CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2016

CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS

Summary of securities included in cash and cash equivalents and short-term investments

Securities classified as cash and cash equivalents and short-term investments as of December 31, 2016 and 2015 are summarized below (in thousands). Estimated fair value is based on quoted market prices for these investments.

			Gross		Gross
	Amortized		Unrealized		Unrealized
December 31, 2016	Cost		Gains		Losses		Fair Value
Cash and cash equivalents:
Cash	$	87,845	$	—	$	—	$	87,845
Money market funds		532		—		—		532
Corporate debt securities and commercial paper		29,334		—		(2)		29,332
Total cash and cash equivalents	$	117,711	$	—	$	(2)	$	117,709
Short-term investments
Corporate debt securities and Commercial paper with maturities less than 1 year	$	59,728	$	—	$	(17)	$	59,711
Total short-term investments	$	59,728	$	—	$	(17)	$	59,711
Total	$	177,439	$	—	$	(19)	$	177,420

			Gross		Gross
	Amortized		Unrealized		Unrealized
December 31, 2015	Cost		Gains		Losses		Fair Value
Cash and cash equivalents:
Cash	$	65,600	$	—	$	—	$	65,600
Money market funds		64		—		—		64
Corporate debt securities and commercial paper		35,420		—		—		35,420
Total cash and cash equivalents	$	101,084	$	—	$	—	$	101,084
Short-term investments
Corporate debt securities, commercial paper and US Treasury securities with maturities less than 1 year	$	108,717	$	1	$	(34)	$	108,684
Total short-term investments	$	108,717	$	1	$	(34)	$	108,684
Total	$	209,801	$	1	$	(34)	$	209,768

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 December 31, 2016 (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	$	35,935	$	(19)	$	—	$	—	$	35,935	$	(19)

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

The following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2016 (in thousands):

December 31, 2016	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	532	$	—	$	—	$	532
Commercial paper		—		52,192		—		52,192
Corporate debt securities		—		36,850		—		36,850
US Treasury securities		—		—		—		—
Total	$	532	$	89,042	$	—	$	89,574
Liabilities:
Contingent consideration—Zipsor	$	—	$	—	$	1,489	$	1,489
Contingent consideration—Lazanda		—		—		11,742		11,742
Contingent consideration—CAMBIA		—		—		1,594		1,594
	$	—	$	—	$	14,825	$	14,825

The following table represents the Company’s fair value hierarchy for its financial assets measured at fair value on a recurring basis as of December 31, 2015 (in thousands):

December 31, 2015	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	64	$	—	$	—	$	64
Commercial paper		—		56,383		—		56,383
Corporate debt securities		—		44,956		—		44,956
US Treasury securities		—		42,765				42,765
Total	$	64	$	144,104	$	—	$	144,168
Liabilities:
Contingent consideration—Zipsor	$	—	$	—	$	1,504	$	1,504
Contingent consideration—Lazanda		—		—		12,002		12,002
Contingent consideration—CAMBIA		—		—		1,465		1,465
	$	—	$	—	$	14,971	$	14,971

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 recorded in interest expense and selling, general and administrative expense measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2016 and December 31, 2015 (in thousands):

					Changes in
					fair value
			Changes in		recorded in
			fair value		selling,
	Balance at		recorded in		general and				Balance at
	December 31,		interest		administrative		Royalties		December 31,
	2015		expense		expense		paid		2016
Liabilities:
Contingent consideration obligations—Zipsor	$	1,504	$	141	$	(156)	$	—	$	1,489
Contingent consideration obligations—Lazanda		12,002		2,031		141		(2,432)		11,742
Contingent consideration obligations—CAMBIA		1,465		236		(107)		—		1,594
Total	$	14,971	$	2,408	$	(122)	$	(2,432)	$	14,825

					Changes in
					fair value
			Changes in		recorded in
			fair value		selling,
	Balance at		recorded in		general and				Balance at
	December 31,		interest		administrative		Royalties		December 31,
	2014		expense		expense		paid		2015
Liabilities:
Contingent consideration obligations—Zipsor	$	1,800	$	206	$	(502)	$	—	$	1,504
Contingent consideration obligations—Lazanda		11,209		1,621		419		(1,247)		12,002
Contingent consideration obligations—CAMBIA		1,243		211		11		—		1,465
Unfavorable contract assumed		3,343		269		(3,612)		—		—
Total	$	17,595	$	2,307	$	(3,684)	$	(1,247)	$	14,971