

At December 31, 2019, the Company’s balance of unamortized deferred financing costs and unamortized original issue discount costs were $0.6 million and $1.5 million, respectively. These costs are being amortized to interest expense over the estimated repayment period of the 2023 Term Loans using the effective interest method. During the years ended December 31, 2019, 2018 and 2017, the Company had amortization expense of $0.7 million, $0.7 million and $0.8 million, respectively, related to deferred financing costs and original issue discount.

Investments - Additional Information (Details) $ in Thousands	1 Months Ended	12 Months Ended
	Sep. 30, 2017 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2019 EUR (€)	Feb. 29, 2016 USD ($)	May 31, 2014 EUR (€)
Equity method investment
Other-than-temporary impairment charge				$ 10,471
Synchronicity Pharma Inc
Equity method investment
Carrying value of equity investment						$ 15,000
Increase (decrease) in carrying value of investment of the entity, which represents the Company's share of investee's net gains (losses)				(2,800)
Synchronicity Pharma Inc \| Investee
Equity method investment
Other-than-temporary impairment charge	$ 10,500
Fountain Healthcare Partners II, LP of Ireland
Equity method investment
Increase (decrease) in carrying value of investment of the entity, which represents the Company's share of investee's net gains (losses)		$ (400)	$ 500	$ (100)
Funding commitment as percentage of partnership's total funding		7.00%			7.00%
Fountain Healthcare Partners II, LP of Ireland \| Maximum
Equity method investment
Maximum commitment on equity method investment \| €							€ 7,400,000
Fountain Healthcare Partners II, LP of Ireland \| Other Assets
Equity method investment
Carrying value of equity investment		$ 5,900	$ 5,500
Total equity method commitment \| €					€ 6,000,000.0

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Principles of Consolidation

The consolidated financial statements include the accounts of Alkermes plc and its wholly-owned subsidiaries: Alkermes Ireland Holdings Limited; Daravita Pharma Ireland Limited; Daravita Limited; Alkermes Science Four Limited; Alkermes Science Five Limited; Alkermes Pharma Ireland Limited; Alkermes U.S. Holdings, Inc.; Alkermes, Inc.; Alkermes Controlled Therapeutics, Inc.; Alkermes Europe, Ltd.; Alkermes Finance Ireland Limited; Alkermes Finance Ireland (No. 2) Limited; Alkermes Finance Ireland (No. 3) Limited; Alkermes Finance S.à r.l; and Rodin Therapeutics, Inc. Intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of the Company’s consolidated financial statements in accordance with accounting principles generally accepted in the United States (“GAAP”) requires that Company management make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on‑going basis, the Company evaluates its estimates and judgments and methodologies, including those related to revenue from contracts with its customers and related allowances, impairment and amortization of intangibles and long‑lived assets, share‑based compensation, income taxes including the valuation allowance for deferred tax assets, valuation of investments, contingent consideration and litigation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions.

Cash and Cash Equivalents

The Company values its cash and cash equivalents at cost plus accrued interest, which the Company believes approximates their market value. The Company considers only those investments which are highly liquid, readily convertible into cash and so near their maturity, generally three months from the date of purchase, that they present insignificant risk of change in value because of interest rate changes to be cash equivalents.

Investments

The Company has investments in various types of securities, consisting primarily of United States (“U.S.”) government and agency obligations, corporate debt securities and debt securities issued by foreign agencies and backed by foreign governments. The Company generally holds its interest-bearing investments with major financial institutions and in accordance with documented investment policies. The Company limits the amount of credit exposure to any one financial institution or corporate issuer. At December 31, 2019, substantially all these investments were classified as available for sale and were recorded at fair value.

Holding gains and losses on available-for-sale investments are considered “unrealized” and are reported within “Accumulated other comprehensive loss,” a component of shareholders’ equity. The Company uses the specific identification method for reclassifying unrealized gains and losses into earnings when investments are sold. The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized loss, in accordance with the meaning of other-than-temporary impairment and its application to certain investments, as required by GAAP. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, are recorded in “Accumulated other comprehensive loss.”

For securities with unrealized losses, the Company performs an analysis to assess whether it intends to sell or whether it would more likely than not be required to sell the security before the expected recovery of its amortized cost basis. If the Company intends to sell a security, or may be required to do so, the security’s decline in fair value is deemed to be other-than-temporary and the full amount of the unrealized loss is recorded within earnings as an impairment loss. Regardless of the Company’s intent to sell a security, the Company performs additional analysis on all securities with unrealized losses to evaluate losses associated with the creditworthiness of the security. Credit losses are identified where the Company does not expect to receive cash flows sufficient to recover the amortized cost basis of a security.

The Company's held-to-maturity investments are restricted investments held as collateral under letters of credit related to certain of the Company's agreements and are included in “Investments—long-term,” in the accompanying consolidated balance sheets.

Fair Value of Financial Instruments

The Company’s financial assets and liabilities are recorded at fair value and are classified as Level 1, 2 or 3 within the fair value hierarchy, as described in the accounting standards for fair value measurement. At December 31, 2019, the Company’s financial assets consisted of cash equivalents, investments and contingent consideration and are classified within the fair value hierarchy as follows:

•

Level 1–these valuations are based on a market approach using quoted prices in active markets for identical assets. Valuations of these products do not require a significant degree of judgment. Assets utilizing Level 1 inputs at December 31, 2019 included U.S. treasury securities, marketable securities classified as cash equivalents and a fixed term deposit account;

•

Level 2–these valuations are based on a market approach using quoted prices obtained from brokers or dealers for similar securities or for securities for which the Company has limited visibility into their trading volumes. Valuations of these financial instruments do not require a significant degree of judgment. Assets utilizing Level 2 inputs at December 31, 2019 included U.S. government agency debt securities, debt securities issued by foreign agencies and backed by foreign governments and investments in corporate debt securities that are trading in the credit markets; and

•

Level 3–these valuations are based on an income approach using certain inputs that are unobservable and are significant to the overall fair value measurement. Valuations of these products require a significant degree of judgment. At December 31, 2019, assets utilizing Level 3 inputs included contingent consideration and an investment in a corporate debt security.

The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, accounts receivable, other current assets, accounts payable and accrued expenses approximate fair value due to their short‑term nature.

Inventory

Inventory is stated at the lower of cost and net realizable value. Cost is determined using the first-in, first-out method. Included in inventory are raw materials used in production of pre-clinical and clinical products, which have alternative future use and are charged to R&D expense when consumed. The cost elements included within inventory include three primary categories for commercial products: cost of raw materials; direct labor; and overhead. Overhead is based on the normal capacity of the Company’s production facilities and does not include costs from abnormally low production or idle capacity, which are expensed directly to the consolidated statement of operations and comprehensive loss.

Property, Plant and Equipment

Property, plant and equipment are recorded at cost, subject to review for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Expenditures for repairs and maintenance are charged to expense as incurred and major renewals and improvements are capitalized. Depreciation is calculated using the straight‑line method over the following estimated useful lives of the assets:

Asset group		Term
Buildings and improvements		15 - 40 years
Furniture, fixtures and equipment		3 - 10 years
Leasehold improvements		Shorter of useful life or lease term

Contingent Consideration

The Company records contingent consideration it is entitled to receive at fair value on the acquisition date. The Company estimates the fair value of contingent consideration through valuation models that incorporate probability-adjusted assumptions related to the achievement of milestones and thus likelihood of receiving related payments. The Company revalues its contingent consideration each reporting period, with changes in the fair value of contingent consideration recognized within the consolidated statements of operations and comprehensive loss. Changes in the fair value of contingent consideration can result from changes to one or multiple assumptions, including adjustments to discount rates, changes in the amount and timing of cash flows, changes in the assumed achievement and timing of any development and sales-based milestones and changes in the assumed probability associated with regulatory approval.

The period over which the Company discounts its contingent consideration is based on the current development stage of the product candidate, the specific development plan for that product candidate, adjusted for the probability of completing the development steps, and when contingent payments would be triggered. In estimating the probability of success, the Company utilizes data regarding similar milestone events from several sources, including industry studies and the Company’s own experience. These fair value measurements are based on significant inputs not observable in the market. Significant judgment was employed in determining the appropriateness of these assumptions at the acquisition date and for each subsequent period. Accordingly, changes in assumptions described above could have a material impact on the increase or decrease in the fair value of contingent consideration recorded in any given period.

Goodwill and Intangible Assets

Goodwill represents the excess cost of the Company’s investment in the net assets of acquired companies over the fair value of the underlying identifiable net assets at the date of acquisition. The Company’s goodwill consists solely of goodwill created as a result of the Company’s acquisition of Elan Drug Technologies (“EDT”) from Elan Corporation, plc (the “Business Combination”) in September 2011 and has been assigned to one reporting unit. A reporting unit is an operating segment or one level below an operating segment or a component to which goodwill is assigned when initially recorded.

Goodwill is not amortized but is reviewed for impairment on an annual basis, as of October 31, and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable. The Company has the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. If the Company elects this option and believes, as a result of the qualitative assessment, that it is more-likely-than-not that the fair value of its reporting unit is less than its carrying amount, the quantitative impairment test is required; otherwise, no further testing is required. Alternatively, the Company may elect to not first assess qualitative factors and immediately perform the quantitative impairment test. In the quantitative impairment test, the Company compares the fair value of its reporting unit to its carrying value. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of its reporting unit, then the Company would record an impairment loss equal to the difference.

The Company’s finite-lived intangible assets, consisting of core developed technology and collaboration agreements acquired as part of the acquisition of EDT, were recorded at fair value at the time of their acquisition and are stated within the Company’s consolidated balance sheets net of accumulated amortization. The finite-lived intangible assets are amortized over their estimated useful lives using the economic use method, which reflects the pattern that the economic benefits of the intangible assets are consumed as revenue is generated from the underlying patent or contract. The useful lives of the Company’s intangible assets are primarily based on the legal or contractual life of the underlying patent or contract, which does not include additional years for the potential extension or renewal of the contract or patent.

Impairment of Long-Lived Assets

Impairment of Long‑Lived Assets

The Company reviews long‑lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset, a significant change in the extent or manner in which an asset is used, or a significant adverse change that would indicate that the carrying amount of an asset or group of assets is not recoverable. Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition. In the event that such cash flows are not expected to be sufficient to recover the carrying amount of the assets, the assets are written‑down to their estimated fair values. Long‑lived assets to be disposed of are carried at fair value less costs to sell them.

Revenue from Contracts with Customers

Effective January 1, 2018, the Company adopted the requirements of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606, Revenue from Contracts with Customers (“Topic 606”) using the modified retrospective method. As part of the adoption, the Company reviewed all contracts that were not yet completed as of the date of initial application in determining the cumulative-effect impact related to the adoption of Topic 606. The cumulative-effect impact recorded to retained earnings resulted in an adjustment of approximately $0.8 million, which was primarily due to the acceleration of manufacturing revenue, offset by an adjustment to deferred revenue for license and milestone payments that will now be recognized over time. The following balance sheet accounts were impacted:

(In thousands)	Topic 606 Adjustment
Contract assets	$	9,110
Inventory		(8,209	)
Deferred tax asset		109
Contract liabilities—short-term		(1,104	)
Contract liabilities—long-term		(724	)
Accumulated deficit		818
	$	—

When entering into arrangements with customers, the Company identifies whether its performance obligations under the arrangement represent a distinct good or service or a series of distinct goods or services. If a contract contains more than one performance obligation, the Company allocates the total transaction price to each performance obligation in an amount based on the estimated relative standalone selling prices of the promised goods or services underlying each performance obligation. The fair value of performance obligations under the arrangement may be derived using an estimate of selling price if the Company does not sell the goods or services separately.

The Company recognizes revenue when or as it satisfies a performance obligation by transferring an asset or providing a service to a customer. Management judgment is required in determining the consideration to be earned under an arrangement and the period over which the Company is expected to complete its performance obligations under an arrangement. Steering committee services that are not inconsequential or perfunctory and that are determined to be performance obligations are combined with other research services or performance obligations required under an arrangement, if any, in determining the level of effort required in an arrangement and the period over which the Company expects to complete its aggregate performance obligations.

Because the Company adopted Topic 606 using the modified retrospective method, the Company recognized the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of shareholders’ equity at January 1, 2018. Therefore, the comparative information at December 31, 2017 has not been adjusted and continues to be reported under the old revenue recognition guidance (“Topic 605”).

Product Sales, Net

The Company’s product sales, net consist of sales of VIVITROL^®, ARISTADA^®and ARISTADA INITIO^® in the U.S. primarily to wholesalers, specialty distributors and pharmacies. Product sales, net are recognized when the customer obtains control of the product, which is when the product has been received by the customer.

Revenues from product sales are recorded net of reserves established for applicable discounts and allowances that are offered within contracts with the Company’s customers, health care providers or payers. The Company’s process for estimating reserves established for these variable consideration components does not differ materially from historical practices. The transaction price, which includes variable consideration reflecting the impact of discounts and allowances, may be subject to constraint and is included in the net sales price only to the extent that it is probable that a significant reversal of the amount of the cumulative revenues recognized will not occur in a future period. Actual amounts may ultimately differ from the Company’s estimates. If actual results vary, the Company adjusts these estimates, which could have an effect on earnings in the period of adjustment. The following are the Company’s significant categories of sales discounts and allowances:

•

Medicaid Rebates—the Company records accruals for rebates to states under the Medicaid Drug Rebate Program as a reduction of sales when the product is shipped into the distribution channel using the expected value method. The Company rebates individual states for all eligible units purchased under the Medicaid program based on a rebate per unit calculation, which is based on the Company’s average manufacturer prices. The Company estimates expected unit sales and rebates per unit under the Medicaid program and adjusts its rebate based on actual unit sales and rebates per unit. To date, actual Medicaid rebates have not differed materially from the Company’s estimates;

•

Chargebacks—discounts that occur when contracted indirect customers purchase directly from wholesalers and specialty distributors. Contracted customers generally purchase a product at its contracted price. The wholesaler or specialty distributor, in turn, then generally charges back to the Company the difference between the wholesale acquisition cost and the contracted price paid to the wholesaler or specialty distributor by the customer. The allowance for chargebacks is made using the expected value method and is based on actual and expected utilization of these programs. Chargebacks could exceed historical experience and the Company’s estimates of future participation in these programs. To date, actual chargebacks have not differed materially from the Company’s estimates;

•

Product Discounts—cash consideration, including sales incentives, given by the Company under agreements with a number of wholesaler, distributor, pharmacy, and treatment provider customers that provide them with a discount on the purchase price of products. The reserve is made using the expected value method and to date, actual product discounts have not differed materially from the Company’s estimates;

•

Product Returns—the Company records an estimate for product returns at the time our customers take control of their product. The Company estimates this liability using the expected value based on historical return levels and specifically identified anticipated returns due to known business conditions and product expiry dates. Return amounts are recorded as a deduction to arrive at product sales, net. Once product is returned, it is destroyed; and

•

Medicare Part D—the Company records accruals for Medicare Part D liabilities under the Medicare Coverage Gap Discount Program (“CGDP”) as a reduction of sales. Under the CGDP, patients reaching the annual coverage gap threshold are eligible for reimbursement coverage for out-of-pocket costs for covered prescription drugs. Under an agreement with the Center for Medicare and Medicaid, manufacturers are responsible to reimburse prescription plan sponsors for the portion of out-of-pocket expenses not covered under their Medicare plans.

Collaborative Arrangements

The Company has entered into collaboration agreements with pharmaceutical companies including Janssen Pharmaceutica Inc. (“Janssen, Inc.”), Janssen Pharmaceutica International, a division of Cilag International AG (“Janssen International”), and Janssen Pharmaceutica N.V. (together with Janssen, Inc., Janssen International and their affiliates, “Janssen”) for INVEGA SUSTENNA^®/XEPLION^® and INVEGA TRINZA^®/TREVICTA^® as well as RISPERDAL CONSTA^®, Acorda Therapeutics, Inc. (“Acorda”) for AMPYRA^®/FAMPYRA^®, and Biogen Swiss Manufacturing GmbH (together with its affiliates, “Biogen”) for VUMERITY^® (diroximel fumarate, formerly known as BIIB098). Substantially all of the products developed under these arrangements are currently being marketed as approved products for which the Company receives payments for manufacturing services and/or royalties on net product sales.

Manufacturing Revenue

The Company recognizes manufacturing revenues from the sale of products it manufactures for resale by its licensees. Manufacturing revenues for the Company’s partnered products, with the exception of those from Janssen related to RISPERDAL CONSTA, are recognized over time as products move through the manufacturing process, using a standard cost-based model as a measure of progress, which represents a faithful depiction of the transfer of control of the goods. The Company recognizes manufacturing revenue from these products over time as it determined, in each instance, that it would have a right to payment for performance completed to date if its customer were to terminate the manufacturing agreement for reasons other than the Company’s non-performance and the products have no alternative use. The Company invoices its licensees upon shipment with payment terms between 30 to 90 days.

The Company is the exclusive manufacturer of RISPERDAL CONSTA for commercial sale under its manufacturing and supply agreement with Janssen. The Company determined that it is appropriate to record revenue under this agreement at the point in time when control of the product passes to Janssen, which is determined to be when the product has been fully manufactured, since Janssen does not control the product during the manufacturing process and, in the event Janssen terminates the manufacturing and supply agreement, it is uncertain whether, and at what amount, the Company would be reimbursed for performance completed to date for product not yet fully manufactured. The manufacturing process is considered fully complete once the finished goods have been approved for shipment by both the Company and Janssen.

The sales price for certain of the Company’s manufacturing revenues is based on the end-market sales price earned by its licensees. As end-market sales generally occur after the Company has recorded manufacturing revenue, the Company estimates the sales price for such products based on information supplied to it by the Company’s licensees, its historical transaction experience and other third-party data. Differences between actual manufacturing revenues and estimated manufacturing revenues are reconciled and adjusted for in the period in which they become known, which is generally within the same quarter. The difference between the Company’s actual and estimated manufacturing revenues has not been material to date.

Royalty Revenue

The Company recognizes royalty revenues related to the sale by its licensees of products that incorporate the Company’s technologies. Royalties, with the exception of those earned on sales of AMPYRA as set forth below, qualify for the sales-and-usage exemption under Topic 606 as (i) royalties are based strictly on the sales-and-usage by the licensee; and (ii) a license of intellectual property (“IP”) is the sole or predominant item to which such royalties relate. Based on this exemption, these royalties are earned in the period the products are sold by the Company's partner and the Company has a present right to payment. Royalties on AMPYRA manufactured under our license and supply agreements with Acorda are incorporated into the standard cost-based model described in the manufacturing revenues section, above, as the terms of such agreements entitle the Company to royalty revenue as the product is being manufactured, which represents a faithful depiction of the transfer of goods, and not based on the actual end-market sales of the licensee. Certain of the Company’s royalty revenues are recognized by the Company based on information supplied to the Company by its licensees and require estimates to be made. Differences between actual royalty revenues and estimated royalty revenues are reconciled and adjusted for in the period in which they become known, which is generally within the same quarter. The difference between the Company’s actual and estimated royalty revenues has not been material to date.

Research and Development Revenue

R&D revenue consists of funding that compensates the Company for formulation, pre‑clinical and clinical testing under R&D arrangements with its partners. The Company generally bills its partners under R&D arrangements using a full‑time equivalent or hourly rate, plus direct external costs, if any. Revenue is recognized as the obligations under the R&D arrangements are performed.

License Revenue

The Company recognizes revenue from the grant of distinct, right-to-use licenses of IP when control of the license is transferred to the customer, which is the point in time the customer is able to direct the use of and obtain substantially all of the benefits from the license.

Receivables, net

Receivables, net, include amounts billed and currently unconditionally due from customers. The amounts due are stated at their net estimated realizable value. The Company maintains an allowance for doubtful accounts to provide for the estimated amounts of receivables that will not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and collateral to the extent applicable. The Company’s allowance for doubtful accounts was $0.2 million at each of December 31, 2019 and 2018.

Contract Assets

Contract assets include unbilled amounts resulting from sales under certain of the Company’s manufacturing contracts where revenue is recognized over time, except for $5.0 million of consideration related to the Company’s collaboration with Biogen related to Vumerity, which the Company expects to receive in approximately three years, and is included in “Other assets” in the accompanying consolidated balance sheets. The manufacturing related amounts included in the contract assets table below complete the manufacturing process in ten days to eight weeks and are classified as current assets.

Contract assets consisted of the following:

(In thousands)	Contract Assets
Contract assets at January 1, 2018	$	9,110
Additions		57,617
Transferred to receivables, net		(58,497	)
Contract assets at December 31, 2018		8,230
Additions		37,911
Transferred to receivables, net		(32,755	)
Contract assets at December 31, 2019	$	13,386

Contract Liabilities

The Company’s contract liabilities consist of contractual obligations related to deferred revenue.

Contract liabilities consisted of the following:

(In thousands)	Contract Liabilities
Contract liabilities at January 1, 2018	$	9,442
Additions		6,381
Amounts recognized into revenue		(3,129	)
Contract liabilities at December 31, 2018		12,694
Additions		18,677
Amounts recognized into revenue		(2,537	)
Contract liabilities at December 31, 2019	$	28,834

Foreign Currency

The Company’s functional and reporting currency is the U.S. dollar. Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction. The resulting monetary assets and liabilities are translated into U.S. dollars at exchange rates prevailing on the subsequent balance sheet date. Gains and losses as a result of translation adjustments are recorded within “Other (expense) income, net” in the accompanying consolidated statements of operations and comprehensive loss. During the years ended December 31, 2019, 2018 and 2017, the Company recorded a (loss) gain on foreign currency translation of $(0.9) million, $(2.3) million and $3.7 million, respectively.

Concentrations

Financial instruments that potentially subject the Company to concentrations of credit risk are receivables and marketable securities. Billings to large pharmaceutical companies and pharmaceutical wholesalers account for the majority of the Company’s receivables, and collateral is generally not required from these customers. To mitigate credit risk, the Company monitors the financial performance and credit worthiness of its customers. The following represents revenue and receivables from the Company’s customers exceeding 10% of the total in each category as of, and for the years ended, December 31, 2019, 2018 and 2017:

	Year Ended December 31,
	2019				2018				2017
Customer	Receivables		Revenue		Receivables		Revenue		Receivables		Revenue
Janssen	29	%	28	%	27	%	29	%	31	%	33	%
Biogen	*		17	%	*		10	%	*		*
Cardinal Health	12	%	*		*		13	%	*		*
AmerisourceBergen	10	%	*		*		*		*		*
Acorda	*		*		15	%	10	%	14	%	13	%


*		Indicates the revenues or receivables for the customer did not exceed 10% of the Company’s total in each category as of or for the years ended December 31, 2019, 2018 and 2017, as noted.

The Company holds its interest‑bearing investments with major financial institutions and, in accordance with documented investment policies, the Company limits the amount of credit exposure to any one financial institution or corporate issuer. The Company’s investment objectives are, first, to assure liquidity and conservation of capital and, second, to obtain investment income.

Geographic Information

Company revenues by geographic location, as determined by the location of the customer, and the location of its assets, are as follows:

	Year Ended December 31,
(In thousands)	2019		2018		2017
Revenue by region:
U.S.	$	966,929	$	884,600	$	700,090
Ireland		3,195		4,915		9,706
Rest of world		200,823		204,759		193,578
Assets by region:
Current assets:
U.S.	$	551,799	$	546,533	$	402,481
Ireland		407,791		433,837		403,167
Rest of world		2,381		2,882		3,196
Long-term assets:
U.S.:
Other	$	382,029	$	312,243	$	360,641
Ireland:
Intangible assets	$	150,643	$	191,001	$	256,168
Goodwill		92,873		92,873		92,873
Other		217,887		245,638		278,701

Research and Development Expenses

For each of its R&D programs, the Company incurs both external and internal expenses. External R&D expenses include costs related to clinical and non‑clinical activities performed by contract research organizations, consulting fees, laboratory services, purchases of drug product materials and third‑party manufacturing development costs. Internal R&D expenses include employee‑related expenses, occupancy costs, depreciation and general overhead. The Company tracks external R&D expenses for each of its development programs, however, internal R&D expenses, with the exception of those expenses related to VUMERITY, are not tracked by individual program as they benefit multiple programs or the Company’s technologies in general.

Selling, General and Administrative Expenses

Selling, general and administrative (“SG&A”) expenses are primarily comprised of employee-related expenses associated with sales and marketing, finance, human resources, legal, information technology and other administrative personnel, outside marketing, advertising and legal expenses and other general and administrative costs.

Advertising costs are expensed as incurred. During the years ended December 31, 2019, 2018 and 2017, advertising costs totaled $31.1 million, $54.7 million and $34.4 million, respectively.

Share-Based Compensation

Share‑Based Compensation

The Company’s share‑based compensation programs grant awards in the form of stock options and restricted stock units (“RSUs”), which vest with the passage of time and/or vest based on the achievement of certain performance criteria. The Company issues new shares upon the exercise of stock option or the vesting of RSUs. Under the terms of the Company’s stock option plans (the “Plans”), certain of the Company’s employees may become eligible upon retirement for accelerated vesting of certain awards granted to them under the Plans. Since there are no effective future service requirements for such employees, the fair value of awards to such employees is expensed in full on the grant date or upon meeting the retirement eligibility criteria, whichever is later.

Time-Based Stock Options

Stock option grants to employees expire ten years from the grant date and generally vest one fourth per year over four years from the anniversary of the date of grant, provided the employee remains continuously employed with the Company, except as otherwise provided in the applicable Plan. Stock option grants to non-employee directors expire ten years from the grant date and generally vest over a one year period provided that the director continues to serve on the Company’s board of directors through the vesting date, except as otherwise provided in the applicable Plan. The estimated fair value of options is recognized over the requisite service period, which is generally the vesting period. Share‑based compensation expense is based on awards ultimately expected to vest. Forfeitures are estimated based on historical experience at the time of grant and revised in subsequent periods if actual forfeitures differ from those estimates.

The fair value of stock option grants is based on estimates as of the date of grant using a Black‑Scholes option valuation model. The Company uses historical data as the basis for estimating option terms and forfeitures. Separate groups of employees that have similar historical stock option exercise and forfeiture behavior are considered separately for valuation purposes. The ranges of expected terms disclosed below reflect different expected behavior among certain groups of employees. Expected stock volatility factors are based on a weighted average of implied volatilities from traded options on the Company’s ordinary shares and historical share price volatility of the Company’s ordinary shares, which is determined based on a review of the weighted average of historical daily price changes of the Company’s ordinary shares. The risk‑free interest rate for periods commensurate with the expected term of the share option is based on the U.S. treasury yield curve in effect at the time of grant. The dividend yield on the Company’s ordinary shares is estimated to be zero as the Company has not paid and does not expect to pay dividends. The exercise price of options granted is equal to the closing price of the Company’s ordinary shares traded on the Nasdaq Global Select Market on the date of grant.

The fair value of each stock option grant was estimated on the grant date with the following weighted‑average assumptions:

	Year Ended December 31,
	2019	2018	2017
Expected option term	5 - 7 years	5 - 8 years	5 - 8 years
Expected stock volatility	46 % - 50 %	44 % - 49 %	43 % - 47 %
Risk-free interest rate	1.34 % - 2.59 %	2.25 % - 3.10 %	1.69 % - 2.38 %
Expected annual dividend yield	—	—	—

Performance-Based Stock Options

Certain of the Company’s granted stock options are subject to achievement of a specified market condition prior to vesting in addition to being subject to time-based vesting. The estimated fair value of these stock options that vest upon the achievement of a market condition was determined through the use of a Monte Carlo simulation model, which utilizes input variables that determine the probability of satisfying the market condition stipulated in the award and calculates the fair market value for the award. The Monte Carlo simulation model used the following assumptions:

Grant Date

Weighted-Average

Expected Volatility

Cost of Equity

Risk-Free

Interest Rate

February 21, 2019

45.0%

12.0%

2.69%

Compensation expense for the stock options that vest upon the achievement of a market condition is recognized over a derived service period as determined by the Monte Carlo simulation model. The vesting of these stock options is also subject to continued employment of the grantee.

Time‑Based Restricted Stock Units

Time‑based RSUs awarded to employees generally vest one‑fourth per year over four years, commencing on the first anniversary of the date of grant, provided the employee remains continuously employed with the Company. Shares subject to these RSUs are delivered to the employee upon vesting, subject to payment of applicable withholding taxes. The fair value of time‑vested RSUs is equal to the closing price of the Company’s ordinary shares traded on the Nasdaq Global Select Market on the date of grant. Compensation expense, including the effect of forfeitures, is recognized over the applicable service period.

Performance-Based Restricted Stock Units

Performance-based RSUs awarded to employees vest upon the achievement of certain performance criteria. The estimated fair value of these RSUs is based on the closing price of the Company’s ordinary shares traded on the Nasdaq Global Select Market on the date of grant. Compensation expense for performance-based RSUs is recognized from the moment the Company determines the performance criteria probable to the date the Company deems the event is likely to occur. Cumulative adjustments are recorded quarterly to reflect subsequent changes in the estimated outcome of performance-related conditions until the date results are determined.

Income Taxes

The Company recognizes income taxes under the asset and liability method. Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence including its past operating results, the existence of cumulative income in the most recent fiscal years, changes in the business in which the Company operates and its forecast of future taxable income. In determining future taxable income, the Company is responsible for assumptions utilized including the amount of Irish, U.S. and other foreign pre‑tax

operating income, the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates that the Company is using to manage the underlying business.

The Company accounts for uncertain tax positions using a more‑likely‑than‑not threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity and changes in facts or circumstances related to a tax position. The Company evaluates its tax position on a quarterly basis. The Company also accrues for potential interest and penalties related to unrecognized tax benefits in income tax expense.

Comprehensive Loss

Comprehensive loss consists of net loss and other comprehensive loss. Other comprehensive loss includes changes in equity that are excluded from net loss, such as unrealized holding gains and losses on available‑for‑sale marketable securities.

Loss Per Share

Basic loss per share is calculated based upon net loss available to holders of ordinary shares divided by the weighted average number of ordinary shares outstanding. For the calculation of diluted earnings per share, the Company uses the weighted average number of ordinary shares outstanding, as adjusted for the effect of potential dilutive securities, including stock options and RSUs.

Segment Information

The Company operates as one business segment, which is the business of developing, manufacturing and commercializing medicines designed to yield better therapeutic outcomes and improve the lives of patients with serious diseases. The Company’s chief decision maker, the Chairman and Chief Executive Officer, reviews the Company’s operating results on an aggregate basis and manages the Company’s operations as a single operating unit.

Employee Benefit Plans

401(k) Plan

The Company maintains a 401(k) retirement savings plan (the “401(k) Plan”), which covers substantially all of its U.S.‑based employees. Eligible employees may contribute up to 100% of their eligible compensation, subject to certain Internal Revenue Service (“IRS”) limitations. The Company matches 100% of employee contributions up to the first 5% of employee pay, up to IRS limits. Employee and Company contributions are fully vested when made. During the years ended December 31, 2019, 2018 and 2017, the Company contributed $14.8 million, $12.1 million and $9.8 million, respectively, to match employee deferrals under the 401(k) Plan.

Defined Contribution Plan

The Company maintains a defined contribution plan for its Ireland‑based employees (the “Defined Contribution Plan”). The Defined Contribution Plan provides for eligible employees to contribute up to a maximum of 40%, depending upon their age, of their total taxable earnings subject to an earnings cap of €115,000. The Company provides a match of up to 18% of taxable earnings depending upon an individual’s contribution level. During the years ended December 31, 2019, 2018 and 2017, the Company contributed $4.1 million, $4.0 million and $3.7 million, respectively, in contributions to the Defined Contribution Plan.

New Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the FASB or other standard‑setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.

Effective January 1, 2019, the Company adopted the requirements under Accounting Standards Update (“ASU”) 2016-02, Leases (“Topic 842”) using the optional modified retrospective transition method and recognized a cumulative-effect adjustment to the consolidated balance sheet on the date of adoption. Comparative periods have not been restated. Topic 842 was issued in order to increase transparency and comparability among organizations by recognizing right-of-use lease assets and operating lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between previous GAAP (“Topic 840”) and Topic 842 is the recognition of right-of-use lease assets and lease liabilities by lessees for those leases classified as operating leases under Topic 840. At January 1, 2019, the Company recorded a right-of-use asset of $20.1 million and an operating lease liability of $22.1 million. For additional information regarding how the Company is accounting for leases under Topic 842, refer to Note 9, Leases, in the “Notes to Consolidated Financial Statements” in this Annual Report.

In April 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, as part of its simplification initiative that involves several aspects of the accounting for share-based payment transactions. The amendments in this

update established that: (i) all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the income statement; (ii) excess tax benefits be classified as an operating activity in the statement of cash flows; (iii) the entity make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, which is current GAAP, or account for forfeitures as they occur; (iv) the threshold to qualify for equity classification permits withholding up to the maximum statutory tax rates in the applicable jurisdictions; and (v) cash paid by an employer when directly withholding shares for tax withholding purposes be classified as a financing activity in the statement of cash flows. This ASU became effective for the Company on January 1, 2017. The amendments related to (i), (iii) and (iv) were adopted by the Company on a modified retrospective basis, which resulted in a cumulative-effect adjustment to reduce accumulated deficit by $61.5 million related to the timing of when excess tax benefits are recognized. The Company elected to continue to record expense only for those awards that are expected to vest. The amendments related to (ii) and (v) were adopted using the prospective transition method.

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this ASU replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU becomes effective for the Company in the year ending December 31, 2020. This standard primarily impacts how firms account for credit losses and requires an impairment model, known as the current expected credit loss model (“CECL”), that is based on expected losses rather than incurred losses. Companies are required to carry an allowance for expected credit losses for most debt instruments (except those carried at fair value), trade receivables, lease receivables, reinsurance receivables, financial guarantee contracts and loan commitments. Available-for-sale debt securities are scoped out of this guidance. The Company’s investment portfolio primarily consists of available-for-sale securities carried at fair value. Further, the Company’s trade receivables do not have abnormally long terms and the Company has rarely ever written off trade receivables. Accordingly, the Company has determined that the adoption of this standard will not have a material impact on the Company’s financial statements.

In June 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting, which addresses the accounting for nonemployee share-based payment transactions resulting from expanding the scope of Topic 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees. This ASU became effective for and was adopted by the Company in the year ending December 31, 2019 and the adoption of this ASU did not have an impact on the Company’s consolidated financial statements.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement, which aims to improve the effectiveness of fair value measurement disclosures. The amendments in this ASU modify the disclosure requirements on fair value measurements based on the concepts in FASB Concepts Statement, Conceptual Framework for Financial Reporting - Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. This ASU becomes effective for the Company in the year ending December 31, 2020 and early adoption is permitted. Adoption of this standard only impacts the Company’s financial statement disclosures.

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). This ASU also requires the entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement, which includes reasonably certain renewals. This ASU becomes effective for the Company in the year ending December 31, 2020 and early adoption is permitted. The Company will adopt the standard as of January 1, 2020 using the prospective transition method, whereby it will apply the requirements to any eligible costs incurred after adoption. As such, there should be no impact to the Company’s consolidated financial statements.

In November 2018, the FASB issued ASU 2018-18, Clarifying the Interaction Between Topic 808 and Topic 606, which clarifies when transactions between participants in a collaborative arrangement are within the scope of the FASB’s revenue standard, Topic 606. This ASU becomes effective for the Company in the year ending December 31, 2020. The Company reviewed its collaborative arrangements and determined that there are no collaborative arrangements that are considered within the scope of this standard.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles of ASC 740, Income Taxes. The amendments also improve consistent application of and simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This ASU is effective for fiscal years beginning after December 15, 2020 and early adoption is permitted. Depending on the

amendment, adoption may be applied on a retrospective, modified retrospective or prospective basis. The Company is currently assessing the impact that this ASU will have on its consolidated financial statements.

Description of Business and Basis of Presentation

12 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business and Basis of Presentation

1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

Alkermes plc (the “Company”) is a fully integrated, global biopharmaceutical company that applies its scientific expertise and proprietary technologies to research, develop and commercialize, both with partners and on its own, pharmaceutical products that are designed to address unmet medical needs of patients in major therapeutic areas. Alkermes has a diversified portfolio of marketed products focused on central nervous system disorders such as addiction and schizophrenia and a pipeline of product candidates in the fields of neuroscience and oncology. Headquartered in Dublin, Ireland, the Company has a research and development (“R&D”) center in Waltham, Massachusetts; R&D and manufacturing facilities in Athlone, Ireland; and a manufacturing facility in Wilmington, Ohio.

Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenue from Contracts with Customers

3. REVENUE FROM CONTRACTS WITH CUSTOMERS

During the years ended December 31, 2019, 2018 and 2017, the Company recorded product sales, net, as follows:

	Year Ended December 31,
(In thousands)	2019		2018		2017
VIVITROL	$	335,365	$	302,609	$	269,321
ARISTADA/ARISTADA INITIO		189,134		147,725		93,513
Total product sales, net	$	524,499	$	450,334	$	362,834

During the years ended December 31, 2019, 2018 and 2017, the Company recorded manufacturing and royalty revenues from its collaboration arrangements as follows:

	Year Ended December 31, 2019
(In thousands)	Manufacturing Revenue		Royalty Revenue		Total
INVEGA SUSTENNA/XEPLION & INVEGA TRINZA/TREVICTA	$	—	$	256,947	$	256,947
RISPERDAL CONSTA		50,433		15,950		66,383
AMPYRA/FAMPYRA		22,071		15,170		37,241
Other		31,750		55,561		87,311
	$	104,254	$	343,628	$	447,882

	Year Ended December 31, 2018
(In thousands)	Manufacturing Revenue		Royalty Revenue		Total
INVEGA SUSTENNA/XEPLION & INVEGA TRINZA/TREVICTA	$	—	$	241,423	$	241,423
RISPERDAL CONSTA		52,770		18,352		71,122
AMPYRA/FAMPYRA		53,044		54,009		107,053
Other		27,214		79,863		107,077
	$	133,028	$	393,647	$	526,675

	Year Ended December 31, 2017
(In thousands)	Manufacturing Revenue		Royalty Revenue		Total
INVEGA SUSTENNA/XEPLION & INVEGA TRINZA/TREVICTA	$	—	$	214,931	$	214,931
RISPERDAL CONSTA		64,793		20,129		84,922
AMPYRA/FAMPYRA		55,373		61,646		117,019
Other		32,655		55,781		88,436
	$	152,821	$	352,487	$	505,308

The research and development revenue and license revenue recorded during the years ended December 31, 2019, 2018 and 2017 primarily related to revenue earned under the Company’s license and collaboration agreement with Biogen for VUMERITY.

Under a license and collaboration agreement with Biogen, which the Company entered into in November 2017 and amended in October 2018, January 2019 and October 2019, the Company granted Biogen a worldwide, exclusive, sublicensable license to develop, manufacture and commercialize VUMERITY and other products covered by patents licensed to Biogen under the agreement. Upon entering into the November 2017 license and collaboration agreement, the Company received an up-front cash payment of $28.0 million and was also eligible to receive additional payments upon achievement of developmental milestones with respect to VUMERITY. In June 2018, the Company received an additional cash payment of $50.0 million following Biogen’s review of preliminary gastrointestinal tolerability data from the clinical development program for VUMERITY. In November 2019, the Company also received an additional payment of $150.0 million following FDA approval of the NDA for VUMERITY and transfer of such NDA to Biogen. The Company is also eligible to receive additional payments upon achievement of developmental milestones with respect to the first two products other than VUMERITY covered by patents licensed to Biogen under the November 2017 license and collaboration agreement. Biogen paid a portion of the VUMERITY development costs the Company incurred in 2017 and, since January 1, 2018, Biogen has been responsible for all VUMERITY development costs the Company incurs, subject to annual budget limitations. Following FDA approval of the NDA for VUMERITY in October 2019, the NDA and any further development responsibilities with respect to VUMERITY were transferred to Biogen.

The Company evaluated the license and collaboration agreement under Topic 606 and determined that it had four deliverables: (i) the grant of a distinct, right-to-use license of IP to Biogen; (ii) future development services; (iii) clinical supply; and (iv) participation on a joint steering committee with Biogen. The Company’s participation on the joint steering committee was considered to be perfunctory and thus not recognized as a performance obligation. The deliverables, aside from the participation in the joint steering committee which was considered to be perfunctory, were determined to be separate performance obligations as the license is separately identifiable from the development services and clinical supply, and the development services are not expected to significantly modify or customize the IP.

The Company allocated the arrangement consideration to each performance obligation using the standalone selling prices based on its estimate of selling price for the license and other deliverables. The Company used a discounted cash flow model to estimate the standalone selling price of the license in order to allocate the consideration to the performance obligations. To estimate the standalone selling price of the license, the Company assessed the likelihood of the FDA’s approval of VUMERITY and estimated the expected future cash flows assuming FDA approval and maintenance of the IP protecting VUMERITY. The Company then discounted these cash flows using a discount rate of 8.0%, which it believes captures a market participant’s view of the risk associated with the expected cash flows. The estimate of selling price of the development services and clinical supply were determined through third-party evidence. The Company believes that a change in the assumptions used to determine its estimate of selling price for the license most likely would not have a significant effect on the allocation of consideration transferred.

Under Topic 606, the Company allocated the $28.0 million up-front payment and the $50.0 million June 2018 payments as follows: $27.0 million and $48.3 million to the delivery of the license; $0.9 million and $1.5 million to future development services; and $0.1 million and $0.2 million to clinical supply, respectively.

In November 2019, following FDA acceptance of the NDA for VUMERITY and transfer of such NDA to Biogen, the Company received a $150.0 million milestone payment, $144.8 million of which was allocated to the delivery of the license; and $5.2 million of which was allocated to future development services and clinical supply. The amounts allocated to the license were recognized upon receipt of the payments as delivery of the license occurred upon entry into the agreement in 2017. The amounts allocated to the development services and clinical supply will be recognized over the course of the development work and as clinical supply is delivered to Biogen, which is expected to continue into 2020. The Company expects to earn an additional $0.3 million in research and development revenue under this agreement with Biogen through 2020.

In addition, the Company will receive a 15% royalty on worldwide net sales of VUMERITY, subject to, under certain circumstances, minimum annual payments for the first five years following FDA approval of VUMERITY. The Company is also entitled to receive royalties on net sales of products other than VUMERITY covered by patents licensed to Biogen under the license and collaboration agreement, at tiered royalty rates calculated as percentages of net sales ranging from high-single digits to sub-teen double digits. All royalties are payable on a product-by-product and country-by-country basis until the later of (i) the last-to-expire patent right covering the applicable product in the applicable country and (ii) a specified period of time from the first commercial sale of the applicable product in the applicable country. Royalties for all products and the minimum annual payments for VUMERITY are subject to customary reductions, as set forth in the license and collaboration agreement.

The Company determined that the future development milestones and sales-based royalties that it may be entitled to receive are variable consideration. The Company is using the most likely amount method for estimating the variable consideration to be received related to the milestones under this arrangement. The royalties are subject to the sales-based exception and will be recorded when the corresponding sale occurs.

Under the license and collaboration agreement, Biogen appointed the Company as the toll manufacturer of clinical and commercial supplies of VUMERITY, subject to Biogen’s right to manufacture or have manufactured commercial supplies as a back-up manufacturer and subject to good faith agreement by the parties on the terms of such manufacturing arrangements. In October 2019, the Company entered into a commercial supply agreement with Biogen for the commercial supply of VUMERITY, an amendment to such commercial supply agreement and an amendment to the November 2017 license and collaboration agreement with Biogen. Under these agreements, Biogen has an option to assume responsibility, subject to a transition period, for the manufacture (itself or through a designee) of clinical supplies of VUMERITY and up to 100% of commercial supplies of VUMERITY in exchange for an increase in the royalty rate to be paid by Biogen to the Company on net sales of product that is manufactured by Biogen or its designee. The Company evaluated the commercial supply agreement and the related amendments under Topic 606 and determined that these agreements should be combined and accounted for as a separate contract since the commercial supply agreement and amendment to the November 2017 license and collaboration agreement were negotiated together to achieve a common economic objective and the additional performance obligations under the commercial supply agreement are considered distinct obligations priced at their standalone selling prices. The Company determined that it had two separate performance obligations, the commercial supply of VUMERITY and, upon an election by Biogen to commence a transfer of technology relating to the manufacture of

VUMERITY (a “Tech Transfer”), services to be performed by the Company in connection with such Tech Transfer. There are other deliverables under the agreements that were determined to be perfunctory or immaterial.

In connection with the entry into the commercial supply agreement and the related amendments, the Company received payments in the aggregate amount of $5.8 million in the fourth quarter of 2019 and, if Biogen opts to assume responsibility for the manufacture of VUMERITY, the Company will be eligible to receive an additional $5.0 million payment upon the earlier of successful completion of the Tech Transfer or a date in the fourth quarter of 2022. The $5.8 million received in the fourth quarter of 2019 plus amounts received in connection with the Tech Transfer, if any, will be allocated to each of the performance obligations using the standalone selling prices based on the Company’s estimate of selling price for the commercial supply of VUMERITY and the services related to the Tech Transfer, and this additional arrangement consideration will be recognized as the Company delivers commercial supply of VUMERITY and/or provides services relating to the Tech Transfer. The Company expects to begin performing under this commercial supply agreement in the first quarter of 2020.

Investments - Schedule of Contractual Maturities of Available-for-Sale and Held-to-Maturity Securities (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Available-for-sale, Amortized Cost
Within 1 year	$ 216,084
After 1 year through 5 years	189,654
Amortized Cost	405,738
Available-for-sale, Estimated Fair Value
Within 1 year	216,764
After 1 year through 5 years	190,246
Total	407,010
Held-to-maturity, Amortized Cost
Within 1 year	1,820
After 1 year through 5 years	1,667
Total	3,487
Held-to-maturity, Estimated Fair Value
Within 1 year	1,820
After 1 year through 5 years	1,769
Total	$ 3,589

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2016
Income Taxes [Line Items]
Tax expense from enactment of Tax Cuts and Jobs Act		$ 21,453
Cumulative unremitted earnings of overseas subsidiaries	$ 418,100
Deferred tax asset in respect of accrued lease liability	4,300
Deferred tax liability in respect of right to use asset	4,300
Less: valuation allowance	(242,059)	(172,797)	$ (219,093)	$ (141,859)
Federal research and development credits	49,600
State tax credits	$ 18,000
Minimum
Income Taxes [Line Items]
Period after loss carryforwards utilized that tax returns remain open to examination	3 years
Maximum
Income Taxes [Line Items]
Period after loss carryforwards utilized that tax returns remain open to examination	4 years
U.S. state
Income Taxes [Line Items]
Less: valuation allowance	$ (17,300)
Operating loss carryforwards	44,500
U.S. state \| Rodin Therapeutics, Inc.
Income Taxes [Line Items]
Operating loss carryforwards	43,300
Federal research and development credits	400
U.S. federal
Income Taxes [Line Items]
Tax expense from enactment of Tax Cuts and Jobs Act		$ 21,500
Operating loss carryforwards	49,500
U.S. federal \| Rodin Therapeutics, Inc.
Income Taxes [Line Items]
Operating loss carryforwards	51,400
Federal research and development credits	800
Ireland
Income Taxes [Line Items]
Income taxes payable on repatriation of unremitted earnings	12,900
Less: valuation allowance	(224,800)
Operating loss carryforwards	$ 1,500,000

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands		12 Months Ended
	Jan. 01, 2017 USD ($)	Dec. 31, 2019 USD ($) segment	Dec. 31, 2019 EUR (€) segment	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jan. 01, 2019 USD ($)	Jan. 01, 2018 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Accumulated deficit		$ (1,381,988)		$ (1,185,368)
Allowance for doubtful accounts		200		200
(Loss) gain on foreign currency translation		$ (900)		$ (2,300)	$ 3,700
Threshold percentage for disclosure of revenue and receivables		10.00%	10.00%	10.00%	10.00%
Advertising Expense		$ 31,100		$ 54,700	$ 34,400
Number of business segments \| segment		1	1
Operating lease, right-of-use asset		$ 12,379				$ 20,100
Operating lease liability		$ 13,808				$ 22,100
401 (K) Plan
Summary Of Significant Accounting Policies [Line Items]
Employee contribution limit as a percentage of their eligible compensation		100.00%	100.00%
Percentage of employer contribution matched of the first employee pay		100.00%	100.00%
Maximum employee contribution limit as a percentage of their total taxable earnings		5.00%	5.00%
Employer contribution		$ 14,800		12,100	9,800
Defined Contribution Plan
Summary Of Significant Accounting Policies [Line Items]
Maximum employee contribution limit as a percentage of their total taxable earnings		40.00%	40.00%
Employer contribution		$ 4,100		$ 4,000	$ 3,700
Per employee contribution limit \| €			€ 115,000
Maximum percentage of employer contribution matched of employee's		18.00%	18.00%
Time-Based Stock Options
Summary Of Significant Accounting Policies [Line Items]
Expiration period		10 years	10 years
Vesting rights per year (as a percent)		25.00%	25.00%
Vesting period		4 years	4 years
Time-Based Stock Options \| Non-employee Directors
Summary Of Significant Accounting Policies [Line Items]
Expiration period		10 years	10 years
Vesting period		1 year	1 year
Time-vested RSUs
Summary Of Significant Accounting Policies [Line Items]
Vesting rights per year (as a percent)		25.00%	25.00%
Vesting period		4 years	4 years
Minimum
Summary Of Significant Accounting Policies [Line Items]
Manufacturing Process period		10 days	10 days
Maximum
Summary Of Significant Accounting Policies [Line Items]
Manufacturing Process period		56 days	56 days
Manufacturing and royalty revenues \| Minimum
Summary Of Significant Accounting Policies [Line Items]
Payment terms in number of days		30 days	30 days
Manufacturing and royalty revenues \| Maximum
Summary Of Significant Accounting Policies [Line Items]
Payment terms in number of days		90 days	90 days
VUMERITY \| Other Assets \| Biogen
Summary Of Significant Accounting Policies [Line Items]
Contract assets, noncurrent		$ 5,000
Contract with customer assets expected to receive period		3 years	3 years
ASU 2014-09 \| Adjustment
Summary Of Significant Accounting Policies [Line Items]
Accumulated deficit							$ 818
ASU 2016-09
Summary Of Significant Accounting Policies [Line Items]
Cumulative-effect adjustment to reduce accumulated deficit	$ 61,500

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Schedule of Estimated Useful Life of Property, Plant and Equipment

Asset group		Term
Buildings and improvements		15 - 40 years
Furniture, fixtures and equipment		3 - 10 years
Leasehold improvements		Shorter of useful life or lease term

Schedule of Balance Sheet Accounts Impacted for Topic 606

The following balance sheet accounts were impacted:

(In thousands)	Topic 606 Adjustment
Contract assets	$	9,110
Inventory		(8,209	)
Deferred tax asset		109
Contract liabilities—short-term		(1,104	)
Contract liabilities—long-term		(724	)
Accumulated deficit		818
	$	—

Schedule of Contract Assets and Contract Liabilities

Contract assets consisted of the following:

(In thousands)	Contract Assets
Contract assets at January 1, 2018	$	9,110
Additions		57,617
Transferred to receivables, net		(58,497	)
Contract assets at December 31, 2018		8,230
Additions		37,911
Transferred to receivables, net		(32,755	)
Contract assets at December 31, 2019	$	13,386

Contract liabilities consisted of the following:

(In thousands)	Contract Liabilities
Contract liabilities at January 1, 2018	$	9,442
Additions		6,381
Amounts recognized into revenue		(3,129	)
Contract liabilities at December 31, 2018		12,694
Additions		18,677
Amounts recognized into revenue		(2,537	)
Contract liabilities at December 31, 2019	$	28,834

Schedule of Revenue and Receivables From Customers Exceeding 10% of Total in Each Category

The following represents revenue and receivables from the Company’s customers exceeding 10% of the total in each category as of, and for the years ended, December 31, 2019, 2018 and 2017:

	Year Ended December 31,
	2019				2018				2017
Customer	Receivables		Revenue		Receivables		Revenue		Receivables		Revenue
Janssen	29	%	28	%	27	%	29	%	31	%	33	%
Biogen	*		17	%	*		10	%	*		*
Cardinal Health	12	%	*		*		13	%	*		*
AmerisourceBergen	10	%	*		*		*		*		*
Acorda	*		*		15	%	10	%	14	%	13	%

Schedule of Revenues by Geographic Location, as Determined by the Location of the Customer, and the Location of its Long-term Assets

Company revenues by geographic location, as determined by the location of the customer, and the location of its assets, are as follows:

	Year Ended December 31,
(In thousands)	2019		2018		2017
Revenue by region:
U.S.	$	966,929	$	884,600	$	700,090
Ireland		3,195		4,915		9,706
Rest of world		200,823		204,759		193,578
Assets by region:
Current assets:
U.S.	$	551,799	$	546,533	$	402,481
Ireland		407,791		433,837		403,167
Rest of world		2,381		2,882		3,196
Long-term assets:
U.S.:
Other	$	382,029	$	312,243	$	360,641
Ireland:
Intangible assets	$	150,643	$	191,001	$	256,168
Goodwill		92,873		92,873		92,873
Other		217,887		245,638		278,701

Schedule of Fair Value of Each Stock Option Grant Estimated on The Grant Date Using Weighted-average Assumptions

The fair value of each stock option grant was estimated on the grant date with the following weighted‑average assumptions:

	Year Ended December 31,
	2019	2018	2017
Expected option term	5 - 7 years	5 - 8 years	5 - 8 years
Expected stock volatility	46 % - 50 %	44 % - 49 %	43 % - 47 %
Risk-free interest rate	1.34 % - 2.59 %	2.25 % - 3.10 %	1.69 % - 2.38 %
Expected annual dividend yield	—	—	—

Summary of Estimated Fair Value of Stock Options

The Monte Carlo simulation model used the following assumptions:

Grant Date

Weighted-Average

Expected Volatility

Cost of Equity

Risk-Free

Interest Rate

February 21, 2019

45.0%

12.0%

2.69%

Investments - Schedule of Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale securities:
Amortized Cost	$ 405,738
Estimated Fair Value	407,010
Held-to-maturity securities:
Estimated Fair Value	3,589
Long-term Investments
Total long-term investments	79,391	$ 80,744
Total investments
Amortized Cost	409,225	353,758
Gross Unrealized Gains	1,460	393
Gross Unrealized Losses, Less than One Year	(78)	(291)
Gross Unrealized Losses, Greater than One Year	(8)	(583)
Estimated Fair Value	410,599	353,277
Short-term Investments
Amortized Cost	329,862	272,835
Gross Unrealized Gains	1,358	257
Gross Unrealized Losses, Less than One Year	(11)	(81)
Gross Unrealized Losses, Greater than One Year	(1)	(478)
Total short-term investments	331,208	272,533
Short-term investments
Available-for-sale securities:
Amortized Cost		272,343
Gross Unrealized Gains		257
Gross Unrealized Losses, Less than One Year		(81)
Gross Unrealized Losses, Greater than One Year		(478)
Estimated Fair Value		272,041
Short-term investments \| U.S. government and agency debt securities
Available-for-sale securities:
Amortized Cost	112,948	80,055
Gross Unrealized Gains	434	115
Gross Unrealized Losses, Less than One Year	(1)	(11)
Gross Unrealized Losses, Greater than One Year	(1)	(87)
Estimated Fair Value	113,380	80,072
Short-term investments \| Corporate debt securities
Available-for-sale securities:
Amortized Cost	144,161	120,197
Gross Unrealized Gains	676	57
Gross Unrealized Losses, Less than One Year		(62)
Gross Unrealized Losses, Greater than One Year		(274)
Estimated Fair Value	144,837	119,918
Held-to-maturity securities:
Amortized Cost		492
Estimated Fair Value		492
Short-term investments \| International government agency debt securities
Available-for-sale securities:
Amortized Cost	72,753	72,091
Gross Unrealized Gains	248	85
Gross Unrealized Losses, Less than One Year	(10)	(8)
Gross Unrealized Losses, Greater than One Year		(117)
Estimated Fair Value	72,991	72,051
Long-term investments
Available-for-sale securities:
Amortized Cost	75,876	77,436
Gross Unrealized Losses, Less than One Year	(67)	(210)
Gross Unrealized Losses, Greater than One Year	(7)	(105)
Estimated Fair Value	75,802	77,121
Held-to-maturity securities:
Amortized Cost	3,487	3,487
Gross Unrealized Gains	102	136
Estimated Fair Value	3,589	3,623
Long-term Investments
Amortized Cost	79,363	80,923
Gross Unrealized Gains	102	136
Gross Unrealized Losses, Less than One Year	(67)	(210)
Gross Unrealized Losses, Greater than One Year	(7)	(105)
Total long-term investments	79,391	80,744
Long-term investments \| Certificates of deposit
Held-to-maturity securities:
Amortized Cost	1,820	1,820
Estimated Fair Value	1,820	1,820
Long-term investments \| U.S. government and agency debt securities
Available-for-sale securities:
Amortized Cost	4,000	18,474
Gross Unrealized Losses, Less than One Year	(4)	(21)
Gross Unrealized Losses, Greater than One Year		(12)
Estimated Fair Value	3,996	18,441
Long-term investments \| Corporate debt securities
Available-for-sale securities:
Amortized Cost	51,070	53,505
Gross Unrealized Losses, Less than One Year	(45)	(185)
Gross Unrealized Losses, Greater than One Year	(7)	(93)
Estimated Fair Value	51,018	53,227
Long-term investments \| International government agency debt securities
Available-for-sale securities:
Amortized Cost	20,806	5,457
Gross Unrealized Losses, Less than One Year	(18)	(4)
Estimated Fair Value	20,788	5,453
Long-term investments \| Fixed Term Deposit Account
Held-to-maturity securities:
Amortized Cost	1,667	1,667
Gross Unrealized Gains	102	136
Estimated Fair Value	$ 1,769	$ 1,803

Commitments and Contingent Liabilities

12 Months Ended

Dec. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingent Liabilities

19. COMMITMENTS AND CONTINGENT LIABILITIES

Litigation

From time to time, the Company may be subject to legal proceedings and claims in the ordinary course of business. On a quarterly basis, the Company reviews the status of each significant matter and assesses its potential financial exposure. If the potential loss from any claim, asserted or unasserted, or legal proceeding is considered probable and the amount can be reasonably estimated, the Company would accrue a liability for the estimated loss. Because of uncertainties related to claims and litigation, accruals are based on the Company’s best estimates based on available information. On a periodic basis, as additional information becomes available, or based on specific events such as the outcome of litigation or settlement of claims, the Company may reassess the potential liability related to these matters and may revise these estimates, which could result in material adverse adjustments to the Company’s operating results. At December 31, 2019, there were no potential material losses from claims, asserted or unasserted, or legal proceedings that the Company determined were probable of occurring.

INVEGA SUSTENNA ANDA Litigation

In January 2018 and in August 2019, Janssen Pharmaceuticals NV and Janssen Pharmaceuticals, Inc. initiated patent infringement lawsuits in the United States District Court for the District of New Jersey against Teva entities (Teva Pharmaceuticals USA, Inc.(“Teva”) and Teva Pharmaceuticals Industries, Ltd. (“Teva PI”)) and Mylan entities (Mylan Laboratories Limited (“Mylan Labs”), Mylan Pharmaceuticals Inc. (“Mylan”), and Mylan Institutional LLC), respectively, following filings by each of Teva and Mylan Labs of an abbreviated new drug application (“ANDA”) seeking approval to market a generic version of INVEGA SUSTENNA before the expiration of U.S. Patent No. 9,439,906. Requested judicial remedies in each of the lawsuits included recovery of litigation costs and injunctive relief. The Company is not a party to either of these proceedings.

For information about risks relating to the INVEGA SUSTENNA Paragraph IV litigation, see “Item 1A—Risk Factors” in this Annual Report and specifically the section entitled “—We or our licensees may face claims against intellectual property rights covering our products and competition from generic drug manufacturers.”

AMPYRA ANDA Litigation

Eleven separate Paragraph IV Certification Notices had been received by the Company and/or its partner Acorda from: Accord Healthcare, Inc. (“Accord”); Actavis Laboratories FL, Inc. (“Actavis”); Alkem Laboratories Ltd. (“Alkem”); Apotex Corporation and Apotex, Inc. (collectively, “Apotex”); Aurobindo Pharma Ltd. (“Aurobindo”); MicroLabs Limited (“MicroLabs”); Mylan; Par Pharmaceutical, Inc. (“Par”); Roxane Laboratories, Inc. (“Roxane”); Sun Pharmaceutical Industries Limited and Sun Pharmaceuticals Industries Inc. (collectively, “Sun”); and Teva (collectively with Accord, Actavis, Alkem, Apotex, Aurobindo, MicroLabs, Mylan, Par, Roxane and Sun, the “ANDA Filers”) advising that each of the ANDA Filers had submitted an ANDA to the FDA seeking marketing approval for generic versions of AMPYRA (dalfampridine) Extended-Release Tablets, 10 mg. The ANDA Filers challenged the validity of one or more of the Orange Book-listed patents for AMPYRA, and they also asserted that their generic versions do not infringe certain claims of these patents. In response, the Company and/or Acorda filed lawsuits against the ANDA Filers asserting infringement of one or more of the Orange Book-listed patents for AMPYRA. Requested judicial remedies included recovery of litigation costs and injunctive relief.

All lawsuits were filed within 45 days from the date of receipt of each of the Paragraph IV Certification Notices from the ANDA Filers. As a result, a 30-month statutory stay of approval period applied to each of the ANDA Filers’ ANDAs under the U.S. Drug Price Competition and Patent Term Restoration Act of 1984 (the “Hatch-Waxman Act”). The first 30-month stay restricted the FDA from approving the ANDA Filers’ ANDAs until July 2017 at the earliest, unless a Federal district court issued a decision adverse to all of the asserted Orange Book-listed patents prior to that date. Lawsuits with eight of the ANDA Filers were consolidated into a single case.

The Company and/or Acorda entered into a settlement agreement with each of Accord, Actavis, Alkem, Apotex, Aurobindo, MicroLabs, Par and Sun to resolve the patent litigation that the Company and/or Acorda brought against these settling ANDA Filers. The settlements with these settling ANDA Filers did not impact the patent litigation that the Company and Acorda brought against the remaining ANDA Filers, including as described below.

In March 2017, after a bench trial, the U.S. District Court for the District of Delaware (the “Delaware Court”) issued an opinion (the “Delaware Court Decision”), which, among other things, invalidated U.S. Patent Nos. 8,007,826; 8,354,437; 8,440,703; and 8,663,685. The Delaware Court also upheld the validity of the U.S. Patent No. 5,540,938, which pertained to the formulation of AMPYRA, but that patent expired on July 30, 2018. In May 2017, Acorda filed an appeal with the Federal Circuit of the Delaware Court Decision with respect to the findings on U.S. Patent Nos. 8,007,826; 8,354,437; 8,440,703; and 8,663,685. On September 10, 2018, the Federal Circuit affirmed the Delaware Court Decision, which invalidated U.S. Patent Nos. 8,007,826; 8,354,437; 8,440,703; and 8,663,685. In October 2018, Acorda filed a petition for rehearing and rehearing en banc of the Federal Circuit’s decision. In January 2019, the Federal Circuit denied Acorda’s petition. In April 2019, Acorda filed a petition for writ of certiorari to the Supreme Court of the United States (the “Supreme Court”). On October 7, 2019, the Supreme Court denied Acorda’s petition requesting review of the case, rendering the Federal Circuit decision as final.

For information about risks relating to the AMPYRA Paragraph IV litigations and other proceedings see “Item 1A—Risk Factors” of this Annual Report and specifically the section entitled “—We or our licensees may face claims against intellectual property rights covering our products and competition from generic drug manufacturers.”

RISPERDAL CONSTA European Opposition Proceedings

In December 2016, Nanjing Luye Pharmaceutical Co., Ltd., Pharmathen SA, Teva PI and Dehns Ltd (a law firm representing an unidentified opponent) filed notices of opposition with the European Patent Office (the “EPO”) in respect of EP 2 269 577 B (the “EP ’577” Patent), which is a patent directed to certain risperidone microsphere compositions, including RISPERDAL CONSTA. Following a hearing on the matter in January 2019, the EPO issued a written decision revoking the EP’577 Patent in April 2019. The Company filed a notice of appeal of the decision to the EPO’s Technical Boards of Appeal in June 2019. Pharmathen SA submitted a reply on November 5, 2019. The Company will continue to vigorously defend the EP ’577 Patent. For information about risks relating to the EP ’577 Patent opposition proceedings see “Item 1A—Risk Factors” in this Annual Report, including the sections entitled “—Patent protection for our products is important and uncertain” and “—Uncertainty over intellectual property in the biopharmaceutical industry has been the source of litigation, which is inherently costly and unpredictable, could significantly delay or prevent approval or commercialization of our products, and could adversely affect our business.”

RISPERDAL CONSTA ANDA Litigation

On July 17, 2019, the Company, together with Janssen Pharmaceuticals, Inc., initiated a patent infringement lawsuit in the United States District Court for the District of Delaware (the “Delaware District Court”) against Luye Pharma Group Ltd., Luye Pharma (USA) Ltd., Nanjing Luye Pharmaceutical Co., Ltd. and Shandong Luye Pharmaceutical Co., Ltd. (collectively, “Luye”). Luye filed a 505(b)(2) NDA seeking approval to market a competing product to RISPERDAL CONSTA before the expiration of U.S. Patent No. 6,667,061. Requested judicial remedies included, among other things, recovery of litigation costs and injunctive relief. On July 23, 2019, Luye filed its answer and affirmative defenses. On November 22, 2019, the parties submitted a stipulation and order of dismissal to the Delaware District Court stating that the parties had resolved the litigation. On December 2, 2019, the Delaware District Court signed the stipulation and order of dismissal terminating the lawsuit.

Government Matters

On June 22, 2017 and January 17, 2019, the Company received a subpoena and a civil investigative demand, respectively, each from an Office of the U.S. Attorney for documents related to VIVITROL. The Company is cooperating with the government.

Securities Litigation

In December 2018 and January 2019, purported stockholders of the Company filed putative class actions against the Company and certain of its officers in the United States District Court for the Eastern District of New York (the “EDNY District Court”) captioned Karimian v. Alkermes plc, et al., No. 1:18-cv-07410 and McDermott v. Alkermes plc, et al., No. 1:19-cv-00624, respectively. In March 2019, the EDNY District Court consolidated the two cases and appointed a lead plaintiff. The plaintiff filed an amended complaint on July 9, 2019 naming one additional officer of the Company and one former officer of the Company as defendants. The amended complaint was filed on behalf of a putative class of purchasers of Alkermes securities during the period of July 31, 2014 through November 1, 2018 and alleges violations of Sections 10(b) and 20(a) of the Exchange Act based on allegedly false or misleading statements and omissions regarding the Company’s clinical methodologies and regulatory submission for ALKS 5461 and the FDA’s review and consideration of that submission. The lawsuit seeks, among other things, unspecified money damages, prejudgment and postjudgment interest, reasonable attorneys’ fees, expert fees and other costs. In August 2019, the defendants filed a pre-motion letter (in respect of a requested motion to dismiss filing) with the EDNY District Court and plaintiff filed a response. On November 27, 2019, the defendants served the plaintiff with a motion to dismiss, and on December 27, 2019, the plaintiff served the defendants with its opposition to such motion. On January 17, 2020, the defendants filed the fully-briefed motion, including a reply to the plaintiff’s opposition, with the EDNY District Court. For information about risks relating to this action, see “Item 1A—Risk Factors” in the Annual Report, including the section entitled “—Litigation or arbitration against Alkermes, including securities litigation, or citizen petitions filed with the FDA, may result in financial losses, harm our reputation, divert management resources, negatively impact the approval of our products, or otherwise negatively impact our business.”

Purchase Commitments

The Company has open purchase orders for materials, supplies, services and property, plant and equipment as part of the normal course of business. At December 31, 2019, the Company had open purchase orders totaling $395.3 million and $33.5 million for non-capital and capital commitments, respectively.

Income Taxes - Schedule of Activity in Valuation Allowance Associated with Deferred taxes (Parenthetical) (Details) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Rodin Therapeutics, Inc.
Income Taxes [Line Items]
Valuation allowance increased due to acquisition	$ 3.0

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Ordinary Shares	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Treasury Stock
BALANCE at Dec. 31, 2016	$ 1,209,481	$ 1,539	$ 2,231,797	$ (3,274)	$ (947,942)	$ (72,639)
BALANCE (in shares) at Dec. 31, 2016		154,191,281				(1,760,767)
Issuance of ordinary shares under employee stock plans	23,517	$ 16	23,501
Issuance of ordinary shares under employee stock plans (in shares)		1,850,084
Receipt of Alkermes' shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share-based awards	(16,433)	$ 2	273			$ (16,708)
Receipt of Alkermes' shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share based awards (in shares)		16,267				(287,409)
Share-based compensation expense	83,184		83,184
Unrealized gain (loss) on marketable securities, net of tax provision (benefit)	(518)			(518)
Cumulative effect adjustment related to change in accounting for excess tax benefits	61,522				61,522
Net loss	(157,945)				(157,945)
BALANCE at Dec. 31, 2017	1,202,808	$ 1,557	2,338,755	(3,792)	(1,044,365)	$ (89,347)
BALANCE (in shares) at Dec. 31, 2017		156,057,632				(2,048,176)
Issuance of ordinary shares under employee stock plans	20,877	$ 11	20,866
Issuance of ordinary shares under employee stock plans (in shares)		1,087,815
Receipt of Alkermes' shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share-based awards	(19,622)	$ 11	(11)			$ (19,622)
Receipt of Alkermes' shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share based awards (in shares)		1,035,386				(375,313)
Share-based compensation expense	107,713		107,713
Unrealized gain (loss) on marketable securities, net of tax provision (benefit)	512			512
Cumulative effect adjustment related to the adoption of new accounting standards	(1,692)				(1,692)
Net loss	(139,311)				(139,311)
BALANCE at Dec. 31, 2018	1,171,285	$ 1,579	2,467,323	(3,280)	(1,185,368)	$ (108,969)
BALANCE (in shares) at Dec. 31, 2018		158,180,833				(2,423,489)
Issuance of ordinary shares under employee stock plans	18,925	$ 15	18,910
Issuance of ordinary shares under employee stock plans (in shares)		1,510,177
Receipt of Alkermes' shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share-based awards	(9,317)	$ 8	92			$ (9,417)
Receipt of Alkermes' shares for the purchase of stock options or to satisfy minimum tax withholding obligations related to share based awards (in shares)		798,878				(287,397)
Share-based compensation expense	99,705		99,705
Unrealized gain (loss) on marketable securities, net of tax provision (benefit)	1,464			1,464
Net loss	(196,620)				(196,620)
BALANCE at Dec. 31, 2019	$ 1,085,442	$ 1,602	$ 2,586,030	$ (1,816)	$ (1,381,988)	$ (118,386)
BALANCE (in shares) at Dec. 31, 2019		160,489,888				(2,710,886)

Share-based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Share-based Compensation Expense

The following table presents share‑based compensation expense included in the Company’s consolidated statements of operations and comprehensive loss:


	Year Ended December 31,
(In thousands)	2019		2018		2017
Cost of goods manufactured and sold	$	9,948	$	9,174	$	7,596
Research and development		29,924		32,943		22,635
Selling, general and administrative		61,105		63,240		53,686
Total share-based compensation expense	$	100,977	$	105,357	$	83,917

Schedule of Stock Option Activity

A summary of stock option activity is presented in the following table:

	Number of			Weighted Average
	Shares			Exercise Price
Outstanding, January 1, 2019		14,852,457		$	40.48
Granted		3,812,103		$	31.49
Exercised		(1,515,957	)	$	12.55
Expired		(1,104,967	)	$	48.42
Forfeited		(807,791	)	$	42.32
Outstanding, December 31, 2019		15,235,845		$	40.34
Exercisable, December 31, 2019		9,874,065		$	39.15

Time-vested RSUs

Summary of RSU Activity

A summary of time‑vested RSU activity is presented in the following table:

				Weighted Average
	Number of Shares			Grant Date Fair Value
Unvested, January 1, 2019		2,266,286		$	55.32
Granted		2,826,092		$	30.47
Vested		(791,484	)	$	53.62
Forfeited		(556,094	)	$	41.44
Unvested, December 31, 2019		3,744,800		$	38.99

Performance-based RSUs

Summary of RSU Activity

A summary of performance-based RSU activity is presented in the following table:

				Weighted Average
	Number of Shares			Grant Date Fair Value
Unvested, January 1, 2019		626,168		$	54.75
Granted		—		$	—
Forfeited		(81,000	)	$	54.77
Vested		(1,614	)	$	48.48
Unvested, December 31, 2019		543,554		$	54.75

Fair Value (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Summary of the Company's Assets and Liabilities Measured at Fair Value on a Recurring Basis

	December 31,
(In thousands)	2019		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	8,064	$	8,064	$	—	$	—
U.S. government and agency debt securities		117,376		73,795		43,581		—
Corporate debt securities		195,855		—		193,902		1,953
International government agency debt securities		93,779		—		93,779		—
Contingent consideration		32,400		—		—		32,400
Total	$	447,474	$	81,859	$	331,262	$	34,353

	December 31,
	2018		Level 1		Level 2		Level 3
Assets:
Cash equivalents	$	54,590	$	54,590	$	—	$	—
U.S. government and agency debt securities		98,513		60,107		38,406		—
Corporate debt securities		173,637		—		173,145		492
International government agency debt securities		77,504		—		77,504		—
Contingent consideration		65,200		—		—		65,200
Common stock warrants		1,205		—		—		1,205
Total	$	470,649	$	114,697	$	289,055	$	66,897

Rollforward of the Fair Value of the Assets Determined using Level 3 Inputs

The following table is a rollforward of the fair value of the Company’s investments whose fair value was determined using Level 3 inputs at December 31, 2019:

(In thousands)	Fair Value
Balance, January 1, 2019	$	66,897
Purchase of corporate debt security		1,953
Change in the fair value of warrants		1,837
Change in the fair value of contingent consideration		(22,800	)
Payments received from contingent consideration		(10,000	)
Proceeds from the sale of shares acquired upon exercise of warrants		(3,042	)
Impairment of corporate debt security		(492	)
Balance, December 31, 2019	$	34,353

Share-based Compensation - Summary of PRSU Activity (Details) - Performance-based RSUs	12 Months Ended
	Dec. 31, 2019 $ / shares shares
Number of Shares
Unvested at the beginning of the period (in shares) \| shares	626,168
Forfeited (in shares) \| shares	(81,000)
Vested (in shares) \| shares	(1,614)
Unvested at the end of the period (in shares) \| shares	543,554
Weighted Average Grant Date Fair Value
Unvested at the beginning of the period (in dollars per share) \| $ / shares	$ 54.75
Forfeited (in dollars per share) \| $ / shares	54.77
Vested (in dollars per share) \| $ / shares	48.48
Unvested at the end of the period (in dollars per share) \| $ / shares	$ 54.75

Acquisition (Tables)

12 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Schedule of Assets Acquired, Liabilities Assumed and Amounts Expensed

The following were the amounts allocated to the assets acquired, liabilities assumed and amounts expensed at the acquisition date based on their respective fair values:

(In thousands)
Cash	2,658
Prepaid expenses and other current assets	461
Deferred tax assets	11,642
Right-of-use assets	637
Other assets	137
Accounts payable and accrued expenses	(3,364	)
Operating lease liabilities—short-term	(400	)
Operating lease liabilities—long-term	(237	)
Research and development expense	86,594

Share-based Compensation - Additional Information (Details) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) item shares	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Share-based compensation Expense
Number of share-based compensation plan under which awards are currently made	2
Number of share-based compensation plan under which no further awards will be made	1
Shares of common stock available for issuance \| shares	10.6
2011 Plan and 2018 Plan
Share-based compensation Expense
Ratio of awards other than stock options counted against the total number of shares available for issuance	1.8
Inventory
Share-based compensation Expense
Share based compensation cost capitalized \| $	$ 1.5	$ 2.7	$ 0.4

Income Taxes - Schedule of Activity in Valuation Allowance Associated with Deferred taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Balance at Beginning of Period	$ (219,093)	$ (172,797)	$ (141,859)
Additions	(22,966)	(46,296)	(30,938)
Balance at End of Period	$ (242,059)	$ (219,093)	$ (172,797)

Inventory - Schedule of Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Inventory Disclosure [Abstract]
Raw materials	$ 34,577	$ 31,824
Work in process	54,061	38,019
Finished goods	13,165	20,353
Total inventory	$ 101,803	$ 90,196

Income Taxes - Schedule of Reconciliation of Statutory Tax Rate to Effective Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of effective income tax rate
Statutory tax rate (as a percent)	12.50%	12.50%	12.50%
Income tax provision at statutory rate	$ (24,632)	$ (15,871)	$ (17,909)
Change in valuation allowance	19,882	28,371	26,771
In-process R&D	10,824
Share-based compensation	6,287	1,163	(1,205)
Foreign rate differential	5,390	5,405	(682)
U.S. state income taxes, net of U.S. federal benefit	1,051	1,732	(558)
Foreign derived intangible income	(3,450)
Intercompany amounts	(1,125)	(751)	(5,041)
R&D credit	(8,846)	(7,698)	(9,326)
Federal tax law change	(8,111)
Federal tax law change			21,453
Irish rate differential	(146)	(2,350)	(2,675)
Impairment on equity method investment			1,662
Other permanent items	2,440	2,343	2,181
Total tax (benefit) provision	$ (436)	$ 12,344	$ 14,671
Effective tax rate (as a percent)	0.20%	(9.70%)	(10.20%)

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Summary of Future Lease Payments Under Non-Cancelable Leases

Future lease payments under non-cancelable leases as of December 31, 2019 consisted of the following:

	December 31,
(In thousands)	2019
2020	$	9,053
2021		2,727
2022		500
2023		509
2024		520
Thereafter		2,579
Total lease payments	$	15,888
Less: imputed interest		(2,080	)
Total operating lease liabilities	$	13,808

Summary of Future Lease Payments Under Non-Cancelable Leases

For comparable purposes, future lease payments under non-cancelable leases as of December 31, 2018 consisted of the following:

	December 31,
(In thousands)	2018
2019	$	9,394
2020		10,717
2021		4,706
2022		2,455
2023		2,389
Thereafter		23,940
Total lease payments	$	53,601

Summary of Significant Accounting Policies - Schedule of Revenues by Geographic Location (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Geographic Information
Revenue by region:	$ 1,170,947	$ 1,094,274	$ 903,374
Current assets:	961,970	983,252
Long-term assets:
OTHER ASSETS	17,021	16,143
Intangible assets	150,643	191,001
GOODWILL	92,873	92,873
U.S.
Geographic Information
Revenue by region:	966,929	884,600	700,090
Current assets:	551,799	546,533	402,481
Long-term assets:
OTHER ASSETS	382,029	312,243	360,641
Ireland
Geographic Information
Revenue by region:	3,195	4,915	9,706
Current assets:	407,791	433,837	403,167
Long-term assets:
OTHER ASSETS	217,887	245,638	278,701
Intangible assets	150,643	191,001	256,168
GOODWILL	92,873	92,873	92,873
Rest of world
Geographic Information
Revenue by region:	200,823	204,759	193,578
Current assets:	$ 2,381	$ 2,882	$ 3,196

Fair Value - Summary of the Company's Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair value
Debt securities	$ 407,010
Contingent consideration	32,400	$ 65,200
Recurring Basis
Fair value
Cash equivalents	8,064	54,590
Contingent consideration	32,400	65,200
Common stock warrants		1,205
Assets, Total	447,474	470,649
Recurring Basis \| Level 1
Fair value
Cash equivalents	8,064	54,590
Assets, Total	81,859	114,697
Recurring Basis \| Level 2
Fair value
Assets, Total	331,262	289,055
Recurring Basis \| Level 3
Fair value
Contingent consideration	32,400	65,200
Common stock warrants		1,205
Assets, Total	34,353	66,897
U.S. government and agency debt securities \| Recurring Basis
Fair value
Debt securities	117,376	98,513
U.S. government and agency debt securities \| Recurring Basis \| Level 1
Fair value
Debt securities	73,795	60,107
U.S. government and agency debt securities \| Recurring Basis \| Level 2
Fair value
Debt securities	43,581	38,406
Corporate debt securities \| Recurring Basis
Fair value
Debt securities	195,855	173,637
Corporate debt securities \| Recurring Basis \| Level 2
Fair value
Debt securities	193,902	173,145
Corporate debt securities \| Recurring Basis \| Level 3
Fair value
Debt securities	1,953	492
International government agency debt securities \| Recurring Basis
Fair value
Debt securities	93,779	77,504
International government agency debt securities \| Recurring Basis \| Level 2
Fair value
Debt securities	$ 93,779	$ 77,504

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Use of Estimates

Cash and Cash Equivalents

Investments

Fair Value of Financial Instruments

•

Inventory

Property, Plant and Equipment

Asset group		Term
Buildings and improvements		15 - 40 years
Furniture, fixtures and equipment		3 - 10 years
Leasehold improvements		Shorter of useful life or lease term

Contingent Consideration

Goodwill and Intangible Assets

Impairment of Long‑Lived Assets

Revenue from Contracts with Customers

(In thousands)	Topic 606 Adjustment
Contract assets	$	9,110
Inventory		(8,209	)
Deferred tax asset		109
Contract liabilities—short-term		(1,104	)
Contract liabilities—long-term		(724	)
Accumulated deficit		818
	$	—

Product Sales, Net

•

Collaborative Arrangements

Manufacturing Revenue

Royalty Revenue

Research and Development Revenue

License Revenue

Receivables, net

Contract Assets

Contract assets consisted of the following:

(In thousands)	Contract Assets
Contract assets at January 1, 2018	$	9,110
Additions		57,617
Transferred to receivables, net		(58,497	)
Contract assets at December 31, 2018		8,230
Additions		37,911
Transferred to receivables, net		(32,755	)
Contract assets at December 31, 2019	$	13,386

Contract Liabilities

The Company’s contract liabilities consist of contractual obligations related to deferred revenue.

Contract liabilities consisted of the following:

(In thousands)	Contract Liabilities
Contract liabilities at January 1, 2018	$	9,442
Additions		6,381
Amounts recognized into revenue		(3,129	)
Contract liabilities at December 31, 2018		12,694
Additions		18,677
Amounts recognized into revenue		(2,537	)
Contract liabilities at December 31, 2019	$	28,834

Foreign Currency

Concentrations

	Year Ended December 31,
	2019				2018				2017
Customer	Receivables		Revenue		Receivables		Revenue		Receivables		Revenue
Janssen	29	%	28	%	27	%	29	%	31	%	33	%
Biogen	*		17	%	*		10	%	*		*
Cardinal Health	12	%	*		*		13	%	*		*
AmerisourceBergen	10	%	*		*		*		*		*
Acorda	*		*		15	%	10	%	14	%	13	%


*		Indicates the revenues or receivables for the customer did not exceed 10% of the Company’s total in each category as of or for the years ended December 31, 2019, 2018 and 2017, as noted.

Geographic Information

Company revenues by geographic location, as determined by the location of the customer, and the location of its assets, are as follows:

	Year Ended December 31,
(In thousands)	2019		2018		2017
Revenue by region:
U.S.	$	966,929	$	884,600	$	700,090
Ireland		3,195		4,915		9,706
Rest of world		200,823		204,759		193,578
Assets by region:
Current assets:
U.S.	$	551,799	$	546,533	$	402,481
Ireland		407,791		433,837		403,167
Rest of world		2,381		2,882		3,196
Long-term assets:
U.S.:
Other	$	382,029	$	312,243	$	360,641
Ireland:
Intangible assets	$	150,643	$	191,001	$	256,168
Goodwill		92,873		92,873		92,873
Other		217,887		245,638		278,701

Research and Development Expenses

Selling, General and Administrative Expenses

Advertising costs are expensed as incurred. During the years ended December 31, 2019, 2018 and 2017, advertising costs totaled $31.1 million, $54.7 million and $34.4 million, respectively.

Share‑Based Compensation

Time-Based Stock Options

The fair value of each stock option grant was estimated on the grant date with the following weighted‑average assumptions:

	Year Ended December 31,
	2019	2018	2017
Expected option term	5 - 7 years	5 - 8 years	5 - 8 years
Expected stock volatility	46 % - 50 %	44 % - 49 %	43 % - 47 %
Risk-free interest rate	1.34 % - 2.59 %	2.25 % - 3.10 %	1.69 % - 2.38 %
Expected annual dividend yield	—	—	—

Performance-Based Stock Options

Grant Date

Weighted-Average

Expected Volatility

Cost of Equity

Risk-Free

Interest Rate

February 21, 2019

45.0%

12.0%

2.69%

Time‑Based Restricted Stock Units

Performance-Based Restricted Stock Units

Income Taxes

Comprehensive Loss

Loss Per Share

Segment Information

Employee Benefit Plans

401(k) Plan

Defined Contribution Plan

New Accounting Pronouncements

Accounts Payable and Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2019

Payables And Accruals [Abstract]

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consist of the following:

	December 31,		December 31,
(In thousands)	2019		2018
Accounts payable	$	54,261	$	39,767
Accrued compensation		72,072		67,613
Accrued sales discounts, allowances and reserves		153,902		152,911
Accrued other		92,802		73,471
Total accounts payable and accrued expenses	$	373,037	$	333,762

Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill
Gross Carrying Amount	$ 92,873	$ 92,873
Net Carrying Amount	92,873	92,873
Finite-lived intangible assets:
Gross Carrying Amount	582,750	582,750
Accumulated Amortization	(432,107)	(391,749)
Net Carrying Amount	$ 150,643	191,001
Collaboration agreements
Finite-lived intangible assets:
Weighted Amortizable Life	12 years
Gross Carrying Amount	$ 465,590	465,590
Accumulated Amortization	(348,595)	(319,311)
Net Carrying Amount	$ 116,995	146,279
NanoCrystal technology
Finite-lived intangible assets:
Weighted Amortizable Life	13 years
Gross Carrying Amount	$ 74,600	74,600
Accumulated Amortization	(46,773)	(38,942)
Net Carrying Amount	$ 27,827	35,658
OCR technologies
Finite-lived intangible assets:
Weighted Amortizable Life	12 years
Gross Carrying Amount	$ 42,560	42,560
Accumulated Amortization	(36,739)	(33,496)
Net Carrying Amount	$ 5,821	$ 9,064

Fair Value - Rollforward of the Fair Value of the Assets Determined using Level 3 Inputs (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019 USD ($)
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Balance at the beginning of the period	$ 66,897
Payments received from contingent consideration	(10,000)
Impairment of corporate debt security	(492)
Balance at the end of the period	34,353
Corporate Debt Security
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Purchase of corporate debt security	1,953
Change In The Fair Value Of Contingent Consideration
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Change in the fair value	(22,800)
Warrants
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Change in the fair value	1,837
Proceeds from the sale of shares acquired	(3,000)
Exercise of Warrants
Roll forward of the fair value of the Company's investments whose fair value was determined using Level 3 inputs
Proceeds from the sale of shares acquired	$ (3,042)

Revenue from Contracts with Customers (Tables)

12 Months Ended

Dec. 31, 2019

Product sales, net

Schedule of Disaggregation of Revenues

During the years ended December 31, 2019, 2018 and 2017, the Company recorded product sales, net, as follows:

	Year Ended December 31,
(In thousands)	2019		2018		2017
VIVITROL	$	335,365	$	302,609	$	269,321
ARISTADA/ARISTADA INITIO		189,134		147,725		93,513
Total product sales, net	$	524,499	$	450,334	$	362,834

Manufacturing and royalty revenues

Schedule of Disaggregation of Revenues

During the years ended December 31, 2019, 2018 and 2017, the Company recorded manufacturing and royalty revenues from its collaboration arrangements as follows:

	Year Ended December 31, 2019
(In thousands)	Manufacturing Revenue		Royalty Revenue		Total
INVEGA SUSTENNA/XEPLION & INVEGA TRINZA/TREVICTA	$	—	$	256,947	$	256,947
RISPERDAL CONSTA		50,433		15,950		66,383
AMPYRA/FAMPYRA		22,071		15,170		37,241
Other		31,750		55,561		87,311
	$	104,254	$	343,628	$	447,882

	Year Ended December 31, 2018
(In thousands)	Manufacturing Revenue		Royalty Revenue		Total
INVEGA SUSTENNA/XEPLION & INVEGA TRINZA/TREVICTA	$	—	$	241,423	$	241,423
RISPERDAL CONSTA		52,770		18,352		71,122
AMPYRA/FAMPYRA		53,044		54,009		107,053
Other		27,214		79,863		107,077
	$	133,028	$	393,647	$	526,675

	Year Ended December 31, 2017
(In thousands)	Manufacturing Revenue		Royalty Revenue		Total
INVEGA SUSTENNA/XEPLION & INVEGA TRINZA/TREVICTA	$	—	$	214,931	$	214,931
RISPERDAL CONSTA		64,793		20,129		84,922
AMPYRA/FAMPYRA		55,373		61,646		117,019
Other		32,655		55,781		88,436
	$	152,821	$	352,487	$	505,308

Investments

12 Months Ended

Dec. 31, 2019

Investments Debt And Equity Securities [Abstract]

Investments

4. INVESTMENTS

Investments consist of the following:

			Gross Unrealized
					Losses
	Amortized				Less than			Greater than			Estimated
December 31, 2019	Cost		Gains		One Year			One Year			Fair Value
Short-term investments:
Available-for-sale securities:
Corporate debt securities	$	144,161	$	676	$	—		$	—		$	144,837
U.S. government and agency debt securities		112,948		434		(1	)		(1	)		113,380
International government agency debt securities		72,753		248		(10	)		—			72,991
Total short-term investments		329,862		1,358		(11	)		(1	)		331,208
Long-term investments:
Available-for-sale securities:
Corporate debt securities		51,070		—		(45	)		(7	)		51,018
International government agency debt securities		20,806		—		(18	)		—			20,788
U.S. government and agency debt securities		4,000		—		(4	)		—			3,996
		75,876		—		(67	)		(7	)	$	75,802
Held-to-maturity securities:
Certificates of deposit		1,820		—		—			—			1,820
Fixed term deposit account		1,667		102		—			—			1,769
		3,487		102		—			—			3,589
Total long-term investments		79,363		102		(67	)		(7	)		79,391
Total investments	$	409,225	$	1,460	$	(78	)	$	(8	)	$	410,599

December 31, 2018
Short-term investments:
Available-for-sale securities:
Corporate debt securities	$	120,197	$	57	$	(62	)	$	(274	)	$	119,918
U.S. government and agency debt securities		80,055		115		(11	)		(87	)		80,072
International government agency debt securities		72,091		85		(8	)		(117	)		72,051
		272,343		257		(81	)		(478	)		272,041
Held-to-maturity securities:
Corporate debt securities		492		—		—			—			492
Total short-term investments		272,835		257		(81	)		(478	)		272,533
Long-term investments:
Available-for-sale securities:
Corporate debt securities		53,505		—		(185	)		(93	)	$	53,227
U.S. government and agency debt securities		18,474		—		(21	)		(12	)		18,441
International government agency debt securities		5,457		—		(4	)		—			5,453
		77,436		—		(210	)		(105	)		77,121
Held-to-maturity securities:
Certificates of deposit		1,820		—		—			—			1,820
Fixed term deposit account		1,667		136		—			—			1,803
		3,487		136		—			—			3,623
Total long-term investments		80,923		136		(210	)		(105	)		80,744
Total investments	$	353,758	$	393	$	(291	)	$	(583	)	$	353,277

Realized gains and losses on the sales and maturities of marketable securities, which were identified using the specific identification method, were as follows:

	Year Ended December 31,
(In thousands)	2019		2018		2017
Proceeds from the sales and maturities of marketable securities	$	224,602	$	444,456	$	464,494
Realized gains	$	997	$	4	$	9
Realized losses	$	497	$	268	$	3

The Company’s available‑for‑sale and held‑to‑maturity securities at December 31, 2019 had contractual maturities in the following periods:

	Available-for-sale				Held-to-maturity
	Amortized		Estimated		Amortized		Estimated
(In thousands)	Cost		Fair Value		Cost		Fair Value
Within 1 year	$	216,084	$	216,764	$	1,820	$	1,820
After 1 year through 5 years		189,654		190,246		1,667		1,769
Total	$	405,738	$	407,010	$	3,487	$	3,589

At December 31, 2019, the Company believed that the unrealized losses on its available-for-sale investments were temporary. The investments with unrealized losses consisted of U.S. government and agency debt securities, corporate debt securities and international government agency debt securities. The unrealized losses are a result of market conditions related to increasing interest rates. In making the determination that the decline in fair value of these securities was temporary, the Company considered various factors, including, but not limited to: the length of time each security was in an unrealized loss position; the extent to which fair value was less than cost; financial condition and near-term prospects of the issuers; and the Company’s intent not to sell these securities and the assessment that it is more likely than not that the Company would not be required to sell these securities before the recovery of their amortized cost basis.

In February 2016, the Company entered into a collaboration and license option agreement with Synchronicity Pharma, Inc. (“Synchronicity”) formerly Reset Therapeutics, Inc., a related party. The Company made a $15.0 million investment in exchange for shares of Synchronicity’s Series B Preferred Stock. The Company was accounting for its investment in Synchronicity under the equity method based on its percentage of ownership, its seat on the board of directors and its belief that it could exert significant influence over the operating and financial policies of Synchronicity.

In September 2017, the Company recorded an other-than-temporary impairment charge of $10.5 million within “Other (expense) income, net” in the accompanying consolidated statements of operations and comprehensive loss, which represented the Company’s remaining investment in Synchronicity, as the Company believed that Synchronicity was unable to generate future earnings that justify the carrying amount of the investment. In November 2017, the collaboration and license option agreement with Synchronicity was terminated. During the year ended December 31, 2017, the Company recorded a reduction in its investment in Synchronicity of $2.8 million, which represented the Company’s proportional share of Synchronicity’s net loss for the period.

In May 2014, the Company entered into an agreement whereby it is committed to provide up to €7.4 million to a partnership, Fountain Healthcare Partners II, L.P. of Ireland (“Fountain”), which was created to carry on the business of investing exclusively in companies and businesses engaged in the healthcare, pharmaceutical and life sciences sectors. As of December 31, 2019, the Company’s total contribution in Fountain was equal to €6.0 million, and its commitment represents approximately 7% of the partnership’s total funding. The Company is accounting for its investment in Fountain under the equity method. During the years ended December 31, 2019, 2018 and 2017 the Company recorded a reduction in its investment in Fountain of $0.4 million, an increase of $0.5 million and a reduction of $0.1 million, respectively, which represented the Company’s proportional share of Fountain’s net (losses) gains for the period. The Company’s $5.9 million and $5.5 million net investment in Fountain at December 31, 2019 and 2018, respectively, was included within “Other assets” in the accompanying consolidated balance sheets.

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of (Benefit) Provision for Income Taxes

The Company’s (benefit) provision for income taxes is comprised of the following:

	Year Ended December 31,
(In thousands)	2019			2018			2017
Current income tax (benefit) provision:
U.S. federal	$	(471	)	$	(53	)	$	6,964
U.S. state		354			1,774			350
Rest of world		—			—			123
Deferred income tax (benefit) provision:
U.S. federal		(1,503	)		10,624			8,188
U.S. state		881			62			(933	)
Ireland		303			(63	)		(21	)
Total tax (benefit) provision	$	(436	)	$	12,344		$	14,671

Schedule of (Loss) Income Before Provision for Income Taxes by Geographical Area

The distribution of the Company’s loss before the (benefit) provision for income taxes by geographical area consisted of the following:

	Year Ended December 31,
(In thousands)	2019			2018			2017
Ireland	$	(141,869	)	$	(180,195	)	$	(172,363	)
U.S.		(55,102	)		53,287			2,414
Rest of world		(85	)		(59	)		26,675
Loss before (benefit) provision for income taxes	$	(197,056	)	$	(126,967	)	$	(143,274	)

Schedule of Components of Net Deferred Tax Assets (Liabilities)

The components of the Company’s net deferred tax assets (liabilities) were as follows:

	December 31,			December 31,
(In thousands)	2019			2018
Deferred tax assets:
NOL carryforwards	$	227,872		$	198,633
Tax credits		57,385			52,395
Share-based compensation		45,214			44,873
Accrued expenses and reserves		20,337			15,892
Other		8,756			8,669
Less: valuation allowance		(242,059	)		(219,093	)
Total deferred tax assets		117,505			101,369
Deferred tax liabilities:
Intangible assets		—			—
Property, plant and equipment		(19,926	)		(14,533	)
Other		(1,590	)		(1,274	)
Total deferred tax liabilities		(21,516	)		(15,807	)
Net deferred tax assets	$	95,989		$	85,562

Schedule of Activity in Valuation Allowance Associated with Deferred taxes

The activity in the valuation allowance associated with deferred taxes consisted of the following:

(In thousands)	Balance at Beginning of Period			Additions ⁽¹⁾			Balance at End of Period
Deferred tax asset valuation allowance for the year ended December 31, 2017	$	(141,859	)	$	(30,938	)	$	(172,797	)
Deferred tax asset valuation allowance for the year ended December 31, 2018	$	(172,797	)	$	(46,296	)	$	(219,093	)
Deferred tax asset valuation allowance for the year ended December 31, 2019	$	(219,093	)	$	(22,966	)	$	(242,059	)

(1)	The additions in each of the periods presented relate primarily to Irish NOLs. Additionally, in 2019 the Company’s valuation allowance was increased by $3.0 million as a result of the attributes acquired as part of the acquisition of Rodin.

Schedule of Reconciliation of Federal Statutory Tax Rate to its Effective Tax Rate

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

	Year Ended December 31,
(In thousands, except percentage amounts)	2019				2018				2017
Statutory tax rate		12.5		%		12.5		%		12.5		%

Income tax provision at statutory rate	$	(24,632	)		$	(15,871	)		$	(17,909	)

Change in valuation allowance		19,882				28,371				26,771
In-process R&D⁽¹⁾		10,824				—				—
Share-based compensation		6,287				1,163				(1,205	)
Foreign rate differential⁽²⁾		5,390				5,405				(682	)
U.S. state income taxes, net of U.S. federal benefit		1,051				1,732				(558	)
Foreign derived intangible income		(3,450	)			—				—
Intercompany amounts⁽³⁾		(1,125	)			(751	)			(5,041	)
R&D credit		(8,846	)			(7,698	)			(9,326	)
Federal tax law change⁽⁴⁾		(8,111	)			—				21,453
Irish rate differential⁽⁵⁾		(146	)			(2,350	)			(2,675	)
Impairment on equity method investment		—				—				1,662
Other permanent items⁽⁶⁾		2,440				2,343				2,181
Income tax (benefit) provision	$	(436	)		$	12,344			$	14,671

Effective tax rate		0.2		%		(9.7	)	%		(10.2	)	%

(1)	Represents the tax effect of the research and development expense recorded on the acquisition of Rodin.

(2)	Represents income or losses of non-Irish subsidiaries, including U.S. subsidiaries, subject to tax at a rate other than the Irish statutory rate.

(3)	Intercompany amounts include cross-territory eliminations, the pre-tax effect of which has been eliminated in arriving at the Company's consolidated loss before taxes.

(4)

(5)	Represents income or losses of Irish companies subject to tax at a rate other than the Irish statutory rate.

(6)	Other permanent items include, but are not limited to, non-deductible meals and entertainment expenses, non-deductible lobbying expenses, the impact of the tax treatment of the FDA branded prescription drug fee and non-deductible compensation of senior officers of the Company.

Schedule of Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Unrecognized
(In thousands)	Tax Benefits
Balance, December 31, 2016	$	4,688
Reductions based on tax positions related to prior periods		(47	)
Additions based on tax positions related to the current period		877
Balance, December 31, 2017	$	5,518
Additions based on tax positions related to prior periods		4
Additions based on tax positions related to the current period		559
Balance, December 31, 2018	$	6,081
Additions based on tax positions related to prior periods		38
Additions based on tax positions related to the current period		738
Balance, December 31, 2019	$	6,857

Income Taxes - Schedule of (Benefit) Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Deferred income tax (benefit) provision
Deferred income tax provision (benefit)	$ (319)	$ 10,623	$ 7,234
Total tax (benefit) provision	(436)	12,344	14,671
Ireland
Deferred income tax (benefit) provision
Deferred income tax provision (benefit)	303	(63)	(21)
U.S. federal
Current income tax (benefit) provision:
Current income tax (benefit) provision	(471)	(53)	6,964
Deferred income tax (benefit) provision
Deferred income tax provision (benefit)	(1,503)	10,624	8,188
U.S. state
Current income tax (benefit) provision:
Current income tax (benefit) provision	354	1,774	350
Deferred income tax (benefit) provision
Deferred income tax provision (benefit)	$ 881	$ 62	(933)
Rest of world
Current income tax (benefit) provision:
Current income tax (benefit) provision			$ 123

Long-term Debt - Additional Information (Details) $ in Millions		3 Months Ended	12 Months Ended
	Oct. 12, 2016	Mar. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) Lender	Mar. 31, 2019	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Long-term debt
Number of lender holding percentage of outstanding amount \| Lender			1
Percentage of outstanding principal amount held by lender			1.00%
Unamortized deferred financing costs at period end			$ 0.6
Original issue discount			1.5
Amortization of offering costs and discount			$ 0.7		$ 0.7	$ 0.8
Interest Expense
Long-term debt
Refinancing charges		$ 2.3
Minimum
Long-term debt
Threshold percentage comparing present value of remaining cash flows			10.00%
2023 Term Loans
Long-term debt
Due date of loan				Mar. 26, 2023
Variable interest rate base			LIBOR
Incremental capacity			$ 175.0
Term Loan B-1
Long-term debt
Due date of loan	Sep. 25, 2021
LIBOR \| 2023 Term Loans
Long-term debt
Interest rate added to base rate (as a percent)				2.25%
Interest rate, variable interest rate floor (as a percent)				0.00%
LIBOR \| Term Loan B-1
Long-term debt
Interest rate added to base rate (as a percent)	2.75%
Interest rate, variable interest rate floor (as a percent)	0.75%

Acquisition - Additional Information (Details) - Rodin Therapeutics, Inc.	Nov. 18, 2019 USD ($)
Business Acquisition [Line Items]
Business acquisition, date of acquisition agreement	Nov. 18, 2019
Business acquisition, date of acquisition completed	Nov. 25, 2019
Upfront cash payment	$ 98,100,000
Research and development expense	86,594,000
Milestones future payments	850,000,000.0
IPR&D
Business Acquisition [Line Items]
Payment attributed to acquire IPR&D	98,100,000
Maximum
Business Acquisition [Line Items]
Upfront cash future payments	850,000,000.0
Achievement of Specified Clinical Milestones \| Maximum
Business Acquisition [Line Items]
Upfront cash future payments	225,000,000.0
Achievement of Regulatory Milestones \| Maximum
Business Acquisition [Line Items]
Upfront cash future payments	300,000,000.0
Attainment of Sales Thresholds \| Maximum
Business Acquisition [Line Items]
Upfront cash future payments	$ 325,000,000.0

Leases - Summary of Future Lease Payments Under Non-Cancelable Leases (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jan. 01, 2019	Dec. 31, 2018
Leases [Abstract]
2020	$ 9,053
2021	2,727
2022	500
2023	509
2024	520
Thereafter	2,579
Total lease payments	15,888
Less: imputed interest	(2,080)
Total operating lease liabilities	$ 13,808	$ 22,100
Operating Leases, Future Minimum Payments
2019			$ 9,394
2020			10,717
2021			4,706
2022			2,455
2023			2,389
Thereafter			23,940
Total lease payments			$ 53,601