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

12 Months Ended

Dec. 31, 2017

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, 2017 and 2016 are summarized below (in thousands). Estimated fair value is based on quoted market prices for these investments.

			Gross		Gross
	Amortized		Unrealized		Unrealized
December 31, 2017	Cost		Gains		Losses		Fair Value
Cash and cash equivalents:
Cash	$	103,119	$	—	$	—	$	103,119
Money market funds		95		—		—		95
Commercial paper		23,670		—		—		23,670
Total cash and cash equivalents		126,884		—		—		126,884
Short-term investments
Corporate debt securities and commercial paper with maturities less than 1 year		1,210		—		(5)		1,205
Total short-term investments		1,210		—		(5)		1,205
Total	$	128,094	$	—	$	(5)	$	128,089

			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

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, 2017 (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	$	1,205	$	(5)	$	—	$	—	$	1,205	$	(5)

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, 2017 (in thousands):

December 31, 2017	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	95	$	—	$	—	$	95
Commercial paper		—		23,670		—		23,670
Corporate debt securities		—		1,205		—		1,205
Total	$	95	$	24,875	$	—	$	24,970
Liabilities:
Contingent consideration—Zipsor	$	—	$	—	$	464	$	464
Contingent consideration—Lazanda		—		—		156		156
Contingent consideration—CAMBIA		—		—		993		993
Total	$	—	$	—	$	1,613	$	1,613

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, 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
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

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, selling, general and administrative expense, and gain on divestiture of Lazanda measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the years ended December 31, 2017, 2016 and 2015 (in thousands):

	December 31,
	2017		2016		2015
Fair value, beginning of the period	$	14,825	$	14,971	$	17,595
Changes in fair value recorded in interest expense		1,079		2,408		2,307
Changes in fair value recorded in selling, general and administrative expenses		(7,708)		(122)		(3,684)
Royalties and milestone paid		(3,068)		(2,432)		(1,247)
Divestiture of Lazanda		(3,515)		-		-
Total	$	1,613	$	14,825	$	14,971