Net income (loss) from continuing operations

13,768

17,608

^[1]

15,587

18,590

^[1]

2,984

(73,409)

^[1]

(22,897)

(103,733)

^[1]

Discontinued operations (Note 2):

Income from discontinued operations, before income taxes

56,140

3,959

62,706

9,514

Income tax expense

(21,257)

(2,291)

(23,076)

(3,250)

Income from discontinued operations

34,883

1,668

39,630

6,264

Net income (loss)

$ 37,867

$ (71,741)

$ 16,733

$ (97,469)

Basic net income (loss) per share:

Net loss from continuing operations

$ 0.14

$ (3.63)

$ (1.08)

$ (5.13)

Net income from discontinued operations

1.63

0.08

1.87

0.31

Net income (loss)

$ 1.77

$ (3.55)

$ 0.79

$ (4.82)

Weighted-average shares used to compute per share calculation

21,385,381

20,235,987

21,138,332

20,231,910

Diluted net income (loss) per share:

Net loss from continuing operations

$ 0.14

$ (3.63)

$ (1.08)

$ (5.13)

Net income from discontinued operations

1.61

0.08

1.87

0.31

Net income (loss)

$ 1.75

$ (3.55)

$ 0.79

$ (4.82)

Weighted-average shares used to compute per share calculation

21,672,269

20,235,987

21,138,332

20,231,910

[1]

) These amounts reflect a benefit from income taxes after giving effect to the goodwill and deferred tax liability restatement discussed above. The impairment of the Company’s IPR&D in the quarter ended September 30, 2016 resulted in a benefit from income taxes of $15.3 million related to the reversal of the associated deferred tax liability in that quarter. The Company’s interim financial statements included in Form 10-Q for the quarter ended September 30, 2016 did not reflect this benefit from income taxes or the increase in impairment of goodwill.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income (loss)	$ 37,867	$ (71,741)	$ 16,733	$ (97,469)
Other comprehensive loss:
Unrealized losses on available-for-sale investments, net	(24)	(17)	(10)	(17)
Total comprehensive income (loss)	$ 37,843	$ (71,758)	$ 16,723	$ (97,486)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Operating Activities
Net income (loss)	$ 16,733	$ (97,469)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	3,829	2,067
Depreciation and amortization	2,991	2,912
Gain on sale of Hyperimmune Business	(52,538)
Impairment of goodwill and intangible assets		55,702
Income taxes	7,489	(506)
Change in fair value of contingent consideration		(261)
Changes in operating assets and liabilities:
Accounts receivable	(221)	3,497
Inventories	(776)	8,748
Income taxes		1,376
Prepaid expenses and other current assets	(815)	(1,475)
Accounts payable, accrued compensation and other liabilities	(1,941)	(1,155)
Change in assets and liabilities held for sale	2,700
Due to Soal	4
Sales rebates and discounts	100	(208)
Deferred revenue	(3,707)	(3,425)
Net cash used in operating activities	(26,152)	(30,197)
Investing Activities
Cash proceeds from sale of Hyperimmune Business	60,477
Proceeds from the maturity of investments	53,218
Purchases of property and equipment	(1,105)	(1,933)
Purchases of investments	(29,291)	(49,802)
Net cash provided by (used in) investing activities	83,299	(51,735)
Financing Activities
Transfer from former parent, prior to spin-off		45,000
Settlement of contribution receivable from former parent	20,000	25,549
Proceeds from long-term debt, net of issuance costs		18,038
Debt issuance costs	(150)
Proceeds from the exercise of stock options		2
Payments for taxes related to net share settlement of equity awards	(843)
Restricted cash	(10,000)	(400)
Net cash provided by financing activities	9,007	88,189
Increase cash and cash equivalents	66,154	6,257
Cash and cash equivalents at beginning of period	9,676	4,637
Cash and cash equivalents at end of period	$ 75,830	$ 10,894

Nature of Business and Significant Accounting Policies	9 Months Ended
Nature of Business and Significant Accounting Policies	Sep. 30, 2017
Accounting Policies [Abstract]
Nature of Business and Significant Accounting Policies	Note 1. Nature of Business and Significant Accounting Policies Organization and Basis of Presentation Aptevo Therapeutics Inc. (Aptevo, or the Company) is a biotechnology company focused on novel oncology (cancer) and hematology (blood disease) therapeutics to meaningfully improve patients’ lives. Our core technology is the ADAPTIR™ (modular protein technology) platform. We currently have one revenue-generating product in the area of hematology, as well as various investigational stage product candidates in the area of immuno-oncology. On September 28, 2017, Aptevo completed the sale of its hyperimmune business which consisted of the following products: WinRho^® SDF for autoimmune platelet disorder and hemolytic disease of the newborn; HepaGam B^® for the prevention of Hepatitis B following liver transplantation and for treatment following hepatitis B exposure; and VARIZIG^® for treatment following exposure to varicella zoster virus for individuals with compromised immune systems (Hyperimmune Business). As of September 30, 2017, the Hyperimmune Business met all the conditions to be classified as a discontinued operation since the sale of Hyperimmune Business represented a strategic shift that will have a major effect on the Company’s operations and financial results. The Company will not have further significant involvement in the operations of the discontinued Hyperimmune Business. The operating results of the Hyperimmune Business are reported as income from the discontinued operations, both pre-tax and net of tax, in the condensed consolidated statements of operations for all periods presented. The gain recognized on the sale of the Hyperimmune Business is presented in income (loss) from discontinued operations, both pre-tax and net of tax, in the condensed consolidated statement of operations. In addition, the consolidated and condensed balance sheets as of December 31, 2016, the assets and liabilities held for sale have been presented separately. See Note 2 - Sale of Hyperimmune Business for additional information. The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). These unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited financial statements and include all adjustments, which include normal recurring adjustments, necessary for the fair presentation of the Company’s financial position. On August 6, 2015, Emergent BioSolutions Inc., (Emergent or former parent), announced a plan to separate into two independent publicly traded companies. To accomplish this separation, Emergent created Aptevo Therapeutics Inc. or Aptevo, to be the parent company for the development-based biotechnology business focused on novel oncology and hematology therapeutics. Aptevo was incorporated in Delaware in February 2016 as a wholly owned subsidiary of Emergent. To effect the separation, Emergent made a pro rata distribution of Aptevo’s common stock to Emergent’s stockholders on August 1, 2016. We are currently trading on the NASDAQ Global Market under the symbol “APVO.” Prior to August 1, 2016, the consolidated financial statements were 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 a separately operated business in conformity with GAAP post the August 1, 2016 spin-off. Prior to August 1, 2016, the consolidated financial statements included an allocation of certain assets and liabilities that have historically been held at the Emergent corporate level but which were 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 was 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 issued at the distribution date. Prior to August 1, 2016, Aptevo’s consolidated financial statements included an allocation of expenses related to certain Emergent corporate functions, including senior management, legal, human resources, finance, information technology, and quality assurance. These expenses were 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. Prior to August 1, 2016, the income tax amounts in these consolidated financial statements were calculated based on a separate return methodology and presented as if Aptevo’s operations were a standalone taxpayer in each of its tax jurisdictions. 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 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. Accounts Receivable Aptevo records accounts receivable net of an allowance for doubtful accounts based upon its assessment of collectability, and of applicable discounts. Aptevo performs ongoing credit evaluations of its customers and generally does not require collateral. As a result of its sale of its Hyperimmune Business in September 2017, accounts receivable net of an allowance for doubtful accounts has been revised to reflect the removal of its allowance for doubtful accounts, as the prior balance solely related to the Hyperimmune Business. See Note 2, Sale of Hyperimmune Business for additional information on the divestiture. Revenue Recognition We recognize 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. Where the revenue recognition criteria are not met, we defer the recognition of revenue by recording deferred revenue until such time as all criteria are met. Income Taxes Aptevo recognized a tax impact due to the restatement of our tax liability (see Note 10 – Restatement), as well as the exception to the Intraperiod Tax Allocation rules in accordance with ASC 740-20-45-7. The exception required that all items (including discontinued operations) be considered in determining the amount of the tax benefit resulting from the loss in continuing operations. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported by companies while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards or GAAP. The main purpose of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively and improve guidance for multiple-element arrangements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for Aptevo in the first quarter of fiscal 2018. Aptevo has assembled a cross functional team to identify the population of contracts with customers and evaluate them under the provisions of ASU No. 2014-09. Aptevo intends to adopt the new standard on a modified retrospective basis. Under this implementation method, Aptevo will recognize the cumulative effect of initially applying the new guidance as an adjustment to the opening retained earnings balance for the annual reporting period of initial application. While Aptevo is continuing its assessment of all the potential impacts of the new standard, it does not expect the implementation of the standard to have a material impact on Aptevo’s consolidated financial position, results of operations or cash flow. In August 2014, the FASB issued ASU No.2014-15 Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under the new guidance, management is required to assess an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. The provisions of this standard are effective for annual periods ending after December 31, 2016, and for annual and interim periods thereafter. Aptevo adopted this guidance for the year ended December 31, 2016 and management believes that Aptevo’s existing cash, cash equivalents and short-term investments will be sufficient to fund its operations for twelve months from the date of this filing. Aptevo is required to reassess this position on a quarterly basis and future facts and circumstances may yield a different conclusion. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short term leases) at the commencement date. Lessor accounting under ASU 2016-02 is largely unchanged. ASU 2016-02 is effective for annual and interim periods beginning on or after December 15, 2018 and early adoption is permitted. Under ASU 2016-02, lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Lessees and lessors may not apply a full retrospective transition approach. The ASU will be effective for the Company starting on January 1, 2019. Aptevo is continuing to evaluate the impact of the application of this ASU on our consolidated financial statements and disclosures. We expect to recognize right of use assets and lease liabilities. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies the accounting for share-based payment award transactions including the financial statement presentation of excess tax benefits and deficiencies, classification of awards as either equity or liabilities, accounting for forfeitures and classification on the statement of cash flows. Aptevo adopted this standard effective January 1, 2017. Upon adoption of the standard, excess tax benefits and deficiencies resulting from stock-based compensation awards vesting and exercises are now recognized as discrete items in the statement of operations. Aptevo has elected to maintain its current forfeitures policy and will continue to include an estimate of forfeitures when recognizing stock-based compensation expense. Additionally, cash paid by Aptevo when directly withholding shares for tax withholding purposes will continue to be classified as a financing activity in the condensed consolidated statement of cash flows as required by the standard. The adoption of this standard did not have a material impact on Aptevo’s consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which clarifies the classification and presentation of eight specific cash flow issues in the statement of cash flows. This standard is effective beginning January 1, 2018, with early adoption permitted. The new standard requires a retrospective transition. Aptevo is aware the adoption of this standard will have an impact for restricted cash, and evaluating further impacts on its consolidated financial statements.

Sale of Hyperimmune Business

9 Months Ended

Sep. 30, 2017

Discontinued Operations And Disposal Groups [Abstract]

Sale of Hyperimmune Business

Note 2. Sale of Hyperimmune Business

On August 31, 2017, Aptevo entered into a sale agreement with Saol International Limited (Saol) whereby Aptevo agreed to sell its Hyperimmune Business. The sale was completed on September 28, 2017.

At the closing of the sale, Saol paid an amount equal to $65.0 million, including $3.3 million which was deposited in an escrow account for the purposes of satisfying any indemnification claims brought by Saol pursuant to the LLC sale agreement. In addition, Aptevo may receive (1) an additional potential milestone payment totaling up to $7.5 million related to the achievement of certain gross profit milestones and (2) up to $2.0 million related to collection of certain accounts receivable after the closing.

The net gain on sale of the Hyperimmune Business totaling, $52.5 million, was calculated as the difference between the fair value of the consideration received for the Hyperimmune Business, the carrying value of the net assets transferred to Saol, less the transaction costs incurred and a working capital adjustment. The net gain on sale of the business may be adjusted in future periods by the contingent consideration based upon the achievement of certain gross profit milestones and collection of certain outstanding accounts receivable.

The following table summarizes the gain on sale (in thousands):

Cash payment received	$	61,750
Escrow receivable		3,250
Total consideration		65,000
Less:
Net carrying value of assets transferred to Saol		10,315
Transaction costs		1,273
Working capital adjustment		874
Net gain on sale of business	$	52,538

As a result of Aptevo’s decision to sell the Hyperimmune Business, the condensed consolidated balance sheets for the year ended December 31, 2016, the condensed consolidated statements of operations for the three and nine months ended September 30, 2016 and September 30, 2017, have been revised to reflect the results from the sale of the Hyperimmune Business, and related assets and liabilities, as discontinued operations. The amounts calculated for the discontinued operations include certain allocations that management believes fairly reflect the Hyperimmune Business operations.

The following table presents a reconciliation of the carrying amounts of assets and liabilities of the hyperimmune assets held for sale, net in the unaudited condensed consolidated balance sheet (in thousands):

ASSETS	December 31, 2016
Accounts receivable	$	3,977
Inventories		6,178
Total current assets, held for sale		10,155

Intangible assets, net		7,624
Total assets held for sale	$	17,779
LIABILITIES
Accounts payable and other accrued liabilities	$	3,928
Total current liabilities	$	3,928

The following table represents the components attributable to the Hyperimmune Business presented as income from discontinued operations in the unaudited condensed consolidated statements of operations (in thousands):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
Revenues:
Product sales	$	6,380		$	6,589		$	18,886		$	20,462
Total revenues		6,380			6,589			18,886			20,462
Costs and expenses:
Cost of product sales		2,586			2,053			7,730			8,848
Research and development		3			37			44			92
Selling, general and administrative		189			540			944			2,008
Income from operations		3,602			3,959			10,168			9,514
Gain on sale of Hyperimmune Business		52,538			—			52,538			—
Income from discontinued operations, before income taxes		56,140			3,959			62,706			9,514
Income tax expense		(21,257	)		(2,291	)		(23,076	)		(3,250	)
Income from discontinued operations	$	34,883		$	1,668		$	39,630		$	6,264

Amortization for the Hyperimmune Business was $0.3 million and $0.9 million for the three and nine months ended September 30, 2017 and September 30, 2016, respectively. There was no depreciation, capital expenditures or other significant operating or investing non-cash items for the three and nine months ended September 30, 2017 and 2016.

The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 5C
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 360
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-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64862545&loc=SL51724579-110230

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 10
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Topic 205
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
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-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760

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-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
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-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

+ Details

Collaboration Agreement	9 Months Ended
Collaboration Agreement	Sep. 30, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Collaboration Agreement	Note 3. Collaboration Agreements Alligator On July 20, 2017, our wholly owned subsidiary Aptevo Research and Development LLC (Aptevo R&D), entered into a collaboration and option agreement (Collaboration Agreement) with Alligator Bioscience AB, (Alligator), pursuant to which Aptevo and Alligator will collaboratively develop ALG.APV-527, a lead bispecific antibody candidate simultaneously targeting 4-1BB (CD137), a member of the TNFR superfamily of a costimulatory receptor found on activated T cells, and 5T4 a tumor antigen widely overexpressed in a number of different types of cancer. This product candidate is built on our novel ADAPTIR platform, which is designed to expand on the utility and effectiveness of therapeutic antibodies. Under this Collaboration Agreement, Alligator also granted to Aptevo a time-limited option to enter into a second agreement with Alligator for the joint development of a separate bispecific antibody candidate simultaneously targeting 4-1BB (CD137) and 5T4 a tumor antigen that Aptevo R&D and Alligator will collaboratively select. In accordance with the terms of the Collaboration Agreement, the parties intend to develop the lead bispecific antibody candidate targeting 4-1BB (CD137) and 5T4 through the completion of Phase II clinical trials in accordance with an agreed upon development plan and budget. Subject to certain exceptions for Aptevo’s manufacturing and platform technologies, the parties will jointly own intellectual property generated in the performance of the development activities under the Collaboration Agreement. Following the completion of the anticipated development activities under the Collaboration Agreement, the parties intend to seek a third-party commercialization partner for this product candidate, or, in certain circumstances, may elect to enter into a second agreement granting rights to either Aptevo R&D or Alligator to allow such party to continue the development and commercialization of this product candidate. Under the terms of this Collaboration Agreement, the parties intend to share revenue received from a third-party commercialization partner equally, or, if the development costs are not equally shared under this Collaboration Agreement, in proportion to the development costs borne by each party. The Collaboration Agreement also contains several points in development at which either party may elect to “opt-out” (i.e., terminate without cause) and, following a termination notice period, cease paying development costs for this product candidate, which would be borne fully by the continuing party. Following an opt-out by a party, the continuing party will be granted exclusive rights to continue the development and commercialization of the product candidate, subject to a requirement to pay a percentage of revenue received from any future commercialization partner for this product, or, if the continuing party elects to self-commercialize, tiered royalties on the net sales of the product by the continuing party ranging from the low to mid-single digits, based on the point in development at which the ‘opt-out’ occurs. The parties have also agreed on certain technical criteria or ‘stage gates’ related to the development of this product candidate that, if not met, will cause an automatic termination and wind-down of this Collaboration Agreement and the activities thereunder, provided that the parties do not agree to continue. The Collaboration Agreement contains industry standard termination rights, including for material breach following a specified cure period, and in the case of a party’s insolvency. MorphoSys In August 2014, Aptevo entered into a collaboration agreement with MorphoSys AG (MorphoSys Agreement) for the joint development of MOR209/ES414, a targeted immunotherapeutics protein, which activates host T-cell immunity specifically against cancer cells expressing prostate specific membrane antigen, an antigen commonly overexpressed on prostate cancer cells. Effective August 31, 2017, MorphoSys terminated the MorphoSys Agreement. As a result of the termination, Aptevo has no ongoing obligation related to this agreement and therefore recognized the total remaining deferred revenue balance of $3.7 million as Collaborations revenue in the third quarter of 2017.

Fair Value Measurements

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 4. Fair Value Measurements

The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the fair value accounting guidance hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. The level in the fair value hierarchy within which the fair value measurement is reported is based on the lowest level input that is significant to the measurement in its entirety. The three levels of the hierarchy are as follows:

Level 1— Quoted prices in active markets for identical assets and liabilities;

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

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

The Company’s financial assets measured at fair value consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017
(in thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	16,778	$	—	$	—	$	16,778
Corporate bonds		—		8,973		—		8,973
US government and agency debt securities		—		11,973		—		11,973
Total assets	$	16,778	$	20,946	$	—	$	37,724

	December 31, 2016
(in thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	5,215	$	—	$	—	$	5,215
Corporate bonds		—		9,951		—		9,951
US government and agency debt securities		—		34,898		—		34,898
Total assets	$	5,215	$	44,849	$	—	$	50,064

If quoted market prices in active markets for identical assets are not available to determine fair value, then the Company uses quoted prices of similar instruments and other significant inputs derived from observable market data obtained from third-party data providers. These investments are included in Level 2 and consist of debt securities of U.S government agencies and corporate bonds. There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2017.

Cash held in demand deposit accounts of $69.1 million and $4.4 million is excluded from our fair-value hierarchy disclosure as of September 30, 2017 and December 31, 2016, respectively. The carrying amounts for receivables, accounts payable and other current monetary assets and liabilities approximate fair value because of the immediate or short-term maturity of these financial instruments.

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.

Investments Debt And Equity Securities [Abstract]

Investments

9 Months Ended

Sep. 30, 2017

Investments

Note 5. Investments

Investments are classified as available-for-sale securities and are carried at fair value with unrealized temporary holding gains and losses excluded from net income or loss and reported in other comprehensive income or loss and also as a net amount in accumulated other comprehensive income or loss until realized. Available-for-sale securities are written down to fair value through income whenever it is necessary to reflect other than temporary impairments. The Company determined that the unrealized losses on its investments as of September 30, 2017 and December 31, 2016 were temporary in nature. The Company currently has the ability but does not intend to sell these investments before recovery of their amortized cost basis. All short-term investments are limited to a final maturity of less than one year from the reporting date.

	September 30, 2017
(in thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding (Losses)			Estimated Fair Value
Cash equivalents:
Money market fund	$	16,778	$	—	$	—		$	16,778
Total cash equivalents	$	16,778	$	—	$	—		$	16,778

Short-term investments:
Corporate bonds	$	8,978	$	—	$	(5	)	$	8,973
US government and agency debt securities		11,978		—		(5	)		11,973
Total short-term investments	$	20,956	$	—	$	(10	)	$	20,946

	December 31, 2016
(in thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding (Losses)			Estimated Fair Value
Cash equivalents:
Money market fund	$	5,215	$	—	$	—		$	5,215
Total cash equivalents	$	5,215	$	—	$	—		$	5,215

Short-term investments:
Corporate bonds	$	9,959	$	1	$	(9	)	$	9,951
US government and agency debt securities		34,923		—		(25	)		34,898
Total short-term investments	$	44,882	$	1	$	(34	)	$	44,849

Inventories

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Inventories

Note 6. Inventories

Inventories consist of the following:

	September 30,		December 31,
(in thousands)	2017		2016⁽¹⁾
Raw materials and supplies	$	240	$	260
Work-in-process		57		4
Finished goods		940		197
Total inventories	$	1,237	$	461

⁽¹⁾The 2016 inventory balances have been updated to reflect the impact of the sale of the Hyperimmune Business. See Note 2 -Sale of Hyperimmune Business

Due to the sale of Aptevo’s Hyperimmune Business, the remaining inventory is solely related to IXINITY. CMC ICOS Biologics, Inc. (CMC) is the sole manufacturer of the bulk drug substance for our IXINITY product. During 2015, we ordered nine manufacturing lots of bulk drug substance from CMC and only one of those lots was successfully manufactured and released in 2015. On October 4, 2016, we provided a Notice of Interruption in Manufacturing, or Notice, to the U.S. Food and Drug Administration (FDA), notifying the FDA of a potential interruption in the supply of IXINITY due to the ongoing manufacturing challenges with the manufacturer of the bulk drug substance. On March 15, 2017, we announced the successful manufacture of a new bulk drug substance batch of IXINITY, providing new supply of IXINITY for the commercial market in May 2017.

On June 17, 2017, the Company and CMC entered into a new non-exclusive Amended and Restated Commercial Supply, or Restated Supply Agreement, for the commercial development and manufacture of IXINITY. Pursuant to the terms of the Restated Supply Agreement, CMC agreed to manufacture IXINITY in the quantity of batches provided to CMC on a twenty-four month rolling forecast. Beginning 2018, the minimum and maximum batches will be four and ten, respectively, in a calendar year. Multiple batches ordered in succession with no changeover to another product between batches, or a campaign, shall receive an incremental discounted price.

In accordance with the Restated Supply Agreement, a $7.0 million reserve held by CMC will be applied to, at a minimum, the next seven batches manufactured through the end of 2017 as a price concession. As a result, at least the next seven batches will have reduced raw materials or other related CMC costs associated with the inventory. Aptevo will also see an impact on the Company’s statement of operations due to a lower costs of goods sold associated with this inventory, which will also result in higher gross margins as sales are recognized. Any portion of the $7.0 million reserve held by CMC that remains unutilized as of December 25, 2017 shall be paid to the Company in cash on or before December 31, 2017. As of September 30, 2017, $2.6 million has been applied against the reserve and recorded as a reduced cost to inventory. The Restated Supply Agreement has a five-year term renewable with twenty-four months’ prior notice before the expiry of the term for successive two-year terms.

Debt	9 Months Ended
Debt	Sep. 30, 2017
Debt Disclosure [Abstract]
Debt	Note 7. Debt Credit Facility On August 4, 2016, we entered into a $35.0 million Credit and Security Agreement (the Credit Agreement) with MidCap Financial Trust. The Credit Agreement, prior to the amendments described below, provided us with up to $35.0 million of available borrowing capacity, available (subject to certain conditions) in two tranches of $20.0 million and $15.0 million. 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 was funded on the closing date of the Credit Agreement with the second tranche of $15.0 million to become 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 made this payment on January 13, 2017.We paid debt issuance costs of $1.9 million of which $1.5 million remains unamortized at September 30, 2017. The loan repayment included interest (no principal) through August 2018 and was set to transition to principal and interest as of August 2018 and to be repaid in full on February 1, 2021 (54 months). Amounts drawn under the Credit Agreement bear interest at a rate of LIBOR plus 7.60% per annum. The Credit Agreement contained financial covenants that require us and our subsidiaries to maintain increasing minimum net commercial product revenue for each twelve-month period ending on the last day of each calendar quarter, commencing with the twelve-month period ending September 30, 2016. As of March 31, 2017, the Company’s net minimum revenue did not meet the required minimum for the twelve months ended March 31, 2017. As a result, on May 11, 2017, we and MidCap Financial Trust entered into an amendment to the Credit Agreement to, among other things, waive the existing event of default and revise the financial covenants pertaining to the minimum required commercial product revenue for the twelve months ended March 31, 2017 and future rolling twelve month periods. As a result of the amendment, the Company was in compliance with the modified minimum net revenue covenant for the three and six months ended June 30, 2017. As such, amounts owed under the Credit Facility are classified based on their contractual maturities. This first amendment revised the provisions of the Credit Agreement to: (1) extend the time period through which the Company could draw the second tranche from August 2017 to March 2018, (2) increase the exit fee of 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 to 6.75% and (3) permit MidCap Financial Trust to obtain an affirmative lien on the intellectual property of the Company, upon the earlier of (i) the Company’s draw down of the second tranche or (ii) the Company’s cash, cash equivalents, and short-term investments balance descend below a minimum cash threshold of $25 million. On September 28, 2017, the Company entered into a second amendment of the Credit Agreement (Amendment No. 2) in order to permit the sale under the LLC purchase agreement described in Note 2 Sale of Hyperimmune Business, and to reflect changes in the remaining business as a result of such sale. Pursuant to the Amendment No. 2, the agent and the lenders consented to the LLC purchase agreement and the consummation of the sale transaction, released the agent’s liens on the assets transferred to Venus Bio Therapeutics Sub LLC (Venus) prior to the sale, and agreed that no prepayment of the term loans under the credit agreement would be required as a result the sale. In addition, as part of the Amendment No. 2, the agent and the lenders agreed that: (i) the commitments of the lenders to make the remaining $15 million tranche of loans under the credit agreement were terminated, (ii) the covenant levels set forth in the minimum net commercial product revenue covenant were revised, (iii) a new covenant was added requiring the Company to maintain a minimum $10.0 million unrestricted cash balance, and (iv) the date on which the term loans begin to amortize will be extended to February 1, 2019 if the Company achieves net commercial product revenues of $16 million for the twelve month period ending June 30, 2018 and maintains such level of net commercial product revenues for each quarter prior to February 1, 2019 thereafter.

Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

Note 8. Net Income (Loss) per Share

Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common share equivalents outstanding for the period using the as-if converted method. For the purpose of this calculation, stock options and restricted stock units are only included in the calculation of diluted net income per share when their effect is dilutive.

Prior to the spin-off, Aptevo did not operate as a separate entity and as a result did not have any common stock 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.

Common stock equivalents include stock options and unvested RSUs.

The following table presents the computation of basic and diluted net income (loss) per share (in thousands, except share and per share amounts):

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2017		2016 Restated			2017			2016 Restated
Net income (loss)	$	37,867	$	(71,741	)	$	16,733		$	(97,469	)

Basic net income (loss) per share:
Net loss from continuing operations	$	0.14	$	(3.63	)	$	(1.08	)	$	(5.13	)
Net income from discontinued operations	$	1.63	$	0.08		$	1.87		$	0.31
Net income (loss)	$	1.77	$	(3.55	)	$	0.79		$	(4.82	)
Weighted-average shares used to compute per share calculation		21,385,381		20,235,987			21,138,332			20,231,910

Diluted net income (loss) per share:
Net loss from continuing operations	$	0.14	$	(3.63	)	$	(1.08	)	$	(5.13	)
Net income from discontinued operations	$	1.61	$	0.08		$	1.87		$	0.31
Net income (loss)	$	1.75	$	(3.55	)	$	0.79		$	(4.82	)
Weighted-average shares used to compute per share calculation		21,672,269		20,235,987			21,138,332			20,231,910

The following table represents all potentially dilutive shares, which were all anti-dilutive and therefore excluded from the calculation of diluted net loss per share:

	For the Nine Months Ended September 30,
(in thousands, except for per share amounts)	2017		2016
Outstanding options to purchase common stock		2,989		2,053
Unvested RSUs		1,256		3,324

Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Equity

Note 9. Equity

Capitalization Upon Spin-off

On August 1, 2016, in connection with the spin-off of the Company from Emergent, we issued 20.2 million shares to Emergent stockholders and recorded a contribution from Emergent of $71.2 million. The transactions recorded in 2016 included a one-time payment of $45.0 million, and a working capital reimbursement for outstanding payments of $1.4 million, a noncash transfer of an intangible asset of $0.7 million, and a net transfer of cash from Emergent of $24.2 million. In addition, in the first quarter of 2017 we received $20.0 million as payment for a promissory note issued at the time of the spin-off.

Converted Equity Awards Incentive Plan

The Company had no stock-based compensation plans of its own prior to the spin-off from Emergent; however certain Aptevo employees participated in Emergent’s stock-based compensation plans (Emergent Plans), which provided for the grants of stock options and restricted stock units (RSUs). The expense associated with Aptevo employees who participated in the Emergent Plans was allocated to the Company in the accompanying Statements of Operations for the associated periods prior to the spin off.

In connection with the spin-off the Company adopted the Converted Equity Awards Incentive Plan (Converted Plan) and outstanding equity awards of Emergent held by Aptevo employees were converted into or replaced with equity awards of Aptevo (Conversion Awards) under the Converted Plan and were adjusted to maintain the economic value before and after the distribution date using the relative fair market value of the Emergent and Aptevo common stock based on the closing prices as of August 1, 2016. There was no significant incremental stock-based compensation expense recorded as a result of the equity award conversion. A total of 1.3 million shares of Aptevo common stock have been authorized for issuance under the Converted Plan. Options issued as Conversion Awards were priced according to the Converted Plan. RSUs issued as part of the Converted Plan provide for the issuance of a share of the Company’s stock at no cost to the holder.

2016 Stock Incentive Plan

On August 1, 2016, the Company adopted the 2016 Stock Incentive Plan (2016 SIP). A total of 3.1 million shares of Aptevo common stock have been authorized for issuance under the 2016 SIP in the form of incentive stock options.

Stock options under the 2016 SIP generally vest pro rata over a three-year period and terminate ten years from the grant date, though the specific terms of each grant are determined individually. The Company’s executive officers and certain other employees may be awarded options with different vesting criteria, and options granted to non-employee directors also vest over a three-year period. Option exercise prices for new options granted by the Company equal the closing price of the Company’s common stock on the NASDAQ Global Market on the date of grant.

RSUs issued under the 2016 SIP provide for the issuance of a share of the Company’s common stock at no cost to the holder. RSUs granted to employees under the 2016 SIP generally provide for time-based vesting over an eighteen-month to three-year period, although certain employees may be awarded RSUs with different time-based vesting criteria. Prior to vesting, RSUs granted under the 2016 SIP do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued or outstanding.

The equity compensation awards granted by the Company generally vest only if the employee is employed by the Company (or in the case of directors, the director continues to serve on the Board) on the vesting date.

On May 31, 2017, at the 2017 Annual Meeting of Stockholders (Annual Meeting), the Company’s stockholders approved the amendment and restatement of the Company’s 2016 SIP (Restated 2016 Plan) to, among other things, increase the number of authorized shares issuable by 1.3 million shares of Aptevo common stock. The Restated 2016 Plan was previously approved, subject to stockholder approval, by the Board of Directors of the Company. The Restated 2016 Plan became effective immediately upon stockholder approval at the Annual Meeting.

Stock-Based Compensation Expense

Stock-based compensation expense includes amortization of stock options and RSUs granted to employees and non-employees and has been reported in our Condensed Consolidated Statements of Operations as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	2017		2016		2017		2016
Research and development	$	555	$	1,027	$	1,791	$	1,761
Selling, general and administrative		485		306		2,028		306
Total stock-based compensation expense	$	1,040	$	1,333	$	3,819	$	2,067

The Company accounts for stock-based compensation by measuring the fair value of the award as of the grant date, recognizing the compensation expense for that fair value, reduced for an estimate of forfeitures, over the vesting period.

Stock Options

Aptevo utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted:

	For the Nine Months Ended September 30,
	2017		2016
Expected dividend yield		0.00%		0.00%
Expected volatility		75.00%		75.00%
Risk-free interest rate		1.91%		1.00%
Expected average life of options	6 years		3 years

Management applied an estimated forfeiture rate of 10%.

The following is a summary of option activity for the nine months ended September 30, 2017:

	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Term		Aggregate Intrinsic Value
Balance at December 31, 2016		2,085,214	$	2.57			$	164,767
Granted		993,339		2.07				—
Forfeited		89,245		2.35				4,769
Outstanding at September 30, 2017		2,989,308	$	2.41		6.88	$	328,052
Exercisable at September 30, 2017		1,292,727	$	2.42		4.58	$	110,082

As of September 30, 2017, we had $1.7 million of unrecognized compensation expense related to options expected to vest over a weighted average period of 2.1 years.

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the closing stock price of Aptevo’s common stock on the last trading day of September 30, 2017 and the exercise price, multiplied by the number of in the money options) that would have been received by the option holders had all the option holders exercised their options on September 30, 2017. The amount of aggregate intrinsic value will change based on the price of Aptevo’s common stock.

Restricted Stock Units

The following is a summary of RSU activity for the nine months ended September 30, 2017:

	Number of Units			Weighted Average Fair Value per Unit		Aggregate Fair Value
Balance at December 31, 2016		3,034,195		$	2.88	$	—
Granted		19,803			2.00		—
Vested		(1,555,217	)		2.84		—
Forfeited		(243,271	)		2.94		—
Outstanding at September 30, 2017		1,255,510		$	2.91	$	2,875,118
Expected to Vest		1,181,266		$	2.91	$	2,705,100

As of September 30, 2017, we had $1.5 million of unrecognized compensation expense related to RSUs expected to vest over a period of 0.8 years. The weighted average remaining contractual life of unvested RSUs is 2.5 years.

The fair value of each RSU has been determined to be the closing trading price of the Company’s common shares on the date of grant as quoted in NASDAQ Global Market.

Restatement

9 Months Ended

Sep. 30, 2017

Accounting Changes And Error Corrections [Abstract]

Restatement

Note 10. Restatement

Restatement Background

Our December 31, 2015 financial statements include $41.8 million of intangible assets which resulted from the acquisition of in process research and development (IPR&D) programs related to TRU-016, a novel CD37-directed therapy for B-cell malignancies, such as chronic lymphocytic leukemia and non-Hodgkin’s lymphoma. This amount was deemed to be an indefinite-lived asset, to remain as an indefinite-lived asset on the balance sheet until completion or abandonment of the associated research and development efforts. Following the spin-off of the Company in August 2016, the Company conducted an internal review of all deferred tax assets and liabilities acquired and it was determined that a deferred tax liability should have been recorded associated with the difference between the book basis and the tax basis of the asset as a part of the acquisition in 2010. The error has no effect on the net assets distributed in the spin-off.

Impact of Restatement

The Company has restated its statements of operations for the quarterly and nine month periods ended September 30, 2016. The restatement resulted in the recognition of a $15.3 million benefit from income taxes equal to the amount of the deferred tax liability recorded associated with the TRU-016 IPR&D asset when the $41.8 million was impaired. The restatement also resulted in an increase in the impairment expense recognized in the third quarter of 2016 due to the impairment of all goodwill, by the amount that goodwill would have been increased. These two restated captions on the statements of operations have the effect of offsetting each other, resulting in no impact to net loss for the quarter and nine months ended September 30, 2016. The restatement adjustment did not impact the consolidated statement of operations for any periods prior to the third quarter of 2016.

The impact of the restatement on the Company’s consolidated statements of operations, including the impact of discontinued operations, is reflected and quantified for interim periods affected, as applicable, in the below tables.

	Three Months Ended									Nine Months Ended
(in thousands)	September 30, 2016 (As previously reported)			Restatement Adjustment			September 30, 2016 (Restated)			September 30, 2016 (As previously reported)			Restatement Adjustment			September 30, 2016 (Restated)
Impairment expense	$	55,702		$	15,311		$	71,013		$	55,702		$	15,311		$	71,013
Loss from operations		(71,254	)		(19,271	)		(90,525	)		(97,081	)		(24,825	)		(121,906	)
Loss before income taxes		(71,747	)		(19,270	)		(91,017	)		(97,498	)		(24,825	)		(122,323	)
Benefit from income taxes		6			17,602			17,608			29			18,561			18,590
Net loss	$	(71,741	)	$	(1,668	)	$	(73,409	)	$	(97,469	)	$	(6,264	)	$	(103,733	)

The following table sets forth our unaudited quarterly consolidated statement of operations data for the three and nine months ended September 30, 2016:

(in thousands, except per share amounts)	Three Months Ended September 30, (Restated)⁽¹⁾			Nine Months Ended September 30, (Restated)⁽¹⁾
Revenue	$	2,816		$	7,203
Loss from operations		(90,525	)		(121,906	)
Loss before income taxes		(91,017	)		(122,323	)
Benefit from income taxes		17,608			18,590
Net loss	$	(73,409	)	$	(103,733	)
Net loss per share - basic and diluted	$	(3.55	)	$	(4.82	)

⁽¹⁾ These amounts reflect a benefit from income taxes after giving effect to the goodwill and deferred tax liability restatement discussed above. The impairment of the Company’s IPR&D in the quarter ended September 30, 2016 resulted in a benefit from income taxes of $15.3 million related to the reversal of the associated deferred tax liability in that quarter. The Company’s interim financial statements included in Form 10-Q for the quarter ended September 30, 2016 did not reflect this benefit from income taxes or the increase in impairment of goodwill.

The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period.

Nature of Business and Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Use of Estimates	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 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.
Accounts Receivable	Accounts Receivable Aptevo records accounts receivable net of an allowance for doubtful accounts based upon its assessment of collectability, and of applicable discounts. Aptevo performs ongoing credit evaluations of its customers and generally does not require collateral. As a result of its sale of its Hyperimmune Business in September 2017, accounts receivable net of an allowance for doubtful accounts has been revised to reflect the removal of its allowance for doubtful accounts, as the prior balance solely related to the Hyperimmune Business. See Note 2, Sale of Hyperimmune Business for additional information on the divestiture.
Revenue Recognition	Revenue Recognition We recognize 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. Where the revenue recognition criteria are not met, we defer the recognition of revenue by recording deferred revenue until such time as all criteria are met.
Income Taxes	Income Taxes Aptevo recognized a tax impact due to the restatement of our tax liability (see Note 10 – Restatement), as well as the exception to the Intraperiod Tax Allocation rules in accordance with ASC 740-20-45-7. The exception required that all items (including discontinued operations) be considered in determining the amount of the tax benefit resulting from the loss in continuing operations.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2014-09, Revenue from Contracts with Customers (Topic 606), an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported by companies while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards or GAAP. The main purpose of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which a company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively and improve guidance for multiple-element arrangements. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, which deferred the effective date of the new revenue standard for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, the updated standard is effective for Aptevo in the first quarter of fiscal 2018. Aptevo has assembled a cross functional team to identify the population of contracts with customers and evaluate them under the provisions of ASU No. 2014-09. Aptevo intends to adopt the new standard on a modified retrospective basis. Under this implementation method, Aptevo will recognize the cumulative effect of initially applying the new guidance as an adjustment to the opening retained earnings balance for the annual reporting period of initial application. While Aptevo is continuing its assessment of all the potential impacts of the new standard, it does not expect the implementation of the standard to have a material impact on Aptevo’s consolidated financial position, results of operations or cash flow. In August 2014, the FASB issued ASU No.2014-15 Disclosures of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under the new guidance, management is required to assess an entity’s ability to continue as a going concern and to provide related footnote disclosures in certain circumstances. The provisions of this standard are effective for annual periods ending after December 31, 2016, and for annual and interim periods thereafter. Aptevo adopted this guidance for the year ended December 31, 2016 and management believes that Aptevo’s existing cash, cash equivalents and short-term investments will be sufficient to fund its operations for twelve months from the date of this filing. Aptevo is required to reassess this position on a quarterly basis and future facts and circumstances may yield a different conclusion. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases (with the exception of short term leases) at the commencement date. Lessor accounting under ASU 2016-02 is largely unchanged. ASU 2016-02 is effective for annual and interim periods beginning on or after December 15, 2018 and early adoption is permitted. Under ASU 2016-02, lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Lessees and lessors may not apply a full retrospective transition approach. The ASU will be effective for the Company starting on January 1, 2019. Aptevo is continuing to evaluate the impact of the application of this ASU on our consolidated financial statements and disclosures. We expect to recognize right of use assets and lease liabilities. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies the accounting for share-based payment award transactions including the financial statement presentation of excess tax benefits and deficiencies, classification of awards as either equity or liabilities, accounting for forfeitures and classification on the statement of cash flows. Aptevo adopted this standard effective January 1, 2017. Upon adoption of the standard, excess tax benefits and deficiencies resulting from stock-based compensation awards vesting and exercises are now recognized as discrete items in the statement of operations. Aptevo has elected to maintain its current forfeitures policy and will continue to include an estimate of forfeitures when recognizing stock-based compensation expense. Additionally, cash paid by Aptevo when directly withholding shares for tax withholding purposes will continue to be classified as a financing activity in the condensed consolidated statement of cash flows as required by the standard. The adoption of this standard did not have a material impact on Aptevo’s consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments,” which clarifies the classification and presentation of eight specific cash flow issues in the statement of cash flows. This standard is effective beginning January 1, 2018, with early adoption permitted. The new standard requires a retrospective transition. Aptevo is aware the adoption of this standard will have an impact for restricted cash, and evaluating further impacts on its consolidated financial statements.

Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.

Disclosure of accounting policy for trade and other accounts receivable, and finance, loan and lease receivables, including those classified as held for investment and held for sale. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the valuation allowance for receivables is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of origination fees and costs, including the amortization method for net deferred fees or costs (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status and (7) the treatment of foreclosures or repossessions (8) the nature and amount of any guarantees to repurchase receivables.

Discontinued Operations And Disposal Groups [Abstract]

Sale of Hyperimmune Business (Tables)

9 Months Ended

Sep. 30, 2017

Summary of Gain on Sale

The following table summarizes the gain on sale (in thousands):

Cash payment received	$	61,750
Escrow receivable		3,250
Total consideration		65,000
Less:
Net carrying value of assets transferred to Saol		10,315
Transaction costs		1,273
Working capital adjustment		874
Net gain on sale of business	$	52,538

Summary of Reconciliation of Carrying Amounts of Assets and Liabilities of Hyperimmune Assets Held For Sale, Net in Unaudited Condensed Consolidated Balance Sheet and Components Attributable to Hyperimmune Business Presented as Income from Discontinued Operations in Unaudited Condensed Consolidated Statements of Operations

ASSETS	December 31, 2016
Accounts receivable	$	3,977
Inventories		6,178
Total current assets, held for sale		10,155

Intangible assets, net		7,624
Total assets held for sale	$	17,779
LIABILITIES
Accounts payable and other accrued liabilities	$	3,928
Total current liabilities	$	3,928

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2017			2016			2017			2016
Revenues:
Product sales	$	6,380		$	6,589		$	18,886		$	20,462
Total revenues		6,380			6,589			18,886			20,462
Costs and expenses:
Cost of product sales		2,586			2,053			7,730			8,848
Research and development		3			37			44			92
Selling, general and administrative		189			540			944			2,008
Income from operations		3,602			3,959			10,168			9,514
Gain on sale of Hyperimmune Business		52,538			—			52,538			—
Income from discontinued operations, before income taxes		56,140			3,959			62,706			9,514
Income tax expense		(21,257	)		(2,291	)		(23,076	)		(3,250	)
Income from discontinued operations	$	34,883		$	1,668		$	39,630		$	6,264

Summary of Financial Assets Measured at Fair Value

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64862545&loc=SL51724579-110230

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5C
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 360
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=64862545&loc=d3e2941-110230

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5B
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5A
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 5D
-URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760

+ Details

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

The Company’s financial assets measured at fair value consisted of the following as of September 30, 2017 and December 31, 2016:

	September 30, 2017
(in thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	16,778	$	—	$	—	$	16,778
Corporate bonds		—		8,973		—		8,973
US government and agency debt securities		—		11,973		—		11,973
Total assets	$	16,778	$	20,946	$	—	$	37,724

	December 31, 2016
(in thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Money market funds	$	5,215	$	—	$	—	$	5,215
Corporate bonds		—		9,951		—		9,951
US government and agency debt securities		—		34,898		—		34,898
Total assets	$	5,215	$	44,849	$	—	$	50,064

Investments (Tables)

9 Months Ended

Sep. 30, 2017

Investments Debt And Equity Securities [Abstract]

Schedule of short-term investments

All short-term investments are limited to a final maturity of less than one year from the reporting date.

	September 30, 2017
(in thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding (Losses)			Estimated Fair Value
Cash equivalents:
Money market fund	$	16,778	$	—	$	—		$	16,778
Total cash equivalents	$	16,778	$	—	$	—		$	16,778

Short-term investments:
Corporate bonds	$	8,978	$	—	$	(5	)	$	8,973
US government and agency debt securities		11,978		—		(5	)		11,973
Total short-term investments	$	20,956	$	—	$	(10	)	$	20,946

	December 31, 2016
(in thousands)	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding (Losses)			Estimated Fair Value
Cash equivalents:
Money market fund	$	5,215	$	—	$	—		$	5,215
Total cash equivalents	$	5,215	$	—	$	—		$	5,215

Short-term investments:
Corporate bonds	$	9,959	$	1	$	(9	)	$	9,951
US government and agency debt securities		34,923		—		(25	)		34,898
Total short-term investments	$	44,882	$	1	$	(34	)	$	44,849

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

Computation of Basic and Diluted Net Income (Loss) per Share

Inventories (Tables)

9 Months Ended

Sep. 30, 2017

Inventory Disclosure [Abstract]

Schedule of Inventories

Inventories consist of the following:

	September 30,		December 31,
(in thousands)	2017		2016⁽¹⁾
Raw materials and supplies	$	240	$	260
Work-in-process		57		4
Finished goods		940		197
Total inventories	$	1,237	$	461

⁽¹⁾The 2016 inventory balances have been updated to reflect the impact of the sale of the Hyperimmune Business. See Note 2 -Sale of Hyperimmune Business

Net Income (Loss) Per Share (Tables)

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

The following table presents the computation of basic and diluted net income (loss) per share (in thousands, except share and per share amounts):

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
	2017		2016 Restated			2017			2016 Restated
Net income (loss)	$	37,867	$	(71,741	)	$	16,733		$	(97,469	)

Basic net income (loss) per share:
Net loss from continuing operations	$	0.14	$	(3.63	)	$	(1.08	)	$	(5.13	)
Net income from discontinued operations	$	1.63	$	0.08		$	1.87		$	0.31
Net income (loss)	$	1.77	$	(3.55	)	$	0.79		$	(4.82	)
Weighted-average shares used to compute per share calculation		21,385,381		20,235,987			21,138,332			20,231,910

Diluted net income (loss) per share:
Net loss from continuing operations	$	0.14	$	(3.63	)	$	(1.08	)	$	(5.13	)
Net income from discontinued operations	$	1.61	$	0.08		$	1.87		$	0.31
Net income (loss)	$	1.75	$	(3.55	)	$	0.79		$	(4.82	)
Weighted-average shares used to compute per share calculation		21,672,269		20,235,987			21,138,332			20,231,910

Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share

The following table represents all potentially dilutive shares, which were all anti-dilutive and therefore excluded from the calculation of diluted net loss per share:

	For the Nine Months Ended September 30,
(in thousands, except for per share amounts)	2017		2016
Outstanding options to purchase common stock		2,989		2,053
Unvested RSUs		1,256		3,324

Equity (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	2017		2016		2017		2016
Research and development	$	555	$	1,027	$	1,791	$	1,761
Selling, general and administrative		485		306		2,028		306
Total stock-based compensation expense	$	1,040	$	1,333	$	3,819	$	2,067

Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model

Aptevo utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted:

	For the Nine Months Ended September 30,
	2017		2016
Expected dividend yield		0.00%		0.00%
Expected volatility		75.00%		75.00%
Risk-free interest rate		1.91%		1.00%
Expected average life of options	6 years		3 years

Summary of Stock Option Activity

The following is a summary of option activity for the nine months ended September 30, 2017:

	Number of Shares		Weighted- Average Exercise Price		Weighted- Average Remaining Term		Aggregate Intrinsic Value
Balance at December 31, 2016		2,085,214	$	2.57			$	164,767
Granted		993,339		2.07				—
Forfeited		89,245		2.35				4,769
Outstanding at September 30, 2017		2,989,308	$	2.41		6.88	$	328,052
Exercisable at September 30, 2017		1,292,727	$	2.42		4.58	$	110,082

Summary of RSU Activity

The following is a summary of RSU activity for the nine months ended September 30, 2017:

	Number of Units			Weighted Average Fair Value per Unit		Aggregate Fair Value
Balance at December 31, 2016		3,034,195		$	2.88	$	—
Granted		19,803			2.00		—
Vested		(1,555,217	)		2.84		—
Forfeited		(243,271	)		2.94		—
Outstanding at September 30, 2017		1,255,510		$	2.91	$	2,875,118
Expected to Vest		1,181,266		$	2.91	$	2,705,100

Restatement (Tables)

9 Months Ended

Sep. 30, 2017

Accounting Changes And Error Corrections [Abstract]

Impact of Restatement on Consolidated Statements of Operations Includes Impact of Discontinued Operations for Periods Affected

	Three Months Ended									Nine Months Ended
(in thousands)	September 30, 2016 (As previously reported)			Restatement Adjustment			September 30, 2016 (Restated)			September 30, 2016 (As previously reported)			Restatement Adjustment			September 30, 2016 (Restated)
Impairment expense	$	55,702		$	15,311		$	71,013		$	55,702		$	15,311		$	71,013
Loss from operations		(71,254	)		(19,271	)		(90,525	)		(97,081	)		(24,825	)		(121,906	)
Loss before income taxes		(71,747	)		(19,270	)		(91,017	)		(97,498	)		(24,825	)		(122,323	)
Benefit from income taxes		6			17,602			17,608			29			18,561			18,590
Net loss	$	(71,741	)	$	(1,668	)	$	(73,409	)	$	(97,469	)	$	(6,264	)	$	(103,733	)

Selected Quarterly Financial Data

The following table sets forth our unaudited quarterly consolidated statement of operations data for the three and nine months ended September 30, 2016:

(in thousands, except per share amounts)	Three Months Ended September 30, (Restated)⁽¹⁾			Nine Months Ended September 30, (Restated)⁽¹⁾
Revenue	$	2,816		$	7,203
Loss from operations		(90,525	)		(121,906	)
Loss before income taxes		(91,017	)		(122,323	)
Benefit from income taxes		17,608			18,590
Net loss	$	(73,409	)	$	(103,733	)
Net loss per share - basic and diluted	$	(3.55	)	$	(4.82	)

Nature of Business and Significant Accounting Policies - Additional Information (Details)	9 Months Ended
	Sep. 30, 2017 Product	Aug. 06, 2015 Company
Nature Of Business [Line Items]
Number of revenue-generating product \| Product	1
Month and year of incorporation	2016-02
Spin off transaction separation distribution agreement date	Aug. 01, 2016
Emergent
Nature Of Business [Line Items]
Number of independent publicly traded companies \| Company		2

Sale of Hyperimmune Business (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Sep. 28, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Net gain on sale of business				$ 52,538
Hyperimmune Business
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Business sale agreement date				Aug. 31, 2017
Business sale completion date				Sep. 28, 2017
Cash payment received	$ 65,000
Escrow receivable	3,250
Net gain on sale of business	52,538	$ 52,538		$ 52,538
Amortization		300	$ 300	900	$ 900
Depreciation		0	0	0	0
Capital expenditures		0	0	0	0
Other non-cash operating activities		0	0	0	0
Other non-cash investing activities		$ 0	$ 0	$ 0	$ 0
Hyperimmune Business \| Maximum
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Additional potential milestone payment related to gross profit	7,500
Additional potential milestone payment related to accounts receivable	$ 2,000

Sale of Hyperimmune Business - Summary of Gain on Sale (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Sep. 28, 2017	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Net gain on sale of business			$ 52,538
Hyperimmune Business
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Cash payment received	$ 61,750
Escrow receivable	3,250
Total consideration	65,000
Net carrying value of assets transferred to Saol	10,315			$ 17,779
Transaction costs	1,273
Working capital adjustment	874
Net gain on sale of business	$ 52,538	$ 52,538	$ 52,538

Sale of Hyperimmune Business - Summary of Reconciliation of Carrying Amounts of Assets and Liabilities of Hyperimmune Assets Held For Sale, Net in Unaudited Condensed Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 28, 2017	Dec. 31, 2016
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Total current assets, held for sale		$ 10,155
Total current liabilities		3,928
Hyperimmune Business
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Accounts receivable		3,977
Inventories		6,178
Total current assets, held for sale		10,155
Intangible assets, net		7,624
Total assets held for sale	$ 10,315	17,779
Accounts payable and other accrued liabilities		3,928
Total current liabilities		$ 3,928

Sale of Hyperimmune Business - Summary of Components Attributable to Hyperimmune Business Presented as Income from Discontinued Operations in Unaudited Condensed Consolidated Statements of Operations (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Sep. 28, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Costs and expenses:
Net gain on sale of business				$ 52,538
Income from discontinued operations, before income taxes		$ 56,140	$ 3,959	62,706	$ 9,514
Income tax expense		(21,257)	(2,291)	(23,076)	(3,250)
Income from discontinued operations		34,883	1,668	39,630	6,264
Hyperimmune Business
Revenues:
Product sales		6,380	6,589	18,886	20,462
Total revenues		6,380	6,589	18,886	20,462
Costs and expenses:
Cost of product sales		2,586	2,053	7,730	8,848
Research and development		3	37	44	92
Selling, general and administrative		189	540	944	2,008
Income from operations		3,602	3,959	10,168	9,514
Net gain on sale of business	$ 52,538	52,538		52,538
Income from discontinued operations, before income taxes		56,140	3,959	62,706	9,514
Income tax expense		(21,257)	(2,291)	(23,076)	(3,250)
Income from discontinued operations		$ 34,883	$ 1,668	$ 39,630	$ 6,264

Collaboration Agreement - Additional Information (Details) $ in Millions	Sep. 30, 2017 USD ($)
MorphoSys Agreement
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items]
Deferred revenue	$ 3.7

Fair Value Measurements - Summary of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Financial Assets:
Assets fair value	$ 37,724	$ 50,064
Money Market Funds
Financial Assets:
Assets fair value	16,778	5,215
Corporate Bonds
Financial Assets:
Assets fair value	8,973	9,951
US Government and Agency Debt Securities
Financial Assets:
Assets fair value	11,973	34,898
Level 1
Financial Assets:
Assets fair value	16,778	5,215
Level 1 \| Money Market Funds
Financial Assets:
Assets fair value	16,778	5,215
Level 2
Financial Assets:
Assets fair value	20,946	44,849
Level 2 \| Corporate Bonds
Financial Assets:
Assets fair value	8,973	9,951
Level 2 \| US Government and Agency Debt Securities
Financial Assets:
Assets fair value	$ 11,973	$ 34,898

Fair Value Measurements - Additional Information (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Schedule Of Fair Value Disclosure [Line Items]
Fair value assets, level 1 to level 2 transfers	$ 0
Fair value assets, level 2 to level 1 transfers	0
Demand Deposit Accounts
Schedule Of Fair Value Disclosure [Line Items]
Cash held in demand deposit accounts	$ 69,100,000	$ 4,400,000

Investments - Schedule of Short-term Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Short-term Investments
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 20,956	$ 44,882
Gross Unrealized Holding Gains	0	1
Gross Unrealized Holding (Losses)	(10)	(34)
Estimated Fair Value	20,946	44,849
Short-term Investments \| Corporate Bonds
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	8,978	9,959
Gross Unrealized Holding Gains	0	1
Gross Unrealized Holding (Losses)	(5)	(9)
Estimated Fair Value	8,973	9,951
Short-term Investments \| US Government and Agency Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	11,978	34,923
Gross Unrealized Holding Gains	0	0
Gross Unrealized Holding (Losses)	(5)	(25)
Estimated Fair Value	11,973	34,898
Cash Equivalents
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	16,778	5,215
Gross Unrealized Holding Gains	0	0
Gross Unrealized Holding (Losses)	0	0
Estimated Fair Value	16,778	5,215
Cash Equivalents \| Money Market Fund
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	16,778	5,215
Gross Unrealized Holding Gains	0	0
Gross Unrealized Holding (Losses)	0	0
Estimated Fair Value	$ 16,778	$ 5,215

Inventories - Schedule of Inventories (Details) - USD ($)
$ in Thousands

Sep. 30, 2017

Dec. 31, 2016

^[1]

Inventory Adjustments [Abstract]

Raw materials and supplies

$ 240

$ 260

Work-in-process

Finished goods

940

197

Total inventories

$ 1,237

$ 461

[1]	The 2016 inventory balances have been updated to reflect the impact of the sale of the Hyperimmune Business. See Note 2 -Sale of Hyperimmune Business

Inventories - Additional Information (Details) - CMC - Manufacturing Services Agreement $ in Millions	9 Months Ended
	Sep. 30, 2017 USD ($)	Jun. 17, 2017 USD ($) Batch
Inventory [Line Items]
Manufacturing agreement, reserve held \| $		$ 7.0
Expiration period of supply agreement	5 years
Supply agreement renewable term description	The Restated Supply Agreement has a five-year term renewable with twenty-four months’ prior notice before the expiry of the term for successive two-year terms.
Description of quantity of batches manufactured	Pursuant to the terms of the Restated Supply Agreement, CMC agreed to manufacture IXINITY in the quantity of batches provided to CMC on a twenty-four month rolling forecast.
Reduction in cost to inventory \| $	$ 2.6
Minimum \| Beginning 2018
Inventory [Line Items]
Manufacturing agreement, number of batches		4
Minimum \| Through the End 2017
Inventory [Line Items]
Manufacturing agreement, number of batches		7
Maximum \| Beginning 2018
Inventory [Line Items]
Manufacturing agreement, number of batches		10

Debt - Additional Information (Details) - USD ($)				9 Months Ended
Debt - Additional Information (Details) - USD ($)	Sep. 28, 2017	May 11, 2017	Aug. 04, 2016	Sep. 30, 2017	Jan. 13, 2017
Line Of Credit Facility [Line Items]
Maximum borrowing capacity			$ 35,000,000
Credit facility repayment term, description				The loan repayment included interest (no principal) through August 2018 and was set to transition to principal and interest as of August 2018 and to be repaid in full on February 1, 2021 (54 months).
Credit facility repayment period			54 months
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%
Cash funding committed by Emergent in connection with spin-off					$ 20,000,000
Debt issuance costs				$ 150,000
Unamortized debt issuance costs				1,500,000
Credit agreement exit fee, percentage			5.75%
Credit agreement final principal payment, percentage		6.75%
Credit agreement minimum cash threshold required amount		$ 25,000,000
Prepayment of term loans	$ 0
Line of Credit
Line Of Credit Facility [Line Items]
Debt issuance costs				$ 1,900,000
Credit Facility First Tranche
Line Of Credit Facility [Line Items]
Maximum borrowing capacity			$ 20,000,000
Credit Facility Second Tranche
Line Of Credit Facility [Line Items]
Maximum borrowing capacity			15,000,000
Net commercial product revenue required to be achieved on trailing twelve month basis	16,000,000		$ 40,000,000
Maximum borrowing capacity withdrawal date of tranche		2018-03	2017-08
Terminated maximum borrowing capacity	$ 15,000,000
Term loans extended amortization date based on net commercial product revenues recognized	Feb. 01, 2019
Net commercial product revenue, date to be achieved	Jun. 30, 2018
Net commercial product revenue requirements to be maintained				The date on which the term loans begin to amortize will be extended to February 1, 2019 if the Company achieves net commercial product revenues of $16 million for the twelve month period ending June 30, 2018 and maintains such level of net commercial product revenues for each quarter prior to February 1, 2019 thereafter
Credit Facility Second Tranche \| Minimum
Line Of Credit Facility [Line Items]
Cash held in demand deposit accounts	$ 10,000,000

Net Income (Loss) Per Share - Additional Information (Details) - shares	Sep. 30, 2017	Dec. 31, 2016
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Ordinary shares outstanding	21,426,731	20,271,737
Ordinary shares issued in connection with spin-off	21,426,731	20,271,737
Emergent
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Ordinary shares outstanding	1,000
Spin-off
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Ordinary shares issued in connection with spin-off	20,229,849

Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net income (loss)	$ 37,867	$ (71,741)	$ 16,733	$ (97,469)
Basic net income (loss) per share:
Net loss from continuing operations	$ 0.14	$ (3.63)	$ (1.08)	$ (5.13)
Net income from discontinued operations	1.63	0.08	1.87	0.31
Net income (loss)	$ 1.77	$ (3.55)	$ 0.79	$ (4.82)
Weighted-average shares used to compute per share calculation	21,385,381	20,235,987	21,138,332	20,231,910
Diluted net income (loss) per share:
Net loss from continuing operations	$ 0.14	$ (3.63)	$ (1.08)	$ (5.13)
Net income from discontinued operations	1.61	0.08	1.87	0.31
Net income (loss)	$ 1.75	$ (3.55)	$ 0.79	$ (4.82)
Weighted-average shares used to compute per share calculation	21,672,269	20,235,987	21,138,332	20,231,910

Net Income (Loss) Per Share - Summary of Potentially Dilutive Shares Excluded from Calculation of Net Loss Per Share (Details) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Outstanding Options to Purchase Common Stock
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	2,989	2,053
Unvested RSUs
Schedule Of Earnings Per Share Basic And Diluted [Line Items]
Anti-dilutive shares excluded from calculation of diluted net loss per share	1,256	3,324

Equity - Additional Information (Details) - USD ($)			3 Months Ended	6 Months Ended	9 Months Ended
Equity - Additional Information (Details) - USD ($)	Aug. 02, 2016	Aug. 01, 2016	Mar. 31, 2017	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	May 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Transfer from former parent, prior to spin-off						$ 45,000,000
Cash received for a promissory note issued at the time of the spin-off.						$ 18,038,000
RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation expense					$ 1,500,000
Expected vesting period					9 months 19 days
Weighted average remaining contractual life					2 years 6 months
Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Estimated forfeiture rate					10.00%
Unrecognized compensation expense					$ 1,700,000
Options expected to vest, weighted average period					2 years 1 month 7 days
Converted Equity Awards Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Incremental stock-based compensation expense recorded as result of equity award conversion	$ 0
Converted Equity Awards Incentive Plan \| Common Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan		1,300,000
2016 Stock Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock authorized for issuance under Stock Plan		3,100,000
Stock plan vesting period				3 years
Stock plan termination period		10 years
2016 Stock Incentive Plan \| RSUs \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period		18 months
2016 Stock Incentive Plan \| RSUs \| Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period		3 years
2016 Stock Incentive Plan \| Non-employee Directors
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock plan vesting period		3 years
Restated 2016 Plan \| RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Increase of authorized shares issuable							1,300,000
Spin-off \| Emergent
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued		20,200,000
Transfer from former parent, prior to spin-off	71,200,000
One-time payment amount	45,000,000
Working capital reimbursement for outstanding payments	1,400,000
Noncash transfer of intangible asset	700,000
Net transfers of cash from former parent	$ 24,200,000
Spin-off \| Promissory Note \| Emergent
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Cash received for a promissory note issued at the time of the spin-off.			$ 20,000,000

Equity - Summary of Stock-based Compensation Expense Includes Amortization of Stock Options and Restricted Stock Units Granted (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 1,040	$ 1,333	$ 3,819	$ 2,067
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	555	1,027	1,791	1,761
Selling, General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense	$ 485	$ 306	$ 2,028	$ 306

Equity - Assumptions used in Valuing the Stock Options Granted under Black-Scholes Valuation Model (Details) - Stock Option	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%
Expected volatility	75.00%	75.00%
Risk-free interest rate	1.91%	1.00%
Expected average life of options	6 years	3 years

Equity - Summary of Stock Option Activity (Details) - Stock Option	9 Months Ended
	Sep. 30, 2017 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Outstanding, Beginning balance \| shares	2,085,214
Number of Shares, Granted \| shares	993,339
Number of Shares, Forfeited \| shares	89,245
Number of Shares, Outstanding, Ending balance \| shares	2,989,308
Number of Shares, Exercisable \| shares	1,292,727
Weighted-Average Exercise Price, Outstanding, Beginning balance \| $ / shares	$ 2.57
Weighted-Average Exercise Price, Granted \| $ / shares	2.07
Weighted-Average Exercise Price, Forfeited \| $ / shares	2.35
Weighted-Average Exercise Price, Outstanding, Ending balance \| $ / shares	2.41
Weighted-Average Exercise Price, Exercisable \| $ / shares	$ 2.42
Weighted-Average Remaining Term, Outstanding	6 years 10 months 17 days
Weighted-Average Remaining Term, Exercisable	4 years 6 months 29 days
Aggregate Intrinsic Value, Outstanding, Beginning balance \| $	$ 164,767
Aggregate Intrinsic Value, Forfeited \| $	4,769
Aggregate Intrinsic Value, Outstanding, Ending balance \| $	328,052
Aggregate Intrinsic Value, Exercisable \| $	$ 110,082

Equity - Summary of RSU Activity (Details) - RSUs	9 Months Ended
Equity - Summary of RSU Activity (Details) - RSUs	Sep. 30, 2017 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Units, Outstanding, Beginning balance \| shares	3,034,195
Number of Units, Granted \| shares	19,803
Number of Units, Vested \| shares	(1,555,217)
Number of Units, Forfeited \| shares	(243,271)
Number of Units, Outstanding, Ending balance \| shares	1,255,510
Number of Units, Expected to Vest \| shares	1,181,266
Weighted Average Fair Value per Unit, Outstanding Beginning Balance \| $ / shares	$ 2.88
Weighted Average Fair Value per Unit, Granted \| $ / shares	2.00
Weighted Average Fair Value per Unit, Vested \| $ / shares	2.84
Weighted Average Fair Value per Unit, Forfeited \| $ / shares	2.94
Weighted Average Fair Value per Unit, Outstanding Ending Balance \| $ / shares	2.91
Weighted Average Fair Value per Unit, Expected to Vest \| $ / shares	$ 2.91
Aggregate Fair Value, Outstanding, Ending balance \| $	$ 2,875,118
Aggregate Fair Value, Expected to Vest \| $	$ 2,705,100

Restatement - Additional Information (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Sep. 30, 2017

Sep. 30, 2016

Sep. 30, 2017

Sep. 30, 2016

Dec. 31, 2015

Error Corrections And Prior Period Adjustments Restatement [Line Items]

Spin off transaction separation distribution agreement date

Aug. 01, 2016

Error Corrections And Prior Period Adjustments Restatement [Line Items]

$ 13,768

$ 17,608

^[1]

$ 15,587

$ 18,590

^[1]

Restatement Adjustment

IPR&D Asset | Restatement Adjustment

17,602

18,561

Error Corrections And Prior Period Adjustments Restatement [Line Items]