Subsequent event	6 Months Ended
Jun. 30, 2013
Subsequent event	12. Subsequent event On July 1, 2013, the Company entered into the Facility Agreement with Deerfield. Under the Facility Agreement, Deerfield committed to purchase up to $160.0 million aggregate principal amount of 2019 notes in four $40.0 million tranches. The closing of the first tranche of $40.0 million aggregate principal amount of 2019 notes (the purchase price for which was $21.1 million as a result of the original issue discount) occurred on the date of the Facility Agreement. Deerfield’s obligation to purchase the second tranche of 2019 notes is subject to the Company’s achievement and reporting of certain Phase 3 results relating to the Company’s clinical studies of AFREZZA. Deerfield’s obligation to purchase the third tranche of 2019 notes is subject to the Company’s repayment of its 2013 notes and the prior satisfaction of the conditions for the second tranche closing. Deerfield’s obligation to purchase the fourth tranche of 2019 notes is subject to the Company’s receipt of approval of AFREZZA by the U.S. Food and Drug Administration, or the FDA, and the prior satisfaction of the conditions for the second and third tranche closings. In addition to the foregoing conditions, Deerfield’s obligation to purchase 2019 notes at any of the three remaining closings is subject to, at each closing, the shares issuable upon conversion of all previously sold 2019 notes being freely tradable pursuant to an effective registration statement filed with the Securities and Exchange Commission or pursuant to Rule 144 under the Securities Act. The Company is required to repay 25% of the outstanding principal amount of the 2019 notes sold in each tranche on the third, fourth, fifth and sixth anniversaries of the applicable issue dates of such 2019 notes, and the entire outstanding principal amount of all 2019 notes will become due and payable no later than December 31, 2019. The outstanding amount of 2019 notes will accrue interest at a rate of 9.75% per year commencing on September 30, 2013, payable in cash quarterly in arrears on the last business day of December, March, June and September of each year. A portion of the principal amount of the 2019 notes may be converted into shares of the Company’s common stock at Deerfield’s option after a specified period following the release of data from the aforementioned clinical trials. The conversion price will be determined by the volume weighted average price of the common stock during the 20 trading days immediately preceding the conversion date. If the conversion price exceeds $6.67, no more than six million shares may be issued upon conversion; if the conversion price is less than $3.33, no more than 12 million shares may be issued upon conversion; and if the conversion price is between these dollar amounts, no more than $40 million worth of common stock may be issued upon conversion. In connection with the Facility Agreement, the Company also entered into a Milestone Rights Purchase Agreement (the “Milestone Agreement”) with Deerfield Private Design Fund and Horizon Santé FLML SÁRL (the “Milestone Purchasers”), pursuant to which, in exchange for a payment of $18.9 million, the Company sold the Milestone Purchasers rights to receive payments of up to $90.0 million upon the occurrence of specified strategic and sales milestones, including the first commercial sale of an AFREZZA product and the achievement of specified net sales figures.

12. Subsequent event

On July 1, 2013, the Company entered into the Facility Agreement with Deerfield. Under the Facility Agreement, Deerfield committed to purchase up to $160.0 million aggregate principal amount of 2019 notes in four $40.0 million tranches. The closing of the first tranche of $40.0 million aggregate principal amount of 2019 notes (the purchase price for which was $21.1 million as a result of the original issue discount) occurred on the date of the Facility Agreement. Deerfield’s obligation to purchase the second tranche of 2019 notes is subject to the Company’s achievement and reporting of certain Phase 3 results relating to the Company’s clinical studies of AFREZZA. Deerfield’s obligation to purchase the third tranche of 2019 notes is subject to the Company’s repayment of its 2013 notes and the prior satisfaction of the conditions for the second tranche closing. Deerfield’s obligation to purchase the fourth tranche of 2019 notes is subject to the Company’s receipt of approval of AFREZZA by the U.S. Food and Drug Administration, or the FDA, and the prior satisfaction of the conditions for the second and third tranche closings. In addition to the foregoing conditions, Deerfield’s obligation to purchase 2019 notes at any of the three remaining closings is subject to, at each closing, the shares issuable upon conversion of all previously sold 2019 notes being freely tradable pursuant to an effective registration statement filed with the Securities and Exchange Commission or pursuant to Rule 144 under the Securities Act. The Company is required to repay 25% of the outstanding principal amount of the 2019 notes sold in each tranche on the third, fourth, fifth and sixth anniversaries of the applicable issue dates of such 2019 notes, and the entire outstanding principal amount of all 2019 notes will become due and payable no later than December 31, 2019. The outstanding amount of 2019 notes will accrue interest at a rate of 9.75% per year commencing on September 30, 2013, payable in cash quarterly in arrears on the last business day of December, March, June and September of each year. A portion of the principal amount of the 2019 notes may be converted into shares of the Company’s common stock at Deerfield’s option after a specified period following the release of data from the aforementioned clinical trials. The conversion price will be determined by the volume weighted average price of the common stock during the 20 trading days immediately preceding the conversion date. If the conversion price exceeds $6.67, no more than six million shares may be issued upon conversion; if the conversion price is less than $3.33, no more than 12 million shares may be issued upon conversion; and if the conversion price is between these dollar amounts, no more than $40 million worth of common stock may be issued upon conversion. In connection with the Facility Agreement, the Company also entered into a Milestone Rights Purchase Agreement (the “Milestone Agreement”) with Deerfield Private Design Fund and Horizon Santé FLML SÁRL (the “Milestone Purchasers”), pursuant to which, in exchange for a payment of $18.9 million, the Company sold the Milestone Purchasers rights to receive payments of up to $90.0 million upon the occurrence of specified strategic and sales milestones, including the first commercial sale of an AFREZZA product and the achievement of specified net sales figures.