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Basis of Presentation (Tables)
 9 Months Ended
Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of computation of basic and diluted net income (loss) per share
The following table presents the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):

 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
Net income
$
224,539

 
$
1,280

 
$
248,857

 
$
4,969

 
 
 
 
 
 
 
 
Shares used to compute basic income per share
19,886,877

 
20,417,187

 
19,741,081

 
20,584,469

Dilutive potential common shares:
 
 
 
 
 
 
 
Restricted stock
63,324

 
22,531

 
55,899

 
37,387

     Stock options
763,856

 
905,593

 
922,051

 
1,010,665

     0.75% Convertible Senior Notes, Due 2019
745,591

 
—

 
402,941

 
—

Shares used to compute diluted income per share
21,459,648

 
21,345,311

 
21,121,972

 
21,632,521

 
 
 
 
 
 
 
 
Basic net income per share
$
11.29

 
$
0.06

 
$
12.61

 
$
0.24

 
 
 
 
 
 
 
 
Diluted net income per share
$
10.46

 
$
0.06

 
$
11.78

 
$
0.23
Summary of investment categories
The following table summarizes the various investment categories at September 30, 2015 and December 31, 2014 (in thousands):

 
Amortized cost
 
Gross unrealized
gains
 
Gross unrealized
losses
 
Estimated
fair value
September 30, 2015
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 


     Bank deposits
$
38,712

 
$
4

 
$
(1
)
 
$
38,715

     Corporate bonds
29,347

 
2

 
(5
)
 
29,344

     Commercial paper
2,000

 
—

 
—

 
2,000

     Asset backed securities
15,995

 
—

 
(4
)
 
15,991

     Corporate equity securities
1,917

 
5,561

 
—

 
7,478

Restricted investments
600

 
—

 
—

 
600

 
$
88,571

 
$
5,567

 
$
(10
)
 
$
94,128

December 31, 2014
 
 
 
 
 
 
 
Short-term investments
 
 
 
 
 
 
 
     Corporate equity securities
$
2,179

 
$
4,954

 
$
—

 
$
7,133

Restricted investments
1,261

 
—

 
—

 
1,261

 
$
3,440

 
$
4,954

 
$
—

 
$
8,394
Summary of goodwill and other identifiable intangible assets
Goodwill and other identifiable intangible assets consist of the following (in thousands):

 
September 30,
 
December 31,
 
2015
 
2014
Indefinite lived intangible assets
 
 
 
     Acquired in-process research and development ("IPR&D")
$
12,556

 
$
12,556

     Goodwill
12,238

 
12,238

Definite lived intangible assets
 
 
 
     Complete technology
15,267

 
15,267

          Less: Accumulated amortization
(3,571
)
 
(2,999
)
     Trade name
2,642

 
2,642

          Less: Accumulated amortization
(619
)
 
(519
)
     Customer relationships
29,600

 
29,600

          Less: Accumulated amortization
(6,934
)
 
(5,824
)
Total goodwill and other identifiable intangible assets, net
$
61,179

 
$
62,961
Summary of property and equipment
Property and equipment is stated at cost and consists of the following (in thousands):

 
September 30,
 
December 31,
 
2015
 
2014
Lab and office equipment
$
2,182

 
$
2,232

Leasehold improvements
273

 
273

Computer equipment and software
632

 
624

 
3,087

 
3,129

Less accumulated depreciation and amortization
(2,732
)
 
(2,643
)
     Total property and equipment, net
$
355

 
$
486
Summary of other current assets
Other current assets consist of the following (in thousands):

 
September 30,
 
December 31,
 
2015
 
2014
Prepaid expenses
$
1,494

 
$
835

Other receivables
283

 
685

Co-promote receivable
—

 
322

     Total other current assets
$
1,777

 
$
1,842
Summary of accrued liabilities
Accrued liabilities consist of the following (in thousands):

 
September 30,
 
December 31,
 
2015
 
2014
Compensation
$
1,485

 
$
1,708

Professional fees
443

 
459

Amounts owed to former licensees
956

 
925

Royalties owed to third parties
798

 
705

Other
474

 
1,069

     Total accrued liabilities
$
4,156

 
$
4,866
Summary of other long-term liabilities
Other long-term liabilities consist of the following (in thousands):

 
September 30,
 
December 31,
 
2015
 
2014
Deposits
$
319

 
$
411

Deferred rent
291

 
327

Other
33

 
32

     Total other long-term liabilities
$
643

 
$
770
Schedule for accounting for share-based compensation
The following table summarizes stock-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):

 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
Stock-based compensation expense as a component of:
 
 
 
 
 
 
 
Research and development expenses
$
957

 
$
1,169

 
$
3,131

 
$
2,814

General and administrative expenses
1,879

 
2,533

 
6,380

 
5,981

 
$
2,836

 
$
3,702

 
$
9,511

 
$
8,795
Summary of fair-value options awarded to employees and directors
The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:

 
Three months ended
 
Nine months ended
 
September 30,
 
September 30,
 
2015
 
2014
 
2015
 
2014
Risk-free interest rate
2.0%
 
1.9%
 
1.7%-2.0%
 
1.9%
Dividend yield
—
 
—
 
—
 
—
Expected volatility
50%
 
67%
 
50%-58%
 
68%
Expected term
6.5
 
6.4
 
6.6
 
6.4
Forfeiture rate
8.5%
 
8.6%
 
8.5%
 
8.6%-9.7%