SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2013

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

11. SUBSEQUENT EVENTS

Conversion of Convertible Subordinated Notes Due 2015

On June 4, 2013, the Company called for redemption all of its outstanding 2015 Notes, $172.5 million principal amount, pursuant to the redemption right in the indenture governing the 2015 Notes. Any 2015 Notes outstanding on July 5, 2013 were to be redeemed in cash for 100% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. The 2015 Notes were convertible at any time prior to 5:00 p.m. Eastern time on July 3, 2013 into shares of the Company’s common stock at a conversion rate of 38.6548 shares per $1,000 principal amount (equivalent to a conversion price of approximately $25.87 per share). As of June 30, 2013, $40,000 principal amount of the 2015 Notes was converted into 1,546 shares of the Company’s common stock and between July 1, 2013 and through July 3, 2013, all of the remaining 2015 notes were converted into 6,666,386 of the Company’s common stock. All of convertible subordinated notes, $172.5 million principal amount, were converted into 6,667,932 of the Company’s common stock and none were redeemed for cash. As a result of the conversion, unamortized debt issuance costs of $1.3 million will be included in additional paid-in capital in the third quarter of 2013.

Sale of Stock

On July 30, 2013, the Company and Glaxo Group Limited, an affiliate of GSK, entered into an agreement to purchase 3,064,407 shares of the Company’s common stock at $36.50 per share, for an aggregate purchase price of approximately $111.9 million, pursuant to its rights under the Company’s governance agreement with GSK dated June 4, 2004, as amended.