Basis of Presentation and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2013

Basis of Presentation and Summary of Significant Accounting Policies

Schedule of assets and liabilities measured at fair value on a recurring basis

The following tables represent the fair value hierarchy as of September 30, 2013 and December 31, 2012 for those assets and liabilities that we measure at fair value on a recurring basis (in thousands):

	Fair Value Measurements at September 30, 2013 Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Money market funds	$	22,736	$	22,736	$	—	$	—
Corporate debt securities	129,664		—		129,664		—
U.S. treasury and government agency securities	52,931		—		52,931		—
Total Assets	$	205,331	$	22,736	$	182,595	$	—
Liabilities:
Acquisition-related contingent consideration	$	13,975	$	—	$	—	$	13,975
Total Liabilities	$	13,975	$	—	$	—	$	13,975

	Fair Value Measurements at December 31, 2012 Using:
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Total		(Level 1)		(Level 2)		(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	$	—

Schedule of reconciliation of contingent consideration obligations related to acquisition of MuGard rights measured on recurring basis using Level 3 inputs

The following table presents a reconciliation of contingent consideration obligations related to our acquisition of the MuGard Rights measured on a recurring basis using Level 3 inputs as of September 30, 2013 (in thousands):

Balance as of June 6, 2013	$	—
Acquisition date fair value of contingent consideration	13,700
Balance as of June 30, 2013	$	13,700
Payments made	(4		)
Adjustments to fair value of contingent consideration	279
Balance as of September 30, 2013	$	13,975

Analysis of product sales allowances and accruals

An analysis of our product sales allowances and accruals for the three and nine months ended September 30, 2013 and 2012 is as follows (in thousands):

	Three Months Ended September 30,
	2013			2012
Provision for U.S. Feraheme sales allowances and accruals
Discounts and chargebacks	$	10,205		$	6,644
Government and other rebates	3,044			1,595
Medicaid rebate reserve adjustment	(625		)	(861		)
Returns	265			(1,122		)
Total provision for U.S. Feraheme sales allowances and accruals	$	12,889		$	6,256
Total gross U.S. Feraheme sales	$	32,236		$	22,442
Total provision for U.S. Feraheme sales allowances and accruals as a percent of total gross U.S. Feraheme sales	40		%	28		%

	Nine Months Ended September 30,
	2013			2012
Provision for U.S. Feraheme sales allowances and accruals
Discounts and chargebacks	$	26,925		$	19,382
Government and other rebates	8,106			4,487
Medicaid rebate reserve adjustment	(568		)	(621		)
Returns	697			(1,680		)
Total provision for U.S. Feraheme sales allowances and accruals	$	35,160		$	21,568
Total gross U.S. Feraheme sales	$	87,541		$	65,474
Total provision for U.S. Feraheme sales allowances and accruals as a percent of total gross U.S. Feraheme sales	40		%	33		%

Schedule of customers representing 10% or more of revenues

	Nine Months Ended September 30,
	2013		2012
AmerisourceBergen Drug Corporation	43	%	34	%
McKesson Corporation	23	%	17	%
Cardinal Health, Inc.	16	%	11	%
Takeda Pharmaceuticals Company Limited	11	%	31	%