Share-Based Compensation

9 Months Ended

Sep. 30, 2012

Share-Based Compensation

Share-Based Compensation

Share-based compensation expense in continuing operations related to share options, restricted stock units, ordinary shares credited to the directors’ phantom share accounts and grants under our employee stock purchase plan was classified as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Selling, general and administrative	$	5,330	$	2,156	$	11,967	$	6,986
Research and development	681		838		1,718		2,342
Cost of product sales	344		201		999		430
Total share-based compensation expense	$	6,355	$	3,195	$	14,684	$	9,758

In addition to the above amounts we recorded share-based compensation expense in discontinued operations related to share options and restricted stock units of $0.3 million and $0.5 million in the three and nine months ended September 30, 2012, respectively.

Share Options

The table below shows (i) the number of shares underlying options to purchase our ordinary shares granted to employees, (ii) the weighted-average grant date fair value per share of those share options, and (iii) certain information about the weighted-average assumptions used in the Black-Scholes option pricing model which was used to estimate the grant date fair value per share:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Shares underlying options granted (in thousands)	1,157			61			2,077			1,312
Weighted-average grant date fair value	$	23.13		$	24.56		$	25.23		$	17.99
Black-Scholes option pricing model assumption information:
Weighted-average volatility	64		%	71		%	64		%	74		%
Weighted-average expected term (years)	4.2			5.6			4.6			5.6
Range of risk-free rates	0.5-0.6%			1.1-2.0%			0.5-1.1%			1.1-2.7%
Expected dividend yield	—		%	—		%	—		%	—		%

Restricted Stock Units

In the nine months ended September 30, 2012, we granted 1.0 million RSUs covering an equal number of our ordinary shares to employees with a weighted-average grant date fair value of $48.98. The fair value of RSUs is determined on the date of grant based on the market price of our ordinary shares as of that date. The fair value of the RSUs is recognized as expense ratably over the vesting period of 4 years.

As of September 30, 2012, total compensation cost not yet recognized related to unvested share options and RSUs was $80.7 million, which is expected to be recognized over a weighted-average period of 3.3 years.