Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2015

Discontinued Operations.

Schedule of discontinued operations presented on the condensed consolidated statements of operations

	Nine Months Ended September 30,
(In thousands)	2015		2014
Net revenues (1)	$	—	$	3,129
Loss from discontinued operations (2)	—		(94,934		)

There was no impact of the discontinued operations after the Spin-Off to our revenues and expenses for the three months ended September 30, 2015 and 2014.

(1) Net revenues primarily consist of revenue from collaborative arrangements and product sales. Revenue from collaborative arrangements was recognized from our agreement with R-Pharm CJSC, which was transferred to Theravance Biopharma as a part of the Spin-Off. 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. VIBATIV® was transferred to Theravance Biopharma as part of the Spin-Off. 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) Included in the loss from discontinued operations for the three and nine months ended September 30, 2014 are reimbursements of research and development costs from our former collaborative arrangements, excluding GSK, which we accounted for as reductions to research and development expense. Reimbursement of research and development costs from discontinued operations from our collaborative arrangements was zero and $0.1 million for the three and nine months ended September 30, 2014. In addition, the loss from discontinued operations includes 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. Refer to Note 6 “Stock-Based Compensation” and Note 9 “Commitment and Contingencies” for further information.