Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2015

Summarize Activity of the Net Product Revenue Allowance and Reserve Categories

The following tables summarize activity in each of the net product revenue allowance and reserve categories described above for the six months ended June 30, 2015 and 2014 (in thousands):


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

Balance as of December 31, 2014	$	2,207		$	3,610		$	481		$	792		$	7,090
Provision related to current period sales		6,044			11,957			276			3,691			21,968
Provision related to prior period sales		(113	)		(44	)		—			—			(157	)
Credits/payments made for current period sales		(3,810	)		(6,243	)		—			(2,149	)		(12,202	)
Credits/payments made for prior period sales		(2,039	)		(3,531	)		(14	)		(792	)		(6,376	)

Balance as of June 30, 2015	$	2,289		$	5,749		$	743		$	1,542		$	10,323


	Trade Allowances			Rebates, Chargebacks and Discounts			Product Returns		Other Incentives			Total
Balance as of December 31, 2013	$	1,071		$	1,137		$	72	$	189		$	2,469
Provision related to current period sales		3,325			4,978			163		2,254			10,720
Provision related to prior period sales		—			—			12		—			12
Credits/payments made for current period sales		(2,082	)		(3,301	)		—		(2,218	)		(7,601	)
Credits/payments made for prior period sales		(926	)		(910	)		—		—			(1,836	)

Balance as of June 30, 2014	$	1,388		$	1,904		$	247	$	225		$	3,764

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 June 30, 2015 and December 31, 2014 (in thousands):


	June 30, 2015			December 31, 2014
Gross trade accounts receivable	$	12,329		$	10,215
Trade allowances		(2,289	)		(2,207	)
Chargebacks		(97	)		(166	)

Accounts receivable, net	$	9,943		$	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 Net Loss or Earnings per Share

The calculation of net loss or income and the number of shares used to compute basic and diluted net loss or earnings per share for the three and six months ended June 30, 2015 and 2014 are as follows:


	Three months ended						Six months ended
In thousands	June 30, 2015			June 30, 2014			June 30, 2015			June 30, 2014
Net (loss) income	$	(31,512	)	$	15,323		$	(62,638	)	$	(10,657	)
Preferred stock purchase option (see Note 8)		—			—			(868	)		—
Preferred stock beneficial conversion feature (see Note 8)		(31,341	)		—			(31,341	)		—

Net (loss) income applicable to common shareholders—basic		(62,853	)		15,323			(94,847	)		(10,657	)
Gain on warrant derivative liability		—			(1,416	)		(119	)		(2,381	)
Gain on exchangeable senior notes derivative liability		—			(200	)		—			—
Exchangeable senior notes interest		—			1,960			—			—

Net (loss) income—diluted		(62,853	)		15,667			(94,966	)		(13,038	)
Net (loss) earnings per share—basic		(0.35	)		0.09			(0.53	)		(0.06	)
Weighted average shares outstanding—basic		180,464			172,886			178,036			172,879
Effect of dilutive warrants		—			963			—			997
Effect of dilutive stock options		—			277			—			—
Effect of dilutive restricted stock		—			2,022			—			—
Effect of dilutive exchangeable senior notes (if converted)		—			31,526			—			—

Weighted average shares outstanding—diluted		180,464			207,674			178,036			173,876
Net (loss) earnings per share—diluted	$	(0.35	)	$	0.08		$	(0.53	)	$	(0.07	)

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

For the three and six months ended June 30, 2015 and 2014, the following potentially dilutive securities were not included in the computation of net loss or earnings per share because the effect would be anti-dilutive:


	Three months ended				Six months ended
In thousands	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014
Stock options		11,750		10,644		11,750		11,864
Restricted stock and restricted stock units		4,046		—		4,046		2,305
Warrants		—		—		—		1,685
Exchangeable senior notes (if converted)		49,215		—		49,215		49,215
Preferred stock (if converted)		28,932		—		28,932		—

Assets and Liability Measured at Fair Value on a Recurring Basis

The following tables present information about the Company’s assets and liabilities as of June 30, 2015 and December 31, 2014 that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value:


	June 30, 2015
*In thousands*	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	40,170	$	40,170	$	—	$	—


Liabilities:
Long-term debt derivative liabilities	$	6,700	$	—	$	—	$	6,700


	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 June 30, 2015 and December 31, 2014 are as follows:


	June 30, 2015				December 31, 2014
In thousands	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt—December 2012 financing	$	90,522	$	85,700	$	89,617	$	81,000
2012 Notes		31,266		27,066		31,266		25,689
2014 Notes		93,363		131,406		90,580		75,533

Change in Fair Value of Derivative Liabilities

The change in the fair value of derivative liabilities for the six months ended June 30, 2015 and 2014 is as follows (in thousands):


	October 2009 Warrants			Long-Term Debt Derivative Liabilities			Preferred Stock Purchase Option			Totals
Balance as of December 31, 2014	$	119		$	7,400		$	—		$	7,519
Record derivative liability		—			—			868			868
(Gain) loss on change in fair value of derivative liabilities		(110	)		(700	)		946			136
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 as of June 30, 2015	$	—		$	6,700		$	—		$	6,700


	October 2009 Warrants			Long-Term Debt Derivative Liability			Totals

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

Record initial fair value of derivative liability on senior notes		—			3,500			3,500
Gain on change in fair value of derivative liability		(2,204	)		(5,200	)		(7,404	)
Compensation income for change in fair value of warrants issued to former employees		(177	)		—			(177	)


Balance as of June 30, 2014	$	4,513		$	9,400		$	13,913