Sale of Zohydro ER business (Tables)

9 Months Ended

Sep. 30, 2015

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Results of Discontinued Operations

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

Non-contingent consideration received	$	93,597
Carrying value of assets transferred to Ferrimill	(2,532		)
Transaction costs	(1,966		)
Net gain on sale of business before income tax	89,099
Income tax expense (see Note 11)	(15,998		)
Net gain on sale of business	$	73,101

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

	Three Months Ended September 30,						Nine Months Ended September 30,
Discontinued operations	2015			2014			2015			2014
Revenues:
Net product revenue	$	1,280		$	3,914		$	10,459		$	6,624
Operating expenses:
Cost of product sold	182			706			2,134			1,201
Royalty expense	77			353			785			712
Research and development	(232		)	2,377			5,596			4,331
Selling, general and administrative	472			11,842			14,706			42,332
Restructuring expense	20			—			588			—
Gain on sale of business	(46		)	—			(89,099		)	—
Total operating (income) expense	473			15,278			(65,290		)	48,576
Other income	78			—			5,078			—
Net income (loss) from discontinued operations before tax	885			(11,364		)	80,827			(41,952		)
Income tax expense	(2,520		)	—			(15,998		)	—
Net income (loss) from discontinued operations	$	(1,635	)	$	(11,364	)	$	64,829		$	(41,952	)

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

	September 30, 2015		December 31, 2014
Assets
Current assets
Trade accounts receivable	$	53	$	2,799
Inventory	69		1,995
Prepaid expenses and other current assets	3,660		2,402
Total current assets of discontinued operations	3,782		7,196
Other assets	4		2,673
Total assets of discontinued operations	$	3,786	$	9,869
Liabilities
Current liabilities
Accounts payable	$	384	$	3,781
Accrued expenses	4,181		9,470
Accrued compensation	—		1,933
Deferred revenue	588		7,123
Total current liabilities of discontinued operations	5,153		22,307
Total liabilities of discontinued operations	$	5,153	$	22,307