Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2015

Summarize 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 nine months ended September 30, 2015 (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		10,104			21,633			231			5,976			37,944
Provision related to prior period sales		(174	)		(70	)		—			—			(244	)
Credits/payments made for current period sales		(6,729	)		(14,194	)		—			(4,220	)		(25,143	)
Credits/payments made for prior period sales		(2,043	)		(3,522	)		(26	)		(792	)		(6,383	)

Balance as of September 30, 2015	$	3,365		$	7,457		$	686		$	1,756		$	13,264

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


	September 30, 2015			December 31, 2014
Gross trade accounts receivable	$	14,721		$	10,215
Trade allowances		(3,365	)		(2,207	)
Chargebacks		(117	)		(166	)

Accounts receivable, net	$	11,239		$	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 Loss and the Number of Shares Used to Compute Basic and Diluted Net Loss per Share

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


	Three months ended						Nine months ended
In thousands	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Net loss	$	(30,675	)	$	(26,050	)	$	(93,313	)	$	(36,707	)
Preferred stock purchase option (see Note 8)		—			—			(868	)		—
Preferred stock beneficial conversion features (see Note 8)		(1,646	)		—			(32,987	)		—

Net loss applicable to common shareholders—basic		(32,321	)		(26,050	)		(127,168	)		(36,707	)
Gain on warrant derivative liability		—			(4,392	)		(119	)		(6,773	)

Net loss—diluted		(32,321	)		(30,442	)		(127,287	)		(43,480	)
Net loss per share—basic		(0.18	)		(0.15	)		(0.71	)		(0.21	)
Weighted average shares outstanding—basic		183,245			174,502			179,780			173,426
Effect of dilutive warrants		—			639			—			879

Weighted average shares outstanding—diluted		183,245			175,141			179,780			174,305
Net loss per share—diluted	$	(0.18	)	$	(0.17	)	$	(0.71	)	$	(0.25	)

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

For the three and nine months ended September 30, 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:


	Three months ended				Nine months ended
In thousands	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Stock options		17,627		11,246		17,627		11,246
Restricted stock and restricted stock units		11,001		2,262		11,001		2,262
Exchangeable senior notes (if converted)		49,215		49,215		49,215		49,215
Preferred stock (if converted)		32,818		—		32,818		—

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 September 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:


	September 30, 2015
*In thousands*	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	15,179	$	15,179	$	—	$	—


Liabilities:
Long-term debt derivative liabilities	$	6,930	$	—	$	—	$	6,930


	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

Carrying Amounts and Estimated Fair Values of Debt Instruments

The carrying amounts and the estimated fair values of debt instruments as of September 30, 2015 and December 31, 2014 are as follows:


	September 30, 2015				December 31, 2014
In thousands	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt—December 2012 financing	$	91,009	$	89,400	$	89,617	$	81,000
2012 Notes		31,266		27,627		31,266		25,689
2014 Notes		94,842		109,608		90,580		75,533

Change in Fair Value of Derivative Liabilities

The change in the fair value of derivative liabilities for the nine months ended September 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	)		(470	)		946			366
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 September 30, 2015	$	—		$	6,930		$	—		$	6,930


	October 2009 Warrants			Long-Term Debt Derivative Liabilities			Preferred Stock Purchase Option		Totals
Balance as of 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		(6,270	)		(5,600	)		—		(11,870	)
Compensation income for change in fair value of warrants issued to former employees		(503	)		—			—		(503	)

Balance as of September 30, 2014	$	121		$	9,000		$	—	$	9,121