Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2014

Summarizes Activity of the Net Product Revenue Allowance and Reserve Categories

The following table summarizes activity in each of the net product revenue allowance and reserve categories described above for the years ended December 31, 2014 and 2013 (in thousands):


	Trade Allowances			Rebates, Chargebacks and Discounts			Product Returns		Other Incentives			Total
Balance at January 1, 2014	$	1,071		$	1,137		$	72	$	189		$	2,469
Provision related to current period sales		8,157			12,753			397		11,153			32,460
Provision related to prior period sales		(29	)		(80	)		12		(31	)		(128	)
Credits/payments made for current period sales		(5,950	)		(9,143	)		—		(10,338	)		(25,431	)
Credits/payments made for prior period sales		(1,042	)		(1,057	)		—		(181	)		(2,280	)

Balance at December 31, 2014	$	2,207		$	3,610		$	481	$	792		$	7,090


	Trade Allowances			Rebates, Chargebacks and Discounts			Product Returns		Other Incentives			Total
Balance at January 1, 2013	$	—		$	—		$	—	$	—		$	—
Provision related to current period and deferred sales		4,178			4,282			72		3,114			11,646
Credits/payments made for current period and deferred sales		(3,107	)		(3,145	)		—		(2,925	)		(9,177	)

Balance at December 31, 2013	$	1,071		$	1,137		$	72	$	189		$	2,469

Product Revenue Recognized and Deferred

The following table summarizes product revenue recognized and deferred during the years ended December 31, 2014 and 2013 (in thousands):


	December 31, 2014		December 31, 2013
Product revenue recognized, net	$	54,202	$	26,351
Deferred product revenue		—		1,703

	$	54,202	$	28,054

Expensed and Capitalized Cost of Goods

In conjunction with the Company’s recognition and deferral of product revenues, the Company expensed and capitalized the associated cost of goods, as follows, during the years ended December 31, 2014 and 2013 (in thousands):


	December 31, 2014		December 31, 2013
Cost of goods sold expensed	$	20,485	$	11,912
Finished goods inventory held by others		—		627

	$	20,485	$	12,539

Summarizes the Impact of Accounts Receivable Reserves on Gross Trade Accounts Receivable

The following table summarizes the impact of accounts receivable reserves on the gross trade accounts receivable balances as of December 31, 2014 and 2013 (in thousands):


	December 31, 2014			December 31, 2013
Gross trade accounts receivable	$	10,215		$	4,812
Trade allowances		(2,207	)		(1,143	)
Chargebacks		(166	)		(24	)

Accounts receivable, net	$	7,842		$	3,645

Estimated Useful Lives

The estimated useful lives, by asset classification, are as follows:


Asset Classification		Useful Lives
Computer equipment and software		3 - 5 years
Furniture and fixtures		5 years
Leasehold Improvements		Lesser of useful life or lease term

Net Income Loss and the Number of Shares Used to Compute Basic and Diluted Earnings per Share

The calculation of net loss and the number of shares used to compute basic and diluted earnings per share for the years ended December 31, 2014, 2013 and 2012 are as follows:


In thousands	2014			2013			2012
Net loss—basic	$	(56,364	)	$	(166,227	)	$	(179,184	)
Gain on warrant derivative liability		(6,775	)		(47,936	)		—

Net loss—diluted		(63,139	)		(214,163	)		(179,184	)
Net loss per share—basic	$	(0.32	)	$	(1.03	)	$	(1.24	)
Weighted average shares outstanding—basic		173,719			161,022			144,017
Effect of dilutive warrants		105			6,048			—

Weighted average shares outstanding—diluted		173,824			167,070			144,017
Net income loss per share—diluted	$	(0.36	)	$	(1.28	)	$	(1.24	)

Anti-Dilutive Securities Not Included in the Computation of Net Loss per Share

For the years ended December 31, 2014, 2013 and 2012, the following potentially dilutive securities were not included in the computation of net loss per share because the effect would be anti-dilutive:


In thousands	2014		2013		2012
Stock options		10,670		9,330		10,892
Restricted stock and restricted stock units		2,256		196		465
Warrants		—		1,702		9,937
Exchangeable senior notes (if converted)		49,215		17,021		17,021

Assets and Liability Measured at Fair Value on a Recurring Basis

The following table presents information about the Company’s assets and liabilities as of December 31, 2014 and 2013 that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:


	December 31, 2014
*In thousands*	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	65,156	$	65,156	$	—	$	—

Liabilities:
Warrant derivative liability	$	119	$	—	$	—	$	119
Long-term debt derivative liabilities	$	7,400	$	—	$	—	$	7,400


	December 31, 2013
*In thousands*	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	113,474	$	113,474	$	—	$	—

Liabilities:
Warrant derivative liability	$	6,894	$	—	$	—	$	6,894
Long-term debt derivative liability	$	11,100	$	—	$	—	$	11,100

Carrying Amounts and Estimated Fair Values of Debt Instruments

The carrying amounts and the estimated fair values of debt instruments as of December 31, 2014 and 2013 are as follows:


	December 31, 2014				December 31, 2013
In thousands	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt—December 2012 financing	$	89,617	$	81,000	$	87,717	$	75,700
2012 Notes		31,266		25,689		149,317		106,600
2014 Notes		90,580		75,533		—		—

Change in Fair Value of Derivative Liabilities

The change in the fair value of derivative liabilities is as follows (in thousands):


	October 2009 Warrants			Long-Term Debt Derivative Liabilities			Totals
Balance at December 31, 2012	$	54,854		$	14,577		$	69,431

Gain on change in fair value of derivative liabilities		(44,233	)		(3,477	)		(47,710	)
Compensation income for change in fair value of warrants issued to former employees		(3,703	)		—			(3,703	)
Transfers to equity		(24	)		—			(24	)


Balance at December 31, 2013	$	6,894		$	11,100		$	17,994

Record initial fair value of derivative liability on 2014 senior notes		—			3,500			3,500
Gain on change in fair value of derivative liabilities		(6,272	)		(7,200	)		(13,472	)
Compensation income for change in fair value of warrants issued to former employees		(503	)		—			(503	)

Balance at December 31, 2014	$	119		$	7,400		$	7,519