Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2017

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, 2017 and 2016:

In thousands	Trade Allowances			Rebates, Chargebacks and Discounts			Product Returns			Other Incentives			Total
Balance as of December 31, 2016	$	3,743		$	20,915		$	859		$	1,681		$	27,198
Provision related to current period sales		24,780			87,499			1,496			10,796			124,571
Provision related to prior period sales		(297	)		(841	)		—			(82	)		(1,220	)
Credits/payments made for current period sales		(11,061	)		(62,014	)		(391	)		(8,834	)		(82,300	)
Credits/payments made for prior period sales		(3,107	)		(16,722	)		(24	)		(1,770	)		(21,623	)
Balance as of September 30, 2017	$	14,058		$	28,837		$	1,940		$	1,791		$	46,626

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

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, 2017 and December 31, 2016:

In thousands	September 30, 2017			December 31, 2016
Gross trade accounts receivable	$	49,054		$	24,127
Trade allowances		(14,058	)		(3,743	)
Chargebacks		(374	)		(387	)
Allowance for doubtful accounts		(12	)		(12	)
Accounts receivable, net	$	34,610		$	19,985

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, 2017 and 2016 are as follows:

	Three months ended September 30,						Nine months ended September 30,
In thousands	2017			2016			2017			2016
Net loss—basic and diluted	$	(10,825	)	$	(15,772	)	$	(45,400	)	$	(58,897	)
Weighted average shares outstanding—basic and diluted		270,803			209,149			270,566			192,618
Net loss per share—basic and diluted	$	(0.04	)	$	(0.08	)	$	(0.17	)	$	(0.31	)

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

For the three and nine months ended September 30, 2017 and 2016, 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	2017		2016		2017		2016
Stock options		23,631		21,241		23,631		21,241
Restricted stock and restricted stock units		11,887		10,346		11,887		10,346
Exchangeable senior notes (if converted)		7,716		1,714		7,716		1,714
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, 2017 and December 31, 2016 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, 2017
In thousands	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	9,296	$	9,296	$	—	$	—

	December 31, 2016
In thousands	Total		Level 1		Level 2		Level 3
Asset:
Cash equivalents—money markets	$	14,238	$	14,238	$	—	$	—

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, 2017 and December 31, 2016 are as follows:

	September 30, 2017				December 31, 2016
In thousands	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
Current portion of long-term debt from royalty-bearing instrument, net of accrued interest	$	19,624			$	8,437
Long-term debt from royalty-bearing instrument		75,559				85,155
Total long-term debt from royalty-bearing instrument	$	95,183	$	90,400	$	93,592	$	90,500

2012 Notes		—		—		15,107		15,174

2017 Notes		28,938		34,000		—		—

- 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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