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Revenues
 9 Months Ended
Sep. 30, 2012
Revenues [Abstract]  
REVENUES

(4) REVENUES

The Company’s net revenues consisted of the following for the three and nine months ended September 30, 2012 and 2011:

 

                                 
    Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
    2012     2011     2012     2011  

Products:

                                

Acetadote

   $ 9,802,744     $ 10,882,342     $ 26,923,996     $ 31,594,237  

Kristalose

     2,376,231       2,077,310       6,773,287       6,249,662  

Caldolor

     295,011       47,966       604,414       145,947  

Other

     57,733       46,660       853,174       121,100  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total net revenues

   $ 12,531,719     $ 13,054,278     $ 35,154,871     $ 38,110,946  
   

 

 

    

 

 

    

 

 

    

 

 

  

In the first quarter of 2012, we entered into an exclusive licensing agreement for Acetadote and Caldolor with Harbin Gloria Pharmaceuticals Co., Ltd., a Chinese pharmaceutical company that has expertise in developing, registering, manufacturing and commercializing products in the China market. In connection with the agreement, we received a nonrefundable, up-front payment of $0.7 million in exchange for the transfer of certain intellectual property, including our product dossiers. We also have certain protective rights, including the right to review and approve all documents submitted to the Chinese State Drug Administration. We determined the agreement contains two units of accounting-—the transfer of certain rights, including the product dossier, for Acetadote and Caldolor, separately. As of March 31, 2012, we had delivered these items for Caldolor to the licensee, and recognized revenue of approximately $0.5 million as other revenue. The remaining up-front payment of $0.2 million related to Acetadote was recognized during the second quarter of 2012, when the intellectual property, including the dossier, was provided to the licensee.

The licensing agreement provides for us to receive additional milestone payments of $0.7 million when the licensee receives notice from the regulatory authority granting approval to conduct clinical trials, or stating that no clinical trials are necessary. In addition, we will receive milestone payments of $1.1 million upon receiving regulatory approval for each of Acetadote and Caldolor in China. We will recognize revenue for these substantive milestones using the milestone method. We use the milestone method of recognizing revenue for substantive milestones if (1) it is commensurate with either the performance to achieve the milestone or the enhancement of the value of the delivered item, (2) it relates solely to past performance and (3) it is reasonable relative to the other milestones. As of September 30, 2012, we have not recognized any revenue related to milestones associated with Harbin Gloria.

In addition to the revenue recognized for the up-front payments from our international partners, we had product sales of less than $0.1 million to non-U.S. customers for each of the three and nine months ended September 30, 2012 and 2011.