Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2015

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 three months ended March 31, 2015 and 2014 (in thousands):


	Trade Allowances			Rebates, Chargebacks and Discounts			Product Returns		Other Incentives			Total

Balance at December 31, 2014	$	2,207		$	3,610		$	481	$	792		$	7,090
Provision related to current period sales		2,756			5,145			127		1,717			9,745
Provision related to prior period sales		—			74			—		—			74
Credits/payments made for current period sales		(462	)		(1,288	)		—		(1,085	)		(2,835	)
Credits/payments made for prior period sales		(1,555	)		(3,367	)		—		(607	)		(5,529	)

Balance at March 31, 2015	$	2,946		$	4,174		$	608	$	817		$	8,545


	Trade Allowances			Rebates, Chargebacks and Discounts			Product Returns		Other Incentives			Total
Balance at December 31, 2013	$	1,071		$	1,137		$	72	$	189		$	2,469
Provision related to current period sales		1,400			1,930			68		901			4,299
Provision related to prior period sales		—			—			12		—			12
Credits/payments made for current period sales		(411	)		(765	)		—		(972	)		(2,148	)
Credits/payments made for prior period sales		(926	)		(911	)		—		—			(1,837	)

Balance at March 31, 2014	$	1,134		$	1,391		$	152	$	118		$	2,795

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 March 31, 2015 and December 31, 2014 (in thousands):


	March 31, 2015			December 31, 2014
Gross trade accounts receivable	$	11,796		$	10,215
Trade allowances		(2,946	)		(2,207	)
Chargebacks		(305	)		(166	)

Accounts receivable, net	$	8,545		$	7,842

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 three months ended March 31, 2015 and 2014 are as follows:


In thousands	March 31, 2015			March 31, 2014
Net loss	$	(31,126	)	$	(25,980	)
Preferred stock purchase option (see Note 8)		(868	)		—

Net loss applicable to common shareholders—basic		(31,994	)		(25,980	)
Gain on warrant derivative liability		(119	)		(965	)

Net loss—diluted		(32,113	)		(26,945	)
Net loss per share—basic		(0.18	)		(0.15	)
Weighted average shares outstanding—basic		175,582			172,872
Effect of dilutive warrants		—			1,559

Weighted average shares outstanding—diluted		175,582			174,431
Net income loss per share—diluted	$	(0.18	)	$	(0.15	)

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

For the three months ended March 31, 2015 and 2014, 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	March 31, 2015		March 31, 2014
Stock options		12,078		11,577
Restricted stock and restricted stock units		4,071		2,168
Warrants		—		1,685
Exchangeable senior notes (if converted)		49,215		17,021
Preferred stock (if converted)		35,215		—

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 March 31, 2015 and December 31, 2014 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:


	March 31, 2015
*In thousands*	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	40,163	$	40,163	$	—	$	—


Liabilities:
Long-term debt derivative liabilities	$	6,100	$	—	$	—	$	6,100


	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 liability	$	7,400	$	—	$	—	$	7,400

Carrying Amounts and Estimated Fair Values of Debt Instruments

The carrying amounts and the estimated fair values of debt instruments as of March 31, 2015 and December 31, 2014 are as follows:


	March 31, 2015				December 31, 2014
In thousands	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt—December 2012 financing	$	90,082	$	84,900	$	89,617	$	81,000
2012 Notes		31,266		26,521		31,266		25,689
2014 Notes		91,926		124,932		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			Preferred Stock Purchase Option			Totals
Balance at December 31, 2014	$	119		$	7,400		$	—		$	7,519
Record derivative liability		—			—			868			868
Gain on change in fair value of derivative liabilities		(110	)		(1,300	)		946			(464	)
Compensation income for change in fair value of warrants issued to former employees		(9	)		—			—			(9	)
Transfer derivative liability to equity		—			—			(1,814	)		(1,814	)

Balance at March 31, 2015	$	—		$	6,100		$	—		$	6,100


	October 2009 Warrants			Long-Term Debt Derivative Liability			Totals

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

Gain on change in fair value of derivative liability		(893	)		(3,500	)		(4,393	)
Compensation income for change in fair value of warrants issued to former employees		(72	)		—			(72	)


Balance at March 31, 2014	$	5,929		$	7,600		$	13,529

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

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