Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2016

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, 2016 and 2015:


In thousands	Trade Allowances			Rebates, Chargebacks and Discounts			Product Returns			Other Incentives			Total
Balance as of December 31, 2015	$	4,296		$	9,881		$	535		$	1,084		$	15,796
Provision related to current period sales		10,048			28,945			257			5,614			44,864
Provision related to prior period sales		(87	)		(466	)		—			—			(553	)
Credits/payments made for current period sales		(6,415	)		(10,750	)		—			(2,910	)		(20,075	)
Credits/payments made for prior period sales		(4,180	)		(8,497	)		(226	)		(1,284	)		(14,187	)

Balance as of June 30, 2016	$	3,662		$	19,113		$	566		$	2,504		$	25,845


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

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, 2016 and December 31, 2015:


In thousands	June 30, 2016			December 31, 2015
Gross trade accounts receivable	$	21,528		$	18,270
Trade allowances		(3,662	)		(4,296	)
Chargebacks		(227	)		(148	)

Accounts receivable, net	$	17,639		$	13,826

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 six months ended June 30, 2016 and 2015 are as follows:


	Three months ended June 30,						Six months ended June 30,
In thousands	2016			2015			2016			2015
Net loss	$	(13,354	)	$	(31,512	)	$	(43,125	)	$	(62,638	)
Preferred stock purchase option (see Note 8)		—			—			—			(868	)
Preferred stock beneficial conversion feature (see Note 8)		—			(31,341	)		—			(31,341	)

Net loss applicable to common shareholders—basic		(13,354	)		(62,853	)		(43,125	)		(94,847	)
Gain on warrant derivative liability		—			—			—			(119	)

Net loss—diluted		(13,354	)		(62,853	)		(43,125	)		(94,966	)
Net loss per share—basic and diluted		(0.07	)		(0.35	)		(0.23	)		(0.53	)
Weighted average shares outstanding—basic and diluted		184,471			180,464			184,262			178,036

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

For the three and six months ended June 30, 2016 and 2015, 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				Six months ended
In thousands	June 30, 2016		June 30, 2015		June 30, 2016		June 30, 2015
Stock options		20,641		11,750		20,641		11,750
Restricted stock and restricted stock units		10,361		4,046		10,361		4,046
Exchangeable senior notes (if converted)		59,407		49,215		59,407		49,215
Preferred stock (if converted)		32,818		28,932		32,818		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, 2016 and December 31, 2015 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, 2016
In thousands	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	14,210	$	14,210	$	—	$	—

Liabilities:
Long-term debt derivative liabilities	$	3,610	$	—	$	—	$	3,610


	December 31, 2015
In thousands	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	14,184	$	14,184	$	—	$	—

Liabilities:
Long-term debt derivative liabilities	$	8,170	$	—	$	—	$	8,170

Carrying Amounts and Estimated Fair Values of Debt Instruments

The carrying amounts and the estimated fair values of debt instruments as of June 30, 2016 and December 31, 2015 are as follows:


	June 30, 2016				December 31, 2015
In thousands	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Long-term debt—December 2012 financing	$	92,533	$	89,000	$	91,512	$	87,700
2012 Notes		15,107		14,686		15,107		13,637
2014 Notes		97,994		122,959		94,599		108,034
2015 Notes		27,650		32,378		27,028		28,448

Change in Fair Value of Derivative Liabilities

The change in the fair value of derivative liabilities for the six months ended June 30, 2016 and 2015 is as follows:


In thousands	October 2009 Warrants		Long-Term Debt Derivative Liabilities			Preferred Stock Purchase Option		Totals
Balance as of December 31, 2015	$	—	$	8,170		$	—	$	8,170
Gain on change in fair value of derivative liabilities		—		(4,560	)		—		(4,560	)

Balance as of June 30, 2016	$	—	$	3,610		$	—	$	3,610


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

- 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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