Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Significant Accounting Policies

Schedule of assets measured at fair value on a recurring basis

The following tables represent the fair value hierarchy as of December 31, 2012 and 2011 for those assets that we measure at fair value on a recurring basis (in thousands):

	Fair Value Measurements at December 31, 2012 Using:
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds	$	24,058	$	24,058	$	—	$	—
Corporate debt securities		111,690		—		111,690		—
U.S. treasury and government agency securities		59,569		—		59,569		—
Commercial paper		9,491		—		9,491		—
	$	204,808	$	24,058	$	180,750	$	—

	Fair Value Measurements at December 31, 2011 Using:
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Money market funds	$	55,995	$	55,995	$	—	$	—
Corporate debt securities		94,626		—		94,626		—
U.S. treasury and government agency securities		48,086		—		48,086		—
Commercial paper		5,991		—		5,991		—
Auction rate securities		17,527		—		—		17,527
	$	222,225	$	55,995	$	148,703	$	17,527

Roll forward of Level 3 assets

The following table provides a rollforward of Level 3 assets for the years ended December 31, 2012 and 2011 (in thousands):

	December 31, 2012			December 31, 2011
Balance at beginning of period	$	17,527		$	33,597
Transfers to Level 3		—			—
Total gains (losses) (realized or unrealized):
Included in earnings		(1,471	)		(210	)
Included in other comprehensive income (loss)		2,373			3,790
Purchases, issuances, sales and settlements:
Purchases		—			—
Issuances		—			—
Sales		(18,329	)		—
Settlements		(100	)		(19,650	)
Balance at end of period	$	—		$	17,527
The amount of total gains (losses) for the
period included in earnings attributable to
the change in unrealized gains (losses)
relating to assets still held at end of period	$	—		$	—

Analysis of product sales allowances and accruals

An analysis of our product sales allowances and accruals for the years ended December 31, 2012, 2011 and 2010 is as follows (in thousands):

	Years Ended December 31,
	2012			2011			2010
Provision for U.S. product sales allowances and accruals
Discounts and chargebacks	$	26,517		$	13,851		$	5,113
Government and other rebates		6,058			8,544			16,374
Medicaid rebate reserve adjustment		(621	)		(2,532	)		(599	)
Returns		(1,516	)		1,259			1,334
Total provision for U.S. product sales allowances and accruals	$	30,438		$	21,122		$	22,222
Total gross U.S. product sales	$	88,725		$	73,219		$	81,561
Total provision for U.S. product sales allowances and accruals as a percent of total gross U.S. product sales		34	%		29	%		27	%

Schedule of customers representing 10% or more of revenues

	Years Ended December 31,
	2012			2011			2010
AmerisourceBergen Drug Corporation		34	%		41	%		36	%
Takeda Pharmaceuticals Company Limited		31	%		13	%		<10	%
McKesson Corporation		17	%		21	%		<10	%
Cardinal Health, Inc.		12	%		13	%		<10	%
Metro Medical Supply, Inc.		<10	%		<10	%		21	%

Schedule of components of basic and diluted net income (loss) per share

The components of basic and diluted net loss per share were as follows (in thousands, except per share data):

	Years Ended December 31,
	2012			2011			2010
Net loss	$	(16,750	)	$	(77,069	)	$	(81,153	)
Weighted average common shares outstanding		21,392			21,189			20,806
Net loss per share:
Basic and diluted	$	(0.78	)	$	(3.64	)	$	(3.90	)

Schedule of anti-dilutive securities excluded from computation of diluted net loss per share

The following table sets forth the potential common shares issuable upon the exercise of outstanding options and the vesting of restricted stock units (prior to consideration of the treasury stock method), the total of which was excluded from our computation of diluted net loss per share because such options and restricted stock units were anti-dilutive due to a net loss in the relevant periods (in thousands):

	Years Ended December 31,
	2012		2011		2010
Options to purchase shares of common stock		2,190		1,817		2,411
Shares of common stock issuable upon the vesting of restricted stock units		374		669		385
Total		2,564		2,486		2,796