CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES (Tables)

6 Months Ended

Jun. 30, 2015

CASH, CASH EQUIVALENTS AND MARKETABLE SECURITIES

Summary of securities classified as cash and cash equivalents and available-for-sale marketable securities

Securities included in cash and cash equivalents and marketable securities as of June 30, 2015 and December 31, 2014 are summarized below (in thousands).

			Gross		Gross
	Amortized		Unrealized		Unrealized
June 30, 2015	Cost		Gains		Losses			Fair Value
Cash and cash equivalents:
Cash	$	53,548	$	—	$	—		$	53,548
Money market funds	11,282		—		—			11,282
Commercial Paper	29,264		—		—			29,264
Total cash and cash equivalents	$	94,094	$	—	$	—		$	94,094
Marketable securities:
Total maturing within 1 year and included in marketable securities:
Corporate debt securities	$	23,916	$	1	$	(11	)	$	23,906
Total maturing between 1 and 2 years and included in marketable securities:
Corporate debt securities	4,559		2		(2		)	4,559
Total marketable securities	$	28,475	$	3	$	(13	)	$	28,465
Total cash, cash equivalents and marketable securities	$	122,569	$	3	$	(13	)	$	122,559

			Gross		Gross
	Amortized		Unrealized		Unrealized
December 31, 2014	Cost		Gains		Losses			Fair Value
Cash and cash equivalents:
Cash	$	22,452	$	—	$	—		$	22,452
Money market funds	179,923		—		—			179,923
Corporate debt securities	286,292		3		(2		)	286,293
Total cash and cash equivalents	$	488,667	$	3	$	(2	)	$	488,668
Marketable securities:
Total maturing within 1 year and included in marketable securities:
Corporate debt securities	$	70,777	$	1	$	(5	)	$	70,773
Total maturing between 1 and 2 years and included in marketable securities:
Corporate debt securities	6,974		—		(13		)	6,961
Total marketable securities	$	77,751	$	1	$	(18	)	$	77,734
Total cash, cash equivalents and marketable securities	$	566,418	$	4	$	(20	)	$	566,402

Schedule of the gross unrealized losses and fair value of investments

The following table shows the gross unrealized losses and fair value of the Company’s 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, at June 30, 2015 (in thousands):

	Less than 12 months					12 months or greater				Total
			Gross					Gross				Gross
			Unrealized					Unrealized				Unrealized
	Fair Value		Losses			Fair Value		Losses		Fair Value		Losses
Corporate debt securities	$	17,584	$	(14	)	$	—	$	—	$	17,584	$	(14	)
Total available-for-sale	$	17,584	$	(14	)	$	—	$	—	$	17,584	$	(14	)

Schedule of fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis

The following tables represent the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014 (in thousands):

June 30, 2015	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	11,282	$	—	$	—	$	11,282
Commercial Paper	—		35,416		—		35,416
Corporate debt securities	22,313		—		—		22,313
Total	$	33,595	$	35,416	$	—	$	69,011
Liabilities:
Contingent consideration- Zipsor	$	—	$	—	$	1,575	$	1,575
Contingent consideration- Lazanda	—		—		11,751		11,751
Contingent consideration- CAMBIA	—		—		1,394		1,394
Unfavorable contract assumed	—		—		661		661
	$	—	$	—	$	15,381	$	15,381

December 31, 2014	Level 1		Level 2		Level 3		Total
Money market funds	$	179,923	$	—	$	—	$	179,923
Commercial Paper	—		253,837		—		253,837
Corporate debt securities	110,190		—		—		110,190
Total	$	290,113	$	253,837	$	—	$	543,950
Liabilities:
Contingent consideration- Zipsor	$	—	$	—	$	1,800	$	1,800
Contingent consideration- Lazanda	—		—		11,209		11,209
Contingent consideration- CAMBIA	—		—		1,243		1,243
Unfavorable contract assumed	—		—		3,343		3,343
	$	—	$	—	$	17,595	$	17,595

Summary of the changes in fair value of all financial liabilities measured at fair value on a recurring basis using significant unobservable inputs

The table below provides a summary of the changes in fair value of all financial liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended June 30, 2015 (in thousands):

	Balance at December 31, 2014		Changes in fair value recorded in interest expense		Changes in fair value recorded in selling, general and administrative expense			Royalties Paid			Balance at June 30, 2015
Liabilities:
Contingent consideration obligations- Zipsor®	$	1,800	$	124	$	(349	)	—			1,575
Contingent consideration obligations- Lazanda®	11,209		597		263			(318		)	11,751
Contingent consideration obligations- CAMBIA®	1,243		100		51			—			1,394
Unfavorable contract assumed	3,343		269		(2,951		)				661
Total	$	17,595	$	1,090	$	(2,986	)	$	(318	)	15,381