Sale of Zohydro ER business (Tables)

6 Months Ended

Jun. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Results of Discontinued Operations

The following table summarizes the results of discontinued operations for the periods presented the consolidated statements of operations and comprehensive income for the three and six months ended June 30, 2015 and 2014 (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
Discontinued operations	2015			2014			2015			2014
Revenues:
Net product revenue	$	4,173		$	2,425		$	9,179		$	2,710
Operating expenses:
Cost of product sold	612			446			1,952			495
Royalty expense	291			263			708			359
Research and development	1,020			957			5,829			1,954
Selling, general and administrative	3,097			15,431			14,233			30,553
Restructuring expense	568			—			568			—
Gain on sale of business	(89,053		)	—			(89,053		)	—
Total operating (income) expenses	(83,465		)	17,097			(65,763		)	33,361
Other income	5,000			—			5,000			—
Net income (loss) from discontinued operations before tax	92,638			(14,672		)	79,942			(30,651		)
Income tax expense	(13,478		)	—			(13,478		)	—
Net income (loss) from discontinued operations	$	79,160		$	(14,672	)	$	66,464		$	(30,651	)

The following table summarizes the assets and liabilities of discontinued operations as of June 30, 2015 and December 31, 2014 related to the Zohydro ER business (in thousands):

	June 30, 2015		December 31, 2014
Assets
Current assets
Trade accounts receivable	$	365	$	2,799
Inventory	251		1,995
Prepaid expenses and other current assets	5,180		2,402
Total current assets of discontinued operations	5,796		7,196
Other assets	231		2,673
Total assets of discontinued operations	$	6,027	$	9,869
Liabilities
Current liabilities
Accounts payable	$	1,875	$	3,781
Accrued expenses	5,814		9,470
Accrued compensation	376		1,933
Deferred revenue	1,925		7,123
Total current liabilities of discontinued operations	9,990		22,307
Total liabilities of discontinued operations	$	9,990	$	22,307

The following summarizes the gain on sale (in thousands):

Non-contingent consideration received	$	93,597
Carrying value of assets transferred to Ferrimill	(2,516		)
Transaction costs	(2,028		)
Net gain on sale of business before income tax	89,053
Income tax expense (see Note 10)	(13,478		)
Net gain on sale of business	$	75,575