SUBSEQUENT EVENTS	12 Months Ended
Dec. 31, 2017
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 16. SUBSEQUENT EVENTS Commercialization Agreement with Collegium In January 2018, pursuant to the terms of a Commercialization Agreement the Company entered into with Collegium in December 2017 (Commercialization Agreement), The Company granted Collegium the right to commercialize the NUCYNTA franchise of pain products in the U.S. Pursuant to the Commercialization Agreement, Collegium assumed all commercialization responsibilities for the NUCYNTA franchise effective January 9, 2018, including sales and marketing. The Company will receive a royalty on all NUCYNTA revenues based on certain net sales thresholds, with a minimum royalty of $135.0 million per year during each of the first four years of the Commercialization Agreement. The company may terminate the Commercialization Agreement if aggregate net sales of the NUCYNTA products fall below certain thresholds or within the first year upon the payment of an $80.0 million termination fee. Collegium may terminate at any time after the first anniversary of the transaction by giving 12 months’ notice and, if the termination date is prior to fourth anniversary of the transaction, by paying us a $25.0 million termination fee. The Company is currently still evaluating the financial statement impact of the Commercialization Agreement under the new revenue recognition Standard, ASC 606 Revenue from Contracts with Customers, which we adopted as of January 1, 2018. New Lease Effective February 28, 2018, the Company entered into an Office Lease (the Lease) with Lake Forest Landmark Company LLC, a Delaware limited liability company (the Landlord), pursuant to which the Company will lease approximately 31,209 rentable square feet of space (the Premises), in Lake Forest, Illinois (the Building). The Lease will commence on the earlier of the completion of the Company’s initial tenant improvements in the space or July 1, 2018, but no later than August 1, 2018 (Lease Commencement Date), and will continue thereafter for a term of five (5) years and six (6) months. The Company has the right to renew the term of the Lease for one (1) period of five (5) years, provided that written notice is made to the Landlord no later than twelve (12) months prior to the expiration of the initial term of the Lease. Prior to the Lease Commencement Date, the Company has the right to use temporary space in the Building containing approximately 6,700 rentable square feet. The initial annual base rent will be $18.00 per rentable square foot of the Premises and will increase annually by $0.50. The lease is a triple net lease, with the Company required to pay its pro rata share of real estate taxes and operating expenses. However, the Company’s obligation to pay rent will be abated during the first six (6) months of the term of the Lease. The Landlord will make available to the Company a tenant improvement allowance of $28.00 per square rentable square foot of the Premises, which the Company may use towards the initial build-out of the Premises or apply to the payment of rent.

NOTE 16. SUBSEQUENT EVENTS

Commercialization Agreement with Collegium

In January 2018, pursuant to the terms of a Commercialization Agreement the Company entered into with Collegium in December 2017 (Commercialization Agreement), The Company granted Collegium the right to commercialize the NUCYNTA franchise of pain products in the U.S. Pursuant to the Commercialization Agreement, Collegium assumed all commercialization responsibilities for the NUCYNTA franchise effective January 9, 2018, including sales and marketing. The Company will receive a royalty on all NUCYNTA revenues based on certain net sales thresholds, with a minimum royalty of $135.0 million per year during each of the first four years of the Commercialization Agreement. The company may terminate the Commercialization Agreement if aggregate net sales of the NUCYNTA products fall below certain thresholds or within the first year upon the payment of an $80.0 million termination fee. Collegium may terminate at any time after the first anniversary of the transaction by giving 12 months’ notice and, if the termination date is prior to fourth anniversary of the transaction, by paying us a $25.0 million termination fee. The Company is currently still evaluating the financial statement impact of the Commercialization Agreement under the new revenue recognition Standard, ASC 606 Revenue from Contracts with Customers, which we adopted as of January 1, 2018.

New Lease

Effective February 28, 2018, the Company entered into an Office Lease (the Lease) with Lake Forest Landmark Company LLC, a Delaware limited liability company (the Landlord), pursuant to which the Company will lease approximately 31,209 rentable square feet of space (the Premises), in Lake Forest, Illinois (the Building). The Lease will commence on the earlier of the completion of the Company’s initial tenant improvements in the space or July 1, 2018, but no later than August 1, 2018 (Lease Commencement Date), and will continue thereafter for a term of five (5) years and six (6) months. The Company has the right to renew the term of the Lease for one (1) period of five (5) years, provided that written notice is made to the Landlord no later than twelve (12) months prior to the expiration of the initial term of the Lease. Prior to the Lease Commencement Date, the Company has the right to use temporary space in the Building containing approximately 6,700 rentable square feet.

The initial annual base rent will be $18.00 per rentable square foot of the Premises and will increase annually by $0.50. The lease is a triple net lease, with the Company required to pay its pro rata share of real estate taxes and operating expenses. However, the Company’s obligation to pay rent will be abated during the first six (6) months of the term of the Lease. The Landlord will make available to the Company a tenant improvement allowance of $28.00 per square rentable square foot of the Premises, which the Company may use towards the initial build-out of the Premises or apply to the payment of rent.