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Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2012	Jul. 31, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	CADENCE PHARMACEUTICALS INC
Entity Central Index Key	0001333248
Document Type	10-Q
Document Period End Date	Jun. 30, 2012
Amendment Flag	false
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		85,559,556

Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 86,987	$ 82,609
Investments in marketable securities	3,772	44,618
Restricted cash	450	450
Accounts receivable, net	4,968	2,703
Inventory	4,328	1,388
Prepaid expenses	1,035	1,071
Other current assets	50	90
Total current assets	101,590	132,929
Property and equipment, net	10,296	10,569
Intangible assets, net	12,761	13,433
Restricted cash	190	190
Other assets	7,027	7,039
Total assets	131,864	164,160
Current liabilities:
Accounts payable	8,212	3,801
Accrued liabilities	12,071	10,945
Deferred revenue	1,677	1,291
Current debt, less discount of $184 and $ , respectively	5,179
Total current liabilities	27,139	16,037
Long-term debt, less current portion and discount of $848 and $1,304, respectively	23,789	28,696
Other liabilities	442	117
Total liabilities	51,370	44,850
Commitments and contingencies (Note 11)
Stockholders' equity:
Common stock, $0.0001 par value; 200,000,000 shares authorized and 85,559,556 shares issued and outstanding at June 30, 2012 and 100,000,000 shares authorized and 85,511,607 shares issued and outstanding at December 31, 2011	9	9
Additional paid-in capital	490,830	485,982
Accumulated other comprehensive income		2
Accumulated deficit	(410,345)	(366,683)
Total stockholders' equity	80,494	119,310
Total liabilities and stockholders' equity	$ 131,864	$ 164,160

Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Common stock, Par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	100,000,000
Common stock, shares issued	85,559,556	85,511,607
Common stock, shares outstanding	85,559,556	85,511,607
Long Term Debt Current [Member]
Discount on debt	$ 184
Long Term Debt Noncurrent [Member]
Discount on debt	$ 848	$ 1,304

Condensed Statements of Operations (Unaudited) - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

Revenues:

Product revenue, net

$ 11,075

$ 1,706

$ 19,079

$ 2,056

License revenues

5,210

Total revenues

11,108

6,916

19,112

7,266

Costs and expenses:

Cost of product sales

5,756

981

10,002

1,270

Amortization of patent license

336

672

896

Research and development

1,700

2,600

3,211

5,346

Selling, general and administrative

23,241

21,082

46,772

41,060

Other

(1)

Total costs and expenses

31,034

24,998

60,658

48,571

Loss from operations

(19,926)

(18,082)

(41,546)

(41,305)

Other (expense) income:

Interest income

Interest expense

(1,110)

(1,163)

(2,209)

(2,353)

Other expense

(6)

(7)

Total other expense, net

(1,063)

(1,132)

(2,116)

(2,281)

Net loss

$ (20,989)

$ (19,214)

$ (43,662)

$ (43,586)

Basic and diluted net loss per share(1)

^[1]

$ (0.25)

$ (0.30)

$ (0.51)

$ (0.69)

Shares used to compute basic and diluted net loss per share(1)

^[1]

85,553

63,428

85,536

63,307

[1]	(1) There is a lack of comparability in the per share amounts between the periods presented as a result of the issuance of shares of common stock pursuant to a public offering in November 2011. Please see Note 4 of the Notes to Condensed Financial Statements for further discussion.

Condensed Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Condensed Statements of Comprehensive Income [Abstract]
Net loss	$ (20,989)	$ (19,214)	$ (43,662)	$ (43,586)
Other comprehensive income (loss):
Net unrealized loss on securities available for sale	(1)	1	(2)
Other comprehensive income loss	(1)	1	(2)
Comprehensive loss	$ (20,990)	$ (19,213)	$ (43,664)	$ (43,586)

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the economic entity, including both controlling (parent) and noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, including any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References + Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
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+ Details

- Definition

Net of tax amount of unrealized holding gain (loss) before reclassification adjustments and transfers on available-for-sale securities.

+ References

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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Condensed Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Operating activities
Net loss	$ (43,662,000)	$ (43,586,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	826,000	822,000
Loss (gain) on disposal of assets	1,000	(1,000)
Inventory write-down	224,000
Stock-based compensation	4,752,000	4,570,000
Non-cash interest expense	14,000	35,000
Amortization of intangible assets	672,000	896,000
Amortization of discount on note payable	272,000	388,000
Amortization of premiums on available-for-sale securities, net of accretion of discounts	(13,000)	22,000
Changes in operating assets and liabilities:
Accounts receivable	(2,265,000)	(1,136,000)
Inventory	(3,164,000)	(6,241,000)
Prepaid expenses and other current assets	81,000	356,000
Accounts payable	4,442,000	2,108,000
Deferred revenue	386,000	677,000
Accrued liabilities and other liabilities	2,087,000	1,445,000
Net cash used in operating activities	(35,347,000)	(39,645,000)
Investing activities
Purchases of marketable securities		(36,826,000)
Maturities and sales of marketable securities	40,850,000	26,358,000
Restricted cash		(300,000)
Purchases of property and equipment	(1,222,000)	(1,422,000)
Proceeds from the sale of property and equipment	1,000	1,000
Net cash provided by (used in) investing activities	39,629,000	(12,189,000)
Financing activities
Proceeds from issuance of common stock, net	96,000	1,401,000
Net cash provided by financing activities	96,000	1,401,000
Net increase (decrease) in cash and cash equivalents	4,378,000	(50,433,000)
Cash and cash equivalents at beginning of period	82,609,000	112,175,000
Cash and cash equivalents at end of period	86,987,000	61,742,000
Supplemental disclosures
Property and equipment purchases in accounts payable and accrued expenses	224,000	887,000
Unrealized loss on investment securities	(2,000)
Cash paid for interest and fees	$ 1,465,000	$ 1,637,000

The Company

6 Months Ended

Jun. 30, 2012

The Company [Abstract]

The Company

1.	The Company

Cadence Pharmaceuticals, Inc. (the “Company”) was incorporated in the state of Delaware in May 2004. The Company is a biopharmaceutical company focused on acquiring, in-licensing, developing and commercializing proprietary products principally for use in the hospital setting. In March 2006, the Company in-licensed the exclusive U.S. and Canadian rights to OFIRMEV^® (acetaminophen) injection, an intravenous formulation of acetaminophen, from Bristol-Myers Squibb Company (“BMS”). In November 2010, the Food and Drug Administration (“FDA”) approved the Company’s New Drug Application (“NDA”) for OFIRMEV for the management of mild to moderate pain, moderate to severe pain with adjunctive opioid analgesics, and the reduction of fever in adults and children two years of age and older. In January 2011, the Company commenced commercial sales of the product in the U.S.

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

Basis of Presentation

The Company has prepared the accompanying unaudited condensed financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”). However, certain information and disclosures normally included in financial statements prepared in accordance with GAAP have been condensed, or omitted, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). In addition, the preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. In the opinion of the Company’s management, all adjustments consisting of normal, recurring adjustments considered necessary for a fair presentation of the results of the interim periods presented have been included.

These condensed financial statements should be read in conjunction with the audited financial statements of the Company for the fiscal year ended December 31, 2011, as included in the Company’s 2011 Annual Report on Form 10-K filed with the SEC on March 13, 2012.

Revenue Recognition

The Company recognizes revenue when there is persuasive evidence that an arrangement exists, title has passed, collection is reasonably assured and the price is fixed or determinable. It sells OFIRMEV mostly to wholesalers who, in-turn, sell the product to hospitals and other end-user customers. Sales to wholesalers provide for selling prices that are fixed on the date of sale, although the Company offers certain discounts to group purchasing organizations and governmental programs. The wholesalers take title to the product, bear the risk of loss of ownership, and have economic substance to the inventory. Further, the Company has no significant obligations for future performance to generate pull-through sales, however it does allow wholesalers to return product that is damaged or received in error. In addition, the Company allows for product to be returned beginning six months prior to, and ending twelve months following, product expiration. As OFIRMEV is the Company’s first and only commercially available product and there is a limited amount of product return data, the Company does not believe it has sufficient sales and returns history at this time to reasonably estimate product returns from its wholesaler distribution channel. Therefore, the Company is deferring the recognition of revenue until the wholesalers sell OFIRMEV to hospitals or other end-user customers. It will continue to defer revenue recognition until the point at which it has obtained sufficient sales history to reasonably estimate returns from the wholesalers. Shipments of product that are not recognized as revenue are treated as deferred revenue until evidence exists to confirm that pull-through sales to hospitals or other end-user customers have occurred.

The Company records certain sales reserves and allowances as a reduction to gross revenue and deferred revenue, as applicable. These reserves and allowances include distribution service fees, a prompt payment reserve, a group purchasing discount and chargeback reserve, and discounts to governmental programs, as applicable. Distribution service fees arise from contractual agreements the Company has with certain wholesalers for distribution services they provide with respect to OFIRMEV. These fees are generally a fixed percentage of the price of the product purchased by these wholesalers. The prompt payment reserve is based upon cash discounts the Company offers certain wholesalers as an incentive to meet certain payment terms. It accounts for these cash discounts at the time the sale is made to the wholesalers and reduces its accounts receivable accordingly. The group purchasing discount and chargeback reserve is based upon contracted discounts the Company provides to members of certain purchasing groups. The Company estimates the sales through its wholesalers to these group purchasing organizations and accrues for the chargebacks it anticipates from its wholesalers for the difference between the current retail price and the reduced price paid by the members of the group purchasing organizations. A group purchasing organization fee the Company incurs for these transactions is also recorded at the time of sale. The Company also provides governmental programs a predetermined discount that is recorded at the time of sale.

Accounts Receivable

The Company extends credit to its customers in the normal course of business based upon an evaluation of the customer’s credit history, financial condition and other factors. Trade accounts receivable are recorded on gross sales to wholesalers, net of allowances for prompt payment and other discounts, chargebacks and doubtful accounts. Wholesaler distribution fees are recorded as accounts payable and accrued liabilities. Estimates of allowances for doubtful accounts are determined by evaluating individual customer circumstances, historical payment patterns, length of time past due and economic and other factors. As of June 30, 2012 and December 31, 2011, the Company had no reserves for doubtful accounts on its balance sheets. Further, during the three and six months ended June 30, 2012 and 2011, no charges were incurred to reserve or write-off past due accounts.

Stock-Based Compensation

Stock option awards. Stock options are valued using the Black-Scholes option pricing model on the date of grant. This option pricing model involves a number of estimates, including the expected lives of stock options, the Company’s anticipated stock volatility and interest rates.

The following table summarizes the weighted average estimates the Company used in the Black-Scholes option-pricing model during the periods presented, to determine the fair value of employee and non-employee director stock options granted during each period:


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Risk free interest rates		1.0	%		1.7	%		1.3	%		2.2	%
Expected life in years		5.8 years			5.5 years			5.9 years			6.3 years
Expected dividend yield		0.0	%		0.0	%		0.0	%		0.0	%
Expected volatility		71.6	%		73.2	%		70.7	%		73.9	%

Compensation expense for stock-based payment awards is recognized using the straight-line method. Stock-based compensation expense recognized during the period is based on the value of the portion of awards that is ultimately expected to vest. Hence, the gross expense is reduced for estimated forfeitures and adjusted for the probability of achieving performance criteria, as applicable. If awards are forfeited prior to vesting, all previous expense recognized for unvested awards is recovered during the period in which the forfeiture occurs.

The table below summarizes the total stock-based compensation expense included in the Company’s statements of operations for the periods presented (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of product sales	$	78	$	76	$	187	$	132
Research and development		350		613		886		1,221
Selling, general and administrative		1,453		1,607		3,679		3,217

Total stock-based compensation expense included in loss from operations	$	1,881	$	2,296	$	4,752	$	4,570

Fair Value Reporting

The Company’s financial instruments consist of cash and cash equivalents, marketable securities, restricted cash, trade receivables and payables, an option purchase right, equity securities of an unconsolidated privately-held entity, accrued liabilities and long-term debt. Fair value estimates of these instruments are made at a specific point in time, based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. The carrying amount of cash and cash equivalents, restricted cash, trade receivables and payables and accrued liabilities are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. Further, based on the borrowing rates currently available to the Company for loans with similar terms, the Company believes the fair value of long-term debt approximates its carrying value. The Company’s option purchase right and equity securities of an unconsolidated privately-held entity have been initially valued based upon the transaction price under the cost method of accounting. These assets are subject to fair value adjustments in certain circumstances, such as when there is evidence of impairment. The fair value of marketable securities is based upon market prices quoted on the last day of the fiscal period.

Current accounting guidance defines fair value, establishes a framework for measuring fair value in accordance with GAAP, and requires certain disclosures about fair value measurements. The valuation techniques included in the guidance are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect market assumptions and are classified into the following fair value hierarchy:


Level 1 Inputs –		Quoted prices for identical instruments in active markets.

Level 2 Inputs –		Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable.

Level 3 Inputs –		Valuation derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The following tables present further detail of the financial instruments carried at fair value on the Company’s balance sheets as of June 30, 2012 and December 31, 2011. The tables do not include assets and liabilities that are measured at historical cost or on any basis other than fair value (in thousands):


Description	Balance at June 30, 2012		Fair Value Measurements as of June 30, 2012
Description	Balance at June 30, 2012		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	85,685	$	85,685	$	—	$	—
Investments in marketable securities – short-term:
Debt instruments – Municipal debt obligations		2,772		—		2,772		—
Certificates of deposit		1,000		—		1,000		—

Assets at fair value	$	89,457	$	85,685	$	3,772	$	—

Description	Balance at December 31, 2011		Fair Value Measurements as of December 31, 2011
Description	Balance at December 31, 2011		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	74,389	$	74,389	$	—	$	—
Debt instruments – Corporate debt obligations		6,346		—		6,346		—
Investments in marketable securities – short-term:
Debt instruments – Corporate debt obligations		37,394		—		37,394		—
Debt instruments – Municipal debt obligations		6,224		—		6,224		—
Certificates of deposit		1,000		—		1,000		—

Assets at fair value	$	125,353	$	74,389	$	50,964	$	—

The Company’s level 2 financial instruments are valued using market prices on less active markets and model-derived valuations with observable valuation inputs such as interest rates and yield curves. The Company obtains the fair value of Level 2 financial instruments from a third-party pricing service, which the Company validates through independent valuation testing and review of portfolio valuations provided by the Company’s investment managers.

Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2012

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

3.	Recent Accounting Pronouncements

There were no new accounting pronouncements issued during the three months ended June 30, 2012 that are expected to have a material impact on the Company’s financial position, operating results or disclosures.

Net Loss Per Share

6 Months Ended

Jun. 30, 2012

Net Loss Per Share [Abstract]

Net Loss Per Share

4.	Net Loss Per Share

Net loss per share is presented as basic and diluted net loss per share. Basic net loss per share is calculated by dividing the net loss by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted net loss per share is computed by dividing the net loss by the weighted average number of common share equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, stock options, restricted stock units and warrants are considered to be common stock equivalents and are not included in the calculations of diluted net loss per share as their effect is anti-dilutive. Additionally, the unvested restricted stock units outstanding during 2011 and 2012 have been excluded from the basic net loss calculation as these units do not include dividend rights and therefore are not considered to be participating securities.

The actual net loss per share amounts for the three and six months ended June 30, 2012 and 2011 were computed based on the weighted average shares of common stock outstanding during the respective periods. The net loss per share for the three and six months ended June 30, 2012 includes the effect of the 21,800,000 common shares issued pursuant to a public offering in November 2011. There is a lack of comparability in the basic and diluted net loss per share amounts for the periods presented as a result of the issuance of these common shares.

The following is a reconciliation of the basic and diluted shares for the periods presented (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Shares for basic and dilutive net loss per share:
Weighted average common shares outstanding		85,553		63,428		85,536		63,307

Denominator for basic and diluted earnings per share		85,553		63,428		85,536		63,307

At June 30, 2012 and 2011, stock options, restricted stock units, and warrants totaling 16,962,000 and 14,693,000 shares, respectively, were excluded from the calculations as their effect would have been antidilutive.

Inventory

6 Months Ended

Jun. 30, 2012

Inventory [Abstract]

Inventory

5.	Inventory

Inventories, stated at the lower of cost or market, consisted of the following (in thousands):


	June 30, 2012		December 31, 2011
Inventory:
Raw material	$	95	$	96
Finished goods		4,233		1,292

Total	$	4,328	$	1,388

In February 2012, the Company announced a voluntary recall of a single lot of OFIRMEV that was manufactured at Baxter Healthcare Corporation’s (“Baxter”) facility due to the presence of an unidentified visible particle in that lot during routine stability testing. The Company also placed certain finished product inventory of OFIRMEV manufactured by Baxter on indefinite hold pending the outcome of its investigation into unidentified particulate matter observed during routine product stability testing. As a result, the Company recorded charges of $5,574,000 for the fourth quarter of 2011 and $224,000 for the first quarter of 2012 to fully write-down the value of the inventory placed on hold due to uncertainty as to the amount of time that would be required to complete the investigation and whether the product would have sufficient remaining shelf life or otherwise be saleable after the investigation is completed. Further, in July 2012, the Company announced a second voluntary recall of product manufactured at Baxter’s facility due to the presence of unidentified visible particles in a limited number of vials from one lot of the product, which were detected during routine stability testing. As a result, the Company decided to destroy the product that was previously placed on hold. See “Supply Agreements” in Note 11 below for further information.

Property and Equipment

6 Months Ended

Jun. 30, 2012

Property and Equipment [Abstract]

Property and Equipment

6.	Property and Equipment

Property and equipment for operations were as follows (in thousands):


	June 30, 2012			December 31, 2011
Property and equipment:
Manufacturing equipment	$	6,925		$	6,925
Leasehold improvements		1,637			1,610
Computer equipment and software		1,510			1,629
Furniture and fixtures		458			458
Construction-in-process		4,483			3,965

		15,013			14,587
Less accumulated depreciation		(4,717	)		(4,018	)

Total	$	10,296		$	10,569

For the three months ended June 30, 2012 and 2011, the Company incurred depreciation expense of $414,000 and $424,000, respectively. For the six months ended June 30, 2012 and 2011, the Company incurred depreciation expense of $826,000 and $822,000, respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Investments in Marketable Securities

6 Months Ended

Jun. 30, 2012

Investments in Marketable Securities [Abstract]

Investments in Marketable Securities

7.	Investments in Marketable Securities

The cost, gross unrealized holding gains, gross unrealized holding losses and fair value of available-for-sale investments by types and classes of security at June 30, 2012 and December 31, 2011 consisted of the following (in thousands):


At June 30, 2012	Amortized Cost Basis		Other-than- temporary Impairments		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
Available-for-sale:
Debt instruments – Municipal debt obligations	$	2,772	$	—	$	—	$	—	$	2,772
Certificates of deposit		1,000		—		—		—		1,000

	$	3,772	$	—	$	—	$	—	$	3,772


At December 31, 2011	Amortized Cost Basis		Other-than- temporary Impairments		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
Available-for-sale:
Debt instruments – Corporate debt obligations	$	37,392	$	—	$	3	$	(1	)	$	37,394
Debt instruments – Municipal debt obligations		6,224		—		—		—			6,224
Certificates of deposit		1,000		—		—		—			1,000

	$	44,616	$	—	$	3	$	(1	)	$	44,618

Investments by contractual maturity are as follows (in thousands):


	June 30, 2012				December 31, 2011
	Cost		Fair Value		Cost		Fair Value
Due or callable in one year or less	$	3,772	$	3,772	$	44,616	$	44,618
Due after one year	$	—	$	—	$	—	$	—

No gains or losses were realized on the sale of marketable securities using the specific identification method during the three and six months ended June 30, 2012 and 2011, respectively. Further, as of June 30, 2012 the Company held no investments in an unrealized loss position. As of December 31, 2011, the Company held two investments in an unrealized loss position, each of which had been in such a position for less than twelve months. During the six month ended June 30, 2012, these positions matured and no gains or losses were recognized.

Investment in Incline

6 Months Ended

Jun. 30, 2012

Investment in Incline [Abstract]

Investment in Incline

8.	Investment in Incline

On June 21, 2010, the Company entered into an option agreement (the “Option Agreement”) with Incline Therapeutics, Inc. (“Incline”), a privately held specialty pharmaceutical company, pursuant to which the Company obtained an exclusive, irrevocable option to acquire Incline during two option periods, and has additional rights after the expiration of the second period. Incline is developing IONSYS™ (fentanyl iontophoretic transdermal system), an investigational product candidate intended to provide patient-controlled analgesia for adult inpatients requiring opioids following surgery. As consideration for the option, the Company paid Incline a $3,500,000 upfront option fee in June 2010 and made a second payment of $3,500,000 in September 2011 upon Incline’s receipt of the second tranche of its Series A financing. The Company is currently in the second of two option periods, which extends until the earliest to occur of (1) 30 days after the date on which Incline submits a supplemental NDA for IONSYS to the FDA, (2) 30 days after the filing of an initial public offering by Incline, or (3) 42 months after the effective date of the option (December 21, 2013). During this second option period, the Company may acquire Incline for an amount not to exceed $228,000,000, plus payment of an additional amount not to exceed $57,000,000 upon FDA approval of IONSYS. The Company has an exclusive right of first negotiation to acquire Incline for the six-month period following the expiration of the second option period. In addition, the Company may elect to extend the second option period for two additional three-month periods upon the payment of $2,500,000 to Incline for each period. Incline will remain primarily responsible for the development of IONSYS. However, the Company and Incline have formed a joint development committee to oversee the global development and regulatory approval for the IONSYS product candidate.

The Company has determined that Incline is a variable interest entity (“VIE”). However, because it will not absorb a disproportionate amount of Incline’s expected losses or receive a disproportionate amount of Incline’s expected residual returns, the Company is not the primary beneficiary of this entity at this time. Further, Cadence will have no oversight of the day-to-day operations of Incline, nor does it have sufficient rights or voting representation to influence the operating or financial decisions of Incline. Additionally, the Company was not a founder of Incline and has no additional equity or funding requirements in future financings or otherwise. Therefore, the Company is not required to consolidate Incline into its financial statements. This consolidation status could change in the future if the option agreement is exercised, or if other changes occur in the relationship between the Company and Incline. Frazier Healthcare VI, L.P. owns approximately 22.4% of Incline’s Series A Preferred Stock. Alan D. Frazier, one of the Company’s directors, has an ownership interest in Frazier Healthcare VI, L.P., and is a member of the general partner of the entity that serves as general partner of Frazier Healthcare VI, L.P.

In consideration of the Company’s expenditure of funds in connection with conducting due diligence on IONSYS, the Company received $500,000 of Incline Series A preferred stock, or 500,000 shares, on terms generally consistent with Incline’s other Series A preferred stock investors. The Company has valued the investment in the option, and the shares received from the due diligence, using the cost method and classified these investments as Level 3 in the fair value hierarchy. At the time of the first option payment in June 2010, the Company assigned $500,000 to the preferred stock and $3,000,000 to the option. The value of the second option payment in September 2011 was fully applied to the option, resulting in an aggregate option value of $6,500,000. Under the cost method, the fair value of the investment is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. The Company has reviewed the value allocated from the June 2010 and September 2011 payments and is not aware of any such adverse events which would be expected to negatively influence these values at June 30, 2012. As a result, no fair value estimate has been prepared with respect to this investment as the costs associated with an independent evaluation would be excessive and the available information on which to base such an assessment is both limited and highly subjective. Therefore, there have been no reductions to the aggregate $7,000,000 carrying value of the investments, which represents the Company’s maximum loss exposure to Incline at June 30, 2012. Both assets are recorded as other long-term assets on the Company’s balance sheets at June 30, 2012 and December 31, 2011, respectively.

Restructuring and Impairment Charges

6 Months Ended

Jun. 30, 2012

Restructuring and Impairment Charges [Abstract]

Restructuring and Impairment Charges

9.	Restructuring and Impairment Charges

In November 2011, the Company commenced a restructuring of its workforce to focus its resources on the commercialization of OFIRMEV and reduce program costs not directly associated with such efforts. As a result of the 2011 restructuring, the Company recorded one-time employee termination charges of $1,142,000 in connection with the termination of 17 employees.

The following table details the restructuring charges for severance-related costs and termination of contractual obligations for periods presented (in thousands):


	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Beginning restructuring liability	$	46		$	—	$	931		$	—
Severance and termination charges incurred		—			—		—			—
Severance and termination disbursements		(33	)		—		(918	)		—

Ending restructuring liability	$	13		$	—	$	13		$	—

The balance of the restructuring liability at June 30, 2012 is anticipated to be fully distributed in 2012.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

+ References + Details

Loan and Security Agreement

6 Months Ended

Jun. 30, 2012

Loan and Security Agreement [Abstract]

Loan and Security Agreement

10.

Loan and Security Agreement

In December 2011, the Company entered into a Second Amended and Restated Loan and Security Agreement (the “Second Amended Agreement”) with Oxford Finance LLC (“Oxford”), Silicon Valley Bank (“SVB”) and General Electric Capital Corporation (“GECC”) (collectively, the “Lenders”). The Second Amended Agreement amends and restates the Company’s previous Amended and Restated Loan and Security Agreement (the “Restated Agreement”) entered in June 2010 with the Lenders, and provided the Company with $3,434,000 of additional net capital after deducting a $954,000 term loan final payment paid under the Restated Agreement and customary closing fees and expenses of $63,000 paid in connection with the closing of the Second Amended Agreement. The interest rate under the Second Amended Agreement is 10.99% and the Company will be required to make a final payment of 6% of the total advance at the termination of the loan.

Pursuant to the terms of the Second Amended Agreement, the Company will make interest only payments through December 2012, and in January 2013, will begin to make equal monthly payments of principal and interest to fully amortize the balance over the remaining 30-month term. The Company issued warrants to purchase 158,311 shares of the Company’s common stock to the Lenders in connection with the Second Amended Agreement at an exercise price $3.79 per share. The warrants were immediately exercisable, and excluding certain mergers or acquisitions, will expire on the seven-year anniversary of the date of issuance. The Company determined the relative fair value of these warrants, as detailed below, and has classified the warrants as equity, recognizing the cost as a discount on the loan issuance. The credit facility contains customary default and acceleration provisions and is secured by the Company’s assets, excluding intellectual property. The Company was required to make a negative pledge of its intellectual property, which generally prohibits the Company from granting liens on its intellectual property. Under the terms of the Second Amended Agreement, the Company may be precluded from entering into certain financing and other transactions, including disposing of certain assets and paying dividends, and is subject to certain non-financial covenants and prepayment penalties. Upon the occurrence of an event of default, including a Material Adverse Change (as defined in the Second Amended Agreement), the Lenders may declare all outstanding amounts due and payable under the Second Amended Agreement. As of June 30, 2012, the Company believed it was in compliance will all covenants under the Second Amended Agreement.

The Company determined that the terms of Second Amended Agreement were not substantially different than the Restated Agreement and hence has accounted for the transaction as a loan modification. As such, the fair value of the warrants issued in connection with the Second Amended Agreement and the carrying value of the issuance costs and discount related to the Restated Agreement were aggregated and are being amortized to interest expense throughout the life of the Second Amended Agreement using an effective interest rate of 15.31%.

In connection with the establishment of the $30,000,000 credit facility in June 2010 under the Restated Agreement, the outstanding balance of the Company’s previous $15,000,000 credit facility established in 2007 was paid in full, including accrued interest, and a $375,000 term loan final payment. The transaction was accounted for as a loan extinguishment and upon the repayment of the $15,000,000 facility, the Company recorded a charge of approximately $145,000 in the second quarter of 2010 to (1) fully amortize the balance of the loan discount and related issuance costs and (2) fully accrue the term loan final payment. The warrants issued and the upfront fees paid in connection with the Restated Agreement were recognized as a discount on the loan issuance and the legal and related expenses were recognized as debt issuance costs on the Company’s balance sheets. The carrying value of these costs at the time of the loan modification in December 2011 were aggregated with the relative fair value of the warrants issued in connection with the Second Amended Agreement and are being amortized throughout the life of the Second Amended Agreement as noted above.

Warrants

In connection with the establishment of the Company’s $15,000,000 credit facility with the Lenders in 2007, the Company issued six fully exercisable warrants to the Lenders to purchase an aggregate of 50,331 shares of the Company’s common stock at an exercise price of $12.67 per share, expiring November 30, 2014. The Company determined the fair value of these warrants to be $474,000 under the Black-Scholes valuation model using the following assumptions: risk-free interest rate of 3.64%; dividend yield of 0.0%; expected volatility of 70.0%; and a contractual term of seven years. As of June 30, 2012, all of these warrants were outstanding.

In connection with the Restated Agreement, the Company issued three fully exercisable warrants to the Lenders in June 2010 to purchase an aggregate of 254,793 shares of the Company’s common stock at an exercise price of $7.0645 per share, expiring June 18, 2017. The Company classified the warrants as equity and determined their relative fair value to be $1,237,000, using the Black-Scholes valuation model. The value of the warrants was recorded as a discount to the loan and is currently being amortized to interest expense over the term of the Second Amended Agreement pursuant to the loan modification. The warrants were valued using the following assumptions: risk-free interest rate of 2.7%; dividend yield of 0.0%; expected volatility of 76.5%; and a contractual term of seven years. As of June 30, 2012, all warrants related to the Restated Agreement were outstanding.

In connection with the Second Amended Agreement, the Company issued four exercisable warrants to the Lenders in December 2011 to purchase an aggregate of 158,311 shares of the Company’s common stock at an exercise price of $3.79 per share, expiring December 22, 2018. The Company classified the warrants as equity and determined their relative fair value to be $390,000, using the Black-Scholes valuation model. The value of the warrants was recorded as a discount to the note payable, and will be amortized to interest expense over the expected term of the Second Amended Agreement. The warrants were valued using the following assumptions: risk-free interest rate of 1.4%; dividend yield of 0.0%; expected volatility of 72.4%; and a contractual term of seven years. As of June 30, 2012, all warrants related to the Second Amended Agreement were outstanding.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

11.

Commitments and Contingencies

Leases

In May 2006, the Company entered into a six-year operating lease for office space. In December 2011, the Company amended the lease to reduce the monthly rent charge, extend the lease term and terminate a portion of the leased space. Pursuant to the terms of the amended agreement, the basic monthly per square foot fee was reduced commencing in April 2012 and the Company will return a portion of the leased space in September 2012. The lease will expire in December 2013 with no option to extend the term.

As security for the initial lease, a letter of credit in the initial amount of $1,581,000 was required by the landlord. The letter of credit is collateralized by a certificate of deposit in the same amount that is classified as restricted cash in the Company’s balance sheet. The required amount subject to the letter of credit and corresponding certificate of deposit was eligible to be reduced by 22% on each of the first four anniversaries of the commencement of the lease and as of December 31, 2011, the letter of credit had been reduced by $1,391,000 in accordance with the agreement and the related restricted cash had been adjusted by a like amount. The value of the letter of credit and corresponding certificate of deposit, classified as restricted cash on the Company’s balance sheet at June 30, 2012 and December 31, 2011, was $190,000.

Rent expense for operating leases is recorded on a straight-line basis over the life of the lease term. If a lease has a fixed and determinable escalation clause, the difference between the rent expense and rent paid is recorded as deferred rent. Rent expense for the three months ended June 30, 2012 and 2011 was $236,000 and $215,000, respectively. Rent expense under the Company’s lease agreement for the six months ended June 30, 2012 and 2011 was $473,000 and $428,000, respectively.

Corporate Credit Card

In 2009, the Company entered into a pledge agreement pursuant to the establishment of a corporate credit card program whereby the Company pledged $150,000 in a certificate of deposit as collateral. During 2011, the Company increased its pledged amount by $300,000 related to an increase in its credit limit. These funds are therefore classified as restricted cash on the Company’s balance sheet at June 30, 2012 and December 31, 2011, respectively.

Supply Agreements

Baxter Healthcare Corporation

In July 2007, the Company entered into a development and supply agreement (the “Supply Agreement”) with Baxter Healthcare Corporation (“Baxter”) for the completion of pre-commercialization manufacturing development activities and the manufacture of commercial supplies of the finished drug product for OFIRMEV with an initial term of five years. Pursuant to the terms of the Supply Agreement, Baxter received development fees from the Company upon the completion of specified development activities, which the Company expensed as these activities had no alternative future uses at the time they were incurred. The Supply Agreement also required the Company to fund specified improvements at Baxter’s manufacturing facility and purchase certain equipment for use by Baxter in manufacturing OFIRMEV. All development fees and facility improvements under this agreement had been completed and paid as of December 31, 2010.

In January 2011, the Company amended and restated the Supply Agreement (the “Amended Supply Agreement”) in connection with a plan to expand the manufacturing capacity for OFIRMEV at Baxter. Under this agreement, the Company will pay Baxter a per unit purchase price based on the amount of finished OFIRMEV drug product produced, which price will be increased annually, and may be adjusted to reflect an increase or decrease, as the case may be, in the cost of material required to manufacture OFIRMEV, subject to specified limitations. The Company is obligated to purchase a minimum number of units of OFIRMEV each year or pay Baxter an amount equal to the purchase price multiplied by the shortfall in units. In addition, Baxter will be the Company’s primary supplier of OFIRMEV up to a specified number of units in each year, subject to Baxter’s ability to timely supply the specified volumes required by the Company. However, if Baxter fails or declines to supply a sufficient quantity of OFIRMEV in accordance with the Company’s purchase orders during a specified period of time, then the Company may purchase that quantity of OFIRMEV from third party suppliers and such quantity will be deducted from the quantity of OFIRMEV that the Company otherwise would have been required to purchase from Baxter. The Company is also obligated to reimburse Baxter for all reasonable costs directly related to work performed by Baxter in support of any change in the active pharmaceutical ingredient (“API”) source or API manufacturing process.

In February 2012, the Company announced a voluntary recall of a single lot of OFIRMEV that was manufactured at Baxter’s facility due to the presence of an unidentified, visible particle in that lot during routine stability testing. The Company also placed certain finished product inventory of OFIRMEV manufactured by Baxter on indefinite hold pending the outcome of the Company’s investigation into unidentified particulate matter observed during routine product stability testing and decided to temporarily suspend further production by Baxter until the investigation has been completed and any necessary corrective and preventative actions have been implemented.

Further, in July 2012, the Company announced a second voluntary recall of the remaining 41 unexpired lots of OFIRMEV manufactured at Baxter’s facility due to the presence of unidentified, visible particles in a limited number of vials from one lot of the product, which were detected during routine stability testing. Although the Company received no adverse event reports associated with the particulate matter, and no product complaints involving similar particulate matter have been received, the Company decided to recall all remaining lots of OFIRMEV manufactured by Baxter as a precautionary measure. The 41 recalled lots, which were manufactured between January and March 2011, expire between July and September 2012, and the Company believes that, at the time of the recall, fewer than 10,000 vials of this product remained on the market.

The investigation into the particulate matter has not been completed and, as of June 30, 2012, the Company had recorded charges of $5,574,000 for the fourth quarter of 2011 and $224,000 for the first quarter of 2012 to fully write-down the value of the inventory placed on hold due to uncertainty as to the amount of time that would be required to complete the investigation and whether the product would have sufficient remaining shelf life or otherwise be saleable after the investigation is completed. As a result of the second recall, the Company decided to destroy the product that was previously placed on hold. The suspension of manufacturing of the product by Baxter remains in effect pending an investigation to determine the root cause of the particulate matter.

In addition, until the investigation into the particulate matter has been completed, the Company has suspended its negotiations with Baxter regarding the plan to expand Baxter’s manufacturing capacity for OFIRMEV. As a result, the Company cannot reasonably estimate the cost of any such expansion at this time. However, under the Amended Supply Agreement, the Company would be required to fund all capital equipment and facility improvements included in the plan.

For the year ended December 31, 2011, the Company had reimbursed Baxter approximately $262,000 for facility improvements pursuant to the Amended Supply Agreement, including $160,000 during the three and six months ended June 30, 2011. No reimbursements under the agreement were made during the three and six months ended June 30, 2012.

The initial term of the Amended Supply Agreement will terminate on November 1, 2015, and will automatically renew for successive one-year periods thereafter, unless either party provides at least two years prior written notice of termination to the other party. In addition, either party may terminate the Agreement (1) within 90 days, after written notice in the event of a material uncured breach of the Agreement by the other party or (2) immediately, upon the filing of a petition of bankruptcy by the other party. The Company may also terminate the Agreement, effective 30 days after providing written notice, in the event that Baxter does not agree to the assignment of the Agreement by the Company to a competitor of Baxter. Baxter has agreed that, for the initial term and any renewals or extensions of the Agreement, neither it nor any of its affiliates will develop or commercially produce, for itself or for any third party, any intravenous formulation of a product containing acetaminophen for distribution or sale in the United States.

If the Amended Supply Agreement with Baxter is terminated, except as a result of a material uncured breach or bankruptcy by Baxter, the Company will reimburse Baxter for all materials ordered prior to the termination of the Amended Supply Agreement that are not cancelable at no cost to Baxter. Upon termination of the agreement and subject to certain exceptions, the Company will purchase from Baxter all undelivered products manufactured or packaged under a purchase order from the Company, at the price in effect at the time the purchase order was placed. The Company is also obligated to reimburse Baxter for reasonable costs incurred in returning all Company-owned equipment and for restoring Baxter’s manufacturing facility to its condition prior to the installation of OFIRMEV-related improvements, other than restoration costs for changes that Baxter reasonably agrees are usable by Baxter at the time of removal of the Company-owned equipment. The Company is not able to reasonably estimate the cost and the timing of these expenses at this time and therefore cannot reasonably estimate the fair value of the retirement obligation.

Lawrence Laboratories (BMS)

In December 2010, the Company entered into a supplemental Supply Agreement (the “Supplemental Agreement”) with Lawrence Laboratories (“Lawrence”), an indirectly wholly-owned subsidiary of BMS, for the manufacture of commercial supplies of the finished drug product for OFIRMEV. Bristol-Myers Squibb Srl (“BMS Anagni”), an indirect subsidiary of BMS, manufactures the product on behalf of Lawrence. BMS Anagni has manufactured the product for more than ten years for sale and distribution by BMS and its affiliates in a number of countries outside of the U.S. and Canada. BMS Anagni is presently acting as the Company’s sole supplier of OFIRMEV until the investigation into the particulate matter observed in product manufactured at Baxter’s facility has been completed and any necessary corrective and preventative actions have been implemented.

Pursuant to the terms of the Supplemental Agreement, Lawrence will receive from the Company a set price for the OFIRMEV purchased, which prices may be adjusted by Lawrence, subject to specified limitations. In addition, the Company is obligated to purchase a minimum number of units each year following regulatory approval of OFIRMEV manufactured on behalf of Lawrence, or pay Lawrence an amount equal to the per-unit purchase price less Lawrence’s average material and direct labor costs for OFIRMEV, multiplied by the amount of the shortfall.

The Supplemental Agreement has an initial term that ends in March 2014, unless the Supplemental Agreement is terminated sooner: (1) by mutual agreement of the parties, (2) by either party for convenience following eighteen months’ prior written notice of termination to the other party, (3) upon the termination of the Company’s license agreement for the product with BMS, or (4) upon the dissolution or termination of the Company, other than in connection with or following the assignment of the Supplemental Agreement. In addition, either party may terminate the Supplemental Agreement: (a) within 60 days after written notice in the event of a material uncured breach of the Supplemental Agreement by the other party, or (b) immediately, if the other party becomes insolvent or admits in writing its inability to pay its debts as they become due, files a petition for bankruptcy, makes an assignment for the benefit of its creditors or has a receiver or other court officer appointed for its properties or assets.

If the Supplemental Agreement is terminated by the Company for its convenience or by Lawrence due to the Company’s material breach of the agreement, the Company will reimburse Lawrence for: (1) any product ordered under a firm order and received by the Company, and (2) any inventory of materials used to manufacture OFIRMEV that are specific to OFIRMEV and that Lawrence is unable to reasonably utilize. Additionally, the Company’s minimum purchase requirement for the year in which the termination takes effect will be reduced proportionally, and the Company will not be required to fulfill the minimum purchase requirement for any subsequent contract year. If the Supplemental Agreement is terminated for any reason other than by the Company for its convenience or by Lawrence due to the Company’s material breach of the agreement, the Company will not be required to reimburse Lawrence for any inventory of materials used to manufacture OFIRMEV, and will have no obligation to purchase the minimum purchase requirement for the year in which the termination takes effect, or for any subsequent contract year.

License Agreements and Acquired Development and Commercialization Rights

In March 2006, the Company in-licensed the technology and the exclusive development and commercialization rights to OFIRMEV in the U.S. and Canada from BMS. BMS sublicensed these rights to the Company under a license agreement with Pharmatop. As consideration for the license, the Company paid a $25,000,000 up-front fee and, as a result of the approval of the Company’s NDA for OFIRMEV in the November 2010, the Company paid an additional milestone payment of $15,000,000 in November 2010. The Company may be required to make future milestone payments totaling up to $25,000,000 upon the achievement of certain levels of net sales. In addition, the Company is obligated to pay a royalty on net sales of the licensed products and has the right to grant sublicenses to third parties. The amount of such royalty ranges from the mid-teens to the mid-twenties, depending on the aggregate amount of net sales, and is subject to annual minimum royalty obligations. The $25,000,000 up-front fee was recognized as research and development expense at the time the payment was made. The $15,000,000 milestone payment was recorded as an intangible asset on the Company’s balance sheets and is being amortized on a straight-line basis over the estimated useful life of the licensed patents. Royalty liabilities are recognized at the time the product is sold or, for minimum royalty obligations that are not anticipated to be met, over the period in which the minimum liability is incurred.

In November 2010, the Company entered into a data license agreement among Terumo Corporation (“Terumo”), the Company and SCR Pharmatop S.A. (“Pharmatop”). Under the data license agreement, the Company provided to Terumo certain data and information resulting from the Company’s clinical development program for OFIRMEV for Terumo’s use in obtaining regulatory approval for and commercializing the same intravenous formulation of acetaminophen in Japan. Further, the Company will provide to Terumo, without charge, up to 500 hours of technical assistance and consulting services regarding the licensed technical information, data and know-how, as reasonably necessary to assist Terumo in obtaining regulatory approval and manufacturing capacity for the product candidate. In April 2011, the Company received an upfront payment of $5,329,000 under the terms of the data license agreement. If Terumo is successful in obtaining regulatory approval for and commercializing the product in Japan, the Company may also be entitled to an additional lump-sum payment upon the first commercial sale of the product candidate and royalty payments on any commercial sales of the product in Japan.

In accordance with multiple-element arrangement guidance, the Company determined both the data license and consulting service deliverables were separate units of accounting, each having value on a standalone basis. The Company estimated the fair value of the data license based upon similar proposals from third parties and internal costs incurred in developing the data and obtaining similar rights. The value of the consulting services was based on contracts the Company had engaged with third parties for similar services. The Company allocated the value of the payment received on a relative fair value basis and will recognize the consideration allocated to the data license upon delivery and the consideration allocated to the consulting services as such services are rendered. There is no right of return or similar refund provisions in the data license agreement. During 2011, the Company transferred the data and related information to Terumo and provided a portion of the consulting hours and in April 2011, the Company recognized $5,210,000 of licensing revenue pursuant to the agreement for the data transfer and consulting hours provided. During the three and six months ended June 30, 2012, the Company recognized an additional $33,000 of licensing revenue for consulting hours rendered by the Company during the periods. The remaining balance of payment of $86,000 reflects the value of the outstanding consulting hours the Company is obligated to provide under the terms of the contract through November 2012. The Company has recorded the balance of the payment as deferred revenue on the Company’s balance sheet at June 30, 2012 and December 31, 2011, and will recognize the balance as revenue as the consulting services are rendered or the contract term expires. Any milestones or royalties received from potential sales of the product candidate will be recognized as revenue in the period earned.

Legal Matters

In August 2011, the Company and Pharmatop filed suit in the United States District Court for the District of Delaware against Paddock Laboratories, Inc., Perrigo Company and Paddock Laboratories, LLC (collectively, “Paddock”) and against Exela Pharma Sciences, LLC, Exela PharmaSci, Inc. and Exela Holdings, Inc. (collectively, “Exela”). The lawsuit follows the notices that the Company received in July 2011 from each of Paddock and Exela concerning their filings of Abbreviated New Drug Applications, or ANDAs, containing a “Paragraph IV” patent certification with the FDA for a generic version of OFIRMEV. In the lawsuit the Company alleges that Paddock and Exela have each infringed U.S. Patent Nos. 6,028,222 (the “‘222 patent”), and 6,992,218 (the “‘218 patent”), by filing their respective ANDAs seeking approval from the FDA to market a generic version of OFIRMEV prior to the expiration of these patents. The ‘222 and the ‘218 patents are listed in the FDA’s Approved Drug Products with Therapeutic Equivalence Evaluations (the “Orange Book”). The patent infringement lawsuit was filed within 45 days of receipt of the pertinent notice letters, thereby triggering a stay of FDA approval of the Paddock ANDA and the Exela ANDA until the earlier of the expiration of a 30-month period, the expiration of the ‘222 and ‘218 patents, the entry of a settlement order or consent decree stating that the ‘222 and ‘218 patents are invalid or not infringed, a decision in the case concerning infringement or validity that is favorable to Paddock or Exela, or such shorter or longer period as the Court may order. Each of Paddock and Exela has filed an answer in the case that asserts, among other things, non-infringement and invalidity of the asserted patents, and has also filed counterclaims. A date for the bench trial in this case has been tentatively scheduled for May 2013. In addition, in May 2012, Exela informed the Court that it filed suit in the United States District Court for the Eastern District of Virginia against the United States Patent and Trademark Office, or USPTO, for declaratory judgment seeking a reversal of the decision by the USPTO refusing to act on a petition by Exela to vacate the USPTO’s April 2003 order reviving the international application for the ‘218 patent. The lawsuit followed the USPTO’s rejection of Exela’s petition to the USPTO filed in November 2011, which sought to vacate the April 23, 2003 order granting Pharmatop’s petition to revive the ‘218 patent. The USPTO determined that Exela lacks standing to seek such relief. Exela also seeks declaratory judgment that the USPTO’s rules and regulations that allow for revival of abandoned, international patent applications under the “intentional” standard are invalid, and similar relief in connection with one or more counterclaims it has filed in the Delaware litigation. The USPTO has moved to dismiss Exela’s lawsuit, however, decision by the Court in favor of Exela could result in the invalidation of the ‘218 patent.

Regardless of the outcome of any litigation, no ANDA can receive final approval from the FDA before expiration of the regulatory exclusivity period for OFIRMEV. Specifically, the FDA has granted OFIRMEV three years of regulatory exclusivity, which expires November 2, 2013. The Company intends to vigorously enforce its intellectual property rights relating to OFIRMEV to prevent the marketing of infringing generic products prior to the expiration of its patents. The ‘222 patent expires August 5, 2017 (or February 5, 2018 if pediatric exclusivity is granted) and the ‘218 patent expires June 6, 2021 (or December 6, 2021 if pediatric exclusivity is granted). However, given the unpredictability inherent in litigation, the Company cannot predict the outcome of this matter or any other litigation.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 20
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-Name FASB Interpretation (FIN)
-Number 14
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Stockholder's Equity

6 Months Ended

Jun. 30, 2012

Stockholder's Equity [Abstract]

Stockholder's Equity

12.

Stockholder’s Equity

Authorized Shares

In June 2012, following approval by the Company’s stockholders, the Company filed a Certificate of Amendment of Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware, which increased the number of authorized shares of common stock of the Company from 100,000,000 to 200,000,000.

Public Offering

In May 2011, the Company established a universal shelf registration statement to permit it, from time to time, to offer and sell up to $150,000,000 of equity or debt securities. In November 2011, the Company issued an aggregate of 21,800,000 shares of its common stock at a purchase price of $3.75 per share pursuant to a public offering. The offering raised proceeds, net of offering costs and underwriting discounts and commissions, of $77,302,000.

Private Placement

In February 2009, the Company issued 12,039,794 shares of its common stock at a purchase price of $7.13 per share pursuant to a private placement. In addition to the shares of the Company’s common stock, warrants to purchase up to 6,019,897 additional shares of the Company’s common stock were also issued as part of the transaction at a price of $0.125 per warrant. Each warrant is immediately exercisable and has a five-year term. The warrants may be exercised through either cash or net exercise for one share of common stock at a price of $7.84 and have been accounted for as permanent equity. As of June 30, 2012, all warrants related to the private placement were outstanding.

The private placement raised proceeds, net of offering costs, of $86,243,000. The purchasers in the offering consisted of new investors and existing stockholders of the Company, including six funds affiliated with three directors of the Company. In March 2009, the Company filed a registration statement covering the resale of the shares of common stock acquired by the investors in this offering, which was declared effective by the SEC in May 2009. The Company is required to maintain the effectiveness of the registration statement and may be subject to liquidated damages of one percent per month of the aggregate purchase price of the common shares then held by the investor that are registrable securities, subject to an aggregate cap of eight percent per calendar year. The Company has not recorded a liability for the potential damages associated with these liquidated damages provisions as it does not currently believe that the transfer of consideration is probable under the agreement.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
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-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
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-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Principles Board Opinion (APB)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Name Statement of Financial Accounting Standard (FAS)
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-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

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-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
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Reference 23: http://www.xbrl.org/2003/role/presentationRef
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-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Segment Information

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Segment Information

13.

Segment Information

Operating segments are identified as components of an enterprise about which separate discrete financial information is available for evaluation by the chief operating decision-maker, or decision-making group, in making decisions regarding resource allocation and assessing performance and the Company operates and manages its business as principally one segment. It sells its only product, OFIRMEV, primarily to established wholesale distributors in the pharmaceutical industry, including the nation’s three leading wholesale pharmaceutical distributors: Cardinal Health, Inc., AmerisourceBergen Corporation and McKesson Corporation.

Shipments to wholesalers representing approximately 10% or more of total product revenue for the periods presented were as follows (as a percentage of total gross product revenue):


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Cardinal Health, Inc.		34	%		40	%		34	%		36	%
AmerisourceBergen Corporation		32	%		39	%		32	%		33	%
McKesson Corporation		26	%		11	%		26	%		22	%

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes

6 Months Ended

Jun. 30, 2012

Income Taxes [Abstract]

Income Taxes

14.

Income Taxes

The Company is subject to taxation in the U.S. and various state jurisdictions. The Company’s tax years for 2004 and forward are subject to examination by the Federal and state tax authorities due to the carryforward of unutilized net operating losses and research and development credits. The Company’s practice is to recognize interest and/or penalties related to income tax matters in income tax expense. The Company had no accrued interest and/or penalties related to income tax matters in the Company’s balance sheets at June 30, 2012 and December 31, 2011, and has recognized no interest and/or penalties in the Company’s statement of operations for the three and six months ended June 30, 2012 and 2011. Further, as of June 30, 2012, the Company had not recorded any unrecognized tax benefits.

Pursuant to Internal Revenue Code (“IRC”) Sections 382 and 383, annual use of the Company’s net operating loss and research and development credit carryforwards may be limited in the event of a cumulative change in ownership of more than 50% within a three-year period. The Company has not completed this analysis regarding the limitation and therefore has removed the (1) deferred tax assets for net operating losses of approximately $123,436,000 and (2) research and development credits of approximately $6,562,000 generated through 2011 from its deferred tax asset schedule. Further, the Company has recorded a corresponding decrease to its valuation allowance. When this analysis is finalized, the Company plans to update its deferred tax asset and valuation allowance accordingly. The Company expects to complete this analysis within the next twelve months and, as a result, the Company may have a change in the unrecognized tax benefits that are recorded. Due to the existence of the valuation allowance, future changes in the Company’s unrecognized tax benefits will not impact the Company’s effective tax rate.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

Revenue Recognition

Revenue Recognition

Accounts Receivable

Accounts Receivable

Stock-Based Compensation

Stock-Based Compensation

Fair Value Reporting

Fair Value Reporting


Level 1 Inputs –		Quoted prices for identical instruments in active markets.

Level 2 Inputs –		Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable.

Level 3 Inputs –		Valuation derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

- Definition

Disclosure of accounting policy for revenue recognition. If the entity has different policies for different types of revenue transactions, the policy for each material type of transaction is generally disclosed. If a sales transaction has multiple element arrangements (for example, delivery of multiple products, services or the rights to use assets) the disclosure may indicate the accounting policy for each unit of accounting as well as how units of accounting are determined and valued. The disclosure may encompass important judgment as to appropriateness of principles related to recognition of revenue. The disclosure also may indicate the entity's treatment of any unearned or deferred revenue that arises from the transaction.

+ References + Details

- Definition

Disclosure of accounting policy for stock option and stock incentive plans. This disclosure may include (1) the types of stock option or incentive plans sponsored by the entity (2) the groups that participate in (or are covered by) each plan (3) significant plan provisions and (4) how stock compensation is measured, and the methodologies and significant assumptions used to determine that measurement.

+ References + Details

- Definition

Disclosure of accounting policy for trade and other accounts receivables. This disclosure may include the basis at which such receivables are carried in the entity's statements of financial position (for example, net realizable value), how the entity determines the level of its allowance for doubtful accounts, when impairments, charge-offs or recoveries are recognized, and the entity's income recognition policies for such receivables, including its treatment of related fees and costs, its treatment of premiums, discounts or unearned income, when accrual of interest is discontinued, how the entity records payments received on nonaccrual receivables and its policy for resuming accrual of interest on such receivables. If the enterprise holds a large number of similar loans, disclosure may include the accounting policy for the anticipation of prepayments and significant assumptions underlying prepayment estimates for amortization of premiums, discounts, and nonrefundable fees and costs.

+ References + Details

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2012

Summary of Significant Accounting Policies [Abstract]

Weighted average estimates used in the Black-Scholes option-pricing model


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Risk free interest rates		1.0	%		1.7	%		1.3	%		2.2	%
Expected life in years		5.8 years			5.5 years			5.9 years			6.3 years
Expected dividend yield		0.0	%		0.0	%		0.0	%		0.0	%
Expected volatility		71.6	%		73.2	%		70.7	%		73.9	%

Summary of stock based compensation expense included in statements of operations


	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Cost of product sales	$	78	$	76	$	187	$	132
Research and development		350		613		886		1,221
Selling, general and administrative		1,453		1,607		3,679		3,217

Total stock-based compensation expense included in loss from operations	$	1,881	$	2,296	$	4,752	$	4,570

Details of financial instruments carried at fair value


Description	Balance at June 30, 2012		Fair Value Measurements as of June 30, 2012
Description	Balance at June 30, 2012		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	85,685	$	85,685	$	—	$	—
Investments in marketable securities – short-term:
Debt instruments – Municipal debt obligations		2,772		—		2,772		—
Certificates of deposit		1,000		—		1,000		—

Assets at fair value	$	89,457	$	85,685	$	3,772	$	—

Description	Balance at December 31, 2011		Fair Value Measurements as of December 31, 2011
Description	Balance at December 31, 2011		Level 1		Level 2		Level 3
Assets:
Cash equivalents:
Money market funds	$	74,389	$	74,389	$	—	$	—
Debt instruments – Corporate debt obligations		6,346		—		6,346		—
Investments in marketable securities – short-term:
Debt instruments – Corporate debt obligations		37,394		—		37,394		—
Debt instruments – Municipal debt obligations		6,224		—		6,224		—
Certificates of deposit		1,000		—		1,000		—

Assets at fair value	$	125,353	$	74,389	$	50,964	$	—

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References + Details

Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2012

Net Loss Per Share [Abstract]

Reconciliation of the basic and diluted shares


	Three Months Ended June 30,				Six Months Ended June 30,
	2012		2011		2012		2011
Shares for basic and dilutive net loss per share:
Weighted average common shares outstanding		85,553		63,428		85,536		63,307

Denominator for basic and diluted earnings per share		85,553		63,428		85,536		63,307

Inventory (Tables)

6 Months Ended

Jun. 30, 2012

Inventory [Abstract]

Inventories, stated at the lower of cost or market


	June 30, 2012		December 31, 2011
Inventory:
Raw material	$	95	$	96
Finished goods		4,233		1,292

Total	$	4,328	$	1,388

Property and Equipment (Tables)

6 Months Ended

Jun. 30, 2012

Property and Equipment [Abstract]

Property and equipment for operations


	June 30, 2012			December 31, 2011
Property and equipment:
Manufacturing equipment	$	6,925		$	6,925
Leasehold improvements		1,637			1,610
Computer equipment and software		1,510			1,629
Furniture and fixtures		458			458
Construction-in-process		4,483			3,965

		15,013			14,587
Less accumulated depreciation		(4,717	)		(4,018	)

Total	$	10,296		$	10,569

Investments in Marketable Securities (Tables)

6 Months Ended

Jun. 30, 2012

Investments in Marketable Securities [Abstract]

Fair value of available-for-sale investments by types and classes of security


At June 30, 2012	Amortized Cost Basis		Other-than- temporary Impairments		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
Available-for-sale:
Debt instruments – Municipal debt obligations	$	2,772	$	—	$	—	$	—	$	2,772
Certificates of deposit		1,000		—		—		—		1,000

	$	3,772	$	—	$	—	$	—	$	3,772


At December 31, 2011	Amortized Cost Basis		Other-than- temporary Impairments		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
Available-for-sale:
Debt instruments – Corporate debt obligations	$	37,392	$	—	$	3	$	(1	)	$	37,394
Debt instruments – Municipal debt obligations		6,224		—		—		—			6,224
Certificates of deposit		1,000		—		—		—			1,000

	$	44,616	$	—	$	3	$	(1	)	$	44,618

Investments by contractual maturity


	June 30, 2012				December 31, 2011
	Cost		Fair Value		Cost		Fair Value
Due or callable in one year or less	$	3,772	$	3,772	$	44,616	$	44,618
Due after one year	$	—	$	—	$	—	$	—

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Restructuring and Impairment Charges (Tables)

6 Months Ended

Jun. 30, 2012

Restructuring and Impairment Charges [Abstract]

The restructuring charges for severance-related costs and termination of contractual obligations


	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Beginning restructuring liability	$	46		$	—	$	931		$	—
Severance and termination charges incurred		—			—		—			—
Severance and termination disbursements		(33	)		—		(918	)		—

Ending restructuring liability	$	13		$	—	$	13		$	—

Segment Information (Tables)

6 Months Ended

Jun. 30, 2012

Segment Information [Abstract]

Percent of Total Revenue to Major Customers


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Cardinal Health, Inc.		34	%		40	%		34	%		36	%
AmerisourceBergen Corporation		32	%		39	%		32	%		33	%
McKesson Corporation		26	%		11	%		26	%		22	%

The Company (Details)	6 Months Ended
The Company (Details)	Jun. 30, 2012
The Company (Textual) [Abstract]
Incorporation Date	May 2004
Minimum age of adults & children for treatment	2 years

Summary of Significant Accounting Policies (Details)	3 Months Ended		6 Months Ended
Summary of Significant Accounting Policies (Details)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Weighted average estimates used in the Black-Scholes option-pricing model
Risk free interest rates	1.00%	1.70%	1.30%	2.20%
Expected life in years	5 years 9 months 18 days	5 years 6 months	5 years 10 months 24 days	6 years 3 months 18 days
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Expected volatility	71.60%	73.20%	70.70%	73.90%

Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Summary of stock based compensation expense included in statements of operations
Total stock-based compensation expense included in loss from operations	$ 1,881	$ 2,296	$ 4,752	$ 4,570
Cost of product sales [Member]
Summary of stock based compensation expense included in statements of operations
Total stock-based compensation expense included in loss from operations	78	76	187	132
Research and development [Member]
Summary of stock based compensation expense included in statements of operations
Total stock-based compensation expense included in loss from operations	350	613	886	1,221
Selling, general and administrative [Member]
Summary of stock based compensation expense included in statements of operations
Total stock-based compensation expense included in loss from operations	$ 1,453	$ 1,607	$ 3,679	$ 3,217

- Definition

Represents the expense recognized during the period arising from equity-based compensation arrangements (for example, shares of stock, unit, stock options or other equity instruments) with employees, directors and certain consultants qualifying for treatment as employees.

+ References + Details

Summary of Significant Accounting Policies (Details 2) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Investments in marketable securities short-term:
Investments in marketable securities - short-term	$ 3,772	$ 44,618
Assets at fair value	89,457	125,353
Level 1 [Member]
Investments in marketable securities short-term:
Assets at fair value	85,685	74,389
Level 2 [Member]
Investments in marketable securities short-term:
Assets at fair value	3,772	50,964
Level 3 [Member]
Investments in marketable securities short-term:
Assets at fair value
Money Market Funds [Member]
Cash equivalents:
Cash equivalents	85,685	74,389
Money Market Funds [Member] \| Level 1 [Member]
Cash equivalents:
Cash equivalents	85,685	74,389
Money Market Funds [Member] \| Level 3 [Member]
Cash equivalents:
Cash equivalents
Debt instruments - Corporate debt obligations [Member]
Cash equivalents:
Cash equivalents		6,346
Investments in marketable securities short-term:
Investments in marketable securities - short-term		37,394
Debt instruments - Corporate debt obligations [Member] \| Level 2 [Member]
Cash equivalents:
Cash equivalents		6,346
Investments in marketable securities short-term:
Investments in marketable securities - short-term		37,394
Debt instruments - Corporate debt obligations [Member] \| Level 3 [Member]
Cash equivalents:
Cash equivalents
Investments in marketable securities short-term:
Investments in marketable securities - short-term
Debt instruments - Municipal debt obligations [Member]
Investments in marketable securities short-term:
Investments in marketable securities - short-term	2,772	6,224
Debt instruments - Municipal debt obligations [Member] \| Level 2 [Member]
Investments in marketable securities short-term:
Investments in marketable securities - short-term	2,772	6,224
Debt instruments - Municipal debt obligations [Member] \| Level 3 [Member]
Investments in marketable securities short-term:
Investments in marketable securities - short-term
Certificates of deposit [Member]
Investments in marketable securities short-term:
Investments in marketable securities - short-term	1,000	1,000
Certificates of deposit [Member] \| Level 2 [Member]
Investments in marketable securities short-term:
Investments in marketable securities - short-term	1,000	1,000
Certificates of deposit [Member] \| Level 3 [Member]
Investments in marketable securities short-term:
Investments in marketable securities - short-term

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Summary of Significant Accounting Policies (Textual) [Abstract]
Reserves for doubtful accounts	$ 0		$ 0		$ 0
Charges incurred to reserve or write-off past due accounts	$ 0	$ 0	$ 0	$ 0
Number of months before product expiration during which a customer can return product			6 months
Number of months after product expiration during which a customer can return product			12 months

Net Loss Per Share (Details) - shares
shares in Thousands

3 Months Ended

6 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

Shares for basic and dilutive net loss per share:

Weighted average common shares outstanding

85,553

63,428

85,536

63,307

Denominator for basic and diluted earnings per share

^[1]

85,553

63,428

85,536

63,307

[1]	(1) There is a lack of comparability in the per share amounts between the periods presented as a result of the issuance of shares of common stock pursuant to a public offering in November 2011. Please see Note 4 of the Notes to Condensed Financial Statements for further discussion.

- Definition

Number of [basic] shares or units, after adjustment for contingently issuable shares or units and other shares or units not deemed outstanding, determined by relating the portion of time within a reporting period that common shares or units have been outstanding to the total time in that period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Weighted-Average Number of Common Shares Outstanding
-URI http://asc.fasb.org/extlink&oid=6528421

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph a
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Net Loss Per Share (Details Textual) - shares	3 Months Ended	6 Months Ended
Net Loss Per Share (Details Textual) - shares	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2011
Net Loss Per Share (Textual) [Abstract]
Shares excluded from the calculations as their effect antidilutive	16,962,000	16,962,000	14,693,000
Common shares issued pursuant to a public offering	21,800,000	21,800,000

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Inventory:
Raw material	$ 95	$ 96
Finished goods	4,233	1,292
Total	$ 4,328	$ 1,388

Inventory (Details Textual) - USD ($)	3 Months Ended
Inventory (Details Textual) - USD ($)	Mar. 31, 2012	Dec. 31, 2011
Inventory (Textual) [Abstract]
Charges to fully write down the value of the inventory	$ 224,000	$ 5,574,000

Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Property and equipment:
Gross property and equipment	$ 15,013	$ 14,587
Less accumulated depreciation	(4,717)	(4,018)
Total	10,296	10,569
Manufacturing equipment [Member]
Property and equipment:
Gross property and equipment	6,925	6,925
Leasehold improvements [Member]
Property and equipment:
Gross property and equipment	1,637	1,610
Computer equipment and software [Member]
Property and equipment:
Gross property and equipment	1,510	1,629
Furniture and fixtures [Member]
Property and equipment:
Gross property and equipment	458	458
Construction-in-process [Member]
Property and equipment:
Gross property and equipment	$ 4,483	$ 3,965

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

Property and Equipment (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
Property and Equipment (Details Textual) - USD ($)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Property and Equipment (Textual) [Abstract]
Depreciation expense	$ 414,000	$ 424,000	$ 826,000	$ 822,000

Investments in Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Fair value of available-for-sale investments by types and classes of security
Amortized Cost Basis	$ 3,772	$ 44,616
Other-than-temporary Impairments
Gross Unrealized Holding Gains		3
Gross Unrealized Holding Losses		(1)
Fair Value	3,772	44,618
Debt instruments - Corporate debt obligations [Member]
Fair value of available-for-sale investments by types and classes of security
Amortized Cost Basis		37,392
Other-than-temporary Impairments
Gross Unrealized Holding Gains		3
Gross Unrealized Holding Losses		(1)
Fair Value		37,394
Debt instruments - Municipal debt obligations [Member]
Fair value of available-for-sale investments by types and classes of security
Amortized Cost Basis	2,772	6,224
Other-than-temporary Impairments
Gross Unrealized Holding Gains
Gross Unrealized Holding Losses
Fair Value	2,772	6,224
Certificates of deposit [Member]
Fair value of available-for-sale investments by types and classes of security
Amortized Cost Basis	1,000	1,000
Other-than-temporary Impairments
Gross Unrealized Holding Gains
Gross Unrealized Holding Losses
Fair Value	$ 1,000	$ 1,000

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

+ References + Details

Investments in Marketable Securities (Details 1) - USD ($) $ in Thousands	Jun. 30, 2012	Dec. 31, 2011
Investments by contractual maturity
Due or callable in one year or less, Cost	$ 3,772	$ 44,616
Due or callable in one year or less, Fair Value	3,772	44,618
Due after one year, Cost
Due after one year, Fair Value

Investments in Marketable Securities (Details Textual)	3 Months Ended		6 Months Ended
Investments in Marketable Securities (Details Textual)	Jun. 30, 2012 USD ($) Investment	Jun. 30, 2011 USD ($)	Jun. 30, 2012 USD ($) Investment	Jun. 30, 2011 USD ($)	Dec. 31, 2011 Investment
Investments in Marketable Securities (Textual) [Abstract]
Gains or losses realized on the sale of marketable securities \| $	$ 0	$ 0	$ 0	$ 0
Number of investments in an unrealized loss position \| Investment	0		0		2

Investment in Incline (Details) - USD ($)	1 Months Ended		6 Months Ended
Investment in Incline (Details) - USD ($)	Sep. 30, 2011	Jun. 30, 2010	Jun. 30, 2012
Investment in Incline (Textual) [Abstract]
Upfront option fee	$ 3,500,000	$ 3,500,000
Period after date on which investee submits supplemental			30 days
Extends after the filing of an initial public offering			30 days
Extends after the effective date of the option			42 months
Acquisition of company			$ 228,000,000
Additional payment upon approval of fentanyl iontophoretic transdermal system by concern authority			57,000,000
Compensation for extension of second option agreement			$ 2,500,000
Minority interest ownership by noncontrolling owners percentage			22.40%
Amount of Preferred Stock Received		500,000	$ 500,000
Number of Preferred Stock Received			500,000
Amount Assigned To Options By Company		$ 3,000,000
Aggregate option value	$ 6,500,000
Carrying value of the investments			$ 7,000,000
Additional funding requirement for acquisition			$ 0

Restructuring and Impairment Charges (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Restructuring and Impairment Charges [Abstract]
Beginning restructuring liability	$ 46,000		$ 931,000
Severance and termination charges incurred					1,142,000
Severance and termination disbursements	(33,000)		(918,000)
Ending restructuring liability	$ 13,000		$ 13,000		$ 931,000

- Definition

The charge against earnings in the period for known and estimated costs of termination benefits provided to current employees that are involuntarily terminated under a benefit arrangement associated with exit from or disposal of business activities or restructurings pursuant to a duly authorized plan, excluding costs or losses pertaining to an entity newly acquired in a business combination or a discontinued operation as defined by generally accepted accounting principles and costs associated with one-time termination benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6394359&loc=d3e17939-110869

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 5.P.4(b))
-URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140904-122747

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)(10)
-URI http://asc.fasb.org/extlink&oid=21915506&loc=d3e1928-114920

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 420
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 5.P.3)
-URI http://asc.fasb.org/extlink&oid=6394695&loc=d3e140864-122747

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 132R
-Paragraph 5-8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 5
-Section P
-Subsection 3, 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 146
-Paragraph 8-13, 20
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS146-1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 112
-Paragraph 7
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Restructuring and Impairment Charges (Details Textual)	3 Months Ended		6 Months Ended		12 Months Ended
Restructuring and Impairment Charges (Details Textual)	Jun. 30, 2012 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2012 USD ($) Employee	Jun. 30, 2011 USD ($)	Dec. 31, 2011 USD ($)
Restructuring and Impairment Charges (Textual) [Abstract]
One-time employee termination charges \| $					$ 1,142,000
Number of employees terminated \| Employee			17

- Definition

+ References

+ Details

Loan and Security Agreement (Details)	1 Months Ended		6 Months Ended
Loan and Security Agreement (Details)	Dec. 31, 2011 USD ($)	Jun. 30, 2010 USD ($) shares	Jun. 30, 2012 USD ($) Warrants $ / Warrant shares
Loan and Security Agreement (Textual) [Abstract]
Exercise price of common shares \| $ / Warrant			0.125
First Advance Line of Credit Facility [Member] \| Warrants [Member]
Loan and Security Agreement (Textual) [Abstract]
Risk free interest rates			3.64%
Expected dividend yield			0.00%
Expected volatility			70.00%
Contractual term			7 years
Number of aggregate shares underlying warrants \| shares			50,331
Fair value of Common stock warrants under Black-Scholes valuation model			$ 474,000
Exercise price of common shares \| $ / Warrant			12.67
Warrants Expiration Date			Nov. 30, 2014
Issued exercisable warrants related to credit facility \| Warrants			6
Restated Agreement [Member]
Loan and Security Agreement (Textual) [Abstract]
Payment of Line of Credit Facility		$ 15,000,000
Payment for termination of Loan		375,000
Amortization of financing costs		145,000
Principal balance of the Restated Agreement		$ 30,000,000
Restated Agreement [Member] \| Warrants [Member]
Loan and Security Agreement (Textual) [Abstract]
Risk free interest rates			2.70%
Expected dividend yield			0.00%
Expected volatility			76.50%
Contractual term			7 years
Number of aggregate shares underlying warrants \| shares		254,793
Fair value of Common stock warrants under Black-Scholes valuation model			$ 1,237,000
Exercise price of common shares \| $ / Warrant			7.0645
Warrants Expiration Date			Jun. 18, 2017
Issued exercisable warrants related to credit facility \| Warrants			3
Second Amended Agreement [Member]
Loan and Security Agreement (Textual) [Abstract]
Growth capital loan facility	$ 3,434,000
Fees and expenses paid in connection with closing of the credit facility	$ 63,000
Fixed interest rate	10.99%
Payment for termination of loan	$ 954,000
Payment for termination of loan, percentage	6.00%
Loan using an effective interest rate			15.31%
Length of time for payments to be made of principal and interest under second amended agreement			30 months
Second Amended Agreement [Member] \| Warrants [Member]
Loan and Security Agreement (Textual) [Abstract]
Risk free interest rates			1.40%
Expected dividend yield			0.00%
Expected volatility			72.40%
Contractual term			7 years
Number of aggregate shares underlying warrants \| shares			158,311
Fair value of Common stock warrants under Black-Scholes valuation model			$ 390,000
Exercise price of common shares \| $ / Warrant			3.79
Warrants Expiration Date			Dec. 22, 2018
Issued exercisable warrants related to credit facility \| Warrants			4

Commitments and Contingencies (Details)	1 Months Ended		3 Months Ended				6 Months Ended		12 Months Ended
Commitments and Contingencies (Details)	Apr. 30, 2011 USD ($)	Nov. 30, 2010 USD ($)	Jun. 30, 2012 USD ($)	Mar. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Jun. 30, 2011 USD ($)	Jun. 30, 2012 USD ($) Vials Lots Hour	Jun. 30, 2011 USD ($)	Dec. 31, 2011 USD ($)
Supply Agreements (Textual) [Abstract]
Inventory write-down				$ 224,000			$ 224,000
Initial term of amended supply agreement terminate date							Nov. 01, 2015
Written notice of termination to the other party							18 months
Additional licensing revenue recognized							$ 33,000
Number of recalled lots of unexpired OFIRMEV \| Lots							41
Remaining products in the field \| Vials							10,000
Legal Matters (Textual) [Abstract]
Number of months/ years for expiration of patent							30 months
Leases (Additional Textual) [Abstract]
Operating lease period							6 years
Expiration of lease							Dec. 01, 2013
Percentage of reducing of certificate of deposit							22.00%
Certificate of Deposit Balance Reduction					$ 1,391,000				$ 1,391,000
Restricted cash			$ 190,000		190,000		$ 190,000		190,000
Rent expense			236,000			$ 215,000	$ 473,000	$ 428,000
Patent infringement							45 days
Corporate Credit Card (Textual) [Abstract]
Certificate of deposit pledged as collateral			150,000				$ 150,000
Increased pledged amount									300,000
Legal Matters (Additional Textual) [Abstract]
222' patent expiration date							Aug. 05, 2017
218' patent expiration date							Jun. 06, 2021
Baxter Healthcare [Member]
Supply Agreements (Textual) [Abstract]
Initial term of development and supply agreement						$ 160,000		$ 160,000	$ 262,000
Initial term of development and supply agreement							5 years
Inventory write-down					$ 5,574,000
Reimbursements made under development and supply agreement
Period for termination notice relating to a material uncured breach of the Agreement							90 days
Period for termination notice relating to inability to assign contract to a competitor							30 days
Amended supply agreement automatically renewed							1 year
Unless either party provides at least two years prior written notice of termination to other party							2 years
Lawrence Laboratories [Member]
Leases (Textual) [Abstract]
Letter of credit, initial amount			$ 1,581,000				$ 1,581,000
Supply Agreements (Textual) [Abstract]
Period for termination notice relating to a material uncured breach of the Agreement							60 days
Period of supply agreement							36 months
Terumo Corporation [Member]
Supply Agreements (Textual) [Abstract]
Up front Payment							$ 5,329,000
Number of hours for technical assistance and consulting services \| Hour							500
Licensing revenue recognized	$ 5,210,000
Outstanding consulting hours							$ 86,000
OFIRMEV patent [Member]
Supply Agreements (Textual) [Abstract]
Up - front free paid		$ 25,000,000
Additional milestone payment		15,000,000
Future milestone payment		25,000,000
Upfront fee recognized as research and development expense		25,000,000
Milestone payment recorded as intangible assets		$ 15,000,000
Legal Matters (Textual) [Abstract]
Number of months/ years for expiration of patent							3 years

Stockholder's Equity (Details)	1 Months Ended			3 Months Ended	6 Months Ended
Stockholder's Equity (Details)	Nov. 30, 2011 USD ($) $ / shares shares	May 31, 2011 USD ($)	Feb. 28, 2009 $ / shares shares	Jun. 30, 2012 Directors Funds $ / Warrant shares	Jun. 30, 2012 USD ($) Directors Funds $ / Warrant shares	Jun. 30, 2011 USD ($)	Dec. 31, 2011 shares
Subsidiary, Sale of Stock [Line Items]
Increase the authorized number of shares of common stock from				200,000,000	200,000,000		100,000,000
Common stock issued				21,800,000	21,800,000
Net of offering costs \| $					$ 96,000	$ 1,401,000
Stockholders Equity (Textual) [Abstract]
Amount of Securities Issuable Under Shelf Registration \| $		$ 150,000,000
Warrants price \| $ / Warrant				0.125	0.125
Warrants exercise Price \| $ / Warrant				7.84	7.84
Period for warrant term					5 years
Number of affiliated funds participating in private placement \| Funds				6	6
Number of Directors participating in private placement \| Directors				3	3
Liquidated damages					1.00%
Liquidated damages cap					8.00%
Maximum [Member]
Subsidiary, Sale of Stock [Line Items]
Increase the authorized number of shares of common stock from				200,000,000	200,000,000
Minimum [Member]
Subsidiary, Sale of Stock [Line Items]
Increase the authorized number of shares of common stock from				100,000,000	100,000,000
Public offering [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock issued	21,800,000
Share Price \| $ / shares	$ 3.75
Net of offering costs \| $	$ 77,302,000
Private Placement [Member]
Subsidiary, Sale of Stock [Line Items]
Common stock issued			12,039,794
Share Price \| $ / shares			$ 7.13
Net of offering costs \| $					$ 86,243,000
Number of aggregate shares underlying warrants				6,019,897	6,019,897

Segment Information (Details)	3 Months Ended			6 Months Ended
Segment Information (Details)	Jun. 30, 2012	Sep. 30, 2011	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Amerisource Bergen Corporation [Member]
Percent of Total Revenue to Major Customers
Percentage of total product revenue	32.00%		39.00%	32.00%	33.00%
Cardinal Health Inc [Member]
Percent of Total Revenue to Major Customers
Percentage of total product revenue	34.00%	40.00%		34.00%	36.00%
Mckesson Corporation [Member]
Percent of Total Revenue to Major Customers
Percentage of total product revenue	26.00%		11.00%	26.00%	22.00%

Segment Information (Details Textual)	6 Months Ended
Segment Information (Details Textual)	Jun. 30, 2012 Segment Distributor
Segment Information (Textual) [Abstract]
Number of Leading Pharmaceutical Wholesaler Distributors Description	10% or more
Number of segments \| Segment	1
Number of leading wholesale pharmaceutical distributors \| Distributor	3

Income Taxes (Details) - USD ($)	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($)	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011
Income Taxes (Textual) [Abstract]
Accrued interest and/or penalties	$ 0		$ 0		$ 0
Interest and/or penalties	0	$ 0	0	$ 0
Unrecognized tax benefits	$ 0		$ 0
Cumulative change in ownership	50.00%		50.00%
Deferred tax assets for net operating losses	$ 123,436,000		$ 123,436,000
Research and development credits	$ 6,562,000		$ 6,562,000
Cumulative change in time period			3 years