Stock-Based Compensation

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation

Stock-Based Compensation

(10)  Stock-Based Compensation

A summary of stock option activity for the three months ended March 31, 2012 is as follows:

	Shares		Weighted Average Exercise Price Per Share		Weighted Average Remaining Contractual Term (In Years)
Options Outstanding at December 31, 2011	4,459,034		$	6.08	6.9
Granted	3,750		$	3.89
Exercised	—		—
Canceled	(150,785	)	$	8.43
Options Outstanding at March 31, 2012	4,311,999		$	6.00	6.9
Options Vested and Expected to Vest at March 31, 2012	4,272,976		$	6.03	6.9
Options Exercisable at March 31, 2012	2,868,567		$	7.09	6.0
Shares Available for Grant under the 2008 Plan	972,423

The weighted average grant-date fair value of stock options granted during the three months ended March 31, 2012 was $2.44.

A summary of restricted stock activity under the 2008 Plan for the three months ended March 31, 2012 is as follows:

	Shares		Weighted Average Grant Date Fair Value (per share)
Outstanding and unvested at December 31, 2011	6,000		$	3.24
Granted	—		—
Vested	(3,000	)	3.24
Canceled	—		—
Outstanding and unvested at March 31, 2012	3,000		$	3.24

Stock-based compensation expense for the three months ended March 31, 2012 and 2011 was recorded as follows:

	Three months ended March 31,
	2012		2011
	(In thousands)
Research and development	$	396	$	361
General and administrative	245		219
Total stock-based compensation expense	$	641	$	580

The fair values of employee stock options granted during the three months ended March 31, 2012 and 2011 were valued using the Black-Scholes option-pricing model with the following assumptions:

	Three months ended March 31,
	2012		2011
Expected stock price volatility	70	%	68	%
Expected option term	6.0 Years		6.0 Years
Risk-free interest rate	1.4	%	2.9	%
Expected dividend yield	None		None