INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2011

INTANGIBLE ASSETS

INTANGIBLE ASSETS

Note 6—INTANGIBLE ASSETS

Intangible assets are summarized as follows (in thousands):

	September 30,			December 31,
	2011			2010			Estimated Useful Life
Core Technology
Gross amount	$	2,900		$	2,900		9 years
Accumulated amortization	(1,450		)	(1,208		)
Net	1,450			1,692
Developed Technology
Gross amount	11,700			11,700			7 years
Accumulated amortization	(7,521		)	(6,268		)
Net	4,179			5,432
Trademarks and trade names
Gross amount	500			500			7 years
Accumulated amortization	(310		)	(253		)
Net	190			247
DepoDur Rights
Gross amount	2,058			2,058			Remaining patent life ending November 2018
Accumulated amortization	(673		)	(517		)
Net	1,385			1,541
Intangible assets, net	$	7,204		$	8,912

Amortization expense for intangibles was $0.6 million for each of the three months ended September 30, 2011 and 2010. Amortization expense for intangibles was $1.7 million for each of the nine months ended September 30, 2011 and 2010. Amortization expenses associated with the Company’s commercial products and developed technology are included in cost of revenues. Amortization expenses associated with the Company’s products in development are included in research and development expenses.

The approximate amortization expense for intangibles, all of which are subject to amortization, is as follows (in thousands):

	Core Technology		Developed Technology		Trademarks and Tradenames		DepoDur Rights		Total
2011 (remaining three months)	$	81	$	418	$	18	$	49	$	566
2012	322		1,671		76		196		2,265
2013	322		1,671		76		196		2,265
2014	322		419		20		196		957
2015	322		—		—		196		518
Thereafter	81		—		—		552		633
Total	$	1,450	$	4,179	$	190	$	1,385	$	7,204