Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2016	Aug. 01, 2016
Document And Entity Information [Abstract]
Document Type	10-Q/A
Amendment Flag	true
Document Period End Date	Jun. 30, 2016
Amendment Description	This Amendment No. 1 to the Form 10-Q (this “Amendment”) amends the Quarterly Report on Form 10-Q of Aptevo Therapeutics Inc. for the period ended June 30, 2016 filed on August 25, 2016 (the “Form 10-Q”) for the sole purpose of filing Exhibit 101 to the Form 10-Q, which contains the XBRL (eXtensible Business Reporting Language) Interactive Data File for the financial statements and notes included in Part I, Item 1 of the Form 10-Q. As permitted by Rule 405(a)(2)(ii) of Regulation S-T, Exhibit 101 was required to be filed by amendment within 30 days of the original filing date of the Form 10-Q. No other changes have been made to the Form 10-Q. This Amendment does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way the disclosures made in the original Form 10-Q.
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	APVO
Entity Registrant Name	APTEVO THERAPEUTICS INC.
Entity Central Index Key	0001671584
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		20,229,849

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 5,496	$ 4,637
Restricted cash	400
Accounts receivable, net	8,514	6,456
Inventories	20,130	20,322
Income tax receivable, net	1,399	1,376
Prepaid expenses and other current assets	3,908	2,343
Total current assets	39,847	35,134
Property and equipment, net	6,342	4,179
In-process research and development	41,800	41,800
Intangible assets, net	16,268	17,441
Goodwill	13,902	13,902
Total assets	118,159	112,456
Current liabilities:
Accounts payable	11,192	10,084
Accrued compensation	2,739	3,334
Contingent consideration, current portion	191	444
Provisions for chargebacks	2,512	2,238
Deferred revenue, current portion	394	3,843
Total current liabilities	17,028	19,943
Deferred revenue, net of current portion	3,340	3,318
Deferred income taxes	506	506
Other liabilities	88	71
Total liabilities	20,962	23,838
Stockholders' equity:
Parent investment in subsidiary	354,913	320,606
Accumulated deficit	(257,716)	(231,988)
Total stockholders' equity	97,197	88,618
Total liabilities and stockholders' equity	$ 118,159	$ 112,456

CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Product sales	$ 10,159	$ 6,942	$ 18,107	$ 13,263
Contracts, grants and collaborations	34	148	153	5,490
Total revenues	10,193	7,090	18,260	18,753
Costs and expenses:
Cost of product sales	6,544	4,439	10,072	8,171
Research and development	7,636	10,506	15,737	19,607
Selling, general and administrative	8,858	10,455	18,278	20,387
Loss from operations	(12,845)	(18,310)	(25,827)	(29,412)
Other income (expense):
Other income (expense), net	(4)	(18)	76	(313)
Total other income (expense), net	(4)	(18)	76	(313)
Loss before benefit from income taxes	(12,849)	(18,328)	(25,751)	(29,725)
Benefit from income taxes	(11)	(612)	(23)	(987)
Net loss	$ (12,838)	$ (17,716)	$ (25,728)	$ (28,738)
Net loss per share - basic and diluted	$ (0.63)	$ (0.88)	$ (1.27)	$ (1.42)
Shares used in computation of net loss per share - basic and diluted	20,229,849	20,229,849	20,229,849	20,229,849

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities
Net loss	$ (25,728)	$ (28,738)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock compensation expense	734	541
Depreciation	544	412
Amortization of intangible assets	1,173	896
Income taxes	(23)	(987)
Changes in fair value of contingent consideration	19	185
Changes in operating assets and liabilities:
Accounts receivable	(2,058)	(990)
Inventories	192	(2,917)
Income taxes		594
Prepaid expenses and other current assets	(1,565)	(724)
Accounts payable	387	672
Other liabilities	10	45
Accrued compensation	(595)	(837)
Provision for chargebacks	274	(252)
Deferred revenue	(3,427)	379
Net cash used in operating activities	(30,063)	(31,721)
Investing Activities
Purchases of property and equipment	(1,979)	(574)
Net cash used in investing activities	(1,979)	(574)
Financing Activities
Net investment from Emergent	33,573	33,264
Restricted cash	(400)
Contingent consideration payments	(272)	(511)
Net cash provided by financing activities	32,901	32,753
Net increase in cash and cash equivalents	859	458
Cash and cash equivalents at beginning of period	4,637	3,593
Cash and cash equivalents at end of period	$ 5,496	$ 4,051

Nature of Business and Basis of Presentation	6 Months Ended
Nature of Business and Basis of Presentation	Jun. 30, 2016
Accounting Policies [Abstract]
Nature of Business and Basis of Presentation	Note 1. Nature of Business and Basis of Presentation Aptevo Therapeutics Inc. (Aptevo or the Company) is a biotechnology company focused on novel oncology and hematology therapeutics to meaningfully improve patients’ lives. On July 13, 2016, Aptevo’s registration statement on Form 10, as amended, was declared effective by the Securities and Exchange Commission (SEC). On August 1, 2016 the Company became an independent publicly traded company through a pro-rata distribution of Aptevo’s common stock to Emergent BioSolutions Inc. (Emergent) stockholders. Prior to August 1, 2016, the consolidated financial statements have been prepared on a “carve-out” basis for the purpose of presenting Aptevo’s financial position, results of operations, and cash flows, and were derived from Emergent’s consolidated financial statements and accounting records. Aptevo did not operate as a standalone entity in the past and accordingly the selected financial data presented herein is not necessarily indicative of Aptevo’s future performance and does not reflect what Aptevo’s performance would have been had Aptevo operated as an independent publicly-traded company prior to August 1, 2016. The consolidated financial statements reflect Aptevo’s financial position, results of operations, and cash flows as if its business was separately operated as part of Emergent prior to the distribution, in conformity with U.S. generally accepted accounting principles (GAAP). The consolidated financial statements include the allocation of certain assets and liabilities that have historically been held at the Emergent corporate level but which are specifically identifiable or allocable to Aptevo. All Aptevo intracompany transactions and accounts have been eliminated. All intercompany transactions between Aptevo and Emergent are considered to be effectively settled in the consolidated financial statements at the time the transaction is recorded. The total net effect of the settlement of these intercompany transactions is reflected in the consolidated statement of cash flows as a financing activity and in the consolidated balance sheet as a net investment from Emergent. As of August 1, 2016, in connection with the separation and distribution, Emergent’s investment in the Company’s business was redesignated as stockholder’s equity and allocated between common stock and additional paid in capital based on the number of shares outstanding at the distribution date. Aptevo’s consolidated financial statements include an allocation of expenses related to certain Emergent corporate functions, including senior management, legal, human resources, finance, information technology, and quality assurance. These expenses have been allocated to Aptevo based on direct usage or benefit where identifiable, with the remainder allocated on a pro rata basis of expenses, headcount, square footage, or other measures. Aptevo considers the expense allocation methodology and results to be reasonable for all periods presented. However, the allocations may not be indicative of the actual expense that would have been incurred had Aptevo operated as an independent, publicly-traded company for the periods presented. The income tax amounts in these consolidated financial statements have been calculated based on a separate return methodology and presented as if Aptevo’s operations were a standalone taxpayer in each of its tax jurisdictions. Emergent maintains stock-based compensation plans at a corporate level. As of June 30, 2016 Aptevo employees participated in those programs and a portion of the cost of those plans is included in Aptevo’s consolidated financial statements. However, Aptevo’s consolidated balance sheet does not include any equity awards related to stock-based compensation. See Note 9 “Subsequent Events” of this Form 10-Q for additional information. Aptevo has a history of operating losses and negative cash flows while operating as part of Emergent and, accordingly, was dependent upon Emergent for its capital funding and liquidity needs. In addition, development activities, clinical and pre-clinical testing and commercialization of Aptevo’s products, if approved, will require significant additional funding. Aptevo could delay clinical trial activity or reduce funding of specific programs in order to further extend the cash burn. In accordance with the separation agreement, Emergent has committed to providing Aptevo with a total of $65.0 million in cash funding, $45.0 million upon the spin-off and $20.0 million within six to 12 months after the separation. Management believes this funding will support Aptevo’s operations for at least the next 12 months following the separation, based on current operating plans and financial forecasts. The accompanying consolidated financial statements are prepared on a going concern basis and the Company, post separation, is solely responsible for its financial performance and meeting its capital requirements. The summary financial information should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and the unaudited consolidated financial statements and corresponding notes included elsewhere in this quarterly report.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2. Summary of Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Cash Equivalents

Cash equivalents are highly liquid investments with a maturity of 90 days or less at the date of purchase and include time deposits and investments in money market funds with commercial banks and financial institutions.

Fair Value of Financial Instruments

The Company measures and records cash equivalents and investment securities considered available-for-sale at fair value in the accompanying financial statements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability, an exit price, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs.

The three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value include:

Level 1—Observable inputs for identical assets or liabilities such as quoted prices in active markets;

Level 2—Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Level 3—Unobservable inputs in which little or no market data exists, which are therefore developed by the Company’s management using estimates and assumptions that reflect those that a market participant would use.

The carrying amounts of the Company’s short-term financial instruments, which include cash and cash equivalents, accounts receivable and accounts payable, approximate their fair value due to their short maturities.

Significant Customers and Accounts Receivable

When appropriate, Aptevo records an allowance for doubtful accounts based upon its assessment of collectability. Aptevo performs ongoing credit evaluations of its customers and generally does not require collateral. For the year ended December 31, 2015, Aptevo recorded an allowance or uncollectible accounts of approximately $3.5 million, compared to $0.0 in 2016.

Accounts receivable at June 30, 2016 and December 31, 2015 primarily represent amounts due to Aptevo from its commercial wholesalers.

Concentrations of Credit Risk

Financial instruments that potentially subject Aptevo to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Aptevo places its cash and cash equivalents with high quality financial institutions and may maintain cash balances in excess of insured limits. Management believes that the financial risks associated with its cash and cash equivalents are minimal.

Inventories

Inventories, including purchased inventories, are stated at the lower of cost or market with cost being determined using a standard cost method, which approximates weighted-average cost. Average cost consists primarily of material, labor and manufacturing overhead expenses (including allocation of fixed production-overhead costs) and includes the services and products of third-party suppliers. Aptevo analyzes its inventory levels quarterly and writes down, in the applicable period, inventory that has become obsolete, inventory that has a cost basis in excess of its expected net realizable value and inventory in excess of expected customer demand. Aptevo also writes off, in the applicable period, the costs related to expired inventory.

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:


Building improvements	10-39 years
Furniture and equipment	3-15 years
Software	3-7 years or product life
Leasehold improvements	Lesser of the asset life or the remaining lease term

Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is credited or charged to operations. Repairs and maintenance costs are expensed as incurred.

Income Taxes

Income taxes are accounted for using the liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and research and development tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled.

Aptevo’s ability to realize deferred tax assets depends upon future taxable income as well as the limitations discussed below. For financial reporting purposes, a deferred tax asset must be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized prior to expiration. Aptevo considers future taxable income and ongoing tax planning strategies in assessing the need for valuation allowances. In general, if Aptevo determines that it is more likely than not to realize more than the recorded amounts of net deferred tax assets in the future, Aptevo will reverse all or a portion of the valuation allowance established against its deferred tax assets, resulting in a decrease to the provision for income taxes in the period in which the determination is made. Likewise, if Aptevo determines that it is not more likely than not to realize all or part of the net deferred tax asset in the future, Aptevo will establish a valuation allowance against deferred tax assets, with an offsetting increase to the provision for income taxes, in the period in which the determination is made.

Because tax laws are complex and subject to different interpretations, significant judgment is required. As a result, Aptevo makes certain estimates and assumptions, in (1) calculating Aptevo’s income tax expense, deferred tax assets and deferred tax liabilities, (2) determining any valuation allowance recorded against deferred tax assets and (3) evaluating the amount of unrecognized tax benefits, as well as the interest and penalties related to such uncertain tax positions. Aptevo’s estimates and assumptions may differ significantly from tax benefits ultimately realized.

In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No.2015-17, Balance Sheet Classification of Deferred Taxes (ASU No. 2015-17). The amendments in ASU No. 2015-17 change the presentation requirements for deferred tax assets and liabilities, along with any related valuation allowance, to classify the balances solely as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. The amendments in ASU No. 2015-17 are effective for years beginning after December 15, 2017, and early adoption is permitted. Aptevo has elected to adopt the accounting standard for the years ended December 31, 2015 and 2014. Prior periods in Aptevo’s consolidated financial statements were not retrospectively adjusted.

Benefit from income taxes decreased for the six months ended June 30, 2016 primarily due to the timing of Canadian scientific research and experimental development tax credits.

Revenue Recognition

Aptevo recognizes revenue if four basic criteria have been met (1) there is persuasive evidence of an arrangement, (2) delivery has occurred or services have been rendered, (3) the fee is fixed or determinable and (4) collectability is reasonably assured.

Aptevo markets and sells its products through commercial wholesalers (direct customers) who purchase the products at a price referred to as the wholesale acquisition cost (WAC). Additionally, Aptevo may enter into separate agreements with indirect customers to acquire its products for a contracted price that is less than the product’s WAC. The indirect customers, such as group-purchasing organizations, physician practice-management groups and hospitals, continue to purchase Aptevo’s products from the wholesalers, but at their respective contractual prices. Per its wholesaler agreements, Aptevo guarantees to credit the wholesaler for the difference between the WAC and the indirect customers’ contracted price. This credit is referred to as a chargeback and revenues from product sales are recorded net of estimated chargebacks. Adjustments to the chargeback provisions are made periodically to reflect new facts and circumstances, therefore historical experience may not be indicative of current and/or future results.

All revenues from product sales are also recorded net of applicable allowances for sales and government rebates, special promotional programs, and discounts. These allowances are estimated based on historical payment experience, historical relationship to revenues, estimated customer inventory levels, contract terms, and actual discounts offered. In arriving at these estimates, Aptevo further utilizes information received from third parties including market data, inventory reports from major wholesalers, historical information and analysis. These estimates are subject to the inherent limitations of estimates that rely on third-party data, as certain third-party information may itself rely on estimates and reflect other limitations.

Aptevo defers the recognition of revenue from the sales of new product introductions until the commercial wholesalers resell the product to the healthcare providers. This is due to the inherent uncertainties in estimating normal wholesaler inventory levels of new products in addition to extended payment terms and expanded return rights that allow the wholesalers to return the product. During the quarter ending June 30, 2016, the Company was able to establish sufficient history for IXINITY product returns and chargebacks, and as such began recognizing revenue on the sell-in basis instead of sell-through basis.

Revenue generating collaborative research and development agreements may contain one or more provisions including licensing, research services and milestone deliverables. Aptevo analyzes its multiple element revenue generating arrangements to determine whether the elements can be separated and accounted for individually as separate units of accounting. An item can generally be considered a separate unit of accounting if both of the following criteria are met: (1) the delivered item(s) has value to the customer on a standalone basis and (2) if the arrangement includes a general right of return and delivery, the performance of the undelivered item(s) is considered probable and substantially in the control of Aptevo. Items that cannot be divided into separate units are consolidated with other units of accounting, as appropriate. Consideration to be received is allocated among the separate units based on each unit’s relative selling price and is then recognized when the appropriate revenue recognition criteria are met. Aptevo deems services to be rendered if no continuing obligation exists on the part of Aptevo.

Revenue associated with non-refundable upfront license fees that can be treated as a single unit of accounting is recognized when all ongoing obligations have been delivered. Revenue associated with non-refundable upfront license fees under arrangements where the license fees and research and development activities cannot be accounted for as separate units of accounting is deferred and recognized as revenue either on a straight-line basis over Aptevo’s continued involvement in the research and development process or based on the proportional performance of Aptevo’s expected future obligations under the contract.

Revenues from the achievement of research and development milestones, if deemed substantive, are recognized as revenue when the milestones are achieved and the milestone payments are due and collectible. Milestones are considered substantive if all of the following conditions are met: (1) the milestone is non-refundable, (2) achievement of the milestone was not reasonably assured at the inception of the arrangement, (3) substantive effort is involved to achieve the milestone and (4) the amount of the milestone payment appears reasonable in relation to the effort expended. If not deemed substantive, Aptevo recognizes such milestone as revenue on a straight-line basis over the remaining expected term of continued involvement in the research and development process. Payments received in advance of revenue recognized are recorded as deferred revenue.

In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers (Topic 606) Section A—Summary and Amendments That Create Revenue from Contracts with Customers (Topic 606) and Other Assets and Deferred Costs —Contracts with Customers (Subtopic 340-40) (“ASU No. 2014-09”). ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, as well as most industry-specific guidance, and enhances comparability of revenue recognition practices across entities and industries by providing a principles-based, comprehensive framework for addressing revenue recognition issues. In order for a provider of promised goods or services to recognize as revenue the consideration that it expects to receive in exchange for the promised goods or services, the provider should apply the following five steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 20 14-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. The FASB has deferred ASU No. 2014-09 for one year, and with that deferral, the standard will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Aptevo is permitted to use either the retrospective or the modified retrospective method when adopting ASU No. 2014-09. Aptevo is assessing the potential impact that ASU No. 2014-09 will have on its consolidated financial statements and disclosures.

Mergers and Acquisitions

In a business combination, the acquisition method of accounting requires that the assets acquired and liabilities assumed be recorded as of the date of the merger or acquisition at their respective fair values with limited exceptions. Assets acquired and liabilities assumed in a business combination that arise from contingencies are recognized at fair value if fair value can reasonably be estimated. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Accordingly, Aptevo may be required to value assets at fair value measures that do not reflect Aptevo’s intended use of those assets. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs and costs to restructure the acquired company are expensed as incurred. The operating results of the acquired business are reflected in Aptevo’s consolidated financial statements after the date of the merger or acquisition

The fair values of intangible assets are determined utilizing information available near the merger or acquisition date based on expectations and assumptions that are deemed reasonable by management. Given the considerable judgment involved in determining fair values, Aptevo typically obtains assistance from third-party valuation specialists for significant items. The judgments made in determining estimated fair values assigned to assets acquired and liabilities assumed in a business combination, as well as asset lives, can materially affect Aptevo’s results of operations.

The fair values of identifiable intangible assets related to currently marketed products and product rights are primarily determined by using an "income approach" through which fair value is estimated based on each asset’s discounted projected net cash flows. Aptevo's estimates of net cash flows consider historical and projected pricing, margins and expense levels, the performance of competing products where applicable, relevant industry and therapeutic area growth drivers and factors, current and expected trends in technology and product life cycles, the time and investment that will be required to develop products and technologies, the ability to obtain marketing and regulatory approvals, the ability to manufacture and commercialize the products, the extent and timing of potential new product introductions by Aptevo’s competitors, and the life of each asset’s underlying patent, if any. The net cash flows are then probability-adjusted where appropriate to consider the uncertainties associated with the underlying assumptions, as well as the risk profile of the net cash flows utilized in the valuation. The probability-adjusted future net cash flows of each product are then discounted to present value utilizing an appropriate discount rate.

The fair values of identifiable intangible assets related to in-process research and development (“IPR&D”) are determined using an income approach, through which fair value is estimated based on each asset’s probability-adjusted future net cash flows, which reflect the different stages of development of each product and the associated probability of successful completion. The net cash flows are then discounted to present value using an appropriate discount rate. Amounts allocated to acquired IPR&D are capitalized and accounted for as indefinite-lived intangible assets. Upon successful completion of each project, Aptevo will make a separate determination as to the then useful life of the asset and begin amortization.

In-Process Research and Development and Long-lived Assets

Aptevo assesses IPR&D assets for impairment on an annual basis or more frequently if indicators of impairment are present. Aptevo’s annual assessment includes a comparison of the fair value of IPR&D assets to existing carrying value, and recognizes an impairment when the carrying value is greater than the determined fair value. Aptevo believes that the assumptions used in valuing the intangible and IPR&D assets are reasonable and are based upon its best estimate of likely outcomes of sales and clinical development. The underlying assumptions and estimates used to value these assets are subject to change in the future, and actual results may differ significantly from the assumptions and estimates. Aptevo has selected October 1 as its annual impairment test date for indefinite-lived intangible assets.

Aptevo assesses the recoverability of its long-lived assets or asset groups for which an indicator of impairment exists by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If Aptevo concludes that the carrying value will not be recovered, Aptevo measures the amount of such impairment by comparing the fair value to the carrying value of the assets or asset groups.

Goodwill

Aptevo assesses the carrying value of goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. Aptevo utilizes either: (1) a two-step impairment test, which is a quantitative analysis, or (2) a step zero test, which is a qualitative analysis.

If Aptevo is required to do a two-step test, it would first compare the fair value of its reporting unit to the carrying value of the reporting unit. If the carrying value of the reporting unit exceeds its fair value, then the second step of the impairment test is performed in order to determine the implied fair value of the reporting unit’s goodwill. If the carrying value of the reporting unit’s goodwill exceeds its implied fair value, an impairment loss is recognized. Aptevo calculates the fair value of the reporting unit utilizing the income approach. The income approach utilizes a discounted cash flow model, using a discount rate based on Aptevo’s estimated weighted average cost of capital.

If Aptevo is not required to do a quantitative analysis, it will evaluate goodwill using the qualitative assessment method, which permits companies to qualitatively assess whether it is more-likely-than-not that the fair value of a reporting unit is less than its carrying amount. Aptevo considers developments in its operations, the industry in which it operates and overall macroeconomic factors that could have affected the fair value of the reporting unit since the date of the most recent quantitative analysis of the reporting unit’s fair value.

The determination of the fair value of a reporting unit is judgmental in nature and involves the use of significant estimates and assumptions. The estimates and assumptions used in calculating fair value include identifying future cash flows, which requires that Aptevo make a number of critical legal, economic, market and business assumptions that reflect best estimates as of the testing date. Aptevo’s assumptions and estimates may differ significantly from actual results, or circumstances could change that would cause Aptevo to conclude that an impairment now exists or that it previously understated the extent of impairment. Aptevo selected October 1 as its annual impairment test date for goodwill.

Contingent Consideration

Aptevo records contingent consideration associated with sales-based royalties at fair value. The fair value model used to calculate this obligation is based on the income approach (a discounted cash flow model) that has been risk adjusted based on the probability of achievement of net sales and achievement of the milestones. The inputs Aptevo uses for determining the fair value of the contingent consideration associated with sales based royalties are Level 3 fair value measurements. Aptevo re-evaluates the fair value on a quarterly basis. Changes in the fair value can result from adjustments to the discount rates and updates in the assumed timing of or achievement of net sales. Any future increase in the fair value of the contingent consideration associated with sales based royalties are based on an increased likelihood that the underlying net sales will be achieved.

The associated payment or payments which will therefore become due and payable for sales based royalties will result in a charge to cost of product sales in the period in which the increase is determined. Similarly, any future decrease in the fair value of contingent consideration associated with sales based royalties will result in a reduction in cost of product sales.

Research and Development

Research and development costs are expensed as incurred. Research and development costs primarily consist of internal labor costs, fees paid to outside service providers and the costs of materials used in clinical trials and research and development. Other research and development expenses include facility, maintenance and related support expenses.

A substantial portion of the Aptevo’s pre-clinical studies and all of its clinical studies have been performed by third-party contract research organizations (CRO). The Company reviews the activities performed by the CROs each period. For pre-clinical studies, the significant factors used in estimating accruals include the percentage of work completed to date and contract milestones achieved. For clinical study expenses, the significant factors used in estimating accruals include the number of patients enrolled and percentage of work completed to date. The Company’s estimates are highly dependent upon the timeliness and accuracy of the data provided by its CRO’s regarding the status of each program and total program spending and adjustments are made when deemed necessary.

Segment Reporting

The Company has determined that it operates in a single segment: the discovery, development, commercialization and sale of novel oncology and hematology therapeutics.

Net Loss Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Net Loss Per Share

Note 3. Net Loss per Share

Net loss per share is calculated by dividing the net loss of the Company by the number of shares issued on August 1, 2016 in connection with the spin-off from Emergent. Prior to the spin-off, Aptevo did not operate as a separate entity and as a result did not have any ordinary shares outstanding other than 1,000 shares held by Emergent. The calculation of basic and diluted net loss per share assumes that the 20,229,849 ordinary shares issued to Aptevo stockholders in connection with the spin-off were outstanding from the beginning of the periods presented.

The computations for basic and diluted net loss per share were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except for per share amounts)	2016			2015			2016			2015
Net loss	$	(12,838	)	$	(17,716	)	$	(25,728	)	$	(28,738	)
Shares used in computation of net loss per share - basic and diluted		20,230			20,230			20,230			20,230
Net loss per share	$	(0.63	)	$	(0.88	)	$	(1.27	)	$	(1.42	)

Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4. Fair Value Measurements

The fair value hierarchy under the accounting standards for fair value measurements consists of the following three levels:

Level 1—Observable inputs for identical assets or liabilities such as quoted prices in active markets;

Level 2—Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

The Company does not have any fair value measurements done on a recurring basis other than the contingent consideration acquired in the Cangene acquisition. The fair value of contingent consideration obligations associated with HepaGam B changes as a result of management’s assessment of discount rates and updates to the projected and actual sales achievement of HepaGam B, which are inputs that have no observable market (Level 3). These adjustments are primarily due to the differences between the actual and expected timing and volume of HepaGam B sales. The incremental impact is recorded in the accompanying consolidated statement of operations as cost of product sales.

The following table is a reconciliation of the beginning and ending balance of the liabilities (contingent consideration) measured at fair value using significant unobservable inputs (Level 3) during the six months ended June 30, 2016. The royalty agreement associated with HepaGam expired on June 30, 2016, and no future royalty payments are expected on sales after that date. The remaining liability is due to accrued but unpaid royalties.

(in thousands)
Balance at December 31, 2015	$	444
Expense included in earnings		19
Settlements		(272	)
Balance at June 30, 2016	$	191

- 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

MorphoSys Collaboration Agreement

6 Months Ended

Jun. 30, 2016

Organization Consolidation And Presentation Of Financial Statements [Abstract]

MorphoSys Collaboration Agreement

Note 5. MorphoSys Collaboration Agreement

In August 2014, Aptevo entered into a collaboration agreement with MorphoSys AG (MorphoSys Agreement) for the joint worldwide development and commercialization of MOR209/ES414, a targeted immunotherapeutic protein, which activates host T-cell immunity specifically against cancer cells expressing prostate specific membrane antigen, an antigen commonly overexpressed on prostate cancer cells. MOR209/ES414 was constructed using Aptevo’s proprietary ADAPTIR platform technology.

In accordance with the initial terms of the MorphoSys Agreement, Aptevo received a nonrefundable $20.0 million upfront payment and could receive up to $163.0 million in additional contingent payments, comprised of up to $80.0 million and up to $83.0 million, respectively, due upon the achievement of specified development and regulatory milestones. MorphoSys and Aptevo jointly agreed to fund further development of MOR209/ES414, with Aptevo responsible for 36% of the total development costs and MorphoSys responsible for the remainder, with Aptevo’s funding requirement capped at $186.0 million. Aptevo’s development effort includes the performance of non-clinical, clinical, manufacturing and regulatory activities. Aptevo retains commercialization rights in the U.S. and Canada, with a tiered royalty obligation to MorphoSys, ranging from mid-single digit up to 20% of sales. MorphoSys has worldwide commercialization rights excluding the U.S. and Canada, with a low single digit royalty obligation to Aptevo.

In December 2015, after a joint review of data from the ongoing Phase 1 dose escalation study of MOR209/ES414 in prostate cancer patients, Aptevo and MorphoSys decided to adjust the dosing regimen and administration of MOR209/ES414. Patients receiving weekly doses of MOR209/ES414 developed antibodies against the drug; this is called anti-drug antibodies, or ADA. ADA developed in most patients including those receiving the maximum tolerated dose of drug which could be given safely on a weekly basis. These antibodies bind to the drug and reduce the concentration of active MOR209/ES414 in the blood and thus could potentially reduce its efficacy. However, we observed no safety issues related to the development of ADA. The cause of these antibodies is unclear but could be due to the weekly administration of the drug. Hence, the protocol has been amended to continuous intravenous infusion as a way to administer higher levels of drug and prevent the development of ADA. Aptevo plans to continue the current clinical trial under an amended protocol with recruitment expected to start in the second half of 2016. As a result of the required dosing regimen change and the impact to the overall development timeline and technical risk, our co-development agreement with MorphoSys was restructured. In December 2015, Aptevo and MorphoSys amended the collaboration agreement to (1) decrease the additional contingent payments due to Aptevo upon the achievement of specified development and regulatory milestones of up to $32.5 million and up to $41.5 million, respectively, (2) change the total funding requirement cap for Aptevo to up to approximately $250.0 million and (3) change the jointly funded development cost allocation to the following:

2016: Aptevo is responsible for 75%; MorphoSys responsible for 25%

2017-2018: Aptevo is responsible for 49%; MorphoSys responsible for 51%

2019 and beyond: Aptevo is responsible for 36%; MorphoSys responsible for 64%

In addition, the termination provisions under the MorphoSys collaboration agreement were amended to give MorphoSys a one-time right to terminate the collaboration agreement, without notice, at either the end of 2016 or after review of clinical data from the first six patients enrolled and dosed in the Phase 1 trial.

Aptevo evaluated the MorphoSys Agreement and determined that it was a revenue arrangement with multiple deliverables or performance obligations. Aptevo determined there were two units of accounting under the MorphoSys Agreement: (1) the delivered license to further develop and commercialize MOR209/ES414 and (2) undelivered items related to development services. Aptevo determined that the license had standalone value as the drug candidate has been (1) developed and is currently Phase 1 clinical trial ready, (2) MorphoSys possesses the knowledge, technology, skills, experience and infrastructure necessary to complete all further development of the drug through commercialization, and (3) MorphoSys has the right to further sublicense the product. Aptevo allocated the $20.0 million upfront payment to the two units of accounting using the relative selling price method. Aptevo determined the estimated selling price for the license using the income approach and an appropriate discount rate. The estimated selling price includes unobservable inputs (Level 3), such as estimates of revenues and operating margins; the time and resources needed to complete the development and approval of the product candidate; and the risk related to the viability of and potential for alternative treatments. Aptevo determined the estimated selling price of the development services unit of accounting based on the estimated number of full-time equivalent personnel at the contractual rate as defined in the MorphoSys Agreement, whose rates and terms approximate those of other Emergent or Aptevo service related contracts and those observed generally through other collaboration negotiations. The allocation resulted in $15.3 million of the $20.0 million upfront payment being allocated to the license and $4.7 million being allocated to the development services. Aptevo determined the license fee unit of accounting was delivered and completed on the date the MorphoSys Agreement was executed and thus recognized $15.3 million of license revenue in August 2014. Revenue related to the development services is recognized as the services are performed with $0.2 million and $0.5 million, respectively, recognized in the six months ended June 30, 2016 and 2015. The current estimated service period for the undelivered development services under the MorphoSys Agreement is through 2023.

Further, Aptevo determined that contingent payments for the achievement of the development and regulatory milestones are substantive milestones and will be accounted for as revenue in the period in which the milestones are achieved. Aptevo received a $5.0 million milestone payment from MorphoSys reflecting the initiation of a Phase I clinical study to evaluate the safety, tolerability, and clinical activity of MOR209/ES414 in patients with metastatic castration-resistant prostate cancer. Aptevo recognized this substantive milestone achievement payment as research and development revenue during the six months ended June 30, 2015.

The MorphoSys Agreement provides for the sharing of development and clinical costs related to MOR209/ES414. In the event Aptevo’s share of the total cost incurred for a given quarter exceeds its pro rata limit, Aptevo records a receivable from MorphoSys for the excess and reduces research and development expense by this amount. For the three and six months ended June 30, 2016 Aptevo has recorded a reduction to research and development expense of $0.0 million and $0.1 million, respectively. For the three and six months ended June 30, 2015 Aptevo has recorded a reduction to research and development expense of $1.0 million and $2.7 million, respectively.

As of June 30, 2016, the MorphoSys Agreement related accounts receivable balance was $0.1 million and the related total deferred revenue balance was $3.7 million .

Inventories

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Inventories

Note 6. Inventories

Inventories consist of the following:

	June 30,		December 31,
(in thousands)	2016		2015
Raw materials and supplies	$	7,647	$	6,520
Work-in-process		5,150		4,730
Finished goods		7,333		9,072
Total inventories	$	20,130	$	20,322

CMC ICOS Biologics, Inc., (CMC), is the exclusive manufacturer of bulk drug substance for the IXINITY product. During 2015, Aptevo ordered nine manufacturing lots of bulk drug substance from CMC. CMC has successfully manufactured and released only one of the nine lots of bulk drug substance ordered by Aptevo, and has not successfully manufactured or released any lots of bulk drug substance in 2016. If current efforts by CMC to manufacture and release bulk drug substance are not successful, the resulting lack of supply of bulk drug substance could lead to a projected supply shortage of IXINITY requiring notification to the FDA. The inability to supply IXINITY would negatively affect sales, market position and viability and as a result, the realizability of IXINITY related inventory. As of June 30, 2016, Aptevo had IXINITY related inventory of approximately $2.4 million that may be subject to impairment if Aptevo is no longer able to sell the IXINITY product.

Property and Equipment

6 Months Ended

Jun. 30, 2016

Property Plant And Equipment [Abstract]

Property and Equipment

Note 7. Property and Equipment

Property and equipment consist of the following:

	June 30,			December 31,
(in thousands)	2016			2015
Building improvements and leasehold improvements	$	2,214		$	2,152
Furniture and equipment		9,159			6,826
Software		175			101
Construction-in-progress		1,171			957
Property and equipment, gross		12,719			10,036
Less: Accumulated depreciation		(6,377	)		(5,857	)
Total property and equipment, net	$	6,342		$	4,179

Intangible Assets, In-Process Research and Development and Goodwill

6 Months Ended

Jun. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Intangible Assets, In-Process Research and Development and Goodwill

Note 8. Intangible Assets, In-Process Research and Development and Goodwill

As of June 30, 2016 and December 31, 2015, Aptevo had $41.8 million of IPR&D assets related to Aptevo’s otlertuzumab product candidate. On April 29, 2015, the Food and Drug Administration approved IXINITY for the treatment of Hemophilia B. As a result of the approval, the $8.3 million IXINITY IPR&D asset was reclassified to intangible assets in Aptevo’s consolidated balance sheets and is being amortized over 10 years from the approval date.

In August 2016, Aptevo determined the Company’s market capitalization was a potential indicator of impairment for the definite-lived intangible assets, in-process research and development indefinite-lived assets and the goodwill. Aptevo completed an undiscounted cash flow recoverability test for the definite-lived intangibles and qualitative assessments for the indefinite-lived intangible assets, and concluded that there was no impairment.

As of June 30, 2016 the weighted average amortization period remaining for the intangible assets was 91 months.

	Corporate			Commercial
(in thousands)	Trade name			Products			Total
Cost Basis
Balance at December 31, 2015 and June 30, 2016	$	1,309		$	19,500		$	20,809
Accumulated Amortization
Balance at December 31, 2015	$	(486	)	$	(2,882	)	$	(3,368	)
Amortization	$	(130	)	$	(1,043	)	$	(1,173	)
Balance at June 30, 2016		(616	)		(3,925	)		(4,541	)
Net book value at June 30, 2016	$	693		$	15,575		$	16,268

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 9. Subsequent Events On August 1, 2016, a previously announced spin-off from Emergent was completed through a distribution of 100% of the outstanding common stock of Aptevo to the Emergent’s shareholders (the Distribution). The Distribution was made to Emergent’s shareholders of record as of the close of business on July 22, 2016 (Record Date), who received one share of Aptevo common stock for every two shares of Emergent common stock held as of the Record Date. As a result of the Distribution, Aptevo became an independent public company trading under the symbol "APVO" on NASDAQ. In the aggregate, 20,229,849 shares of Aptevo common stock were distributed. In addition, on August 1, 2016, the Company received $45.0 million from Emergent and entered into a non-negotiable, unsecured promissory note with Emergent to provide up to an additional $20.0 million in funding within the next six to twelve months. Separation and Distribution Agreement In connection with the spin-off Aptevo and Emergent entered into the Separation and Distribution Agreement. The Separation and Distribution Agreement identifies the assets transferred, liabilities assumed and contracts assigned as part of the spin-off, and describes when and how these transfers, assumptions and assignments will occur. In particular, all of the assets and liabilities associated or primarily used in connection with the drug discovery and development business operations were transferred. In addition, in connection with the spin-off, Aptevo was capitalized with $45.0 million in cash from Emergent. Except as expressly set forth in the Separation and Distribution Agreement or any ancillary agreement, all assets were transferred on an “as is,” “where is” basis. Under the terms of the Separation and Distribution Agreement, Aptevo will indemnify Emergent and Emergent will indemnify Aptevo from and after the spin-off with respect to all debts, liabilities and obligations transferred to Aptevo in connection with the spin-off (including failure to pay, perform or otherwise promptly discharge any such debts, liabilities or obligations after the spin-off) and any breach by Aptevo of the Separation and Distribution Agreement, the Transition Services Agreement, the Employee Matters Agreement and the Tax Matters Agreement. Manufacturing Services Agreement Aptevo and Emergent entered into a Manufacturing Services Agreement, under which Emergent will continue to manufacture the Company’s hyperimmune specialty plasma products WinRho SDF, HepaGam B and VARIZIG. The expiration date of the manufacturing services agreement is ten years following the date of its execution. The Company will consider contract manufacturing organization relationships with third-party providers for our products and the commercial product candidates going forward and seek to finalize agreements with the party that provides the best terms and conditions in support of Aptevo’s business. Transition Services Agreement Aptevo entered into a Transition Services Agreement with Emergent pursuant to which Emergent will provide a variety of administrative services, including financial, tax, accounting, information technology, legal, human resources, regulatory, pharmacovigilance, clinical research and quality assurance under our supervision for a period of time of up to two years following the spin-off. Aptevo expects that most of these services will be provided for a period of six months. In connection with the services performed under the Transition Services Agreement, Aptevo shall pay a pre-determined fee to Emergent for services performed. Tax Matters Agreement Aptevo entered into a Tax Matters Agreement with Emergent that governs Aptevo and Emergent’s respective rights, responsibilities and obligations after the spin-off with respect to taxes. Under the Tax Matters Agreement, each party is expected to be responsible for any taxes imposed on Aptevo or Emergent that arise from the failure of the distribution, together with certain related transactions, to qualify as a transaction described under Sections 355 and 368(a)(1)(D), to the extent that the failure to so qualify is attributable to actions, events or transactions relating to such party’s respective stock, assets or business, or a breach of the relevant representations or covenants made by that party in the tax matters agreement or the IRS private letter ruling, or in the representation letters provided to WilmerHale LLP in connection with its providing an opinion regarding the tax consequences of the distribution and certain related transactions. Employee Matters Agreement Aptevo entered into an Employee Matters Agreement with Emergent which governs the employee benefit obligations as they relate to current and former employees. The Employee Matters Agreement allocates liabilities and responsibilities relating to employee benefit matters, including 401(k) plan matters that are subject to ERISA in connection with the separation, as well as other employee benefit programs. The Employee Matters Agreement also provides the mechanics for the adjustment on the distribution date of equity awards (including stock options, restricted stock, and restricted stock units) granted under Aptevo’s equity compensation programs. Credit Facility On August 4, 2016, Aptevo entered into a $35.0 million Credit and Security Agreement (the “Credit Agreement”), by and among Aptevo and certain subsidiaries of Aptevo as borrowers, MidCap Financial Trust, as agent, and the lenders from time to time party thereto. The Credit Agreement provides Aptevo with up to $35.0 million of available borrowing capacity, which will be available (subject to certain conditions) to the borrowers in two tranches of $20.0 million and $15.0 million, respectively, through August 31, 2017 and which, once drawn, will amortize on a monthly basis commencing in August 2018 and will mature on February 1, 2021. Amounts drawn under the Credit Agreement bear interest at a rate of LIBOR plus 7.60% per annum. The first tranche of $20.0 million funded on the closing date of the Credit Agreement and the second tranche of $15.0 million will be available (subject to certain conditions) following the date Aptevo and its subsidiaries (1) achieve net commercial product revenue of $40.0 million on a trailing twelve month basis and (2) receive an additional $20.0 million in cash from Emergent. Emergent’s promise to pay such $20.0 million in cash is evidenced by a non-negotiable, unsecured promissory note issued to Aptevo from Emergent. The Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants, in each case applicable to Aptevo and its subsidiaries. The negative covenants include restrictions on, among other things, indebtedness, liens, dividends and other distributions, repayment of subordinated indebtedness, mergers, dispositions, investments (including licensing), acquisitions, transactions with affiliates and modification of organizational documents or certain other agreements. The Credit Agreement contains financial covenants that require Aptevo and its subsidiaries to maintain increasing minimum net commercial product revenue for each 12 month period ending on the last day of each calendar quarter, commencing with the twelve month period ending September 30, 2016. The Credit Agreement includes customary events of default, including, among other things, failure to pay principal or interest due under the Credit Agreement, default of covenants, a cross-default on Aptevo’s or its subsidiary’s material indebtedness, breach of material contracts by Aptevo or its subsidiaries, or commencement of liquidation, reorganization or similar relief. The obligations of Aptevo under the Credit Agreement are secured by all of their assets other than (1) certain voting shares of excluded subsidiaries of Aptevo, (2) any lease, license or other contract where the grant of a security interest would constitute a default, be prohibited by applicable law, or will require certain third-party consents and (3) intellectual property of Aptevo (except to the extent necessary to have a lien on such intellectual property in order to have a lien on cash and other proceeds arising out of or derived from such intellectual property). The related financing documents contain (1) a customary agency fee, (2) an exit fee of up to 5.75% of the aggregate principal amount under the Credit Agreement for repayment or prepayment other than scheduled amortization payments and the final payment of principal and (3) a prepayment fee of up to 4% of the amount prepaid for the first year, decreasing over time, for any amounts prepaid prior to the maturity date, whether voluntary or by reason of the occurrence of an event of default or acceleration of the loan, other than certain mandatory prepayments.

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Use of Estimates

Cash Equivalents

Fair Value of Financial Instruments

The three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value include:

Level 1—Observable inputs for identical assets or liabilities such as quoted prices in active markets;

Level 2—Inputs other than quoted prices in active markets that are either directly or indirectly observable; and

Significant Customers and Accounts Receivable

Accounts receivable at June 30, 2016 and December 31, 2015 primarily represent amounts due to Aptevo from its commercial wholesalers.

Concentrations of Credit Risk

Inventories

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the straight-line method over the following estimated useful lives:


Building improvements	10-39 years
Furniture and equipment	3-15 years
Software	3-7 years or product life
Leasehold improvements	Lesser of the asset life or the remaining lease term

Income Taxes

Benefit from income taxes decreased for the six months ended June 30, 2016 primarily due to the timing of Canadian scientific research and experimental development tax credits.

Revenue Recognition

Mergers and Acquisitions and Contingent Consideration

Mergers and Acquisitions

Contingent Consideration

In-Process Research and Development and Long-lived Assets

Goodwill

Research and Development

Segment Reporting

The Company has determined that it operates in a single segment: the discovery, development, commercialization and sale of novel oncology and hematology therapeutics.

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Schedule of Estimated Useful Lives of Property and Equipment

Depreciation is computed using the straight-line method over the following estimated useful lives:


Building improvements	10-39 years
Furniture and equipment	3-15 years
Software	3-7 years or product life
Leasehold improvements	Lesser of the asset life or the remaining lease term

Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Computations of Basic and Diluted Net Loss Per Share

The computations for basic and diluted net loss per share were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands, except for per share amounts)	2016			2015			2016			2015
Net loss	$	(12,838	)	$	(17,716	)	$	(25,728	)	$	(28,738	)
Shares used in computation of net loss per share - basic and diluted		20,230			20,230			20,230			20,230
Net loss per share	$	(0.63	)	$	(0.88	)	$	(1.27	)	$	(1.42	)

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Summary of Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3)

(in thousands)
Balance at December 31, 2015	$	444
Expense included in earnings		19
Settlements		(272	)
Balance at June 30, 2016	$	191

Inventories (Tables)

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of the following:

	June 30,		December 31,
(in thousands)	2016		2015
Raw materials and supplies	$	7,647	$	6,520
Work-in-process		5,150		4,730
Finished goods		7,333		9,072
Total inventories	$	20,130	$	20,322

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2016

Property Plant And Equipment [Abstract]

Summary of Property and Equipment

Property and equipment consist of the following:

	June 30,			December 31,
(in thousands)	2016			2015
Building improvements and leasehold improvements	$	2,214		$	2,152
Furniture and equipment		9,159			6,826
Software		175			101
Construction-in-progress		1,171			957
Property and equipment, gross		12,719			10,036
Less: Accumulated depreciation		(6,377	)		(5,857	)
Total property and equipment, net	$	6,342		$	4,179

Intangible Assets, In-Process Research and Development and Goodwill (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Intangible Assets

	Corporate			Commercial
(in thousands)	Trade name			Products			Total
Cost Basis
Balance at December 31, 2015 and June 30, 2016	$	1,309		$	19,500		$	20,809
Accumulated Amortization
Balance at December 31, 2015	$	(486	)	$	(2,882	)	$	(3,368	)
Amortization	$	(130	)	$	(1,043	)	$	(1,173	)
Balance at June 30, 2016		(616	)		(3,925	)		(4,541	)
Net book value at June 30, 2016	$	693		$	15,575		$	16,268

Nature of Business and Basis of Presentation - Additional Information (Details) $ in Millions	Jun. 30, 2016 USD ($)
Nature Of Business [Line Items]
Cash funding committed by Emergent in connection with spin-off	$ 65.0
Spin-off
Nature Of Business [Line Items]
Cash funding committed by Emergent in connection with spin-off	45.0
6 to 12 months after separation
Nature Of Business [Line Items]
Cash funding committed by Emergent in connection with spin-off	$ 20.0

Summary of Significant Accounting Policies - Additional Information (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2016 USD ($) Segment	Dec. 31, 2015 USD ($)
Accounting Policies [Abstract]
Allowance or uncollectible accounts \| $	$ 0.0	$ 3,500,000
Number of operating segment \| Segment	1

Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property and Equipment (Details)	6 Months Ended
	Jun. 30, 2016
Building Improvements \| Minimum
Property Plant And Equipment [Line Items]
Estimated useful lives	10 years
Building Improvements \| Maximum
Property Plant And Equipment [Line Items]
Estimated useful lives	39 years
Furniture and Equipment \| Minimum
Property Plant And Equipment [Line Items]
Estimated useful lives	3 years
Furniture and Equipment \| Maximum
Property Plant And Equipment [Line Items]
Estimated useful lives	15 years
Software
Property Plant And Equipment [Line Items]
Estimated useful lives	product life
Software \| Minimum
Property Plant And Equipment [Line Items]
Estimated useful lives	3 years
Software \| Maximum
Property Plant And Equipment [Line Items]
Estimated useful lives	7 years
Leasehold Improvements
Property Plant And Equipment [Line Items]
Estimated useful lives	Lesser of the asset life or the remaining lease term

Net Loss Per Share - Additional Information (Details) - shares	Aug. 01, 2016	Jun. 30, 2016
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Ordinary shares outstanding		1,000
Subsequent Event \| Spin-off
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Ordinary shares issued in connection with spin-off	20,229,849

Net Loss Per Share - Computations of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net loss	$ (12,838)	$ (17,716)	$ (25,728)	$ (28,738)
Shares used in computation of net loss per share - basic and diluted	20,229,849	20,229,849	20,229,849	20,229,849
Net loss per share	$ (0.63)	$ (0.88)	$ (1.27)	$ (1.42)

Fair Value Measurements - Summary of Reconciliation of Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($)
Fair Value Disclosures [Abstract]
Beginning balance	$ 444
Expense included in earnings	19
Settlements	(272)
Ending balance	$ 191

MorphoSys Collaboration Agreement - Additional Information (Details)	1 Months Ended		3 Months Ended		6 Months Ended
	Dec. 31, 2015 USD ($)	Aug. 31, 2014 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) Unit	Jun. 30, 2015 USD ($)
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Reduction to research and development expense			$ 7,636,000	$ 10,506,000	$ 15,737,000	$ 19,607,000
MorphoSys Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Nonrefundable upfront payment received		$ 20,000,000
Additional contingent payment that may be receive		$ 163,000,000
First contingent payment received based upon development and regulatory milestones						5,000,000
Collaborative agreement, rights and obligations					MorphoSys and Aptevo jointly agreed to fund further development of MOR209/ES414, with Aptevo responsible for 36% of the total development costs and MorphoSys responsible for the remainder.
Maximum percentage of tiered royalty obligation on sales		20.00%
Number of units of accounting \| Unit					2
Allocation of collaborative arrangements upfront payment units of accounting					$ 20,000,000
Upfront payment allocated to license fee unit					15,300,000
License revenue		$ 15,300,000
Upfront payment allocated to service development					4,700,000
Revenue recognized					$ 200,000	500,000
Current estimated service period for undelivered development services					2023
Reduction to research and development expense			0	$ 1,000,000	$ 100,000	$ 2,700,000
Accounts receivable			100,000		100,000
Deferred revenue			$ 3,700,000		$ 3,700,000
MorphoSys Agreement 2016
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Collaborative agreement, rights and obligations					Aptevo is responsible for 75%; MorphoSys responsible for 25%
MorphoSys Agreement 2017-2018
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Collaborative agreement, rights and obligations					Aptevo is responsible for 49%; MorphoSys responsible for 51%
MorphoSys Agreement 2019 and Beyond
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Collaborative agreement, rights and obligations					Aptevo is responsible for 36%; MorphoSys responsible for 64%
Aptevo \| MorphoSys Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Share of joint development costs percentage		36.00%
Maximum funding requirement cap	$ 250,000,000	$ 186,000,000
Aptevo \| MorphoSys Agreement 2016
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Share of joint development costs percentage	75.00%
Aptevo \| MorphoSys Agreement 2017-2018
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Share of joint development costs percentage	49.00%
Aptevo \| MorphoSys Agreement 2019 and Beyond
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Share of joint development costs percentage	36.00%
MorphoSys \| MorphoSys Agreement 2016
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Share of joint development costs percentage	25.00%
MorphoSys \| MorphoSys Agreement 2017-2018
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Share of joint development costs percentage	51.00%
MorphoSys \| MorphoSys Agreement 2019 and Beyond
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Share of joint development costs percentage	64.00%
Maximum \| MorphoSys Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
First contingent payment received based upon development and regulatory milestones		80,000,000
Second contingent payment received based upon development and regulatory milestones		$ 83,000,000
First additional contingent payments decrease upon the achievement of specified development and regulatory milestones	$ 32,500,000
Second additional contingent payments decrease upon the achievement of specified development and regulatory milestones	$ 41,500,000

Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory Adjustments [Abstract]
Raw materials and supplies	$ 7,647	$ 6,520
Work-in-process	5,150	4,730
Finished goods	7,333	9,072
Total inventories	$ 20,130	$ 20,322

Inventories - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory [Line Items]
Inventory	$ 20,130	$ 20,322
IXINITY Product
Inventory [Line Items]
Inventory	$ 2,400

Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 12,719	$ 10,036
Less: Accumulated depreciation	(6,377)	(5,857)
Total property and equipment, net	6,342	4,179
Building Improvements and Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	2,214	2,152
Furniture and Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	9,159	6,826
Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	175	101
Construction-in-progress
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 1,171	$ 957

Intangible Assets, In-Process Research and Development and Goodwill - Additional Information (Details) - USD ($)	1 Months Ended	6 Months Ended
	Aug. 31, 2016	Jun. 30, 2016	Dec. 31, 2015	Apr. 29, 2015
Finite Lived Intangible Assets [Line Items]
In-process research and development assets		$ 41,800,000	$ 41,800,000
Intangible assets amortization period		10 years
Weighted average amortization period remaining for intangible assets		91 months
IXINITY Product
Finite Lived Intangible Assets [Line Items]
In-process research and development assets				$ 8,300,000
Subsequent Event
Finite Lived Intangible Assets [Line Items]
Impairment of Intangible Assets	$ 0

Intangible Assets, In-Process Research and Development and Goodwill - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cost Basis
Beginning balance	$ 20,809
Ending balance	20,809
Accumulated Amortization
Beginning balance	(3,368)
Intangible asset amortization expense	(1,173)	$ (896)
Ending balance	(4,541)
Net book value of intangible assets	16,268
Corporate Trade Name
Cost Basis
Beginning balance	1,309
Ending balance	1,309
Accumulated Amortization
Beginning balance	(486)
Intangible asset amortization expense	(130)
Ending balance	(616)
Net book value of intangible assets	693
Commercial Products
Cost Basis
Beginning balance	19,500
Ending balance	19,500
Accumulated Amortization
Beginning balance	(2,882)
Intangible asset amortization expense	(1,043)
Ending balance	(3,925)
Net book value of intangible assets	$ 15,575

Subsequent Events - Additional Information (Details) - USD ($)			6 Months Ended
	Aug. 04, 2016	Aug. 01, 2016	Jun. 30, 2016	Jun. 30, 2015
Subsequent Event [Line Items]
Cash funding committed by Emergent in connection with spin-off, received			$ 33,573,000	$ 33,264,000
Cash funding committed by Emergent in connection with spin-off			65,000,000
Spin-off
Subsequent Event [Line Items]
Cash funding committed by Emergent in connection with spin-off			45,000,000
6 to 12 months after separation
Subsequent Event [Line Items]
Cash funding committed by Emergent in connection with spin-off			$ 20,000,000
Subsequent Event
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 35,000,000
Maturity date of credit agreement	Feb. 01, 2021
Credit agreement reference rate for the variable rate	LIBOR
Credit agreement basis spread on variable rate	7.60%
Credit agreement exit fee, percentage	5.75%
Credit agreement prepayment fee for first year, percentage	4.00%
Subsequent Event \| Credit Facility First Tranche
Subsequent Event [Line Items]
Maximum borrowing capacity	$ 20,000,000
Subsequent Event \| Credit Facility Second Tranche
Subsequent Event [Line Items]
Maximum borrowing capacity	15,000,000
Net commercial product revenue required to be achieved on trailing twelve month basis	40,000,000
Subsequent Event \| Spin-off
Subsequent Event [Line Items]
Ordinary shares issued in connection with spin-off		20,229,849
Subsequent Event \| Emergent
Subsequent Event [Line Items]
Record date for distribution		Jul. 22, 2016
Cash capitalized in spin-off		$ 45,000,000
Manufacturing services agreement expiration period		10 years
Subsequent Event \| Emergent \| Maximum
Subsequent Event [Line Items]
Transition Services Agreement, period		2 years
Subsequent Event \| Emergent \| Non Negotiable Unsecured Promissory Note
Subsequent Event [Line Items]
Cash funding committed by Emergent in connection with spin-off	$ 20,000,000
Subsequent Event \| Emergent \| Spin-off
Subsequent Event [Line Items]
Cash funding committed by Emergent in connection with spin-off, received		$ 45,000,000
Subsequent Event \| Emergent \| 6 to 12 months after separation \| Non Negotiable Unsecured Promissory Note
Subsequent Event [Line Items]
Cash funding committed by Emergent in connection with spin-off		$ 20,000,000
Subsequent Event \| Emergent \| Common stock
Subsequent Event [Line Items]
Percentage of outstanding shares distributed		100.00%
Ratio of stock received by Emergent?s shareholders		50.00%

Fair Value Measurements - Additional Information (Details)	6 Months Ended
	Jun. 30, 2016 USD ($)
Fair Value Disclosures [Abstract]
Future royalty payments expected	$ 0
Royalty agreement expiration date	Jun. 30, 2016