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Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2012	Mar. 07, 2013	Jun. 30, 2012
Document Documentand Entity Information [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2012
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Trading Symbol	SCMP
Entity Registrant Name	Sucampo Pharmaceuticals, Inc.
Entity Central Index Key	0001365216
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 80.9
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		41,970,364

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current assets:
Cash and cash equivalents	$ 52,022	$ 50,662
Investments, current	6,035	24,452
Product royalties receivable	14,175	10,795
Unbilled accounts receivable	732	2,036
Accounts receivable, net	1,360	4,616
Prepaid and income taxes receivable		2,845
Deferred tax assets, current	874	163
Deferred charge, current	673	3,057
Restricted cash, current	15,113	15,113
Prepaid expenses and other current assets	1,930	1,177
Total current assets	92,914	114,916
Investments, non-current	14,408	998
Property and equipment, net	1,540	1,669
Intangibles assets, net	7,415	8,364
Deferred tax assets, non-current	1,654	2,089
Deferred charge, non-current	5,213	26,751
Restricted cash, non-current	3,832	2,129
Other assets	820	653
Total assets	127,796	157,569
Current liabilities:
Accounts payable	5,496	6,978
Accrued expenses	10,595	13,648
Deferred revenue, current	3,700	3,888
Deferred tax liability, current		2,167
Income tax payable	148
Notes payable, current	19,129	20,400
Other current liabilities	1,003
Total current liabilities	40,071	47,081
Notes payable, non-current	33,722	39,227
Deferred revenue, non-current	7,093	7,045
Deferred tax liability, non-current	2,627	23,019
Other liabilities	1,253	2,603
Total liabilities	84,766	118,975
Commitments and contingencies (Notes 10 and 13)
Stockholders' equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized at December 31, 2012 and 2011; no shares issued and outstanding at December 31, 2012 and 2011
Additional paid-in capital	62,521	59,957
Accumulated other comprehensive income	16,166	17,854
Treasury stock, at cost; 457,030 and 186,987 shares	(1,977)	(700)
Accumulated deficit	(34,100)	(38,936)
Total stockholders' equity	43,030	38,594
Total liabilities and stockholders' equity	127,796	157,569
Class A Common Stock [Member]
Stockholders' equity:
Common stock	$ 420	157
Class B Common Stock [Member]
Stockholders' equity:
Common stock		$ 262

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2012	Dec. 31, 2011
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Treasury stock, shares	457,030	186,987
Class A Common Stock [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	270,000,000	270,000,000
Common stock, shares issued	41,964,905	15,690,780
Common Stock Shares Outstanding	41,964,905	15,690,780
Class B Common Stock [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	0	75,000,000
Common stock, shares issued	0	26,191,050
Common Stock Shares Outstanding	0	26,191,050

Condensed Consolidated Statements Of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenues:
Research and development revenue	$ 21,545	$ 9,249	$ 16,540
Product royalty revenue	50,696	41,517	40,300
Co-promotion revenue	3,576	3,378	4,417
Contract and collaboration revenue	633	617	613
Product sales revenue	5,037
Total revenues	81,487	54,761	61,870
Cost of Goods Sold	3,030
Gross profit	78,457	54,761	61,870
Operating expenses:
Research and development	21,292	33,497	23,955
Settlement of legal dispute		(11,100)
General and administrative	30,157	41,270	27,867
Selling and marketing	18,691	8,783	10,201
Total operating expenses	70,140	72,450	62,023
Income (loss) from operations	8,317	(17,689)	(153)
Non-operating income (expense):
Interest income	179	249	608
Interest expense	(2,346)	(2,455)	(75)
Other income (expense), net	1,602	(2,019)	(3,700)
Total non-operating income (expense), net	(565)	(4,225)	(3,167)
Income (loss) before income taxes	7,752	(21,914)	(3,320)
Income tax benefit (provision)	(2,916)	4,608	565
Net income (loss)	$ 4,836	$ (17,306)	$ (2,755)
Net income (loss) per share:
Basic net income (loss) per share	$ 0.12	$ (0.41)	$ (0.07)
Diluted net income (loss) per share	$ 0.12	$ (0.41)	$ (0.07)
Weighted average common shares outstanding - basic	41,660	41,839	41,848
Weighted average common shares outstanding - diluted	41,785	41,839	41,848
Comprehensive income (loss):
Net income (loss)	$ 4,836	$ (17,306)	$ (2,755)
Other comprehensive income (loss):
Unrealized gain (loss) on investments, net of tax effect	36	(2)	(18)
Foreign currency translation	(1,724)	1,282	3,745
Comprehensive gain (loss)	$ 3,148	$ (16,026)	$ 972

Condensed Consolidated Statement Of Changes In Stockholders' Equity - USD ($) $ in Thousands	Class A Common Stock [Member]	Class B Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Retained Earnings (Accumulated Deficit) [Member]	Total
Beginning Balance (in shares) at Dec. 31, 2009	15,655,730	26,191,050
Beginning Balance at Dec. 31, 2009	$ 156	$ 262	$ 98,897	$ 12,847		$ 33,150	$ 145,312
Employee stock option expense			1,260				1,260
Stock issued under employee stock purchase plan (in shares)	4,187
Stock issued under employee stock purchase plan			14				14
Foreign currency translation				3,745			3,745
Unrealized gain (loss) on investments, net of tax effect				(18)			(18)
Deemed dividend for SAG acquisition			(41,703)			(38,297)	(80,000)
Dividend payments						(13,728)	(13,728)
Net income (loss)						(2,755)	(2,755)
Ending Balance (in shares) at Dec. 31, 2010	15,659,917	26,191,050
Ending Balance at Dec. 31, 2010	$ 156	$ 262	58,468	16,574		(21,630)	53,830
Employee stock option expense			1,370				1,370
Stock issued upon exercise of stock options (in shares)	27,500
Stock issued upon exercise of stock options	$ 1		106				107
Stock issued under employee stock purchase plan (in shares)	3,363
Stock issued under employee stock purchase plan			13				13
Foreign currency translation				1,282			1,282
Unrealized gain (loss) on investments, net of tax effect				(2)			(2)
Treasury stock, at cost (in shares)					186,987
Treasury stock, at cost					$ (700)		(700)
Net income (loss)						(17,306)	(17,306)
Ending Balance (in shares) at Dec. 31, 2011	15,690,780	26,191,050			186,987
Ending Balance at Dec. 31, 2011	$ 157	$ 262	59,957	17,854	$ (700)	(38,936)	38,594
Conversion of shares (in shares)	26,191,050	(26,191,050)
Conversion of shares	$ 262	$ (262)
Employee stock option expense			2,233				2,233
Stock issued upon exercise of stock options (in shares)	79,525
Stock issued upon exercise of stock options	$ 1		311				312
Stock issued under employee stock purchase plan (in shares)	3,550
Stock issued under employee stock purchase plan			20				20
Foreign currency translation				(1,724)			(1,724)
Unrealized gain (loss) on investments, net of tax effect				36			36
Treasury stock, at cost (in shares)					270,043
Treasury stock, at cost					$ (1,277)		(1,277)
Net income (loss)						4,836	4,836
Ending Balance (in shares) at Dec. 31, 2012	41,964,905				457,030
Ending Balance at Dec. 31, 2012	$ 420		$ 62,521	$ 16,166	$ (1,977)	$ (34,100)	$ 43,030

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income (loss)	$ 4,836	$ (17,306)	$ (2,755)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	1,488	1,308	964
Loss on disposal of property and equipment		12	1
Deferred tax provision (benefit)	(23,026)	26,228	(99)
Deferred charge	23,922	(29,808)
Stock-based compensation	2,233	1,370	1,260
Amortization of premiums on investments	67	651	1,617
Notes payable paid-in-kind interest	2,024	2,288
Gain on trading securities			(1,086)
Loss on settlement rights on auction rate securities			1,086
Unrealized currency translations (gains) losses	(1,300)
Changes in operating assets and liabilities:
Accounts receivable	3,256	(3,885)	(218)
Unbilled accounts receivable	1,303	(939)	(453)
Product royalties receivable	(3,380)	(280)	507
Inventory	87	(127)
Prepaid and income taxes receivable and payable, net	2,998	(2,173)	(2,689)
Accounts payable	(1,453)	2,872	893
Accrued expenses	15	523	3,329
Deferred revenue	(95)	(1,940)	(6,525)
Other assets and liabilities, net	(975)	1,215	818
Net cash provided by (used in) operating activities	12,000	(19,991)	(3,350)
Cash flows from investing activities:
Purchases of investments	(23,609)	(20,598)	(84,857)
Proceeds from sales of investments	750	7,380	25,855
Maturities of investments	27,790	46,665	90,492
Purchases of property and equipment	(439)	(284)	(333)
Proceeds from disposals of property and equipment		25	5
Issuance of notes receivable		(100)
Purchases of intangible assets	(3,000)	(3,000)
Purchase of other investing activities	(432)
Acquisition of SAG			(28,118)
Restricted cash	(1,649)	(2,187)	(14,900)
Net cash provided by investing activities	(589)	27,901	(11,856)
Cash flows from financing activities:
Proceeds from notes payable			12,079
Repayment of notes payable	(7,500)	(7,500)
Proceeds from exercise of stock options	311	106
Purchase of treasury stock	(1,277)	(700)
Proceeds from employee stock purchase plan	20	13	14
Dividend payments			(13,728)
Net cash used in financing activities	(8,446)	(8,081)	(1,635)
Effect of exchange rates on cash and cash equivalents	(1,605)	1,590	4,664
Net increase (decrease) in cash and cash equivalents	1,360	1,419	(12,177)
Cash and cash equivalents at beginning of period	50,662	49,243	61,420
Cash and cash equivalents at end of period	52,022	50,662	49,243
Supplemental Cash Flow disclosures: [Abstract]
Cash paid for interest	157	171	2
Tax refunds received	3,658	245	126
Tax payments made	$ 3,665	1,476	2,683
Supplemental disclosure of non-cash investing and financing activities:
Purchase of intangible assets included in accrued expenses		$ 3,000
Loan notes issued for acquisition of SAG			$ 51,882

Business Organization And Basis Of Presentation	12 Months Ended
Business Organization And Basis Of Presentation	Dec. 31, 2012
Business Organization And Basis Of Presentation [Abstract]
Business Organization And Basis Of Presentation	1.Business Organization and Basis of Presentation Description of the Business Sucampo Pharmaceuticals, Inc., or the Company, is a global biopharmaceutical company focused on innovative research, discovery, development and commercialization of proprietary drugs based on prostones and other novel drug technologies. The therapeutic potential of prostones was first discovered by the Company’s cofounder, Dr. Ryuji Ueno, and under his leadership the Company has pioneered the field of prostones. Prostones are naturally occurring fatty acid metabolites. Originally thought to be biologically inert, prostones have emerged as a promising compound class with unique physiological activities which can be targeted for the treatment of unmet or underserved medical needs. Prostones act locally to restore normal function in cells and tissues, and because they are quickly metabolized to an inactive form, their pharmacologic activity can be targeted to specific organs and tissues. Prostones possess a unique mechanism of action as highly potent and selective ion channel activators. Ion channels are integral parts of cell membranes that regulate the flow of specific ions into and out of cells. This regulation is key to the functioning of cells, such as metabolic processes and cell survival. As such, prostones are physiological mediators of the restoration of cellular homeostasis and tissue regeneration. There is also evidence that prostones have anti-inflammatory properties and can prevent cell death. The Company’s prostone-based compounds target the ClC-2 and big potassium, or BK, ion channels. Because these ion channels play an important role in physiology, targeted dosing of prostones may have broad applicability in many disease states in different organ systems. The Company has developed synthetic analogs of the naturally occurring prostones, which have been optimized to be more potent, selective, and stable, thus enabling their use as drugs. Prostones are very selective for their molecular targets, and the approved prostone-based compounds are well-tolerated and generally safe. The Company is focused on developing prostones to treat gastrointestinal, ophthalmic, neurologic, and oncology-based inflammatory disorders, and is also considering other potential therapeutic applications of the Company’s drug technologies. The Company currently generates revenue mainly from product royalties, development milestone payments, clinical development activities and product sales. The Company expects to continue to incur significant expenses for the next several years as the Company continues its research and development activities, seeks regulatory approvals and additional indications for AMITIZA^®(lubiprostone), RESCULA^® (unoprostone isopropyl) and other compounds, and commercializes the Company’s approved products on a global basis. To date, two prostone products have received marketing approval, AMITIZA and RESCULA, globally. A third prostone, cobiprostone, or SPI-8811, is in phase 1 clinical development for the target indication of prevention of oral mucositis, or OM, in 2013. The Company’s orphan drug application for cobiprostone for OM has not been granted by the U.S. Food and Drug Administration, or FDA, because the FDA believes that anyone who has cancer and is at risk for developing OM would take the drug and thus the target population and estimate are larger than orphan drug status. Two additional prostones, SPI-017 and SPI-3608, have also been developed for human testing for the indication of management of pain caused by spinal stenosis, and SPI-017 is currently in a phase 2A trial that is expected to conclude by the fourth quarter of 2013. AMITIZA is being marketed in the U.S. for two gastrointestinal indications under the October 2004 collaboration and license agreement with Takeda Pharmaceutical Company Limited, or Takeda Agreement. These indications are chronic idiopathic constipation, or CIC, in adults and irritable bowel syndrome with constipation, or IBS-C, in adult women. Takeda also holds marketing rights to AMITIZA in Canada, but has not yet commercialized it there. The Company is primarily responsible for clinical development activities under the Takeda Agreement while Takeda is responsible for commercialization of AMITIZA in the U.S. and Canada. The Company and Takeda initiated commercial sales of AMITIZA in the U.S. for the treatment of CIC, in April 2006 and for the treatment of IBS-C in May 2008. In July 2012, the Company filed a supplemental new drug application, or sNDA, with the FDA seeking priority review of a new, third indication for the use of AMITIZA in the treatment of opioid-induced constipation, or OIC. The sNDA was accepted for priority review, with an initial Prescription Drug User Fee Act, or PDFUA, date of late January 2013. In November 2012, the FDA notified us that it had extended the Company’s PDUFA goal date by three months. The expected PDUFA and FDA approval decision date is late April 2013. In Japan, lubiprostone is being developed and marketed under a license, commercialization and supply agreement, or the Abbott Agreement, with Abbott Japan Co. Ltd., or Abbott, for the treatment of chronic idiopathic constipation, or CIC, in Japan. The Company received approval of its new drug application, or NDA, for AMITIZA for the treatment of chronic constipation, or CC, excluding constipation caused by organic diseases, from the Ministry of Health, Labour and Welfare in June 2012. In November 2012, the Company and Abbott announced the availability of AMITIZA in Japan for CC. In the U.K., the Company received approval in September 2012 from the Medicines and Healthcare products Regulatory Agency, or MHRA, for the use of AMITIZA to treat CIC, and is currently working to achieve National Institute for Health and Clinical Excellence endorsement and launch in the U.K. in 2013. In Switzerland, AMITIZA was approved in 2009 and has been made available through a Named Patient Program throughout the E.U., Switzerland, Iceland and Norway since February 2012. In 2012, the Company reached agreement with the Bundesamt fur Gesundheit on a reimbursement price for AMITIZA in Switzerland, and began active marketing in the first quarter of 2013. The Company plans to commence the approval process in other E.U countries for CIC via the Mutual Recognition Procedure, or MRP, in 2013. In the first quarter of 2013, the Company also filed for an OIC indication in the U.K and Switzerland. If the Company receives approval in the U.K., the Company will seek approval in other E.U. countries following the MRP for OIC. The Company holds license agreements for RESCULA in the United States and Canada and the rest of the world, with the exception of Japan, Korea, Taiwan and the People’s Republic of China. An sNDA for RESCULA (unoprostone isopropyl ophthalmic solution) 0.15% for the lowering of intraocular pressure, or IOP, in patients with open-angle glaucoma or ocular hypertension was approved by the FDA in December 2012 and the Company began commercializing the product in February 2013. According to the approved product labeling, RESCULA may be used as a first-line agent or concomitantly with other topical ophthalmic drug products to lower intraocular pressure. RESCULA is a BK channel activator, which is different from other IOP lowering agents. In other areas of development, the Company entered into agreements in 2011 with CuroNZ of New Zealand, which may augment the Company’s ophthalmic development opportunities. In the first quarter of 2013, the Company has decided to no longer support the development of the peptide compound CuroNZ had started to evaluate the peptide compound for use in animal models of glaucoma and RP. Additionally, in 2011, and the Company entered into an agreement with Numab AG, or Numab of Switzerland, to obtain access to their proprietary technology for the discovery of high-affinity antibodies against certain selected targets. Basis of Presentation The accompanying Consolidated Financial Statements of the Company have been prepared in accordance with generally accepted accounting principles in the U.S. of America, or GAAP, and the rules and regulations of the Securities and Exchange Commission, or SEC. The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries: Sucampo AG, or SAG, based in Zug, Switzerland, in which the company conducts certain worldwide and European operations; Sucampo Pharma, Ltd., or SPL, based in Tokyo and Osaka, Japan, in which the Company conducts its Asian operations; Sucampo Pharma Americas LLC, or SPA, based in Bethesda, Maryland, in which the Company conducts operations in North and South America; Sucampo Pharma Europe, Ltd., or SPE, based in Oxford, U.K., and Ambrent Investments S.à r.l., based in Luxembourg which conduct operations in Europe. All significant inter-company balances and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

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+ Details

Summary Of Significant Accounting Policies

12 Months Ended

Dec. 31, 2012

Summary Of Significant Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Cash and Cash Equivalents

For the purpose of the Consolidated Balance Sheets and statements of cash flows, cash equivalents include all highly liquid investments with a maturity, at date of purchase, of 90 days or less at the time of purchase.

Restricted Cash

Restricted cash consists of approximately $18.9 million and $17.2 million at December 31, 2012 and December 31, 2011, respectively. Restricted cash represents cash required to be deposited with financial institutions in connection with a loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (see Note 11 below), the Numab Agreement (see Note 12 below) and operating leases.

Current and Non-Current Investments

Current and non-current investments consist primarily of U.S. government agency’s securities, corporate bonds, mutual funds and variable rate demand notes. The Company classifies its investments into current and non-current based on their maturities and management’s reasonable expectation to realize these investments in cash. The Company classifies all of its investments as available for sale securities and reports unrealized gains or losses, net of related tax effects, in other comprehensive income.

Certain Risks, Concentrations and Uncertainties

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and cash equivalents, restricted cash, investments and receivables. The Company places its cash, cash equivalents and restricted cash with highly rated financial institutions and invests its excess cash in highly rated investments. As of December 31, 2012 and 2011, approximately $16.8 million, or 18.4%, and $15.6 million, or 16.7%, respectively, of the Company’s cash, cash equivalents, restricted cash and investments were issued or insured by the federal government or government agencies. The Company has not experienced any losses on these accounts related to amounts in excess of insured limits.

The Company’s products and product candidates under development require approval from the FDA or other international regulatory agencies prior to commercial sales. For those product candidates or indications that have not yet been approved by the FDA or international regulatory agencies, there can be no assurance the products will receive the necessary approval. If the Company is denied approval or approval is delayed, it may have a material adverse impact on the Company.

The Company’s products, AMITIZA and RESCULA, compete in a rapidly changing, highly competitive market, which is characterized by advances in scientific discovery, changes in customer requirements, evolving regulatory requirements and developing industry standards. Any failure by the Company to anticipate or to respond adequately or timely to scientific developments in its industry, changes in customer requirements or changes in regulatory requirements or industry standards, or any significant delays in the development or introduction of products could have a material adverse effect on the Company’s business, operating results and future cash flows.

The Company’s expected activities may necessitate significant uses of working capital. The Company’s working capital requirements will depend on many factors, including the successful sales of AMITIZA and RESCULA, research and development efforts to develop new products or indications, payments received under contractual agreements with other parties, the status of competitive products and market acceptance of the Company’s new products by physicians and patients. The Company plans to continue financing operations with its existing cash and investments as well as with product royalty revenue and cash received from milestones and other revenue related to its joint collaboration, license and supply agreements.

Revenues from one unrelated party, Takeda, accounted for 74.4%, 96.9% and 81.4%, of the Company’s total revenues for the years ended December 31, 2012, 2011 and 2010, respectively. Accounts receivable, unbilled accounts receivable and product royalties receivable from Takeda accounted for 98.0% and 100.0% of the Company’s total accounts receivable, unbilled accounts receivable and product royalties receivable at December 31, 2012 and 2011. Revenues from another unrelated party, Abbott, accounted for 19.3%, 2.3% and 18.0% of the Company’s total revenues for the years ended December 31, 2012, 2011 and 2010. The Company depends significantly upon the collaborations with Takeda and Abbott and its activities may be impacted if these relationships are disrupted (Note 13).

The Company has an exclusive supply arrangement with R-Tech to provide it with commercial and clinical supplies of its product and product candidates. R-Tech also provides certain preclinical and other research and development services. Any difficulties or delays in performing the services under these arrangements may cause the Company to lose revenues, delay research and development activities or otherwise disrupt the Company’s operations (Note 10).

Fair Value of Financial Instruments

The carrying amounts of the Company’s financial instruments, which include cash and cash equivalents, restricted cash, current and non-current investments, bank loan, receivables, accounts payable and accrued expenses, approximate their fair values based on their short maturities, independent valuations or internal assessments. The carrying amount of the notes payable at December 31, 2012 was less than the estimated fair value and at December 31, 2011 approximated its fair value. The Company’s debt is subject to the fair value disclosure requirements as discussed in Note 4 below and is considered a Level 2 security.

Accounts Receivable and Unbilled Accounts Receivable

Accounts receivable represent mainly amounts due under the Takeda Agreement and the Abbott Agreement (Note 12). Unbilled accounts receivable represent the research and development expenses that are reimbursable by Takeda but have not been billed to Takeda as of the balance sheet date. The Company recorded an allowance for doubtful accounts at December 31, 2012 of approximately $280,000 related to certain disputed Takeda invoices. No allowance was recorded in 2011.

Product Royalties Receivable

Product royalties receivable represent amounts due from Takeda for the Company’s royalties on sales of AMITIZA, which are based on reports obtained directly from Takeda.

Property and Equipment

Property and equipment are recorded at cost and consist of computer and office machines, furniture and fixtures and leasehold improvements. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Computer and office machines are depreciated over four years and furniture and fixtures are depreciated over seven years. Leasehold improvements are amortized over the shorter of ten years or the life of the lease. Significant additions and improvements are capitalized. Expenditures for maintenance and repairs are charged to earnings as incurred. When assets are sold or retired, the related cost and accumulated depreciation are removed from the respective accounts and any resulting gain or loss is included in earnings.

Impairment of Long-lived Assets

When necessary, the Company assesses the recoverability of its long-lived assets by determining whether the carrying value of such assets can be recovered through undiscounted future operating cash flows. If impairment is indicated, the Company measures the amount of such impairment by comparing the fair value to the carrying value. There have been no impairment charges recorded during the years ended December 31, 2012, 2011 or 2010 because there have been no indicators of impairment during those years.

Revenue Recognition

The Company’s revenues are derived primarily from collaboration and license agreements and include upfront payments, development milestone payments, reimbursements of development and co-promotion costs, product sales and product royalties.

The Company evaluated the multiple deliverables within the collaboration and license agreements in accordance with the guidance of multiple deliverables to determine whether the delivered elements that are the obligation of the Company have value to other parties to the agreement on a stand-alone basis and whether objective reliable evidence of fair value of the undelivered items exists. Deliverables that meet these criteria are considered a separate unit of accounting. Deliverables that do not meet these criteria are combined and accounted for as a single unit of accounting. The appropriate recognition of revenue is then applied to each separate unit of accounting. The Company’s deliverables under the Takeda Agreement and Abbott Agreement, including the related rights and obligations, contractual cash flows and performance periods, are more fully described in Note 13 below.

In October 2009, the FASB issued new revenue recognition standards for arrangements with multiple deliverables, which were effective for the Company as of January 1, 2011. These standards address the determination of the unit(s) of accounting for multiple-element arrangements and how the arrangement’s consideration should be allocated to each unit of accounting. An item can generally be considered a separate unit of accounting if all of the following criteria are met: (1) the delivered item(s) has value to the customer on a stand-alone basis and (2) if the arrangement includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in control of the Company. Items that cannot be divided into separate units are combined with other units of accounting, as appropriate. Consideration received is allocated among the separate units based on VSOE if available; third-party evidence, if VSOE is unavailable; and estimated selling prices if neither VSOE nor third-party evidence is available. The new accounting standards were adopted by the Company on a prospective basis on January 1, 2011. The Company did not enter into any new multiple-element arrangements or materially modify any existing arrangements during 2011. The adoption of these standards did not have a material effect on the Company’s consolidated results of operations, financial position or liquidity.

Where agreements include contingent milestones we evaluate whether each milestone is substantive. Milestones are considered substantive if all of the following conditions are met: (1) it is commensurate with either our performance to meet the milestone or the enhancement of the value of the delivered item or items as a result of a specific outcome resulting from the our performance to achieve the milestone, (2) it relates solely to past performance, and (3) the value of the milestone is reasonable relative to all the deliverables and payment terms (including other potential milestone consideration) within the arrangement. Where milestones are not considered substantive their treatment is based on either a time-based or proportional performance model.

The Company applies a time-based model of revenue recognition for cash flows associated with research and development deliverables under the Takeda Agreement. Under this model, cash flow streams related to each unit of accounting are recognized as revenue over the estimated performance period. Upon receipt of cash payments, such as development milestones, revenue is recognized to the extent the accumulated service time has occurred. The remainder is deferred and recognized as revenue ratably over the remaining estimated performance period. A change in the period of time expected to complete the deliverable is accounted for as a change in estimate on a prospective basis. In cases where milestone payments are received after the completion of the associated development period, the Company recognizes revenue upon completion of the performance obligation. Revenue is limited to amounts that are nonrefundable and that the other party to the agreement is contractually obligated to pay to the Company. The Company recognizes reimbursable research and development costs under the Takeda Agreement as research and development revenue using a time-based model over the estimated performance period. The research and development revenue for these obligations is limited to the lesser of the actual reimbursable costs incurred or the straight-line amount of revenue recognized over the estimated performance period. Revenues are recognized for reimbursable costs only if those costs can be reasonably determined.

The Company applies a proportional-performance model using the percentage-of-completion method of revenue recognition for cash flows associated with research and development deliverables under the Abbott Agreement. Since the Company has previous research and development experience and the expected cost to complete the development can be reasonably estimated, the Company believes a proportional-performance methodology of revenue recognition is appropriate. Under this method, revenue in any period is recognized as a percentage of the total actual cost expended relative to the total estimated costs required to satisfy the performance obligations under the arrangement related to the development. Revenue recognized is limited to the amounts that are non-refundable and that the other party to the agreement is contractually obligated to pay to the Company. A change in the period of time expected to complete the deliverable is accounted for as a change in estimate on a prospective basis. Research and development costs are not reimbursable under the Abbott Agreement.

Under the Takeda Agreement, royalties are based on net sales of licensed products and are recorded on the accrual basis when earned in accordance with contractual terms when third-party results are reliably measurable, collectability is reasonably assured and all other revenue recognition criteria are met. Under the Abbott Agreement, should AMITIZA be commercialized in Japan, the Company will purchase and assume title to inventories of AMITIZA and recognize revenues from the sales, to Abbott, of such product when earned.

The Company also entered into a supplemental agreement, or the Supplemental Takeda Agreement, consisting of the following key funding streams: reimbursements of co-promotion costs based upon a per-day rate and reimbursements of the costs of miscellaneous marketing activities, which the Company recognized as revenue as the related costs are incurred and Takeda becomes contractually obligated to pay the amounts. Co-promotion costs after May 31, 2011 are reimbursed under the Takeda Agreement and the amounts recognized are based on amounts billed for actual details presented to health care prescribers.

The Company considers its participation in the joint committees under the collaboration and license agreements as separate deliverables under the contracts and recognizes the fair value of such participation as collaboration revenue over the period of the participation per the terms of the contracts.

The Company has determined that it is acting as a principal under both the Takeda Agreement and Abbott Agreement and, as such, records revenue on a gross basis in the Consolidated Statements of Operations and Comprehensive Income (Loss).

Product Sales Revenue

Product sales predominately consist of AMITIZA sales to Abbott in Japan. Revenue from product sales is recognized when persuasive evidence of an arrangement exists, delivery has occurred and title to product and associated risk of loss have passed to the customer, the price is fixed or determinable, collection from the customer is reasonably assured. The Company did not record sales deductions and returns for sales of AMITIZA to Abbott due to the absence of discounts and rebates and no right of return under the contract with Abbott.

Contract Revenue

Contract revenue relates to development and consulting activities with R-Tech and is accounted for under the time-based model.

Deferred Revenue

Deferred revenue represents payments received for licensing fees, option fees, consulting, research and development contracts and related cost sharing and supply agreements, mainly with Takeda, Abbott and R-Tech, which are deferred until revenue can be recognized under the Company’s revenue recognition policy. Deferred revenue is classified as current if management believes the Company will be able to recognize the deferred amount as revenue within 12 months of the balance sheet date. At December 31, 2012 and 2011, total deferred revenue was approximately $10.8 million and $10.9 million, respectively.

Total deferred revenue consists of the following as of:


		December 31,
(In thousands)		2012		2011
Deferred revenue, current	$	3,700	$	3,888
Deferred revenue, non-current		7,093		7,045
	$	10,793	$	10,933
Deferred revenue to related parties, included in total deferred revenue:
Deferred revenue to related parties, current	$	479	$	433
Deferred revenue to related parties, non-current		5,386		5,063
Total	$	5,865	$	5,496

Cost of Goods Sold

Cost of goods sold relates to sales and distribution of the Company’s products sold by the Company.

Research and Development Expenses

Research and development costs are expensed in the period in which they are incurred and include the expenses from third parties who conduct research and development activities pursuant to development and consulting agreements on behalf of the Company. Costs related to the acquisition of intellectual property are expensed as incurred in research and development expenses since the underlying technology associated with such acquisitions is unproven, has not received regulatory approval at its early stage of development and does not have alternative future uses. Milestone payments due under agreements with third party contract research organizations, or CROs, are accrued when it is considered probable that the milestone event will be achieved.

General and Administrative Expenses

General and administrative costs are expensed as incurred and consist primarily of salaries and other related costs for personnel serving executive, finance, accounting, information technology and human resource functions. Other costs include facility costs and professional fees for legal and accounting services.

Selling and Marketing Expenses

Selling and marketing expenses represent costs the Company incurs to co-promote AMITIZA and promote RESCULA, including salaries, benefits and related costs of the Company’s sales force and other sales and marketing personnel, costs of market research and analysis and other selling and marketing expenses.

Interest Income

Interest income consists of interest earned on the Company’s cash and cash equivalents and current and non-current investments.

Accrued Research and Development Expenses

As part of the process of preparing Consolidated Financial Statements, the Company is required to estimate accruals for research and development expenses. This process involves reviewing and identifying services which have been performed by third parties on the Company’s behalf and determining the value of these services. Examples of these services are payments to clinical investigators and contract service organizations. In addition, the Company makes estimates of costs incurred to date but not yet invoiced, in relation to external CROs and clinical site costs. The Company analyzes the progress of clinical trials, including levels of patient enrollment; invoices received and contracted costs, when evaluating the adequacy of the accrued liabilities for research and development. The Company makes significant judgments and estimates in determining the accrued balance in any accounting period.

Employee Stock-Based Compensation

The Company applied accounting guidance for share-based awards that requires the measurement and recognition of expense for all share-based compensation of employees and directors to be based on estimated fair values of the share-based awards. This guidance requires companies to estimate the fair value of share-based awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service period in the Company’s consolidated statement of operations.

The Company’s determination of fair value of share-based awards on the date of grant using an option-pricing model is affected by the Company’s stock price and assumptions regarding a number of highly complex and subjective variables.

The assumptions used to estimate the fair value of stock options granted for the three years ended December 31, 2012 were as follows:


	Year Ended December 31,
	2012	2011	2010
Expected volatility	62% - 64%	55% - 64%	51% - 63%
Risk-free interest rate	0.76% - 1.60%	1.30% - 3.30%	1.89% - 3.24%
Expected term (in years)	5.50 - 6.25	2.10 - 6.25	5.00 - 6.25
Expected dividend yield	0%	0%	0%

Expected Volatility: The Company evaluated the assumptions used to estimate expected volatility, including whether implied volatility of its options appropriately reflects the market’s expectations of future volatility. The Company determined that it would calculate the expected volatility rate using historical stock prices obtained from comparable publicly-traded companies due to the limited history of the Company’s common stock activity.

Risk-Free Interest Rate: The risk-free interest rate is based on the market yield currently available on U.S. Treasury securities with a maturity that approximates the expected term of the share-based awards.

Expected Term: The Company elected to use the “simplified” method to calculate its expected term of share-based awards. Under this method, the expected term is the weighted average of the vesting term and the contractual term. The Company has used a lattice based model to determine the expected term for its market condition share-based awards.

Expected Dividend Yield: The Company has not paid, and does not anticipate paying, any dividends in the foreseeable future.

Employee stock-based compensation expense for the three years ended December 31, 2012 has been reduced for estimated forfeitures as such expense is based upon awards expected to ultimately vest. Accounting guidance on share-based payments requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. During the years ended December 31, 2012, 2011 and 2010, the estimated forfeiture rate ranged from 10.0% to 14.0%.

Employee stock-based compensation expense recorded in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the three years ended December 31, 2012 was as follows:



		Year Ended December 31,
(In thousands)		2012		2011		2010
Research and development expense	$	535	$	234	$	252
General and administrative expense		1,349		964		729
Selling and marketing expense		349		172		279
Total		2,233		1,370		1,260

Employee stock-based compensation expense per basic and diluted share of common stock	$	0.05	$	0.03	$	0.03

Income Taxes

The Company accounts for income taxes under the asset and liability method in accordance with the relevant accounting guidance for income taxes. Under the asset and liability method, the current income tax provision or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credits and loss carry-forwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax rate changes are reflected in the income tax provision during the period such changes are enacted. Changes in ownership may limit the amount of net operating loss, or NOL, carry-forwards that can be utilized in the future to offset taxable income.

In September 2011, the Company internally transferred certain intellectual property and licenses from the Company’s subsidiaries, including the U.S. based subsidiary, to SAG. Since the transfer of these assets was to a related party, the recognition of a deferred tax asset by SAG is prohibited and the net tax effect of the transaction is deferred in consolidation. The tax liability generated from this transaction is offset by a deferred charge that is being amortized over ten years. Following the decision of the International Court of Arbitration of the International Chamber of Commerce on the Takeda Agreement in July 2012, the Company determined that the internal transfer of the intellectual property was only partially complete and is continuing to evaluate whether the U.S. rights related to AMITIZA will transfer to SAG in the future. This resulted in a reassessment of the deferred charge, deferred tax liability and the mix of profits and losses earned in each jurisdiction. For the year ended December 31, 2012, the Company recorded a benefit of approximately $1.9 million related to the partial reversal of the internal transfer and reduced the deferred charge and deferred tax liability by approximately, $23.8 million and $24.1 million respectively. As of December 31, 2012, the total deferred charge is $5.9 million after a net current year amortization expense of $77,000.

For all significant intercompany transactions, the Company’s management has evaluated the terms of the transactions using significant estimates and judgments to ensure that each significant transaction would be on similar terms if the Company completed the transaction with an unrelated party. Although the Company believes there will be no material tax liabilities to the Company as a result of multi-jurisdictional transactions, there can be no assurance that taxing authorities will not assert that transactions were entered into at monetary values other than fair values. If such assertions were made, the Company’s intention would be to vigorously defend its positions; however, there can be no assurance that additional liabilities may not occur as a result of any such assertions.

Uncertain Tax Positions

The Company applies the accounting guidance for uncertain tax positions that requires the application of a more likely than not threshold to the recognition and de-recognition of uncertain tax positions. If the recognition threshold is met, the Company recognizes a tax benefit measured at the largest amount of the tax benefit that, in its judgment, is more than 50% likely to be realized upon settlement.

The Company has recorded an income tax liability of approximately $1.1 million and $1.5 million, including interest, for uncertain tax positions as of December 31, 2012 and 2011, respectively. As of December 31, 2012 and 2011, $660,000 and $471,000 are reflected as other current liabilities and other liabilities, respectively, in the accompanying Consolidated Balance Sheets. As of December 31, 2011, $1.5 million was reflected as other liabilities in the accompanying Consolidated Balance Sheets. These amounts represent the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s Consolidated Financial Statements. The liability for uncertain tax positions as of December 31, 2012 and 2011 mainly pertained to the Company’s interpretation of nexus in certain states related to revenue sourcing for state income tax purposes, as well as uncertain tax positions related to related party interest in foreign jurisdictions. During the twelve months ended December 31, 2012, the liability for income taxes has decreased approximately $350,000. This decrease in the liability is related primarily to settlement of a tax audit in Japan, offset by a net increase related to current year activity in the U.S. including settlements with tax authorities and revisions to prior year estimates.

The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision. The Company expects to file income tax returns as of December 31, 2012; the Company has recorded a liability for uncertain tax positions. Therefore, the amount of $660,000 expected to reverse within the next twelve months has been recorded as a current liability. Other than the expected settlement of tax liabilities, no additional uncertain tax positions have been identified for which it is reasonably possible that the total amount of liability for unrecognized tax benefits will significantly increase or decrease within 12 months, except for recurring accruals on existing uncertain tax positions. In addition, future changes in the unrecognized tax benefits would have an effect on the effective tax rate when recognized.

Currently tax years 2009, 2010, 2011 and 2012 remain open and subject to examination in the major tax jurisdictions in which tax returns are filed.

Deferred Charge

Certain intellectual property was transferred within the group resulting in a gain in the sellers’ tax jurisdiction and a difference in the buyer’s tax jurisdiction between the new tax basis and the carrying amount of those assets. The FASB guidance on income taxes precludes the Company from including the effects of any intercompany transfers in the financial statements, and so the net tax effect of an intercompany transaction is deferred in consolidation.

These deferred tax effects include the reversal of any existing deferred tax asset (and its related valuation allowance, if any) or liability and any taxes currently payable resulting from the intercompany transaction when the asset remains in the consolidated group for financial reporting purposes. This deferred effect is not the result of a temporary difference and is therefore classified as a deferred charge on the Consolidated Balance Sheet separate from the Company's deferred tax assets.

Since the deferred charge is not part of the deferred tax assets, it is not subject to revaluation for tax rate changes and realizability as prescribed by the FASB’s guidance on income taxes. Thus, the deferred charge will remain fixed and will be amortized over the determined life of 10 years and be included as part of the provision for income taxes as a permanent difference.

Foreign Currency

The Company translates the assets and liabilities of its foreign subsidiaries into U.S. dollars at the current exchange rate in effect at the end of the year and maintains the capital accounts of these subsidiaries at the historical exchange rates. The revenue, income and expense accounts of the foreign subsidiaries are translated into U.S. dollars at the average rates that prevailed during the relevant period. The gains and losses that results from this process are included in accumulated other comprehensive income in the stockholders’ equity section of the balance sheet.

Realized and unrealized foreign currency gains or losses on assets and liabilities denominated in a currency other than the functional currency are included in net income.

Other Comprehensive Income

Comprehensive income consists of net income plus certain other items that are recorded directly to stockholders’ equity. The Company has reported comprehensive income in the Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company has outstanding intercompany loans and investments between its subsidiaries which are eliminated for purposes of the Consolidated Financial Statements. These intercompany loans are not expected to be repaid or settled in the foreseeable future. Accordingly, the currency transaction gains or losses on these intercompany loans are recorded as part of other comprehensive income in the Consolidated Financial Statements.

Segment Information

Management has determined that the Company has three reportable segments, which are based on its method of internal reporting by geographical location. The Company’s reportable segments are the U.S., Europe and Asia.

Recent Accounting Pronouncements

In February 2013, the FASB issued an accounting update on Comprehensive Income-Topic 220: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires the Company to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, the Company is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, the Company is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. This update will be effective for public companies during the interim and annual periods beginning after December 15, 2012. The Company does not expect that the adoption of this guidance will have a material impact on the Company's consolidated financial statements.

Net Income (Loss) per Share

12 Months Ended

Dec. 31, 2012

Net Income (Loss) per Share

Net Income (Loss) per Share

3. Net Income (Loss) per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the sum of the weighted average class A and B common shares outstanding. Diluted net income per share is computed by dividing net income by the weighted average common shares and potential dilutive common shares outstanding. Diluted net loss per share, when applicable, is computed by dividing net loss by the weighted average common shares outstanding without the impact of potential dilutive common shares outstanding because they would have an anti-dilutive impact on diluted net loss per share.

The computation of net income (loss) per share for the three years ended December 31, 2012, is shown below:



		December 31,
(in thousands, except per share data)		2012		2011		2010
Basic net income (loss) per share:
Net income (loss)	$	4,836	$	(17,306)	$	(2,755)

Weighted average class A and B common shares
outstanding		41,660		41,839		41,848

Basic net income (loss) per share	$	0.12	$	(0.41)	$	(0.07)

Diluted net income (loss) per share:
Net income (loss)	$	4,836	$	(17,306)	$	(2,755)

Weighted average class A and B common shares
outstanding for diluted net income per share		41,660		41,839		41,848

Assumed exercise of stock options under the treasury
stock method		125		-		-
		41,785		41,839		41,848

Diluted net income (loss) per share	$	0.12	$	(0.41)	$	(0.07)

For the years listed above, the potentially dilutive securities used in the calculations of diluted net income per share as of December 31, 2012, 2011 and 2010 are as follows:


	December 31,
(In thousands)	2012	2011	2010
Employee stock options	2,811	-	-
Non-employee stock options	450	-	-

For the years listed above, the following securities were excluded from the computation of diluted net income (loss) per share as their effect would be anti-dilutive as of December 31, 2012, 2011 and 2010:


	December 31,
(In thousands)	2012	2011	2010
Employee stock options	596	3,595	1,554
Non-employee stock options	-	450	450

Current And Non-Current Investments

12 Months Ended

Dec. 31, 2012

Current And Non-Current Investments [Abstract]

Current And Non-Current Investments

4.Current and Non-Current Investments

At December 31, 2012 and 2011, current and non-current investments consisted of the following securities:


		December 31, 2012
				Unrealized		Unrealized
(In thousands)		Cost		Gains		Losses		Fair Value
Current:
U.S. commercial paper	$	2,499	$	-	$	-	$	2,499
Municipal securities		251		-		-		251
Certificates of deposits		500		-		-		500
Variable rate demand notes		2,785		-		-		2,785
Total	$	6,035	$	-	$	-	$	6,035

Non-current:
U.S. government securities		10,131	$	2	$	(3)	$	10,130
Certificates of deposits		3,000		-		-		3,000
Corporate bonds		1,281		-		(3)		1,278
Total	$	14,412	$	2	$	(6)	$	14,408

		December 31, 2011
				Unrealized		Unrealized
(In thousands)		Cost		Gains		Losses		Fair Value
Current:
U.S. commercial paper	$	1,997	$	3	$	-	$	2,000
U.S. government securities		3,250		-		-		3,250
Corporate bonds		7,002		8		(3)		7,007
Variable rate demand notes		12,195		-		-		12,195
Total	$	24,444	$	11	$	(3)	$	24,452

Non-current:
U.S. government securities	$	1,000	$	-	$	(2)	$	998
Total	$	1,000	$	-	$	(2)	$	998

The Company performs fair value measurements in accordance with the FASB’s guidance for fair value measurements and disclosures, which defines fair value as the exchange price that would be received for selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A fair value hierarchy is established which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company classifies its investments into the following categories based on the three levels of inputs used to measure fair value:

Level 1: quoted prices in active markets for identical assets or liabilities;

Level 2: inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; or

Level 3: unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s assets measured at fair value on a recurring basis, including cash equivalents, which are subject to the fair value disclosure requirements, are as follows:



		Fair Value Measurements at Reporting Date Using
December 31, 2012		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)		(Level 1)		(Level 2)		(Level 3)		Total
U.S. government securities	$	-	$	10,130	$	-	$	10,130
U.S. commercial paper		-		5,998		-		5,998
Municipal securities		-		1,253		-		1,253
Certificates of deposits		-		3,500		-		3,500
Corporate bonds		-		6,286		-		6,286
Money market funds		16,274		-		-		16,274
Variable rate demand notes		-		2,785		-		2,785
Total assets measured at fair value	$	16,274	$	29,952	$	-	$	46,226


		Fair Value Measurements at Reporting Date Using
December 31, 2011		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)		(Level 1)		(Level 2)		(Level 3)		Total
U.S. government securities	$	-	$	4,248	$	-	$	4,248
U.S. commercial paper		-		2,000		-		2,000
Corporate bonds		-		7,007		-		7,007
Money market funds		12,885		-		-		12,885
Variable rate demand notes		-		12,195		-		12,195
Total assets measured at fair value	$	12,885	$	25,450	$	-	$	38,335

If quoted prices in active markets for identical assets and liabilities are not available to determine fair value, then the Company uses quoted prices for similar assets and liabilities or inputs other than the quoted prices that are observable, either directly or indirectly. This pricing methodology applies to the Company’s Level 2 investments.

Property and Equipment

12 Months Ended

Dec. 31, 2012

Property and Equipment [Abstract]

Property and Equipment

5.Property and Equipment

Property and equipment consists of the following as of:


		December 31,
(In thousands)		2012		2011
Computer and office machines	$	2,598	$	2,181
Furniture and fixtures		434		438
Leasehold improvements		1,478		1,495
Total cost		4,510		4,114
Less: accumulated depreciation		(2,970)		(2,445)
Total	$	1,540	$	1,669

Depreciation expense for the years ended December 31, 2012, 2011 and 2010 was approximately $542,000, $591,000 and $604,000, respectively.

The leasehold improvements as of December 31, 2012 are related to tenant improvements to the Company’s headquarters in Bethesda, Maryland.

- 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

Intangible Assets	12 Months Ended
Intangible Assets	Dec. 31, 2012
Intangible Assets [Abstract]
Intangible Assets	6.Intangible Assets In April 2009, the Company entered into an agreement with R-Tech, or the 2009 R-Tech Agreement, to acquire all patents and other intellectual property rights related to RESCULA for its FDA approved indication and any new indications for unoprostone isopropyl in the U.S. and Canada. An sNDA for RESCULA (unoprostone isopropyl ophthalmic solution) 0.15% for the lowering of IOP in patients with open-angle glaucoma or ocular hypertension was approved by the FDA in December 2012 and the Company began commercializing the product in February, 2013. According to the approved product labeling, RESCULA may be used as a first-line agent or concomitantly with other topical ophthalmic drug products to lower intraocular pressure. RESCULA is a BK, or Big Potassium, channel activator, which is different from other IOP lowering agents. Under the terms of the 2009 R-Tech agreement, the Company made an upfront payment of $3.0 million and may be required to pay up to $5.5 million in additional milestone payments to R-Tech based on the achievement of specified development and commercialization goals. The first milestone payment of $500,000 is payable upon the re-launch of RESCULA for the treatment of glaucoma which is considered as being probable; therefore, this amount is recorded as part of the initial cost of the acquired assets. The Company allocated the acquisition cost between an intangible asset of $3.4 million and a non-current prepaid inventory of $85,000 as of December 31, 2012, both of which are reflected in other non-current assets in the accompanying Consolidated Balance Sheets. The cost is amortized over the 10-year life of the 2009 R-Tech Agreement, which the Company believes approximates the useful life of the underlying rights and data. Amortization expense was approximately $341,000 for each of the years ended December 31, 2012 and 2011 and 2010. The annual amortization expense will be approximately $341,000 through April 2019. On March 22, 2011, the Company entered into a license agreement with R-Tech for unoprostone isopropyl, or the 2011 R-Tech Agreement, expanding the Company’s development and commercialization rights as well as its territories beyond their previously agreed territory of the United States and Canada to the rest of the world, with the exception of Japan, Korea, Taiwan and the People’s Republic of China. The Company is now evaluating the opportunities to obtain an appropriate label in the E.U. and other European countries, and the timing of seeking reauthorization in those countries to commercialize unoprostone isopropyl. The Company has made payments to R-Tech of $6.0 million, which is reflected in other non-current assets in the accompanying Consolidated Balance Sheets, and may be required to pay up to $100.0 million in additional milestone payments to R-Tech based on the achievement of specified development and commercialization goals. The Company will be responsible for all development, regulatory, and commercialization activities. The Company is amortizing the $6.0 million over the 10-year life of the license agreement, which the Company believes approximates the useful life of the underlying rights and data. Amortization expense was approximately $613,000 for each of the years ended December 31, 2012 and 2011 and 2010, respectively. The annual amortization expense will be approximately $613,000 through March 2021.

Accrued Expenses

12 Months Ended

Dec. 31, 2012

Accrued Expenses [Abstract]

Accrued Expenses

7.Accrued Expenses

Accrued expenses consist of the following as of:


		December 31,
(In thousands)		2012		2011
Research and development costs	$	6,662	$	5,622
Employee compensation		1,219		1,607
Selling and marketing costs		487		76
Legal service fees		830		1,955
RESCULA milestones		500		3,500
Other accrued expenses		897		888
Total	$	10,595	$	13,648

Other Liabilities

12 Months Ended

Dec. 31, 2012

Other Liabilities [Abstract]

Other Liabilities

8.Other Liabilities

Other liabilities consist of the following as of:



		December 31,
(In thousands)		2012		2011
Deferred leasehold incentive	$	373	$	609
Deferred rent expense		408		514
Other liabilities		472		1,480
Total	$	1,253	$	2,603

Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

9.Commitments and Contingencies

Operating Leases

The Company leases office space in the U.S., Switzerland, Japan and the U.K., under operating leases through 2017. Total future minimum, non-cancelable lease payments under operating leases are as follows as of:


		December 31,
(In thousands of U.S. dollars)		2012
2013	$	1,275
2014		1,068
2015		1,052
2016		1,084
2017		139
Total minimum lease payments	$	4,618

Rent expense for all operating leases was $1.6 million, $1.6 million and $1.3 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Research and Development Costs

The Company routinely enters into agreements with third-party CROs to oversee clinical research and development studies provided on an outsourced basis and assist in other research and development activities. The Company generally is not contractually obligated to pay the third party if the service or reports are not provided. Total future estimated costs through 2015 under these agreements as of December 31, 2012 were approximately $3.5 million.

Any contingent liability under the agreement with Numab in the event that Numab defaults under its loan with Zurcher Kantonalbank up to a maximum potential amount of $4.8 million. As of December 31, 2012 the potential amount of payments in the event of Numab’s default was $3.8 million (see Note 10 below).

We had an outstanding purchase order commitment of approximately $5.3 million with R-Tech (see Note 10 below).

Related Party Transactions

12 Months Ended

Dec. 31, 2012

Related Party Transactions

10.Related Party Transactions

R-Tech Ueno, Ltd.

On March 7, 2003, the Company entered into an exclusive supply agreement with R-Tech. This agreement grants R-Tech the exclusive right to manufacture and supply RUG-015, a prostone compound, and lubiprostone in the U.S. and Canada, and in consideration for such right R-Tech agreed to pay the Company as follows: $1.0 million upon execution of the agreement, $2.0 million upon commencement of the first phase 2 lubiprostone trial, $3.0 million upon commencement of the first phase 2 RUG-015 trial and $2.0 million upon commencement of the earlier of a second phase 2 or a first phase 3 RUG-015 trial. Upon execution of the agreement, the Company had already commenced phase 2 clinical trials for RUG-015 and lubiprostone, which resulted in an immediate payment of $6.0 million – $1.0 million for the agreement execution, $2.0 million for the commencement of the first phase 2 lubiprostone trial, and $3.0 million for the commencement of the first phase 2 RUG-015 trial. The Company evaluated the $6.0 million in cash receipts from R-Tech and determined the payments were made for the exclusive right to supply inventory to the Company and determined that the amounts should be deferred until commercialization of the drugs begins since this is the point at which the underlying services would commence. Management also was unable to adequately assign value between the two compounds based on the information available to the Company and determined that the full $6.0 million deferred amount would be amortized over the contractual life of the relationship which was equivalent to the estimated commercialization periods of both RUG-015 and lubiprostone (estimated to be through December 2020).

During the year ended December 31, 2005, the Company ceased the development of RUG-015 due to less than satisfactory phase 2 results and the Company’s Board of Directors approved the Company’s decision to discontinue the development of RUG-015. In addition to the Company’s Board of Directors, R-Tech also formally approved the abandonment of RUG-015, which was a requirement in the supply agreement terms. Because the Company was unable to assign value to the compounds at the time the agreement was executed and the $6.0 million was received from R-Tech, the full $6.0 million remained deferred at the abandonment of RUG-015.

The abandonment of RUG-015 changed the amortization period of the $6.0 million deferred revenue to the commercialization period of AMITIZA, which began in April 2006. The Company has recognized revenue of $419,000 for the years ended December 31, 2012, 2011 and 2010, which is recorded as contract revenue. During the years ended December 31, 2012, 2011 and 2010, the Company purchased from R-Tech approximately $1.4 million, $72,000, and $344,000, respectively, of clinical supplies under the terms of this agreement. Commercial supplies of AMITIZA in the U.S. are subject to a three-party agreement among the Company, R-Tech and Takeda and are not reflected in the Company’s financial statements.

On June 24, 2005, the Company entered into a 20-year exclusive manufacturing and supply agreement with R-Tech to manufacture and supply lubiprostone for clinical and commercial supplies within Europe. In consideration of the exclusive rights, R-Tech paid the Company $2.0 million prior to the execution of the agreement on March 31, 2005. Management has determined that the amount should be deferred until such time as the commercial benefit to R-Tech can be realized. As lubiprostone has not yet been commercialized throughout Europe, the $2.0 million has been recorded as non-current deferred revenue as of December 31, 2012 and 2011. During the years ended December 31, 2012, 2011 and 2010, the Company purchased approximately $124,000, $125,000 and $110,000, respectively, of commercial supplies of lubiprostone from R-Tech in anticipation of a commercial launch in Europe.

On September 7, 2006, the Company’s Board of Directors approved an agreement which amends the exclusive manufacturing agreement with R-Tech. This agreement allows the Company to elect a back-up supplier for the supply of drug substance and drug product. In addition, the agreement provides that R-Tech shall maintain at least a six-month inventory of drug substance and at least a six-month inventory of intermediate drug product. The Company had no clinical supply purchases from a back-up supplier in 2012, 2011 or 2010.

On October 4, 2006, the Company entered into a two-year exclusive clinical manufacturing and supply agreement with R-Tech for two of its drug compounds, cobiprostone and SPI-017. Under the terms of this agreement, R-Tech agreed to manufacture and supply the necessary drug substance and drug product for the purpose of clinical development. Pricing for clinical supplies will be determined on a batch-by-batch basis and shall not exceed a certain mark-up percentage. Unless this agreement is terminated by mutual written consent within 90 days of expiration, it will automatically be renewed for additional two year terms. During the year ended December 31, 2010, the Company purchased from R-Tech $48,000 of clinical supplies under the terms of this agreement. There were no clinical supplies purchased in 2012 or 2011.

In February 2009, the Company entered into an exclusive manufacturing and supply agreement with R-Tech under which the Company granted R-Tech the exclusive right to manufacture and supply lubiprostone to meet its commercial and clinical requirements in Asia, Australia and New Zealand. In consideration, R-Tech made an upfront payment of $250,000 and $500,000 in milestone payments for the regulatory approval of lubiprostone in Japan. R-Tech is obligated to pay $250,000 upon the commercial launch in Japan, which occurred in November 2012. The $250,000 will be amortized over the life of the agreement. In addition, R-Tech is required to maintain at least a six-month supply of lubiprostone and a three-month supply of the active ingredient used in manufacturing lubiprostone as a backup inventory. During the years ended December 31, 2012, 2011 and 2010, the Company purchased approximately $3.1 million, $166,000 and $267,000, respectively, of commercial supplies of lubiprostone from R-Tech under this agreement. During the year ended December 31, 2012, the Company purchased approximately $10,000 of clinical supplies from R-Tech under this agreement. There were no such clinical supplies purchases in 2011 and 2010 from R-Tech under this agreement.

We have also made purchases for other research and development services during the years ended December 31, 2012, 2011, and 2010 of approximately $466,000, $104,000 and $69,000, respectively.

In 2009 and 2011, the Company entered into two agreements with R-Tech to acquire rights to RESCULA globally except the R-Tech Territory. Under the terms of the agreements, the Company holds the exclusive rights to commercialize RESCULA for its approved indication and any new indication developed by the Company, and has the right of first refusal to commercialize any additional indications for which unoprostone isopropyl is developed by R-Tech. The Company is solely responsible for the development, as well as regulatory and commercialization activities and expenses, for RESCULA and R-Tech is exclusively responsible for the supply of RESCULA to the Company. The terms of these agreements are described in Note 6 above.

The Company recorded the following expenses under all of its agreements with R-Tech:


		Year Ended December 31,
(In thousands)		2012		2011		2010
Clinical supplies	$	1,450	$	72	$	392
Other research and development services		466		104		69
Commercial supplies		3,288		155		376
	$	5,204	$	331	$	837


		Year Ended December 31,
(In thousands)		2012		2011
Deferred revenue, current	$	479	$	433
Deferred revenue, non-current		5,386		5,063
	$	5,865	$	5,496

R-Tech has informed the Company that it is relocating its manufacturing facility for unoprostone isopropyl beginning October 2012 and will not be able to manufacture and supply unoprostone isopropyl for up to 18 months. R-Tech has designated another facility in Japan but such facility will need to be inspected by the FDA in 2013 before it can manufacture unoprostone isopropyl. In order to mitigate this risk, the Company placed an order of $5.3 million to cover this supply period based on Company forecasts for the launch of RESCULA in the U.S., R-Tech commenced delivery of that order to the Company in the first quarter of 2013

Drs. Ryuji Ueno and Sachiko Kuno, are married to each other and, directly or indirectly, own the majority of the stock of R-Tech Drs. Ueno and Kuno also are controlling stockholders of the Company. Dr. Ueno is the Company’s chief executive officer and chairman of the Board of Directors.

Numab AG

In September 2011, the Company entered into a Loan Guarantee and Development Agreement, or Numab Agreement, with Numab AG, or Numab, of Wadenswil, Switzerland. Numab is considered a related party as a result of an ownership interest by one of our executive officers. Under the terms of the Numab Agreement the Company will provide Numab with up to CHF 5.0 million, approximately $5.5 million as of the closing date, as collateral and will serve as guarantor for a loan to Numab from a third party. The Company may name up to four targets against which Numab will use their proprietary technology to discover high-affinity antibodies and to develop these to an investigational new drug ready stage. Numab is eligible for full time equivalent based payments and discovery success dependent fees. Any success dependent fees will result in a corresponding reduction in the amount of the available guarantee. In February 2012, the Company entered into a Master Lease Agreement, or Lease Agreement, with Numab whereby the maximum collateral of CHF 5.0 million is reduced by the purchase cost of any equipment leased to Numab. As of December 31, 2012, equipment with a purchase cost of CHF 544,000, approximately $595,000, as of the closing date, was leased to Numab thus reducing the maximum collateral and loan guarantee to CHF 4.5 million. Monthly rental payments are received under the terms of the lease. As of December 31, 2012, the collateral of CHF 3.5 million has been deposited by the Company and Numab has utilized CHF 3.0 million of its CHF 4.5 million loan. In the first quarter of 2013, Numab reported that it had met one of the success criteria for development of our named target; this will result in the Company paying a success fee of CHF 3.0 million and will also reduce 90% of the loan guarantee. During 2012 in reviewing the amount outstanding of the loan, the Company recorded a liability of $1.2 million in collateral callable to meet a potential loan default by Numab. Following the reported success of the Company’s named target, the default provision has been released and full provision for the success fee has been made during 2012 as we considered it probable the success criteria would be met. The company has decided to no longer pursue the further development of the target. Numab and the Company will begin discussions in light of this decision.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph b
-Article 3A

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Article 4

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-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.

+ Details

Notes Payable

12 Months Ended

Dec. 31, 2012

Notes Payable [Abstract]

Notes Payable

11.Notes Payable

In November 2010, SPL entered into a ¥1,000,000,000, approximating $11.6 million as of the closing date, secured term loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd, or the Bank. The loan agreement provides for the extension of credit for the period of one year that can be renewed annually upon the agreement of the Company, SPL and the Bank. The loan was renewed in November 2012. Borrowings may be used to finance research and development activities, for working capital needs and for the general corporate purposes of SPL. The loan bears annual interest based on the three-month Tokyo Interbank Offer Rate, or TIBOR, plus 1% and is reset quarterly. The interest rate at December 31, 2012 was 1.31%. The outstanding loan balances included in the accompanying Consolidated Balance Sheets were $11.6 million and $12.9 million as of December 31, 2012 and 2011, respectively. In connection with the loan agreement, the Company and the Bank executed a guarantee agreement which provides full guarantee by the Company on behalf of SPL’s obligation to the Bank. The loan agreement includes representations, covenants, and events of default customary for financing transactions of this type. Additionally, the Company agreed to maintain an amount of collateral that would not fall below 90.0% of the initial balance throughout the term of the loan. The Company deposited $14.9 million with the Bank and the deposit bears annual interest of 0.25%, which is recorded as restricted cash, current in the accompanying Consolidated Balance Sheets as of December 31, 2012 and 2011. Following the loan renewal in November 2012, and due to the short-term maturity of the facility, the Company estimated that the carrying value approximated the fair value at December 31, 2012.

Subordinated Unsecured Promissory Notes

In connection with the SAG acquisition Ambrent issued a subordinated unsecured promissory note, or notes, to the Ueno Trust and Kuno Trust. Each of the notes was issued with an initial principal balance of approximately $25.9 million, or approximately $51.9 million in the aggregate. The interest rate for the notes is equal to the per annum rate of interest determined on the basis of the sum of London Interbank Offered Rate, or LIBOR, plus 4.0%, and will be reset every six months on December 1st and June 1st of each year. The interest rate beginning December 1, 2012 is 4.5%.

The notes provide for a semi-annual repayment schedule of interest and principal over a seven-year period on each June 1st and December 1st, provided that, until December 1, 2012, all accrued and unpaid interest will not be paid in cash and will instead be added to the principal balance of the notes, and Ambrent will make only two scheduled principal payments on December 1, 2011 and December 1, 2012. In November 2011, Ambrent made the first principal payment of $7.5 million. In November 2012, Ambrent made the second principal payment of $7.5 million. Interest paid-in kind was $2.2 million for the year ended December 31, 2012.

The notes can be prepaid at any time without penalty. In addition, the notes provide for a mandatory prepayment (i) in full in the event of an acquisition by an unaffiliated third party in an all-cash acquisition of all of the issued and outstanding shares of capital stock of the Company or (ii) either in full or in part in certain change of control transactions involving the Company where an unaffiliated third party acquires a majority of the Company’s voting stock.

Due to changes in LIBOR rates the Company has estimated the fair value of the notes payable and this is shown in the table below.

Notes payable at their carrying amount and fair value consist of the following:


		Fair Value		Carrying Value
		December 31,		Year Ended December 31,
(In thousands)		2012		2012		2011
Loan agreement, The Bank of Tokyo-Mitsubishi UFJ, Ltd	$	11,600	$	11,600	$	12,900
Promissory notes, Sellers of SAG		42,072		41,251		46,727
	$	53,672	$	52,851	$	59,627

Notes payable, current				19,129		20,400
Notes payable, non-current				33,722		39,227
			$	52,851	$	59,627

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Collaboration And License Agreements

12 Months Ended

Dec. 31, 2012

Collaboration And License Agreements [Abstract]

Collaboration And License Agreements

12.Collaboration and License Agreements

Abbott license and commercialization and supply agreement

In February 2009, the Company entered into the Abbott Agreement to develop and commercialize lubiprostone for the treatment of CIC in Japan. Additionally, the agreement grants Abbott the right of exclusive negotiation to any additional indications for which lubiprostone is developed in Japan under all relevant patents, know-how and trademarks. Under the terms of the Abbott Agreement, payments to the Company include a non-refundable upfront payment and non-refundable development and commercial milestone payments based on achieving specified development, regulatory and sales goals.

The collaboration efforts under the agreement are governed by two committees consisting of an equal number of representatives from both parties. The joint commercialization and steering committee oversees commercialization-related activities and resolves any conflicts arising from a joint development committee, which oversees the development-related activities in Japan.

The Company is required to fund and complete all the development work including additional clinical studies required to obtain regulatory approval for the treatment of CIC in Japan. The Company owns all the rights covered under the regulatory filings.

Abbott is required to fund and undertake all commercialization efforts including pre-launch and post-launch marketing, promotion and distribution. Abbott is required to maintain the number of sales staff and the estimated level of annual net sales based on the commercialization plan to be developed and approved by the joint commercialization and steering committee described above.

To date, the Company has received a total of $37.5 million in up-front and development milestone payments under this agreement, including a $15.0 million development milestone payment, received in December 2012, for the first commercial sale of AMITIZA at dosage strength of 24 micrograms in Japanese adults, as well as $10.0 million and $12.5 million in up-front and development milestone payments, respectively, in 2009. Under the Abbott Agreement the Company could receive additional milestone payments based on achieving other specified development and commercialization goals although there can be no assurance that the Company will receive any such payments.

The Company applies a proportional-performance model using the percentage-of-completion method of revenue recognition for cash flows associated with research and development deliverables under the Abbott Agreement, unless the Company determines that the milestone is substantive where is recognized when due and collection can be reasonably assured. The Company determined that the milestone due on first commercial sale was a substantive milestone. The following table summarizes the cash streams and related revenue recognized or deferred for this agreement:


		Cash Received Through December 31,		Revenue Recognized for the Year Ended December 31,						Accounts Receivable for the Year Ended December 31,		Foreign Currency		Amount Deferred at December 31,
(In thousands)		2012		Through 2010		2011		2012		2012		Effects		2012
Collaboration revenue:
Up-front payment associated with the Company's
obligation to participate in joint committees	$	846	$	85	$	52	$	52	$	-	$	(68)	$	725

Research and development revenue:
Up-front payment - remainder	$	9,154	$	8,583	$	520	$	199	$	-	$	(148)	$	-
Development milestone payment		27,500		11,901		697		15,157		-		(255)	$	-
Total	$	36,654	$	20,484	$	1,217	$	15,356	$	-	$	(403)	$	-


Product sales revenue:	$	4,924	$	-	$	-	$	5,023	$	99	$	-	$	-

Takeda collaboration and license agreement

In October 2004, the Company entered into the Takeda Agreement to exclusively co-develop, commercialize and sell products that contain lubiprostone for gastroenterology indications in the United States and Canada. On February 1, 2006, the Company entered into the Supplemental Takeda Agreement, which supplemented the responsibilities of both the Company and Takeda for the co-promotion of AMITIZA and clarified the responsibilities and funding arrangements for other marketing services to be performed by both parties. Payments to the Company under these agreements include a non-refundable upfront payment, non-refundable development and commercial milestone payments, reimbursement of certain development and co-promotion costs and product royalties. The provision in the Supplemental Takeda Agreement concerning the co-promotion reimbursement for the Company’s sales force expired in May 2011 and the reimbursement terms of the Takeda Agreement apply.

The Company has received a total of $150.0 million in upfront and development milestone payments through December 31, 2012 under these agreements. Subject to future development and commercial milestones, the Company is potentially entitled to receive additional development milestone and commercial milestone payments under the Takeda Agreement, although there can be no assurance that the Company will receive any such payments.

The following table summarizes the cash streams and related revenue recognized or deferred under the Takeda Agreement, which are described in more detail below:


		Cash Received Through December 31,		Revenue Recognized for the Year Ended December 31,						Accounts Receivable for the Year Ended December 31,		Amount Deferred at December 31,
(In thousands)		2012		Through 2010		2011		2012		2012 (1)		2012
Collaboration revenue:
Up-front payment associated with
the Company's obligation to
participate in joint committees	$	2,375	$	905	$	147	$	147	$	-	$	1,176

Research and development revenue:
Up-front payment - remainder	$	17,624	$	17,624	$	-	$	-	$	-		-
Development milestones		130,000		130,000		-		-		-		-
Reimbursement of research and
development expenses		104,653		92,230		8,032		6,189		2,047		249
Total	$	252,277	$	239,854	$	8,032	$	6,189	$	2,047	$	249

Product royalty revenue	$	225,152	$	147,114	$	41,517		50,696	$	14,175	$	-

Co-promotion revenue	$	28,613	$	22,438	$	3,378	$	3,576	$	779	$	-

(1)Includes billed and unbilled accounts receivable.

Upon execution of the Takeda Agreement, the Company was required to complete several deliverables, which Takeda was responsible to fund. The following are the required deliverables of the Company, along with the related contractual cash flows from Takeda and the associated obligations and performance period of the Company relating to research and development revenue:

Upon receipt of the $20.0 million upfront payment, the Company deferred approximately $2.4 million to be recognized using the time-based model over the performance period of the participation in various joint committee meetings. The Company expects its participation on all committees to continue throughout the term of the Takeda Agreement. During each of the years ended December 31, 2012, 2011 and 2010, the Company recognized approximately $147,000 of this deferred amount as collaboration revenue on the Consolidated Statements of Operations and Comprehensive Income (Loss). The related deferred revenue as of December 31, 2012 and 2011 was approximately $1.2 million and $1.3 million, respectively.

The Company granted Takeda an exclusive license of lubiprostone to co-develop, commercialize, and sell products for gastroenterology indications in the U.S. and Canada. There are no defined contractual cash flows within the Takeda Agreement for the grant of this license, but the Company did receive a non-refundable upfront payment of $20.0 million upon executing the Takeda Agreement. The license was granted to Takeda on October 29, 2004 and will expire when the Takeda Agreement expires or is terminated. After the commercial launch in 2006, Takeda has paid the Company pre-determined royalties on net revenues on a quarterly basis for the products sold by Takeda during the term of the Takeda Agreement. The level of royalties is tiered based on the net sales recognized by Takeda. The Company has recorded product royalty revenue of approximately $50.7 million, $41.5 million and $40.3 million for the years ended December 31, 2012, 2011 and 2010, respectively. This revenue is recorded as product royalty revenue in the Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company has provided development work necessary for an NDA submission to the FDA for the treatment of CIC and IBS-C indications. Takeda funded the initial $30.0 million of development costs, the Company was obligated to fund the first $20.0 million in excess of the initial $30.0 million funded by Takeda and the two parties are to equally share any required development costs in excess of $50.0 million. Although there was no defined performance period for this development work, the period to perform the work would not exceed the term of the Takeda Agreement. In January 2006, the Company received approval for its NDA for AMITIZA to treat CIC and completed and submitted the supplemental NDA for IBS-C to the FDA in June 2007.

The Company initially deferred the residual amount of the $20.0 million upfront payment totaling approximately $17.6 million, development milestone payments received totaling $50.0 million, and reimbursement of the initial $30.0 million of research and development costs for the development of AMITIZA for CIC and IBS-C indications. These deferred amounts were applied towards the unit of accounting that combines the participation in the joint development committee and the development of CIC and IBS-C and was recognized over the performance period of developing the CIC and IBS-C NDA submissions. The Company completed the development of the CIC and IBS-C in June 2007 and filed an sNDA for IBS-C. This was the culmination of the performance period. In June 2007, the Company also recognized as revenue, in full, $30.0 million from Takeda upon the filing of the sNDA for AMITIZA to treat IBS-C. The Company received a $50.0 million development milestone from Takeda as a result of the FDA’s approval on April 29, 2008 of the sNDA for IBS-C in women aged 18 years and older and recognized the payment as research and development revenue during the year ended December 31, 2008.

During 2006, the joint commercialization committee granted approval for the Company and Takeda to begin three new studies related to funding arrangements discussed in both the Takeda Agreement and the Supplemental Takeda Agreement. The following are the three additional deliverables of the Company, along with the related contractual cash flows from Takeda and the associated obligations and performance period of the Company, when the three studies were agreed upon:

The Company is obligated to perform studies in connection with changes to labeling for CIC. Takeda is obligated to fund 70.0% of the labeling studies and the Company is obligated to fund the remaining 30.0%. There is no defined performance period, but the performance period will not exceed the term of the Takeda Agreement.

The Company is obligated to perform studies for the development of an additional indication for OIC. Takeda is obligated to fund all development work up to a maximum aggregate of $50.0 million for each additional indication and $20.0 million for each new formulation. If development costs exceed these amounts, Takeda and the Company shall equally share such excess costs. There is no defined performance period, but the performance period will not exceed the term of the Takeda Agreement. The Company decided to conduct one additional phase 3 efficacy study in order to submit an sNDA for the OBD indication. In February 2012, the Company announced that lubiprostone met the primary endpoint in a phase 3 clinical trial for the treatment of OBD in patients with chronic, non-cancer pain, excluding those taking methadone.

·	The Company is obligated to perform all development work necessary for phase 4 studies, for which Takeda is obligated to fund all development work. There is no defined performance period, but the performance period will not exceed the term of the Supplemental Takeda Agreement.

The Company has assessed these required deliverables to determine which deliverables are considered separate units of accounting. As a result of the Company and Takeda agreeing to perform and fund these studies simultaneously, the Company determined that there is no objective and reliable evidence to determine the fair value for each of the studies. Accordingly, the Company has combined these three required deliverables as a single unit of accounting. All cash payments from Takeda related to these three deliverables are deferred upon receipt and recognized over the estimated performance period to complete the three studies using the time-based model. During the years ended December 31, 2012, 2011 and 2010, the Company recognized approximately $4.4 million, $8.0 million and $5.5 million related to these three deliverables as research and development revenue in the Consolidated Statements of Operations and Comprehensive Income (Loss), respectively.

On February 1, 2006, the Company entered into the Supplemental Takeda Agreement, which amended the responsibilities of both the Company and Takeda for the co-promotion of AMITIZA and clarified the responsibilities and funding arrangements for other marketing services to be performed by both parties.

The reimbursement of co-promotion costs under the Supplemental Takeda Agreement expired on May 31, 2011. Co-promotion costs after May 31, 2011 were reimbursed under the Takeda Agreement. The previous reimbursement terms of the Supplemental Takeda Agreement were based on a per diem amount by the number of our sales representatives in the field promoting AMITIZA. After May 2011, the Company was reimbursed on actual details presented to health care prescribers. The Company has recognized approximately $3.6 million, $3.4 million and $4.4 million of revenues for the years ended December 31, 2012, 2011 and 2010, respectively, reflecting these co-promotion reimbursements, which is recorded as co-promotion revenue in the Consolidated Statements of Operations and Comprehensive Income (Loss).

The Company views the deliverables under the Supplemental Takeda Agreement as economically independent of those in the Takeda Agreement.

The Company has assessed these required deliverables to determine which deliverables are considered separate units of accounting. The Company determined that its sales force and miscellaneous marketing activities are treated as separate units of accounting. The Company is recognizing the cost reimbursements received for these deliverables as co-promotion revenues when services are performed and the reimbursement payments are due under the Supplemental Takeda Agreement.

Numab AG

On September 8, 2011, the Company entered into the Numab Agreement with Numab, under which the Company will have access to Numab’s proprietary technology for the discovery of high-affinity antibodies against certain selected targets. The Company will be responsible for clinical development and will have exclusive commercial rights to any biologic products successfully developed and commercialized in the course of the collaboration. The Company has agreed to provide Numab with up to CHF 5.0 million as collateral for a loan to Numab from a third party. The Company may name up to four targets against which Numab will use their technology to discover high-affinity antibodies and will develop these to an investigational new drug, or IND, -ready stage. Numab is eligible for payments based on an agreed rate for the number of full time employees assigned to the development project and discovery success-dependent fees. The Company has decided to no longer pursue the further development of the target. Numab and the Company will begin discussions in light of this decision. See Note 10 above.

Stockholders' Equity

12 Months Ended

Dec. 31, 2012

Stockholders' Equity [Abstract]

Stockholders' Equity

13.Stockholders’ Equity

Capital Structure

On August 30, 2012, the Company announced that its majority stockholder and only holder of its class B common stock, S&R Technology Holdings, LLC, or S&R, had converted effective as of August 29, 2012, all of its 26,191,050 issued and outstanding shares of the Company’s class B common stock into shares of the Company’s class A common stock. S&R held all of the Company’s class B common stock. Class B common stock holders were entitled to ten votes per share while class A common stock holders were entitled to one vote per share. The Company’s Articles of Incorporation permit the holder of class B common stock to convert the shares of class B common stock into shares of class A common stock at any time and on a one-for-one basis. As a result of the conversion, there is now only a single class of common stock, class A common stock, outstanding, totaling 41,970,364 shares as of March 7, 2013, each of which is entitled to one vote per share.

Treasury Stock

On December 11, 2008, the Company announced a stock repurchase program under which the Company is authorized to purchase up to $10,000,000 million of its class A common stock from time to time in open-market transactions. On September 8, 2011, the Company’s Board of Directors authorized the repurchase of up to an aggregate of $2.0 million of the Company’s class A common stock out of the $10.0 million authorized by the Board of Directors on December 9, 2008. On November 2, 2012, the Board of Directors authorized the increase of such amount of repurchase to up to an aggregate of $5.0 million. In 2011, the Company repurchased 186,987 shares of its class A common stock under this program at a cost of $700,042. In 2012, the Company repurchased 270,043 shares of its class A common stock under this program at a cost of $1.3 million. All shares of class A common stock purchased in 2012 were purchased in August, September, October, November and December. These shares are not retired and are recorded at cost. The Company did not repurchase any of our equity securities in 2010.

Stock Option Plan

On February 15, 2001, the Company adopted the 2001 Stock Incentive Plan, or the 2001 Incentive Plan, in order to provide common stock incentives to certain eligible employees, officers and directors, consultants and advisors of the Company. The Board of Directors administers the 2001 Incentive Plan and has sole discretion to grant options. On September 1, 2003, the Board of Directors amended the 2001 Incentive Plan to allow for a maximum of 8.5 million shares of class A common stock to be issued under all awards, including incentive stock options under the 2001 Incentive Plan. In 2006, the Board of Directors determined no further options would be granted under this plan.

On June 5, 2006, the Company’s Board of Directors approved a 2006 Stock Incentive Plan, which has been amended and restated, or the 2006 Incentive Plan, and reserved 8,500,000 shares of class A common stock for issuance under that plan. At December 31, 2012, a total of 5,248,507 shares were available for future grants under the 2006 Incentive Plan. Option awards under the 2006 Incentive Plan are generally granted with an exercise price equal to the closing market price of the Company’s stock at the date of grant and they generally vest over four years and have ten-year contractual terms.

On October 18, 2007, the Company’s Board of Directors approved an amendment to the 2006 Incentive Plan. The 2006 Incentive Plan includes an “evergreen” provision by which the number of shares of the Company’s class A common stock available for issuance under the 2006 Incentive Plan increases automatically on the first day of each calendar year by a number equal to 5.0% of the aggregate number of shares of the Company’s class A common stock and class B common stock outstanding on such date, or such lesser number as the Board of Directors may determine. The 2006 Incentive Plan will provide that the number of shares of class A common stock included in each annual increase will be 500,000, or such lesser number as the Board of Directors may determine. The Board of Directors determined that the amount of the increase in the shares available for issuance under the 2006 Incentive Plan as of January 1, 2009, 2010, 2011 and 2012 pursuant to the “evergreen” provision, would be zero.

On October 7, 2009, the Board of Directors of the Company adopted a new compensation program, under the 2006 Incentive Plan, for its non-employee directors and approved a new form of stock option agreement to be used for future stock option awards to non-employee directors. According to the plan, the independent directors will receive an annual grant of 20,000 stock options on the date of each annual meeting of stockholders. Additionally, the directors received an initial grant of 30,000 stock options upon the adoption of the plan.

On May 2, 2011, the Board of Directors of the Company amended the previously approved annual stock option grants for its non-employee directors to an annual grant of 30,000 stock options on the date of each annual meeting of stockholders. Such grants would consist of 60.0% service based options and 40.0% market condition based options.

A summary of the employee stock option activity for the year ended December 31, 2012 under the Company’s 2001 Incentive Plan is presented below.


	Shares		Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2011	190,400	$	10.00
Options expired	(34,000)		10.00
Options outstanding, December 31, 2012	156,400		10.00	3.33	$	-
Options exercisable, December 31, 2012	156,400		10.00	3.33	$	-

A summary of the employee stock option activity for the year ended December 31, 2012 under the Company’s 2006 Incentive Plan is presented below:


	Shares		Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2011	3,402,380	$	4.75
Options granted	502,750		6.30
Options exercised	(79,525)		3.92
Options forfeited	(432,506)		4.51
Options expired	(141,606)		9.75
Options outstanding, December 31, 2012	3,251,493		4.83	8.26	$	1,820,758
Options exercisable, December 31, 2012	1,243,479		5.05	7.70	$	743,057

During the year ended December 31, 2011, the Company made a grant of time-based and market condition options to all eligible employees and independent directors. The aggregate options totaled 2,572,860 shares of the Company’s class A common stock, consisting of 873,352 shares of time-based options and 1,699,508 shares of market condition options. The market condition options (a) vest in certain percentages based on the attainment of specific stock price targets over a 30-day trading period so long as the individual is in continuous service with the Company on each such date, (b) have an exercise price equal to the closing price of the Company's class A common stock on the NASDAQ Global Market on the date of grant, and (c) must vest within a term of four years from such date. These options must be exercised within a term of ten years from the date of grant. The percentages and target prices are: 40.0% at $8.00 per share, 40.0% at $12.00 per share and 20.0% at $16.00 per share. The Company determined that the market condition options should be classified as equity instruments, and selected, in accordance with GAAP, a lattice option-pricing model to estimate the fair value of those options. A lattice option-pricing model produces an estimated fair value of the option based on the assumed changes in the price of the underlying share over successive periods of time. No market condition options were granted during 2012.

The time-based stock options (a) vest in equal annual installments over the four-year period commencing on the first anniversary of the date of grant (i.e., the first 25.0% of the stock option grant would vest on the first anniversary of the date of grant) so long as the individual is in continuous service with the Company on each such date and (b) have an exercise price equal to the closing price of the Company's class A common stock on the NASDAQ Global Market on the date of grant. These options must be exercised within a term of ten years from such date.

The weighted average grant date fair value of options granted during the years ended December 31, 2012, 2011 and 2010 were $6.30, $1.81 and $2.05, respectively. As of December 31, 2012, approximately $2.3 million of total unrecognized compensation costs, net of estimated forfeitures, related to non-vested awards are expected to be recognized over a weighted average period of 2.48 years. When an option is exercised, the Company issues a new share of class A common stock.

The Company granted 510,000 stock options with an exercise price of $5.85 per share to non-employees in August 2005 under the 2001 Incentive Plan. As of December 31, 2012 and 2011, 450,000 options were outstanding and exercisable. These non-employee stock options vested immediately and have a weighted average exercise price per share of $5.85 and $5.85 and remaining contractual life of 2.33 and 3.33 years, respectively, as of both December 31, 2012 and 2011.

Employee Stock Purchase Plan

On June 5, 2006, the Company’s Board of Directors approved a 2006 Employee Stock Purchase Plan, or ESPP, and reserved 4,250,000 shares of class A common stock for issuance under the ESPP. As of December 31, 2011, the Board has approved 500,000 shares of class A common stock for the ESPP. The ESPP is non-compensatory and is intended to qualify as an Employee Stock Purchase Plan as defined in Section 423 of the Internal Revenue Code of 1986. Under this plan, eligible employees may purchase common stock through payroll deductions of up to 10.0% of compensation during the plan period. The purchase price per share is 95.0% of market price at the end of each plan period, which is generally three months. A total of 3,550 and 3,363 shares of common stock were purchased under the ESPP during the years ended December 31, 2012 and 2011, respectively. The Company received approximately $20,000, $13,000 and $14,000 upon purchase of shares under the ESPP for the years ended December 31, 2012, 2011 and 2010, respectively.

Dividends

Amounts paid as dividends by SAG, prior to being acquired by the Company, together with the purchase consideration for acquiring SAG are recorded as dividends within the Consolidated Statement of Changes in Stockholders’ Equity.

- 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
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-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
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-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 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-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 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

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

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 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 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Income Taxes

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Income Taxes

14.Income Taxes

Income (loss) before income taxes is as follows:


		Year Ending December 31,
		2012		2011		2010
U.S.	$	8,580	$	(9,670)	$	(3,819)
Foreign		(828)		(12,244)		499
	$	7,752	$	(21,914)	$	(3,320)

The provision (benefit) for income taxes consists of the following for the three years ended December 31:


			Year Ended December 31,
(In thousands)			2012			2011			2010
Current tax provision (benefit):
U.S. Federal	$	1,431		$	(597)		$	(1,063)
U.S. State		658			(194)			128
Foreign		51			550			469
Total current tax provision (benefit)		2,140			(241)			(466)

Deferred provision (benefit):
U.S. Federal		1,248			(1,369)			(44)
U.S. State		(193)			385			(56)
Foreign		(279)			(3,383)			1
Total deferred provision (benefit)		776			(4,367)			(99)

Total income tax provision (benefit)	$	2,916		$	(4,608)		$	(565)

Deferred tax liabilities, net, consist of the following as of December 31:


		December 31,
		2012		2011
(In thousands)
Deferred tax assets:
Foreign net operating loss carry-forwards	$	5,132	$	5,638
U.S. net operating loss carry-forwards		100		903
Deferred revenue		2,431		2,547
Accrued expenses		1,316		1,043
Tax benefits on stock options		1,832		1,960
Other		388		869
Gross deferred tax assets		11,199		12,960

Deferred tax liabilities:
Property and equipment		(272)		(339)
Intangibles		(6,884)		(30,918)
Accrued expenses		-		(3)
Other		-		(167)
Gross deferred tax liabilities		(7,156)		(31,427)
Less: valuation allowance		(4,142)		(4,467)
Net deferred tax liabilities	$	(99)	$	(22,934)

The provision (benefit) for income taxes vary from the income taxes provided based on the federal statutory rate as follows for the three years ended December 31:


	Year Ended December 31,
(In thousands)	2012	2011	2010
Federal tax provision (benefit)	34.0%	34.0%	34.0%
State taxes, net of federal tax benefit	7.5%	0.4%	3.7%
General business credits	-0.5%	1.6%	18.5%
Changes in valuation allowance	-3.7%	-3.7%	-11.8%
Nondeductible expenses	1.7%	-0.2%	4.0%
Acquisition costs	0.0%	0.0%	-9.4%
Stock based compensation	12.7%	-1.9%	-4.2%
Impact of intagible transfer	-18.6%	-4.7%	0.0%
Impact of uncertain tax positions	-4.2%	-0.2%	-1.4%
Adjustment to deferred tax asset	-10.4%	0.1%	-27.9%
Impact of foreign operations	6.4%	-4.6%	19.1%
Change in tax rates	12.4%	-0.1%	-6.0%
Changes in other tax matters	0.3%	0.4%	-1.5%
	37.6%	21.1%	17.0%

At December 31, 2012 and 2011, the Company had foreign net operating loss carry-forwards of $21.0 million and $16.4 million, respectively. Approximately $10.9 million of the foreign NOLs begin to expire in December 2019, and $10.1 million of the foreign NOLs do not expire. As of December 31, 2012 and 2011, the Company had no U.S. NOLs. The U.S. had research and development credits of approximately nil and $472,000, as of December 31, 2012 and 2011, respectively.

As of December 31, 2012 and 2011, the Company had a valuation allowance on its deferred tax assets of $4.1 million and $4.5 million, respectively. The net decrease in the valuation allowance of $325,000 was due to the release of the valuation allowance in certain jurisdictions that management believes the deferred tax assets are more likely than not to be utilized. Please refer to the income tax and deferred charge policy for further description of this intercompany transaction.

Should the Company determine that it would be able to realize its deferred tax assets in the foreseeable future, an adjustment to the remaining deferred tax assets could cause a material increase to income in the period such determination is made. Significant management judgment is required in determining the period in which the reversal of a valuation allowance should occur. The Company considers all available evidence, both positive and negative, such as historical levels of income, future forecasts of taxable income and expiration periods of NOL carry forwards amongst other items in determining whether a full or partial release of a valuation allowance is warranted. The valuation allowance at December 31, 2012 and 2011 relates to deferred tax assets in the foreign jurisdictions. A partial valuation allowance was maintained on the deferred tax assets of the Company’s subsidiary in Japan based on management’s estimate of the NOL carry-forwards that will expire unused. The Company will continue to evaluate its valuation allowance position in each jurisdiction on a regular basis. To the extent the Company determines that all or a portion of its valuation allowance is no longer necessary, the Company will recognize an income tax benefit in the period such determination is made for the reversal of the valuation allowance. Once the valuation allowance is eliminated in whole or in part, it will not be available to offset the Company’s future tax provision. As of December 31, 2012, the Company does not expect to reverse any of the valuation allowance in the next twelve months.

The Company has recorded a total income tax liability of approximately $1.1 million and $1.5 million, including interest for uncertain tax positions as of December 31, 2012 and 2011, respectively. The Company expects to file income tax returns in 2013 in several states where we have recorded a liability for uncertain tax positions as of December 31, 2012. Therefore, the amount of $660,000 expected to reverse within the next twelve months has been reflected as other current liabilities and the remaining $471,000 has been recorded as other liabilities in the accompanying Consolidated Balance Sheets. The amount represents the aggregate tax effect of differences between tax return positions and the amounts otherwise recognized in the Company’s Consolidated Financial Statements. The liability for uncertain tax positions as of December 31, 2012 and 2011 mainly pertains to the Company’s interpretation of nexus in certain states related to revenue sourcing for state income tax purposes, as well as uncertain tax positions related to related party interest in foreign jurisdictions.

A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding interest and penalties, is as follows:


		Year Ended December 31,
		2012		2011		2010
Balance at January 1	$	1,226	$	1,245	$	1,200
Increases for tax positions taken during prior periods		207		22		3
Decreases in unrecognized tax benefits related to settlements with taxing authorities		(536)		(71)		-
Increases for tax positions taken during current period		82		30		42
Balance at December 31	$	979	$	1,226	$	1,245

The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision. During 2012, 2011 and 2010, the Company recorded approximately $42,000 $69,000 and $75,000, respectively, of interest related to uncertain tax positions. Other than the decrease related to the settlement of state income liabilities, no additional uncertain tax positions have been identified for which it is reasonably possible that the total amount of liability for unrecognized tax benefits will significantly increase or decrease within the next 12 months, except for recurring accruals on existing uncertain tax positions. In addition, future changes in the unrecognized tax benefits described above would have an impact on the effective tax rate.

Currently tax years 2009, 2010, 2011 and 2012 remain open and subject to examination in the major tax jurisdictions in which tax returns are filed.

- 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

Quarterly Financial Data (unaudited)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Data (unaudited) [Abstract]

Quarterly Financial Data (unaudited)

16. Quarterly Financial Data (unaudited)


		2012 Quarters Ended
(In thousands, except per share data)		December 31		September 30		June 30		March 31
Total revenues	$	34,862	$	15,496	$	16,683	$	14,446
Income (loss) from operations	$	12,966	$	(1,653)	$	(2,674)	$	(322)
Net income (loss)	$	13,532	$	(5,949)	$	(819)	$	(1,928)
Net income (loss) per share:
Basic	$	0.33	$	(0.14)	$	(0.02)	$	(0.05)
Diluted	$	0.32	$	(0.14)	$	(0.02)	$	(0.05)

		2011 Quarters Ended
(In thousands, except per share data)		December 31		September 30		June 30		March 31
Total revenues	$	14,215	$	14,372	$	14,000	$	12,174
Income (loss) from operations	$	3,609	$	(4,522)	$	(7,615)	$	(9,161)
Net income (loss)	$	2,700	$	(4,078)	$	(9,019)	$	(6,909)
Net income (loss) per share:
Basic	$	0.06	$	(0.10)	$	(0.22)	$	(0.17)
Diluted	$	0.06	$	(0.10)	$	(0.22)	$	(0.17)

Net income (loss) per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly net income (loss) per share information may not equal annual net income (loss) per share.

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details

Schedule II Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2012

Schedule II Valuation and Qualifying Accounts [Abstract]

Schedule II Valuation and Qualifying Accounts

Schedule II – Valuation and Qualifying Accounts


				Additions
		Balance at		Charged to
		Beginning		Costs and						Balance at
(In thousands)		of Year		Expenses			Deductions			End of Year
Allowance for doubtful accounts:
2010	$	-	$	-		$	-		$	-
2011	$	-	$	-		$	-		$	-
2012	$	-	$	280	(a)	$	-		$	280
Valuation allowance for deferred tax assets:
2010	$	8,584	$	1,074	(b)	$	-		$	9,658
2011	$	9,658	$	932	(c)	$	(6,123)	(c)	$	4,467
2012	$	4,467	$	1,073	(d)	$	(1,398)	(d)	$	4,142

(a)	In 2012, the increase in allowance for doubtful accounts is primarily associated to certain disputed Takeda invoices.

(b)

In 2010, the increase in valuation allowance is primarily associated with certain foreign net operating losses. This increase in the valuation allowance was based on management’s assessment that, due to changing business conditions and the limitation of tax planning strategies, the Company was not likely to fully realize these deferred tax assets.

(c)

In 2011, the net decrease in the valuation allowance of $5.2 million was due primarily to the recognition of gains in local tax jurisdictions on the transfer of certain intellectual property to SAG as well as the partial release of valuation allowances in certain jurisdictions that management believes the deferred tax assets are more likely than not to be utilized.

(d)	In 2012, the net decrease in valuation allowance of $325,000 was due primarily to the release of the valuation allowance in certain jurisdictions that management believes the deferred tax assets are more likely than not to be utilized.

Summary Of Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2012

Summary Of Significant Accounting Policies [Abstract]

Cash And Cash Equivalents

Cash and Cash Equivalents

Restricted Cash

Current And Non-current Investments

Current and Non-Current Investments

Certain Risks, Concentrations And Uncertainties

Certain Risks, Concentrations and Uncertainties

Fair Value Of Financial Instruments

Fair Value of Financial Instruments

Accounts Receivable And Unbilled Accounts Receivable

Accounts Receivable and Unbilled Accounts Receivable

Product Royalties Receivable

Product royalties receivable represent amounts due from Takeda for the Company’s royalties on sales of AMITIZA, which are based on reports obtained directly from Takeda.

Property and Equipment

Impairment of Long-lived Assets

Revenue Recognition

Product Sales Revenue

Contract Revenue

Contract revenue relates to development and consulting activities with R-Tech and is accounted for under the time-based model.

Deferred Revenue

Total deferred revenue consists of the following as of:


		December 31,
(In thousands)		2012		2011
Deferred revenue, current	$	3,700	$	3,888
Deferred revenue, non-current		7,093		7,045
	$	10,793	$	10,933
Deferred revenue to related parties, included in total deferred revenue:
Deferred revenue to related parties, current	$	479	$	433
Deferred revenue to related parties, non-current		5,386		5,063
Total	$	5,865	$	5,496

Cost of Good Sold

Cost of Goods Sold

Cost of goods sold relates to sales and distribution of the Company’s products sold by the Company.

Research and Development Expenses

General and Administrative Expenses

Selling and Marketing Expenses

Interest Income

Interest income consists of interest earned on the Company’s cash and cash equivalents and current and non-current investments.

Accrued Research and Development Expenses

Employee Stock Based Compensation

Employee Stock-Based Compensation

The assumptions used to estimate the fair value of stock options granted for the three years ended December 31, 2012 were as follows:


	Year Ended December 31,
	2012	2011	2010
Expected volatility	62% - 64%	55% - 64%	51% - 63%
Risk-free interest rate	0.76% - 1.60%	1.30% - 3.30%	1.89% - 3.24%
Expected term (in years)	5.50 - 6.25	2.10 - 6.25	5.00 - 6.25
Expected dividend yield	0%	0%	0%

Expected Dividend Yield: The Company has not paid, and does not anticipate paying, any dividends in the foreseeable future.

Employee stock-based compensation expense recorded in the Company’s Consolidated Statements of Operations and Comprehensive Income (Loss) for the three years ended December 31, 2012 was as follows:



		Year Ended December 31,
(In thousands)		2012		2011		2010
Research and development expense	$	535	$	234	$	252
General and administrative expense		1,349		964		729
Selling and marketing expense		349		172		279
Total		2,233		1,370		1,260

Employee stock-based compensation expense per basic and diluted share of common stock	$	0.05	$	0.03	$	0.03

Income Taxes

Uncertain Tax Posiitions

Uncertain Tax Positions

Currently tax years 2009, 2010, 2011 and 2012 remain open and subject to examination in the major tax jurisdictions in which tax returns are filed.

Deferred Charge

Foreign Currency

Realized and unrealized foreign currency gains or losses on assets and liabilities denominated in a currency other than the functional currency are included in net income.

Other Comprehensive Income

Segment Information

Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Summary Of Significant Accounting Policies [Abstract]

Schedule of Deferred Revenue


		December 31,
(In thousands)		2012		2011
Deferred revenue, current	$	3,700	$	3,888
Deferred revenue, non-current		7,093		7,045
	$	10,793	$	10,933
Deferred revenue to related parties, included in total deferred revenue:
Deferred revenue to related parties, current	$	479	$	433
Deferred revenue to related parties, non-current		5,386		5,063
Total	$	5,865	$	5,496

Schedule of Assumptions Used to Estimate Fair Value of Stock Options Granted


	Year Ended December 31,
	2012	2011	2010
Expected volatility	62% - 64%	55% - 64%	51% - 63%
Risk-free interest rate	0.76% - 1.60%	1.30% - 3.30%	1.89% - 3.24%
Expected term (in years)	5.50 - 6.25	2.10 - 6.25	5.00 - 6.25
Expected dividend yield	0%	0%	0%

Schedule of Employee Stock Based Compensation Expense



		Year Ended December 31,
(In thousands)		2012		2011		2010
Research and development expense	$	535	$	234	$	252
General and administrative expense		1,349		964		729
Selling and marketing expense		349		172		279
Total		2,233		1,370		1,260

Employee stock-based compensation expense per basic and diluted share of common stock	$	0.05	$	0.03	$	0.03

- 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 Income (Loss) per Share (Tables)

12 Months Ended

Dec. 31, 2012

Net Income (Loss) per Share

Computation Of Net Income (Loss) Per Share



		December 31,
(in thousands, except per share data)		2012		2011		2010
Basic net income (loss) per share:
Net income (loss)	$	4,836	$	(17,306)	$	(2,755)

Weighted average class A and B common shares
outstanding		41,660		41,839		41,848

Basic net income (loss) per share	$	0.12	$	(0.41)	$	(0.07)

Diluted net income (loss) per share:
Net income (loss)	$	4,836	$	(17,306)	$	(2,755)

Weighted average class A and B common shares
outstanding for diluted net income per share		41,660		41,839		41,848

Assumed exercise of stock options under the treasury
stock method		125		-		-
		41,785		41,839		41,848

Diluted net income (loss) per share	$	0.12	$	(0.41)	$	(0.07)

Schedule Of Potentially Dilutive Securities


	December 31,
(In thousands)	2012	2011	2010
Employee stock options	2,811	-	-
Non-employee stock options	450	-	-

Securities Excluded From Computation Of Diluted Net Loss Per Share


	December 31,
(In thousands)	2012	2011	2010
Employee stock options	596	3,595	1,554
Non-employee stock options	-	450	450

Current And Non-Current Investments (Tables)

12 Months Ended

Dec. 31, 2012

Current And Non-Current Investments [Abstract]

Current And Non-Current Available-For-Sale Investments


		December 31, 2012
				Unrealized		Unrealized
(In thousands)		Cost		Gains		Losses		Fair Value
Current:
U.S. commercial paper	$	2,499	$	-	$	-	$	2,499
Municipal securities		251		-		-		251
Certificates of deposits		500		-		-		500
Variable rate demand notes		2,785		-		-		2,785
Total	$	6,035	$	-	$	-	$	6,035

Non-current:
U.S. government securities		10,131	$	2	$	(3)	$	10,130
Certificates of deposits		3,000		-		-		3,000
Corporate bonds		1,281		-		(3)		1,278
Total	$	14,412	$	2	$	(6)	$	14,408

		December 31, 2011
				Unrealized		Unrealized
(In thousands)		Cost		Gains		Losses		Fair Value
Current:
U.S. commercial paper	$	1,997	$	3	$	-	$	2,000
U.S. government securities		3,250		-		-		3,250
Corporate bonds		7,002		8		(3)		7,007
Variable rate demand notes		12,195		-		-		12,195
Total	$	24,444	$	11	$	(3)	$	24,452

Non-current:
U.S. government securities	$	1,000	$	-	$	(2)	$	998
Total	$	1,000	$	-	$	(2)	$	998

Company's Assets Measured At Fair Value On Recurring Basis



		Fair Value Measurements at Reporting Date Using
December 31, 2012		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)		(Level 1)		(Level 2)		(Level 3)		Total
U.S. government securities	$	-	$	10,130	$	-	$	10,130
U.S. commercial paper		-		5,998		-		5,998
Municipal securities		-		1,253		-		1,253
Certificates of deposits		-		3,500		-		3,500
Corporate bonds		-		6,286		-		6,286
Money market funds		16,274		-		-		16,274
Variable rate demand notes		-		2,785		-		2,785
Total assets measured at fair value	$	16,274	$	29,952	$	-	$	46,226


		Fair Value Measurements at Reporting Date Using
December 31, 2011		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)		(Level 1)		(Level 2)		(Level 3)		Total
U.S. government securities	$	-	$	4,248	$	-	$	4,248
U.S. commercial paper		-		2,000		-		2,000
Corporate bonds		-		7,007		-		7,007
Money market funds		12,885		-		-		12,885
Variable rate demand notes		-		12,195		-		12,195
Total assets measured at fair value	$	12,885	$	25,450	$	-	$	38,335

- 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

- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References + Details

Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2012

Property and Equipment [Abstract]

Schedule of Property and Equipment


		December 31,
(In thousands)		2012		2011
Computer and office machines	$	2,598	$	2,181
Furniture and fixtures		434		438
Leasehold improvements		1,478		1,495
Total cost		4,510		4,114
Less: accumulated depreciation		(2,970)		(2,445)
Total	$	1,540	$	1,669

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2012

Accrued Expenses [Abstract]

Schedule Of Accrued Expenses


		December 31,
(In thousands)		2012		2011
Research and development costs	$	6,662	$	5,622
Employee compensation		1,219		1,607
Selling and marketing costs		487		76
Legal service fees		830		1,955
RESCULA milestones		500		3,500
Other accrued expenses		897		888
Total	$	10,595	$	13,648

Other Liabilities (Tables)

12 Months Ended

Dec. 31, 2012

Other Liabilities [Abstract]

Schedule of Other Liabilities



		December 31,
(In thousands)		2012		2011
Deferred leasehold incentive	$	373	$	609
Deferred rent expense		408		514
Other liabilities		472		1,480
Total	$	1,253	$	2,603

Commitments and Contingenciess (Tables)

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies [Abstract]

Future Minimum, Non-Cancelable Lease Payments Under Operating Leases


		December 31,
(In thousands of U.S. dollars)		2012
2013	$	1,275
2014		1,068
2015		1,052
2016		1,084
2017		139
Total minimum lease payments	$	4,618

Related Party Transactions (Tables)

12 Months Ended

Dec. 31, 2012

Expenses Under Agreements With R-Tech


		Year Ended December 31,
(In thousands)		2012		2011		2010
Clinical supplies	$	1,450	$	72	$	392
Other research and development services		466		104		69
Commercial supplies		3,288		155		376
	$	5,204	$	331	$	837

Amounts Included In Deferred Revenue Resulting From Deferral Of Upfront Payments Relating To Exclusive Supply Agreements With R-Tech


		Year Ended December 31,
(In thousands)		2012		2011
Deferred revenue, current	$	479	$	433
Deferred revenue, non-current		5,386		5,063
	$	5,865	$	5,496

Notes Payable (Tables)

12 Months Ended

Dec. 31, 2012

Notes Payable [Abstract]

Components Of Notes Payable


		Fair Value		Carrying Value
		December 31,		Year Ended December 31,
(In thousands)		2012		2012		2011
Loan agreement, The Bank of Tokyo-Mitsubishi UFJ, Ltd	$	11,600	$	11,600	$	12,900
Promissory notes, Sellers of SAG		42,072		41,251		46,727
	$	53,672	$	52,851	$	59,627

Notes payable, current				19,129		20,400
Notes payable, non-current				33,722		39,227
			$	52,851	$	59,627

Collaboration And License Agreements (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting Information [Line Items]

Cash Streams And Related Revenue Recognized Or Deferred Under Agreement


		December 31,
(In thousands)		2012		2011
Deferred revenue, current	$	3,700	$	3,888
Deferred revenue, non-current		7,093		7,045
	$	10,793	$	10,933
Deferred revenue to related parties, included in total deferred revenue:
Deferred revenue to related parties, current	$	479	$	433
Deferred revenue to related parties, non-current		5,386		5,063
Total	$	5,865	$	5,496

Abbott [Member]

Segment Reporting Information [Line Items]

Cash Streams And Related Revenue Recognized Or Deferred Under Agreement


		Cash Received Through December 31,		Revenue Recognized for the Year Ended December 31,						Accounts Receivable for the Year Ended December 31,		Foreign Currency		Amount Deferred at December 31,
(In thousands)		2012		Through 2010		2011		2012		2012		Effects		2012
Collaboration revenue:
Up-front payment associated with the Company's
obligation to participate in joint committees	$	846	$	85	$	52	$	52	$	-	$	(68)	$	725

Research and development revenue:
Up-front payment - remainder	$	9,154	$	8,583	$	520	$	199	$	-	$	(148)	$	-
Development milestone payment		27,500		11,901		697		15,157		-		(255)	$	-
Total	$	36,654	$	20,484	$	1,217	$	15,356	$	-	$	(403)	$	-


Product sales revenue:	$	4,924	$	-	$	-	$	5,023	$	99	$	-	$	-

Takeda [Member]

Segment Reporting Information [Line Items]

Cash Streams And Related Revenue Recognized Or Deferred Under Agreement


		Cash Received Through December 31,		Revenue Recognized for the Year Ended December 31,						Accounts Receivable for the Year Ended December 31,		Amount Deferred at December 31,
(In thousands)		2012		Through 2010		2011		2012		2012 (1)		2012
Collaboration revenue:
Up-front payment associated with
the Company's obligation to
participate in joint committees	$	2,375	$	905	$	147	$	147	$	-	$	1,176

Research and development revenue:
Up-front payment - remainder	$	17,624	$	17,624	$	-	$	-	$	-		-
Development milestones		130,000		130,000		-		-		-		-
Reimbursement of research and
development expenses		104,653		92,230		8,032		6,189		2,047		249
Total	$	252,277	$	239,854	$	8,032	$	6,189	$	2,047	$	249

Product royalty revenue	$	225,152	$	147,114	$	41,517		50,696	$	14,175	$	-

Co-promotion revenue	$	28,613	$	22,438	$	3,378	$	3,576	$	779	$	-

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2012

Stock Plan 2001 [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Employee Stock Option Activity


	Shares		Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2011	190,400	$	10.00
Options expired	(34,000)		10.00
Options outstanding, December 31, 2012	156,400		10.00	3.33	$	-
Options exercisable, December 31, 2012	156,400		10.00	3.33	$	-

Stock Incentive Plan 2006 [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Employee Stock Option Activity


	Shares		Weighted Average Exercise Price Per Share	Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Options outstanding, December 31, 2011	3,402,380	$	4.75
Options granted	502,750		6.30
Options exercised	(79,525)		3.92
Options forfeited	(432,506)		4.51
Options expired	(141,606)		9.75
Options outstanding, December 31, 2012	3,251,493		4.83	8.26	$	1,820,758
Options exercisable, December 31, 2012	1,243,479		5.05	7.70	$	743,057

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Income Taxes [Abstract]

Schedule of Income (Loss) Before Income Taxes


		Year Ending December 31,
		2012		2011		2010
U.S.	$	8,580	$	(9,670)	$	(3,819)
Foreign		(828)		(12,244)		499
	$	7,752	$	(21,914)	$	(3,320)

Schedule for Provision (Benefit) for Income Taxes


			Year Ended December 31,
(In thousands)			2012			2011			2010
Current tax provision (benefit):
U.S. Federal	$	1,431		$	(597)		$	(1,063)
U.S. State		658			(194)			128
Foreign		51			550			469
Total current tax provision (benefit)		2,140			(241)			(466)

Deferred provision (benefit):
U.S. Federal		1,248			(1,369)			(44)
U.S. State		(193)			385			(56)
Foreign		(279)			(3,383)			1
Total deferred provision (benefit)		776			(4,367)			(99)

Total income tax provision (benefit)	$	2,916		$	(4,608)		$	(565)

Schedule of Deferred Tax Liabilities, Net


		December 31,
		2012		2011
(In thousands)
Deferred tax assets:
Foreign net operating loss carry-forwards	$	5,132	$	5,638
U.S. net operating loss carry-forwards		100		903
Deferred revenue		2,431		2,547
Accrued expenses		1,316		1,043
Tax benefits on stock options		1,832		1,960
Other		388		869
Gross deferred tax assets		11,199		12,960

Deferred tax liabilities:
Property and equipment		(272)		(339)
Intangibles		(6,884)		(30,918)
Accrued expenses		-		(3)
Other		-		(167)
Gross deferred tax liabilities		(7,156)		(31,427)
Less: valuation allowance		(4,142)		(4,467)
Net deferred tax liabilities	$	(99)	$	(22,934)

Schedule of Income Taxes On The Federal Statutory Rate


	Year Ended December 31,
(In thousands)	2012	2011	2010
Federal tax provision (benefit)	34.0%	34.0%	34.0%
State taxes, net of federal tax benefit	7.5%	0.4%	3.7%
General business credits	-0.5%	1.6%	18.5%
Changes in valuation allowance	-3.7%	-3.7%	-11.8%
Nondeductible expenses	1.7%	-0.2%	4.0%
Acquisition costs	0.0%	0.0%	-9.4%
Stock based compensation	12.7%	-1.9%	-4.2%
Impact of intagible transfer	-18.6%	-4.7%	0.0%
Impact of uncertain tax positions	-4.2%	-0.2%	-1.4%
Adjustment to deferred tax asset	-10.4%	0.1%	-27.9%
Impact of foreign operations	6.4%	-4.6%	19.1%
Change in tax rates	12.4%	-0.1%	-6.0%
Changes in other tax matters	0.3%	0.4%	-1.5%
	37.6%	21.1%	17.0%

Schedule of Unrecognized Tax Benefits Excluding Interest and Penalties


		Year Ended December 31,
		2012		2011		2010
Balance at January 1	$	1,226	$	1,245	$	1,200
Increases for tax positions taken during prior periods		207		22		3
Decreases in unrecognized tax benefits related to settlements with taxing authorities		(536)		(71)		-
Increases for tax positions taken during current period		82		30		42
Balance at December 31	$	979	$	1,226	$	1,245

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Financial Information By Reportable Geographic Segment

15. Segment Reporting

The Company has determined that it has three reportable segments based on the Company’s method of internal reporting, which disaggregates business by geographic location. These segments are the Americas, Europe and Asia. The Company evaluates the performance of these segments based on income (loss) from operations, as well as other factors, that depend on the development status of these geographies. Such measures include the progress of its research and development activities, collaboration and licensing efforts, commercialization activities, product sales and other factors. The reportable segments have historically derived their revenue from joint collaboration and strategic alliance agreements. Transactions between the segments consist primarily of loans and the provision of research and development services. Following is a summary of financial information by reportable geographic segment:


(In thousands)		Americas			Europe			Asia			Consolidated
Year Ended December 31, 2012
Research and development revenue	$	6,189		$	-		$	15,356		$	21,545
Product royalty revenue		50,696			-			-			50,696
Co-promotion revenue		3,576			-			-			3,576
Contract and collaboration revenue		565			16			52			633
Product sales revenue		-			14			5,023			5,037
Total revenues		61,026			30			20,431			81,487
Cost of goods sold		98	-		9	-		2,923	-		3,030
Gross profit		60,928	-		21	-		17,508	-		78,457
Research and development expenses		7,809			9,571			3,912			21,292
Depreciation and amortization		484			964			40			1,488
Other operating expenses		41,410			2,993			2,957			47,360
Income (loss) from operations		11,225			(13,507)			10,599			8,317
Interest income		161			16			2			179
Interest expense		-			(2,183)			(163)			(2,346)
Other non-operating expense, net		77			(187)			1,712			1,602
Income (loss) before income taxes	$	11,463		$	(15,861)		$	12,150		$	7,752
Capital expenditures	$	401		$	3,038		$	-		$	3,439


(In thousands)		Americas		Europe		Asia		Consolidated
Year Ended December 31, 2011
Research and development revenue	$	8,033	$	-	$	1,216	$	9,249
Product royalty revenue		41,517		-		-		41,517
Co-promotion revenue		3,378		-		-		3,378
Contract and collaboration revenue		565		-		52		617
Total revenues		53,493		-		1,268		54,761
Research and development expenses		24,058		4,354		5,085		33,497
Settlement for legal dispute		(11,100)		-		-		(11,100)
Depreciation and amortization		791		474		43		1,308
Other operating expenses		46,326		1,092		1,327		48,745
Income (loss) from operations		(6,582)		(5,920)		(5,187)		(17,689)
Interest income		240		6		3		249
Interest expense		-		(2,288)		(167)		(2,455)
Other non-operating expense, net		(42)		(1,884)		(93)		(2,019)
Income (loss) before income taxes	$	(6,384)	$	(10,086)	$	(5,444)	$	(21,914)
Capital expenditures	$	145	$	6,006	$	133	$	6,284

Year Ended December 31, 2010
Research and development revenue	$	5,473	$	-	$	11,067	$	16,540
Product royalty revenue		40,300		-		-		40,300
Co-promotion revenue		4,417		-		-		4,417
Contract and collaboration revenue		566		-		47		613
Total revenues		50,756		-		11,114		61,870
Research and development expenses		12,769		944		10,242		23,955
Depreciation and amortization		895		12		57		964
Other operating expenses		33,822		1,979		1,303		37,104
Income (loss) from operations		3,270		(2,935)		(488)		(153)
Interest income		596		3		9		608
Interest expense		-		(57)		(18)		(75)
Other non-operating expense, net		(46)		(3,216)		(438)		(3,700)
Income (loss) before income taxes	$	3,820	$	(6,205)	$	(935)	$	(3,320)
Capital expenditures	$	298	$	3	$	32	$	333

As of December 31, 2012
Property and equipment, net	$	1,276	$	36	$	228	$	1,540
Identifiable assets, net of intercompany loans
and investments	$	87,731	$	25,465	$	14,600	$	127,796

As of December 31, 2011
Property and equipment, net	$	1,359	$	16	$	294	$	1,669
Identifiable assets, net of intercompany loans
and investments	$	96,490	$	47,925	$	13,154	$	157,569

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References + Details

Quarterly Financial Data (unaudited) (Tables)

12 Months Ended

Dec. 31, 2012

Quarterly Financial Data (unaudited) [Abstract]

Schedule Of Quarterly Financial Data


		2012 Quarters Ended
(In thousands, except per share data)		December 31		September 30		June 30		March 31
Total revenues	$	34,862	$	15,496	$	16,683	$	14,446
Income (loss) from operations	$	12,966	$	(1,653)	$	(2,674)	$	(322)
Net income (loss)	$	13,532	$	(5,949)	$	(819)	$	(1,928)
Net income (loss) per share:
Basic	$	0.33	$	(0.14)	$	(0.02)	$	(0.05)
Diluted	$	0.32	$	(0.14)	$	(0.02)	$	(0.05)

		2011 Quarters Ended
(In thousands, except per share data)		December 31		September 30		June 30		March 31
Total revenues	$	14,215	$	14,372	$	14,000	$	12,174
Income (loss) from operations	$	3,609	$	(4,522)	$	(7,615)	$	(9,161)
Net income (loss)	$	2,700	$	(4,078)	$	(9,019)	$	(6,909)
Net income (loss) per share:
Basic	$	0.06	$	(0.10)	$	(0.22)	$	(0.17)
Diluted	$	0.06	$	(0.10)	$	(0.22)	$	(0.17)

Business Organization And Basis Of Presentation (Narrative) (Details)	12 Months Ended
	Dec. 31, 2012 item
Business Organization And Basis Of Presentation [Abstract]
Number of prostone products that received marketing approval	2
Number of additional prostones that have been developed	2
Number of gastrointestinal indications AMITIZA is being marketed for in U.S.	2

Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Significant Accounting Policies [Line Items]
Maturity of cash equivalents include all highly liquid investments maturity, days	90 days
Restricted cash	$ 18,900,000	$ 17,200,000
Allowance for doubtful accounts	280,000
Cash insured by federal government	$ 16,800,000	$ 15,600,000
Percentage of cash insured	18.40%	16.70%
Amortization period of deferred charges	10 years
Benefit related to the partial reversal of the internal transfer	$ 1,900,000
Decrease in deferred charges	23,800,000	$ 24,100,000
Decrease in deferred tax liability	24,100,000
Total balance deferred charges	5,900,000
Amortization of deferred charge	77,000
Income tax liability including interest for uncertain tax position	1,100,000	1,500,000
Other liabilities	1,003,000
Other liabilities, non-current	1,253,000	2,603,000
Decrease in liability for income taxes	350,000
Deferred revenue	$ 10,793,000	$ 10,933,000
Open Tax Year	2012	2011	2010	2009
Takeda [Member]
Significant Accounting Policies [Line Items]
Percentage of Company's revenues	74.40%	96.90%	81.40%
Percentage of Company's total accounts receivable	98.00%	100.00%
Abbott [Member]
Significant Accounting Policies [Line Items]
Percentage of Company's revenues	19.30%	2.30%	18.00%
Leasehold Improvements [Member]
Significant Accounting Policies [Line Items]
Property and equipment estimated useful lives	10 years
Leasehold improvements amortization description	over the shorter of ten years or the life of the lease
Computer And Office Machines [Member]
Significant Accounting Policies [Line Items]
Property and equipment estimated useful lives	4 years
Furniture and Fixtures [Member]
Significant Accounting Policies [Line Items]
Property and equipment estimated useful lives	7 years
Uncertain Tax Position [Member]
Significant Accounting Policies [Line Items]
Other liabilities	$ 660,000
Other liabilities, non-current	$ 471,000	$ 1,500,000

Summary Of Significant Accounting Policies (Schedule of Deferred Revenue) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Summary Of Significant Accounting Policies [Abstract]
Deferred revenue, current	$ 3,700	$ 3,888
Deferred revenue, non-current	7,093	7,045
Total deferred revenue, current and non-current	10,793	10,933
Deferred revenue to related parties, current	479	433
Deferreed revenue to related parties, non-current	5,386	5,063
Total deferred revenue, current and non-current, related party	$ 5,865	$ 5,496

- Definition

The noncurrent portion of deferred revenue amount as of balance sheet date. Deferred revenue is a liability related to a revenue producing activity for which revenue has not yet been recognized, and is not expected to be recognized in the next twelve months. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP.

+ References + Details

Summary Of Significant Accounting Policies (Schedule of Assumptions Used to Estimate Fair Value of Stock Options Granted) (Details)	12 Months Ended			24 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011
Expected volatility, minimum	62.00%	55.00%	51.00%
Expected volatility, maximum	64.00%	64.00%	63.00%
Risk-free interest rate, minimum	0.76%	1.30%	1.89%
Risk-free interest rate, maximum	1.60%	3.30%	3.24%
Expected dividend yield	0.00%	0.00%	0.00%
Maximum [Member]
Expected term	6 years 3 months	6 years 3 months	6 years 3 months
Estimated forfeiture rate	14.00%			14.00%
Minimum [Member]
Expected term	5 years 6 months	2 years 1 month 6 days	5 years
Estimated forfeiture rate	10.00%			10.00%

Summary Of Significant Accounting Policies (Schedule of Employee Stock Based Compensation Expense) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share based compensation expense, allocation	$ 2,233	$ 1,370	$ 1,260
Employee stock-based compensation expense per basic and diluted share of common stock	$ 0.05	$ 0.03	$ 0.03
Research and Development Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share based compensation expense, allocation	$ 535	$ 234	$ 252
General and Administrative Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share based compensation expense, allocation	1,349	964	729
Selling and Marketing Expense [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share based compensation expense, allocation	$ 349	$ 172	$ 279

- 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

Net Income (Loss) per Share (Computation Of Net Income (Loss) Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Basic net loss (loss) per share:
Net income (loss)	$ 13,532	$ (5,949)	$ (819)	$ (1,928)	$ 2,700	$ (4,078)	$ (9,019)	$ (6,909)	$ 4,836	$ (17,306)	$ (2,755)
Weighted average common shares outstanding									41,660	41,839	41,848
Basic net income (loss) per share	$ 0.33	$ (0.14)	$ (0.02)	$ (0.05)	$ 0.06	$ (0.10)	$ (0.22)	$ (0.17)	$ 0.12	$ (0.41)	$ (0.07)
Diluted net loss per share:
Net income (loss)	$ 13,532	$ (5,949)	$ (819)	$ (1,928)	$ 2,700	$ (4,078)	$ (9,019)	$ (6,909)	$ 4,836	$ (17,306)	$ (2,755)
Weighted average common shares outstanding for diluted net income per share									41,785	41,839	41,848
Diluted net income (loss) per share	$ 0.32	$ (0.14)	$ (0.02)	$ (0.05)	$ 0.06	$ (0.10)	$ (0.22)	$ (0.17)	$ 0.12	$ (0.41)	$ (0.07)
Treasury Stock [Member]
Diluted net loss per share:
Weighted average common shares outstanding for diluted net income per share									125
Commn Stock Class A And Class B [Member]
Diluted net loss per share:
Weighted average common shares outstanding for diluted net income per share									41,660	41,839	41,848

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.21)
-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 55
-Paragraph 52
-URI http://asc.fasb.org/extlink&oid=16381557&loc=d3e4984-109258

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7655603&loc=d3e1252-109256

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Subparagraph (SX 210.9-04.23)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 18
-Article 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 36, 37, 38
-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 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 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 21
-Article 9

+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ 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
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
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-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-Subparagraph d
-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 130
-Paragraph 10, 15
-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 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 87-21
-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 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 38
-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.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28, 29, 30
-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 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

- Definition

The average number of shares or units issued and outstanding that are used in calculating diluted EPS or earnings per unit (EPU), determined based on the timing of issuance of shares or units in the period.

+ References + Details

- 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 Income (Loss) per Share (Schedule Of Potentially Dilutive Securities) (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2012 shares
Employee stock options [Member]
Schedule of Potentially Dilutive Securities [Line Items]
Weighted Average Number Diluted Shares Outstanding Adjustment	2,811
Non-Employee Stock Options [Member]
Schedule of Potentially Dilutive Securities [Line Items]
Weighted Average Number Diluted Shares Outstanding Adjustment	450

Net Income (Loss) per Share (Securities Excluded From Computation Of Diluted Net Loss Per Share) (Detail) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Employee stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted net loss per share as their effect would be anti-dilutive	596	3,595	1,554
Non-Employee Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted net loss per share as their effect would be anti-dilutive		450	450

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-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 13, 14
-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 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 8: 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.

+ Details

Current And Non-Current Investments (Available-For-Sale Investments) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Current [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 6,035	$ 24,444
Unrealized Gains		11
Unrealized Losses		(3)
Fair Value	6,035	24,452
Current [Member] \| U.S. Commercial Paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	2,499	1,997
Unrealized Gains		3
Fair Value	2,499	2,000
Current [Member] \| Municipal Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	251
Fair Value	251
Current [Member] \| Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	500
Fair Value	500
Current [Member] \| U.S. Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost		3,250
Fair Value		3,250
Current [Member] \| Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost		7,002
Unrealized Gains		8
Unrealized Losses		(3)
Fair Value		7,007
Current [Member] \| Variable Rate Demand Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	2,785	12,195
Fair Value	2,785	12,195
Non-current [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	14,412	1,000
Unrealized Gains	2
Unrealized Losses	(6)	(2)
Fair Value	14,408	998
Non-current [Member] \| Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	3,000
Fair Value	3,000
Non-current [Member] \| U.S. Government Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	10,131	1,000
Unrealized Gains	2
Unrealized Losses	(3)	(2)
Fair Value	10,130	$ 998
Non-current [Member] \| Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	1,281
Unrealized Losses	(3)
Fair Value	$ 1,278

Property and Equipment (Details) - USD ($)	12 Months Ended
Property and Equipment (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 4,510,000	$ 4,114,000
Less: accumulated depreciation	(2,970,000)	(2,445,000)
Property and equipment, net	1,540,000	1,669,000
Depreciation expense	542,000	591,000	$ 604,000
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,478,000	1,495,000
Computer And Office Machines [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,598,000	2,181,000
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 434,000	$ 438,000

- 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

Intangible Assets (Details) - USD ($)	12 Months Ended
Intangible Assets (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Indefinite-lived Intangible Assets [Line Items]
Upfront payment made	$ 3,000,000	$ 3,000,000
Milestone payment maximum amount	5,500,000
First milestone payment	500,000
Intangible assets	3,400,000
Non-current prepaid inventory	$ 85,000
Useful life of the underlying rights and data	10 years
Amortization Expense	$ 341,000	341,000	$ 341,000
Annual amortization expense	341,000
SAG [Member]
Indefinite-lived Intangible Assets [Line Items]
Upfront payment made	6,000,000
Milestone payment maximum amount	100,000,000
Intangible assets	$ 6,000,000
Useful life of the underlying rights and data	10 years
Amortization Expense	$ 613,000	$ 613,000	$ 613,000
Annual amortization expense	$ 613,000

Accrued Expenses (Schedule Of Accrued Expenses) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Accrued Expenses [Abstract]
Research and development costs	$ 6,662	$ 5,622
Employee compensation	1,219	1,607
Selling and marketing costs	487	76
Legal service fees	830	1,955
RESCULA milestone	500	3,500
Other accrued expenses	897	888
Total	$ 10,595	$ 13,648

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable for professional fees, such as for legal and accounting services received. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of obligations incurred through that date and payable arising from transactions not otherwise specified in the taxonomy. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

Other Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Other Liabilities [Abstract]
Deferred leasehold incentive	$ 373	$ 609
Deferred rent expense	408	514
Other liabilities	472	1,480
Total	$ 1,253	$ 2,603

- Definition

For a classified balance sheet, the cumulative difference between the rental income or payments required by a lease agreement and the rental income or expense recognized on a straight-line basis, or other systematic and rational basis more representative of the time pattern in which use or benefit is granted or derived from the leased property, expected to be recognized in income or expense, by the lessor or lessee, respectively, more than one year after the balance sheet date.

+ References + Details

Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Commitments and Contingencies [Abstract]
Rent expense for all operating leases	$ 1.6	$ 1.6	$ 1.3
Research and development future estimated costs	3.5
Contingency liability, maximum	$ 4.8
Contingency liability	3.8
Purchase order commitment	$ 5.3

- Definition

Describes the estimated range of loss from the specified contingency when no single amount within the range appears to be a better estimate than any other amount within the range, may disclose the factors that could cause the estimate to change, and may indicate that a material change in estimate might occur based on a reasonably possible change in circumstances.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 9
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14557-108349

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6143-108592

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-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 5
-Paragraph 9, 10, 11, 12
-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 AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 13, 14
-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

Commitments and Contingencies (Future Minimum, Non-Cancelable Lease Payments Under Operating Leases) (Details) $ in Thousands	Dec. 31, 2012 USD ($)
Commitments and Contingencies [Abstract]
2013	$ 1,275
2014	1,068
2015	1,052
2016	1,084
2017	139
Total minimum lease payments	$ 4,618

Related Party Transactions (Narrative) (Details) SFr in Thousands	1 Months Ended				12 Months Ended
	Feb. 28, 2009 USD ($)	Oct. 31, 2006 item	Jun. 30, 2005 USD ($)	Mar. 31, 2003 USD ($)	Dec. 31, 2012 CHF (SFr)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2012 USD ($)	Nov. 30, 2012 USD ($)	Sep. 30, 2012 CHF (SFr)	Sep. 30, 2012 USD ($)	Dec. 31, 2005 USD ($)
Related Party Transaction [Line Items]
Contract and collaboration revenue						$ 419,000	$ 419,000	$ 419,000
Manufacturing and supply agreement, period			20 years
Increase in deferred revenue						(95,000)	(1,940,000)	(6,525,000)
Research and development						21,292,000	33,497,000	23,955,000
Purchase order commitment									$ 5,300,000
R-Tech [Member]
Related Party Transaction [Line Items]
Deferred revenue, noncurrent				$ 6,000,000					2,000,000				$ 6,000,000
Supplies purchased						1,400,000	72,000	344,000
Manufacturing and supply agreement, period		2 years
Number of drugs within agreement \| item		2
Mutual written termination period		90 days
Manufacturing and supply agreement, additional period		2 years
Research and development						466,000	104,000	69,000
Purchase order commitment									5,300,000
Numab [Member]
Related Party Transaction [Line Items]
Collateral deposited \| SFr					SFr 3,500
Loan utilized \| SFr					3,000
Collateral callable									$ 1,200,000
Equipment purchased on lease by Numab					544	$ 595,000
Remaining collateral balance \| SFr					SFr 4,500
Loan Guarantee Reduction Percentage					90.00%	90.00%
Numab [Member] \| Maximum [Member]
Related Party Transaction [Line Items]
Collateral security for loan to Numab from third party											SFr 5,000	$ 5,500,000
Initial Execution Of Agreement [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Agreement purchase, milestone amounts			$ 2,000,000
Deferred revenue, noncurrent				1,000,000
Commencement of Second Phase 2 First Phase 3 [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Agreement purchase, milestone amounts				2,000,000
Manufacturing And Supply Agreement 2006 [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Supplies purchased								48,000
Manufacturing And Supply Agreement 2009 [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Supplies purchased						$ 10,000
RUG-015 [Member] \| Commencement of First Phase 2 Trial [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Agreement purchase, milestone amounts				3,000,000
RUG-015 [Member] \| Commencement of Second Phase 2 First Phase 3 [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Deferred revenue, noncurrent				3,000,000
Lubiprostone [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Contract and collaboration revenue	$ 250,000
Deferred revenue, noncurrent										$ 250,000
Supplies purchased						124,000	125,000	110,000
Lubiprostone [Member] \| Initial Execution Of Agreement [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Agreement purchase, milestone amounts	250,000
Lubiprostone [Member] \| Commencement of First Phase 2 Trial [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Agreement purchase, milestone amounts				2,000,000
Deferred revenue, noncurrent				2,000,000
Lubiprostone [Member] \| Regulatory Approval [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Agreement purchase, milestone amounts	$ 500,000
Lubiprostone [Member] \| Manufacturing And Supply Agreement 2009 [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Supplies purchased						$ 3,100,000	$ 166,000	$ 267,000
RUG-015 And Lubiprostone [Member] \| Initial Execution Of Agreement [Member] \| R-Tech [Member]
Related Party Transaction [Line Items]
Agreement purchase, milestone amounts				$ 1,000,000

Related Party Transactions (Expenses Under Agreements With R-Tech) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Related Party Transaction [Line Items]
Expenses related to R-Tech	$ 5,204	$ 331	$ 837
Clinical supplies [Member]
Related Party Transaction [Line Items]
Expenses related to R-Tech	1,450	72	392
Other research and development services [Member]
Related Party Transaction [Line Items]
Expenses related to R-Tech	466	104	69
Commercial supplies [Member]
Related Party Transaction [Line Items]
Expenses related to R-Tech	$ 3,288	$ 155	$ 376

Related Party Transactions (Deferred Revenue With R-Tech) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Related Party Transactions [Abstract]
Deferred revenue to related parties, current	$ 479	$ 433
Deferreed revenue to related parties, non-current	5,386	5,063
Total deferred revenue, current and non-current, related party	$ 5,865	$ 5,496

Notes Payable (Narrative) (Details)	1 Months Ended		12 Months Ended
Notes Payable (Narrative) (Details)	Nov. 30, 2012 USD ($)	Nov. 30, 2011 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2012 JPY (¥)	Dec. 31, 2012 USD ($)
Debt Instrument [Line Items]
Effective date of interest rate					Dec. 01, 2012	Dec. 01, 2012
Interest expense added to principal balance of notes			$ 2,024,000	$ 2,288,000
Repayment of notes payable	$ 7,500,000	$ 7,500,000	$ 7,500,000	7,500,000
Secured Debt [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity \| ¥					¥ 1,000,000,000
Loan Agreement Extension of Credit Period			1 year
Interest description			The loan bears annual interest based on the three-month Tokyo Interbank Offer Rate, or TIBOR, plus 1% and is reset quarterly.
Loan Agreement, interest rate			1.31%
Loan agreement outstanding balance				12,900,000		$ 11,600,000
Minimum percentage of collateral to loan					90.00%	90.00%
Deposits in bank				$ 14,900,000		$ 14,900,000
Percentage of annual interest deposits with banks bear				0.25%	0.25%	0.25%
Interest rate above variable rate					1.00%	1.00%
Subordinated Unsecured Promissory Notes [Member]
Debt Instrument [Line Items]
Interest description			The interest rate for the notes is equal to the per annum rate of interest determined on the basis of the sum of London Interbank Offered Rate, or LIBOR, plus 4.0%, and will be reset every six months on December 1st and June 1st of each year.
Interest rate					4.50%	4.50%
Notes Repayment Schedule			The notes provide for a semi-annual repayment schedule of interest and principal over a seven-year period on each June 1st and December 1st, provided that, until December 1, 2012, all accrued and unpaid interest will not be paid in cash and will instead be added to the principal balance of the notes, and Ambrent will make only two scheduled principal payments on December 1, 2011 and December 1, 2012. In November 2011, Ambrent made the first principal payment of $7.5 million. In November 2012, Ambrent made the second principal payment of $7.5 million.
Subordinated Unsecured Promissory Notes [Member] \| LIBOR [Member]
Debt Instrument [Line Items]
Interest rate above variable rate					4.00%	4.00%
Subordinated Unsecured Promissory Notes [Member] \| Ueno Trust [Member]
Debt Instrument [Line Items]
Debt Face amount						$ 25,900,000
Subordinated Unsecured Promissory Notes [Member] \| Kuno Trust [Member]
Debt Instrument [Line Items]
Debt Face amount						25,900,000
Subordinated Unsecured Promissory Notes [Member] \| Kuno and Ueno Trust [Member]
Debt Instrument [Line Items]
Debt Face amount						$ 51,900,000

Notes Payable (Schedule Of Notes Payable) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Notes payable, current	$ 19,129	$ 20,400
Notes payable, non-current	33,722	39,227
Fair Value [Member]
Loan agreement, The Bank of Tokyo-Mitsubishi UFJ, Ltd	11,600
Promissory notes, Sellers of SAG	42,072
Notes payable, total	53,672
Carrying Value [Member]
Loan agreement, The Bank of Tokyo-Mitsubishi UFJ, Ltd	11,600	12,900
Promissory notes, Sellers of SAG	41,251	46,727
Notes payable, current	19,129	20,400
Notes payable, non-current	33,722	39,227
Notes payable, total	$ 52,851	$ 59,627

Collaboration And License Agreements (Abbott License And Commericalization And Supply Agreement) (Narrative) (Details) $ in Thousands	1 Months Ended	12 Months Ended		47 Months Ended
	Dec. 31, 2012 USD ($)	Dec. 31, 2012 item	Dec. 31, 2009 USD ($)	Dec. 31, 2012 USD ($)
Segment Reporting Information [Line Items]
Number of governing committees \| item		2
Abbott [Member] \| Up Front Fee And Milestone Payment Arrangement [Member]
Segment Reporting Information [Line Items]
Upfront & Development Milestone payment Received				$ 37,500
Abbott [Member] \| Up-front Payment Arrangement [Member]
Segment Reporting Information [Line Items]
Upfront & Development Milestone payment Received			$ 10,000
Abbott [Member] \| Milestone Payment Arrangement [Member]
Segment Reporting Information [Line Items]
Upfront & Development Milestone payment Received	$ 15,000		$ 12,500

Collaboration And License Agreements (Cash Streams And Related Revenue Recognized Or Deferred Under Abbott Agreement) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Deferred Revenue Arrangement [Line Items]
Revenue Recognized	$ 147,000	$ 147,000	$ 147,000
Abbott [Member] \| Collaborative Arrangement [Member] \| Up-front Payment Arrangement [Member]
Deferred Revenue Arrangement [Line Items]
Beginning Balance	846,000
Revenue Recognized	52,000	52,000	85,000
Ending Balance	725,000	846,000
Abbott [Member] \| Research and Development Arrangement [Member]
Deferred Revenue Arrangement [Line Items]
Beginning Balance	36,654,000
Revenue Recognized	15,356,000	1,217,000	20,484,000
Ending Balance		36,654,000
Abbott [Member] \| Research and Development Arrangement [Member] \| Up-front Payment Arrangement [Member]
Deferred Revenue Arrangement [Line Items]
Beginning Balance	9,154,000
Revenue Recognized	199,000	520,000	8,583,000
Ending Balance		9,154,000
Abbott [Member] \| Research and Development Arrangement [Member] \| Milestone Payment Arrangement [Member]
Deferred Revenue Arrangement [Line Items]
Beginning Balance	27,500,000
Revenue Recognized	15,157,000	697,000	$ 11,901,000
Ending Balance		27,500,000
Abbott [Member] \| Product Sales Revenue [Member]
Deferred Revenue Arrangement [Line Items]
Beginning Balance	4,924,000
Revenue Recognized	5,023,000
Accounts receivable	99,000
Ending Balance		$ 4,924,000
Abbott [Member] \| Foreign Currency Translation Adjustment Gain (Loss) [Member] \| Collaborative Arrangement [Member] \| Up-front Payment Arrangement [Member]
Deferred Revenue Arrangement [Line Items]
Deferred Revenue Additions	(68,000)
Abbott [Member] \| Foreign Currency Translation Adjustment Gain (Loss) [Member] \| Research and Development Arrangement [Member]
Deferred Revenue Arrangement [Line Items]
Deferred Revenue Additions	(403,000)
Abbott [Member] \| Foreign Currency Translation Adjustment Gain (Loss) [Member] \| Research and Development Arrangement [Member] \| Up-front Payment Arrangement [Member]
Deferred Revenue Arrangement [Line Items]
Deferred Revenue Additions	(148,000)
Abbott [Member] \| Foreign Currency Translation Adjustment Gain (Loss) [Member] \| Research and Development Arrangement [Member] \| Milestone Payment Arrangement [Member]
Deferred Revenue Arrangement [Line Items]
Deferred Revenue Additions	$ (255,000)

Collaboration And License Agreements (Cash Streams And Related Revenue Recognized Or Deferred Under Takeda Agreements) (Details) - USD ($)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Deferred Revenue Arrangement [Line Items]

Revenue Recognized

$ 147,000

Takeda [Member] | Royalty Arrangement [Member]

Deferred Revenue Arrangement [Line Items]

Beginning Balance

225,152,000

Revenue Recognized

50,696,000

41,517,000

147,114,000

Accounts receivable

^[1]

14,175,000

Ending Balance

225,152,000

Takeda [Member] | Collaborative Arrangement, Co-promotion [Member]

Deferred Revenue Arrangement [Line Items]

Beginning Balance

28,613,000

Revenue Recognized

3,576,000

3,378,000

22,438,000

Accounts receivable

^[1]

779,000

Ending Balance

28,613,000

Takeda [Member] | Collaborative Arrangement [Member] | Up-front Payment Arrangement [Member]

Deferred Revenue Arrangement [Line Items]

Beginning Balance

2,375,000

Revenue Recognized

147,000

905,000

Ending Balance

1,176,000

2,375,000

Takeda [Member] | Research and Development Arrangement [Member]

Deferred Revenue Arrangement [Line Items]

Beginning Balance

252,277,000

Revenue Recognized

6,189,000

8,032,000

239,854,000

Accounts receivable

^[1]

2,047,000

Ending Balance

249,000

252,277,000

Takeda [Member] | Research and Development Arrangement [Member] | Up-front Payment Arrangement [Member]

Deferred Revenue Arrangement [Line Items]

Beginning Balance

17,624,000

Revenue Recognized

17,624,000

Ending Balance

17,624,000

Takeda [Member] | Research and Development Arrangement [Member] | Development Milestone [Member]

Deferred Revenue Arrangement [Line Items]

Beginning Balance

130,000,000

Revenue Recognized

130,000,000

Ending Balance

130,000,000

Takeda [Member] | Research and Development Arrangement [Member] | Reimbursement Of Research And Development Expenses [Member]

Deferred Revenue Arrangement [Line Items]

Beginning Balance

104,653,000

Revenue Recognized

6,189,000

8,032,000

$ 92,230,000

Accounts receivable

^[1]

2,047,000

Ending Balance

$ 249,000

$ 104,653,000

[1]	Includes billed and unbilled accounts receivable.

Collaboration And License Agreements (Takeda Collaboration And License Agreement) (Narrative) (Details)	1 Months Ended		12 Months Ended
	Jun. 30, 2007 USD ($)	Oct. 31, 2004 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2006 USD ($) item
Segment Reporting Information [Line Items]
Revenue Recognized			$ 147,000	$ 147,000	$ 147,000
Royalty Revenue			50,696,000	41,517,000	40,300,000
Contract and collaboration revenue			419,000	419,000	419,000
Research and development revenue			21,545,000	9,249,000	16,540,000
Copromotion Revenue			3,576,000	3,378,000	4,417,000
Takeda [Member]
Segment Reporting Information [Line Items]
Upfront & Development Milestone payment Received		$ 50,000,000
Deferred revenue, noncurrent		2,400,000	1,200,000	1,300,000
Initial funded development costs		30,000,000
Company funded development costs		20,000,000
Collabortive funded developement cost, minimum		50,000,000
Reimbursement of initial funding of development costs	$ 30,000,000
Contract and collaboration revenue	30,000,000
Number of studies in joint commericialization \| item						3
Funding labeling studies, percentage						70.00%
Company funded labeling studies, percentage						30.00%
New formulation development costs						$ 20,000,000
Research and development revenue			4,400,000	$ 8,000,000	$ 5,500,000
Up Front Fee And Milestone Payment Arrangement [Member] \| Takeda [Member]
Segment Reporting Information [Line Items]
Upfront & Development Milestone payment Received		20,000,000	$ 150,000,000
Milestone Payment Arrangement [Member] \| Takeda [Member]
Segment Reporting Information [Line Items]
Contract and collaboration revenue	$ 50,000,000
Intital Residual Amount [Member] \| Takeda [Member]
Segment Reporting Information [Line Items]
Deferred revenue, noncurrent		$ 17,600,000
Maximum [Member] \| Takeda [Member]
Segment Reporting Information [Line Items]
Initial funded development costs						$ 50,000,000

Collaboration And License Agreements (Numab AG) (Narrative) (Details) SFr in Millions	Sep. 30, 2011 CHF (SFr)
Numab [Member]
Segment Reporting Information [Line Items]
Sponsored collateral	SFr 5.0

Stockholders' Equity (Narrative) (Details) - USD ($)								1 Months Ended	12 Months Ended
Stockholders' Equity (Narrative) (Details) - USD ($)	Nov. 02, 2012	Sep. 08, 2011	May 02, 2011	Oct. 07, 2009	Dec. 11, 2008	Oct. 18, 2007	Jun. 05, 2006	Aug. 31, 2005	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Mar. 07, 2013	Aug. 29, 2012	Sep. 01, 2003
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Common stock available for issuance, percentage of aggregate number of shares						5.00%
Annual increase in the number of shares issuance						500,000
Shares exercisable, remaining contractual life									2 years 3 months 29 days	3 years 3 months 29 days
Options granted, weighted average grant date fair value									$ 6.30	$ 1.81	$ 2.05
Options granted, unrecognized compensation cost									$ 2,300,000
Options granted, weighted average period of recognition									2 years 5 months 23 days
Options granted, shares outstanding and exercisable									450,000	450,000
Options granted, shares vested, exercise price									$ 5.85	$ 5.85
Common stock purchased									$ 20,000	$ 13,000	$ 14,000
Employee Stock Purchase Plan [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Shares reserved for future issuance							4,250,000
Percentage of compensation to purchase common stock										10.00%
Share based compensation, purchase price or shares										95.00%
Common stock purchased, shares									3,550	3,363
Common stock purchased									$ 20,000	$ 13,000	$ 14,000
Time-Based Stock Options [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage of options									25.00%
Stock options, vesting period									4 years
Shares exercisable, remaining contractual life									10 years
Stock Plan 2001 [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Shares exercisable, remaining contractual life									3 years 3 months 29 days
Options granted, shares outstanding and exercisable									156,400
Stock Plan 2001 [Member] \| Non-Employee Stock Options [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Options granted								510,000
Options granted, exercise price								$ 5.85
Stock Incentive Plan 2006 [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Total number of shares available for grants									5,248,507
Options granted									502,750
Stock options, vesting period							4 years
Shares exercisable, remaining contractual life							10 years		7 years 8 months 12 days
Options granted, exercise price									$ 6.30
Options granted, shares outstanding and exercisable									1,243,479
Class A Common Stock [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Common stock, shares issued									41,964,905	15,690,780
Common stock, shares outstanding									41,964,905	15,690,780		41,970,364
Stock repurchase program, authorized amount	$ 5,000,000	$ 2.0			$ 10,000,000
Stock repurchased, value									$ 1,300,000	$ 700,042
Stock repurchased, number of shares									270,043	186,987
Options granted										2,572,860
Stock options, vesting period										4 years
Shares exercisable, remaining contractual life										10 years
Stock options vesting percentage, year two										40.00%
Stock options vesting percentage, year one										40.00%
Stock options vesting percentage, year three										20.00%
Stock options, target price share, year one										$ 8.00
Stock options, target price per share, year two										12.00
Stock options, target price share, year three										$ 16.00
Common stock, shares authorized									270,000,000	270,000,000
Class A Common Stock [Member] \| Employee Stock Purchase Plan [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Common stock, shares authorized										500,000
Class A Common Stock [Member] \| Market Condition Based Options [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Options granted										1,699,508
Class A Common Stock [Member] \| Time-Based Stock Options [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Options granted										873,352
Class A Common Stock [Member] \| Stock Plan 2001 [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Stock repurchase program, authorized number of shares														8,500,000
Class B Common Stock [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Common stock, shares issued									0	26,191,050			26,191,050
Common stock, shares outstanding									0	26,191,050			26,191,050
Common stock, shares authorized									0	75,000,000
Director [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Options granted			30,000
Director [Member] \| Service Based Options [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage of options			60.00%
Director [Member] \| Market Condition Based Options [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Percentage of options			40.00%
Director [Member] \| Stock Incentive Plan 2006 [Member]
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
Options granted				20,000
Additional options granted				30,000

Stockholders' Equity (Employee Stock Option Activity) (Details) - USD ($)		12 Months Ended
	Jun. 05, 2006	Dec. 31, 2012	Dec. 31, 2011
Shares
Options exercisable, ending balance		450,000	450,000
Weighted Average Remaining Contractual Term (Years)
Options exercisable, ending balance		2 years 3 months 29 days	3 years 3 months 29 days
Stock Plan 2001 [Member]
Shares
Options outstanding, beginning balance		190,400
Options expired		(34,000)
Options outstanding, ending balance		156,400	190,400
Options exercisable, ending balance		156,400
Weighted Average Exercise Price Per Share
Options outstanding, beginning balance		$ 10.00
Options expired		10.00
Options outstanding, ending balance		10.00	$ 10.00
Options exercisable, ending balance		$ 10.00
Weighted Average Remaining Contractual Term (Years)
Options outstanding, ending balance		3 years 3 months 29 days
Options exercisable, ending balance		3 years 3 months 29 days
Stock Incentive Plan 2006 [Member]
Shares
Options outstanding, beginning balance		3,402,380
Options granted		502,750
Options exercised		(79,525)
Options forfeited		(432,506)
Options expired		(141,606)
Options outstanding, ending balance		3,251,493	3,402,380
Options exercisable, ending balance		1,243,479
Weighted Average Exercise Price Per Share
Options outstanding, beginning balance		$ 4.75
Options granted		6.30
Options exercised		3.92
Options forfeited		4.51
Options expired		9.75
Options outstanding, ending balance		4.83	$ 4.75
Options exercisable, ending balance		$ 5.05
Weighted Average Remaining Contractual Term (Years)
Options outstanding, ending balance		8 years 3 months 4 days
Options exercisable, ending balance	10 years	7 years 8 months 12 days
Aggregate Intrinsic Value
Options outstanding, ending balance		$ 1,820,758
Options exercisable, ending balance		$ 743,057

Income Taxes (Narrative) (Details) - USD ($)	12 Months Ended
Income Taxes (Narrative) (Details) - USD ($)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Operating Loss Carryforwards [Line Items]
Foreign net operating loss carryforwards	$ 21,000,000	$ 16,400,000
Foreign net operating loss carry-forwards	5,132,000	5,638,000
Research and development tax credits	472,000
Valuation allowance on deferred tax assets	4,142,000	4,467,000
Net decrease in valuation allowance	325,000	5,200,000
Benefit related to the partial reversal of the internal transfer	1,900,000
Decrease in deferred charges	23,800,000	24,100,000
Benefit related to intellectual property transfer adjustment	1,900,000
Total balance deferred charges	5,900,000
Amortization of deferred charge	77,000
Income tax liability including interest for uncertain tax position	1,100,000	1,500,000
Other current liabilities	1,003,000
Interest related to uncertain tax positions	$ 42,000	$ 69,000	$ 75,000
Open Tax Year	2012	2011	2010	2009
2019 [Member]
Operating Loss Carryforwards [Line Items]
Foreign net operating loss carry-forwards	$ 10,900,000
Operating loss carryforwards, expiration dates	December 2019
Do Not Expire [Member]
Operating Loss Carryforwards [Line Items]
Foreign net operating loss carry-forwards	$ 10,100,000
Uncertain Tax Position [Member]
Operating Loss Carryforwards [Line Items]
Other current liabilities	$ 660,000

Income Taxes (Schedule of Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Abstract]
U.S.	$ 8,580	$ (9,670)	$ (3,819)
Foreign	(828)	(12,244)	499
Income (loss) before income taxes	$ 7,752	$ (21,914)	$ (3,320)

Income Taxes (Schedule for Provision (Benefit) for Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Abstract]
Current tax provision (benefit), U.S. Federal	$ 1,431	$ (597)	$ (1,063)
Current tax provision (benefit), U.S. State	658	(194)	128
Current tax provision (benefit), Foreign	51	550	469
Total current tax provision (benefit)	2,140	(241)	(466)
Deferred provision (benefit), U.S. Federal	1,248	(1,369)	(44)
Deferred provision (benefit), U.S. State	(193)	385	(56)
Deferred provision (benefit), Foreign	(279)	(3,383)	1
Total deferred provision (benefit)	776	(4,367)	(99)
Total income tax provision (benefit)	$ 2,916	$ (4,608)	$ (565)

Income Taxes (Schedule of Deferred Tax Liabilities, Net) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Income Taxes [Abstract]
Foreign net operating loss carry-forwards	$ 5,132	$ 5,638
U.S. net operating loss carry-forwards	100	903
Deferred revenue	2,431	2,547
Accrued expenses	1,316	1,043
Tax benefits on stock options	1,832	1,960
Other	388	869
Gross deferred tax assets	11,199	12,960
Property and equipment	(272)	(339)
Intangibles	(6,884)	(30,918)
Accrued expenses		(3)
Other		(167)
Gross deferred tax liabilities	(7,156)	(31,427)
Less: valuation allowance	(4,142)	(4,467)
Net deferred tax liabilities	$ (99)	$ (22,934)

Income Taxes (Schedule of Income Taxes On The Federal Statutory Rate) (Details)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Abstract]
Federal tax provision (benefit)	34.00%	34.00%	34.00%
State taxes, net of federal tax benefit	7.50%	0.40%	3.70%
General business credits	(0.50%)	1.60%	18.50%
Changes in valuation allowance	(3.70%)	(3.70%)	(11.80%)
Nondeductible expenses	1.70%	(0.20%)	4.00%
Acquisition costs	0.00%	0.00%	(9.40%)
Stock based compensation	12.70%	(1.90%)	(4.20%)
Impact of intangible transfer	(18.60%)	(4.70%)	0.00%
Impact of uncertain tax positions	(4.20%)	(0.20%)	(1.40%)
Impact of foreign operations	6.40%	(4.60%)	19.10%
Adjustment to deferred tax asset	(10.40%)	0.10%	(27.90%)
Change in tax rates	12.40%	(0.10%)	(6.00%)
Changes in other tax matters	0.30%	0.40%	(1.50%)
Effective income tax rate	37.60%	21.10%	17.00%

Income Taxes (Schedule of Unrecognized Tax Benefits Excluding Interest and Penalties) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Income Taxes [Abstract]
Balance at January 1	$ 1,226	$ 1,245	$ 1,200
Increases for tax positions taken during prior periods	207	22	3
Decreases in unrecognized tax benefits related to settlements with taxing authorities	(536)	(71)
Increases for tax positions taken during current period	82	30	42
Balance at December 31	$ 979	$ 1,226	$ 1,245

Segment Reporting (Financial Information By Reportable Geographic Segment) (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Segment Reporting Information [Line Items]
Research and development revenue									$ 21,545	$ 9,249	$ 16,540
Product royalty revenue									50,696	41,517	40,300
Co-promotion revenue									3,576	3,378	4,417
Contract and collaboration revenue									633	617	613
Product sales revenue									5,037
Total revenues	$ 34,862	$ 15,496	$ 16,683	$ 14,446	$ 14,215	$ 14,372	$ 14,000	$ 12,174	81,487	54,761	61,870
Cost of goods sold									3,030
Gross profit									78,457	54,761	61,870
Research and development expenses									21,292	33,497	23,955
Settlement of legal dispute										(11,100)
Depreciation and amortization									1,488	1,308	964
Other operating expenses									47,360	48,745	37,104
Income (loss) from operations	12,966	$ (1,653)	$ (2,674)	$ (322)	3,609	$ (4,522)	$ (7,615)	$ (9,161)	8,317	(17,689)	(153)
Interest income									179	249	608
Interest expense									(2,346)	(2,455)	(75)
Other non-operating income (expense), net									1,602	(2,019)	(3,700)
Income (loss) before income taxes									7,752	(21,914)	(3,320)
Capital expenditures									3,439	6,284	333
Property and equipment, net	1,540				1,669				1,540	1,669
Identifiable assets, net of intercompany loans and investments	127,796				157,569				127,796	157,569
Americas [Member]
Segment Reporting Information [Line Items]
Research and development revenue									6,189	8,033	5,473
Product royalty revenue									50,696	41,517	40,300
Co-promotion revenue									3,576	3,378	4,417
Contract and collaboration revenue									565	565	566
Total revenues									61,026	53,493	50,756
Cost of goods sold									98
Gross profit									60,928
Research and development expenses									7,809	24,058	12,769
Settlement of legal dispute										(11,100)
Depreciation and amortization									484	791	895
Other operating expenses									41,410	46,326	33,822
Income (loss) from operations									11,225	(6,582)	3,270
Interest income									161	240	596
Other non-operating income (expense), net									77	(42)	(46)
Income (loss) before income taxes									11,463	(6,384)	3,820
Capital expenditures									401	145	298
Property and equipment, net	1,276				1,359				1,276	1,359
Identifiable assets, net of intercompany loans and investments	87,731				96,490				87,731	96,490
Europe [Member]
Segment Reporting Information [Line Items]
Contract and collaboration revenue									16
Product sales revenue									14
Total revenues									30
Cost of goods sold									9
Gross profit									21
Research and development expenses									9,571	4,354	944
Depreciation and amortization									964	474	12
Other operating expenses									2,993	1,092	1,979
Income (loss) from operations									(13,507)	(5,920)	(2,935)
Interest income									16	6	3
Interest expense									(2,183)	(2,288)	(57)
Other non-operating income (expense), net									(187)	(1,884)	(3,216)
Income (loss) before income taxes									(15,861)	(10,086)	(6,205)
Capital expenditures									3,038	6,006	3
Property and equipment, net	36				16				36	16
Identifiable assets, net of intercompany loans and investments	25,465				47,925				25,465	47,925
Asia [Member]
Segment Reporting Information [Line Items]
Research and development revenue									15,356	1,216	11,067
Contract and collaboration revenue									52	52	47
Product sales revenue									5,023
Total revenues									20,431	1,268	11,114
Cost of goods sold									2,923
Gross profit									17,508
Research and development expenses									3,912	5,085	10,242
Depreciation and amortization									40	43	57
Other operating expenses									2,957	1,327	1,303
Income (loss) from operations									10,599	(5,187)	(488)
Interest income									2	3	9
Interest expense									(163)	(167)	(18)
Other non-operating income (expense), net									1,712	(93)	(438)
Income (loss) before income taxes									12,150	(5,444)	(935)
Capital expenditures										133	$ 32
Property and equipment, net	228				294				228	294
Identifiable assets, net of intercompany loans and investments	$ 14,600				$ 13,154				$ 14,600	$ 13,154

Quarterly Financial Data (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Quarterly Financial Data (unaudited) [Abstract]
Total revenues	$ 34,862	$ 15,496	$ 16,683	$ 14,446	$ 14,215	$ 14,372	$ 14,000	$ 12,174	$ 81,487	$ 54,761	$ 61,870
Income (loss) from operations	12,966	(1,653)	(2,674)	(322)	3,609	(4,522)	(7,615)	(9,161)	8,317	(17,689)	(153)
Net income (loss)	$ 13,532	$ (5,949)	$ (819)	$ (1,928)	$ 2,700	$ (4,078)	$ (9,019)	$ (6,909)	$ 4,836	$ (17,306)	$ (2,755)
Net Income (Loss) per Share
Basic	$ 0.33	$ (0.14)	$ (0.02)	$ (0.05)	$ 0.06	$ (0.10)	$ (0.22)	$ (0.17)	$ 0.12	$ (0.41)	$ (0.07)
Diluted	$ 0.32	$ (0.14)	$ (0.02)	$ (0.05)	$ 0.06	$ (0.10)	$ (0.22)	$ (0.17)	$ 0.12	$ (0.41)	$ (0.07)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

+ Details

- Definition

+ References + Details

- Definition

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

+ References

+ Details

Schedule II Valuation and Qualifying Accounts (Details) - USD ($)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Valuation and Qualifying Accounts Disclosure [Line Items]

Net decrease in valuation allowance

$ 325,000

$ 5,200,000

Allowance for Doubtful Accounts [Member]

Valuation and Qualifying Accounts Disclosure [Line Items]

Additions Charged to Costs and Expenses

^[1]

280,000

Balance at End of Year

280,000

Valuation Allowance for Deferred Tax Assets [Member]

Valuation and Qualifying Accounts Disclosure [Line Items]

Balance at Beginning of Year

4,467,000

9,658,000

$ 8,584,000

Additions Charged to Costs and Expenses

1,073,000

^[2]

932,000

^[3]

1,074,000

^[4]

Deductions

(1,398,000)

(6,123,000)

Balance at End of Year

$ 4,142,000

$ 4,467,000

$ 9,658,000

[1]	In 2012, the increase in allowance for doubtful accounts is primarily associated to certain disputed Takeda invoices.
[2]	In 2012, the net decrease in valuation allowance of $325,000 was due primarily to the release of the valuation allowance in certain jurisdictions that management believes the deferred tax assets are more likely than not to be utilized.
[3]	In 2011, the net decrease in the valuation allowance of $5.2 million was due primarily to the recognition of gains in local tax jurisdictions on the transfer of certain intellectual property to SAG as well as the partial release of valuation allowances in certain jurisdictions that management believes the deferred tax assets are more likely than not to be utilized.
[4]	In 2010, the increase in valuation allowance is primarily associated with certain foreign net operating losses. This increase in the valuation allowance was based on management’s assessment that, due to changing business conditions and the limitation of tax planning strategies, the Company was not likely to fully realize these deferred tax assets.

Current And Non-Current Investments (Assets Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 46,226	$ 38,335
U.S. Government Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	10,130	4,248
U.S. Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	5,998	2,000
Municipal Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	1,253
Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	3,500
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	6,286	7,007
Money market funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	16,274	12,885
Variable Rate Demand Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	2,785	12,195
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	16,274	12,885
Fair Value, Inputs, Level 1 [Member] \| Money market funds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	16,274	12,885
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	29,952	25,450
Fair Value, Inputs, Level 2 [Member] \| U.S. Government Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	10,130	4,248
Fair Value, Inputs, Level 2 [Member] \| U.S. Commercial Paper [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	5,998	2,000
Fair Value, Inputs, Level 2 [Member] \| Municipal Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	1,253
Fair Value, Inputs, Level 2 [Member] \| Certificates of Deposit [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	3,500
Fair Value, Inputs, Level 2 [Member] \| Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	6,286	7,007
Fair Value, Inputs, Level 2 [Member] \| Variable Rate Demand Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 2,785	$ 12,195