Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | insy | |
Entity Registrant Name | Insys Therapeutics, Inc. | |
Entity Central Index Key | 1,516,479 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding (in shares) | 73,316,650 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 35,755 | $ 104,642 |
Short-term investments | 85,891 | 78,238 |
Accounts receivable, net of allowances of $3,485 and $6,144 at September 30, 2017 and December 31, 2016, respectively | 23,249 | 20,654 |
Inventories, net | 18,424 | 20,414 |
Prepaid expenses and other current assets | 16,544 | 5,695 |
Total current assets | 179,863 | 229,643 |
Property and equipment, net | 53,931 | 43,172 |
Long-term investments | 55,514 | 53,796 |
Deferred income tax assets, net | 31,748 | 23,243 |
Other assets | 2,030 | 6,282 |
Total assets | 323,086 | 356,136 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 31,226 | 27,359 |
Accrued compensation | 5,376 | 8,833 |
Accrued sales allowances | 20,855 | 28,955 |
Deferred revenue | 940 | |
Accrued litigation award and settlements | 150,500 | 13,467 |
Total current liabilities | 208,897 | 78,614 |
Uncertain income tax positions | 8,172 | 7,933 |
Total liabilities | 217,069 | 86,547 |
Commitments and contingencies (Note 6) | ||
Stockholders' Equity: | ||
Preferred stock (par value $0.01 per share; 10,000,000 shares authorized; 0 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively) | 0 | 0 |
Common stock (par value $0.01 per share; 100,000,000 shares authorized; 73,090,955 and 71,923,550 shares issued and outstanding as of September 30, 2017 and December 31, 2016, respectively) | 731 | 719 |
Additional paid in capital | 273,909 | 256,529 |
Unrealized loss on available-for-sale securities, net of tax | (238) | (302) |
Notes receivable from stockholders | (21) | (21) |
Retained earnings (accumulated deficit) | (168,364) | 12,664 |
Total stockholders' equity | 106,017 | 269,589 |
Total liabilities and stockholders' equity | $ 323,086 | $ 356,136 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 3,485 | $ 6,144 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 73,090,955 | 71,923,550 |
Common stock, shares outstanding (in shares) | 73,090,955 | 71,923,550 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net revenue | $ 30,670 | $ 57,773 | $ 109,208 | $ 187,415 |
Cost of revenue | 7,472 | 4,677 | 16,032 | 15,588 |
Gross profit | 23,198 | 53,096 | 93,176 | 171,827 |
Operating expenses: | ||||
Sales and marketing | 12,825 | 16,662 | 41,775 | 56,153 |
Research and development | 19,552 | 16,516 | 46,589 | 58,440 |
General and administrative | 15,714 | 17,653 | 47,882 | 46,275 |
Charges related to litigation award and settlements | 150,850 | 155,300 | ||
Total operating expenses | 198,941 | 50,831 | 291,546 | 160,868 |
Operating income (loss) | (175,743) | 2,265 | (198,370) | 10,959 |
Other income: | ||||
Interest income | 510 | 281 | 1,410 | 762 |
Other income (expense), net | (83) | (44) | 44 | |
Total other income | 427 | 281 | 1,366 | 806 |
Income (loss) before income taxes | (175,316) | 2,546 | (197,004) | 11,765 |
Income tax expense (benefit) | (8,996) | (379) | (15,976) | 523 |
Net income (loss) | (166,320) | 2,925 | (181,028) | 11,242 |
Unrealized gain (loss) on available-for-sale securities, net of tax | 13 | (158) | 64 | 78 |
Total comprehensive income (loss) | $ (166,307) | $ 2,767 | $ (180,964) | $ 11,320 |
Net income (loss) per common share: | ||||
Basic | $ (2.30) | $ 0.04 | $ (2.51) | $ 0.16 |
Diluted | $ (2.30) | $ 0.04 | $ (2.51) | $ 0.15 |
Weighted average common shares outstanding | ||||
Basic | 72,285,146 | 71,640,536 | 72,133,417 | 71,592,145 |
Diluted | 72,285,146 | 74,328,963 | 72,133,417 | 74,545,823 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholders' Equity - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid in Capital [Member] | Unrealized Loss on Available-For-Sale Securities [Member] | Notes Receivable From Stockholders [Member] | Retained Earnings (Accumulated Deficit) [Member] |
Balance at Dec. 31, 2016 | $ 269,589 | $ 719 | $ 256,529 | $ (302) | $ (21) | $ 12,664 |
Balance (in shares) at Dec. 31, 2016 | 71,923,550 | |||||
Exercise of stock options | $ 3,550 | $ 11 | 3,539 | |||
Exercise of stock options (in shares) | 1,050,146 | 1,050,146 | ||||
Issuance of common stock- employee stock purchase plan | $ 836 | $ 1 | 835 | |||
Issuance of common stock- employee stock purchase plan (in shares) | 107,802 | |||||
Stock based compensation - stock options and awards | 13,048 | 13,048 | ||||
Unrealized gain on available-for-sale securities, net of tax | 64 | 64 | ||||
Vesting of restricted stock units (in shares) | 14,000 | |||||
Shares withheld for future payment of employees' withholding tax liability | (42) | (42) | ||||
Shares withheld for future payment of employees' withholding tax liability (in shares) | (4,543) | |||||
Net loss | (181,028) | (181,028) | ||||
Balance at Sep. 30, 2017 | $ 106,017 | $ 731 | $ 273,909 | $ (238) | $ (21) | $ (168,364) |
Balance (in shares) at Sep. 30, 2017 | 73,090,955 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (181,028) | $ 11,242 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Inventory obsolescence reserve | 5,543 | 3,244 |
Depreciation and amortization | 5,505 | 4,534 |
Stock-based compensation | 13,048 | 17,471 |
Deferred income tax benefit | (8,505) | (6,494) |
Excess tax benefits on stock options and awards | (675) | |
Amortization of investment discount | 942 | 1,592 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,595) | 13,711 |
Inventories | 705 | 3,009 |
Prepaid expenses and other current assets | (10,855) | (662) |
Accounts payable, accrued expenses and other current liabilities | (10,117) | (12,870) |
Deferred revenue | 940 | |
Accrued litigation award and settlements | 137,033 | |
Net cash provided by (used in) operating activities | (49,384) | 34,102 |
Cash flows from investing activities: | ||
Purchase of investments | (108,503) | (85,482) |
Proceeds from sales of investments | 22,303 | 7,146 |
Proceeds from maturities of investments | 75,951 | 75,971 |
Purchases of property and equipment | (13,598) | (7,349) |
Net cash used in investing activities | (23,847) | (9,714) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 836 | 1,576 |
Excess tax benefits on stock options and awards | 675 | |
Shares withheld for future payment of employees' withholding tax liability | (42) | |
Proceeds from exercise of stock options | 3,550 | 3,475 |
Repurchase of common stock | (16,100) | |
Net cash provided by (used in) financing activities | 4,344 | (10,374) |
Change in cash and cash equivalents | (68,887) | 14,014 |
Cash and cash equivalents, beginning of period | 104,642 | 79,515 |
Cash and cash equivalents, end of period | 35,755 | 93,529 |
Supplemental cash flow disclosures: | ||
Cash paid for income taxes | 1,917 | 9,254 |
Non-cash capital expenditures | $ 2,666 | $ 71 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | 1. Nature of Business and Basis of Presentation Insys Therapeutics, Inc., which was incorporated in Delaware in June 1990, and our subsidiaries (collectively, “we,” “us,” and “our”) maintain headquarters in Chandler, Arizona. We are a commercial-stage specialty pharmaceutical company that develops and commercializes innovative supportive care products. As of September 30, 2017, we have two marketed products: SUBSYS®, a proprietary sublingual fentanyl spray for BTCP in opioid-tolerant adult patients; and SYNDROS®, a proprietary, orally administered liquid formulation of dronabinol for the treatment of CINV and anorexia associated with weight loss in patients with AIDS. The accompanying condensed consolidated financial statements are unaudited and have been prepared in accordance with U.S. GAAP, pursuant to rules and regulations of the SEC. Certain information and footnote disclosures have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying condensed consolidated financial statements include normal recurring adjustments that are necessary for a fair presentation of the results for the interim periods presented. These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto for the fiscal year ended December 31, 2016, included in our Annual Report on Form 10-K. The results of operations for the three and nine months ended September 30, 2017 and 2016 are not necessarily indicative of results to be expected for the full fiscal year or any other periods. The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make a number of estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related to revenue recognition (which is affected by prescriptions dispensed, wholesaler discounts, patient discount programs, rebates, and chargebacks), inventories, legal liabilities, stock-based compensation expense, and deferred tax valuation allowances. We base our estimates on historical experience and on various other assumptions that are believed by management to be reasonable under the circumstances. Actual results may materially differ from these estimates. Certain prior period amounts have been reclassified to conform with current period presentation. All significant intercompany balances and transactions have been eliminated in the accompanying unaudited condensed consolidated financial statements. Recently Adopted Accounting Pronouncements Effective January 1, 2017, we adopted ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Among other requirements, the new guidance requires all tax effects related to share-based payments at settlement (or expiration) to be recorded through the income statement. Previously, tax benefits in excess of compensation cost ("windfalls") were recorded in equity, and tax deficiencies ("shortfalls") were recorded in equity to the extent of previous windfalls, and then to the income statement. As required, this change was applied prospectively to all excess tax benefits and tax deficiencies resulting from settlements. Under the new guidance, the windfall tax benefit is to be recorded when it arises, subject to normal valuation allowance considerations. Excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable were recorded through a cumulative effect adjustment as of the date of the adoption. As required, upon adoption, this change was applied on a modified retrospective basis, with a cumulative effect adjustment of change in accounting principle of approximately $368,000 as a deferred tax asset with a corresponding valuation allowance of $368,000, which were offset in retained earnings. Additionally, our condensed consolidated statement of cash flows now presents excess tax benefits as an operating activity, adjusted prospectively with no adjustments made to prior periods. Additionally, ASU No. 2016-09 addressed the presentation of employee taxes paid on the statement of cash flows. We are now required to present the cost of shares withheld from the employee to satisfy the employees’ income tax liability as a financing activity on the statement of cash flows rather than as an operating cash flow. This change was applied on a retrospective basis, as required, but did not impact the condensed consolidated statement of cash flows for the nine months ended September 30, 2016. ASU 2016-09 also permits entities to make an accounting policy election related to how forfeitures will impact the recognition of compensation cost for stock-based compensation to either estimate the total number of awards for which the requisite service period will not be rendered, as currently required, or to account for forfeitures as they occur. Upon adoption of ASU 2016-09, we elected to change our accounting policy to account for forfeitures as they occur. As required, this change was applied on a modified retrospective basis; however, as of December 31, 2016, we had estimated no forfeitures relating to the outstanding equity awards. As a result, no adjustment was required. Going forward, the adoption of ASU 2016-09 could cause volatility in the effective tax rate, as the excess tax benefits associated with the exercise of stock options could generate a significant discrete income tax benefit in a particular interim period, potentially creating volatility in net income and net income per share period-to-period and period-over-period. Effective January 1, 2017, we adopted ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Prior to January 1, 2017, we measured inventory at the lower of cost or market. This guidance requires us to measure inventory at the lower of cost and NRV, which eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Recent Accounting Pronouncements In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Specifically, the ASU requires modification accounting to a share-based payment award unless all of the following are the same immediately before and after the change: the award’s fair value; the award’s vesting conditions; and the award’s classification as an equity instrument or a liability instrument. The amendments should be applied prospectively to an award modified on or after the adoption date, and are effective for fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. We are currently evaluating the impact of this amendment on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, to amend the amortization period for certain purchased callable debt securities held at a premium. The ASU shortens the amortization period for the premium to the earliest call date. Under current U.S. GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments should be applied on a modified retrospective basis and are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the impact of this amendment on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current U. S. GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party, which is an exception to the principle of comprehensive recognition of current and deferred income taxes in U. S. GAAP. The amendments in this update eliminate the exception for an intra-entity transfer of an asset other than inventory. The amendments should be applied on a modified retrospective transition basis, and are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. We are currently evaluating the impact of these amendments on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments effected by this ASU affect entities required to present a statement of cash flows and provide specific guidance on a variety of cash flow issues to reduce current and potential future diversity in practice. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and early adoption is permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments should be applied using a retrospective transition method to each period presented. We are currently evaluating the impact of these amendments on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments effected by this ASU affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income and are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the timelier recognition of losses. We are currently evaluating the impact of these amendments on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases: (Topic 842), to provide guidance on recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements, specifically differentiating between different types of leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from all leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP guidance. There continues to be a differentiation between finance leases and operating leases. However, the principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases should be recognized in the balance sheet. The accounting applied by a lessor is largely unchanged from that applied under previous U.S. GAAP guidance. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commenced before the effective date in accordance with previous U.S. GAAP guidance unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous U.S. GAAP guidance. We are currently evaluating the impact of these amendments on our consolidated financial statements and related disclosures; however, based on our current operating leases, we do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is not permitted. These amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. We are currently evaluating the impact of these amendments on our consolidated financial statements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new standard aims to achieve a consistent application of revenue recognition within the United States, resulting in a single revenue model to be applied by reporting companies under U.S. GAAP. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is required to be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. In March 2016 and April 2016, the FASB issued ASU No. 2016-08 and ASU No. 2016-10, respectively, which further clarified the implementation guidance on principal versus agent considerations contained in ASU No. 2014-09 and the identification of performance obligations and licensing, respectively. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, which provides clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts at transition. These standards will be effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is permitted, but not before December 15, 2016, the original effective date of the standard. We are currently analyzing ASU 2014-09, and the related ASUs, to evaluate the impact of the new standard on existing contracts with our customers and will complete our analysis by December 31, 2017. As part of our analysis, we initiated a contract review process which includes an evaluation of our performance obligations and variable consideration. Our evaluation is still ongoing; however, based on the evaluation of our current contracts and revenue stream, most will be recorded consistently under both the current and new standard. We primarily sell products and recognize revenue upon delivery to customers, at which point the earnings process is deemed to be complete. Our performance obligations are clearly identifiable and we do not anticipate significant changes to the assessment of such performance obligations or the timing of our revenue recognition upon adoption of the new standard. We believe our primary business processes are consistent with the principles contained in the ASU. We are evaluating if any changes to those processes, our internal controls or systems are needed upon adoption of the new standard, and will complete our evaluation by December 31, 2017. We plan to adopt the new guidance on January 1, 2018, using the modified retrospective method applied to those contracts which were not completed as of that date. Upon adoption, we will recognize the cumulative effect of adopting this guidance as an adjustment to the opening balance of accumulated deficit. We continue to evaluate the impact of the new standard on our financial statement disclosures and will complete the evaluation by December 31, 2017. Additionally, we will continue to monitor industry activities and any additional guidance provided by regulators, standards setters, or the accounting profession and adjust our assessment and implementation plans accordingly. |
Note 2 - Revenue Recognition
Note 2 - Revenue Recognition | 9 Months Ended |
Sep. 30, 2017 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 2. Revenue Recognition We recognize revenue from the sale of SUBSYS® and SYNDROS®. Revenue is recognized when (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred and title has passed, (iii) the price is fixed or determinable and (iv) collectability is reasonably assured. SUBSYS® was commercially launched in March 2012 and is monitored by an FDA-mandated REMS program known as the TIRF REMS. We sell SUBSYS® in the United States to wholesale pharmaceutical distributors and directly to retail pharmacies, collectively our customers, subject to rights of return within a period beginning six months prior to, and ending 12 months following, product expiration. SUBSYS® currently has a shelf life of 36 or 48 months from the date of manufacture, depending on the manufacture date. We record revenue for SUBSYS® at the time the customer receives the shipment. SYNDROS® was commercially launched in July 2017. We sell SYNDROS® in the United States to wholesale pharmaceutical distributors and directly to retail pharmacies, collectively our customers, subject to rights of return within a period beginning six months prior to, and ending We recognize estimated product sales allowances as a reduction of product sales in the same period the related revenue is recognized. Product sales allowances are based on amounts owed or to be claimed on the related sales. These estimates take into consideration the terms of our agreements with customers and third-party payers and the levels of inventory within the distribution channels that may result in future discounts taken. In certain cases, such as patient assistance programs, we recognize the cost of patient discounts as a reduction of revenue based on estimated utilization. If actual future results vary, we may need to adjust these estimates, which could have an effect on product revenue in the period of adjustment. Our product sales allowances include: Product Returns. We allow customers to return product for credit beginning six months prior to, and ending 12 months following, the product expiration date. We have monitored actual return history since product launch, which provides us with a basis to reasonably estimate future product returns, taking into consideration the shelf life of product at the time of shipment, shipment and prescription trends, estimated distribution channel inventory levels, and consideration of the introduction of competitive products. Because of the shelf life of our products and our return policy of issuing credits on returned product that is within six months before, and up to 12 months following, the product expiration date, there may be a significant period of time between when the product is shipped and when we issue credits on returned product. Accordingly, we may have to adjust these estimates, which could have an effect on product sales and earnings in the period of adjustment. The allowance for product returns is included in accrued sales allowances. Wholesaler and Retailer Discounts. We offer discounts to certain wholesale distributors and specialty retailers based on contractually determined rates. We accrue the discount as a reduction of receivables due from the wholesalers and retailers upon shipment to the respective wholesale distributors and retail pharmacies. Prompt Pay Discounts . We offer cash discounts to our customers, generally 2% of the sales price, as an incentive for prompt payment. We account for cash discounts by reducing accounts receivable by the full amount of the discount. Stocking Allowances . We may offer discounts and extended payment terms, generally in the month of the initial commercial launch of a new product and on the first order made by certain wholesale distributors and retail pharmacies based on contractually determined rates. We accrue the discount as a reduction of receivables due from the wholesalers and retailers upon shipment to the respective wholesale distributors and retail pharmacies. Patient Discount Programs . We offer discount card programs to patients, in which patients receive discounts on their prescriptions that are reimbursed by us to the retailer. We estimate the total amount that will be redeemed based on a percentage of actual redemptions applied to inventory in the distribution and retail channels. The allowance for patient discount programs is included in accrued sales allowances. Rebates . We participate in certain rebate programs, which provide discounted prescriptions to qualified insured patients. Under these rebate programs, we pay a rebate to the third-party administrator of the program, generally two to three months after the quarter in which prescriptions subject to the rebate are filled. We estimate and accrue these rebates based on current and estimated future contract prices, historical and estimated future percentages of products sold to qualified patients and estimated levels of inventory in the distribution channel. The allowance for rebates is included in accrued sales allowances. Chargebacks. We provide discounts primarily to authorized users of the FSS of the General Services Administration under an FSS contract negotiated by the Department of Veterans Affairs and various organizations under Medicaid contracts and regulations. These organizations purchase products from the wholesale distributors at a discounted price, and the wholesale distributors then charge back to us the difference between the current retail price and the price the organization paid for the product. We estimate and accrue chargebacks based on estimated wholesaler inventory levels, current contract and estimated future prices and historical chargeback activity. Estimated chargebacks are recognized as a reduction of revenue in the same period the related revenue is recognized. The allowance for chargebacks is included as a reduction to accounts receivable. |
Note 3 - Short-term and Long-te
Note 3 - Short-term and Long-term Investments | 9 Months Ended |
Sep. 30, 2017 | |
Schedule Of Investments [Abstract] | |
Short-Term and Long-Term Investments | 3. Short-Term and Long-Term Investments Our policy for short-term and long-term investments is to establish a high-quality portfolio that preserves principal, meets liquidity needs, avoids inappropriate concentrations, and delivers an appropriate yield in relationship to our investment guidelines and market conditions. Short-term and long-term investments consist of corporate and various government agency and municipal debt securities, commercial paper, as well as certificates of deposit that have maturity dates that are greater than 90 days. Certificates of deposit and commercial paper are carried at cost, which approximates fair value. We classify our marketable securities as available-for-sale in accordance with FASB ASC No. 320, Investments — Debt and Equity Securities. Available-for-sale securities are carried at fair value with unrealized gains and losses reported in stockholders’ equity, net of related tax effects. There were no reclassifications on available-for-sale securities during the three and nine months ended September 30, 2017 and 2016. A decline in the market value of any available-for-sale security below cost that is deemed to be other than temporary results in impairment of the fair value of the investment. Investments consisted of the following at September 30, 2017 (in thousands): Cost Unrealized Gains Unrealized Losses Other- Than- Temporary Impairment Losses Fair Value Cash and Cash Equivalents Short-term Investments Long-term Investments Cash $ 10,266 $ — $ — $ — $ 10,266 $ 10,266 $ — $ — Money market securities 22,493 — — — 22,493 22,493 — — Marketable securities: Certificates of deposit 24,067 — — — 24,067 — 11,988 12,079 Commercial paper 10,462 — — — 10,462 1,498 8,964 — Corporate securities 60,183 2 (113 ) — 60,072 — 38,111 21,961 Federal agency securities 36,365 — (117 ) — 36,248 1,498 14,697 20,053 Municipal securities 13,562 1 (11 ) — 13,552 — 12,131 1,421 Total marketable securities 144,639 3 (241 ) — 144,401 2,996 85,891 55,514 $ 177,398 $ 3 $ (241 ) $ — $ 177,160 $ 35,755 $ 85,891 $ 55,514 Investments consisted of the following at December 31, 2016 (in thousands): Cost Unrealized Gains Unrealized Losses Other- Than- Temporary Impairment Losses Fair Value Cash and Cash Equivalents Short-term Investments Long-term Investments Cash $ 49,331 $ — $ — $ — $ 49,331 $ 49,331 $ — $ — Money market securities 54,015 — — — 54,015 54,015 — — Marketable securities: Certificates of deposit 26,114 — — — 26,114 — 13,855 12,259 Commercial paper 1,485 — — — 1,485 — 1,485 — Corporate securities 39,562 — (135 ) — 39,427 500 25,681 13,246 Federal agency securities 30,660 4 (92 ) — 30,572 — 10,854 19,718 Municipal securities 35,811 2 (81 ) — 35,732 796 26,363 8,573 Total marketable securities 133,632 6 (308 ) — 133,330 1,296 78,238 53,796 $ 236,978 $ 6 $ (308 ) $ — $ 236,676 $ 104,642 $ 78,238 $ 53,796 The amortized cost and estimated fair value of the marketable securities by maturity, are shown below (in thousands): September 30, 2017 December 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Marketable securities: Due in one year or less $ 89,221 $ 89,166 $ 80,092 $ 80,027 Due after one year through 5 years 54,448 54,265 53,540 53,303 Due after 5 years through 10 years — — — — Due after 10 years 970 970 — — $ 144,639 $ 144,401 $ 133,632 $ 133,330 The following table shows the gross unrealized losses and the fair value of our investments, with unrealized losses that are not deemed to be other-than-temporarily impaired aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): September 30, 2017 December 31, 2016 Less Than 12 Months Greater Than 12 Months Less Than 12 Months Greater Than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Marketable securities: Corporate securities $ 48,616 $ (93 ) $ 7,359 $ (21 ) $ 38,027 $ (134 ) $ 401 $ (1 ) Federal agency securities 26,359 (58 ) 6,702 (59 ) 26,449 (91 ) 1,217 (1 ) Municipal securities 4,412 (4 ) 1,162 (6 ) 30,373 (81 ) 100 — $ 79,387 $ (155 ) $ 15,223 $ (86 ) $ 94,849 $ (306 ) $ 1,718 $ (2 ) We did not have any |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurement | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 4. Fair Value Measurement FASB ASC No. 820, Fair Value Measurement, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. It also establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: Level 1: Observable inputs such as quoted prices in active markets; Level 2: Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. At September 30, 2017 and December 31, 2016, we held short-term and long-term investments, as discussed in Note 3, that are required to be measured at fair value on a recurring basis. Substantially all available-for-sale investments held by us at September 30, 2017 and December 31, 2016 have been valued based on Level 2 inputs. Available-for-sale securities classified within Level 2 of the fair value hierarchy are valued utilizing reports from an independent third-party public quotation service based on closing prices on the last business day of the period presented. In addition, we use the public quotation service to perform price testing by comparing quoted prices listed in reports provided by the asset managers that hold our investments to quotes listed through the public quotation service. These asset managers utilize an independent pricing source to obtain quotes for most fixed income securities and utilize internal procedures to validate the prices obtained. Our Level 3 asset represents our investment in a long-term corporate convertible promissory note and a warrant to purchase shares issued in connection with the convertible promissory note, which converted to convertible preferred stock on December 31, 2016. This stock is not listed on any security exchange. The fair value of the preferred stock approximates its carrying value at September 30, 2017 and December 31, 2016. Our investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 at September 30, 2017 were as follows (in thousands): Fair Value Measurement at Reporting Date Total Quoted Prices in active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Marketable securities: Certificates of deposit $ 24,067 $ — $ 24,067 $ — Commercial paper 10,462 — 10,462 — Corporate securities 60,072 — 59,554 518 Federal agency securities 36,248 — 36,248 — Municipal securities 13,552 — 13,552 — Total assets measured at fair value $ 144,401 $ — $ 143,883 $ 518 Our investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 at December 31, 2016 were as follows (in thousands): Fair Value Measurement at Reporting Date Total Quoted Prices in active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Marketable securities: Certificates of deposit $ 26,114 $ — $ 26,114 $ — Commercial paper 1,485 — 1,485 — Corporate securities 39,427 — 38,927 500 Federal agency securities 30,572 — 30,572 — Municipal securities 35,732 — 35,732 — Total assets measured at fair value $ 133,330 $ — $ 132,830 $ 500 The following table presents additional information about assets measured at fair value on a recurring basis and for which we utilize Level 3 inputs to determine fair value for the three and nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Convertible stock Balance, beginning of period $ 518 $ 500 $ 500 $ — Change in fair value — — 18 — Purchases — — — 500 Balance, end of period $ 518 $ 500 $ 518 $ 500 |
Note 5 - Inventories, Net
Note 5 - Inventories, Net | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | 5. Inventories, net Inventories are stated at lower of cost or NRV. Cost, which includes amounts related to materials and costs incurred by our contract manufacturers, is determined on a first-in, first-out basis. Inventories are reviewed periodically for potential excess, dated or obsolete status. Management evaluates the carrying value of inventories on a regular basis, taking into account such factors as historical and anticipated future sales compared to quantities on hand, the price we expect to obtain for products in their respective markets compared with historical cost and the remaining shelf life of goods on hand. The components of inventories, net of allowances, are as follows (in thousands): September 30, December 31, 2017 2016 Finished goods $ 3,585 $ 8,408 Work-in-process 7,610 6,183 Raw materials and supplies 7,229 5,823 Total inventories 18,424 20,414 Plus: non-current raw materials and supplies and finished goods 1,999 6,257 $ 20,423 $ 26,671 As of September 30, 2017 and December 31, 2016, raw materials inventories consisted of raw materials used in the manufacture of the API in our U.S.-based, state-of-the-art dronabinol manufacturing facility and component parts and packaging materials used in the manufacture of SUBSYS® and SYNDROS®. Work-in-process consists of actual production costs, including facility overhead and tolling costs of in-process dronabinol, SUBSYS® and SYNDROS® products. Finished goods inventories consisted of finished SUBSYS® and SYNDROS® products and deferred SYNDROS® cost of revenue of $58,000. Non-current raw materials and supplies and finished goods represent those inventories not expected to be consumed or sold within 12 months of the balance sheet date and are included in other assets in our condensed consolidated balance sheets. As of September 30, 2017 and December 31, 2016, all work-in-process inventory is expected to be used within 12 months of the balance sheet date and, therefore, is classified as current inventory. We maintain an allowance for excess and obsolete inventory, as well as inventory where its cost is in excess of its NRV. Inventories at September 30, 2017 and December 31, 2016 were reported net of these reserves of $13,100,000 and $6,800,000, respectively. During the three months ended September 30, 2017 and 2016, we increased these reserves by $3,300,000 and $1,900,000, respectively. During the nine months ended September 30, 2017 and 2016, we increased these reserves by $6,300,000 and $3,200,000, respectively. |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Legal Matters Other than the matters that we have disclosed below, we from time to time become involved in various ordinary course legal and administrative proceedings, which include intellectual property, commercial, governmental and regulatory investigations, employee related issues and private litigation, which we do not currently believe are either individually or collectively material. We record accruals for contingencies when it is probable that a liability has been incurred and the amount can be reasonably estimated. These accruals are adjusted periodically as assessments change or additional information becomes available. If the reasonable estimate of a probable loss is a range, and no amount within the range is a better estimate, the minimum amount in the range is accrued. If a loss is not probable or a probable loss cannot be reasonably estimated, no liability is recorded. We have established reserves for certain of our legal matters. Our loss estimates are generally developed in consultation with outside counsel and outside accounting experts and are based on analyses of potential outcomes. As legal and governmental proceedings, disputes and investigations are inherently unpredictable and in part, beyond our control, unless otherwise indicated, we cannot reasonably predict the outcome of these legal proceedings, nor can we estimate the amount of loss, or range of loss, if any, that may result from these proceedings. While our liability in connection with certain claims cannot be currently estimated, the resolution in any reporting period of one or more of these matters could have a significant impact on our consolidated financial condition, results of operations and cash flows for that future period, could ultimately have a material adverse effect on our consolidated financial position and could cause the market value of our common shares to decline. While we believe we have valid defenses in these matters, litigation and governmental and regulatory investigations are inherently uncertain, and we may in the future incur material judgments or enter into material settlements of claims. Government Proceedings Like other companies in the pharmaceutical industry, we are subject to extensive regulation by national, state and local government agencies in the United States. As a result, interaction with government agencies occurs in the normal course of our operations. The following is a brief description of pending governmental investigations that we believe are potentially or actually material at this time. It is possible that criminal charges and substantial payments, fines and/or civil penalties or damages or exclusion from federal health care programs or other administrative actions, as well as a corporate integrity agreement or similar government mandated compliance document that institutes significant restrictions or obligations, could result for us from any government investigation or proceeding. In addition, even certain investigations that are not discussed below and which we do not deem to be material at this time could be determined to be material and could have a material adverse effect on our financial condition, results of operations and cash flows. HHS Investigation . We received a subpoena, dated December 9, 2013, from the Office of Inspector General of the HHS in connection with an investigation of potential violations involving HHS programs. This subpoena was issued in connection with an investigation by the U.S. Attorney’s Office for the Central District of California and requested documents regarding our business, including the commercialization of SUBSYS®. We continue to cooperate with this investigation and have produced substantial documents in response to the subpoena and have provided other requested information. HIPAA Investigation . On September 8, 2014, we received a subpoena issued pursuant to HIPAA from the U.S. Attorney’s Office for the District of Massachusetts. The subpoena requested documents regarding SUBSYS®, including our sales and marketing practices related to this product. This investigation also relates to activities in our patient services hub. We continue to cooperate with this investigation and have produced substantial documents in response to the subpoena and have provided other requested information. DOJ Investigation . We collectively refer to the HHS and HIPAA investigations discussed above as the “DOJ Investigation”. In connection with our cooperation, we have been engaged in discussions with the DOJ about these matters, including a resolution of potential liability exposure. Management accrued, as of September 30, 2017, an aggregate of $150,000,000, which represents our current best estimate of the minimum liability exposure which we expect to be paid out over five years in connection with the DOJ Investigation. This current best estimate, on the terms reflected in the foregoing sentence, reflects a minimum exposure at which management has determined a willingness to settle these matters. The accrual was recorded in accrued litigation award and settlements on our condensed consolidated balance sheets and as an operating expense on our condensed consolidated statements of operations and comprehensive income (loss). There can be no assurance that future discussions with the government to resolve these matters will be successful, that the approvals we need will be obtained or that any potential settlement will be agreed to on terms and conditions acceptable to us or the DOJ. We are unable to predict when these matters will be resolved or what further action, if any, the government will take in connection with them. In addition, there are ongoing discussions related to contingency based payments to the government associated with future events, that if triggered, would require payments of up to $75,000,000 in the aggregate. At this time, we are unable to predict if these future events are probable and as a result, no accrual has been recorded. Based on the ongoing uncertainties and potentially wide range of outcomes and contingencies associated with any potential resolution of the matter under investigation by the DOJ, the ultimate amount of potential liability may materially exceed the $150,000,000 accrual we have established. This accrual does not currently meet the more likely than not standard for tax deductibility; therefore, we have recognized no tax benefit for it in the condensed consolidated financial statements. Due to the uncertainty around the ultimate outcome of this matter, it is possible that some or all of this accrual may meet the more likely than not standard in the future, at which time the benefit would be recognized. Former Employee and Health Care Practitioner Related Investigations. On or about June 23, 2015, a nurse practitioner located in Connecticut, who served on our speaker bureau in connection with our speaker programs designed to educate and promote product awareness and safety for external health care providers, pled guilty to violating the federal Anti-Kickback Statute in connection with payments of approximately $83,000 from us. A number of our former employees have been charged in criminal proceedings related to our federal investigations and below we set forth certain information related thereto. On or about February 18, 2016, one of our former sales employees located in Alabama pled guilty to a conspiracy to violate the federal Anti-Kickback Statute in regard to two Alabama health care professionals who prescribed our product SUBSYS®. These two Alabama health care professionals, who served on our speaker bureau in connection with our speaker programs designed to educate and promote product awareness and safety for external health care providers, were charged by the U.S. Attorney’s Office for the Southern District of Alabama, and on or about February 23, 2017, were convicted on 19 of 20 counts brought against them, which included charges related to distribution of a controlled substance, drug conspiracy, health care fraud conspiracy and money laundering. On or about July 11, 2017, a former district sales manager pled guilty to conspiring to violate the federal Anti-Kickback Statute related to her activities in the Southern District of Alabama, as well as the Middle and Southern Districts of Florida, including in connection with the two convicted Alabama health care providers. On or about June 19, 2016, a former district sales manager in New York and a former sales representative in New Jersey were charged in a federal court in Manhattan, New York, with violating the federal Anti-Kickback Statute in connection with interacting with health care professionals who prescribed our product and served on our speaker bureau. On June 1, 2017, the former district sales manager was charged in a superseding indictment with additional charges of honest services wire fraud and aggravated identity theft in connection with falsifying sign-in sheets for our speaker programs. Both of these former employees in New York and New Jersey have pled not guilty. On or about October 13, 2016, a former prior authorization specialist and manager of our patient services hub was charged by the U.S. Attorney’s Office for the District of Massachusetts with conspiracy to commit wire fraud in connection with our provision of prior authorization support related to our patient services hub. On April 5, 2017, the U.S. Attorney’s Office for the District of Massachusetts filed an information charging this former employee with one count of wire fraud conspiracy; the former employee pled guilty to that information on June 19, 2017. On or about December 8, 2016, the U.S. Attorney’s Office for the District of Massachusetts issued an indictment against six former employees, including Michael L. Babich, our former President, CEO and director, on charges including racketeering conspiracy, conspiracy to commit mail fraud, conspiracy to commit wire fraud, conspiracy to violate the Anti-Kickback Statute and forfeiture (the “Original Indictment”). On or about October 26, 2017, the U.S. Attorney’s Office for the District of Massachusetts issued a superseding indictment in connection with this Original Indictment and added charges against our founder and former President, CEO and director, Dr. John N. Kapoor. After Dr. Kapoor’s indictment, he agreed to put his ownership in our common stock in a trust to be controlled independently and he resigned from our board of directors (and the Science and Research and Development Committee), which would effectively result in ending the remaining involvement he had in the management of the Company. On or about February 8, 2017, a former district sales manager in the Northeast was charged in federal court in New Haven, Connecticut, with violating the federal Anti-Kickback Statute in connection with interacting with health care professionals who prescribed our product and served on our speaker bureau. On or about October 20, 2017, a health care professional in Rhode Island, who served on our speaker bureau in connection with our speaker programs designed to educate and promote product awareness and safety for external health care providers, pled guilty to health care fraud and conspiracy to receive kickbacks in connection with payments of approximately $188,000 from us. Except as otherwise indicated, we understand that each of these indicted individuals have entered pleas of not guilty to the charges against them. Given the ongoing investigations related to our company and our current and former employees, as well as other individuals associated with our company, including health care professionals, it is possible that additional individual or company criminal charges and convictions and pleas could result from our ongoing federal and state government investigations and related proceedings and the foregoing disclosure and the disclosure below is merely intended to provide general insight into the comprehensive nature of the scope and breadth of investigations that are being conducted related to our company and is not, nor is it intended to be, an exhaustive listing of every charge, conviction or pleading in connection with our company. We continue to assess these matters to ensure we have an effective compliance program. State Related Investigations . We have received CIDs or subpoenas, as the case may be, from at least each of the Office of the Attorney General (or similarly named and authorized office) of the State of Arizona, Colorado, Florida, Illinois, Kentucky, Maryland, Massachusetts, Minnesota, Missouri, New Hampshire, New Jersey, New York, North Carolina, Oregon, Pennsylvania and Washington. Moreover, we have received an administrative subpoena from the California Insurance Commissioner. In addition, we understand that numerous physicians practicing within several of the aforementioned states have received subpoenas from each applicable state Attorney General or Department of Justice office in connection with interactions with us. Generally, these CIDs and subpoenas request documents regarding SUBSYS®, including our sales and marketing practices related to SUBSYS® in the applicable state, as well as our patient services hub. We are cooperating with each of these investigations and have produced documents in response to these CIDs, subpoenas and related requests for information from each office. In connection with the investigation by the ODOJ, we entered into a settlement agreement with the ODOJ, referred to as an AVC, and made monetary payments totaling approximately $1,100,000. The AVC requires us to maintain certain controls and processes around our promotional and sales activity related to SUBSYS® in Oregon. This AVC expressly provides that we do not admit any violation of law or regulation. This settlement was reached as a result of our cooperation with the ODOJ's investigation and after producing documents in response to certain CIDs and related requests for information from the ODOJ. All monetary payments in connection with this settlement were made prior to December 31, 2015. In connection with the investigation by the State of Illinois, on August 25, 2016, the Illinois Office of the Attorney General filed a complaint on behalf of the State of Illinois against us in the Circuit Court of Cook County, Illinois, Chancery Division. The complaint asserts a claim for violation of the Illinois Consumer Fraud and Deceptive Business Practices Act in connection with the sales and marketing of SUBSYS® in Illinois. In settlement of this action, on August 18, 2017, the Circuit Court of Cook County entered a Final Judgment and Consent Decree, which, among other things, provided for a monetary payment of $4,450,000 and requires us to maintain certain controls and processes around our promotional and sales activity related to SUBSYS® in Illinois. The Final Judgment and Consent Decree expressly provides that we do not admit any violation of law or regulation. All monetary payments in connection with this Final Judgment and Consent Decree were accrued in the consolidated balance sheet as of June 30, 2017 and the payments in connection with this settlement were made prior to September 30, 2017. In connection with the investigation by the State of New Hampshire, we entered into a settlement agreement with the State of New Hampshire referred to as an assurance of discontinuance, and made monetary payments totaling approximately $2,900,000 to the State of New Hampshire and a charitable contribution of $500,000 to be used by a New Hampshire charitable foundation in preventing or remediating problems related to abuse, misuse or misprescribing of opioid drugs. The assurance of discontinuance expressly provides that we do not admit any violation of law or regulation and requires us to maintain certain controls and processes around our promotional and sales activity related to SUBSYS® in New Hampshire. This settlement was reached as a result of our cooperation with the State of New Hampshire investigation and after producing documents in response to certain requests for information by the State of New Hampshire. These amounts were accrued in the consolidated balance sheet as of December 31, 2016 and the payments in connection with this settlement were made during the three months ended March 31, 2017. In connection with the investigation by the State of Massachusetts, we entered into a settlement with the State of Massachusetts, which was entered by the Superior Court of the Commonwealth of Massachusetts in a Final Judgment by Consent after the close of the quarter. The Final Judgment by Consent provided for a monetary payment of $500,000 and requires us to maintain certain controls and processes around our promotional and sales activity related to Massachusetts. The Final Judgment by Consent expressly provides that we do not admit any liability or wrongdoing. The amount of the monetary payment was accrued in the consolidated balance sheet as of September 30, 2017 and the payments in connection with this settlement were made after September 30, 2017. In connection with the investigation by the State of Arizona, on August 30, 2017, the Arizona Attorney General filed a complaint on behalf of the State of Arizona against us in the Maricopa County, Arizona Superior Court. The complaint asserts claims for violations of the Arizona Consumer Fraud Act in connection with the sales and marketing of SUBSYS® in Arizona and in connection with our patient services hub. The complaint seeks a permanent injunction preventing us from engaging in practices in violation of the Arizona Consumer Fraud Act, restitution to consumers and other persons, disgorgement of profits, civil penalties, and investigative costs. Our response is due on November 10, 2017. We intend to vigorously defend this matter. In connection with the investigation by the State of New Jersey, on October 5, 2017, the New Jersey Attorney General, on behalf of the State of New Jersey, and the Acting Director of the New Jersey Division of Consumer Affairs filed a complaint against us in the Superior Court of New Jersey, Chancery Division, Middlesex Vicinage. The complaint asserts claims for violations of the New Jersey Consumer Fraud Act and for violations of the New Jersey False Claims Act in connection with the sales and marketing of SUBSYS® in New Jersey and in connection with our patient services hub. The complaint seeks a permanent injunction preventing us from engaging in practices in violation of the New Jersey Consumer Fraud Act, disgorgement of profits, civil penalties, treble damages for alleged violations of the New Jersey False Claims Act, and costs and attorneys’ fees. Our response is due on November 9, 2017. We intend to vigorously defend this matter. Investigations of Health Care Professionals . In addition to the above investigations that are specifically directed at us, we have received governmental agency requests for information, including subpoenas, from at least the following governmental bodies, the USAO and/or HHS OIG of California (Los Angeles), Connecticut, Eastern District of Michigan, Florida (Jacksonville), Kansas, Middle District of Pennsylvania, New Hampshire, New Jersey, Northern District of California, Northern District of Texas, Rhode Island, Southern District of Alabama, Southern District of New York, Southern District of Ohio, Western District of New York, and the State of Maryland regarding specific health care professionals that we have interacted with in those states. On or about March 22, 2017, the U.S. Attorney’s Office for the District of New Hampshire filed an indictment against a physician assistant who served on our speaker bureau, charging him with violating the federal Anti-Kickback Statute and conspiring to violate the federal Anti-Kickback Statute in connection with payments received for serving as an Insys promotional speaker. The physician assistant pled not guilty. Opioid Litigation and Broad Investigations by Governmental Authorities . Many federal and governmental agencies are focused on the abuse of opioids in the United States and agencies such as the HHS have expressed their belief that the United States is in the midst of a prescription opioid abuse epidemic. Moreover, President Trump has declared the opioid crisis to be a public health emergency and has made it a priority to address this crisis. Common prescription drugs that contain opioids are drugs such as oxycodone, hydrocodone and fentanyl. Our product, SUBSYS®, is a fentanyl-based product in the TIRF class. Certain stakeholders in the health care community, regulatory bodies and governmental agencies may associate us with, or determine that we are a part of, this perceived opioid abuse epidemic. Like all TIRF products, our product is part of the mandatory TIRF REMS program, which is designed “to ensure informed risk-benefit decisions before initiating treatment, and while patients are treated to ensure appropriate use of TIRF medicines” and “to mitigate the risk of misuse, abuse, addiction, overdose and serious complications due to medication errors with the use of TIRF medicines.” Nevertheless, from time to time, we may be included in litigation or investigations that are directed at the abuse of opioids in the United States. For example, in May 2014, Santa Clara and Orange Counties in California filed a complaint in state court in Orange County, California against numerous pharmaceutical manufacturers alleging claims related to opioid marketing practices, including false advertising, unfair competition, and public nuisance. Despite the fact that we are not named specifically in the complaint and this lawsuit was stayed, we have received a preservation notice letter from the Office of the County Counsel for the County of Santa Clara. Additionally, we are aware that we have been named in similar lawsuits by Multnomah County in Oregon, Upshur, Bowie, and McLennan Counties in Texas, Wayne and Oakland Counties in Michigan, Fulton County in Georgia, the City of Paterson in New Jersey, the City of New Haven in Connecticut, the City of Toledo in Ohio, and Nassau, Niagara, Rensselaer and Schoharie Counties in New York. Some of these cases were filed after the close of the quarter. From time to time, we may be included in these types of litigations as a result of the fact that we market an opioid product. In addition, on March 28, 2017, the Ranking Member of the Committee on Homeland Security and Governmental Affairs of the United States Senate distributed a letter to five manufacturers of opioid products, including us, requesting documents and information intended to aid such committee in understanding the challenges industry practices pose to efforts to curb opioid addiction and stem rising prescription drug costs for the federal government. This letter requests documents regarding our business, including the commercialization of SUBSYS®. We continue to cooperate with this inquiry. With the exception of the investigations by the ODOJ, the State of New Hampshire, the State of Illinois, the State of Massachusetts, and the DOJ, which we have quantified above, we believe a loss from an unfavorable outcome of these federal and state governmental proceedings is reasonably possible and an estimate of the amount or range of loss from an unfavorable outcome is not determinable at these stages. We believe we have meritorious legal positions and will continue to represent our interests vigorously in these matters. However, responding to government investigations has and could continue to burden us with substantial legal costs in connection with defending any claims raised. Any potential resulting fines, restitution, damages and penalties, settlement payments, pleas or exclusion from federal health care programs or other administrative actions, as well as any related actions brought by stockholders or other third parties, could have a material adverse effect on our financial position, results of operations or cash flows. Additionally, these matters could also have a negative impact on our reputation and divert the attention of our management from operating our business. Federal Securities Litigation and Derivative Complaints Federal Securities Litigation. On or about February 2, 2016, a complaint (captioned Richard Di Donato v. Insys Therapeutics, Inc., et al., Case 2:16-cv-00302-NVW) was filed in the United States District Court for the District of Arizona against us and certain of our current and former officers. The complaint was brought as a purported class action on behalf of purchasers of our common stock between March 3, 2015 and January 25, 2016. In general, the plaintiffs allege that the defendants violated the anti-fraud provisions of the federal securities laws by making materially false and misleading statements regarding our business, operations and compliance with laws during the class period, thereby artificially inflating the price of our common stock. On June 3, 2016, the court appointed Clark Miller to serve as lead plaintiff. On June 24, 2016, the plaintiff filed a first amended complaint naming a former employee of Insys Therapeutics, Inc. as an additional defendant and extending the class period. On December 22, 2016, the plaintiff filed a second amended complaint, primarily to add allegations relating to an indictment of Michael L. Babich and certain of our former employees announced on December 8, 2016, and to extend the class period from August 12, 2014 through December 8, 2016. On January 12, 2017, the defendants moved to dismiss the second amended complaint. Oral arguments were heard by the court on July 28, 2017 and the Court granted the motion in part and denied it in part. The plaintiff subsequently moved for leave to further amend the complaint, which we opposed. The parties await a ruling on the motion to amend. The plaintiff seeks unspecified monetary damages and other relief. We continue to vigorously defend this matter. On or about March 17, 2017, a complaint (captioned Kayd Currier v. Insys Therapeutics, Inc., et al., Case 1:17-cv-01954-PAC) was filed in United States District Court for the Southern District of New York against us and certain of our current and former officers. The complaint was brought as a purported class action on behalf of purchasers of our securities between February 23, 2016 and March 15, 2017. In general, the plaintiffs allege that the defendants violated the anti-fraud provisions of the federal securities laws by making materially false and misleading statements regarding our business and financial results during the class period, thereby artificially inflating the price of our securities. On or about March 28, 2017, a second complaint making similar allegations (captioned Hans E. Erdmann v. Insys Therapeutics, Inc., et al., Case 1:17-cv-02225-PAC) was filed in the same Court. On May 31, 2017, the court consolidated the first and second complaint and appointed lead counsel in the consolidated action. On July 31, 2017, the lead counsel filed a consolidated complaint. On October 11, 2017, the Court held a pre-motion conference, at which the Court granted leave to plaintiffs to again amend the complaint. The amendment was filed on October 27, 2017, and our response is due on November 3, 2017. The plaintiffs in both actions seek unspecified monetary damages and other relief. We continue to vigorously defend this matter. Derivative Litigation. On or about August 26, 2016, Gary Hirt and Precieux Art Jewelers Inc. filed a derivative complaint in the Court of Chancery of Delaware against members of our Board of Directors and Michael L. Babich. The plaintiffs allege, among other things, that the defendants breached their fiduciary duties by (a) knowingly overseeing the implementation of an illegal sales and marketing program, (b) consciously disregarding their duty of oversight of our compliance with laws and (c) trading on the basis of material non-public information. On November 8, 2016, the plaintiffs filed an amended derivative complaint, and on January 26, 2017, the plaintiffs supplemented the amended derivative complaint, primarily to add allegations relating to the indictment of Michael L. Babich and certain of our former employees announced on December 8, 2016. On November 22, 2016, the defendants moved to dismiss the action. On or about February 2, 2017, Michael Bourque filed a derivative complaint in the Court of Chancery against members of our Board of Directors; Michael L. Babich; Franc Del Fosse, our General Counsel; and Sanga Emmanuel, our Vice President and Chief Compliance Officer. The Bourque derivative complaint contains similar claims as the other derivative complaint. All parties stipulated to consolidate the two actions, and the consolidated action is captioned In re Insys Therapeutics, Inc. Derivative Litigation, C.A. No. 12696-VCMR. Following the submission of motions for appointment as lead counsel, the Court held a hearing on March 23, 2017, and appointed counsel for Gary Hirt and Precieux Art Jewelers Inc. as lead counsel. Lead counsel is required to designate an operative complaint or file a consolidated complaint. The plaintiffs seek unspecified monetary damages and other relief derivatively on behalf of Insys Therapeutics, Inc. On or about April 28, 2017, lead counsel filed a consolidated and amended complaint which maintained the original defendants this lead counsel had included in its original complaint and did not include any additional defendants included in the Bourque complaint. On May 31, 2017, we subsequently moved to stay or to dismiss the complaint and, on or about July 28, 2017, lead counsel filed an answering brief in opposition to our motion to stay or dismiss. The Court heard oral argument on the motion to stay or to dismiss the complaint on September 19, 2017, and that motion remains pending. We continue to vigorously defend this matter. Paragraph IV Challenges On June 26, 2017, we received a Paragraph IV Notice Letter from Par Pharmaceutical related to SYNDROS®. The letter asserts that (i) the FDA received an ANDA from Par Pharmaceutical, and (ii) that Par Pharmaceutical’s formulation does not infringe SYNDROS® patents and/or that our patents for SYNDROS® are invalid. On August 3, 3017, we filed suit in United States District Court for the District of Delaware, in which we claim the ANDA was not sufficiently complete and allege patent infringement. On September 1, 2017, Par Pharmaceutical filed an answer and counterclaims, to which we have replied. We believe we have meritorious legal positions and will represent our interests vigorously in this matter. On or about August 2, 2017, we received a Paragraph IV Notice Letter from counsel for TEVA USA related to SUBSYS®. The letter asserts that (i) the FDA received an ANDA from TEVA USA and (ii) that TEVA USA’s formulation does not infringe SUBSYS® patents and/or that our patents for SUBSYS® are invalid. On September 13, 2017, we filed suit in United States District Court for the District of Delaware, in which we allege patent infringement. We believe we have meritorious legal positions and will represent our interests vigorously in this matter. On or about August 31, 2017, we received a Paragraph IV Notice Letter from counsel for Alkem Pharmaceuticals related to SYNDROS®. The letter asserts that (i) the FDA received an ANDA from Alkem Pharmaceuticals and (ii) Alkem Pharmaceuticals’ formulation does not infringe SYNDROS® patents and/or that our patents for SYNDROS® are invalid. On October 10, 2017, we filed suit in the United States District Court for the District of Delaware, in which we allege patent infringement. We believe we have meritorious legal positions and will represent our interests vigorously in this matter. General Litigation and Disputes Kottayil vs. Insys Pharma, Inc . On September 29, 2009, Insys Pharma, Inc., our wholly owned subsidiary, and certain of our officers and the five directors who comprised the Insys Pharma board of directors as of June 2009, as well as their spouses, were named as defendants in a lawsuit in the Superior Court of the State of Arizona, Maricopa County, or the Arizona Superior Court, brought by Santosh Kottayil, Ph.D., certain of his family members and a trust of which Dr. Kottayil is the trustee. Dr. Kottayil formerly served as President, Chief Scientific Officer and a director of Insys Pharma, among other positions. The complaint brought a cause of action for statutory and common law appraisal of Dr. Kottayil’s Insys Pharma common stock. The cause of action for appraisal relates to a reverse stock split that Insys |
Note 7 - Stock-based Compensati
Note 7 - Stock-based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based Compensation | 7. Stock-based Compensation Amounts recognized in the condensed consolidated statements of operations and comprehensive income (loss) with respect to our stock-based compensation plans were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Research and development $ 714 $ 1,014 $ 2,531 $ 2,938 General and administrative 4,054 7,385 10,517 14,533 Total cost of stock-based compensation $ 4,768 $ 8,399 $ 13,048 $ 17,471 Included in stock-based compensation for the three and nine months ended September 30, 2017 and 2016 was approximately $1,450,000 and $3,878,000, respectively, of expense associated with the accelerated vesting of option awards related to terminated employees. The following table summarizes stock option activity during the nine months ended September 30, 2017: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Shares Price Term (in years) (in millions) Vested and exercisable as of December 31, 2016 4,474,906 $ 9.05 Outstanding as of December 31, 2016 7,300,873 $ 12.36 Granted 2,145,150 $ 11.84 Cancelled (1,254,346 ) $ 17.90 Expired (9,834 ) $ 20.13 Exercised (1,050,146 ) $ 3.38 Outstanding as of September 30, 2017 7,131,697 $ 12.55 7.3 $ 11.9 Vested and exercisable as of September 30, 2017 4,284,780 $ 11.29 6.3 $ 11.9 As of September 30, 2017, we expected to recognize $24,654,000 of stock-based compensation for outstanding options over a weighted-average period of 2.7 years. From time to time we grant restricted stock units to certain employees and directors. Restricted stock units are valued at the closing market price of our common stock on the day of grant and the total value of the units is recognized as expense ratably over the vesting period of the grants. The following table summarizes restricted stock unit activity during the nine months ended September 30, 2017: Weighted Average Grant-Date Number of Fair Value Units Per Unit Outstanding as of December 31, 2016 — $ — Granted 379,000 $ 12.20 Exercised (14,000 ) $ 12.65 Cancelled (59,400 ) $ 12.65 Outstanding as of September 30, 2017 305,600 $ 12.09 As of September 30, 2017, we expected to recognize $2,932,000 of stock-based compensation for outstanding restricted stock units over a weighted-average period of 2.3 years. Cash received from option exercises under all stock-based payment arrangements for the nine months ended September 30, 2017 and 2016 was $3,550,000 and $3,475,000, respectively. Cash used to fund tax withholdings on stock-based compensation for the nine months ended September 30, 2017 was $42,000. For the nine months ended September 30, 2016, we recorded net reductions of $675,000 of our federal and state income tax liability, with an offsetting credit to additional paid-in capital, resulting from the excess tax benefits of stock options. Effective January 1, 2017, the adoption of ASU 2016-09 eliminated the recognition of excess tax benefits of stock options in additional paid-in capital. All excess tax benefits and tax deficiencies on stock-based payment awards are recognized as income tax expense or benefit in the condensed consolidated statements of operations and comprehensive income (loss). The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. For additional information, see Note 1, Nature of Business and Basis of Presentation. For the nine months ended September 30, 2017, we recorded net reductions of $466,000 of our federal and state income tax liability, with an offsetting credit recorded within income tax expense, resulting from the excess tax benefits of stock options. |
Note- 8 - Net Income (Loss) per
Note- 8 - Net Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | 8. Net Income (Loss) per Share Basic net income (loss) per common share is computed by dividing the net income (loss) allocable to the common stockholders by the weighted average number of common shares outstanding during the period. The diluted income per share further includes any common shares available to be issued upon exercise of outstanding stock options if such inclusion would be dilutive. The following table sets forth the computation of basic and diluted net income (loss) per common share (dollars in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Historical net income (loss) per share - Basic Numerator: Net income (loss) $ (166,320 ) $ 2,925 $ (181,028 ) $ 11,242 Denominator: Weighted average number of common shares outstanding 72,285,146 71,640,536 72,133,417 71,592,145 Basic net income (loss) per common share $ (2.30 ) $ 0.04 $ (2.51 ) $ 0.16 Historical net income (loss) per share - Diluted Numerator: Net income (loss) $ (166,320 ) $ 2,925 $ (181,028 ) $ 11,242 Denominator: Weighted average number of common shares outstanding 72,285,146 71,640,536 72,133,417 71,592,145 Effect of dilutive stock options — 2,688,427 — 2,953,678 Weighted average number of common shares outstanding 72,285,146 74,328,963 72,133,417 74,545,823 Diluted net income (loss) per common share $ (2.30 ) $ 0.04 $ (2.51 ) $ 0.15 As we have incurred a net loss for the three and nine months ended September 30, 2017, basic and diluted per share amounts are the same, since the effect of potential common share equivalents is anti-dilutive. |
Note 9 - Product Lines, Concent
Note 9 - Product Lines, Concentration of Credit Risk and Significant Customers | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Product Lines, Concentration of Credit Risk and Significant Customers | 9. Product Lines, Concentration of Credit Risk and Significant Customers We are engaged in the business of developing and selling pharmaceutical products. During the three and nine months ended September 30, 2017 and 2016 we had two product lines, SUBSYS® and SYNDROS®. Our chief operating decision-maker evaluates revenues based on product lines. The following tables summarizes our net revenue by product line, as well as the percentage of revenue by route to market (in thousands): Net Revenue by Product Line Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 SUBSYS ® $ 29,986 $ 57,773 $ 108,524 $ 187,415 SYNDROS ® 684 — 684 — Total net revenue $ 30,670 $ 57,773 $ 109,208 $ 187,415 Percent of Revenue by Route to Market Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Pharmaceutical wholesalers 63 % 66 % 62 % 69 % Specialty pharmaceutical retailers 37 % 34 % 38 % 31 % 100 % 100 % 100 % 100 % All our products are sold in the United States of America. Product shipments to our three largest pharmaceutical wholesalers accounted for 25%, 18% and 11% of total shipments and product shipments to our two largest specialty pharmaceutical retailers accounted for 25% and 13% of total shipments for the nine months ended September 30, 2017. Product shipments to our four largest pharmaceutical wholesalers accounted for 17%, 16%, 15% and 15% of total shipments and product shipments to one specialty pharmaceutical retailer accounted for 30% of total shipments for the nine months ended September 30, 2016. Our three largest pharmaceutical wholesalers’ accounts receivable balances accounted for 35%, 19% and 13% of gross accounts receivable and our two largest specialty pharmaceutical retailers’ accounts receivable balances accounted for 17% and 13% of gross accounts receivable balance as of September 30, 2017. Our four largest pharmaceutical wholesalers’ accounts receivable balances accounted for 36%, 23%, 21% and 13% of gross accounts receivable balance as of December 31, 2016. |
Nature of Business and Basis of
Nature of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective January 1, 2017, we adopted ASU No. 2016-09, Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Among other requirements, the new guidance requires all tax effects related to share-based payments at settlement (or expiration) to be recorded through the income statement. Previously, tax benefits in excess of compensation cost ("windfalls") were recorded in equity, and tax deficiencies ("shortfalls") were recorded in equity to the extent of previous windfalls, and then to the income statement. As required, this change was applied prospectively to all excess tax benefits and tax deficiencies resulting from settlements. Under the new guidance, the windfall tax benefit is to be recorded when it arises, subject to normal valuation allowance considerations. Excess tax benefits that were not previously recognized because the related tax deduction had not reduced current taxes payable were recorded through a cumulative effect adjustment as of the date of the adoption. As required, upon adoption, this change was applied on a modified retrospective basis, with a cumulative effect adjustment of change in accounting principle of approximately $368,000 as a deferred tax asset with a corresponding valuation allowance of $368,000, which were offset in retained earnings. Additionally, our condensed consolidated statement of cash flows now presents excess tax benefits as an operating activity, adjusted prospectively with no adjustments made to prior periods. Additionally, ASU No. 2016-09 addressed the presentation of employee taxes paid on the statement of cash flows. We are now required to present the cost of shares withheld from the employee to satisfy the employees’ income tax liability as a financing activity on the statement of cash flows rather than as an operating cash flow. This change was applied on a retrospective basis, as required, but did not impact the condensed consolidated statement of cash flows for the nine months ended September 30, 2016. ASU 2016-09 also permits entities to make an accounting policy election related to how forfeitures will impact the recognition of compensation cost for stock-based compensation to either estimate the total number of awards for which the requisite service period will not be rendered, as currently required, or to account for forfeitures as they occur. Upon adoption of ASU 2016-09, we elected to change our accounting policy to account for forfeitures as they occur. As required, this change was applied on a modified retrospective basis; however, as of December 31, 2016, we had estimated no forfeitures relating to the outstanding equity awards. As a result, no adjustment was required. Going forward, the adoption of ASU 2016-09 could cause volatility in the effective tax rate, as the excess tax benefits associated with the exercise of stock options could generate a significant discrete income tax benefit in a particular interim period, potentially creating volatility in net income and net income per share period-to-period and period-over-period. Effective January 1, 2017, we adopted ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. Prior to January 1, 2017, we measured inventory at the lower of cost or market. This guidance requires us to measure inventory at the lower of cost and NRV, which eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin). The guidance defines NRV as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation.” The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, to provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. Specifically, the ASU requires modification accounting to a share-based payment award unless all of the following are the same immediately before and after the change: the award’s fair value; the award’s vesting conditions; and the award’s classification as an equity instrument or a liability instrument. The amendments should be applied prospectively to an award modified on or after the adoption date, and are effective for fiscal years beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period, for reporting periods for which financial statements have not yet been issued. We are currently evaluating the impact of this amendment on our consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities, to amend the amortization period for certain purchased callable debt securities held at a premium. The ASU shortens the amortization period for the premium to the earliest call date. Under current U.S. GAAP, entities generally amortize the premium as an adjustment of yield over the contractual life of the instrument. The amendments should be applied on a modified retrospective basis and are effective for fiscal years beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. We are currently evaluating the impact of this amendment on our consolidated financial statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Current U. S. GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party, which is an exception to the principle of comprehensive recognition of current and deferred income taxes in U. S. GAAP. The amendments in this update eliminate the exception for an intra-entity transfer of an asset other than inventory. The amendments should be applied on a modified retrospective transition basis, and are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. We are currently evaluating the impact of these amendments on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The amendments effected by this ASU affect entities required to present a statement of cash flows and provide specific guidance on a variety of cash flow issues to reduce current and potential future diversity in practice. The amendments are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, and early adoption is permitted. An entity that elects early adoption must adopt all of the amendments in the same period. The amendments should be applied using a retrospective transition method to each period presented. We are currently evaluating the impact of these amendments on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments effected by this ASU affect entities holding financial assets and net investment in leases that are not accounted for at fair value through net income and are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the timelier recognition of losses. We are currently evaluating the impact of these amendments on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases: (Topic 842), to provide guidance on recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements, specifically differentiating between different types of leases. The core principle of Topic 842 is that a lessee should recognize the assets and liabilities that arise from all leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee have not significantly changed from previous U.S. GAAP guidance. There continues to be a differentiation between finance leases and operating leases. However, the principal difference from previous guidance is that the lease assets and lease liabilities arising from operating leases should be recognized in the balance sheet. The accounting applied by a lessor is largely unchanged from that applied under previous U.S. GAAP guidance. The amendments will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, and early adoption is permitted. In transition, lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The modified retrospective approach includes a number of optional practical expedients that entities may elect to apply. These practical expedients relate to the identification and classification of leases that commenced before the effective date, initial direct costs for leases that commenced before the effective date, and the ability to use hindsight in evaluating lessee options to extend or terminate a lease or to purchase the underlying asset. An entity that elects to apply the practical expedients will, in effect, continue to account for leases that commenced before the effective date in accordance with previous U.S. GAAP guidance unless the lease is modified, except that lessees are required to recognize a right-of-use asset and a lease liability for all operating leases at each reporting date based on the present value of the remaining minimum rental payments that were tracked and disclosed under previous U.S. GAAP guidance. We are currently evaluating the impact of these amendments on our consolidated financial statements and related disclosures; however, based on our current operating leases, we do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, which amended the Financial Instruments topic of the ASC to address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. The amendments will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is not permitted. These amendments should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption. We are currently evaluating the impact of these amendments on our consolidated financial statements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The new standard aims to achieve a consistent application of revenue recognition within the United States, resulting in a single revenue model to be applied by reporting companies under U.S. GAAP. Under the new model, recognition of revenue occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new standard is required to be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application. In March 2016 and April 2016, the FASB issued ASU No. 2016-08 and ASU No. 2016-10, respectively, which further clarified the implementation guidance on principal versus agent considerations contained in ASU No. 2014-09 and the identification of performance obligations and licensing, respectively. In May 2016, the FASB issued ASU 2016-12, Narrow-Scope Improvements and Practical Expedients, which provides clarification on assessing the collectability criterion, presentation of sales taxes, measurement date for non-cash consideration and completed contracts at transition. These standards will be effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). Early adoption is permitted, but not before December 15, 2016, the original effective date of the standard. We are currently analyzing ASU 2014-09, and the related ASUs, to evaluate the impact of the new standard on existing contracts with our customers and will complete our analysis by December 31, 2017. As part of our analysis, we initiated a contract review process which includes an evaluation of our performance obligations and variable consideration. Our evaluation is still ongoing; however, based on the evaluation of our current contracts and revenue stream, most will be recorded consistently under both the current and new standard. We primarily sell products and recognize revenue upon delivery to customers, at which point the earnings process is deemed to be complete. Our performance obligations are clearly identifiable and we do not anticipate significant changes to the assessment of such performance obligations or the timing of our revenue recognition upon adoption of the new standard. We believe our primary business processes are consistent with the principles contained in the ASU. We are evaluating if any changes to those processes, our internal controls or systems are needed upon adoption of the new standard, and will complete our evaluation by December 31, 2017. We plan to adopt the new guidance on January 1, 2018, using the modified retrospective method applied to those contracts which were not completed as of that date. Upon adoption, we will recognize the cumulative effect of adopting this guidance as an adjustment to the opening balance of accumulated deficit. We continue to evaluate the impact of the new standard on our financial statement disclosures and will complete the evaluation by December 31, 2017. Additionally, we will continue to monitor industry activities and any additional guidance provided by regulators, standards setters, or the accounting profession and adjust our assessment and implementation plans accordingly. |
Note 3 - Short-term and Long-17
Note 3 - Short-term and Long-term Investments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule Of Investments [Abstract] | |
Summary of Investments | Investments consisted of the following at September 30, 2017 (in thousands): Cost Unrealized Gains Unrealized Losses Other- Than- Temporary Impairment Losses Fair Value Cash and Cash Equivalents Short-term Investments Long-term Investments Cash $ 10,266 $ — $ — $ — $ 10,266 $ 10,266 $ — $ — Money market securities 22,493 — — — 22,493 22,493 — — Marketable securities: Certificates of deposit 24,067 — — — 24,067 — 11,988 12,079 Commercial paper 10,462 — — — 10,462 1,498 8,964 — Corporate securities 60,183 2 (113 ) — 60,072 — 38,111 21,961 Federal agency securities 36,365 — (117 ) — 36,248 1,498 14,697 20,053 Municipal securities 13,562 1 (11 ) — 13,552 — 12,131 1,421 Total marketable securities 144,639 3 (241 ) — 144,401 2,996 85,891 55,514 $ 177,398 $ 3 $ (241 ) $ — $ 177,160 $ 35,755 $ 85,891 $ 55,514 Investments consisted of the following at December 31, 2016 (in thousands): Cost Unrealized Gains Unrealized Losses Other- Than- Temporary Impairment Losses Fair Value Cash and Cash Equivalents Short-term Investments Long-term Investments Cash $ 49,331 $ — $ — $ — $ 49,331 $ 49,331 $ — $ — Money market securities 54,015 — — — 54,015 54,015 — — Marketable securities: Certificates of deposit 26,114 — — — 26,114 — 13,855 12,259 Commercial paper 1,485 — — — 1,485 — 1,485 — Corporate securities 39,562 — (135 ) — 39,427 500 25,681 13,246 Federal agency securities 30,660 4 (92 ) — 30,572 — 10,854 19,718 Municipal securities 35,811 2 (81 ) — 35,732 796 26,363 8,573 Total marketable securities 133,632 6 (308 ) — 133,330 1,296 78,238 53,796 $ 236,978 $ 6 $ (308 ) $ — $ 236,676 $ 104,642 $ 78,238 $ 53,796 |
Summary of Amortized Cost and Estimated Fair Value of Securities By Maturity | The amortized cost and estimated fair value of the marketable securities by maturity, are shown below (in thousands): September 30, 2017 December 31, 2016 Amortized Cost Fair Value Amortized Cost Fair Value Marketable securities: Due in one year or less $ 89,221 $ 89,166 $ 80,092 $ 80,027 Due after one year through 5 years 54,448 54,265 53,540 53,303 Due after 5 years through 10 years — — — — Due after 10 years 970 970 — — $ 144,639 $ 144,401 $ 133,632 $ 133,330 |
Summary of Gross Unrealized Losses and Fair Value of Investments | The following table shows the gross unrealized losses and the fair value of our investments, with unrealized losses that are not deemed to be other-than-temporarily impaired aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands): September 30, 2017 December 31, 2016 Less Than 12 Months Greater Than 12 Months Less Than 12 Months Greater Than 12 Months Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Marketable securities: Corporate securities $ 48,616 $ (93 ) $ 7,359 $ (21 ) $ 38,027 $ (134 ) $ 401 $ (1 ) Federal agency securities 26,359 (58 ) 6,702 (59 ) 26,449 (91 ) 1,217 (1 ) Municipal securities 4,412 (4 ) 1,162 (6 ) 30,373 (81 ) 100 — $ 79,387 $ (155 ) $ 15,223 $ (86 ) $ 94,849 $ (306 ) $ 1,718 $ (2 ) |
Note 4 - Fair Value Measureme18
Note 4 - Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Investments Measured at Fair Value on Recurring Basis | Our investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 at September 30, 2017 were as follows (in thousands): Fair Value Measurement at Reporting Date Total Quoted Prices in active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Marketable securities: Certificates of deposit $ 24,067 $ — $ 24,067 $ — Commercial paper 10,462 — 10,462 — Corporate securities 60,072 — 59,554 518 Federal agency securities 36,248 — 36,248 — Municipal securities 13,552 — 13,552 — Total assets measured at fair value $ 144,401 $ — $ 143,883 $ 518 Our investments measured at fair value on a recurring basis subject to the disclosure requirements of ASC 820 at December 31, 2016 were as follows (in thousands): Fair Value Measurement at Reporting Date Total Quoted Prices in active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Marketable securities: Certificates of deposit $ 26,114 $ — $ 26,114 $ — Commercial paper 1,485 — 1,485 — Corporate securities 39,427 — 38,927 500 Federal agency securities 30,572 — 30,572 — Municipal securities 35,732 — 35,732 — Total assets measured at fair value $ 133,330 $ — $ 132,830 $ 500 |
Summary of Additional Information about Assets Measured at Fair Value | The following table presents additional information about assets measured at fair value on a recurring basis and for which we utilize Level 3 inputs to determine fair value for the three and nine months ended September 30, 2017 and 2016 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Convertible stock Balance, beginning of period $ 518 $ 500 $ 500 $ — Change in fair value — — 18 — Purchases — — — 500 Balance, end of period $ 518 $ 500 $ 518 $ 500 |
Note 5 - Inventories, Net (Tabl
Note 5 - Inventories, Net (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Components of Inventories Net of Allowances | The components of inventories, net of allowances, are as follows (in thousands): September 30, December 31, 2017 2016 Finished goods $ 3,585 $ 8,408 Work-in-process 7,610 6,183 Raw materials and supplies 7,229 5,823 Total inventories 18,424 20,414 Plus: non-current raw materials and supplies and finished goods 1,999 6,257 $ 20,423 $ 26,671 |
Note 6 - Commitments and Cont20
Note 6 - Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Aggregate Minimum Purchase Commitments | The following table sets forth our aggregate minimum purchase commitments with Renaissance and Aptar under these agreements (in thousands): Years ending December 31, Remainder of 2017 $ 5,500 2018 5,500 2019 6,000 2020 6,000 2021 2,000 Thereafter — Total $ 25,000 |
Note 7 - Stock-based Compensa21
Note 7 - Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Amounts Recognized in Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) with Respect to Stock-Based Compensation Plans | Amounts recognized in the condensed consolidated statements of operations and comprehensive income (loss) with respect to our stock-based compensation plans were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Research and development $ 714 $ 1,014 $ 2,531 $ 2,938 General and administrative 4,054 7,385 10,517 14,533 Total cost of stock-based compensation $ 4,768 $ 8,399 $ 13,048 $ 17,471 |
Summary of Stock Option Activity | The following table summarizes stock option activity during the nine months ended September 30, 2017: Weighted Weighted Average Aggregate Average Remaining Intrinsic Number of Exercise Contractual Value Shares Price Term (in years) (in millions) Vested and exercisable as of December 31, 2016 4,474,906 $ 9.05 Outstanding as of December 31, 2016 7,300,873 $ 12.36 Granted 2,145,150 $ 11.84 Cancelled (1,254,346 ) $ 17.90 Expired (9,834 ) $ 20.13 Exercised (1,050,146 ) $ 3.38 Outstanding as of September 30, 2017 7,131,697 $ 12.55 7.3 $ 11.9 Vested and exercisable as of September 30, 2017 4,284,780 $ 11.29 6.3 $ 11.9 |
Summary of Restricted Stock Unit Activity | The following table summarizes restricted stock unit activity during the nine months ended September 30, 2017: Weighted Average Grant-Date Number of Fair Value Units Per Unit Outstanding as of December 31, 2016 — $ — Granted 379,000 $ 12.20 Exercised (14,000 ) $ 12.65 Cancelled (59,400 ) $ 12.65 Outstanding as of September 30, 2017 305,600 $ 12.09 |
Note- 8 - Net Income (Loss) P22
Note- 8 - Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Common Share | The following table sets forth the computation of basic and diluted net income (loss) per common share (dollars in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Historical net income (loss) per share - Basic Numerator: Net income (loss) $ (166,320 ) $ 2,925 $ (181,028 ) $ 11,242 Denominator: Weighted average number of common shares outstanding 72,285,146 71,640,536 72,133,417 71,592,145 Basic net income (loss) per common share $ (2.30 ) $ 0.04 $ (2.51 ) $ 0.16 Historical net income (loss) per share - Diluted Numerator: Net income (loss) $ (166,320 ) $ 2,925 $ (181,028 ) $ 11,242 Denominator: Weighted average number of common shares outstanding 72,285,146 71,640,536 72,133,417 71,592,145 Effect of dilutive stock options — 2,688,427 — 2,953,678 Weighted average number of common shares outstanding 72,285,146 74,328,963 72,133,417 74,545,823 Diluted net income (loss) per common share $ (2.30 ) $ 0.04 $ (2.51 ) $ 0.15 |
Note 9 - Product Lines, Conce23
Note 9 - Product Lines, Concentration of Credit Risk and Significant Customers (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Net Revenue by Product Line | The following tables summarizes our net revenue by product line, as well as the percentage of revenue by route to market (in thousands): Net Revenue by Product Line Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 SUBSYS ® $ 29,986 $ 57,773 $ 108,524 $ 187,415 SYNDROS ® 684 — 684 — Total net revenue $ 30,670 $ 57,773 $ 109,208 $ 187,415 |
Percentage of Revenue by Route to Market | Percent of Revenue by Route to Market Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Pharmaceutical wholesalers 63 % 66 % 62 % 69 % Specialty pharmaceutical retailers 37 % 34 % 38 % 31 % 100 % 100 % 100 % 100 % |
Note 1 - Nature of Business a24
Note 1 - Nature of Business and Basis of Presentation (Details Textual) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($)ProductLine | Sep. 30, 2016ProductLine | Sep. 30, 2017USD ($)ProductLine | Sep. 30, 2016ProductLine | Dec. 31, 2016USD ($)shares | |
Nature Of Business [Line Items] | |||||
Number of Product Lines | ProductLine | 2 | 2 | 2 | 2 | |
ASU No. 2016-09 [Member] | |||||
Nature Of Business [Line Items] | |||||
Estimated forfeitures relating to outstanding equity awards | shares | 0 | ||||
Adjustment to forfeitures relating to outstanding equity awards | $ 0 | ||||
ASU No. 2016-09 [Member] | Deferred Tax Asset [Member] | |||||
Nature Of Business [Line Items] | |||||
Cumulative effect adjustment of change in accounting principle | $ 368,000 | $ 368,000 | |||
ASU No. 2016-09 [Member] | Deferred Tax Asset Valuation Allowance [Member] | |||||
Nature Of Business [Line Items] | |||||
Cumulative effect adjustment of change in accounting principle | $ 368,000 | $ 368,000 |
Note 2 - Revenue Recognition (D
Note 2 - Revenue Recognition (Details Textual) | 9 Months Ended |
Sep. 30, 2017 | |
SUBSYS [Member] | |
Revenue Recognition [Line Items] | |
Product Return, Period Prior to Expiration | 6 months |
Product Return, Period After Expiration | 12 months |
Cash Discount, Percent | 2.00% |
SUBSYS [Member] | Minimum [Member] | |
Revenue Recognition [Line Items] | |
Shelf Life of Product from Date of Manufacture | 36 months |
SUBSYS [Member] | Maximum [Member] | |
Revenue Recognition [Line Items] | |
Shelf Life of Product from Date of Manufacture | 48 months |
SYNDROS [Member] | |
Revenue Recognition [Line Items] | |
Product Return, Period Prior to Expiration | 6 months |
Product Return, Period After Expiration | 12 months |
SYNDROS [Member] | Minimum [Member] | |
Revenue Recognition [Line Items] | |
Shelf Life of Product from Date of Manufacture | 24 months |
SYNDROS [Member] | Maximum [Member] | |
Revenue Recognition [Line Items] | |
Shelf Life of Product from Date of Manufacture | 36 months |
Note 3 - Short-term and Long-26
Note 3 - Short-term and Long-term Investments (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Schedule Of Investments [Line Items] | |||||
Reclassifications on available-for-sale securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Investment Owned, at Fair Value | 177,160,000 | 177,160,000 | $ 236,676,000 | ||
Other than temporary impairment losses on available-for-sale securities | 0 | $ 0 | 0 | $ 0 | |
Cash and Cash Equivalents [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Investment Owned, at Fair Value | 2,996,000 | 2,996,000 | |||
Short-term Investments [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Investment Owned, at Fair Value | 85,891,000 | 85,891,000 | |||
Long-term Investments [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Investment Owned, at Fair Value | $ 55,514,000 | $ 55,514,000 |
Note 3 - Short-term and Long-27
Note 3 - Short-term and Long-term Investments - Summary of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Schedule Of Investments [Line Items] | ||||
Cost | $ 177,398 | $ 236,978 | ||
Unrealized Gains | 3 | 6 | ||
Unrealized Losses | (241) | (308) | ||
Fair Value | 177,160 | 236,676 | ||
Cash and Cash Equivalents | 35,755 | 104,642 | $ 93,529 | $ 79,515 |
Short-term Investments | 85,891 | 78,238 | ||
Long-term Investments | 55,514 | 53,796 | ||
Commercial Paper [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Cost | 10,462 | 1,485 | ||
Fair Value | 10,462 | 1,485 | ||
Cash and Cash Equivalents | 1,498 | |||
Short-term Investments | 8,964 | 1,485 | ||
Corporate Securities [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Cost | 60,183 | 39,562 | ||
Unrealized Gains | 2 | |||
Unrealized Losses | (113) | (135) | ||
Fair Value | 60,072 | 39,427 | ||
Cash and Cash Equivalents | 500 | |||
Short-term Investments | 38,111 | 25,681 | ||
Long-term Investments | 21,961 | 13,246 | ||
Federal Agency Securities [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Cost | 36,365 | 30,660 | ||
Unrealized Gains | 4 | |||
Unrealized Losses | (117) | (92) | ||
Fair Value | 36,248 | 30,572 | ||
Cash and Cash Equivalents | 1,498 | |||
Short-term Investments | 14,697 | 10,854 | ||
Long-term Investments | 20,053 | 19,718 | ||
Municipal Securities [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Cost | 13,562 | 35,811 | ||
Unrealized Gains | 1 | 2 | ||
Unrealized Losses | (11) | (81) | ||
Fair Value | 13,552 | 35,732 | ||
Cash and Cash Equivalents | 796 | |||
Short-term Investments | 12,131 | 26,363 | ||
Long-term Investments | 1,421 | 8,573 | ||
Marketable Securities [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Cost | 144,639 | 133,632 | ||
Unrealized Gains | 3 | 6 | ||
Unrealized Losses | (241) | (308) | ||
Fair Value | 144,401 | 133,330 | ||
Cash and Cash Equivalents | 2,996 | 1,296 | ||
Short-term Investments | 85,891 | 78,238 | ||
Long-term Investments | 55,514 | 53,796 | ||
Cash [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Cost | 10,266 | 49,331 | ||
Fair Value | 10,266 | 49,331 | ||
Cash and Cash Equivalents | 10,266 | 49,331 | ||
Money Market Securities [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Cost | 22,493 | 54,015 | ||
Fair Value | 22,493 | 54,015 | ||
Cash and Cash Equivalents | 22,493 | 54,015 | ||
Certificates of Deposit [Member] | ||||
Schedule Of Investments [Line Items] | ||||
Cost | 24,067 | 26,114 | ||
Fair Value | 24,067 | 26,114 | ||
Short-term Investments | 11,988 | 13,855 | ||
Long-term Investments | $ 12,079 | $ 12,259 |
Note 3 - Short-term and Long-28
Note 3 - Short-term and Long-term Investments - Summary of Amortized Cost and Estimated Fair Value of Securities By Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Marketable securities: | ||
Due in one year or less, Amortized Cost | $ 89,221 | $ 80,092 |
Due after one year through 5 years, Amortized Cost | 54,448 | 53,540 |
Due after 10 years, Amortized Cost | 970 | |
Total, Amortized Cost | 144,639 | 133,632 |
Due in one year or less, Fair Value | 89,166 | 80,027 |
Due after one year through 5 years, Fair Value | 54,265 | 53,303 |
Due after 10 years, Fair Value | 970 | |
Total, Fair value | $ 144,401 | $ 133,330 |
Note 3 - Short-term and Long-29
Note 3 - Short-term and Long-term Investments - Summary of Gross Unrealized Losses and Fair Value of Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Marketable securities: | ||
Less Than 12 Months Fair Value | $ 79,387 | $ 94,849 |
Less Than 12 Months Unrealized Loss | (155) | (306) |
Greater Than 12 Months Fair Value | 15,223 | 1,718 |
Greater Than 12 Months Unrealized Loss | (86) | (2) |
Corporate Bond Securities [Member] | ||
Marketable securities: | ||
Less Than 12 Months Fair Value | 48,616 | 38,027 |
Less Than 12 Months Unrealized Loss | (93) | (134) |
Greater Than 12 Months Fair Value | 7,359 | 401 |
Greater Than 12 Months Unrealized Loss | (21) | (1) |
Federal Agency Securities [Member] | ||
Marketable securities: | ||
Less Than 12 Months Fair Value | 26,359 | 26,449 |
Less Than 12 Months Unrealized Loss | (58) | (91) |
Greater Than 12 Months Fair Value | 6,702 | 1,217 |
Greater Than 12 Months Unrealized Loss | (59) | (1) |
Municipal Securities [Member] | ||
Marketable securities: | ||
Less Than 12 Months Fair Value | 4,412 | 30,373 |
Less Than 12 Months Unrealized Loss | (4) | (81) |
Greater Than 12 Months Fair Value | 1,162 | $ 100 |
Greater Than 12 Months Unrealized Loss | $ (6) |
Note 4 - Fair Value Measureme30
Note 4 - Fair Value Measurement - Summary of Investments Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 144,401 | $ 133,330 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 143,883 | 132,830 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 518 | 500 |
Certificates of Deposit [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 24,067 | 26,114 |
Certificates of Deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 24,067 | 26,114 |
Commercial Paper [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,462 | 1,485 |
Commercial Paper [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 10,462 | 1,485 |
Corporate Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 60,072 | 39,427 |
Corporate Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 59,554 | 38,927 |
Corporate Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 518 | 500 |
Federal Agency Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 36,248 | 30,572 |
Federal Agency Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 36,248 | 30,572 |
Municipal Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 13,552 | 35,732 |
Municipal Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | $ 13,552 | $ 35,732 |
Note 4 - Fair Value Measureme31
Note 4 - Fair Value Measurement - Summary of Additional Information about Assets Measured at Fair Value (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | ||||
Balance, beginning of period | $ 518 | $ 500 | $ 500 | |
Change in fair value | 18 | |||
Purchases | $ 500 | |||
Balance, end of period | $ 518 | $ 500 | $ 518 | $ 500 |
Note 5 - Inventories, Net - Sch
Note 5 - Inventories, Net - Schedule of Components of Inventories Net of Allowances (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 3,585 | $ 8,408 |
Work-in-process | 7,610 | 6,183 |
Raw materials and supplies | 7,229 | 5,823 |
Total inventories | 18,424 | 20,414 |
Plus: non-current raw materials and supplies and finished goods | 1,999 | 6,257 |
Inventories, net | $ 20,423 | $ 26,671 |
Note 5 - Inventories, Net (Deta
Note 5 - Inventories, Net (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||||
Inventory Valuation Reserves | $ 13,100,000 | $ 13,100,000 | $ 6,800,000 | ||
Increase in inventory valuation reserves | 3,300,000 | $ 1,900,000 | 6,300,000 | $ 3,200,000 | |
Deferred cost of revenue | $ 58,000 | $ 58,000 | $ 58,000 |
Note 6 - Commitments and Cont34
Note 6 - Commitments and Contingencies (Details Textual) - USD ($) | Oct. 31, 2017 | Oct. 20, 2017 | Oct. 01, 2017 | Jul. 12, 2017 | Apr. 06, 2017 | Jul. 14, 2016 | Mar. 01, 2016 | Nov. 01, 2015 | Oct. 02, 2015 | Jun. 23, 2015 | Jun. 08, 2015 | Oct. 30, 2015 | Apr. 30, 2015 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2015 | Jun. 30, 2016 |
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Income Tax benefit | $ (8,996,000) | $ (379,000) | $ (15,976,000) | $ 523,000 | ||||||||||||||||
Litigation Settlement, Expense | 150,850,000 | 155,300,000 | ||||||||||||||||||
Purchase Obligation | 25,000,000 | $ 25,000,000 | ||||||||||||||||||
Renaissance [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Extended period of agreement | 2,020 | |||||||||||||||||||
Purchase Obligation Per Calendar Year | $ 4,000,000 | |||||||||||||||||||
Purchase Obligation | $ 16,000,000 | $ 49,740,000 | ||||||||||||||||||
Renaissance [Member] | Loss on Long-term Purchase Commitment [Member] | Cost of Revenue [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Loss on purchase commitments | 1,035,000 | |||||||||||||||||||
AptarGroup, Inc [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Join agreement period | 7 years | |||||||||||||||||||
Purchase Obligation | $ 9,000,000 | $ 20,790,000 | ||||||||||||||||||
Maximum [Member] | AptarGroup, Inc [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Tiered royalties as percentage of net revenue | 1.00% | |||||||||||||||||||
Purchase Obligation Per Calendar Year | $ 500,000 | |||||||||||||||||||
U S Department Of Justice [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Litigation settlement payment period | 5 years | |||||||||||||||||||
Loss contingency accrual | $ 0 | |||||||||||||||||||
Income Tax benefit | 0 | |||||||||||||||||||
U S Department Of Justice [Member] | Maximum [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Estimated Contingent Liability | 150,000,000 | 150,000,000 | ||||||||||||||||||
Loss Contingency, Estimate of Possible Loss | 75,000,000 | 75,000,000 | ||||||||||||||||||
Anti-Kickback Statute Litigation [Member] | Settled Litigation [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Payments In Question | $ 83,000 | |||||||||||||||||||
Kickbacks [Member] | Settled Litigation [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Payments In Question | $ 188,000 | |||||||||||||||||||
Oregon Department of Justice [Member] | Settled Litigation [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Litigation Settlement, Amount | $ 1,100,000 | |||||||||||||||||||
State of Illinois [Member] | Settled Litigation [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Litigation Settlement, Amount | 4,450,000 | |||||||||||||||||||
State of New Hampshire [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Charitable Contribution | 500,000 | |||||||||||||||||||
State of New Hampshire [Member] | Settled Litigation [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Litigation Settlement, Amount | $ 2,900,000 | |||||||||||||||||||
State of Massachusetts [Member] | Settled Litigation [Member] | Subsequent Event [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Litigation Settlement, Amount | $ 500,000 | |||||||||||||||||||
Kottayil vs. Insys Pharma, Inc. [Member] | Settled Litigation [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Estimated Contingent Liability | 9,567,000 | 9,567,000 | ||||||||||||||||||
Litigation Settlement, Amount | $ 7,317,450 | 850,000 | ||||||||||||||||||
Loss Contingency, Damages Awarded, Value | $ 7,317,450 | |||||||||||||||||||
Litigation Settlement, Post-Judgment Interest | 4.25% | |||||||||||||||||||
Litigation Settlement, Expense | $ 93,163 | |||||||||||||||||||
Kottayil vs. Insys Pharma, Inc. [Member] | Settled Litigation [Member] | Settlement Interest [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Estimated Contingent Liability | $ 2,249,000 | $ 2,249,000 | ||||||||||||||||||
Kottayil vs. Insys Pharma, Inc. [Member] | Threatened Litigation [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency, Damages Sought, Value | $ 3,630,000 | |||||||||||||||||||
Kottayil vs. Insys Pharma, Inc. [Member] | Maximum [Member] | Threatened Litigation [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency, Estimate of Possible Loss | 3,630,000 | |||||||||||||||||||
Kottayil vs. Insys Pharma, Inc. [Member] | Minimum [Member] | Threatened Litigation [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency, Estimate of Possible Loss | $ 0 | |||||||||||||||||||
Anthem Blue Cross of California Vs Insys Therapeutics Inc [Member] | Minimum [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency, Damages Sought, Value | $ 19,000,000 | |||||||||||||||||||
Horizon Blue Cross Blue Shield of New Jersey [Member] | ||||||||||||||||||||
Commitments And Contingencies [Line Items] | ||||||||||||||||||||
Loss Contingency, Damages Sought, Value | $ 4,000,000 |
Note 6 - Commitments and Cont35
Note 6 - Commitments and Contingencies - Summary of Aggregate Minimum Purchase Commitments (Details) $ in Thousands | Sep. 30, 2017USD ($) |
Years ending December 31, | |
Remainder of 2017 | $ 5,500 |
2,018 | 5,500 |
2,019 | 6,000 |
2,020 | 6,000 |
2,021 | 2,000 |
Total | $ 25,000 |
Note 7 - Stock-based Compensa36
Note 7 - Stock-based Compensation - Amounts Recognized in Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) with Respect to Stock-Based Compensation Plans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total cost of stock-based compensation | $ 4,768 | $ 8,399 | $ 13,048 | $ 17,471 |
Research and Development Expense [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total cost of stock-based compensation | 714 | 1,014 | 2,531 | 2,938 |
General and Administrative Expense [Member] | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Total cost of stock-based compensation | $ 4,054 | $ 7,385 | $ 10,517 | $ 14,533 |
Note 7 - Stock-based Compensa37
Note 7 - Stock-based Compensation (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award Accelerated Compensation Cost | $ 1,450,000 | $ 3,878,000 | $ 1,450,000 | $ 3,878,000 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | 24,654,000 | 24,654,000 | ||
Proceeds from Stock Options Exercised | 3,550,000 | 3,475,000 | ||
Cash used to fund tax withholdings on stock-based compensation | 42,000 | |||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 675,000 | |||
ASU No. 2016-09 [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 466,000 | |||
Employee Stock Option [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 8 months 12 days | |||
Restricted Stock Unit [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 19 days | |||
Employee service share-based compensation, nonvested awards, compensation not yet recognized | $ 2,932,000 | $ 2,932,000 |
Note 7 - Stock-based Compensa38
Note 7 - Stock-based Compensation - Summary of Stock Option Activity (Detail) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Number of Shares, Vested and exercisable, Beginning balance | shares | 4,474,906 |
Number of Shares, Outstanding, Beginning balance | shares | 7,300,873 |
Number of Shares, Granted | shares | 2,145,150 |
Number of Shares, Cancelled | shares | (1,254,346) |
Number of Shares, Expired | shares | (9,834) |
Number of Shares, Exercised | shares | (1,050,146) |
Number of Shares, Outstanding, Ending balance | shares | 7,131,697 |
Number of Shares, Vested and exercisable, Ending balance | shares | 4,284,780 |
Weighted Average Exercise Price, Vested and exercisable, Beginning balance | $ / shares | $ 9.05 |
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares | 12.36 |
Weighted Average Exercise Price, Granted | $ / shares | 11.84 |
Weighted Average Exercise Price, Cancelled | $ / shares | 17.90 |
Weighted Average Exercise Price, Expired | $ / shares | 20.13 |
Weighted Average Exercise Price, Exercised | $ / shares | 3.38 |
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares | 12.55 |
Weighted Average Exercise Price, Vested and exercisable, Ending balance | $ / shares | $ 11.29 |
Weighted Average Remaining Contractual Term, Outstanding as of September 30, 2017 | 7 years 3 months 18 days |
Weighted Average Remaining Contractual Term, Vested and exercisable as of September 30, 2017 | 6 years 3 months 18 days |
Aggregate Intrinsic Value, Outstanding as of September 30, 2017 | $ | $ 11.9 |
Aggregate Intrinsic Value, Vested and exercisable as of September 30, 2017 | $ | $ 11.9 |
Note 7 - Stock-based Compensa39
Note 7 - Stock-based Compensation - Summary of Restricted Stock Unit Activity (Detail) - Restricted Stock Unit [Member] | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Units, Granted | shares | 379,000 |
Number of Units, Exercised | shares | (14,000) |
Number of Units, Cancelled | shares | (59,400) |
Number of Units, Outstanding, Ending balance | shares | 305,600 |
Weighted Average Grant-Date Fair Value Per Unit, Granted | $ / shares | $ 12.20 |
Weighted Average Grant-Date Fair Value Per Unit, Exercised | $ / shares | 12.65 |
Weighted Average Grant-Date Fair Value Per Unit, Cancelled | $ / shares | 12.65 |
Weighted Average Grant-Date Fair Value Per Unit, Outstanding, Ending balance | $ / shares | $ 12.09 |
Note 8 - Net Income (Loss) Per
Note 8 - Net Income (Loss) Per Share - Computation of Basic and Diluted Net Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Historical net income (loss) per share - Basic | ||||
Net income (loss) | $ (166,320) | $ 2,925 | $ (181,028) | $ 11,242 |
Weighted average number of common shares outstanding | 72,285,146 | 71,640,536 | 72,133,417 | 71,592,145 |
Basic net income (loss) per common share | $ (2.30) | $ 0.04 | $ (2.51) | $ 0.16 |
Historical net income (loss) per share - Diluted | ||||
Net income (loss) | $ (166,320) | $ 2,925 | $ (181,028) | $ 11,242 |
Weighted average number of common shares outstanding | 72,285,146 | 71,640,536 | 72,133,417 | 71,592,145 |
Effect of dilutive stock options | 2,688,427 | 2,953,678 | ||
Weighted average number of common shares outstanding | 72,285,146 | 74,328,963 | 72,133,417 | 74,545,823 |
Diluted net income (loss) per common share | $ (2.30) | $ 0.04 | $ (2.51) | $ 0.15 |
Note 8 - Net Income (Loss) Pe41
Note 8 - Net Income (Loss) Per Share (Details Textual) - shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities excluded from computation of earnings per share, Shares | 5,578,530 | 5,575,979 |
Note 9 - Product Lines, Conce42
Note 9 - Product Lines, Concentration of Credit Risk and Significant Customers (Details Textual) | Dec. 31, 2016Wholesaler | Sep. 30, 2017ProductLine | Sep. 30, 2016ProductLine | Sep. 30, 2017ProductLineWholesaler | Sep. 30, 2016ProductLineWholesaler |
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Number of Product Lines | ProductLine | 2 | 2 | 2 | 2 | |
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | Pharmaceutical Wholesaler Customer One [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 25.00% | 17.00% | |||
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | Pharmaceutical Wholesaler Customer Two [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 18.00% | 16.00% | |||
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | Pharmaceutical Wholesaler Customer Three [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 11.00% | 15.00% | |||
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | Pharmaceutical Wholesaler Customer Four [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 15.00% | ||||
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | Pharmaceutical Wholesalers [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Number of Customers | 3 | 4 | |||
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | Specialty Pharmaceutical Retailers Customer One [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 25.00% | 30.00% | |||
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | Specialty Pharmaceutical Retailers Customer Two [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 13.00% | ||||
Customer Concentration Risk [Member] | Sales Revenue Net [Member] | Specialty Pharmaceutical Retailers [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Number of Customers | 2 | 1 | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Pharmaceutical Wholesaler Customer One [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 36.00% | 35.00% | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Pharmaceutical Wholesaler Customer Two [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 23.00% | 19.00% | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Pharmaceutical Wholesaler Customer Three [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 21.00% | 13.00% | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Pharmaceutical Wholesaler Customer Four [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 13.00% | ||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Pharmaceutical Wholesalers [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Number of Customers | 4 | 3 | |||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Specialty Pharmaceutical Retailers Customer One [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 17.00% | ||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Specialty Pharmaceutical Retailers Customer Two [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Percentage | 13.00% | ||||
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Specialty Pharmaceutical Retailers [Member] | |||||
Product Lines Concentration Of Credit Risk And Significant Customers [Line Items] | |||||
Concentration Risk, Number of Customers | 2 |
Note 9 - Product Lines, Conce43
Note 9 - Product Lines, Concentration of Credit Risk and Significant Customers - Summary of Net Revenue by Product Line and Percentages (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 30,670 | $ 57,773 | $ 109,208 | $ 187,415 |
SUBSYS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 29,986 | $ 57,773 | 108,524 | $ 187,415 |
SYNDROS [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 684 | $ 684 |
Note 9 - Product Lines, Conce44
Note 9 - Product Lines, Concentration of Credit Risk and Significant Customers - Percentage of Revenue by Route to Market (Details) - Sales Revenue, Product Line [Member] - Customer Concentration Risk [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Concentration Risk Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Pharmaceutical Wholesalers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration Risk Percentage | 63.00% | 66.00% | 62.00% | 69.00% |
Specialty Pharmaceutical Retailers [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Concentration Risk Percentage | 37.00% | 34.00% | 38.00% | 31.00% |