6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

For the month of July 2015

Commission File Number 000-28508

Flamel Technologies S.A.

(Translation of registrant's name into English)

Parc Club du Moulin à Vent

33 avenue du Dr. Georges Levy

69200 Vénissieux France

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F x Form 40-F ¨

Indicate by check mark whether registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ¨ No x

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-____________

Index

FLAMEL TECHNOLOGIES S.A.

	Page
Part I – FINANCIAL INFORMATION
Item 1. Condensed Consolidated Financial Statements (unaudited)
a) Condensed Consolidated Statement of Operations for the three months ended March 31, 2014 and 2015	3
b) Condensed Consolidated Statement of Comprehensive Income for the three months ended March 31, 2014 and March 31, 2015	4
c) Condensed Consolidated Balance Sheet as of March 31, 2014 and December 31, 2015	5
d) Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2014 and 2015	6
e) Consolidated Statement of Shareholders’ Equity for the three months ended March 31, 2015	7
f) Notes to Condensed Consolidated Financial Statements	8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
PART II – OTHER INFORMATION
Item 1. Legal Proceedings	21

2

FLAMEL TECHNOLOGIES S.A.

Condensed Consolidated Statement of Operations

(Unaudited)

(Amounts in thousands of dollars, except per share data)

	Three months ended March 31,
	2014			2015
Revenue:
License and research revenue	$	598			-
Product sales and services		3,960		$	32,711
Other revenues		20			15
Total revenue		4,578			32,726
Costs and expenses:
Cost of goods and services sold		(773	)		(3,630	)
Research and development		(3,944	)		(6,022	)
Selling, general and administrative		(3,516	)		(4,463	)
Fair value remeasurement of acquisition liabilities, incl. related parties		(14,626	)		(5,254	)
Acquisition note expenses, incl. related parties		(3,013	)		-
Amortisation of intangible R&D assets		(2,937	)		(3,143	)
Total		(28,809	)		(22,512	)
Profit  (loss) from operations		(24,231	)		10,214
Interest income		45			798
Interest expense		(5,552	)		(141	)
Interest expense on debt related to the royalty agreement with related parties		(156	)		(259	)
Foreign exchange gain (loss)		179			11,501
Other income (loss)		52			7
Income (loss) before income taxes		(29,663	)		22,120
Income tax benefit (expense)		2,802			(10,473	)
Net income (loss) from continuing operations		(26,861	)		11,647
Net income (loss) from discontinued operations	$	223		$	0
Net income (loss)	$	(26,638	)	$	11,647
Earnings (loss) per ordinary share (Basic)
Continuing operations	$	(0.95	)	$	0.29
Discontinued operations	$	0.01		$	0.00
Net income (loss)	$	(0.94	)	$	0.29
Earnings (loss) per share (diluted)
Continuing operations	$	(0.95	)	$	0.27
Discontinued operations	$	0.01		$	0.00
Net income (loss)	$	(0.94	)	$	0.27
Weighted average number of shares outstanding (in thousands) :
Basic		28,312			40,207
Diluted		28,312			42,879

See notes to condensed consolidated financial statements

3

Condensed Consolidated Statement of Comprehensive Income

(Unaudited)

(Amounts in thousands of dollars)

	Three months ended March 31,
	2014			2015
Net Income (loss)	$	(26,638	)	$	11,647
Other comprehensive net income (loss):
Net foreign currency translation gain (loss)		(768	)		(16,649	)
Unrealized gain (loss) on marketable Securities		-			356
Other comprehensive income (loss), net of tax		(768	)		(16,293	)
Comprehensive Income (loss)	$	(27,406	)	$	(4,646	)

4

Condensed Consolidated Balance Sheet

(Unaudited)

(Amounts in thousands of dollars, except per share data)

	December 31, 2014			March 31,  2015
ASSETS
Current assets:
Cash and cash equivalents	$	39,760		$	38,535
Marketable securities		53,074			74,637
Accounts receivable (net of allowance of $127 and $113 at December 31, 2014, and March 31, 2015 respectively)		1,679			-
Inventory		6,729			5,497
Research and development tax credit receivable short term		5,932			5,378
Prepaid expenses and other current assets		4,418			4,347
Total current assets from continuing operations		111,592			128,394
Total current assets from assets held for sale		730			940
Goodwill, net		18,491			18,491
Property and equipment, net		1,776			1,777
Intangible assets		28,389			25,248
Other assets:
Income tax deferred charge		13,102			11,444
Other long-term assets from continuing operations		125			115
Total long term assets from continuing operations		61,883			57,075
Total long term assets from assets held for sale		-			-
Total assets including "assets held for sale"	$	174,205		$	186,409
LIABILITIES
Current liabilities:
Current portion of long-term debt, incl to related parties		42,332			44,623
Current portion of capital lease obligations		13			9
Accounts payable		8,024			9,037
Deferred revenue		1,336			3,545
Accrued expenses		5,667			4,354
Other current liabilities		5,659			5,009
Income tax payable		7,643			10,926
Total current liabilities from continuing operations		70,674			77,503
Total current liabilities from liabilities held for sale		168			149
Long-term debt, less current portion, incl. to related parties		76,135			78,554
Deferred tax liabilities		-			5,863
Other long-term liabilities		2,333			2,094
Total long-term liabilities from continuing operations		78,468			86,511
Total long-term liabilities from liabilities held for sale		-			-
Shareholders' equity:
Ordinary shares: 40,191,264 issued and outstanding at December 31, 2014 and 40,253,014 at March 31, 2015 (shares authorised 52,549,354) at nominal value of 0.122 euro		6,188			6,196
Additional paid-in capital		346,582			348,571
Accumulated deficit		(320,452	)		(308,805	)
Accumulated other comprehensive income (loss)		(7,423	)		(23,716	)
Total shareholders' equity		24,895			22,246
Total liabilities and shareholders' equity including held for sale	$	174,205		$	186,409

5

FLAMEL TECHNOLOGIES S.A.

Condensed Consolidated Statement of Cash Flows

(Unaudited)

	Three months ended March 31,
	2014			2015
Cash flows from operating activities:
Net income (loss)	$	(26,638	)	$	11,647
Depreciation of property and equipment and intangible assets		3,570			3,260
Loss (gain)  on disposal of property and equipment		3			-
Gains on sales of marketable securities		-			(489	)
Unrealized exchange gain		-			(11,296	)
Grants recognized in other income and income from operations		(168	)		-
Remeasurement of acquisition liabilities		17,633			5,254
Interest expenses on debt related to the royalty agreement including related party		-			259
Income tax		(2,807	)		5,864
Stock compensation expense		772			1,593
Increase (decrease) in cash from:
Accounts receivable		2,153			1,376
Inventory		(1,369	)		1,207
Prepaid expenses and other current assets		136			(368	)
Research and development tax credit receivable		6,462			(127	)
Accounts payable		(1,672	)		1,487
Deferred revenue		(1,239	)		2,177
Accrued expenses		17			(858	)
Other current liabilities		213			4,091
Other long-term assets and liabilities		536			198
Net cash provided by (used in) operating activities		(2,398	)		25,275
Cash flows from investing activities:
Purchases of property and equipment		(399	)		(234	)
Proceeds from disposal of property and equipment		3			-
Purchase of marketable securities		(27,752	)		(26,012	)
Proceeds from sales of marketable securities		357			2,817
Net cash provided by (used in) investing activities		(27,791	)		(23,429	)
Cash flows from financing activities:
Reimbursment of loans		(34,288	)		-
Principal payments on capital lease obligations		(26	)		(3	)
Earnout payments for acquisition		-			(323	)
Cash proceeds from issuance of ordinary shares and warrants		114,388			247
Net cash provided by financing activities		80,074			(79	)
Effect of exchange rate changes on cash and cash equivalents		(1,015	)		(2,992	)
Net increase (decrease) in cash and cash equivalents		48,870			(1,225	)
Cash and cash equivalents, beginning of period		6,635			39,760
Cash and cash equivalents, end of period	$	55,505		$	38,535
Supplemental disclosures of cash flow information:
Income tax paid		39			-
Interest paid		5,602			183

6

FLAMEL TECHNOLOGIES S.A.

Consolidated Statement of Shareholders’ Equity (Unaudited)

(Amounts in thousands of dollars)

	Ordinary Shares				Additional Paid-in		Accumulated			Accumulated Other Comprehensive Income			Shareholders'
	Shares		Amount		Capital		Deficit			(Loss)			Equity
Balance at January 1, 2015		40,191,264		6,188		346,581		(320,452	)		(7,423	)		24,894
Subscription of warrants														-
Issuance of ordinary shares on exercise of stock or warrants		61,750		8		239								247
Stock-based compensation expense						1,751								1,751
Net income								11,647						11,647
Other comprehensive income (loss)											(16,293	)		(16,293	)
Balance at March 31, 2015		40,253,014		6,196		348,571		(308,805	)		(23,716	)		22,246

7

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

1. SUMMARY OF SIGNIFICANT accounting policies

In the opinion of the management of Flamel Technologies S.A. (the “Company”), the accompanying unaudited, condensed, consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements. Accordingly, these Financial Statements do not include all of the information and footnotes required for complete annual financial statements, since certain footnotes and other financial information required by generally accepted accounting principles in the United States (or US GAAP) can be condensed or omitted for interim reporting requirements. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of our financial position and operating results have been included.

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2015. These condensed consolidated interim financial statements should be read in conjunction with the Company's audited annual financial statements.

The reporting currency of the Company and its wholly-owned subsidiaries is the U.S. dollar as permitted by the SEC for a foreign private issuer (S-X Rule 3-20(a)). All financial statement amounts of the Company and any other subsidiary for which the functional currency is the Euro or any other currency other than the U.S. dollar, are translated into U.S. dollar equivalents at exchange rates as follows: (1) asset and liability accounts at period-end rates, (2) income statement accounts at weighted average exchange rates for the period-end, and (3) shareholders' equity accounts at historical rates. Corresponding translation gains or losses are recorded in shareholders' equity.

The Company followed the guidance in Financial Statements Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 205 Presentation of Financial Statements (ASC 205), Topic 360 Property, Plant and Equipment (ASC 360) and Accounting Standards Update (ASU 2014-08), Reporting of Discontinued Operations and Disclosures of Disposals of Components of an Entity in determining the accounting for the divestiture of the Pessac facility which occurred on December 1, 2014. Presenting the divestiture as a discontinued operation provides a better understanding of the results of the Company’s new strategy and in assessing the impact of the disposal on the ongoing operations of the entity.

The results of discontinued operations, less income taxes, have been reported as a separate component of income in the statement of operations. The assets and liabilities of the discontinued operation have been reported separately in the asset and liability sections, of the balance sheet for the periods presented therein. See note 4 below for a description of the facts and circumstances related to the disposal.

Other comprehensive income includes currency translation adjustments and unrealized gains on marketable securities. As of March 31, 2015 it represents an amount of $16.3 million.

8

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

2. REVENUES

2.1 Product sales and services

The Company recognized net product sales of $32.7 million for the first three months of 2015 compared to $3.96 million for the three month period ended March 31, 2014. Branded product sales are generated on sales from wholesalers to hospitals of Bloxiverz^® and Vazculep^™. Net product sales of wholesalers to their customers (hospitals) are determined using sales data from an independent, recognised wholesaler inventory tracking service and are calculated by deducting estimates for returns for wholesalers’ customers, chargebacks, payment discounts and other sales or discounts offered from the applicable gross sales value. A total of $32.1 million of net revenues on shipments to wholesalers has been deferred as of March 31, 2015, of which $30.7 million relate to Bloxiverz^® and $1.4 million for Vazculep^™ compared to, $7.0 million and $2.7 million respectively, as of December 31, 2014. Gross product sales to hospitals amounted to $74.5 million in the three month period ended March 31, 2015 compared to $4.7 million as of March 31, 2014.

A summary of recognized net sales for the three months ended March 31, 2015 and ending net deferred sales as of March 31, 2015 for the company’s two FDA-approved products as of March 31, 2015 is presented below:

Quarter ended March 31, 2015 ($ in thousands)	Sales Recognized in the Current Period (Branded Only)		Deferred Sales		Deferred Sales reclassed against outstanding Accounts Receivable			Ending Deferred Sales for which Payment has been Collected
Gross Sales	$	74,480	$	35,797	$	(31,954	)	$	3,843
Less:
Chargebacks		31,944		-		-			-
Wholesaler distribution fees		6,779		2,946		(2,659	)		287
Cash discounts and other		1,491		716		(639	)		77
GPO fees and returns		2,098		-		-			-
Net Sales	$	32,168	$	32,135	$	(28,656	)	$	3,479

The sales deductions discussed above are presented in the consolidated financial statements as reduction to gross revenues or deferred revenue, as presented above, and a decrease to accounts receivable or an increase to accrued liabilities.

A summary of changes for each reserve or liability for Bloxiverz^®, Vazculep^™ and the company’s generic pharmaceutical product for the three month period ended March 31, 2015 is as follows:

Quarter ended March 31, 2015 ($ in thousands)	Beginning Balance		Additions		Reductions			Ending Balance
Accounts Receivable Reserves:
Chargebacks	$	1,008	$	37,290	$	(35,116	)	$	3,182
Wholesaler distribution fees		1,079		4,185		(3,311	)		1,953
Cash Discounts and other		252		2,265		(1,915	)		602
Liabilities:
GPO fees		112		1,083		(112	)		1,083
Sales returns		234		2,812		(1,801	)		1,245
Total	$	2,686	$	47,635	$	(42,256	)	$	8,065

9

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

3. RESEARCH TAX CREDIT

The French government provides tax credits to companies for spending on innovative research and development. The research tax credit is considered as a grant and is deducted from operational expenses.

For the three month period ended March 31, 2015, the credit amounted to $660,000 compared to $1,438,000 for the three month period ended March 31, 2014. The decrease reflects the reduction in R&D spending that is deemed eligible for the R&D tax credit in France.

4. DISCONTINUED OPERATIONS

On December 1, 2014, the Company signed an Asset Purchase Agreement with Recipharm for the divestiture of its development and manufacturing facility located in Pessac, France.

The assets included in the divestiture were tangible equipment, furniture and fixtures, inventories and all intellectual property rights relating to the operation and technological know-how necessary in manufacturing the products that are produced in the facility and the assignment to Recipharm of all employees, customer contracts and liabilities which primarily relate to agreements of the Company with GlaxoSmithKline (“GSK”) for the manufacture and sale of Coreg CR^®. Coreg CR^® was Flamel’s lead product using the Micropump drug delivery platform that was developed with GSK and has been approved and sold in the US since 2007. The semi-finished product is manufactured in the Pessac Facility. The contracts assigned to Recipharm exclude the Amended 2003 License Agreement and 2004 License Agreement (collectively “License Agreements”) between Flamel and GSK for the development of Coreg CR^®. However, the royalties to be earned by Flamel from the sales of Coreg CR^® were transferred to Recipharm as part of the Asset Purchase Agreement. All costs and future revenues relating to the manufacture and sale of Coreg CR^® were transferred to Recipharm.

Royalties from Coreg CR^® sales amounted to $1.8 million in the first quarter of 2014. Revenues from sales of Coreg CR^® microparticles to GSK amounted to $1.98 million in the first quarter of 2014. Revenues from research revenues with undisclosed partners amounted to $0.8 million in the first quarter of 2014.

The aggregate consideration paid for the acquired assets and business was $13.2 million, plus the value of acquired inventory determined using inventory valuation methodology as defined by the two parties. All cash and receivables pertaining to Pessac Facility business prior to the sale were retained by Flamel. A contribution of $0.7 million was made to finance potential future retirement indemnities payable on transferred employees. The business was accounted for as a discontinued operation in the fourth quarter of 2014 and, therefore, the operating results of our Pessac Facility business were included in Discontinued Operations for the three-month period ended March 31, 2014.

In connection with the Asset Purchase Agreement, the Company entered into a Master Agreement on Supply and Services of Products (“MSA”). Recipharm will provide various services in the domain of R&D and manufacture of pharmaceutical products for an initial non-cancellable period of five years for a minimum amount of services per year and for a cumulative total of $22.5 million. Over the initial term, any services to be provided to Flamel by Recipharm shall include internal and external costs incurred by Recipharm plus 20%, which has been determined to be fair value for such services. As of March 31, 2015 for the quarter ended, these services amounted to $1.3 million.

10

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Summary results of operations for the Pessac business for the three months ended March 31, 2014 were as follows:

In thousands of U.S. Dollars	Three months ended March, 31 2014
Revenues	$	4,597
Income (loss) from operations		229
Interest Expense		(1	)
Income taxes		(5	)
Income (loss) from discontinued operations, net of tax	$	223

5. SHAREHOLDERS' EQUITY

During the three month period ended March 31, 2015, 61,750 shares were issued by the Company as a result of the exercise of stock options and warrants.

The total amount of shares outstanding as of March 31, 2015 amounted to 52,549,354.

6. STOCK COMPENSATION EXPENSE

During the three month period ending March 31, 2015, no stock options, free share awards or warrants were granted by the Company.

Net income (loss) before and after stock-based compensation is as follows:

(in thousands except per share data)	Three months ended March 31,
	2014			2015
Net income (loss)	$	(26,638	)	$	11,647
Net income (loss) per share
Basic	$	(0.94	)	$	0.29
Diluted	$	(0.94	)	$	0.27
Number of shares used for computing (weighted average)
Basic		28,312			40,207
Diluted		28,312			42,879
Stock-based compensation (ASC 718)
Cost of products and services sold		10			0
Research  and development		343			459
Selling, general and administrative		419			1,292
Total		772			1,751
Net income (loss) before stock-based compensation		(25,866	)		13,398
Net income (loss) before stock-based compensation per share
Basic	$	(0.91	)	$	0.33
Diluted	$	(0.91	)	$	0.31

11

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

7. INCOME TAX

Income (loss) before income taxes comprises the following for the three month period ended March 31, 2015:

Ireland		(5,039	)
France		10,236
United States		16,924
Total	$	22,121

In accordance with ASC 740-270, Interim Reporting, the tax provision as of March 31, 2015 is computed using an estimated annual effective tax rate of 35%. This is applied to income before tax, excluding losses from Irish operations, since no benefit is anticipated to be recognized on net operating loss carry forwards for the current fiscal year and items for which a reliable estimate cannot be made. The income tax provision as of March 31, 2015 amounts to $10.5 million.

8. INTANGIBLE ASSETS

	December 31,										March 31,
	2014										2015
(In thousands of U.S. dollars)	Gross carrying amount		Accumulated amortization			Impairment			Intangible assets, net		Gross carrying amount		Accumulated amortization			Impairment			Intangible assets, net
													-
Intangible asset corresponding to acquired IPR&D of Bloxiverz		35,248		(11,749	)					23,499		35,248		(14,686	)					20,562
Intangible asset corresponding to acquired IPR&D of Vazculep		12,061		-			(7,170	)		4,891		12,061		(204	)		(7,170	)		4,687
Total Intangible assets	$	47,309	$	(11,749	)	$	(7,170	)	$	28,390	$	47,309	$	(14,890	)	$	(7,170	)	$	25,249

Intangible assets corresponding to acquired in-process R&D of Bloxiverz^® is being amortized straight-line over a 3 year period as of January 1, 2014. Intangible assets corresponding to acquired in-process R&D of Vazculep^™ is amortized straight-line over a 6-year period as of January 1, 2015.

9. INVENTORY

The components of inventories were as follows:

(In thousands of U.S. dollars)	December 31, 2014		March 31, 2015
Raw materials		1,661		1,861
Finished goods		5,068		3,636
Inventories, net		6,729		5,497

12

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

10. LONG-TERM DEBT

Long-term debt comprises:

(In thousands of U.S. dollars)	31-Dec-14		31-Mar-15
Oseo ANVAR loans (a)		1,927		1,707
French Ministry of Research (a)		1,790		1,586
Acquisition liability contingent consideration (b)		70,112		72,169
Acquisition liability warrant consideration (b)		34,542		37,417
Deerfield Royalty agreement (c)		6,837		6,973
Broadfin Royalty agreement (d)		3,259		3,323
Total		118,467		123,176
Current portion		42,332		44,623
Long-term portion		76,135		78,554

(a) French government agencies provide financing to French companies for research and development. At December 31, 2014 and March 31, 2015, the Company had outstanding loans of $3,717,000 and $3,293,000, respectively for various programs. These loans do not bear interest and are repayable only in the event the research project is technically or commercially successful. Potential repayment is scheduled to occur from 2015 through 2019.

(b) The Acquisition liability relates to the acquisition by the Company on March 13, 2012, through its wholly owned subsidiary Flamel US Holdings, Inc., or Flamel US, all of the membership interests of Éclat Pharmaceuticals, LLC. In exchange for all of the issued and outstanding membership interests of Éclat Pharmaceuticals, Flamel US provided consideration consisting of:

· a $12 million senior, secured six-year note guaranteed by the Company and its subsidiaries and secured by the equity interests and assets of Éclat. The note was repaid on March 24, 2014 in its entirety generating an interest expense of $3 million;

· two warrants to purchase a total of 3,300,000 American Depositary Shares, each representing one ordinary share of Flamel (“ADSs”); and

· a commitment to make earnout payments of 20% of any gross profit generated by certain Éclat Pharmaceuticals products. The Purchase Agreement also contains certain representations and warranties, covenants, indemnification and other customary provisions.

As of March, 2015, the fair value of the warrants was determined by using a Black-Scholes option pricing model with the following assumptions:

	Three months ended March 31, 2014			Three months ended March 31, 2015
Share price	$	13.40		$	17.98
Risk-free interest rate		1.32	%		0.89	%
Dividend yield		-			-
Expected volatility		51.79	%		61.80	%
Expected term		4 years			3 years

13

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Pursuant to guidance of ASC 815-40-15-7(i), the Company determined that the Warrants issued in March 2012 as consideration for the acquisition of Éclat could not be considered as being indexed to the Company’s own stock, on the basis that the exercise price for the warrants is determined in U.S. dollars, although the functional currency of the Company is the Euro. The Company determined that these warrants should be accounted as a debt instrument.

As of March 31, 2015, the deferred consideration fair value was estimated by using a discounted cash flow model based on probability adjusted annual gross profit of each of the Éclat Pharmaceuticals products. A discount rate of 20% has been used.

(c) On February 4, 2013 the Company concluded a $15 million debt financing transaction (Facility Agreement) with Deerfield Management a current shareholder. The consideration received was as follows:

· $12.4 million for a facility agreement of a nominal value of $15 million, including a premium on reimbursement of $2.6 million. The indebtedness was repaid on March 24, 2014 in its entirety, the accelerated reimbursement of this note resulted in interest expenses of $2.5 million;

· $2.6 million for a Royalty Agreement whereby, the Company’s wholly owned subsidiary Éclat subject to required regulatory approvals and launch of product, is to pay a 1.75% Royalty of the net sales of certain products sold by Éclat and any of its affiliates until December 31, 2024.

The fair value of the Royalty was estimated using a probability-weighted discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals. This fair value measurement is based on significant inputs not observable in the market and thus represents a level 3 measurement as defined in ASC 820. The discount rate used is 20%.

(d) On December 3, 2013 the Company concluded with Broadfin Healthcare Master Fund, a current shareholder, a $15 million debt financing transaction (Facility Agreement) divided in 3 tranches of $5 million each, Under the terms of the Facility, upon closing Broadfin made an initial loan of $5.0 million. Consideration received was as follows:

· $2.8 million for a Facility agreement of a nominal value of $5.0 million. Loans under the Facility were scheduled to mature upon the earlier to occur of (i) January 31, 2017 and (ii) the repayment in full of all outstanding amounts under the Deerfield Facility, but in no event prior to November 15, 2015. The indebtedness was repaid on March 24, 2014 in its entirety, the accelerated reimbursement of this note resulted in interest expenses of $ 2.2 million;

· $2.2 million for a Royalty agreement whereby, the Company’s wholly owned subsidiary Éclat subject to required regulatory approvals and launch of product, is to pay a 0.834% Royalty of the net sales of certain products sold by Éclat and any of its affiliates until December 31, 2024.

The fair value of the Royalty was estimated using a probability-weighted discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals. This fair value measurement is based on significant inputs not observable in the market and thus represents a level 3 measurement as defined in ASC 820. The discount rate used is 20%.

Total future payments on long-term debt for the next five years ending March 31 (assuming the underlying projects are commercially or technically successful for governmental research loans) are as follows:

14

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

(In thousands of U.S. dollars)	Mar 31, 2015
2015		36,368
2016		19,418
2017		12,260
2018		12,144
2019		9,056
2020		6,920
		96,166

11. RELATED PARTY TRANSACTIONS

In March 2012, we acquired, through our wholly owned subsidiary Flamel US Holdings, all of the membership interests of Éclat from Éclat Holdings, an affiliate of Flamel’s largest shareholder Deerfield Capital L.P. The consideration consisted of a $12 million senior, secured six-year note that is guaranteed by us and our subsidiaries and secured by the equity interests and assets of Éclat, two warrants to purchase a total of 3,300,000 ADSs of Flamel and commitments to make earnout payments of 20% of any gross profit generated by certain Éclat products and 100% of the gross profit generated by our former product Hycet^®, up to a maximum of $1 million, which we sold in 2013. The $12 million senior note was repaid in full in March 2014 using the net proceeds from our public sale of ADSs and the Hycet^® asset was disposed of in November 2013. Upon closing of the acquisition, Mr. Anderson, the Chief Executive Officer of Éclat, was appointed Chief Executive Officer of Flamel. Mr. Anderson retains a minority interest in Éclat Holdings, (now renamed Breaking Stick Holdings, LLC), and does not have the ability to control this entity by virtue of his minority interest. The senior secured note was repaid in full in March 2014.

On February 4, 2013, we entered into a Facility Agreement (the “Deerfield Facility”), through Flamel US with Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P. (together, the “Deerfield Entities”) providing for debt financing of $15 million by the Deerfield Entities (the “Loan”). The loan was repaid in full in March 2014 using the net proceeds from our public sale of ADSs.

In conjunction with our entry into the Deerfield Facility, Éclat entered into a Royalty Agreement with Horizon Santé FLML, Sarl and Deerfield Private Design Fund II, L.P., both affiliates of the Deerfield Entities (together, “Deerfield PDF/Horizon”). The Royalty Agreement provides for Éclat to pay Deerfield PDF/Horizon 1.75% of the net sales price of the products sold by us and any of our affiliates until December 31, 2024, with royalty payments accruing daily and paid in arrears for each calendar quarter during the term of the Royalty Agreement.

We have also entered into a Security Agreement dated February 4, 2013 with Deerfield PDF/Horizon, whereby Deerfield PDF/Horizon was granted a security interest in the intellectual property and regulatory rights related to the products to secure the obligations of Éclat and Flamel US, including the full and prompt payment of royalties to Deerfield PDF/Horizon under the Royalty Agreement.

On December 3, 2013, we and certain of our U.S. subsidiaries entered into a Facility Agreement (the “Broadfin Facility”) with Broadfin Healthcare Master Fund, Ltd. (“Broadfin”) providing for loans by Broadfin in an aggregate amount not to exceed $15.0 million. The loans under the Broadfin Facility and the obligations under the Royalty Agreement were secured by a first priority security interest in intellectual property associated with our Medusa technology and a junior lien on substantially all of the assets of the borrowers, which were previously pledged in connection with the Deerfield Facility, the Royalty Agreement and the notes issued in connection with the Éclat acquisition.

15

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Under the terms of the Broadfin Facility, upon closing Broadfin made an initial loan of $5.0 million and we had the ability to request, at any time prior to August 15, 2014, up to two additional loans in the amount of $5.0 million each, with funding subject to certain specified conditions. We had the ability to prepay the outstanding loans under the Broadfin Facility at any time, without prepayment penalty and the full $5.0 million outstanding was subsequently repaid using a portion of the net proceeds from our public sale of ADSs in March 2014.

In connection with entering into the Broadfin Facility, we also entered into a Royalty Agreement with Broadfin, dated as of December 3, 2013 (the “Broadfin Royalty Agreement”). Pursuant to the Broadfin Royalty Agreement, we are required to pay a royalty of 0.834% on the net sales of certain products sold by Éclat Pharmaceuticals, LLC and any of its affiliates until December 31, 2024.

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

At December 31, 2014 and March 31, 2015, the carrying values of financial instruments such as cash and cash equivalents, trade receivables and payables, other receivables and accrued liabilities and the current portion of long-term debt approximated their market values, based on the short-term maturities of these instruments.

The company calculates fair values for its marketable securities based on quoted market prices for identical assets and liabilities which represents Level 1 of ASC 820-10 fair value hierarchy.

At December 31, 2014 and March 31, 2015 the fair values of long-term debt and long-term receivables were comparable with their respective carrying values.

The following table presents information about the Company securities based on quoted market prices for identical assets and liabilities for March 31, 2015 and indicates the fair value hierarchy of the valuation technics utilized to determine such fair value.

											Three months ended Mar, 31  2015									Three months ended March,31 2014
	Net Carrying Value as of December 31,		Net Carrying Value as of		Fair Value Measured and Recorded Using						Operational Gain (losses) recognized in			Financial Gain (losses) recognized in						Operational Gain (losses) recognized in			Financial Gain (losses) recognized in
(in thousands of US Dollars)	2014		Mar 31, 2015		Level 1		Level 2		Level 3		earnings			earnings			Total			earnings			earnings			Total
Assets
Cash and cash equivalent		39,760		38,536		38,536		-		-		-			-			-			-			-			-
Marketable securities		53,074		74,637		74,637		-		-		-			531			531			-			-			-
Liabilities
Acquisition liability contingent consideration (a)		70,112		72,169		-		-		72,169		(2,380	)		-			(2,380	)		(849	)					(849	)
Acquisition liability note (b)		-		-		-		-		-								-			(3,013	)					(3,013	)
Acquisition liability warrant consideration (c)		34,542		37,417		-		-		37,417		(2,875	)		-			(2,875	)		(13,777	)		-			(13,777	)
Deerfield Royalty Agreement (d)		6,837		6,973						6,973					(176	)		(176	)					(105	)		(105	)
Broadfin Royalty Agreement (d)		3,259		3,323						3,323					(83	)		(83	)		-			(52	)		(52	)
Total												(5,254	)		(259	)		(5,513	)		(17,639	)		(157	)		(17,796	)

The fair values of the financial instruments in connection with the acquisition of Éclat (see note 10 Long-Term Debt) are estimated as follows:

(a) Acquisition liability contingent consideration: the fair value is estimated using a discounted cash flow model based on probability adjusted projected annual gross profit of each of the products which formed the project portfolio at the time of acquisition of Éclat Pharmaceuticals (Note 10 Long Term Debt).

16

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

The fair value of the contingent consideration will change over time in accordance with the changes in market conditions and thus business plan projections as the relate to market size, market share, product pricing, competitive landscape, and gross profit margins expected for each of the products.

(b) Acquisition liability Note: the Company uses a probability-weighted discounted cash flow model (see note 10 Long Term Debt). The note was repaid on March 24, 2014.

(c) Acquisition liability warrant consideration: the Company uses a Black-Scholes option pricing model. The fair value of the warrant consideration will change over time depending on the volatility and share price at balance sheet date (see note 10 Long Term Debt).

(d) Broadfin and Deerfield Royalty Agreement: the fair value is estimated using a discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals (Note 10 Long Term Debt). The discount rate is 20%.

The following tables provide a reconciliation of fair value for which the Company used Level 3 inputs:

	Acquisition
(in thousands of US Dollars)	Liabilities
Liability recorded upon acquisition	$	(50,927	)
Operational gain (loss) recognized in earnings for fiscal year 2012	$	18,993
Operational gain (loss) recognized in earnings for fiscal year 2013	$	(28,135	)
Payment deferred consideration (Hycet)	$	841
Payment interest on acquisition liability note	$	335
Operational gain (loss) recognized in earnings for fiscal year 2014	$	(60,503	)
Reimbursment of acquisition liability note	$	12,000
Payment of interest on acquisition liability note	$	1,389
Payment of deferred consideration	$	1,354
Net carrying value at January 1, 2015	$	(104,653	)
Operational gain (loss) recognized in earnings for three months to Mar 31, 2015	$	(5,255	)
Payment of interest on acquisition liability note	$	-
Reimbursment of acquisition liability note	$	-
Payment of deferred consideration	$	323
Net carrying value at Mar 31, 2015	$	(109,586	)

17

FLAMEL TECHNOLOGIES S.A.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

	Deerfield Royalty			Broadfin Royalty
(in thousands of US Dollars)	Agreement			Agreement
Liability recorded upon execution of Agreeement	$	(2,600	)	$	(2,187	)
Interest expense recognized in earnings  for 2013	$	(1,990	)
Interest expense recognized in earnings for 2014	$	(2,386	)	$	(1,139	)
Payment of Royalty	$	140		$	67
Net carrying value at Jan 1, 2015	$	(6,837	)	$	(3,259	)
Interest expense recognized in earnings for 3 months to March 31, 2015	$	(176	)	$	(83	)
Payment of Royalty	$	39		$	19
Net carrying value at Mar 31, 2015	$	(6,974	)	$	(3,323	)

The acquisition liabilities, consisting of the warrants and deferred consideration, and Royalty agreement all of which are classified as long-term debt, are measured at fair value and the income or expense may change significantly as assumptions regarding the valuations and probability of successful development and approval of products in development vary.

18

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Forward-Looking Statements

This report on Form 6-K contains forward-looking statements. We may make additional written or oral forward-looking statements from time to time in filings with the Securities and Exchange Commission or otherwise. The words ‘believe,’ ‘expect,’ ‘anticipate,’ ‘project,’ ‘will,’ ‘continue’ and similar expressions identify forward-looking statements, which speak only as of the date the statement is made. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although we believe that our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations, our business is subject to significant risks and there can be no assurance that actual results of our development and manufacturing activities and our results of operations will not differ materially from our expectations.

Forward-looking statements are subject to inherent risks and uncertainties, some of which cannot be predicted or quantified. Future events and actual results could differ materially from those set forth in, contemplated by or underlying the forward-looking statements. We undertake no obligation to update these forward-looking statements as a result of new information, future events or otherwise. You should not place undue reliance on these forward looking statements. Factors that could cause actual results to differ from expectations include, among others, those listed in Part II, Item 1A, Risk Factors of this Form 6-K and set forth in more detail in “Risk Factors” in our Form 20-F for the fiscal year ended December 31, 2014.

RESULTS OF OPERATIONS

For the three months ended March 31, 2015, Flamel reported total revenues of $32.7 million compared to $4.6 million of revenues reported for the first three months of 2014, as Bloxiverz^® accounted for 100% of the neostigmine methylsulfate market over the course of the period and was the sole supplier for a substantial period over the quarter.

Operating expenses decreased to $22.5 million during the three months March 31, 2015 from $28.8 million for the three months March 31, 2014, and includes non-cash expenses of $5.3 related to fair-value measurement of certain liabilities associated with the acquisition of Éclat Pharmaceuticals in 2015 compared with a $14.6 million for the three month period of 2014, and amortization of intangible assets associated with the development of Bloxiverz^® and Vazculep^™ for a total of $3.1 million compared with $2.9 million in the prior period.

Costs of goods and services sold were $3.6 million in the three month period ended March 31, 2015 compared to $0.7 million for the three month period ending March 31, 2014. This increase is aligned with the increase in product sales.

Research and development expenditures increased to $6.0 million in the three months ended March 31, 2015 compared to $3.9 million in the three months ended March 31, 2014. This increase is attributed to the Company’s continued investment in its pipeline and other proprietary products.

19

Selling, general and administrative expenses increased from $3.5 million in the three months ended March 31, 2014 to $4.5 million in the three months ended March 31, 2015. This increase results primarily from non-cash stock compensation expense.

Net income for the three months ended March 31, 2015 was $11.6 million, compared to a net loss of ($26.6) million in the three months ended March 31, 2014. Net income per share (basic) for the three months ended March 31, 2015 was $0.29, compared to a net loss per share in the year-ago period of $(0.94). Flamel has computed a tax provision of $10.5 million as of March 31, 2015 using an estimated annual effective tax rate of 35% applied to income before taxes from the US and French operations. Flamel expects to utilize the majority of US net operating losses carry-forwards over the remainder of the fiscal year 2015 and will remit income tax payments to the IRS on a quarterly basis.

LIQUIDITY AND CAPITAL RESOURCES

As of March 31, 2015, the Company had $113.2 million in cash, cash equivalents and marketable securities, compared to $92.8 million on December 31, 2014. This increase reflects the increase in revenues over the quarter after financing continued investment in the pipeline products

20

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

While we may be engaged in various claims and legal proceedings in the ordinary course of business, we are not involved (whether as a defendant or otherwise) in and we have no knowledge of any threat of, any litigation, arbitration or administrative or other proceeding which management believes will have a material adverse effect on our consolidated financial position or results of operations.

Item 1A. Risk Factors

Item 3, “Key Information - Risk Factors,” of our Annual Report on Form 20-F for the year ended December 31, 2014 describes some of the risks and uncertainties associated with our business. The risk factors set forth below highlight some of these risk disclosures. Other factors may also exist that we cannot anticipate or that we currently do not consider to be significant based on information that is currently available. In addition to the other information in our SEC filings, you should consider carefully the following risk factors. The occurrence of any one or more of the risks or uncertainties described below or in our Form 20-F could have a material adverse effect on our business, financial condition and results of operations, cash flows and future results:

· we depend on a small number of products and customers for the majority of our revenues and the loss of any one of these products or customers could reduce our revenues significantly.

· our Bloxiverz^® and Vazculep™ products are not patent protected and could face substantial competition resulting in a loss of market share or forcing us to reduce the prices we charge for those products, which would have a material adverse effect on our revenues and results of operation.

· we could fail to successfully complete the research and development for the two pipeline products we are evaluating for potential application to the FDA pursuant to our UMD strategy, or our competitors could complete the development of such products and apply for FDA approval of such products before us, which would have a material adverse effect on our future business opportunities.

· we may depend on partnership arrangements or strategic alliances for the commercialization of some of our products, and the failure of any third party to fulfill its duties under such an arrangement or alliance could have a material adverse effect on our financial condition and results of operation.

· our products may not gain market acceptance, and lack of such market acceptance would limit our ability to generate revenue which would have a material adverse effect on our business.

· our products may not reach the commercial market for a number of reasons, which would adversely affect our future revenues.

· we must invest substantial sums in research and development (“R&D”) in order to remain competitive, and we may not fully recover these investments.

· the development of several of our drug delivery platforms and products depends on the services of a single provider and any interruption of such provider’s operations could significantly delay or have a material adverse effect on our product pipeline.

· we depend upon a limited number of suppliers to manufacture our products and to deliver certain raw materials used in our products and the failure of any such supplier to timely deliver sufficient quantities of products or raw materials could have a material adverse effect on our business.

21

· if our competitors develop and market technologies or products that are more effective or safer than ours, or obtain regulatory approval and market such technologies or products before we do, our commercial opportunity will be diminished or eliminated.

· if we cannot adequately protect our drug delivery platforms and proprietary information, we may be unable to sustain a competitive advantage.

· we depend on key personnel to execute our business plan and the loss of any one or more of these key personnel may limit our ability to effectively pursue our business plan.

· we may cease to qualify as a foreign private issuer, which would increase the costs and expenses we incur to comply with U.S. Securities Laws.

INCORPORATION BY REFERENCE

As provided by in the Company’s Registration Statements on Form F-3, as filed with the Securities and Exchanges Commission on September 18, 2012 and February 12, 2014, each as subsequently amended; this report is being incorporated by reference into such registration statements.

22

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Flamel Technologies, S.A.
Dated:  July 10, 2015	/s/ Michael S. Anderson
	Michael S. Anderson
	Chief Executive Officer

23

XML

INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	$ 47,309	$ 47,309
Accumulated amortization	(14,890)	(11,749)
Impairment	(7,170)	(7,170)
Intangible assets, net	25,249	28,390
Research and Development In Process [Member] | Bloxiverz [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	35,248	35,248
Accumulated amortization	(14,686)	(11,749)
Intangible assets, net	20,562	23,499
Research and Development In Process [Member] | Vazculep [Member]
Finite-Lived Intangible Assets [Line Items]
Gross carrying amount	12,061	12,061
Accumulated amortization	(204)	0
Impairment	(7,170)	(7,170)
Intangible assets, net	$ 4,687	$ 4,891

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Operational gain (loss) recognized in earnings	$ (5,254)	$ (17,633)
Payment of interest on acquisition liability note	0			$ 335
Reimbursment of acquisition liability note	0
Payment of deferred consideration	323			841
Fair Value, Inputs, Level 3 [Member]
Liability recorded upon acquisition	(104,653)				$ (50,927)
Operational gain (loss) recognized in earnings			$ (60,503)	(28,135)	18,993
Payment of interest on acquisition liability note			1,389
Reimbursment of acquisition liability note			12,000
Payment of deferred consideration			1,354
Net carrying value	(109,586)		(104,653)
Deerfield Royalty Agreement [Member] | Fair Value, Inputs, Level 3 [Member]
Liability recorded upon acquisition	(6,837)			(2,600)
Interest expense recognized in earnings	(176)		(2,386)	(1,990)
Payment of royalty	39		140
Net carrying value	(6,974)		(6,837)		(2,600)
Broadfin Royalty Agreement [Member] | Fair Value, Inputs, Level 3 [Member]
Liability recorded upon acquisition	(3,259)			$ (2,187)
Interest expense recognized in earnings	(83)		(1,139)
Payment of royalty	19		67
Net carrying value	$ (3,323)		$ (3,259)		$ (2,187)

XML

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) $ in Millions			1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 03, 2013	Feb. 04, 2013	Mar. 31, 2012	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2013
Contingent Potential Cash Payment						$ 1.0
Debt Financing Facility Agreement Amount	$ 5.0	$ 15.0
Business Combination Commitment Percentage						100.00%
Royalty Agreement [Member]
Long Term Debt Repayment Percentage	0.834%	1.75%
Debt Repayment Term	Dec. 31, 2024	Dec. 31, 2024
Facility Agreement [Member]
Debt Financing Facility Agreement Amount	$ 15.0	$ 15.0
Line of Credit Facility, Maximum Borrowing Capacity	15.0
Line Of Credit Facility Initial Loan	5.0
Line Of Credit Facility Additional Loan	$ 5.0
Debt Repayment Term	Jan. 31, 2017
Eclat Pharmaceuticals [Member]
Percentage Of Earn Out Payment				20.00%		20.00%
Eclat Pharmaceuticals [Member] | Senior Secured Six Year Note [Member]
Secured Debt			$ 12.0	$ 12.0
Warrants Issued During Period Warrants New Issues			3,300,000
Repayments of Secured Debt					$ 12.0

XML

DISCONTINUED OPERATIONS (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Disposal Groups, Including Discontinued Operation Income Statement [Line Items]
Revenues		$ 4,597
Income (loss) from operations		229
Interest Expense		(1)
Income taxes		(5)
Income (loss) from discontinued operations, net of tax	$ 0	$ 223

XML

INVENTORY (Tables)

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

The components of inventories were as follows:

	December 31,	March 31,
(In thousands of U.S. dollars)	2014	2015
Raw materials	1,661	1,861
Finished goods	5,068	3,636
Inventories, net	6,729	5,497

XML

LONG-TERM DEBT (Details) - USD ($) $ in Thousands		Mar. 31, 2015	Dec. 31, 2014
Total		$ 123,176	$ 118,467
Current portion		44,623	42,332
Long-term portion		78,554	76,135
Oseo ANVAR loans [Member]
Total	[1]	1,707	1,927
French Ministry of Research [Member]
Total	[1]	1,586	1,790
Acquisition liability contingent consideration [Member]
Total	[2]	72,169	70,112
Acquisition liability warrant consideration [Member]
Total	[2]	37,417	34,542
Deerfield Royalty agreement [Member]
Total	[3]	6,973	6,837
Broadfin Royalty agreement [Member]
Total	[4]	$ 3,323	$ 3,259

[1] French government agencies provide financing to French companies for research and development. At December 31, 2014 and March 31, 2015, the Company had outstanding loans of $3,717,000 and $3,293,000, respectively for various programs. These loans do not bear interest and are repayable only in the event the research project is technically or commercially successful. Potential repayment is scheduled to occur from 2015 through 2019.

[2] The Acquisition liability relates to the acquisition by the Company on March 13, 2012, through its wholly owned subsidiary Flamel US Holdings, Inc., or Flamel US, all of the membership interests of Éclat Pharmaceuticals, LLC. In exchange for all of the issued and outstanding membership interests of Éclat Pharmaceuticals, Flamel US provided consideration consisting of: • a $12 million senior, secured six-year note guaranteed by the Company and its subsidiaries and secured by the equity interests and assets of Éclat. The note was repaid on March 24, 2014 in its entirety generating an interest expense of $3 million; • two warrants to purchase a total of 3,300,000 American Depositary Shares, each representing one ordinary share of Flamel (“ADSs”); and • a commitment to make earnout payments of 20% of any gross profit generated by certain Éclat Pharmaceuticals products. The Purchase Agreement also contains certain representations and warranties, covenants, indemnification and other customary provisions. As of March, 2015, the fair value of the warrants was determined by using a Black-Scholes option pricing model with the following assumptions: Three months ended March 31, 2014 Three months ended March 31, 2015 Share price $ 13.40 $ 17.98 Risk-free interest rate 1.32 % 0.89 % Dividend yield - - Expected volatility 51.79 % 61.80 % Pursuant to guidance of ASC 815-40-15-7(i), the Company determined that the Warrants issued in March 2012 as consideration for the acquisition of Éclat could not be considered as being indexed to the Company’s own stock, on the basis that the exercise price for the warrants is determined in U.S. dollars, although the functional currency of the Company is the Euro. The Company determined that these warrants should be accounted as a debt instrument. As of March 31, 2015, the deferred consideration fair value was estimated by using a discounted cash flow model based on probability adjusted annual gross profit of each of the Éclat Pharmaceuticals products. A discount rate of 20% has been used.

[3] On February 4, 2013 the Company concluded a $15 million debt financing transaction (Facility Agreement) with Deerfield Management a current shareholder. The consideration received was as follows: • $12.4 million for a facility agreement of a nominal value of $15 million, including a premium on reimbursement of $2.6 million. The indebtedness was repaid on March 24, 2014 in its entirety, the accelerated reimbursement of this note resulted in interest expenses of $2.5 million; • $2.6 million for a Royalty Agreement whereby, the Company’s wholly owned subsidiary Éclat subject to required regulatory approvals and launch of product, is to pay a 1.75% Royalty of the net sales of certain products sold by Éclat and any of its affiliates until December 31, 2024. The fair value of the Royalty was estimated using a probability-weighted discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals. This fair value measurement is based on significant inputs not observable in the market and thus represents a level 3 measurement as defined in ASC 820. The discount rate used is 20%.

[4] On December 3, 2013 the Company concluded with Broadfin Healthcare Master Fund, a current shareholder, a $15 million debt financing transaction (Facility Agreement) divided in 3 tranche of $5 million each, Under the terms of the Facility, upon closing Broadfin made an initial loan of $5.0 million. Consideration received was as follows: • $2.8 million for a Facility agreement of a nominal value of $5.0 million. Loans under the Facility were scheduled to mature upon the earlier to occur of (i) January 31, 2017 and (ii) the repayment in full of all outstanding amounts under the Deerfield Facility, but in no event prior to November 15, 2015. The indebtedness was repaid on March 24, 2014 in its entirety, the accelerated reimbursement of this note resulted in interest expenses of $ 2.2 million; • $2.2 million for a Royalty agreement whereby, the Company’s wholly owned subsidiary Éclat subject to required regulatory approvals and launch of product, is to pay a 0.834% Royalty of the net sales of certain products sold by Éclat and any of its affiliates until December 31, 2024. The fair value of the Royalty was estimated using a probability-weighted discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals. This fair value measurement is based on significant inputs not observable in the market and thus represents a level 3 measurement as defined in ASC 820. The discount rate used is 20%.

XML

INCOME TAX (Details) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Taxes [Line Items]
Income (loss) before income taxes	$ 22,120,000	$ (29,663,000)
Ireland [Member]
Income Taxes [Line Items]
Income (loss) before income taxes	(5,039)
France [Member]
Income Taxes [Line Items]
Income (loss) before income taxes	10,236
United States [Member]
Income Taxes [Line Items]
Income (loss) before income taxes	$ 16,924

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
ASSETS
Marketable securities		$ 74,637		$ 53,074
Liabilities
Operational Gain (losses) recognized in earnings		(5,254)	$ (17,639)
Financial Gain (losses) recognized in earnings		(259)	(157)
Total		(5,513)	(17,796)
Cash and Cash Equivalents [Member]
ASSETS
Cash and cash equivalent		38,536		39,760
Liabilities
Operational Gain (losses) recognized in earnings		0	0
Financial Gain (losses) recognized in earnings		0	0
Total		0	0
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]
ASSETS
Cash and cash equivalent		38,536
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member]
ASSETS
Cash and cash equivalent		0
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member]
ASSETS
Cash and cash equivalent		0
Marketable Securities [Member]
ASSETS
Marketable securities		74,637		53,074
Liabilities
Operational Gain (losses) recognized in earnings		0	0
Financial Gain (losses) recognized in earnings		531	0
Total		531	0
Marketable Securities [Member] | Fair Value, Inputs, Level 1 [Member]
ASSETS
Marketable securities		74,637
Marketable Securities [Member] | Fair Value, Inputs, Level 2 [Member]
ASSETS
Marketable securities		0
Marketable Securities [Member] | Fair Value, Inputs, Level 3 [Member]
ASSETS
Marketable securities		0
Acquisition Liability Contingent Consideration [Member]
Liabilities
Acquisition liability contingent consideration	[1]	72,169		70,112
Operational Gain (losses) recognized in earnings	[1]	(2,380)	(849)
Financial Gain (losses) recognized in earnings	[1]	0	0
Total	[1]	(2,380)	(849)
Acquisition Liability Contingent Consideration [Member] | Fair Value, Inputs, Level 1 [Member]
Liabilities
Acquisition liability contingent consideration	[1]	0
Acquisition Liability Contingent Consideration [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities
Acquisition liability contingent consideration	[1]	0
Acquisition Liability Contingent Consideration [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities
Acquisition liability contingent consideration	[1]	72,169
Acquisition Liability Note [Member]
Liabilities
Acquisition liability contingent consideration	[2]	0		0
Operational Gain (losses) recognized in earnings	[2]	0	(3,013)
Total	[2]	0	(3,013)
Acquisition Liability Note [Member] | Fair Value, Inputs, Level 1 [Member]
Liabilities
Acquisition liability contingent consideration	[2]	0
Acquisition Liability Note [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities
Acquisition liability contingent consideration	[2]	0
Acquisition Liability Note [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities
Acquisition liability contingent consideration	[2]	0
Acquisition Liability Warrant Consideration [Member]
Liabilities
Acquisition liability contingent consideration	[3]	37,417		34,542
Operational Gain (losses) recognized in earnings	[3]	(2,875)	(13,777)
Financial Gain (losses) recognized in earnings	[3]	0	0
Total	[3]	(2,875)	(13,777)
Acquisition Liability Warrant Consideration [Member] | Fair Value, Inputs, Level 1 [Member]
Liabilities
Acquisition liability contingent consideration	[3]	0
Acquisition Liability Warrant Consideration [Member] | Fair Value, Inputs, Level 2 [Member]
Liabilities
Acquisition liability contingent consideration	[3]	0
Acquisition Liability Warrant Consideration [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities
Acquisition liability contingent consideration	[3]	37,417
Deerfield Royalty Agreement [Member]
Liabilities
Acquisition liability contingent consideration	[4]	6,973		6,837
Operational Gain (losses) recognized in earnings	[4]		0
Financial Gain (losses) recognized in earnings	[4]	(176)	(105)
Total	[4]	(176)	(105)
Deerfield Royalty Agreement [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities
Acquisition liability contingent consideration	[4]	6,973
Broadfin Royalty Agreement [Member]
Liabilities
Acquisition liability contingent consideration	[4]	3,323		$ 3,259
Operational Gain (losses) recognized in earnings	[4]		0
Financial Gain (losses) recognized in earnings	[4]	(83)	(52)
Total	[4]	(83)	$ (52)
Broadfin Royalty Agreement [Member] | Fair Value, Inputs, Level 3 [Member]
Liabilities
Acquisition liability contingent consideration	[4]	$ 3,323

[1] Acquisition liability contingent consideration: the fair value is estimated using a discounted cash flow model based on probability adjusted projected annual gross profit of each of the products which formed the project portfolio at the time of acquisition of Éclat Pharmaceuticals (Note 10 Long Term Debt). The fair value of the contingent consideration will change over time in accordance with the changes in market conditions and thus business plan projections as the relate to market size, market share, product pricing, competitive landscape, gross profit margins expected for each of the products.

[2] Acquisition liability Note: the Company uses a probability-weighted discounted cash flow model (see note 10 Long Term Debt). The note was repaid on March 24, 2014.

[3] Acquisition liability warrant consideration: the Company uses a Black-Scholes option pricing model. The fair value of the warrant consideration will change over time depending on the volatility and share price at balance sheet date (see note 10 Long Term Debt).

[4] Broadfin and Deerfield Royalty Agreement: the fair value is estimated using a discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals (Note 10 Long Term Debt). The discount rate is 20%.

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REVENUES

3 Months Ended

Mar. 31, 2015

Revenue Recognition Disclosure [Abstract]

Revenue Recognition Disclosure [Text Block]

2. REVENUES

2.1 Product sales and services

The Company recognized net product sales of $32.7 million for the first three months of 2015 compared to $3.96 million for the three month period ended March 31, 2014. Branded product sales are generated on sales from wholesalers to hospitals of Bloxiverz^® and Vazculep^™. Net product sales of wholesalers to their customers (hospitals) are determined using sales data from an independent, recognised wholesaler inventory tracking service and are calculated by deducting estimates for returns for wholesalers’ customers, chargebacks, payment discounts and other sales or discounts offered from the applicable gross sales value. A total of $32.1 million of net revenues on shipments to wholesalers has been deferred as of March 31, 2015, of which $30.7 million relate to Bloxiverz^® and $1.4 million for Vazculep^™ compared to, $7.0 million and $2.7 million respectively, as of December 31, 2014. Gross product sales to hospitals amounted to $74.5 million in the three month period ended March 31, 2015 compared to $4.7 million as of March 31, 2014.

A summary of recognized net sales for the three months ended March 31, 2015 and ending net deferred sales as of March 31, 2015 for the company’s two FDA-approved products as of March 31, 2015 is presented below:

					Deferred Sales
					reclassed against		Ending Deferred
	Sales Recognized in				outstanding		Sales for which
Quarter ended March 31, 2015	the Current Period		Deferred		Accounts		Payment has been
($ in thousands)	(Branded Only)		Sales		Receivable		Collected
Gross Sales	$	74,480	$	35,797	$	(31,954)	$	3,843
Less:
Chargebacks		31,944		-		-		-
Wholesaler distribution fees		6,779		2,946		(2,659)		287
Cash discounts and other		1,491		716		(639)		77
GPO fees and returns		2,098		-		-		-
Net Sales	$	32,168	$	32,135	$	(28,656)	$	3,479

The sales deductions discussed above are presented in the consolidated financial statements as reduction to gross revenues or deferred revenue, as presented above, and a decrease to accounts receivable or an increase to accrued liabilities.

A summary of changes for each reserve or liability for Bloxiverz^®, Vazculep^™ and the company’s generic pharmaceutical product for the three month period ended March 31, 2015 is as follows:

Quarter ended March 31, 2015							Ending
($ in thousands)	Beginning Balance		Additions		Reductions		Balance
Accounts Receivable Reserves:
Chargebacks	$	1,008	$	37,290	$	(35,116)	$	3,182
Wholesaler distribution fees		1,079		4,185		(3,311)		1,953
Cash Discounts and other		252		2,265		(1,915)		602
Liabilities:
GPO fees		112		1,083		(112)		1,083
Sales returns		234		2,812		(1,801)		1,245
Total	$	2,686	$	47,635	$	(42,256)	$	8,065

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LONG-TERM DEBT (Details 1) - $ / shares	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Share price	$ 17.98	$ 13.40
Risk-free interest rate	0.89%	1.32%
Dividend yield	0.00%	0.00%
Expected volatility	61.80%	51.79%
Expected term	3 years	4 years

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REVENUES (Details) - Mar. 31, 2015 - USD ($) $ in Thousands	Total
Deferred Revenue	$ 32,100
Food And Drug Administration [Member]
Sales Revenue, Goods, Gross	74,480
Sales Chargebacks	31,944
Sales Wholesaler distribution Fees	6,779
Sales Discounts, Goods	1,491
Sales Returns, Goods	2,098
Sales Revenue, Goods, Net	32,168
Deferred Sales Gross	35,797
Deferred Sales Chargebacks	0
Deferred Sales Wholesaler distribution Fees	2,946
Deferred Sales Cash discounts And Other	716
Deferred Sales fees And returns	0
Deferred Revenue	32,135
Deferred Sales Gross Reclassed Against Outstanding Accounts Receivable	(31,954)
Deferred Sales Net Reclassed Against Outstanding Accounts Receivable Chargebacks	0
Deferred Sales Net Reclassed Against Outstanding Accounts Receivable Wholesaler distribution Fees	(2,659)
Deferred Sales Net Reclassed Against Outstanding Accounts Receivable Cash discounts And Other	(639)
Deferred Sales Net Reclassed Against Outstanding Accounts Receivable fees And returns	0
Deferred Sales Net Reclassed Against Outstanding Accounts Receivable	(28,656)
Ending Deferred Sales Gross For Which Payment Has Been Collected	3,843
Ending Deferred Sales Gross For Which Payment Has Been Collected Chargebacks	0
Ending Deferred Sales Gross For Which Payment Has Been Collected Wholesaler distribution Fees	287
Ending Deferred Sales Gross For Which Payment Has Been Collected Cash discounts And Other	77
Ending Deferred Sales Gross For Which Payment Has Been Collected fees And returns	0
Ending Deferred Sales Net For Which Payment Has Been Collected	$ 3,479

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent, Total	$ (16,293)	$ (768)

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LONG-TERM DEBT (Details 2) $ in Thousands	Mar. 31, 2015 USD ($)
2015	$ 36,368
2016	19,418
2017	12,260
2018	12,144
2019	9,056
2020	6,920
Long-term Debt, Total	$ 96,166

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REVENUES (Details 1) $ in Thousands	3 Months Ended
	Mar. 31, 2015 USD ($)
Accounts Receivable Reserves and Liabilities Beginning Balance	$ 2,686
Liabilities Additions	47,635
Liabilities Reductions	(42,256)
Accounts Receivable Reserves and Liabilities Ending Balance	8,065
Bloxiverz [Member] | Charge backs [Member]
Accounts Receivable Reserves, Beginning Balance	1,008
Accounts Receivable Reserves, Additions	37,290
Accounts Receivable Reserves, Reductions	(35,116)
Accounts Receivable Reserves, Ending Balance	3,182
Bloxiverz [Member] | Whole saler Distribution Fees [Member]
Accounts Receivable Reserves, Beginning Balance	1,079
Accounts Receivable Reserves, Additions	4,185
Accounts Receivable Reserves, Reductions	(3,311)
Accounts Receivable Reserves, Ending Balance	1,953
Bloxiverz [Member] | Cash Discounts And Other [Member]
Accounts Receivable Reserves, Beginning Balance	252
Accounts Receivable Reserves, Additions	2,265
Accounts Receivable Reserves, Reductions	(1,915)
Accounts Receivable Reserves, Ending Balance	602
Bloxiverz [Member] | Gpo Fees [Member]
Liabilities Excluding Reserve, Beginning Balance	112
Liabilities Additions Excluding Reserve	1,083
Liabilities Reductions Excluding Reserve	(112)
Liabilities Excluding Reserve, Ending Balance	1,083
Bloxiverz [Member] | Sales Returns [Member]
Liabilities Excluding Reserve, Beginning Balance	234
Liabilities Additions Excluding Reserve	2,812
Liabilities Reductions Excluding Reserve	(1,801)
Liabilities Excluding Reserve, Ending Balance	$ 1,245

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REVENUES (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Product sales and services	$ 32,711	$ 3,960
Deferred Revenue	32,100
Bloxiverz [Member]
Sales Revenue, Goods, Gross	74,500	$ 4,700
Deferred Revenue	30,700		$ 7,000
Vazculep [Member]
Deferred Revenue	$ 1,400		$ 2,700

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

1. SUMMARY OF SIGNIFICANT accounting policies

In the opinion of the management of Flamel Technologies S.A. (the “Company”), the accompanying unaudited, condensed, consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial statements. Accordingly, these Financial Statements do not include all of the information and footnotes required for complete annual financial statements, since certain footnotes and other financial information required by generally accepted accounting principles in the United States (or US GAAP) can be condensed or omitted for interim reporting requirements. In the opinion of management, all adjustments (consisting of only normal recurring accruals) considered necessary for a fair presentation of our financial position and operating results have been included.

The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2015. These condensed consolidated interim financial statements should be read in conjunction with the Company's audited annual financial statements.       

The reporting currency of the Company and its wholly-owned subsidiaries is the U.S. dollar as permitted by the SEC for a foreign private issuer (S-X Rule 3-20(a)). All financial statement amounts of the Company and any other subsidiary for which the functional currency is the Euro or any other currency other than the U.S. dollar, are translated into U.S. dollar equivalents at exchange rates as follows: (1) asset and liability accounts at period-end rates, (2) income statement accounts at weighted average exchange rates for the period-end, and (3) shareholders' equity accounts at historical rates. Corresponding translation gains or losses are recorded in shareholders' equity.

The Company followed the guidance in Financial Statements Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 205 Presentation of Financial Statements (ASC 205), Topic 360 Property, Plant and Equipment (ASC 360) and Accounting Standards Update (ASU 2014-08), Reporting of Discontinued Operations and Disclosures of Disposals of Components of an Entity in determining the accounting for the divestiture of the Pessac facility which occurred on December 1, 2014. Presenting the divestiture as a discontinued operation provides a better understanding of the results of the Company’s new strategy and in assessing the impact of the disposal on the ongoing operations of the entity.

The results of discontinued operations, less income taxes, have been reported as a separate component of income in the statement of operations. The assets and liabilities of the discontinued operation have been reported separately in the asset and liability sections, of the balance sheet for the periods presented therein. See note 4 below for a description of the facts and circumstances related to the disposal.

Other comprehensive income includes currency translation adjustments and unrealized gains on marketable securities. As of March 31, 2015 it represents an amount of $16.3 million.

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RESEARCH TAX CREDIT (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Tax Reconciliation, Tax Credits, Research	$ 660,000	$ 1,438,000

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INTANGIBLE ASSETS (Details Textual) - Research and Development In Process [Member]	1 Months Ended
	Jan. 31, 2015	Jan. 31, 2014
Bloxiverz [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life		3 years
Vazculep [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	6 years

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Condensed Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenue:
License and research revenue	$ 0	$ 598
Product sales and services	32,711	3,960
Other revenues	15	20
Total revenue	32,726	4,578
Costs and expenses:
Cost of goods and services sold	(3,630)	(773)
Research and development	(6,022)	(3,944)
Selling, general and administrative	(4,463)	(3,516)
Fair value remeasurement of acquisition liabilities, incl. related parties	(5,254)	(14,626)
Acquisition note expenses, incl. related parties	0	(3,013)
Amortisation of intangible R&D assets	(3,143)	(2,937)
Total	(22,512)	(28,809)
Profit (loss) from operations	10,214	(24,231)
Interest income	798	45
Interest expense	(141)	(5,552)
Interest expense on debt related to the royalty agreement with related parties	(259)	(156)
Foreign exchange gain (loss)	11,501	179
Other income (loss)	7	52
Income (loss) before income taxes	22,120	(29,663)
Income tax benefit (expense)	(10,473)	2,802
Net income (loss) from continuing operations	11,647	(26,861)
Net income (loss) from discontinued operations	0	223
Net income (loss)	$ 11,647	$ (26,638)
Earnings (loss) per ordinary share (Basic)
Continuing operations	$ 0.29	$ (0.95)
Discontinued operations	0.00	0.01
Net income (loss)	0.29	(0.94)
Earnings (loss) per share (diluted)
Continuing operations	0.27	(0.95)
Discontinued operations	0.00	0.01
Net income (loss)	$ 0.27	$ (0.94)
Weighted average number of shares outstanding (in thousands) :
Basic (in shares)	40,207	28,312
Diluted (in shares)	42,879	28,312

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LONG-TERM DEBT (Details Textual) - USD ($)			3 Months Ended		12 Months Ended
	Dec. 03, 2013	Feb. 04, 2013	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013	Mar. 31, 2012
Interest Expense			$ 141,000	$ 5,552,000
Proceeds from Issuance of Long-term Debt			$ 3,293,000		$ 3,717,000
Debt Financing Facility Agreement Amount	$ 5,000,000	$ 15,000,000
Facility Agreement [Member]
Fair Value Inputs, Discount Rate		20.00%
Premium On Reimbursement		$ 2,600,000
Interest Expense	2,200,000	2,500,000
Debt Financing Facility Agreement Amount	15,000,000	15,000,000
Fund Raised From Debt Financing Facility	2,800,000	12,400,000
Initial Loan Amount	5,000,000
Additional Loan Amount	5,000,000
Debt Financing Nominal Value	$ 5,000,000
Debt Repayment Term	Jan. 31, 2017
Royalty Agreement [Member]
Fund Raised From Debt Financing Facility	$ 2,200,000	$ 2,600,000
Long Term Debt Repayment Percentage	0.834%	1.75%
Debt Repayment Term	Dec. 31, 2024	Dec. 31, 2024
Deerfield Facility Agreement [Member]
Debt Repayment Term	Mar. 24, 2014
Broadfin Facility Agreement [Member]
Debt Repayment Term		Mar. 24, 2014
Eclat Pharmaceuticals [Member]
Percentage Of Earn Out Payment			20.00%			20.00%
Eclat Pharmaceuticals [Member] | Senior Secured Six Year Note [Member]
Secured Debt			$ 12,000,000				$ 12,000,000
Interest Expense			$ 3,000,000
American Depository Shares [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights			3,300,000

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Condensed Consolidated Statement of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net income (loss)	$ 11,647	$ (26,638)
Depreciation of property and equipment and intangible assets	3,260	3,570
Loss (gain) on disposal of property and equipment	0	3
Gains on sales of marketable securities	(489)	0
Unrealized exchange gain	(11,296)	0
Grants recognized in other income and income from operations	0	(168)
Remeasurement of acquisition liabilities	5,254	17,633
Interest expenses on debt related to the royalty agreement including related party	259	0
Income tax	5,864	(2,807)
Stock compensation expense	1,593	772
Increase (decrease) in cash from:
Accounts receivable	1,376	2,153
Inventory	1,207	(1,369)
Prepaid expenses and other current assets	(368)	136
Research and development tax credit receivable	(127)	6,462
Accounts payable	1,487	(1,672)
Deferred revenue	2,177	(1,239)
Accrued expenses	(858)	17
Other current liabilities	4,091	213
Other long-term assets and liabilities	198	536
Net cash provided by (used in) operating activities	25,275	(2,398)
Cash flows from investing activities:
Purchases of property and equipment	(234)	(399)
Proceeds from disposal of property and equipment	0	3
Purchase of marketable securities	(26,012)	(27,752)
Proceeds from sales of marketable securities	2,817	357
Net cash provided by (used in) investing activities	(23,429)	(27,791)
Cash flows from financing activities:
Reimbursment of loans	0	(34,288)
Principal payments on capital lease obligations.	(3)	(26)
Earnout payments for acquisition	(323)	0
Cash proceeds from issuance of ordinary shares and warrants	247	114,388
Net cash provided by financing activities	(79)	80,074
Effect of exchange rate changes on cash and cash equivalents	(2,992)	(1,015)
Net increase (decrease) in cash and cash equivalents	(1,225)	48,870
Cash and cash equivalents, beginning of period	39,760	6,635
Cash and cash equivalents, end of period	38,535	55,505
Supplemental disclosures of cash flow information:
Income tax paid	0	39
Interest paid	$ 183	$ 5,602

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SHAREHOLDERS' EQUITY (Details Textual) - shares	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	61,750
Common Stock, Shares, Outstanding	40,253,014	40,191,264

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STOCK COMPENSATION EXPENSE (Tables)

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule Of Earnings Per Share Basic And Diluted Before Stock Based Compensation [Table Text Block]

Net income (loss) before and after stock-based compensation is as follows:

	Three months ended
(in thousands except per share data)	March 31,
	2014		2015
Net income (loss)	$	(26,638)	$	11,647
Net income (loss) per share
Basic	$	(0.94)	$	0.29
Diluted	$	(0.94)	$	0.27
Number of shares used for computing
(weighted average)
Basic		28,312		40,207
Diluted		28,312		42,879
Stock-based compensation (ASC 718)
Cost of products and services sold		10		0
Research  and development		343		459
Selling, general and administrative		419		1,292
Total		772		1,751
Net income (loss) before stock-based compensation		(25,866)		13,398
Net income (loss) before stock-based compensation per share
Basic	$	(0.91)	$	0.33
Diluted	$	(0.91)	$	0.31

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STOCK COMPENSATION EXPENSE (Details ) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net income (loss)	$ 11,647	$ (26,638)
Net income (loss) per share
Basic (in dollars per share)	$ 0.29	$ (0.94)
Diluted (in dollars per share)	$ 0.27	$ (0.94)
Number of shares used for computing (weighted average)
Basic (in shares)	40,207	28,312
Diluted (in shares)	42,879	28,312
Stock-based compensation (ASC 718)
Total	$ 1,751	$ 772
Net income (loss) before stock-based compensation	$ 13,398	$ (25,866)
Net income (loss) before stock-based compensation per share
Basic (in dollars per share)	$ 0.33	$ (0.91)
Diluted (in dollars per share)	$ 0.31	$ (0.91)
Cost of Products and Services Sold [Member]
Stock-based compensation (ASC 718)
Total	$ 0	$ 10
Research and Development [Member]
Stock-based compensation (ASC 718)
Total	459	343
Selling, General and Administrative [Member]
Stock-based compensation (ASC 718)
Total	$ 1,292	$ 419

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INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets [Table Text Block]

	December 31,								March 31,
	2014								2015
	Gross carrying		Accumulated				Intangible		Gross carrying		Accumulated				Intangible
(In thousands of U.S. dollars)	amount		amortization		Impairment		assets, net		amount		amortization		Impairment		assets, net
											-
Intangible asset corresponding to acquired IPR&D of Bloxiverz		35,248		(11,749)				23,499		35,248		(14,686)				20,562
Intangible asset corresponding to acquired IPR&D of Vazculep		12,061		-		(7,170)		4,891		12,061		(204)		(7,170)		4,687
Total Intangible assets	$	47,309	$	(11,749)	$	(7,170)	$	28,390	$	47,309	$	(14,890)	$	(7,170)	$	25,249

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Consolidated Statement of Shareholders' Equity - 3 months ended Mar. 31, 2015 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Dec. 31, 2014	$ 24,895	$ 6,188	$ 346,581	$ (320,452)	$ (7,423)
Balance (in shares) at Dec. 31, 2014		40,191,264
Subscription of warrants	0
Issuance of ordinary shares on exercise of stock or warrants.	247	$ 8	239
Issuance of ordinary shares on exercise of stock or warrants. (in shares)		61,750
Stock-based compensation expense	1,751		1,751
Net income	11,647			11,647
Other comprehensive income (loss)	(16,293)				(16,293)
Balance at Mar. 31, 2015	$ 22,246	$ 6,196	$ 348,571	$ (308,805)	$ (23,716)
Balance (in shares) at Mar. 31, 2015		40,253,014

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Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Net Income (loss)	$ 11,647	$ (26,638)
Other comprehensive net income (loss):
Net foreign currency translation gain (loss)	(16,649)	(768)
Unrealized gain (loss) on marketable Securities	356	0
Other comprehensive income (loss), net of tax	(16,293)	(768)
Comprehensive Income (loss)	$ (4,646)	$ (27,406)

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LONG-TERM DEBT

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Long-term Debt [Text Block]

10. LONG-TERM DEBT

Long-term debt comprises:

(In thousands of U.S. dollars)	31-Dec-14	31-Mar-15
Oseo ANVAR loans (a)	1,927	1,707
French Ministry of Research (a)	1,790	1,586
Acquisition liability contingent consideration (b)	70,112	72,169
Acquisition liability warrant consideration (b)	34,542	37,417
Deerfield Royalty agreement (c)	6,837	6,973
Broadfin Royalty agreement (d)	3,259	3,323
Total	118,467	123,176
Current portion	42,332	44,623
Long-term portion	76,135	78,554

(a) French government agencies provide financing to French companies for research and development. At December 31, 2014 and March 31, 2015, the Company had outstanding loans of $3,717,000 and $3,293,000, respectively for various programs. These loans do not bear interest and are repayable only in the event the research project is technically or commercially successful. Potential repayment is scheduled to occur from 2015 through 2019.

(b) The Acquisition liability relates to the acquisition by the Company on March 13, 2012, through its wholly owned subsidiary Flamel US Holdings, Inc., or Flamel US, all of the membership interests of Éclat Pharmaceuticals, LLC. In exchange for all of the issued and outstanding membership interests of Éclat Pharmaceuticals, Flamel US provided consideration consisting of:

⋅ a $12 million senior, secured six-year note guaranteed by the Company and its subsidiaries and secured by the equity interests and assets of Éclat. The note was repaid on March 24, 2014 in its entirety generating an interest expense of $3 million;

⋅ two warrants to purchase a total of 3,300,000 American Depositary Shares, each representing one ordinary share of Flamel (“ADSs”); and

⋅ a commitment to make earnout payments of 20% of any gross profit generated by certain Éclat Pharmaceuticals products. The Purchase Agreement also contains certain representations and warranties, covenants, indemnification and other customary provisions.

As of March, 2015, the fair value of the warrants was determined by using a Black-Scholes option pricing model with the following assumptions:

	Three months ended			Three months ended
	March 31, 2014			March 31, 2015
Share price	$	13.40		$	17.98
Risk-free interest rate		1.32	%		0.89	%
Dividend yield		-			-
Expected volatility		51.79	%		61.80	%
Expected term		4 years			3 years

Pursuant to guidance of ASC 815-40-15-7(i), the Company determined that the Warrants issued in March 2012 as consideration for the acquisition of Éclat could not be considered as being indexed to the Company’s own stock, on the basis that the exercise price for the warrants is determined in U.S. dollars, although the functional currency of the Company is the Euro. The Company determined that these warrants should be accounted as a debt instrument.

As of March 31, 2015, the deferred consideration fair value was estimated by using a discounted cash flow model based on probability adjusted annual gross profit of each of the Éclat Pharmaceuticals products. A discount rate of 20% has been used.

(c) On February 4, 2013 the Company concluded a $15 million debt financing transaction (Facility Agreement) with Deerfield Management a current shareholder. The consideration received was as follows:

⋅ $12.4 million for a facility agreement of a nominal value of $15 million, including a premium on reimbursement of $2.6 million. The indebtedness was repaid on March 24, 2014 in its entirety, the accelerated reimbursement of this note resulted in interest expenses of $2.5 million;

⋅ $2.6 million for a Royalty Agreement whereby, the Company’s wholly owned subsidiary Éclat subject to required regulatory approvals and launch of product, is to pay a 1.75% Royalty of the net sales of certain products sold by Éclat and any of its affiliates until December 31, 2024.

The fair value of the Royalty was estimated using a probability-weighted discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals. This fair value measurement is based on significant inputs not observable in the market and thus represents a level 3 measurement as defined in ASC 820. The discount rate used is 20%.

(d) On December 3, 2013 the Company concluded with Broadfin Healthcare Master Fund, a current shareholder, a $15 million debt financing transaction (Facility Agreement) divided in 3 tranches of $5 million each, Under the terms of the Facility, upon closing Broadfin made an initial loan of $5.0 million. Consideration received was as follows:

⋅ $2.8 million for a Facility agreement of a nominal value of $5.0 million. Loans under the Facility were scheduled to mature upon the earlier to occur of (i) January 31, 2017 and (ii) the repayment in full of all outstanding amounts under the Deerfield Facility, but in no event prior to November 15, 2015. The indebtedness was repaid on March 24, 2014 in its entirety, the accelerated reimbursement of this note resulted in interest expenses of $ 2.2 million;

⋅ $2.2 million for a Royalty agreement whereby, the Company’s wholly owned subsidiary Éclat subject to required regulatory approvals and launch of product, is to pay a 0.834% Royalty of the net sales of certain products sold by Éclat and any of its affiliates until December 31, 2024.

The fair value of the Royalty was estimated using a probability-weighted discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals. This fair value measurement is based on significant inputs not observable in the market and thus represents a level 3 measurement as defined in ASC 820. The discount rate used is 20%.

Total future payments on long-term debt for the next five years ending March 31 (assuming the underlying projects are commercially or technically successful for governmental research loans) are as follows:

(In thousands of U.S. dollars)	Mar 31, 2015
2015	36,368
2016	19,418
2017	12,260
2018	12,144
2019	9,056
2020	6,920
	96,166

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Document And Entity Information - Mar. 31, 2015 - shares	Total
Document Information [Line Items]
Entity Registrant Name	FLAMEL TECHNOLOGIES SA
Entity Central Index Key	0001012477
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	FLML
Entity Common Stock, Shares Outstanding	40,253,014
Document Type	6-K
Amendment Flag	false
Document Period End Date	Mar. 31, 2015
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2015

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

11. RELATED PARTY TRANSACTIONS

In March 2012, we acquired, through our wholly owned subsidiary Flamel US Holdings, all of the membership interests of Éclat from Éclat Holdings, an affiliate of Flamel’s largest shareholder Deerfield Capital L.P. The consideration consisted of a $12 million senior, secured six-year note that is guaranteed by us and our subsidiaries and secured by the equity interests and assets of Éclat, two warrants to purchase a total of 3,300,000 ADSs of Flamel and commitments to make earnout payments of 20% of any gross profit generated by certain Éclat products and 100% of the gross profit generated by our former product Hycet^®, up to a maximum of $1 million, which we sold in 2013. The $12 million senior note was repaid in full in March 2014 using the net proceeds from our public sale of ADSs and the Hycet^® asset was disposed of in November 2013. Upon closing of the acquisition, Mr. Anderson, the Chief Executive Officer of Éclat, was appointed Chief Executive Officer of Flamel. Mr. Anderson retains a minority interest in Éclat Holdings, (now renamed Breaking Stick Holdings, LLC), and does not have the ability to control this entity by virtue of his minority interest. The senior secured note was repaid in full in March 2014.

On February 4, 2013, we entered into a Facility Agreement (the “Deerfield Facility”), through Flamel US with Deerfield Private Design Fund II, L.P. and Deerfield Private Design International II, L.P. (together, the “Deerfield Entities”) providing for debt financing of $15 million by the Deerfield Entities (the “Loan”). The loan was repaid in full in March 2014 using the net proceeds from our public sale of ADSs.

In conjunction with our entry into the Deerfield Facility, Éclat entered into a Royalty Agreement with Horizon Santé FLML, Sarl and Deerfield Private Design Fund II, L.P., both affiliates of the Deerfield Entities (together, “Deerfield PDF/Horizon”). The Royalty Agreement provides for Éclat to pay Deerfield PDF/Horizon 1.75% of the net sales price of the products sold by us and any of our affiliates until December 31, 2024, with royalty payments accruing daily and paid in arrears for each calendar quarter during the term of the Royalty Agreement.

We have also entered into a Security Agreement dated February 4, 2013 with Deerfield PDF/Horizon, whereby Deerfield PDF/Horizon was granted a security interest in the intellectual property and regulatory rights related to the products to secure the obligations of Éclat and Flamel US, including the full and prompt payment of royalties to Deerfield PDF/Horizon under the Royalty Agreement.

On December 3, 2013, we and certain of our U.S. subsidiaries entered into a Facility Agreement (the “Broadfin Facility”) with Broadfin Healthcare Master Fund, Ltd. (“Broadfin”) providing for loans by Broadfin in an aggregate amount not to exceed $15.0 million. The loans under the Broadfin Facility and the obligations under the Royalty Agreement were secured by a first priority security interest in intellectual property associated with our Medusa technology and a junior lien on substantially all of the assets of the borrowers, which were previously pledged in connection with the Deerfield Facility, the Royalty Agreement and the notes issued in connection with the Éclat acquisition.

Under the terms of the Broadfin Facility, upon closing Broadfin made an initial loan of $5.0 million and we had the ability to request, at any time prior to August 15, 2014, up to two additional loans in the amount of $5.0 million each, with funding subject to certain specified conditions. We had the ability to prepay the outstanding loans under the Broadfin Facility at any time, without prepayment penalty and the full $5.0 million outstanding was subsequently repaid using a portion of the net proceeds from our public sale of ADSs in March 2014.

In connection with entering into the Broadfin Facility, we also entered into a Royalty Agreement with Broadfin, dated as of December 3, 2013 (the “Broadfin Royalty Agreement”). Pursuant to the Broadfin Royalty Agreement, we are required to pay a royalty of 0.834% on the net sales of certain products sold by Éclat Pharmaceuticals, LLC and any of its affiliates until December 31, 2024.

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Condensed Consolidated Balance Sheet - USD ($) $ in Thousands	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 38,535	$ 39,760
Marketable securities	74,637	53,074
Accounts receivable (net of allowance of $127 and $113 at December 31, 2014, and March 31, 2015 respectively)	0	1,679
Inventory	5,497	6,729
Research and development tax credit receivable short term	5,378	5,932
Prepaid expenses and other current assets	4,347	4,418
Total current assets from continuing operations	128,394	111,592
Total current assets from assets held for sale	940	730
Goodwill, net	18,491	18,491
Property and equipment, net	1,777	1,776
Intangible assets	25,248	28,389
Other assets:
Income tax deferred charge	11,444	13,102
Other long-term assets from continuing operations	115	125
Total long term assets from continuing operations	57,075	61,883
Total long term assets from assets held for sale	0	0
Total assets including "assets held for sale"	186,409	174,205
Current liabilities:
Current portion of long-term debt, incl to related parties	44,623	42,332
Current portion of capital lease obligations	9	13
Accounts payable	9,037	8,024
Deferred revenue	3,545	1,336
Accrued expenses	4,354	5,667
Other current liabilities	5,009	5,659
Income tax payable	10,926	7,643
Total current liabilities from continuing operations	77,503	70,674
Total current liabilities from liabilities held for sale	149	168
Long-term debt, less current portion, incl. to related parties	78,554	76,135
Deferred tax liabilities	5,863	0
Other long-term liabilities	2,094	2,333
Total long-term liabilities from continuing operations	86,511	78,468
Total long-term liabilities from liabilities held for sale	0	0
Shareholders' equity:
Ordinary shares: 40,191,264 issued and outstanding at December 31, 2014 and 40,253,014 at March 31, 2015 (shares authorised 52,549,354) at nominal value of 0.122 euro .	6,196	6,188
Additional paid-in capital	348,571	346,582
Accumulated deficit	(308,805)	(320,452)
Accumulated other comprehensive income (loss)	(23,716)	(7,423)
Total shareholders' equity	22,246	24,895
Total liabilities and shareholders' equity including held for sale .	$ 186,409	$ 174,205

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SHAREHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

5. SHAREHOLDERS' EQUITY

During the three month period ended March 31, 2015, 61,750 shares were issued by the Company as a result of the exercise of stock options and warrants.

The total amount of shares outstanding as of March 31, 2015 amounted to 52,549,354.

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DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

4. DISCONTINUED OPERATIONS

On December 1, 2014, the Company signed an Asset Purchase Agreement with Recipharm for the divestiture of its development and manufacturing facility located in Pessac, France.

The assets included in the divestiture were tangible equipment, furniture and fixtures, inventories and all intellectual property rights relating to the operation and technological know-how necessary in manufacturing the products that are produced in the facility and the assignment to Recipharm of all employees, customer contracts and liabilities which primarily relate to agreements of the Company with GlaxoSmithKline (“GSK”) for the manufacture and sale of Coreg CR^®. Coreg CR^® was Flamel’s lead product using the Micropump drug delivery platform that was developed with GSK and has been approved and sold in the US since 2007. The semi-finished product is manufactured in the Pessac Facility. The contracts assigned to Recipharm exclude the Amended 2003 License Agreement and 2004 License Agreement (collectively “License Agreements”) between Flamel and GSK for the development of Coreg CR^®. However, the royalties to be earned by Flamel from the sales of Coreg CR^® were transferred to Recipharm as part of the Asset Purchase Agreement. All costs and future revenues relating to the manufacture and sale of Coreg CR^® were transferred to Recipharm.

Royalties from Coreg CR^® sales amounted to $1.8 million in the first quarter of 2014. Revenues from sales of Coreg CR^® microparticles to GSK amounted to $1.98 million in the first quarter of 2014. Revenues from research revenues with undisclosed partners amounted to $0.8 million in the first quarter of 2014.

The aggregate consideration paid for the acquired assets and business was $13.2 million, plus the value of acquired inventory determined using inventory valuation methodology as defined by the two parties. All cash and receivables pertaining to Pessac Facility business prior to the sale were retained by Flamel. A contribution of $0.7 million was made to finance potential future retirement indemnities payable on transferred employees. The business was accounted for as a discontinued operation in the fourth quarter of 2014 and, therefore, the operating results of our Pessac Facility business were included in Discontinued Operations for the three-month period ended March 31, 2014.

In connection with the Asset Purchase Agreement, the Company entered into a Master Agreement on Supply and Services of Products (“MSA”). Recipharm will provide various services in the domain of R&D and manufacture of pharmaceutical products for an initial non-cancellable period of five years for a minimum amount of services per year and for a cumulative total of $22.5 million. Over the initial term, any services to be provided to Flamel by Recipharm shall include internal and external costs incurred by Recipharm plus 20%, which has been determined to be fair value for such services. As of March 31, 2015 for the quarter ended, these services amounted to $1.3 million

Summary results of operations for the Pessac business for the three months ended March 31, 2014 were as follows:

	Three months
	ended March, 31
In thousands of U.S. Dollars	2014
Revenues	$	4,597
Income (loss) from operations		229
Interest Expense		(1)
Income taxes		(5)
Income (loss) from discontinued operations, net of tax	$	223

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INCOME TAX (Tables)

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Schedule Of Components Of Income Before Income Tax [Table Text Block]

Income (loss) before income taxes comprises the following for the three month period ended March 31, 2015:

Ireland		(5,039)
France		10,236
United States		16,924
Total	$	22,121

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FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

At December 31, 2014 and March 31, 2015, the carrying values of financial instruments such as cash and cash equivalents, trade receivables and payables, other receivables and accrued liabilities and the current portion of long-term debt approximated their market values, based on the short-term maturities of these instruments.

The company calculates fair values for its marketable securities based on quoted market prices for identical assets and liabilities which represents Level 1 of ASC 820-10 fair value hierarchy.

At December 31, 2014 and March 31, 2015 the fair values of long-term debt and long-term receivables were comparable with their respective carrying values.

The following table presents information about the Company securities based on quoted market prices for identical assets and liabilities for March 31, 2015 and indicates the fair value hierarchy of the valuation technics utilized to determine such fair value.

						Three months ended Mar, 31  2015			Three months ended March,31 2014
	Net Carrying					Operational	Financial Gain		Operational	Financial Gain
	Value as of	Net Carrying				Gain (losses)	(losses)		Gain (losses)	(losses)
	December 31,	Value as of	Fair Value Measured and Recorded Using			recognized in	recognized in		recognized in	recognized in
(in thousands of US Dollars)	2014	Mar 31, 2015	Level 1	Level 2	Level 3	earnings	earnings	Total	earnings	earnings	Total
Assets
Cash and cash equivalent	39,760	38,536	38,536	-	-	-	-	-	-	-	-
Marketable securities	53,074	74,637	74,637	-	-	-	531	531	-	-	-
Liabilities
Acquisition liability contingent consideration (a)	70,112	72,169	-	-	72,169	(2,380)	-	(2,380)	(849)		(849)
Acquisition liability note (b)	-	-	-	-	-			-	(3,013)		(3,013)
Acquisition liability warrant consideration (c)	34,542	37,417	-	-	37,417	(2,875)	-	(2,875)	(13,777)	-	(13,777)
Deerfield Royalty Agreement (d)	6,837	6,973			6,973		(176)	(176)		(105)	(105)
Broadfin Royalty Agreement (d)	3,259	3,323			3,323		(83)	(83)	-	(52)	(52)
Total						(5,254)	(259)	(5,513)	(17,639)	(157)	(17,796)

The fair values of the financial instruments in connection with the acquisition of Éclat (see note 10 Long-Term Debt) are estimated as follows:

(a) Acquisition liability contingent consideration: the fair value is estimated using a discounted cash flow model based on probability adjusted projected annual gross profit of each of the products which formed the project portfolio at the time of acquisition of Éclat Pharmaceuticals (Note 10 Long Term Debt).

The fair value of the contingent consideration will change over time in accordance with the changes in market conditions and thus business plan projections as the relate to market size, market share, product pricing, competitive landscape, and gross profit margins expected for each of the products.

(b) Acquisition liability Note: the Company uses a probability-weighted discounted cash flow model (see note 10 Long Term Debt). The note was repaid on March 24, 2014.

(c) Acquisition liability warrant consideration: the Company uses a Black-Scholes option pricing model. The fair value of the warrant consideration will change over time depending on the volatility and share price at balance sheet date (see note 10 Long Term Debt).

(d) Broadfin and Deerfield Royalty Agreement: the fair value is estimated using a discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals (Note 10 Long Term Debt). The discount rate is 20%.

The following tables provide a reconciliation of fair value for which the Company used Level 3 inputs:

	Acquisition
(in thousands of US Dollars)	Liabilities
Liability recorded upon acquisition	$	(50,927)
Operational gain (loss) recognized in earnings for fiscal year 2012	$	18,993
Operational gain (loss) recognized in earnings for fiscal year 2013	$	(28,135)
Payment deferred consideration (Hycet)	$	841
Payment interest on acquisition liability note	$	335
Operational gain (loss) recognized in earnings for fiscal year 2014	$	(60,503)
Reimbursment of acquisition liability note	$	12,000
Payment of interest on acquisition liability note	$	1,389
Payment of deferred consideration	$	1,354
Net carrying value at January 1, 2015	$	(104,653)
Operational gain (loss) recognized in earnings for three months to Mar 31, 2015	$	(5,255)
Payment of interest on acquisition liability note	$	-
Reimbursment of acquisition liability note	$	-
Payment of deferred consideration	$	323
Net carrying value at Mar 31, 2015	$	(109,586)

	Deerfield		Broadfin
	Royalty		Royalty
(in thousands of US Dollars)	Agreement		Agreement
Liability recorded upon execution of Agreeement	$	(2,600)	$	(2,187)
Interest expense recognized in earnings  for 2013	$	(1,990)
Interest expense recognized in earnings for 2014	$	(2,386)	$	(1,139)
Payment of Royalty	$	140	$	67
Net carrying value at Jan 1, 2015	$	(6,837)	$	(3,259)
Interest expense recognized in earnings for 3 months to March 31, 2015	$	(176)	$	(83)
Payment of Royalty	$	39	$	19
Net carrying value at Mar 31, 2015	$	(6,974)	$	(3,323)

The acquisition liabilities, consisting of the warrants and deferred consideration, and Royalty agreement all of which are classified as long-term debt, are measured at fair value and the income or expense may change significantly as assumptions regarding the valuations and probability of successful development and approval of products in development vary.

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INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

8. INTANGIBLE ASSETS

	December 31,								March 31,
	2014								2015
	Gross carrying		Accumulated				Intangible		Gross carrying		Accumulated				Intangible
(In thousands of U.S. dollars)	amount		amortization		Impairment		assets, net		amount		amortization		Impairment		assets, net
											-
Intangible asset corresponding to acquired IPR&D of Bloxiverz		35,248		(11,749)				23,499		35,248		(14,686)				20,562
Intangible asset corresponding to acquired IPR&D of Vazculep		12,061		-		(7,170)		4,891		12,061		(204)		(7,170)		4,687
Total Intangible assets	$	47,309	$	(11,749)	$	(7,170)	$	28,390	$	47,309	$	(14,890)	$	(7,170)	$	25,249

Intangible assets corresponding to acquired in-process R&D of Bloxiverz^® is being amortized straight-line over a 3 year period as of January 1, 2014. Intangible assets corresponding to acquired in-process R&D of Vazculep^™ is amortized straight-line over a 6-year period as of January 1, 2015.

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STOCK COMPENSATION EXPENSE

3 Months Ended

Mar. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

6. STOCK COMPENSATION EXPENSE

During the three month period ending March 31, 2015, no stock options, free share awards or warrants were granted by the Company.

Net income (loss) before and after stock-based compensation is as follows:

	Three months ended
(in thousands except per share data)	March 31,
	2014		2015
Net income (loss)	$	(26,638)	$	11,647
Net income (loss) per share
Basic	$	(0.94)	$	0.29
Diluted	$	(0.94)	$	0.27
Number of shares used for computing
(weighted average)
Basic		28,312		40,207
Diluted		28,312		42,879
Stock-based compensation (ASC 718)
Cost of products and services sold		10		0
Research  and development		343		459
Selling, general and administrative		419		1,292
Total		772		1,751
Net income (loss) before stock-based compensation		(25,866)		13,398
Net income (loss) before stock-based compensation per share
Basic	$	(0.91)	$	0.33
Diluted	$	(0.91)	$	0.31

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INCOME TAX

3 Months Ended

Mar. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

7. INCOME TAX

Income (loss) before income taxes comprises the following for the three month period ended March 31, 2015:

Ireland		(5,039)
France		10,236
United States		16,924
Total	$	22,121

In accordance with ASC 740-270, Interim Reporting, the tax provision as of March 31, 2015 is computed using an estimated annual effective tax rate of 35%. This is applied to income before tax, excluding losses from Irish operations, since no benefit is anticipated to be recognized on net operating loss carry forwards for the current fiscal year and items for which a reliable estimate cannot be made. The income tax provision as of March 31, 2015 amounts to $10.5 million.

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INVENTORY

3 Months Ended

Mar. 31, 2015

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

9. INVENTORY

The components of inventories were as follows:

	December 31,	March 31,
(In thousands of U.S. dollars)	2014	2015
Raw materials	1,661	1,861
Finished goods	5,068	3,636
Inventories, net	6,729	5,497

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DISCONTINUED OPERATIONS (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Discontinued Operations [Line Items]
Minimum Amount On Supply And Services Of Products	$ 1,300	$ 22,500
Other Revenue, Net	15	20
License and Research Revenue	$ 0	598
Pessac Business [Member]
Discontinued Operations [Line Items]
Contribution For Potential Employee Obligations		700
Proceeds from Divestiture of Businesses		$ 13,200
Recipharm AB [Member]
Discontinued Operations [Line Items]
Percentage Of Margin On Costs Incurred On Services		20.00%
Undisclosed Partners [Member]
Discontinued Operations [Line Items]
License and Research Revenue		$ 800
Coreg Sales [Member]
Discontinued Operations [Line Items]
Other Revenue, Net		1,980
Proceeds From Production Facilities		$ 1,800

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DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Schedule Of Disposal Groups Including Discontinued Operation Income Statement [Table Text Block]

Summary results of operations for the Pessac business for the three months ended March 31, 2014 were as follows:

	Three months
	ended March, 31
In thousands of U.S. Dollars	2014
Revenues	$	4,597
Income (loss) from operations		229
Interest Expense		(1)
Income taxes		(5)
Income (loss) from discontinued operations, net of tax	$	223

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LONG-TERM DEBT (Tables)

3 Months Ended

Mar. 31, 2015

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

Long-term debt comprises:

(In thousands of U.S. dollars)	31-Dec-14	31-Mar-15
Oseo ANVAR loans (a)	1,927	1,707
French Ministry of Research (a)	1,790	1,586
Acquisition liability contingent consideration (b)	70,112	72,169
Acquisition liability warrant consideration (b)	34,542	37,417
Deerfield Royalty agreement (c)	6,837	6,973
Broadfin Royalty agreement (d)	3,259	3,323
Total	118,467	123,176
Current portion	42,332	44,623
Long-term portion	76,135	78,554

(a) French government agencies provide financing to French companies for research and development. At December 31, 2014 and March 31, 2015, the Company had outstanding loans of $3,717,000 and $3,293,000, respectively for various programs. These loans do not bear interest and are repayable only in the event the research project is technically or commercially successful. Potential repayment is scheduled to occur from 2015 through 2019.

(b) The Acquisition liability relates to the acquisition by the Company on March 13, 2012, through its wholly owned subsidiary Flamel US Holdings, Inc., or Flamel US, all of the membership interests of Éclat Pharmaceuticals, LLC. In exchange for all of the issued and outstanding membership interests of Éclat Pharmaceuticals, Flamel US provided consideration consisting of:

⋅ a $12 million senior, secured six-year note guaranteed by the Company and its subsidiaries and secured by the equity interests and assets of Éclat. The note was repaid on March 24, 2014 in its entirety generating an interest expense of $3 million;

⋅ two warrants to purchase a total of 3,300,000 American Depositary Shares, each representing one ordinary share of Flamel (“ADSs”); and

⋅ a commitment to make earnout payments of 20% of any gross profit generated by certain Éclat Pharmaceuticals products. The Purchase Agreement also contains certain representations and warranties, covenants, indemnification and other customary provisions.

As of March, 2015, the fair value of the warrants was determined by using a Black-Scholes option pricing model with the following assumptions:

	Three months ended			Three months ended
	March 31, 2014			March 31, 2015
Share price	$	13.40		$	17.98
Risk-free interest rate		1.32	%		0.89	%
Dividend yield		-			-
Expected volatility		51.79	%		61.80	%
Expected term		4 years			3 years

Pursuant to guidance of ASC 815-40-15-7(i), the Company determined that the Warrants issued in March 2012 as consideration for the acquisition of Éclat could not be considered as being indexed to the Company’s own stock, on the basis that the exercise price for the warrants is determined in U.S. dollars, although the functional currency of the Company is the Euro. The Company determined that these warrants should be accounted as a debt instrument.

As of March 31, 2015, the deferred consideration fair value was estimated by using a discounted cash flow model based on probability adjusted annual gross profit of each of the Éclat Pharmaceuticals products. A discount rate of 20% has been used.

(c) On February 4, 2013 the Company concluded a $15 million debt financing transaction (Facility Agreement) with Deerfield Management a current shareholder. The consideration received was as follows:

⋅ $12.4 million for a facility agreement of a nominal value of $15 million, including a premium on reimbursement of $2.6 million. The indebtedness was repaid on March 24, 2014 in its entirety, the accelerated reimbursement of this note resulted in interest expenses of $2.5 million;

⋅ $2.6 million for a Royalty Agreement whereby, the Company’s wholly owned subsidiary Éclat subject to required regulatory approvals and launch of product, is to pay a 1.75% Royalty of the net sales of certain products sold by Éclat and any of its affiliates until December 31, 2024.

The fair value of the Royalty was estimated using a probability-weighted discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals. This fair value measurement is based on significant inputs not observable in the market and thus represents a level 3 measurement as defined in ASC 820. The discount rate used is 20%.

(d) On December 3, 2013 the Company concluded with Broadfin Healthcare Master Fund, a current shareholder, a $15 million debt financing transaction (Facility Agreement) divided in 3 tranches of $5 million each, Under the terms of the Facility, upon closing Broadfin made an initial loan of $5.0 million. Consideration received was as follows:

⋅ $2.8 million for a Facility agreement of a nominal value of $5.0 million. Loans under the Facility were scheduled to mature upon the earlier to occur of (i) January 31, 2017 and (ii) the repayment in full of all outstanding amounts under the Deerfield Facility, but in no event prior to November 15, 2015. The indebtedness was repaid on March 24, 2014 in its entirety, the accelerated reimbursement of this note resulted in interest expenses of $ 2.2 million;

⋅ $2.2 million for a Royalty agreement whereby, the Company’s wholly owned subsidiary Éclat subject to required regulatory approvals and launch of product, is to pay a 0.834% Royalty of the net sales of certain products sold by Éclat and any of its affiliates until December 31, 2024.

The fair value of the Royalty was estimated using a probability-weighted discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals. This fair value measurement is based on significant inputs not observable in the market and thus represents a level 3 measurement as defined in ASC 820. The discount rate used is 20%.

Schedule Of Fair Value Assumptions Of Warrant [Table Text Block]

As of March, 2015, the fair value of the warrants was determined by using a Black-Scholes option pricing model with the following assumptions:

	Three months ended			Three months ended
	March 31, 2014			March 31, 2015
Share price	$	13.40		$	17.98
Risk-free interest rate		1.32	%		0.89	%
Dividend yield		-			-
Expected volatility		51.79	%		61.80	%
Expected term		4 years			3 years

Schedule of Maturities of Long-term Debt [Table Text Block]

Total future payments on long-term debt for the next five years ending March 31 (assuming the underlying projects are commercially or technically successful for governmental research loans) are as follows:

(In thousands of U.S. dollars)	Mar 31, 2015
2015	36,368
2016	19,418
2017	12,260
2018	12,144
2019	9,056
2020	6,920
	96,166

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INVENTORY (Details) - USD ($) $ in Thousands	Mar. 31, 2015	Dec. 31, 2014
Inventory [LineItems]
Raw materials	$ 1,861	$ 1,661
Finished goods	3,636	5,068
Inventories, net	$ 5,497	$ 6,729

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Condensed Consolidated Balance Sheet [Parenthetical] $ in Thousands	Mar. 31, 2015 USD ($) shares	Mar. 31, 2015 € / shares	Dec. 31, 2014 USD ($) shares	Dec. 31, 2014 € / shares
Allowance for accounts receivable (in dollars) | $	$ 113		$ 127
Common stock, par value (in euro per share) | € / shares		€ 0.122		€ 0.122
Common stock, shares authorized	52,549,354		52,549,354
Common stock, shares issued	40,253,014		40,191,264
Common stock, shares outstanding	40,253,014		40,191,264

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RESEARCH TAX CREDIT

3 Months Ended

Mar. 31, 2015

Research Tax Credit [Abstract]

Research Tax Credit Disclosure [Text Block]

3. RESEARCH TAX CREDIT

The French government provides tax credits to companies for spending on innovative research and development. The research tax credit is considered as a grant and is deducted from operational expenses.

For the three month period ended March 31, 2015, the credit amounted to $660,000 compared to $1,438,000 for the three month period ended March 31, 2014. The decrease reflects the reduction in R&D spending that is deemed eligible for the R&D tax credit in France.

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2015

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following table presents information about the Company securities based on quoted market prices for identical assets and liabilities for March 31, 2015 and indicates the fair value hierarchy of the valuation technics utilized to determine such fair value.

						Three months ended Mar, 31  2015			Three months ended March,31 2014
	Net Carrying					Operational	Financial Gain		Operational	Financial Gain
	Value as of	Net Carrying				Gain (losses)	(losses)		Gain (losses)	(losses)
	December 31,	Value as of	Fair Value Measured and Recorded Using			recognized in	recognized in		recognized in	recognized in
(in thousands of US Dollars)	2014	Mar 31, 2015	Level 1	Level 2	Level 3	earnings	earnings	Total	earnings	earnings	Total
Assets
Cash and cash equivalent	39,760	38,536	38,536	-	-	-	-	-	-	-	-
Marketable securities	53,074	74,637	74,637	-	-	-	531	531	-	-	-
Liabilities
Acquisition liability contingent consideration (a)	70,112	72,169	-	-	72,169	(2,380)	-	(2,380)	(849)		(849)
Acquisition liability note (b)	-	-	-	-	-			-	(3,013)		(3,013)
Acquisition liability warrant consideration (c)	34,542	37,417	-	-	37,417	(2,875)	-	(2,875)	(13,777)	-	(13,777)
Deerfield Royalty Agreement (d)	6,837	6,973			6,973		(176)	(176)		(105)	(105)
Broadfin Royalty Agreement (d)	3,259	3,323			3,323		(83)	(83)	-	(52)	(52)
Total						(5,254)	(259)	(5,513)	(17,639)	(157)	(17,796)

The fair values of the financial instruments in connection with the acquisition of Éclat (see note 10 Long-Term Debt) are estimated as follows:

(a) Acquisition liability contingent consideration: the fair value is estimated using a discounted cash flow model based on probability adjusted projected annual gross profit of each of the products which formed the project portfolio at the time of acquisition of Éclat Pharmaceuticals (Note 10 Long Term Debt).

The fair value of the contingent consideration will change over time in accordance with the changes in market conditions and thus business plan projections as the relate to market size, market share, product pricing, competitive landscape, and gross profit margins expected for each of the products.

(b) Acquisition liability Note: the Company uses a probability-weighted discounted cash flow model (see note 10 Long Term Debt). The note was repaid on March 24, 2014.

(c) Acquisition liability warrant consideration: the Company uses a Black-Scholes option pricing model. The fair value of the warrant consideration will change over time depending on the volatility and share price at balance sheet date (see note 10 Long Term Debt).

(d) Broadfin and Deerfield Royalty Agreement: the fair value is estimated using a discounted cash flow model based on probability adjusted projected annual net sales of each of the products which may be approved and sold by Éclat Pharmaceuticals (Note 10 Long Term Debt). The discount rate is 20%.

Fair Value Inputs, Liabilities, Quantitative Information [Table Text Block]

The following tables provide a reconciliation of fair value for which the Company used Level 3 inputs:

	Acquisition
(in thousands of US Dollars)	Liabilities
Liability recorded upon acquisition	$	(50,927)
Operational gain (loss) recognized in earnings for fiscal year 2012	$	18,993
Operational gain (loss) recognized in earnings for fiscal year 2013	$	(28,135)
Payment deferred consideration (Hycet)	$	841
Payment interest on acquisition liability note	$	335
Operational gain (loss) recognized in earnings for fiscal year 2014	$	(60,503)
Reimbursment of acquisition liability note	$	12,000
Payment of interest on acquisition liability note	$	1,389
Payment of deferred consideration	$	1,354
Net carrying value at January 1, 2015	$	(104,653)
Operational gain (loss) recognized in earnings for three months to Mar 31, 2015	$	(5,255)
Payment of interest on acquisition liability note	$	-
Reimbursment of acquisition liability note	$	-
Payment of deferred consideration	$	323
Net carrying value at Mar 31, 2015	$	(109,586)

	Deerfield		Broadfin
	Royalty		Royalty
(in thousands of US Dollars)	Agreement		Agreement
Liability recorded upon execution of Agreeement	$	(2,600)	$	(2,187)
Interest expense recognized in earnings  for 2013	$	(1,990)
Interest expense recognized in earnings for 2014	$	(2,386)	$	(1,139)
Payment of Royalty	$	140	$	67
Net carrying value at Jan 1, 2015	$	(6,837)	$	(3,259)
Interest expense recognized in earnings for 3 months to March 31, 2015	$	(176)	$	(83)
Payment of Royalty	$	39	$	19
Net carrying value at Mar 31, 2015	$	(6,974)	$	(3,323)

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INCOME TAX (Details Textual) - 3 months ended Mar. 31, 2015 - USD ($) $ in Millions	Total
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent	35.00%
Discontinued Operation, Provision for Loss (Gain) on Disposal, Net of Tax	$ 10.5

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REVENUES (Tables)

3 Months Ended

Mar. 31, 2015

Revenues [Abstract]

Schedule Of Recognized Net Sales [Table Text Block]

A summary of recognized net sales for the three months ended March 31, 2015 and ending net deferred sales as of March 31, 2015 for the company’s two FDA-approved products as of March 31, 2015 is presented below:

					Deferred Sales
					reclassed against		Ending Deferred
	Sales Recognized in				outstanding		Sales for which
Quarter ended March 31, 2015	the Current Period		Deferred		Accounts		Payment has been
($ in thousands)	(Branded Only)		Sales		Receivable		Collected
Gross Sales	$	74,480	$	35,797	$	(31,954)	$	3,843
Less:
Chargebacks		31,944		-		-		-
Wholesaler distribution fees		6,779		2,946		(2,659)		287
Cash discounts and other		1,491		716		(639)		77
GPO fees and returns		2,098		-		-		-
Net Sales	$	32,168	$	32,135	$	(28,656)	$	3,479

Schedule Of Changes In Reserve Or Liability [Table Text Block]

A summary of changes for each reserve or liability for Bloxiverz^®, Vazculep^™ and the company’s generic pharmaceutical product for the three month period ended March 31, 2015 is as follows:

Quarter ended March 31, 2015							Ending
($ in thousands)	Beginning Balance		Additions		Reductions		Balance
Accounts Receivable Reserves:
Chargebacks	$	1,008	$	37,290	$	(35,116)	$	3,182
Wholesaler distribution fees		1,079		4,185		(3,311)		1,953
Cash Discounts and other		252		2,265		(1,915)		602
Liabilities:
GPO fees		112		1,083		(112)		1,083
Sales returns		234		2,812		(1,801)		1,245
Total	$	2,686	$	47,635	$	(42,256)	$	8,065