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Significant Accounting Policies (Tables) | 9 Months Ended
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Sep. 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 nine months ended September 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 |  |  | 15,823 |  |  |  | 46,553 |  |  |  | 403 |  |  |  | 8,539 |  |  |  | 71,318 |
Provision related to prior period sales |  |  | (87 | ) |  |  | (402 | ) |  |  | — |  |  |  | — |  |  |  | (489 | )
Credits/payments made for current period sales |  |  | (11,086 | ) |  |  | (22,236 | ) |  |  | — |  |  |  | (6,788 | ) |  |  | (40,110 | )
Credits/payments made for prior period sales |  |  | (4,180 | ) |  |  | (8,492 | ) |  |  | (247 | ) |  |  | (1,284 | ) |  |  | (14,203 | )
Balance as of September 30, 2016 |  | $ | 4,766 |  |  | $ | 25,304 |  |  | $ | 691 |  |  | $ | 1,551 |  |  | $ | 32,312 |
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, 2016 and December 31, 2015:
In thousands |  | September 30, 2016 |  |  | December 31, 2015 |
Gross trade accounts receivable |  | $ | 22,522 |  |  | $ | 18,270 |
Trade allowances |  |  | (4,766 | ) |  |  | (4,296 | )
Chargebacks |  |  | (240 | ) |  |  | (148 | )
Allowance for doubtful accounts |  |  | (12 | ) |  |  | — |
Accounts receivable, net |  | $ | 17,504 |  |  | $ | 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 nine months ended September 30, 2016 and 2015 are as follows:
|  | Three months ended September 30, |  |  | Nine months ended September 30, |
In thousands |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Net loss |  | $ | (15,772 | ) |  | $ | (30,675 | ) |  | $ | (58,897 | ) |  | $ | (93,313 | )
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 |  |  | (15,772 | ) |  |  | (32,321 | ) |  |  | (58,897 | ) |  |  | (127,168 | )
Gain on warrant derivative liability |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (119 | )
Net loss—diluted |  |  | (15,772 | ) |  |  | (32,321 | ) |  |  | (58,897 | ) |  |  | (127,287 | )
Net loss per share—basic and diluted |  |  | (0.08 | ) |  |  | (0.18 | ) |  |  | (0.31 | ) |  |  | (0.71 | )
Weighted average shares outstanding—basic and diluted |  |  | 209,149 |  |  |  | 183,245 |  |  |  | 192,618 |  |  |  | 179,780 |
Anti-Dilutive Securities Not Included in the Computation of Net Loss or Earnings per Share | For the three and nine months ended September 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 September 30, |  |  | Nine months ended September 30, |
In thousands |  | 2016 |  |  | 2015 |  |  | 2016 |  |  | 2015 |
Stock options |  |  | 21,241 |  |  |  | 17,627 |  |  |  | 21,241 |  |  |  | 17,627 |
Restricted stock and restricted stock units |  |  | 10,346 |  |  |  | 11,001 |  |  |  | 10,346 |  |  |  | 11,001 |
Exchangeable senior notes (if converted) |  |  | 1,714 |  |  |  | 49,215 |  |  |  | 1,714 |  |  |  | 49,215 |
Preferred stock (if converted) |  |  | 32,818 |  |  |  | 32,818 |  |  |  | 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, 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:
|  | September 30, 2016 |
In thousands |  | Total |  |  | Level 1 |  |  | Level 2 |  |  | Level 3 |
Asset: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents—money markets |  | $ | 14,223 |  |  | $ | 14,223 |  |  | $ | — |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Long-term debt derivative liabilities |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
|  | 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 of cash, cash equivalents, accounts payable and accrued liabilities approximate fair value because of their short-term nature. The carrying amounts and the estimated fair values of debt instruments as of September 30, 2016 and December 31, 2015 are as follows:
|  | September 30, 2016 |  |  | December 31, 2015 |
In thousands |  | Carrying Value |  |  | Estimated Fair Value |  |  | Carrying Value |  |  | Estimated Fair Value |
Long-term debt from royalty-bearing instrument |  | $ | 93,055 |  |  | $ | 90,800 |  |  | $ | 91,512 |  |  | $ | 87,700 |
2012 Notes |  |  | 15,107 |  |  |  | 15,084 |  |  |  | 15,107 |  |  |  | 13,637 |
2014 Notes |  |  | — |  |  |  | — |  |  |  | 94,599 |  |  |  | 108,034 |
2015 Notes |  |  | — |  |  |  | — |  |  |  | 27,028 |  |  |  | 28,448 |
Change in Fair Value of Derivative Liabilities | The change in the fair value of derivative liabilities for the nine months ended September 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 |  |  | — |  |  |  | (8,170 | ) |  |  | — |  |  |  | (8,170 | )
Balance as of September 30, 2016 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
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 |

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