Discontinued Operations

3 Months Ended

Mar. 31, 2015

Discontinued Operations

Discontinued Operations

11. Discontinued Operations

On June 1, 2014, we separated our research and drug development businesses from our late-stage partnered respiratory assets. For further information on the Spin-Off, refer to Note 1 “Description of Operations and Summary of Significant Accounting Policies”. The significant components of the research and drug development operations, which are presented as discontinued operations on the condensed consolidated statements of operations, were as follows:

	Three months ended March 31,
(In thousands)	2015		2014
Net revenues (1)	$	—	$	945
Loss from discontinued operations (2)	—		(51,521		)

(1) Net revenues consist of revenue from product sales. Product sales were generated from sales of VIBATIV in the U.S. through a limited number of distributors, and title and risk of loss transfer upon receipt by these distributors. Healthcare providers ordered VIBATIV through these distributors. Commencing in the first quarter of 2014, revenue on the sale of VIBATIV was recorded on a sell-through basis, once the distributors sold the product to healthcare providers. Product sales were recorded net of estimated government-mandated rebates and chargebacks, distribution fees, estimated product returns and other deductions.

(2) Loss from discontinued operations decreased for the three months ended March 31, 2015 compared to the three months ended March 31, 2014 primarily due to there being no impact of discontinued operations after the Spin- Off occurring in June 2014. Included in the loss from discontinued operations for the three months ended March 31, 2014 are external legal and accounting fees in connection with our separation strategy and the additional stock-based compensation and cash bonus expense recognized due to the achievement of performance conditions under a special long-term retention and incentive equity and cash bonus awarded to certain employees in 2011.