10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2016

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from  to

Commission File Number: 001-35006

SPECTRUM PHARMACEUTICALS, INC.

(Exact name of registrant as specified in its charter)

Delaware	93-0979187
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
11500 South Eastern Avenue, Suite 240 Henderson, Nevada	89052
(Address of principal executive offices)	(Zip Code)

(702) 835-6300

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	¨	Accelerated filer	ý
Non-accelerated filer	¨ (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

As of July 28, 2016, 80,216,716 shares of the registrant’s common stock were outstanding.

SPECTRUM PHARMACEUTICALS, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE THREE AND SIX MONTHS ENDED JUNE 30,2016

TABLE OF CONTENTS

Item		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements (unaudited):
	Condensed Consolidated Balance Sheets as of June 30, 2016 and December 31, 2015	3
	Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2016 and 2015	4
	Condensed Consolidated Statements of Comprehensive Loss for the three and six months ended June 30, 2016 and 2015	5
	Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2016 and 2015	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43
Item 4.	Controls and Procedures	43
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	43
Item 1A.	Risk Factors	44
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	44
Item 6.	Exhibits	44
	Signatures	45

Item 3 through 5 of Part II have been omitted because they are not applicable with respect to the current reporting period.

2

PART I: FINANCIAL INFORMATION

ITEM 1: CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SPECTRUM PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share and par value amounts)

(Unaudited)

	June 30, 2016			December 31, 2015
ASSETS
Current assets:
Cash and cash equivalents	$	155,759		$	139,741
Marketable securities	247			245
Accounts receivable, net of allowance for doubtful accounts of $15 and $120, respectively	34,319			30,384
Other receivables	6,968			12,572
Inventories	6,405			4,176
Prepaid expenses and other assets	2,954			3,507
Total current assets	206,652			190,625
Property and equipment, net of accumulated depreciation	643			918
Intangible assets, net of accumulated amortization and impairment charges	178,312			190,335
Goodwill	17,997			17,960
Other assets	25,600			19,211
Total assets	$	429,204		$	419,049
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other accrued liabilities	$	48,208		$	56,539
Accrued payroll and benefits	6,496			8,188
Deferred revenue	3,461			6,130
Drug development liability	156			259
Acquisition-related contingent obligations	—			5,227
Total current liabilities	58,321			76,343
Drug development liability, less current portion	14,227			14,427
Deferred revenue, less current portion	750			383
Acquisition-related contingent obligations, less current portion	1,993			1,439
Deferred tax liability	6,831			6,779
Other long-term liabilities	8,661			7,444
Convertible senior notes	102,522			99,377
Total liabilities	193,305			206,192
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.001 par value; 5,000,000 shares authorized:	—			—
Series B junior participating preferred stock, $0.001 par value; 1,500,000 shares authorized; no shares issued and outstanding	—			—
Series E Convertible Voting Preferred Stock, $0.001 par value and $10,000 stated value; 2,000 shares authorized; 0 and 20 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively (the prior year balance relates to the 20 shares of preferred stock which were converted into 40,000 shares of common stock in the current year)	—			123
Common stock, $0.001 par value; 175,000,000 shares authorized; 75,902,704 and 68,228,935 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	75			68
Additional paid-in capital	606,220			552,108
Accumulated other comprehensive loss	(2,651		)	(5,319		)
Accumulated deficit	(367,745		)	(334,123		)
Total stockholders’ equity	235,899			212,857
Total liabilities and stockholders’ equity	$	429,204		$	419,049

See accompanying notes to these unaudited condensed consolidated financial statements.

3

SPECTRUM PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Revenues:
Product sales, net	$	30,887		$	35,144		$	66,129		$	73,557
License fees and service revenue	3,062			9,838			11,686			10,042
Total revenues	$	33,949		$	44,982		$	77,815		$	83,599
Operating costs and expenses:
Cost of product sales (excludes amortization and impairment charges of intangible assets)	5,609			5,990			11,212			13,061
Cost of service revenue	2,214			—			3,495			—
Selling, general and administrative	27,620			22,552			49,583			45,886
Research and development	14,281			9,558			29,744			25,409
Amortization and impairment charges of intangible assets	6,306			6,916			12,145			20,938
Total operating costs and expenses	56,030			45,016			106,179			105,294
Loss from operations	(22,081		)	(34		)	(28,364		)	(21,695		)
Other (expense) income:
Interest expense, net	(2,375		)	(2,258		)	(4,714		)	(4,486		)
Change in fair value of contingent consideration related to acquisitions	(285		)	(146		)	(1,327		)	(646		)
Other income (expense), net	340			69			618			(966		)
Total other expenses	(2,320		)	(2,335		)	(5,423		)	(6,098		)
Loss before income taxes	(24,401		)	(2,369		)	(33,787		)	(27,793		)
Benefit (provision) for income taxes	106			23			171			(115		)
Net loss	$	(24,295	)	$	(2,346	)	$	(33,616	)	$	(27,908	)
Net loss per share:
Basic and diluted	$	(0.35	)	$	(0.04	)	$	(0.50	)	$	(0.43	)
Weighted average shares outstanding:
Basic and diluted	68,575,021			65,466,004			67,146,188			65,167,162

See accompanying notes to these unaudited condensed consolidated financial statements.

4

SPECTRUM PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In thousands)

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net loss	$	(24,295	)	$	(2,346	)	$	(33,616	)	$	(27,908	)
Other comprehensive (loss) income, net of income tax:
Unrealized gain on available-for-sale securities	1,149			1,806			2,510			2,585
Foreign currency translation adjustments	(315		)	106			158			(1,900		)
Other comprehensive income	834			1,912			2,668			685
Total comprehensive loss	$	(23,461	)	$	(434	)	$	(30,948	)	$	(27,223	)

See accompanying notes to these unaudited condensed consolidated financial statements.

5

SPECTRUM PHARMACEUTICALS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended June 30,
	2016			2015
Cash Flows From Operating Activities:
Net loss	$	(33,616	)	$	(27,908	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	12,480			14,129
Stock-based compensation	6,604			5,990
Accretion of debt discount, recorded to interest expense on 2018 Convertible Notes (Note 14)	2,800			2,569
Amortization of deferred financing costs, recorded to interest expense on 2018 Convertible Notes (Note 14)	345			327
Bad debt (recovery) expense	(15		)	—
Impairment of intangible assets (Note 3(f))	—			7,160
Unrealized foreign currency exchange loss	3			3,992
Research and development expense recognized for the value of stock issued in connection with milestone achievement (Note 16(b)(xii))	2,419			—
Change in fair value of contingent consideration related to the EVOMELA and Talon acquisitions (Note 9)	1,327			646
Changes in operating assets and liabilities:
Accounts receivable, net	(3,904		)	28,966
Other receivables	5,688			(2,757		)
Inventories	(4,678		)	398
Prepaid expenses	553			1,139
Deferred tax assets	—			(237		)
Other assets	(1,374		)	(2,991		)
Accounts payable and other accrued obligations	(8,353		)	(13,052		)
Accrued payroll and benefits	(1,697		)	(2,645		)
Drug development liability	(303		)	(1,296		)
Acquisition related contingent obligations	(1,300		)	—
Deferred revenue	(2,383		)	(2,531		)
Deferred tax liability	51			184
Other long-term liabilities	1,210			905
Net cash (used in) provided by operating activities	(24,143		)	12,988
Cash Flows From Investing Activities:
Redemption of mutual funds	(1		)	—
Purchases of property and equipment	(61		)	(212		)
Net cash used in investing activities	(62		)	(212		)
Cash Flows From Financing Activities:
Proceeds from exercise of stock options	188			996
Proceeds from sale of stock under employee stock purchase plan	383			335
Purchase and retirement of restricted stock to satisfy employees' tax liability at vesting	(665		)	(515		)
Payment of contingent consideration related to EVOMELA acquisition (Note 9(b))	(4,700		)	—
Proceeds from common shares sold under an at-the-market-issuance sales agreement (Note 18)	45,067			—
Dividends paid upon conversion of Series E Convertible Voting Preferred Stock (Note 18)	(6		)	—
Net cash provided by financing activities	40,267			816
Effect of exchange rates on cash and equivalents	(44		)	(1,263		)
Net increase in cash and cash equivalents	16,018			12,329
Cash and cash equivalents—beginning of period	139,741			129,942
Cash and cash equivalents—end of period	$	155,759		$	142,271
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	11		$	332
Cash paid for interest	$	1,650		$	1,650

See accompanying notes to these unaudited condensed consolidated financial statements.

6

Spectrum Pharmaceuticals, Inc.

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND OPERATING SEGMENT

(a) Description of Business

Spectrum Pharmaceuticals, Inc. (“Spectrum”, the “Company”, “we”, “our”, or “us”) is a biotechnology company, with a primary strategy comprised of acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. In addition to an in-house clinical development organization with regulatory and data management capabilities, we have established a commercial infrastructure for our marketed products. Currently, we market six approved oncology/hematology products that target different types of non-Hodgkin's lymphoma ("NHL"), advanced metastatic colorectal cancer, acute lymphoblastic leukemia ("ALL"), and multiple myeloma ("MM").

We also have three drugs in late-stage development:

• SPI-2012 for chemotherapy-induced neutropenia in patients with breast cancer.

• QAPZOLA (formerly referred to as APAZIQUONE) for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer.

• POZIOTINIB, a novel pan-HER inhibitor used in the treatment of patients with breast cancer.

(b) Basis of Presentation

Interim Financial Statements

The interim financial data as of June 30, 2016 and 2015 is unaudited, and is not necessarily indicative of our operating results for a full year. In the opinion of our management, the interim data includes normal and recurring adjustments necessary for a fair presentation of our financial results for the three and six months ended June 30, 2016 and 2015. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations relating to interim financial statements. The December 31, 2015 balances reported herein are derived from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on March 14, 2016.

Principles of Consolidation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and with the rules and regulations of the SEC. These financial statements include the financial position, results of operations, and cash flows of Spectrum and its subsidiaries, all of which are wholly-owned (except for SPC, as discussed below). All inter-company accounts and transactions among these legal entities have been eliminated in consolidation.

Variable Interest Entity

We own fifty-percent of Spectrum Pharma Canada (“SPC”), a legal entity organized in Quebec, Canada in January 2008. Certain of our drug clinical studies are conducted through this “variable interest entity” (as defined under applicable GAAP) and we fund all of SPC’s operating costs. Since we carry the full risks and rewards of SPC, we meet the applicable GAAP criteria as being its “primary beneficiary.” Accordingly, SPC’s balance sheets and statements of operations are included in our Condensed Consolidated Financial Statements as if it were a wholly-owned subsidiary for all periods presented.

(c) Operating Segment

7

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

We operate in one reportable operating segment that is focused exclusively on developing and commercializing oncology and hematology drug products. For the three and six months ended June 30, 2016 and 2015, all of our revenue and related expenses were solely attributable to these activities. Substantially all of our assets (excluding our cash held in certain foreign bank accounts and our ZEVALIN distribution rights for the Ex-U.S. territory) are held in the U.S.

2. USE OF ESTIMATES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in conformity with GAAP requires our management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. However, actual values may materially differ, since estimates are inherently uncertain. On an on-going basis, our management evaluates its estimates and assumptions, including those related to (i) gross-to-net revenue adjustments; (ii) the timing of revenue recognition; (iii) the collectability of customer accounts; (iv) whether the cost of inventories can be recovered; (v) the fair value of goodwill and intangible assets; (vi) the realization of tax assets and estimates of tax liabilities; (vii) the likelihood of payment and value of contingent liabilities; (viii) the fair value of investments; (ix) the valuation of stock options and the periodic expense recognition of stock-based compensation; and (x) the potential outcome of ongoing or threatened litigation.

The estimates and assumptions that most significantly impact the presented amounts within these accompanying Condensed Consolidated Financial Statements are further described below:

(i) Revenue Recognition

(a) Product Sales: We sell our products to wholesalers/distributors (i.e., our customers), except for our U.S. sales of ZEVALIN in which case the end-user (i.e. clinic or hospital) is our customer. Our wholesalers/distributors in turn sell our products directly to clinics, hospitals, and private oncology-based practices. Revenue from our product sales is recognized when title and risk of loss have transferred to our customer, and the following additional criteria are met:

(1) appropriate evidence of a binding arrangement exists with our customer;

(2) price is substantially fixed and determinable;

(3) collection from our customer is reasonably assured;

(4) our customer’s obligation to pay us is not contingent on resale of the product;

(5) we do not have significant continued performance obligations to our customer; and

(6) we have a reasonable basis to estimate returns.

Our gross revenue is reduced by our gross-to-net (“GTN”) estimates each period, resulting in our reported “product sales, net” in the accompanying Condensed Consolidated Statements of Operations. We defer revenue recognition in full if these estimates are not reasonably determinable at the time of sale. These estimates are based upon information received from external sources (such as written and oral information obtained from our customers with respect to their period-end inventory levels, and their sales to end-users during the period), in combination with management’s informed judgments. Due to the inherent uncertainty of estimates, the actual amount we incur may be materially different than our GTN estimates, and require prospective revenue adjustments in periods after the initial sale was recorded.

Our GTN estimates are comprised of the following categories:

Product Returns Allowances: Our FUSILEV, MARQIBO, and BELEODAQ customers are permitted to return purchased product beginning at its expiration date, and within six months thereafter. Our EVOMELA customers are permitted to return purchased product beginning at six months prior to its expiration date, and within 12 months thereafter (as well as for overstock inventory, as determined by end-users). Returned product is generally not resold. Returns for expiry of ZEVALIN and FOLOTYN are not contractually, or customarily, allowed. We estimate expected returns based on our historical return rates.

Government Chargebacks: Our products are subject to pricing limits under certain federal government programs (e.g., Medicare and 340B Drug Pricing Program). Qualifying entities (i.e., end-users) purchase product from our customers at their qualifying discounted price. The chargeback amount we incur represents the difference between our contractual sales price to

8

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

our customer, and the end-user’s applicable discounted purchase price under the government program. There may be significant lag time between our reported net product sales and our receipt of corresponding government chargeback claims from our customers.

Prompt Pay Discounts: Discounts for prompt payment are estimated at the time of sale, based on our eligible customers’ prompt payment history and the contractual discount percentage.

Commercial Rebates: Commercial rebates are based on (i) our estimates of end-user purchases through a group purchasing organization ("GPO"), (ii) the corresponding contractual rebate percentage tier we expect each GPO to achieve, and (iii) our estimates of the impact of any prospective rebate program changes made by us.

Medicaid Rebates: Our products are subject to state government-managed Medicaid programs, whereby rebates are issued to participating state governments. These rebates arise when a patient treated with our product is covered under Medicaid, resulting in a discounted price for our product under the applicable Medicaid program. Our Medicaid rebate accrual calculations require us to project the magnitude of our sales, by state, that will be subject to these rebates. There is a significant time lag in us receiving rebate notices from each state (generally several months or longer after our sale is recognized). Our estimates are based on our historical claim levels by state, as supplemented by management’s judgment.

Distribution, Data, and GPO Administrative Fees: Distribution, data, and GPO administrative fees are paid to authorized wholesalers/distributors of our products (except for U.S. sales of ZEVALIN) for various commercial services, including: contract administration, inventory management, delivery of end-user sales data, and product returns processing. These fees are based on a contractually-determined percentage of our applicable sales.

(b) License Fees: We recognize revenue for our licensing of intellectual property to third-parties (out-licenses), based on the contractual terms of each agreement and our application of pertinent GAAP. This revenue may be associated with upfront license fees, milestone payments from our licensees’ sales or regulatory achievements, and royalties from our licensees’ sales in applicable territories.

(c) Service Revenue: We receive fees from third-parties under certain arrangements for our sales and marketing services, research and development activities, clinical trial management, and supply chain services. Payment may be triggered by contractual fixed payment schedules, the successful completion of a phase of development, results from a clinical trial, regulatory approval events, or completion of product delivery in our capacity as an agent in such arrangement. We recognize revenue when the corresponding milestone is achieved, or the revenue is otherwise earned and due to us through our on-going activities.

(d) New Revenue Recognition Standard: On April 1, 2015, the FASB voted for a one-year deferral of the effective date of the new revenue recognition standard, ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is now effective for us beginning January 1, 2018, requiring revenue recognition in a manner that reasonably reflects the delivery of our goods or services to customers in return for expected consideration. To achieve this core principle, the guidance provides the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

We intend to apply the cumulative effect transition method of ASU 2014-09, and we continue to evaluate the impact of this new standard on our current revenue recognition models for product sales, license fees, and service revenue, as described above.

(ii) Cash and Equivalents

Our cash and equivalents consist of bank deposits and highly liquid investments with maturities of three months or less from the purchase date.

(iii) Marketable Securities

Our marketable securities consist of our holdings in mutual funds and bank certificates of deposit. Since we classify these securities as “available-for-sale” under applicable GAAP, any unrealized gains or losses from their change in value is reflected

9

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

in “unrealized gain on available-for-sale securities” on the accompanying Condensed Consolidated Statements of Comprehensive Loss. Realized gains and losses on available-for-sale securities are included in “other income (expense), net” on the accompanying Condensed Consolidated Statements of Operations.

(iv) Accounts Receivable

Our accounts receivables are derived from our product sales and license fees (our service revenue is recorded in "other receivables"), and do not bear interest. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses in our existing accounts receivable. Account balances are charged off against the allowance after appropriate collection efforts are exhausted.

(v) Inventories

We value our inventory at the lower of (i) the actual cost of its purchase or manufacture, or (ii) its current market value. Inventory cost is determined on the first-in, first-out method ("FIFO"). We regularly review our inventory quantities in process of manufacture and on hand. When appropriate, we record a provision for obsolete and excess inventory to derive its new cost basis, which takes into account our sales forecast by product and corresponding expiry dates.

Direct and indirect manufacturing costs related to the production of inventory prior to U.S. Food and Drug Administration ("FDA") approval are expensed through “research and development,” rather than being capitalized to inventory cost.

(vi) Property and Equipment

Our property and equipment is stated at historical cost, and is depreciated on a straight-line basis over an estimated useful life that corresponds with its designated asset category. We evaluate the recoverability of “long-lived assets” (which includes property and equipment) whenever events or changes in circumstances in our business indicate that the asset’s carrying amount may not be recoverable through on-going operations.

(vii) Goodwill and Intangible Assets

Our goodwill represents the excess of our business acquisition cost over the estimated fair value of the net assets acquired in the corresponding transaction. Goodwill has an indefinite accounting life and is therefore not amortized. Instead, goodwill is evaluated for impairment on an annual basis (as of each October 1st), unless we identify impairment indicators that would require earlier testing.

We evaluate the recoverability of indefinite-lived intangible assets at least annually, or whenever events or changes in our business indicate that an intangible asset’s (whether indefinite or definite-lived) carrying amount may not be recoverable. Such circumstances could include, but are not limited to the following:

(a) a significant decrease in the market value of an asset;

(b) a significant adverse change in the extent or manner in which an asset is used; or

(c) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.

Intangible assets with finite useful lives are amortized over their estimated useful lives on a straight-line basis. We review these assets for potential impairment if/when facts or circumstances suggest that the carrying value of these assets may not be recoverable.

(viii) Stock-Based Compensation

Stock-based compensation expense for equity awards granted to our employees and members of our board of directors is recognized on a straight-line basis over each award's vesting period. Recognized compensation expense is net of an estimated forfeiture rate, representing the percentage of awards that are expected to be forfeited (by termination of employment or service) prior to vesting. We use the Black-Scholes option pricing model to determine the fair value of stock options (as of the

10

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

date of grant) which carry service conditions for vesting. When applicable, we use the Monte Carlo valuation model to value equity awards (as of the date of grant) which carry combined market conditions and service conditions for vesting.

The calculation of the fair value of stock options on the date of grant, and the recognition of stock-based compensation expense over the appropriate time period, requires uncertain assumptions, including (a) the pre-vesting forfeiture rate of the stock option, (b) the term of the stock option, (c) the stock price volatility over the term of the stock option, and (d) the risk-free interest rate over the term of the stock option. 

We estimate forfeiture rates based on our employees’ overall forfeiture history, which we believe will be representative of future results. We estimate the expected term of stock options granted based on our employees’ historical exercise patterns, which we believe will be representative of their future behavior. We estimate the volatility of our common stock on the date of grant based on historical volatility of our common stock for a look-back period that corresponds with the expected term. We estimate the risk-free interest rate based upon the U.S. Treasury yields in effect at award grant, for a period equaling the stock options’ expected term.

(ix) Foreign Currency Translation

We translate the assets and liabilities of our foreign subsidiaries that are stated in their functional currencies (i.e., local operating currencies), to U.S. dollars at the rates of exchange in effect at the reported balance sheet date. Revenues and expenses are translated using the monthly average exchange rates during the reported period. Unrealized gains and losses from the translation of our subsidiaries’ financial statements (that are initially denominated in the corresponding functional currency) are included as a separate component of “accumulated other comprehensive loss” in the Condensed Consolidated Balance Sheets.

We record foreign currency transactions, when initially denominated in a currency other than the respective functional currency of our subsidiary, at the prevailing exchange rate on the date of the transaction. Resulting unrealized foreign exchange gains and losses from transactions with third parties are included in “accumulated other comprehensive loss” in the Condensed Consolidated Balance Sheets.

All unrealized foreign exchange gains and losses associated with our intercompany loans are included in "accumulated other comprehensive loss" in the Condensed Consolidated Balance Sheets, as these loans with our foreign subsidiaries are not expected to be settled in the "foreseeable future." For the period January 1, 2015 through March 31, 2015, unrealized foreign exchange gains and losses associated with our intercompany loans were included in "accumulated other comprehensive loss" in the Condensed Consolidated Balance Sheets and in "other income (expense), net" in the Condensed Consolidated Statements of Operations.

(x) Basic and Diluted Net (Loss) Income per Share

We calculate basic and diluted net (loss) income per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss, basic and diluted loss per share are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include only dilutive stock options, warrants, and other common stock equivalents outstanding during the period.

(xi) Income Taxes

Deferred tax assets and liabilities are recorded based on the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the financial statements, as well as operating losses and tax credit carry forwards using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain.

We have recorded a valuation allowance to reduce our deferred tax assets, because we believe that, based upon a weighting of positive and negative factors, it is more likely than not that these deferred tax assets will not be realized. If/when we determine that our deferred tax assets are realizable, an adjustment to the corresponding valuation allowance would increase our net income in the period that such determination was made.

11

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

In the event that we are assessed interest and/or penalties from taxing authorities that have not been previously accrued, such amounts would be included in “benefit (provision) for income taxes” within the Condensed Consolidated Statements of Operations in the period the notice was received.

(xii) Research and Development Costs

Our research and development costs are expensed as incurred, or as certain milestone payments become due, generally triggered by clinical or regulatory events.

(xiii) Fair Value Measurements

We determine measurement-date fair value based on the proceeds that would be received through the sale of the asset, or that we would pay to settle or transfer the liability, in an orderly transaction between market participants. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used in descending order to measure fair value. These tiers include the following:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are publicly accessible at the measurement date.

Level 2: Observable prices that are based on inputs not quoted on active markets, but that are corroborated by market data. These inputs may include quoted prices for similar assets or liabilities or quoted market prices in markets that are not active to the general public.

Level 3: Unobservable inputs are used when little or no market data is available.

3. BALANCE SHEET ACCOUNT DETAIL

The composition of selected financial statement captions that comprise the accompanying Condensed Consolidated Balance Sheets are summarized below:

(a) Cash and Cash Equivalents and Marketable Securities

As of June 30, 2016 and December 31, 2015, our holdings included within “cash and cash equivalents” and “marketable securities” were at major financial institutions.

Our investment policy requires that investments in marketable securities be in only highly-rated instruments, which are primarily U.S. treasury bills or U.S. treasury-backed securities, and limited investments in securities of any single issuer. We maintain cash balances in excess of federally insured limits with reputable financial institutions. To a limited degree, the Federal Deposit Insurance Corporation ("FDIC") and other third parties insure these investments. However, these investments are not insured against the possibility of a complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. We manage such risks on our portfolio by investing in highly liquid, highly rated instruments, and limit investing in long-term maturity instruments.

The carrying amount of our equity securities, money market funds, bank certificate of deposits ("Bank CDs"), and mutual funds approximates their fair value (utilizing Level 1 or Level 2 inputs – see Note 2(xiii)) because of our ability to immediately convert these instruments into cash with minimal expected change in value.

The following is a summary of our “cash and cash equivalents” and “marketable securities”:

12

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

											Marketable Securities
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents			Current		Long Term
June 30, 2016
Bank deposits	$	75,582	$	—	$	—	$	75,582	$	75,582		$	—	$	—
Money market funds	80,177		—		—		80,177		80,177			—		—
Bank certificates of deposits	247		—		—		247		—			247		—
Total cash and equivalents and marketable securities	$	156,006	$	—	$	—	$	156,006	$	155,759		$	247	$	—
December 31, 2015
Bank deposits	$	59,625	$	—	$	—	$	59,625	$	59,625		$	—	$	—
Money market funds	80,116		—		—		80,116		80,116			—		—
Bank certificates of deposits	245		—		—		245		—			245		—
Total cash and equivalents and marketable securities	$	139,986	$	—	$	—	$	139,986	$	139,741		$	245	$	—

As of June 30, 2016, none of these securities had been in a continuous unrealized loss position longer than one year.

(b) Property and Equipment, Net of Accumulated Depreciation

“Property and equipment, net of accumulated depreciation” consist of the following:

	June 30, 2016			December 31, 2015
Computer hardware and software	$	3,823		$	3,785
Laboratory equipment	622			608
Office furniture	355			355
Leasehold improvements	2,880			2,872
Property and equipment, at cost	7,680			7,620
(Less): Accumulated depreciation	(7,037		)	(6,702		)
Property and equipment, net of accumulated depreciation	$	643		$	918

Depreciation expense (included within “total operating costs and expenses” in the accompanying Condensed Consolidated Statements of Operations) for the six months ended June 30, 2016 and 2015, was $0.3 million and $0.4 million, respectively.

(c) Inventories

“Inventories” consist of the following:

	June 30, 2016			December 31, 2015
Raw materials	$	2,199		$	1,606
Work-in-process*	7,020			4,228
Finished goods	2,792			1,498
(Less:) Non-current portion of inventories included within "other assets" **	(5,606		)	(3,156		)
Inventories	$	6,405		$	4,176

* In January 2016, we received $3.4 million of ZEVALIN antibody materials for its future manufacture (representing strategic long-term supply).

** The "non-current" portion of inventories is presented within "other assets" in the accompanying Condensed Consolidated Balance Sheet at June 30, 2016. This value of $5.6 million represents product that we expect to sell beyond June 30, 2017.

(d) Prepaid expenses and other assets

13

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

“Prepaid expenses and other assets” consist of the following:

	June 30, 2016		December 31, 2015
Prepaid operating expenses	$	2,954	$	3,507
Current portion of debt issuance costs*	—		—
Prepaid expenses and other assets	$	2,954	$	3,507

* Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14) within our accompanying Consolidated Balance Sheets, in accordance with the FASB-issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). These amounts were $1.8 million and $2.2 million (including current and non-current portions) as of June 30, 2016 and December 31, 2015, respectively.

(e) Other receivables

“Other receivables” consist of the following:

	June 30, 2016		December 31, 2015
Income tax receivable	$	1,209	$	1,301
Insurance receivable	350		7,100
Mundipharma promissory note	—		2,215
CASI note - short term*	1,500		—
Eagle receivable for services and support costs (Note 13)	1,939		—
Research and development expenses - reimbursements due	1,699		1,699
Other miscellaneous receivables	271		257
Other receivables	$	6,968	$	12,572

* This full balance was prospectively reclassified beginning March 31, 2016 to "other receivables" (presented within current assets on the accompanying Condensed Consolidated Balance Sheets) from "other assets" (presented within non-current assets) due to this note's maturity date of March 17, 2017 (i.e., within 12 months of June 30, 2016) - see Note 10.

(f) Intangible Assets and Goodwill

“Intangible assets, net of accumulated amortization and impairment charges” consist of the following:

			June 30, 2016
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Full Amortization Period (months)	Remaining Amortization Period (months)
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600	n/a	n/a
EVOMELA distribution rights (1)	7,700		(148		)	—			—			7,552		156	153
BELEODAQ distribution rights	25,000		(3,750		)	—			—			21,250		160	136
MARQIBO distribution rights	26,900		(10,703		)	—			—			16,197		81	45
FOLOTYN distribution rights (2)	118,400		(34,498		)	—			—			83,902		152	77
ZEVALIN distribution rights – U.S.	41,900		(32,346		)	—			—			9,554		123	33
ZEVALIN distribution rights – Ex-U.S.	23,490		(13,634		)	(4,006		)	—			5,850		96	45
FUSILEV distribution rights (3)	16,778		(9,618		)	—			(7,160		)	—		56	0
FOLOTYN out-license (4)	27,900		(10,470		)	—			(1,023		)	16,407		110	73
Total intangible assets	$	305,668	$	(115,167	)	$	(4,006	)	$	(8,183	)	$	178,312

(1) The FDA approval of EVOMELA in March 2016 triggered a $6 million payment due to CyDex Pharmaceuticals, Inc. (a wholly-owned subsidiary of Ligand Pharmaceuticals Incorporated). This event also resulted in a reclassification of our $7.7 million "EVOMELA

14

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

IPR&D" to "EVOMELA distribution rights" due to our ability to begin its commercialization with this FDA approval. Amortization commenced on April 1, 2016, in accordance with our capitalization policy for intangible assets.

(2) Beginning June 2016, we adjusted the amortization period of our FOLOTYN distribution rights to November 2022 from March 2025, representing the period through which we expect to have patent protection from generic competition (see Note 16(g)).

(3) On February 20, 2015, the U.S. District Court for the District of Nevada found the patent covering FUSILEV to be invalid, which was upheld on appeal. On April 24, 2015, Sandoz began to commercialize a generic version of FUSILEV. This represented a “triggering event” under applicable GAAP in evaluating the value of our FUSILEV distribution rights as of March 31, 2015, resulting in a $7.2 million impairment charge (non-cash) in the first quarter of 2015. We accelerated amortization expense recognition in 2015 for the remaining net book value of FUSILEV distribution rights.

(4) On May 29, 2013, we amended our FOLOTYN collaboration agreement with Mundipharma. As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and their royalty rates and milestone payments to us were modified. This constituted a change under which we originally valued the FOLOTYN out-license as part of business combination accounting, resulting in an impairment charge (non-cash) of $1.0 million in the second quarter of 2013.

			December 31, 2015
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600
EVOMELA IPR&D	7,700		—			—			—			7,700
BELEODAQ distribution rights	25,000		(2,812		)	—			—			22,188
MARQIBO distribution rights	26,900		(8,544		)	—			—			18,356
FOLOTYN distribution rights	118,400		(29,474		)	—			—			88,926
ZEVALIN distribution rights – U.S.	41,900		(30,608		)	—			—			11,292
ZEVALIN distribution rights – Ex-U.S.	23,490		(12,632		)	(4,353		)	—			6,505
FUSILEV distribution rights	16,778		(9,618		)	—			(7,160		)	—
FOLOTYN out-license	27,900		(9,109		)	—			(1,023		)	17,768
Total intangible assets	$	305,668	$	(102,797	)	$	(4,353	)	$	(8,183	)	$	190,335

Intangible asset amortization expense recognized during the six months ended June 30, 2016 was $12.1 million, as compared to $20.9 million of amortization and impairment expense recognized in the prior year period (of which $7.2 million relates to the impairment of the FUSILEV distribution rights, and the remaining $13.7 million relates to scheduled amortization expense).

Estimated intangible asset amortization expense for the remainder of 2016 and the five succeeding fiscal years and thereafter is as follows:

Years Ending December 31,
Remainder of 2016	$	13,810
2017	27,620
2018	27,620
2019	25,014
2020	19,736
2021	18,266
2022 and thereafter	28,646
	$	160,712

“Goodwill” is comprised of the following:

15

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

	June 30, 2016			December 31, 2015
Acquisition of Talon (MARQIBO rights)	$	10,526		$	10,526
Acquisition of ZEVALIN Ex-U.S. distribution rights	2,525			2,525
Acquisition of Allos (FOLOTYN rights)	5,346			5,346
Foreign currency exchange translation effects	(400		)	(437		)
Goodwill	$	17,997		$	17,960

(g) Other assets

“Other assets” are comprised of the following:

	June 30, 2016		December 31, 2015
Equity securities and secured promissory note - CASI (see Note 10)*	$	8,300	$	6,689
Supplies and deposits	171		185
2018 Convertible Notes issuance costs (excluding current portion)**	—		—
Executive officer life insurance – cash surrender value	11,478		9,181
Inventories - non-current portion	5,606		3,156
Other miscellaneous assets	45		—
Other assets	$	25,600	$	19,211

* These equity securities were excluded from “marketable securities” (see Note 3(a)) due to our intent to hold these securities for at least one year beyond June 30, 2016, as discussed in Note 10. Unrealized gains from these equity securities were recognized through “unrealized gain on available-for-sale securities" within the Condensed Consolidated Statements of Comprehensive Loss, and were $2.5 million for the six months ended June 30, 2016.

** Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14) within our accompanying Consolidated Balance Sheets, in accordance with ASU 2015-03. These amounts were $1.8 million and $2.2 million (including current and non-current portions) as of June 30, 2016 and December 31, 2015, respectively.

(h) Accounts payable and other accrued liabilities

“Accounts payable and other accrued liabilities” are comprised of the following:

	June 30, 2016		December 31, 2015
Trade accounts payable and other accrued liabilities	$	29,912	$	26,684
Accrued rebates	7,757		18,166
Accrued product royalty	4,372		4,908
Allowance for returns	1,734		1,394
Accrued data and distribution fees	1,983		1,830
Accrued GPO administrative fees	537		1,058
Accrued inventory management fee	412		498
Allowance for chargebacks	1,501		2,001
Accounts payable and other accrued liabilities	$	48,208	$	56,539

16

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets specifically for gross-to-net ("GTN") estimates (see Note 2(i)) are as follows:

	Rebates and Chargebacks			Data and Distribution, GPO Fees, and Inventory Management Fees			Returns
Balance as of December 31, 2014	$	45,822		$	8,284		$	1,135
Add: provisions	75,498			15,928			1,486
(Less): credits or actual allowances	(101,153		)	(20,826		)	(1,227		)
Balance as of December 31, 2015	20,167			3,386			1,394
Add: provisions	41,222			6,001			1,018
(Less): credits or actual allowances	(52,131		)	(6,455		)	(678		)
Balance as of June 30, 2016	$	9,258		$	2,932		$	1,734

(i) Deferred revenue

Deferred revenue (current and non-current) is comprised of the following:

	June 30, 2016		December 31, 2015
Mundipharma deferred revenue (see Note 11)	$	2,175	$	—
EVOMELA deferred revenue*	1,622		—
FUSILEV deferred revenue**	—		6,083
Dr. Reddy's out-license (see Note 16(b)(iii))	414		430
Deferred revenue	$	4,211	$	6,513

*We commercialized EVOMELA beginning in April 2016, and have deferred revenue recognition (see Note 2(i)(a)) for any product shipped to our distributors, but not ordered and received by end-users as of June 30, 2016.

**In the third quarter 2015, we deferred revenue recognition related to certain FUSILEV product shipments that did not meet our revenue recognition criteria (see Note 2(i)(a)), aggregating $9.9 million. Specifically, this deferral resulted from our inability to concurrently estimate future rebate values (with requisite precision) offered to our customers in order to compete with generic products. During the fourth quarter of 2015, we recognized $3.8 million for these third quarter shipments, and $6.1 million remained deferred as of December 31, 2015. In the first quarter 2016, this $6.1 million of deferred revenue was recognized in full.

(j) Other long-term liabilities

Other long-term liabilities are comprised of the following:

	June 30, 2016		December 31, 2015
Accrued executive deferred compensation	$	7,672	$	6,458
Deferred rent (non-current portion)	219		248
Clinical study holdback costs, non-current	32		—
Other tax liabilities	738		738
Other long-term liabilities	$	8,661	$	7,444

4. GROSS-TO-NET PRODUCT SALES

The below table presents a GTN product sales reconciliation for the accompanying Condensed Consolidated Statement of Operations:

17

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Gross product sales	$	56,439		$	52,800		$	114,450		$	115,398
Commercial rebates and government chargebacks	(21,270		)	(13,705		)	(41,222		)	(31,850		)
Data and distribution fees, GPO fees, and inventory management fees	(3,774		)	(3,635		)	(6,001		)	(9,205		)
Prompt pay discounts	(80		)	(1		)	(80		)	(1		)
Product returns allowance	(428		)	(315		)	(1,018		)	(785		)
Net product sales	$	30,887		$	35,144		$	66,129		$	73,557

5. NET PRODUCT SALES BY GEOGRAPHIC REGION AND PRODUCT LINE, AND COMPOSITION OF LICENSE FEES AND SERVICE REVENUE

The below table presents our net product sales by geography for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
United States	$	30,037	97.2	%	$	33,676	95.8	%	$	63,816	96.5	%	$	70,284	95.6	%
International:
Europe	850		2.8	%	514		1.5	%	2,313		3.5	%	1,097		1.5	%
Asia Pacific*	—		—	%	954		2.7	%	—		—	%	2,176		3.0	%
Total international	850		2.8	%	1,468		4.2	%	2,313		3.5	%	3,273		4.5	%
Net product sales	$	30,887	100.0	%	$	35,144	100.0	%	$	66,129	100.0	%	$	73,557	100.0	%

* See Note 11 for discussion of our November 2015 out-license for Asia Pacific territory to Mundipharma.

The below table presents our net product sales by product line for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
FUSILEV	$	10,467	33.9	%	$	14,329	40.8	%	$	25,676	38.8	%	$	34,496	46.9	%
FOLOTYN	10,970		35.5	%	12,222		34.8	%	24,262		36.7	%	21,538		29.3	%
ZEVALIN	2,811		9.1	%	4,802		13.7	%	5,595		8.5	%	9,023		12.3	%
MARQIBO	2,067		6.7	%	2,080		5.9	%	2,996		4.5	%	3,974		5.4	%
BELEODAQ	3,664		11.9	%	1,711		4.9	%	6,692		10.1	%	4,526		6.2	%
EVOMELA	908		2.9	%	—		—	%	908		1.4	%	—		—	%
Net product sales	$	30,887	100.0	%	$	35,144	100.0	%	$	66,129	100.0	%	$	73,557	100.0	%

The below table presents our license fee and service revenue by source for the three and six months ended June 30, 2016 and 2015:

18

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
Out-license to Servier in Canada territory (Note 12)	$	—	—	%	$	—	—	%	$	6,000	51.3	%	$	—	—	%
Co-Promotion with Eagle (Note 13)	2,398		78.3	%	—		—	%	4,332		37.1	%	—		—	%
Out-license to Mundipharma in China and other ex-U.S. territories (Note 11 and 15)	629		20.5	%	144		1.5	%	1,313		11.2	%	336		3.3	%
Out-license to CASI in China territory (Note 10)	—		—	%	9,682		98.4	%	—		—	%	9,682		96.4	%
Other license fees and service revenues	35		1.1	%	12		0.1	%	41		0.4	%	24		0.2	%
License fees and service revenues	$	3,062	100.0	%	$	9,838	100.0	%	$	11,686	100.0	%	$	10,042	100.0	%

6. STOCK-BASED COMPENSATION

We classify our stock-based compensation expense (inclusive of our incentive stock plan, employee stock purchase plan, and 401(k) contribution matching program) in the accompanying Condensed Consolidated Statements of Operations, based on the department to which the recipient belongs. Stock-based compensation expense included within “Total operating costs and expenses” for the three and six months ended June 30, 2016 and 2015 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of product sales	$	27	$	22	$	54	$	22
Research and development	610		419		991		852
Selling, general and administrative	2,790		3,087		5,559		5,116
Total stock-based compensation	$	3,427	$	3,528	$	6,604	$	5,990

7. NET LOSS PER SHARE

Net loss per share was computed by dividing net loss by the weighted average number of common shares outstanding for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net loss	$	(24,295	)	$	(2,346	)	$	(33,616	)	$	(27,908	)
Weighted average shares – basic and diluted	68,575,021			65,466,004			67,146,188			65,167,162
Net loss per share – basic and diluted	$	(0.35	)	$	(0.04	)	$	(0.50	)	$	(0.43	)

The below outstanding securities were excluded from the above calculation of net loss per share because their impact would have been anti-dilutive due to net loss per share in the three and six months ended June 30, 2016 and 2015, as summarized below:

19

	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
2018 Convertible Notes	11,401,284	11,401,284	11,401,284	11,401,284
Common stock options	2,253,595	1,383,667	1,508,705	1,465,449
Restricted stock awards	2,472,520	1,544,492	2,472,520	1,544,492
Common stock warrants	32,868	30,236	2,475	37,470
Preferred stock	—	40,000	—	40,000
Total	16,160,267	14,399,679	15,384,984	14,488,695

8. FAIR VALUE MEASUREMENTS

The table below summarizes certain asset and liability fair values that are included within our accompanying Condensed Consolidated Balance Sheets, and their designations among three fair value measurement categories:

	June 30, 2016 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	247	$	—	$	247
Money market currency funds	—		80,177		—		80,177
Equity securities	8,300		—		—		8,300
Mutual funds	—		45		—		45
Deferred compensation investments, including life insurance cash surrender value	—		11,478		—		11,478
	$	8,300	$	91,947	$	—	$	100,247
Liabilities:
Deferred executive compensation liability	$	—	$	7,672	$	—	$	7,672
Drug development liability (Note 15)	—		—		14,383		14,383
Talon CVR (Note 9(a))	—		—		1,931		1,931
Corixa Liability	—		—		62		62
	$	—	$	7,672	$	16,376	$	24,048

	December 31, 2015 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	245	$	—	$	245
Money market currency funds	—		80,116		—		80,116
Equity securities	5,189		—		—		5,189
Deferred compensation investments, including life insurance cash surrender value	—		9,181		—		9,181
	$	5,189	$	89,542	$	—	$	94,731
Liabilities:
Deferred executive compensation liability	$	—	$	6,458	$	—	$	6,458
Drug development liability	—		—		14,686		14,686
Ligand Contingent Consideration	—		—		5,227		5,227
Talon CVR	—		—		1,377		1,377
Corixa Liability	—		—		62		62
	$	—	$	6,458	$	21,352	$	27,810

We did not have any transfers between Levels 1 and 2 for all periods presented. The following presents a roll forward of our liabilities for which we utilize Level 3 inputs in determining period-end value. These liabilities are included on our

20

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

Condensed Consolidated Balance Sheets within “acquisition-related contingent obligations” and “drug development liability”. The basis of the various Level 3 valuationinputs are discussed in the Notes to these accompanying Condensed Consolidated Financial Statements.

Our carrying amounts of financial instruments such as cash equivalents, accounts receivable, prepaid expenses, accounts payable, and accrued liabilities, excluding acquisition-related contingent obligations, approximate their related fair values due to their short-term nature.

	Fair Value Measurements of Unobservable Inputs (Level 3)
Balance at December 31, 2014	$	23,127
Deferred drug development costs	(1,099		)
Ligand Contingent Consideration fair value adjustment	326
Talon CVR fair value adjustment	(1,002		)
Balance at December 31, 2015	21,352
Settlement of Ligand Contingent Consideration liability (seeNote 9(b))	(6,000		)
Deferred drug development costs (see Note 15)	(303		)
Ligand Contingent Consideration fair value adjustment prior to settlement (see Note 9(b))	773
Talon CVR fair value adjustment (see Note 9(a))	554
Balance at June 30, 2016*	$	16,376

* This amount is comprised of the current and non-current portions of “drug development liability” and “acquisition-related contingent obligations” on our accompanying Condensed Consolidated Balance Sheets.

9. BUSINESS COMBINATIONS AND CONTINGENT CONSIDERATION

(a) Acquisition of Talon Therapeutics, Inc. and Related Contingent Consideration

Overview of Talon Acquisition

On July 17, 2013, we purchased all of the outstanding shares of common stock of Talon Therapeutics, Inc. (“Talon”). Through the acquisition of Talon, we gained worldwide rights to MARQIBO. The Talon purchase consideration comprised of (i) an aggregate upfront cash amount of $11.3 million, (ii) issuance of 3.0 million shares of our common stock, then equivalent to $26.3 million (based on a closing price of $8.77 per share on July 17, 2013), and (iii) the issuance of contingent value rights (“CVR”) initially valued at $6.5 million.

The CVR was valued using a valuation model that probability-weights expected outcomes (ranging from 50% to 100%) and discounts those amounts to their present value, using an appropriate discount rate (these represent unobservable inputs and are therefore classified as Level 3 inputs – see Note 2 (xiii)). The CVR has a maximum payout of $195 million if all sales and regulatory approval milestones are achieved, as summarized below:

• $5 million upon the achievement of net sales of MARQIBO in excess of $30 million in any calendar year

• $10 million upon the achievement of net sales of MARQIBO in excess of $60 million in any calendar year

• $25 million upon the achievement of net sales of MARQIBO in excess of $100 million in any calendar year

• $50 million upon the achievement of net sales of MARQIBO in excess of $200 million in any calendar year

• $100 million upon the achievement of net sales of MARQIBO in excess of $400 million in any calendar year

• $5 million upon receipt of marketing authorization from the FDA regarding Menadione Topical Lotion

Talon CVR Fair Value as of June 30, 2016 and December 31, 2015

The CVR fair value will continue to be evaluated on a quarterly basis. Current and future changes in its fair value results from the likelihood and timing of milestone achievement and/or the corresponding discount rate applied thereon. Adjustments

21

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

to CVR fair value are recognized within “change in fair value of contingent consideration related to acquisitions” in the accompanying Condensed Consolidated Statements of Operations.

	Fair Value of Talon CVR
December 31, 2015	$	1,377
Fair value adjustment for the six months ended June 30, 2016	554
June 30, 2016	$	1,931

(b) Acquisition of Rights to EVOMELA and Related Contingent Consideration

Overview of Acquisition of Rights to EVOMELA

In March 2013, we completed the acquisition of exclusive global development and commercialization rights to Captisol-enabled®, propylene glycol-free MELPHALAN (which we recently branded as “EVOMELA”) for use as a conditioning treatment prior to autologous stem cell transplant for patients with MM. We acquired these rights from CyDex Pharmaceuticals, Inc. a wholly-owned subsidiary of Ligand Pharmaceuticals Incorporated (“Ligand”) for an initial license fee of $3 million.

We accounted for this transaction as a business combination, which required that assets acquired and liabilities assumed be recognized on the balance sheet at their fair values as of the transaction date.

We are required to pay Ligand additional amounts up to an aggregate $60 million (exclusive of the $6 million milestone payment triggered in March 2016, as further discussed below), upon the achievement of certain regulatory milestones and net sales thresholds, and we also assumed responsibility for EVOMELA's ongoing clinical and regulatory development program. We also must pay royalties of 20% on our future net sales of EVOMELA in all territories.

Consideration Transferred

The acquisition-date fair value of the consideration transferred consisted of the following:

Cash consideration	$	3,000
Ligand Contingent Consideration	4,700
Total purchase consideration	$	7,700

Fair Value Estimate of Asset Acquired and Liability Assumed

The total purchase consideration is allocated to the acquisition of the net tangible and intangible assets based on their estimated fair values as of the closing date. The allocation of the total purchase price to the net assets acquired is as follows:

EVOMELA IPR&D $ 7,700

We estimated the fair value of the in-process research and development using the income approach. The income approach uses valuation techniques to convert future amounts to a single present amount (discounted). Our measurement is based on the value indicated by current market expectations about those future amounts. The fair value estimate took into account our estimates of future incremental earnings that may be achieved upon regulatory approval, promotion, and distribution associated with the rights, and included estimated cash flows of approximately 10 years and a discount rate of approximately 25%.

The fair value of the contingent consideration liability assumed was determined using the probability of success and the discounted cash flow method of the income approach (representing unobservable inputs and are therefore represent Level 3 values - see Note 2(xiii)). In March 2016, the FDA approved EVOMELA, triggering a $6 million milestone payment to Ligand (“Ligand Contingent Consideration”) that was paid in April 2016. "EVOMELA IPR&D" of $7.7 million was reclassified to "EVOMELA distribution rights" within "Intangible assets, net of accumulated amortization and impairment charges" in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2016 (see Note 3(f)). Amortization related to this intangible asset commenced on April 1, 2016.

22

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

Ligand Contingent Consideration Fair Value as of June 30, 2016 and December 31, 2015

The fair value of the Ligand Contingent Consideration was the full $6 million payment due upon milestone achievement. Accordingly, in the first quarter of 2016, we recorded a $0.8 million adjustment to the “change in fair value of contingent consideration related to acquisitions” in the accompanying Condensed Consolidated Statements of Operations.

	Fair Value of Ligand Contingent Consideration
December 31, 2015	$	5,227
Fair value adjustment for the three months ended March 31, 2016	773
Payment to Ligand in April 2016	$	(6,000	)
June 30, 2016	$	—

(c) Allos Acquisition

We acquired Allos Therapeutics, Inc. (“Allos”) on September 5, 2012, which was accounted for as a business combination. Our total cash consideration for this acquisition was $205.2 million, through which we acquired FOLOTYN distribution rights. We have no contingent consideration obligations as part of this transaction.

10. OUT-LICENSE OF MARQIBO, ZEVALIN, AND EVOMELA IN CHINA TERRITORY TO CASI

Overview of CASI Out-License

On September 17, 2014, we executed three product out-license agreements with a perpetual term (collectively, the “CASI Out-License”) with CASI Pharmaceuticals, Inc. (“CASI”), a publicly-traded biopharmaceutical company (NASDAQ: CASI) with a primary focus on the China market. Under the CASI Out-License, we granted CASI the exclusive rights to distribute two of our commercialized oncology drugs, ZEVALIN and MARQIBO, and our Phase 3 drug candidate, EVOMELA (“CASI Out-Licensed Products”) in greater China (which includes Taiwan, Hong Kong and Macau). In return, we received CASI equity for the rights related to ZEVALIN and EVOMELA and a secured promissory note for the rights related to MARQIBO. Additionally, under certain conditions which generally expire on September 17, 2019, we have a right to receive additional CASI common stock in order to maintain our post-investment ownership percentage if CASI issues additional securities. In February 2016, we acquired an additional 1.7 million common shares of CASI at par value, resulting in our total holding of 7.1 million common shares as of June 30, 2016.

CASI will be responsible for the development and commercialization of these three drugs, including the submission of import drug registration applications to regulatory authorities and conducting any confirmatory clinical studies in greater China. We will provide CASI with future commercial supply of the CASI Out-Licensed Products under typical market terms.

Proceeds Received in the Third Quarter of 2014

The proceeds we received, and its fair value on the CASI Out-License execution date, consisted of the following:

CASI common stock (5.4 million shares)	$	8,649	(a)
CASI secured promissory note due March 17, 2017, net of fair value discount ($1.5 million face value and 0.5% annual coupon)	1,310		(b)
Total consideration received, net of fair value discount	$	9,959

23

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

(a) Value determined based on the September 17, 2014 closing price of 5.4 million shares of CASI common stock on the NASDAQ Capital Market of $1.60 per share. Our current intention is to hold these securities on a long-term basis. Accordingly, we have presented its value of $8.3 million as of June 30, 2016 within "other assets" (rather than "marketable securities") on our accompanying Condensed Consolidated Balance Sheets. The change in fair value of these securities is reported within “unrealized gain on available-for-sale securities" on the Condensed Consolidated Statements of Comprehensive Loss.

(b) Value estimated using the terms of the $1.5 million promissory note, the application of a synthetic debt rating based on CASI’s publicly-available financial information, and the prevailing interest yields on similar public debt securities as of September 17, 2014. The face value of the promissory note as of June 30, 2016 is included within "other receivables" on the accompanying Condensed Consolidated Balance Sheets.

In addition, CASI will be responsible for paying any royalties or milestones that we are obligated to pay to our third-party licensors resulting from the achievement of certain milestones and/or sales of CASI Out-Licensed Products, but only to the extent of the greater China portion of such royalties or milestones.

11. OUT-LICENSE OF ZEVALIN IN CERTAIN EX-U.S. TERRITORIES TO MUNDIPHARMA

On November 16, 2015, we entered into an out-license agreement with Mundipharma International Corporation Limited for their commercialization of ZEVALIN in Asia (excluding India and Greater China), Australia, New Zealand, Africa, the Middle East, and Latin America (including the Caribbean). In return, we received $18 million (comprised of $15 million received in December 2015 and $3 million received in January 2016). Of these proceeds, $15 million was recognized within "license fees and service revenue" in the fourth quarter of 2015, and $0.8 million of the $3 million payment was recognized in the same caption for the six months ended June 30, 2016. As of June 30, 2016, $2.2 million remains deferred and is presented within "deferred revenue" (current and non-current) in the accompanying Condensed Consolidated Balance Sheets. As Mundipharma has sales of ZEVALIN kits in their territories, the remaining unrecognized portion of this $3 million payment will be reported by us within "license fees and service revenue" on an established per-unit basis. Mundipharma is required to reimburse us for our payment of royalties due to Bayer from their ZEVALIN sales - see Note 16(b)(ii).

We are also eligible to receive an additional $2 million upon Mundipharma's achievement of a specified sales milestone, that if/when achieved, will also be reported within "license fees and service revenue".

In connection with this out-license, on November 16, 2015, we concurrently sold to Mundipharma K.K., all common stock of Spectrum Pharmaceuticals GK (the legal entity through which we previously sold ZEVALIN in Japan) for $2.2 million (in the form of an unsecured note, which was paid in full in June 2016), representing its net asset value (excluding inventory) as of November 16, 2015.

12. OUT-LICENSE OF ZEVALIN, FOLOTYN, BELEODAQ, AND MARQIBO IN CANADA TERRITORY TO SERVIER

On January 8, 2016, we entered into a strategic partnership with Servier Canada, Inc. for the out-licenses of ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO. We received $6 million in upfront payments in the first quarter of 2016 which was recognized within "license fees and service revenue" in the accompanying Condensed Consolidated Statement of Operations for the six months ended June 30, 2016. We will also receive development milestone payments if/when achieved, and a high single-digit royalty on their sales of these products.

13. CO-PROMOTION ARRANGEMENT WITH EAGLE PHARMACEUTICALS

On November 4, 2015, we executed an agreement with Eagle Pharmaceuticals, Inc. ("Eagle") whereby designated members of our sales force will concurrently market up to six of Eagle's pharmaceutical products along with our products, in return for fixed monthly payments over the initial 18 month contract term through June 30, 2017, aggregating $12.8 million (the "Eagle Agreement"). We are also eligible to receive milestone payments of up to $5 million for sales made in 2016 that exceed certain thresholds, and up to $4 million for sales made in the first half 2017 that exceed certain thresholds. In addition, for performance above such sales levels in 2016, and in the first half of 2017, we are eligible to receive variable-based payments in the high single-digits on incremental sales of Eagle's products above these established threshold levels.

24

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

The fixed payments received by us, as well as reimbursable costs for certain marketing activities that we coordinate with third parties on Eagle's behalf, are recognized within "license fees and service revenue" on our accompanying Consolidated Statement of Operations. This amount was $2.4 million and $4.3 million for the three and six months ended June 30, 2016, respectively. Any variable payments due to us will be recognized in the period earned and reported within the same revenue caption.

An allocation of our sales personnel costs that are dedicated to Eagle sales activities are reported within "cost of service revenue" on our accompanying Consolidated Statement of Operations, as are reimbursable costs for Eagle marketing activities. These were an aggregate $2.2 million and $3.5 million for the three and six months ended June 30, 2016, respectively.

Eagle may extend the initial term of this agreement by six months to December 31, 2017 at its sole election. Any extensions after December 31, 2017 require mutual consent and will be for six months per extension. The Eagle Agreement may be terminated by either party for uncured material breaches and certain other events following a change of control or insolvency of either party, and solely by Eagle for convenience with 60 days written notice, subject to an established termination fee, as calculated within the Eagle Agreement.

14. CONVERTIBLE SENIOR NOTES

Overview

On December 17, 2013, we entered into an agreement for the sale of $120 million aggregate principal amount of 2.75% Convertible Senior Notes due December 2018 (the “2018 Convertible Notes”). The 2018 Convertible Notes are convertible into shares of our common stock at a conversion rate of 95 shares per $1,000 principal amount of the 2018 Convertible Notes, equating to 11.4 million common shares if fully converted. The in-the-money conversion price is equivalent to $10.53 per common share. The conversion rate and conversion price is subject to adjustment under certain limited circumstances. The 2018 Convertible Notes bear interest at a rate of 2.75% per year, payable semiannually in arrears on June 15 and December 15 of each year. The 2018 Convertible Notes will mature and become payable on December 15, 2018, subject to earlier conversion into common stock at the holders’ option.

The sale of the 2018 Convertible Notes closed on December 23, 2013 and our net proceeds were $115.4 million, after deducting banker and professional fees of $4.6 million. We used a portion of these net proceeds to simultaneously enter into “bought call” and “sold warrant” transactions with Royal Bank of Canada (collectively, the “Note Hedge”). We recorded the Note Hedge on a net cost basis of $13.1 million, as a reduction to “additional paid-in capital” in our accompanying Condensed Consolidated Balance Sheets. Under applicable GAAP, the Note Hedge transaction is not expected to be marked-to-market through earnings or comprehensive income in future reported periods.

Conversion Hedge

We entered into Note Hedge transactions to reduce the potential dilution to our stockholders and/or offset any cash payments that we are required to make in excess of the principal amount, upon conversion of the 2018 Convertible Notes (in the event that the market price of our common stock is greater than the conversion price). The strike price of the “bought call” is equal to the conversion price and conversion rate of the 2018 Convertible Notes, matching the 11.4 million common shares the 2018 Convertible Notes may be converted into. The strike price of our “sold warrant” is $14.03 per share of our common stock, and is also for 11.4 million common shares.

Conversion Events

On and after June 15, 2018, and until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or a portion of their 2018 Convertible Notes. Prior to June 15, 2018, holders may convert all or a portion of their 2018 Convertible Notes only under any of the following circumstances: (1) during any fiscal quarter (and only during such fiscal quarter), if, for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding fiscal quarter, the last reported sale price of our common stock on such trading day is greater than or equal to 130% of the Notes' conversion price on such trading day; (2) during the five consecutive business day period immediately following any five consecutive trading day period in which, for each trading day of that measurement period, the trading price per $1,000 principal amount of 2018 Convertible Notes for such trading day was less than 98% of the product of (i) the last reported sale price of our common stock on such

25

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

trading day and (ii) the Notes' conversion rate on such trading day; (3) upon the occurrence of certain corporate transactions; and (4) at any time prior to our stockholders’ approval to settle the 2018 Convertible Notes in our common shares and/or cash.

As of June 30, 2016, the 2018 Convertible Notes are not eligible to be converted into our common stock, as none of the above elements (1) through (4) were met. Our stockholders’ approval of "flexible settlement" occurred at our Annual Meeting of Stockholders on June 29, 2015. As a result, we may (at our election) settle any future conversions of the 2018 Convertible Notes by paying or delivering cash, shares of our common stock, or a combination of cash and shares of our common stock. However, if the holders of the Convertible Notes do not elect any conversion into our common stock, our December 2018 obligation to repay the principal amount of $120 million in cash, plus any accrued and unpaid interest, is unchanged.

Carrying Value and Fair Value

The carrying value of the 2018 Convertible Notes as of June 30, 2016 is summarized as follows:

Principal amount	$	120,000
(Less): Unamortized debt discount (amortized through December 2018)	(15,652		)
(Less): Debt issuance costs (see Note 3(d))	(1,826		)
June 30, 2016 carrying value	$	102,522

As of June 30, 2016 and December 31, 2015, the estimated aggregate fair value of the 2018 Notes is $112.8 million and $105.1 million, respectively. These fair value estimates are less than the principal amount of $120 million, largely since the conversion feature of the 2018 Notes was, and remains, out-of-the-money. These estimated fair values represent a Level 2 measurement (see Note 2(xiii)), based upon the 2018 Convertible Notes' quoted bid price at each date in a thinly-traded market.

Components of Interest Expense on 2018 Convertible Notes

The following table sets forth the components of interest expense recognized in the accompanying Condensed Consolidated Statements of Operations for the 2018 Convertible Notes for the six months ended June 30, 2016:

Contractual coupon interest expense	$	1,650
Amortization of debt issuance costs	345
Accretion of debt discount	2,800
Total	$	4,795
Effective interest rate	8.66		%

15. MUNDIPHARMA AGREEMENT AND DRUG DEVELOPMENT LIABILITY

As the result of our acquisition of Allos Therapeutics, Inc. on September 5, 2012 (through which we obtained distribution rights for FOLOTYN), we assumed its obligations under an active strategic collaboration agreement with a third-party, Mundipharma (the “Mundipharma Collaboration Agreement”). Under the Mundipharma Collaboration Agreement, we retained full commercialization rights for FOLOTYN in the U.S. and Canada, with Mundipharma having exclusive rights to commercialize FOLOTYN in all other countries in the world (the “Mundipharma Territories”).

On May 29, 2013, the Mundipharma Collaboration Agreement was amended and restated (the “Amended Mundipharma Collaboration Agreement”), in order to modify: (i) the scope of the licensed territory, (ii) milestone payments, (iii) royalty rates, and (iv) drug development obligations. In connection with the Amended Mundipharma Collaboration Agreement, we received a one-time $7 million payment from Mundipharma for certain research and development activities to be performed by us.

As a result of the Amended Mundipharma Collaboration Agreement, (a) Europe and Turkey were excluded from Mundipharma’s commercialization territory, (b) we may receive regulatory milestone payments of up to $16 million, and commercial progress and sales-dependent milestone payments of up to $107 million, (c) we will receive tiered double-digit royalties based on net sales of FOLOTYN within Mundipharma’s licensed territories, and (d) we and Mundipharma will bear our own FOLOTYN development costs.

26

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

On May 29, 2015 and effective as of May 1, 2015, we entered into an amendment to the Amended Mundipharma Collaboration Agreement (the “Amendment”). Pursuant to the Amendment, among other things, the parties revised the conditions to our exercise of the option to gain commercialization rights in Switzerland from Mundipharma, and also revised tiered double-digit royalties payable by Mundipharma on net sales in Switzerland.

The fair value of this liability is included in the current and long-term portions of “drug development liability” within the accompanying Condensed Consolidated Balance Sheets, and it includes our assumptions about personnel needed to perform these research and development activities, third party costs for projected clinical trial enrollment, and patient treatment-related follow up through approximately 2031.

The fair value of our “drug development liability” within our accompanying Condensed Consolidated Balance Sheets was estimated using the discounted income approach model. The unobservable inputs (i.e., Level 3 inputs - see Note 2(xiii)) in this valuation model that have the most significant effect on these liabilities include (i) estimates of research and development personnel costs needed to perform the research and development services, (ii) estimates of expected cash outflows to third parties for services and supplies during the expected period of performance through 2031, and (iii) an appropriate discount rate for these expenditures. These inputs are reviewed by management on a quarterly basis for continued applicability.

We assess this liability at each reporting date and record its adjustment through “research and development” expense in our accompanying Condensed Consolidated Statements of Operations.

	Drug Development Liability, Current – FOLOTYN			Drug Development Liability, Long Term – FOLOTYN			Total Drug Development Liability – FOLOTYN
Balance at December 31, 2015	$	259		$	14,427		$	14,686
Transfer from long-term to current in 2016	200			(200		)	—
(Less): Expenses incurred in 2016	(303		)	—			(303		)
Balance at June 30, 2016	$	156		$	14,227		$	14,383

16. COMMITMENTS AND CONTINGENCIES

(a) Facility Leases

We lease our principal executive office in Henderson, Nevada under a non-cancelable operating lease expiring April 30, 2019. We also lease our research and development facility in Irvine, California under a non-cancelable operating lease expiring May 31, 2019, in addition to several other administrative office leases. Each lease agreement contains scheduled rent increases which are accounted for on a straight-line basis.

(b) In-Licensing and Out-Licensing Agreements, Co-Development Agreements, and Milestone Payments

Our drug candidates are being developed pursuant to license agreements that provide us with territory-specific rights to its manufacture, sublicense, and sale. We are generally responsible for all development costs, patent filings and maintenance costs, sales and marketing costs, and liability insurance costs. We are also obligated to make certain milestone payments to third parties upon the achievement of regulatory and sales milestones that are specified in these license agreements. We estimate and present a corresponding liability on our Condensed Consolidated Balance Sheets when amounts are probable and reasonably estimable. In addition, we are obligated to pay royalties based on our current and future net sales of in-licensed products.

Our most significant of these agreements are listed and summarized below:

(i) ZEVALIN U.S.: In-Licensing and Development in the U.S.

In December 2008, we acquired rights to commercialize and develop ZEVALIN in the U.S. as the result of a transaction with Cell Therapeutics, Inc. (“CTI”) through our wholly-owned subsidiary, RIT Oncology LLC (“RIT”). We assumed certain agreements with various third parties related to ZEVALIN intellectual property for its manufacture, use, and sale in the U.S.

27

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

In accordance with the terms of assumed contracts, we are required to meet specified payment obligations, including a milestone payment to Corixa Corporation of $5 million based on ZEVALIN sales in the U.S. (the “Corixa Liability”). This milestone has not yet been met, and $0.1 million for this potential milestone achievement is included within “acquisition-related contingent obligations” in our accompanying Condensed Consolidated Balance Sheet as of June 30, 2016 and December 31, 2015, respectively. Our U.S. net sales-based royalties are in the low to mid-single digits to Genentech, Inc. and mid-teens to Biogen.

(ii) ZEVALIN Ex-U.S.: In-License and Asset Purchase Agreement with Bayer Pharma

In April 2012, through our wholly-owned subsidiary, Spectrum Pharmaceuticals Cayman, L.P., we completed the acquisition of licensing rights to market ZEVALIN outside of the U.S. from Bayer Pharma AG (“Bayer”). ZEVALIN is currently approved in approximately 40 countries outside the U.S. for the treatment of B-cell non-Hodgkin lymphoma, including countries in Europe, Latin America, and Asia.

In consideration for the rights granted under the agreement, concurrent with the closing, we paid Bayer a one-time fee of €19 million. Our ex-U.S. net sales-based royalty to Bayer ranges between the single digits to mid-teens. We amended the agreement in February 2016. Under the amendment, in the event that we elect to sublicense the rights in certain countries, our applicable royalty on net sales to Bayer would be adjusted to a tiered rate from the single digits to 20% in such countries. Unless earlier terminated, the term of the agreement, as amended, continues until the expiration of the last-to-expire patent covering the sale of a licensed product in the relevant country, or 15 years from the date of first commercial sale of the licensed product in such country, whichever is longer.

(iii) ZEVALIN Ex-U.S.: Out-License Agreement with Dr. Reddy’s

Effective June 27, 2014, we executed an exclusive License Agreement with Dr. Reddy’s Laboratories Ltd. (“Dr. Reddy’s”), for the distribution rights of ZEVALIN within India. The agreement term is 15 years from the receipt of pending approval of ZEVALIN from the Drug Controller General of India. On December 17, 2014, upon the execution of a supply agreement, an upfront and non-refundable payment of $0.5 million was triggered and was paid to us in February 2015. The recognition of this upfront payment is reported on a straight-line basis within “license fee and service revenue” on the Condensed Consolidated Statements of Operations over a 10 year term through December 2024. Additionally, sales and regulatory milestones (aggregating $3 million) will become payable to us when achieved by Dr. Reddy’s, as well as a 20% royalty on net sales of ZEVALIN in India.

(iv) ZEVALIN Ex-U.S.: Out-License Agreement with Mundipharma

On November 16, 2015, we entered into an out-license agreement with Mundipharma International Corporation Limited ("Mundipharma") for their commercialization of ZEVALIN in Asia (excluding India and Greater China), Australia, New Zealand, Africa, the Middle East, and Latin America (including the Caribbean). In return, we received $18 million (comprised of $15 million received in December 2015 and $3 million received in January 2016). Of these proceeds, $15 million was recognized within "license fees and service revenue" in the fourth quarter of 2015, and $0.8 million of the $3 million payment was recognized in the same caption for the six months ended June 30, 2016. As of June 30, 2016, $2.2 million remains deferred and is presented within "deferred revenue" (current and non-current) in the accompanying Condensed Consolidated Balance Sheets. As Mundipharma has sales of ZEVALIN kits in their territories, the remaining unrecognized portion of this $2.2 million value will be recognized by us in subsequent periods within "license fees and service revenue" on an established per-unit basis. Mundipharma is required to reimburse us for our payment of royalties due to Bayer from their ZEVALIN sales (see Note 16(b)(ii)).

We are also eligible to receive an additional $2 million upon Mundipharma's achievement of a specified sales milestone, that if/when achieved, will also be reported within "license fees and service revenue".

(v) FUSILEV: In-License Agreement with Merck & Cie AG

In May 2006, we amended and restated a license agreement with Merck & Cie AG (“Merck”), which we assumed in connection with our March 2006 acquisition of the assets of Targent, Inc. Pursuant to the license agreement with Merck, we obtained the exclusive license to use regulatory filings related to FUSILEV and a non-exclusive license under certain patents and know-how to develop, manufacture, use, and sell FUSILEV in the field of oncology in North America in return for a royalty percentage (in the mid-single digits) of net sales. Merck is eligible to receive a $0.2 million payment from us upon the achievement of a FDA approval of an oral form of FUSILEV. This milestone has not yet been met, and no amounts have been accrued in our accompanying Condensed Consolidated Balance Sheets for its potential achievement.

28

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

(vi) FOLOTYN: In-License Agreement with Sloan-Kettering Institute, SRI International and Southern Research Institute

In December 2002, Allos entered into the FOLOTYN License Agreement with Sloan-Kettering Institute for Cancer Research, SRI International, and Southern Research Institute. As a result of Allos becoming our wholly owned subsidiary in September 2012, we are bound by the FOLOTYN License Agreement under which we obtained exclusive worldwide rights to a portfolio of patents and patent applications related to FOLOTYN and its uses. Under the terms of the FOLOTYN License Agreement, we are required to fund all development programs and will have sole responsibility for all commercialization activities. In addition, we pay graduated royalties to our licensors based on our (including sub licensees) worldwide annual net sales of FOLOTYN. Royalties are 8% of annual worldwide net sales up to $150 million; 9% of annual worldwide net sales of $150 million through $300 million; and 11% of annual worldwide net sales in excess of $300 million.

(vii) EVOMELA: In-License Agreement with Cydex Pharmaceuticals, Inc.

In March 2013, we completed the acquisition of exclusive global development and commercialization rights to

EVOMELA from Ligand (see Note 9(b)) and assumed responsibility for EVOMELA's ongoing clinical and regulatory development program. We filed a New Drug Application ("NDA") with the FDA in December 2015 for its use as a conditioning treatment prior to autologous stem cell transplant for patients with MM. On March 10, 2016, the FDA communicated its approval of the NDA for EVOMELA. In connection with this FDA approval, we made a $6 million milestone payment to Ligand on April 13, 2016.

We are required to pay Ligand additional amounts of up to $60 million (exclusive of the $6 million milestone paid in April 2016), upon the achievement of certain regulatory milestones and net sales thresholds. We will also pay royalties of 20% on our net sales of licensed products in all territories.

(viii) MARQIBO: Contingent Consideration Agreement with Talon Therapeutics, Inc.

In July 2013, we completed the acquisition of Talon, through which we obtained exclusive global development and commercialization rights to MARQIBO (see Note 9(a)). As part of this acquisition, we issued the former Talon stockholders contingent value rights (“CVR”) that we have valued and presented on our accompanying Condensed Consolidated Balance Sheets as a $1.9 million and $1.4 million liability within “acquisition-related contingent obligations” as of June 30, 2016 and December 31, 2015, respectively. The CVR has a maximum payout value of $195 million if all sales and regulatory approval milestones are achieved.

(ix) QAPZOLA: License Agreements with Allergan, Inc. and NDDO Research Foundation

In October 2008, we entered into an exclusive development and commercialization collaboration agreement with Allergan for QAPZOLA. Pursuant to the terms of the agreement, Allergan paid us an up-front non-refundable fee of $41.5 million at closing (which we have amortized through revenue within “license fees and service revenue” in full as of December 31, 2013). In October 2008, pursuant to a letter agreement with NDDO Research Foundation (“NDDO”), we agreed to pay NDDO the following in relation to QAPZOLA milestones: (a) upon FDA acceptance of the NDA, the issuance of 25,000 of our common shares (which occurred in March 2016, and the $0.1 million value of these shares is included in "research and development" expense for the six months ended June 30, 2016) and (b) upon FDA approval of the drug (its target decision date is set for December 11, 2016), a one-time payment of $0.3 million.

In January 2013, we entered into a second amendment to the license, development, supply and distribution agreement with Allergan to amend the agreement and reacquire the rights originally licensed to Allergan in the U.S., Europe, and other territories in exchange for a tiered single-digit royalty on certain products containing QAPZOLA, and relieved Allergan of its development and commercialization obligations.

(x) QAPZOLA: Collaboration Agreement with Nippon Kayaku Co. LTD.

In November 2009, we entered into a collaboration agreement with Nippon Kayaku Co., LTD. (“Nippon Kayaku”) for the development and commercialization of QAPZOLA in Asia, except North and South Korea (the “Nippon Kayaku Territory”). In addition, Nippon Kayaku received exclusive rights to QAPZOLA for the treatment of non-muscle invasive bladder cancer in Asia (other than North and South Korea), including Japan and China. Nippon Kayaku will conduct QAPZOLA clinical trials in the Nippon Kayaku Territory pursuant to a development plan. Further, Nippon Kayaku will be responsible for all expenses relating to the development and commercialization of QAPZOLA in the Nippon Kayaku Territory.

29

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

Under the terms of this agreement, Nippon Kayaku paid us an upfront fee of $15 million (which we have amortized through revenue within “license fees and service revenue” in full as of December 31, 2013). Nippon Kayaku is also obligated to make additional payments to us based on the achievement of certain development, regulatory and commercialization milestones. Under the terms of the agreement, we are entitled to payment of $10 million and $126 million upon achievement of certain regulatory and commercialization milestones, respectively. Also, Nippon Kayaku has agreed to pay us royalties based on a percentage of net sales of the subject products in the defined territory in the mid-teen digits.

(xi) BELEODAQ: In-License and Collaboration Agreement with Onxeo

In February 2010, we entered into a licensing and collaboration agreement with TopoTarget A/S (now Onxeo DK) (“Onxeo”), as amended in October 2013, for the development and commercialization of BELEODAQ. The agreement provides that we have the exclusive right to manufacture, develop, and commercialize BELEODAQ in North America and India, with an option for China. Pursuant to the terms of this agreement, we paid Onxeo an upfront fee of $30 million in 2010.

Under continuing terms, all development, including studies, will be conducted under a joint development plan, which we will fund 70% of such costs, and Onxeo will fund 30%. We have final decision-making authority for all developmental activities in North America and India (and China upon exercise of its option). Onxeo has final decision-making authority for all developmental activities in all other jurisdictions. In February 2014, upon FDA acceptance of our new drug application, we issued one million shares of our common stock, and made a $10 million milestone payment to Onxeo. The aggregate payout value of this first milestone at achievement was $17.8 million, and was recognized within “research and development” in the first quarter of 2014.

In July 2014, we received approval from the FDA for BELEODAQ’s use for injection and treatment of relapsed or refractory peripheral T-cell lymphoma. As a result, we paid a second milestone payment to Onxeo of $25 million in November 2014, which we capitalized as an amortizable intangible asset. Other potential milestone payments due upon BELEODAQ regulatory achievements and sales thresholds (aggregating up to $278 million) are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets.

We will pay Onxeo future royalties in the mid-teen digits based on net sales of BELEODAQ. The agreement will continue until the expiration of the last royalty payment period in the last country in the defined territory with certain provisions surviving, unless earlier terminated in accordance with its terms.

(xii) SPI-2012: Co-Development and Commercialization Agreement with Hanmi Pharmaceutical Company

In October 2014, we exercised our option under a License Option and Research Collaboration Agreement dated January 2012 (as amended) with Hanmi Pharmaceutical Company, Ltd. (“Hanmi”), for SPI-2012, formerly known as “LAPS-GCSF”, a drug based on Hanmi’s proprietary LAPSCOVERY™ technology for the treatment of chemotherapy induced neutropenia. Under the terms of this agreement, as amended, we have primary financial responsibility for the SPI-2012 development plan. We have worldwide rights for SPI-2012, except for Korea, China, and Japan. In the first quarter 2016, we accrued a milestone payment of $1.9 million (as quantified under GAAP) related to Hanmi, based on initial patient dosing in January 2016 as part of our Phase III study. On April 26, 2016, we (i) issued 318,750 of our common shares to Hanmi and (ii) remitted a $0.4 million payment to the Internal Revenue Service (IRS) on their behalf for related tax obligations. This aggregate $2.7 million value was recognized within "research and development" expense in accompanying Condensed Consolidated Statement of Operations for the six months ended June 30, 2016. We will also be responsible for milestones relating to regulatory approvals and sales thresholds (aggregating $238 million), which are not included within "total liabilities" in our Condensed Consolidated Balance Sheets. We will pay Hanmi royalties in the mid-teen digits on our net sales of SPI-2012.

(xiii) POZIOTINIB: In-License Agreement with Hanmi

In February 2015, we executed an in-license agreement with Hanmi Pharmaceutical Co., Ltd for POZIOTINIB, a pan-HER inhibitor in Phase 2 clinical trials, requiring our upfront payment for these rights. This drug has shown single agent activity in the treatment of various cancer types during Phase I studies, including breast, gastric, colorectal, and lung cancers.

Under the terms of this agreement, we received the exclusive rights to commercialize POZIOTINIB globally, excluding Korea and China. Hanmi, and its development partners, will bear full responsibility for completion of on-going Phase 2 trials in Korea. We will bear full financial responsibility for all other clinical studies. We will pay Hanmi future regulatory and sales-dependent milestones payments (aggregating $358 million), which are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets. We will pay Hanmi royalties in the low to mid-teen digits on our net sales of POZIOTINIB.

30

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

(xiv) ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO: Out-License Agreement with Servier

In January 2016, we entered into a strategic partnership with Servier Canada, Inc. for the out-licenses of ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO. We received an aggregate $6 million in upfront payments in the first quarter of 2016 which was recognized within "license fees and service revenue". We will also receive development milestone payments if/when achieved, and a high single-digit royalty on their sales of these products.

(c) Service Agreements

In connection with the research and development of our drug products, we have entered into contracts with numerous third party service providers, such as radio-pharmacies, distributors, clinical trial centers, clinical research organizations, data monitoring centers, and with drug formulation, development and testing laboratories. The financial terms of these agreements are varied and generally obligate us to pay in stages, depending on achievement of certain events specified in the agreements, such as contract execution, reservation of service or production capacity, actual performance of service, or the successful accrual and dosing of patients.

At each period end, we accrue for all services received, with such accruals based on factors such as estimates of work performed, patient enrollment, completion of patient studies and other events. Should we decide to discontinue and/or slow-down the work on any project, the associated costs for those projects would be limited to the extent of the work completed. Generally, we are able to terminate these contracts due to the discontinuance of the related project(s) and thus avoid paying for the services that have not yet been rendered.

(d) Supply Agreements

We have entered into certain supply agreements, or have issued purchase orders, which require us to make minimum purchases from vendors for the manufacture of our products. These commitments do not exceed our planned commercial requirements, and the contracted prices do not exceed their fair market value.

(e) Employment Agreement

We have entered into an employment agreement with our Chief Executive Officer under which cash compensation and benefits would become payable in the event of termination by us for any reason other than cause, his resignation for good reason, or upon a change in control of our Company.

(f) Deferred Compensation Plan

The Spectrum Pharmaceuticals, Inc. Deferred Compensation Plan (the “DC Plan”) is administered by the Compensation Committee of our Board of Directors and is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended.

The DC Plan is maintained to provide deferred compensation benefits for a select group of our employees (the “DC Participants”). Under the DC Plan, we provide the DC Participants with the opportunity to make annual elections to defer up to a specified amount or percentage of their eligible cash compensation, and we have the option to make discretionary contributions. At June 30, 2016 and December 31, 2015, the aggregate DC Plan deferrals by employees and our discretionary contributions totaled $7.7 million and $6.5 million, respectively, and are included within “other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

(g) Litigation

We are involved from time-to-time with various legal matters arising in the ordinary course of business. These claims and legal proceedings are of a nature we believe are normal and incidental to a pharmaceutical business, and may include product liability, intellectual property, employment matters, and other general claims.

We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are assessed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. Although the ultimate resolution of these various matters cannot be determined at this time, we do not believe that such matters, individually or in the aggregate, will have a material adverse effect on our consolidated results of operations, cash flows, or financial condition.

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Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

FUSILEV ANDA Litigation

On June 18, 2014, January 23, 2015, July 17, 2015 and September 3, 2015 respectively, we filed suit against Ben Venue Laboratories, Inc. (“Ben Venue”), Amneal Pharmaceuticals, Inc. (“Amneal”), and Actavis LLC. (“Actavis”), respectively, following Paragraph IV certifications in connection with their filing separate ANDAs, to manufacture a generic version of FUSILEV. We filed the lawsuits in the U.S. District Court for the Districts of Nevada seeking to enjoin the approval of their ANDAs plus recovery of our litigation fees and costs incurred in such matters. On November 24, 2014 the complaint in the Ben Venue case was amended to substitute the original defendant Ben Venue Laboratories, Inc. with successors West-Ward Pharmaceutical Corp. and Eurohealth International SARL (collectively “West-Ward”). On June 9, 2016 and June 22, 2016 respective judgment was entered in favor of Amneal, Westward and Actavis.

On April 27, 2015, we filed suit in the U.S. District Court for the District of Columbia against the FDA seeking a temporary restraining order or preliminary injunction to suspend FDA approval of Sandoz’s ANDA. The Company contends that Sandoz’s ANDA should not have been approved until the expiry of the Company’s Orphan Drug Exclusivity on April 29, 2018. On April 29, 2015, the court denied the temporary restraining order and on May 27, 2015, the court entered summary judgment in favor of the FDA et al. On June 5, 2015, we filed our Notice of Appeal. On June 3, 2016, the U.S. Court of Appeals for the District of Columbia affirmed the judgment in favor of the FDA et. al. All costs pertaining to this matter (incurred and accrued) have been recognized within "selling, general and administrative" expenses on the accompanying Condensed Consolidated Statement of Operations for all periods presented.

FOLOTYN ANDA Litigation

On June 19, 2014, we filed a lawsuit against five parties resulting from Paragraph IV certifications in connection with four separate ANDAs to manufacture a generic version of FOLOTYN: (1)Teva Pharmaceuticals USA, Inc. (“Teva”), (2) Sandoz Inc. (“Sandoz”), (3) Fresenius Kabi USA, LLC (“Fresenius”), (4) Dr. Reddy’s Laboratories, Ltd., and (5) Dr. Reddy’s Laboratories, Inc. (collectively “Dr. Reddy’s”). We filed the lawsuit in the U.S. District Court for the District of Delaware seeking to enjoin the approval of their ANDAs plus recovery of our litigation fees and costs. We have reached settlement agreements with each defendant. Specifically, on May 24, 2016, May 27, 2016, June 8, 2016 and July 12, 2016 we entered into settlement agreements with Teva, Dr. Reddy’s, Sandoz and Fresenius respectively. As a result of the settlements, Teva, Dr. Reddy’s, Sandoz and Fresenius will be permitted to market a generic version of FOLOTYN in the United States commencing on November 15, 2022 or earlier under certain circumstances. Details of the settlements are confidential, and the parties have submitted the agreements to the Federal Trade Commission and the Department of Justice. On June 13, 2016, July 1, 2016 and July 7, 2016, the U.S. District Court for the District of Delaware dismissed the cases against Sandoz, Teva and Dr. Reddy’s respectively. We and Fresenius plan to request that the Court also enter an order, in which it will dismiss our litigation against Fresenius. Once such an order is entered with respect to Fresenius, the last remaining defendant in the lawsuit, this would conclude the litigation. All costs pertaining to this matter (incurred and accrued) have been recognized within "selling, general and administrative" expenses on the accompanying Condensed Consolidated Statement of Operations for all periods presented.

Stockholder Litigation

John Perry v. Spectrum Pharmaceuticals, Inc. et al. (Filed March 14, 2013 in United States District Court, District of Nevada; Case Number 2:2013-cv-00433-LDG-CWH). This putative consolidated class action raises substantially identical claims and allegations against defendants Spectrum Pharmaceuticals, Inc., Dr. Rajesh C. Shrotriya, Brett L. Scott, and Joseph Kenneth Keller. The alleged class period is August 8, 2012 to March 12, 2013. The lawsuits allege a violation of Section 10(b) of the Securities Exchange Act of 1934 against all defendants and control person liability, as a violation of Section 20(b) of the Securities Exchange Act of 1934, against the individual defendants. The claims purportedly stem from our March 12, 2013 press release, in which it announced that it anticipated a change in ordering patterns of FUSILEV. The complaints allege that, as a result of the March 12, 2013 press release, our stock price declined. The complaints further allege that during the putative class period certain defendants made misleadingly optimistic statements about FUSILEV sales, which inflated the trading price of our stock. The lawsuits seek relief in the form of monetary damages, costs and fees, and any other equitable or injunctive relief that the Court deems appropriate. On March 21, 2014, the Court entered an order appointing Arkansas Teacher Retirement System as lead plaintiff. On May 20, 2014, Arkansas Teacher Retirement System filed a consolidated amended class action complaint. On July 18, 2014, we filed a motion to dismiss the consolidated amended class action complaint. On March 26, 2015, the Court denied the motion to dismiss. On June 15, 2015, the Court ordered a stay of the proceedings pending the outcome of mediation between the parties. On October 27, 2015, we reached a $7 million settlement in principle with the lead

32

Notes to Condensed Consolidated Financial Statements

(all tabular amounts presented in thousands, except share, per share, per unit, and number of years)

(Unaudited)

plaintiff (which involved our insurance carrier, as the reimbursing party in full). On June 13, 2016, the Court entered an order granting final approval of the settlement.

Timothy Fik v. Rajesh C. Shrotriya, et al. (Filed April 11, 2013 in United States District Court, District of Nevada; Case Number 2:2013-cv-00624-JCM-CWH); Christopher J. Watkins v. Rajesh C. Shrotriya, et al. (Filed April 22, 2013 in United States District Court, District of Nevada; Case Number 2:2013-cv-00684-JCM-VCF); and Stefan Muenchhagen v. Rajesh C. Shrotriya, et al. (Filed May 28, 2013; Case Number 2:2013-cv-00942-APG-PAL). These derivative complaints are brought by the respective purported stockholders on behalf of nominal plaintiff Spectrum against certain current and former directors and officers. The complaints generally allege breaches of fiduciary based on conduct relating to the events alleged in the consolidated Perry action. The complaints seek compensatory damages, corporate governance reforms, restitution and disgorgement of defendants’ alleged profits, and costs and fees. These actions are stayed. Settlement discussions are ongoing, and accordingly, no agreement has yet been reached to resolve these derivative complaints. If a settlement were reached, we believe it would be reimbursable by our insurance carrier.

Hardik Kakadia v. Rajesh C. Shrotriya, et al. (Filed April 23, 2013 in the Eighth Judicial District Court of the State of Nevada in and for Clark County; Case Number A-13-680643-B); and Joel Besner v. Rajesh C. Shrotriya, et al. (Filed May 31, 2013; Case Number A-13-682668-C) (collectively the “State Derivative Actions”). These consolidated State Derivative Actions are brought by the respective purported stockholders on behalf of nominal plaintiff Spectrum Pharmaceuticals, Inc. and are substantially similar to the consolidated federal derivative actions. These actions are stayed. Settlement discussions are ongoing, and accordingly, no agreement has yet been reached to resolve these derivative complaints. If a settlement were reached, we believe it would be reimbursable by our insurance carrier.

17. INCOME TAXES

We apply an estimated annual effective tax rate (“ETR”) approach for calculating a tax provision for interim periods, as required under GAAP. We recorded a benefit for income taxes of $0.2 million and a provision for income taxes of $0.1 million for the six months ended June 30, 2016 and 2015, respectively. Our ETR differs from the U.S. federal statutory tax rate of 35% primarily as a result of nondeductible expenses, state income taxes, foreign income taxes, and the impact of a valuation allowance on our deferred tax assets.

Our provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax loss and credit carryforwards.

Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. A valuation allowance is established when it is more likely than not the future realization of all or some of the deferred tax assets will not be achieved. The evaluation of the need for a valuation allowance is performed on a jurisdiction by jurisdiction basis, and includes a review of all available positive and negative evidence.

We recognize excess tax benefits associated with share-based compensation to stockholders’ equity only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, we follow the with-and-without approach, excluding any indirect effects of the excess tax deductions. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to us. We recognize the impact of a tax position in our financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense.

18. STOCKHOLDERS' EQUITY

Sale of Common Stock - December 2015 ATM Agreement

On December 23, 2015, we entered into a collective at-market-issuance sales agreement with FBR Capital Markets & Co., MLV & Co. LLC, and H.C. Wainwright & Co., LLC. (“December 2015 ATM Agreement”), through which we are able to raise gross proceeds of up to $100 million from the sale of our common stock through these brokers under our shelf registration statement on Form S-3 (File No. 333-208760), declared effective by the SEC on February 3, 2016.

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During the second quarter of 2016 and through August 8, 2016, we sold and issued shares of our common stock under this December 2015 ATM Agreement, as summarized in the following table:

Description of Financing Transaction	No. of Common Shares Issued	Proceeds Received (Net of Broker Commissions and Fees )
Common shares issued pursuant to the December 2015 ATM Agreement between April 1, 2016 and June 30, 2016 (included within our issued and outstanding share count at June 30, 2016)	6,452,170	$	45,067
Common shares issued pursuant to the December 2015 ATM Agreement between July 1, 2016 and August 8, 2016	4,438,745	$	28,802

Conversion of Series E Convertible Voting Preferred Stock

In June 2016, our then 20 outstanding shares of Series E convertible voting preferred stock were converted (at the election of the preferred stockholders) into an aggregate of 40,000 common shares; a $6 thousand dividend in arrears was paid upon this conversion.  

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, in reliance upon the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, without limitation, statements regarding our future product development activities and costs, the revenue potential (licensing, royalty and sales) of our products and product candidates, the success, safety and efficacy of our drug products, revenues, development timelines, product acquisitions, liquidity and capital resources and trends, and other statements containing forward-looking words, such as, “believes,” “may,” “could,” “will,” “expects,” “intends,” “estimates,” “anticipates,” “plans,” “seeks,” “continues,” or the negative thereof or variation thereon or similar terminology (although not all forward-looking statements contain these words). Such forward-looking statements are based on the reasonable beliefs of our management as well as assumptions made by and information currently available to our management. Readers should not put undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified; therefore, our actual results may differ materially from those described in any forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in our periodic reports filed with the Securities and Exchange Commission, or the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, as well as those discussed elsewhere in this Quarterly Report on Form 10-Q, and the following factors:

• our ability to successfully develop, obtain regulatory approval for and market our products;

• our ability to continue to grow sales revenue of our marketed products;

• risks associated with doing business internationally;

• our ability to generate and maintain sufficient cash resources to fund our business;

• our ability to enter into strategic alliances with partners for manufacturing, development and commercialization;

• efforts of our development partners;

• the ability of our manufacturing partners to meet our timelines;

• the ability to timely deliver product supplies to our customers;

• our ability to identify new product candidates and to successfully integrate those product candidates into our operations;

• the timing and/or results of pending or future clinical trials, and our reliance on contract research organizations;

• our ability to protect our intellectual property rights;

• competition in the marketplace for our drugs;

• delay in approval of our products or new indications for our products by the FDA;

• actions by the FDA and other regulatory agencies, including international agencies;

• securing positive reimbursement for our products;

• the impact of any product liability, or other litigation to which we are, or may become a party;

• the impact of legislative or regulatory reform of the healthcare industry and the impact of recently enacted healthcare reform legislation;

• the availability and price of acceptable raw materials and components from third-party suppliers, and their ability to meet our demands;

• our ability, and that of our suppliers, development partners, and manufacturing partners, to comply with laws, regulations and standards, and the application and interpretation of those laws, regulations and standards, that govern or affect the pharmaceutical and biotechnology industries, the non-compliance with which may delay or prevent the development, manufacturing, regulatory approvals and sale of our products;

• defending against claims relating to improper handling, storage or disposal of hazardous chemical, radioactive or biological materials which could be time consuming and expensive;

• our ability to maintain the services of our key executives and technical and sales and marketing personnel;

• the difficulty in predicting the timing or outcome of product development efforts and regulatory approvals; and

• demand and market acceptance for our approved products.

All subsequent written and oral forward-looking statements attributable to us or by persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. We expressly disclaim any intent or obligation to update information contained in any forward-looking statement after the date thereof to conform such information to actual results or to changes in our opinions or expectations.

Company Overview

Spectrum Pharmaceuticals, Inc. (“Spectrum”, the “Company”, “we”, “our”, or “us”) is a biotechnology company, with a primary strategy comprised of acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. In addition to an in-house clinical development organization with regulatory and data management capabilities, we have established a commercial infrastructure for our marketed products. Currently, we have six approved oncology/hematology products that target different types of NHL, advanced metastatic colorectal cancer, ALL, and MM.

We also have three drugs in late stage development:

•SPI-2012 for chemotherapy-induced neutropenia in patients with breast cancer.

• QAPZOLA for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer.

• POZIOTINIB, a novel pan-HER inhibitor used in the treatment of patients with breast cancer.

See Item 1. of our Annual Report on Form 10-K for the year ended December 31, 2015, “Business” section for a discussion of our:

• Company Overview

• Cancer Background and Market Size

• Product Portfolio

• Manufacturing

• Sales and Marketing

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• Customers

• Competition

• Research and Development

Recent Highlights in Our Business, Product Development Initiatives, and Regulatory Approvals

During the six months ended June 30, 2016, and through the filing date of this quarterly report, we accomplished various critical business objectives, which included:

• SPI-2012, a novel long-actingGCSF: A pivotal Phase 3 study was initiated in Q1 2016 to evaluate SPI-2012 as a treatment for chemotherapy-induced neutropenia in approximately 580 patients with breast cancer. Neutropenia, a possible side effect of chemotherapy, is a condition where the number of neutrophils or white blood cells are too low, and can lead to infection, hospitalization, and even death. The Phase 2 data demonstrated that SPI-2012 was non-inferior to pegfilgrastim at the middle dose tested, and statistically superior in terms of duration of severe neutropenia at the highest dose tested. SPI-2012 was also shown to have an acceptable safety profile with no significant dose-related or unexpected toxicities.

• QAPZOLA (formerly referred to as APAZIQUONE), a potent tumor-activated drug being investigated for non-muscle invasive bladder cancer: The FDA accepted the NDA and has given Spectrum a PDUFA date of December 11, 2016. The FDA plans to hold an advisory committee meeting regarding the NDA on September 14, 2016. The Company is actively enrolling an additional randomized, placebo-controlled Phase 3 trial under an SPA agreement. The Phase 3 study has been specifically designed to build on learnings from the previous studies, as well as recommendations from the FDA.

• POZIOTINIB, a potential best-in-class, novel, pan-HER inhibitor: Spectrum is continuing to enroll a Phase 2 breast cancer program in the U.S., based on promising Phase 1 efficacy data in breast cancer patients who had failed multiple other HER2-directed therapies. In addition, multiple Phase 2 studies are being conducted by Hanmi Pharmaceuticals and National OncoVenture in South Korea.

• EVOMELA (formerly referred to as Captisol-Enabled MELPHALAN): On March 10, 2016, the FDA approved EVOMELA as a high-dose conditioning treatment prior to hematopoietic progenitor (stem) cell transplantation in patients with MM, and for the palliative treatment of patients with MM for whom oral therapy is not appropriate. In April 2016, we launched EVOMELA, our sixth anti-cancer drug, with our existing sales force. On April 20, 2016, the FDA granted orphan drug designation to EVOMELA, giving us seven years of marketing exclusivity and two composition of matter patents that do not expire until March 2029.

• Out-license with Servier Canada: On January 8, 2016, we entered into a strategic partnership with Servier Canada, Inc. for the out-licenses of ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO. We received $6 million in upfront payments in the first quarter of 2016 which was recognized within "license fees and service revenue" in the accompanying Condensed Consolidated Statement of Operations. We will also receive development milestone payments if/when achieved, and a high single-digit royalty on their sales of these products.

CHARACTERISTICS OF OUR REVENUE AND EXPENSES

See Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2015, Characteristics of Our Revenue and Expenses for a discussion of the nature of our revenue and operating expense line items within our accompanying Condensed Consolidated Statements of Operations.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

See Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2015, Critical Accounting Policies and Estimates for a discussion of significant estimates and assumptions as part of the preparation of our accompanying Condensed Consolidated Financial Statements. These critical accounting policies and estimates arise in conjunction with the following accounts:

• Revenue recognition

• Inventories – lower of cost or market

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• Fair value of acquired assets and assumed liabilities

• Goodwill and intangible assets – impairment evaluations

• Income taxes

• Stock-based compensation

• Litigation accruals

RESULTS OF OPERATIONS

Operations Overview – Three and six months ended June 30, 2016 and 2015

	Three Months Ended June 30,										Six Months Ended June 30,
	2016					2015					2016					2015
	($ in thousands)										($ in thousands)
Total revenues	$	33,949		100.0	%	$	44,982		100.0	%	$	77,815		100.0	%	$	83,599		100.0	%
Operating costs and expenses:
Cost of product sales (excludes amortization and impairment charges of intangible assets)	5,609			16.5	%	5,990			13.3	%	11,212			14.4	%	13,061			15.6	%
Cost of service revenue	2,214			6.5	%	—			—	%	3,495			4.5	%	—			—	%
Selling, general and administrative	27,620			81.4	%	22,552			50.1	%	49,583			63.7	%	45,886			54.9	%
Research and development	14,281			42.1	%	9,558			21.2	%	29,744			38.2	%	25,409			30.4	%
Amortization and impairment charges of intangible assets	6,306			18.6	%	6,916			15.4	%	12,145			15.6	%	20,938			25.0	%
Total operating costs and expenses	56,030			165.0	%	45,016			100.1	%	106,179			136.5	%	105,294			126.0	%
Loss from operations	(22,081		)	(65.0	)%	(34		)	(0.1	)%	(28,364		)	(36.5	)%	(21,695		)	(26.0	)%
Interest expense, net	(2,375		)	(7.0	)%	(2,258		)	(5.0	)%	(4,714		)	(6.1	)%	(4,486		)	(5.4	)%
Change in fair value of contingent consideration related to acquisitions	(285		)	(0.8	)%	(146		)	(0.3	)%	(1,327		)	(1.7	)%	(646		)	(0.8	)%
Other income (expense), net	340			1.0	%	69			0.2	%	618			0.8	%	(966		)	(1.2	)%
Loss before income taxes	(24,401		)	(71.9	)%	(2,369		)	(5.3	)%	(33,787		)	(43.4	)%	(27,793		)	(33.2	)%
Benefit (provision) for income taxes	106			0.3	%	23			0.1	%	171			0.2	%	(115		)	(0.1	)%
Net loss	$	(24,295	)	(71.6	)%	$	(2,346	)	(5.2	)%	$	(33,616	)	(43.2	)%	$	(27,908	)	(33.4	)%

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THREE MONTHS ENDED JUNE 30,2016 VERSUS 2015

Total Revenues 

	Three months ended June 30,
	2016		2015		$ Change			% Change
	($ in millions)
Product sales, net:
FUSILEV	$	10.5	$	14.3	$	(3.8	)	(26.6	)%
FOLOTYN	11.0		12.2		(1.2		)	(9.8	)%
ZEVALIN	2.8		4.8		(2.0		)	(41.7	)%
MARQIBO	2.1		2.1		—			—	%
BELEODAQ	3.7		1.7		2.0			117.6	%
EVOMELA	0.9		—		0.9			100.0	%
	$	30.9	$	35.1	$	(4.1	)	(11.7	)%
License fees and service revenue	3.1		9.8		(6.8		)	(69.4	)%
Total revenues	$	34.0	$	44.9	$	(10.9	)	(24.3	)%

Product sales, net. To derive net product sales, gross product revenues in each period are reduced by management's latest estimated provisions for (i) product returns, (ii) government chargebacks, (iii) prompt pay discounts, (iv) commercial rebates, (v) Medicaid rebates, and (vi) distribution, data, and GPO administrative fees. Management considers various factors in the determination of these provisions, which are described in more detail within "Critical Accounting Policies and Estimates" of our 2015 Form 10-K.

FUSILEV revenue decrease is attributable to significant decline in average price per unit due to the competitive launch in April 2015 of generic levo-leucovorin product - see Note 3(f), partially offset by a slight increase in units sold.

FOLOTYN revenue decrease is due to a decrease in units sold in the current period, partially offset by an increase in our net average sales price per unit.

ZEVALIN revenue decrease is due to a large decline in units sold in the current period in the U.S. and ex-U.S. territories. In November 2015, we entered into an out-license agreement for ZEVALIN within various ex-U.S. territories that contributed to our product revenue decline, particularly in Japan (see Note 11).

MARQIBO revenue remained consistent with the prior year period. We experienced a slight decline in units sold in the current period that was offset by a slight increase in our average price per unit.

BELEODAQ revenue increased as a result of an increase in the units sold in the current period and an increase in the average net sales price per unit.

EVOMELA revenue in the current period is a result of our launch of this product during April 2016, thus there were no sales for this product in the prior year period.

License fees and service revenue. Our license fees and service revenue decreased due to $9.7 million of upfront proceeds received in the prior year period for our out-licenses of ZEVALIN, MARQIBO, and EVOMELA (see Note 12), which did not recur in the current year period, partially offset by an increase of $2.4 million in fees from our co-promotion with Eagle Pharmaceuticals (seeNote 13) which was not present in the prior year period, and an increase of $0.5 million from out-license royalties.

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Operating Expenses

	Three months ended June 30,
	2016		2015		$ Change			% Change
	($ in millions)
Operating costs and expenses:
Cost of product sales (excludes amortization of intangible assets)	$	5.6	$	6.0	$	(0.4	)	(6.7	)%
Cost of service revenue	2.2		—		2.2			100.0	%
Selling, general and administrative	27.6		22.5		5.1			22.7	%
Research and development	14.3		9.6		4.7			49.0	%
Amortization and impairment of intangible assets	6.3		6.9		(0.6		)	(8.7	)%
Total operating costs and expenses	$	56.0	$	45.0	$	11.0		24.4	%

Cost of Product Sales. Cost of product sales declined with the decrease in revenue in the current period, as well as the impact of product sales mix between the periods.

Cost of Service Revenue. Cost of service revenue exclusively relates to our allocated commercial and marketing expenses (from "selling, general, and administrative" expenses) for the promotion and sale of Eagle's products (see Note 13).

Selling, General and Administrative. Selling, general and administrative expenses increased by $5.1 million, largely driven by an increase in legal expenses related to patent litigation matters in the current quarter, partially offset by a $2.2 million allocation of our sales personnel costs (and other reimbursable commercial and marketing costs) to "cost of service revenue" that are assigned to marketing Eagle's products (see Note 13).

Research and Development. Research and development expenses increased by $4.7 million due to increases in costs associated with our SPI-2012 Phase 3 clinical trial, as well as various other research and development initiatives and activities.

Amortization and Impairment of Intangible Assets. Amortization expense decreased $0.6 million in the current year due to the sale of certain ex-U.S. ZEVALIN rights to Mundipharma in November 2015 (see Note 11), and accelerated amortization of our FUSILEV distribution rights, which were fully amortized as of December 31, 2015 (see Note 3(f)).

Total Other Expenses

	Three months ended June 30,
	2016			2015			$ Change		% Change
	($ in millions)
Total other expenses	$	(2.3	)	$	(2.3	)	$	—	—	%

Total other expenses remained consistent in the current period versus the prior year period.

Benefit for Income Taxes

	Three months ended June 30,
	2016		2015		$ Change		% Change
	($ in millions)
Benefit for income taxes	$	0.1	$	0.0	$	0.1	100.0	%

Our current period benefit for income taxes of $0.1 million is primarily due to tax allocation rules under GAAP that require us to allocate the provision for income taxes between continuing operations and other categories of earnings, such as other comprehensive income. This results in a presented benefit in the current period, despite our minimum tax obligations.

SIX MONTHS ENDEDJUNE 30,2016 VERSUS 2015

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Total Revenues

	Six months ended June 30,
	2016		2015		$ Change			% Change
	($ in millions)
Product sales, net:
FUSILEV	$	25.7	$	34.5	$	(8.8	)	(25.5	)%
FOLOTYN	24.3		21.5		$	2.8		13.0	%
ZEVALIN	5.6		9.0		$	(3.4	)	(37.8	)%
MARQIBO	3.0		4.0		$	(1.0	)	(25.0	)%
BELEODAQ	6.7		4.5		$	2.2		48.9	%
EVOMELA	0.9		—		$	0.9		100.0	%
	$	66.2	$	73.5	$	(7.3	)	(9.9	)%
License fees and service revenue	11.7		10.0		1.7			17.0	%
Total revenues	$	77.9	$	83.5	$	(5.6	)	(6.7	)%

Product sales, net. To derive net product sales, gross product revenues in each period are reduced by management's latest estimated provisions for (i) product returns, (ii) government chargebacks, (iii) prompt pay discounts, (iv) commercial rebates, (v) Medicaid rebates, and (vi) distribution, data, and GPO administrative fees. Management considers various factors in the determination of these provisions, which are described in more detail within "Critical Accounting Policies and Estimates" of our 2015 Form 10-K.

FUSILEV revenue decrease is attributable to a modest decline in our unit sales due to the competitive launch in April 2015 of generic levo-leucovorin product - see Note 3(f), in addition to a modest decline in our net average sales price per unit.

FOLOTYN revenue increase is due to a significant increase in units sold in the current period, in addition to an increase in our net average sales price per unit.

ZEVALIN revenue decrease is due to a large decline in units sold in the current period in the U.S. and ex-U.S. territories. In November 2015, we entered into an out-license agreement for ZEVALIN within various ex-U.S. territories that contributed to our product revenue decline, particularly in Japan (see Note 11).

MARQIBO revenue decrease is due to a significant decline in units sold during the period. Our net average sales price per unit remained consistent with the prior year period.

BELEODAQ revenue increased as a result of an increase in the units sold during the period, in addition to an increase in our average net sales price per unit.

EVOMELA revenue in the current period is a result of our launch of this product during April 2016, thus there were no sales for this product in the prior year period.

License fees and service revenue. Our license fees and service revenue in the current period increased due to the following: (i) $6.0 million in upfront proceeds related to the out-license of ZEVALIN, FOLOTYN, MARQIBO, and BELEODAQ to Servier in the Canada territory (see Note 12); (ii) $4.3 million in fees from our co-promotion with Eagle Pharmaceuticals (seeNote 13), and (iii) an increase of $1.0 million from out-license royalties. These amounts are offset by $9.7 million of upfront proceeds received during the second quarter of 2015 for our out-licenses of ZEVALIN, MARQIBO, and EVOMELA, which did not reoccur in the current year period.

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Operating Expenses

	Six months ended June 30,
	2016		2015		$ Change			% Change
	($ in millions)
Operating costs and expenses:
Cost of product sales (excludes amortization and impairment charges of intangible assets)	$	11.2	$	13.1	$	(1.9	)	(14.5	)%
Cost of service revenue	3.5		—		3.5			100.0	%
Selling, general and administrative	49.6		45.9		3.7			8.1	%
Research and development	29.7		25.4		4.3			16.9	%
Amortization and impairment of intangible assets	12.1		20.9		(8.8		)	(42.1	)%
Total operating costs and expenses	$	106.1	$	105.3	$	0.8		0.8	%

Cost of Product Sales. Cost of product sales declined with the decrease in revenue in the current period, as well as the impact of product sales mix between the periods.

Cost of Service Revenue. Cost of service revenue exclusively relates to our allocated commercial and marketing expenses (from "selling, general, and administrative" expenses) for the promotion and sale of Eagle's products (see Note 13).

Selling, General and Administrative. Selling, general and administrative expenses increased by $3.7 million, largely driven by an increase in legal expenses related to patent litigation matters in the first half of 2016, partially offset by a $3.5 million allocation of our sales personnel costs (and other reimbursable commercial and marketing costs) to "cost of service revenue" that are assigned to marketing Eagle's products (see Note 13).

Research and Development. Research and development expenses increased by $4.3 million due to increases in clinical trial costs associated with the SPI-2012 Phase 3 clinical trial, as well as various other increases in clinical and development activities and a $2.7 million research and development milestone reached in the current period (see Note 16(b)(xii)).

Amortization and Impairment of Intangible Assets. Amortization expense decreased by $8.8 million in the current year due to (i) $7.2 million impairment charge (non-cash) in the first quarter of 2015 for our FUSILEV distribution rights (see Note 3(f)), and (ii) the sale of certain ex-U.S. ZEVALIN rights to Mundipharma in November 2015 (see Note 11), and (iii) accelerated amortization of our FUSILEV distribution rights, which was fully amortized as of December 31, 2015 (see Note 3(f)).

Total Other Expenses

	Six months ended June 30,
	2016			2015			$ Change		% Change
	($ in millions)
Total other expenses	$	(5.4	)	$	(6.1	)	$	0.7	11.5	%

Total other expenses decreased by $0.7 million primarily due to a $1.5 million unfavorable currency exchange rate translation adjustment (i.e., unrealized loss) to the U.S. dollar for amounts we hold in ex-U.S. bank accounts, partially offset by a $0.7 million increase in the contingent consideration valuation related to our MARQIBO and EVOMELA products (see Note 9), and a $0.2 million increase in interest expense on our Convertible Senior Notes (see Note 14).

Benefit (Provision) for Income Taxes

	Six months ended June 30,
	2016		2015			$ Change		% Change
	($ in millions)
Benefit/(provision) for income taxes	$	0.2	$	(0.1	)	$	0.3	300.0	%

41

Our current period benefit for income taxes of $0.2 million is primarily due to tax allocation rules under GAAP that require us to allocate the provision for income taxes between continuing operations and other categories of earnings, such as other comprehensive income. This results in a presented benefit in the current period, despite our minimum tax obligations. Our prior period provision for income taxes primarily represents our minimum tax obligations.

LIQUIDITY AND CAPITAL RESOURCES

	June 30, 2016		December 31, 2015		June 30, 2015
	(in thousands, except financial metrics data)
Cash, cash equivalents and marketable securities	$	156,006	$	139,986	$	145,579
Accounts receivable, net	$	34,319	$	30,384	$	41,684
Total current assets	$	206,652	$	190,625	$	207,162
Total current liabilities	$	58,321	$	76,343	$	90,503
Working capital surplus (a)	$	148,331	$	114,282	$	116,659
Current ratio (b)	3.5		2.5		2.3

(a) Total current assets at period end minus total current liabilities at period end.

(b) Total current assets at period end divided by total current liabilities at period end.

Net Cash (Used In) Provided by Operating Activities

Net cash used in operating activities was $24.1 million for the six months ended June 30, 2016, as compared to cash provided by operating activities of $13.0 million in the prior year period. For the six months ended June 30, 2016 and 2015, our cash collections from customers totaled $82.3 million and $148.8 million, respectively, representing 105.8% and 178.0% of reported net revenue for the same years. For the six months ended June 30, 2016 and 2015, cash payments to our employees, vendors, and end-users for products, services, chargebacks, and rebates totaled $112.0 million and $140.8 million, respectively.

Net Cash Used in Investing Activities

Net cash used in investing activities of $0.1 million for the six months ended June 30, 2016 primarily relates to $0.1 million of property, plant and equipment purchases, as compared to $0.2 million for the same in the prior year period.

Net Cash Provided by Financing Activities

Net cash provided by financing activities was $40.3 million for the six months ended June 30, 2016, as compared to cash provided by financing activities of $0.8 million in the prior year period. Our cash provided by financing activities during the first half of 2016, primarily relates to: (i) $45.1 million of proceeds received from common shares sold under an at-market-issuance sales agreement, (ii) $0.2 million of proceeds from the issuance of common stock as a result of the exercise of employee stock options, and (iii) $0.4 million of proceeds from employee stock purchases under our employee stock purchase plan. These amounts were partially offset by our $0.7 million purchase and retirement of restricted stock (at our employees’ election), in order to meet their federal and state tax obligations at the time of stock vesting and $4.7 million related to the cash payment in April 2016 for the achievement of the EVOMELA milestone.

Convertible Senior Notes Due 2018

On December 17, 2013, we entered into an agreement for the sale of $120 million aggregate principal amount of 2.75% Convertible Senior Notes due December 2018 (the “2018 Convertible Notes”). The 2018 Convertible Notes are convertible into shares of our common stock at a conversion rate of 95 shares per $1,000 principal amount of the 2018 Convertible Notes, totaling 11.4 million common shares if fully converted. The in-the-money conversion price is equivalent to $10.53 per common share. The conversion rate and conversion price are subject to adjustment under certain limited circumstances. As of June 30, 2016, we may settle conversions of the 2018 Convertible Notes by paying or delivering, as the case may be, cash, shares of our common stock, or a combination of cash and shares, at our election.

The 2018 Convertible Notes bear interest at a rate of 2.75% per year, payable semiannually in arrears on June 15 and December 15 of each year, beginning on June 15, 2014. The 2018 Convertible Notes will mature and become payable on December 15, 2018, subject to earlier conversion into common stock at the holders’ option.

42

The sale of the 2018 Convertible Notes closed on December 23, 2013 and our net proceeds were $115.4 million, after deducting banker and professional fees of $4.6 million. We used a portion of these proceeds to simultaneously enter into “bought call” and “sold warrant” transactions with Royal Bank of Canada (collectively, the “Note Hedge”). We recorded the Note Hedge on a net cost basis of $13.1 million, as a reduction to “additional paid-in capital” in our accompanying Condensed Consolidated Balance Sheets. Under applicable GAAP, the Note Hedge transaction is not expected to be marked-to-market through earnings or comprehensive income in future reporting periods.

Future Capital Requirements

We believe that the future growth of our business will depend on our ability to successfully develop and acquire new drugs for the treatment of cancer and successfully bring these drugs to market.

The timing and amount of our future capital requirements will depend on many factors, including:

• the need for additional capital to fund future development programs;

• the need for additional capital to fund strategic acquisitions;

• the need for additional capital to fund licensing arrangements;

• our requirement for additional information technology infrastructure and systems; and

• adverse outcomes from potential litigation and the cost to defend such litigation.

We believe that our $156 million in aggregate cash and equivalents, and marketable securities as of June 30, 2016 will allow us to fund our current and planned operations for at least the next twelve months. However, we may seek additional capital through the sale of debt or equity securities (see Note 18), if necessary, especially in conjunction with opportunistic acquisitions or licensing arrangements. We may be unable to obtain such additional capital when needed, or on terms favorable to us or our current stockholders and convertible senior note holders.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements (except for operating leases) that provide financing, liquidity, market or credit risk support, or involve derivatives. In addition, we have no arrangements that may expose us to liability that are not expressly reflected in the accompanying Condensed Consolidated Financial Statements and/or notes thereto.

As of June 30, 2016, we did not have any relationships with unconsolidated entities or financial partnerships, often referred to as “structured finance” or “special purpose entities,” established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. As such, we are not subject to any material financing, liquidity, market or credit risk that could arise if we had engaged in such relationships.

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

In the normal course of business, our operations are exposed to risks associated with fluctuations in interest rates and foreign currency exchange rates.

The primary objective of our investment activities is to preserve principal, while at the same time maximizing yields without significantly increasing risk. We do not utilize hedging contracts or similar instruments. Because of our ability to generally redeem these investments at par at short notice and without penalty, changes in interest rates would have an immaterial effect on the fair value of these investments. If a 10% change in interest rates were to have occurred on June 30, 2016, any decline in the fair value of our investments would not be material in the context of our accompanying Condensed Consolidated Financial Statements. In addition, we are exposed to certain market risks associated with credit ratings of corporations whose corporate bonds we may purchase from time to time. If these companies were to experience a significant detrimental change in their credit ratings, the fair market value of such corporate bonds may significantly decrease. If these companies were to default on these corporate bonds, we may lose part, or all, of our principal. We believe that we effectively manage this market risk by diversifying our investments, and investing in highly rated securities.

We are exposed to foreign currency exchange rate fluctuations relating to payments we make to vendors, suppliers and license partners using foreign currencies. In particular, some of our obligations are incurred in Euros and Yen. We mitigate such risk by maintaining a limited portion of our cash in Euros and Yen.

ITEM 4.    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as of June 30, 2016. The term “disclosure controls and procedures,” as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. These include controls and procedures that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company’s management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

Based on the evaluation of our disclosure controls and procedures as of June 30, 2016, our chief executive officer and chief financial officer concluded that, as of that date, our disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the second quarter of 2016 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Limitations of the Effectiveness of Internal Controls

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the internal control system are met. Because of inherent limitations in any control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within a company have been detected. We are continuously seeking to improve the efficiency and effectiveness of our operations and of our internal controls.

PART II. OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

We are involved with various legal matters arising in the ordinary course of business. We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are reviewed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. Although the ultimate resolution of these various matters cannot be determined at this time, we do not believe that such matters, individually or in the aggregate, will have a material adverse effect on our condensed consolidated results of operations, cash flows or financial condition.

43

Certain of the legal proceedings in which we are involved are discussed in Note 16, “Commitments and Contingencies,” to our accompanying Condensed Consolidated Financial Statements, and are hereby incorporated by reference.

ITEM 1A.    RISK FACTORS

As of the date of this filing, there have been no material changes to the RISK FACTORS included in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on March 14, 2016.

ITEM 2.UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On April 26, 2016, pursuant to the terms of a License, Development, and Supply Agreement with Hanmi Pharmaceutical Company, Ltd. dated October 8, 2014 (as amended), and as a result of a milestone payment obligation triggered based on initial patient dosing in January 2016 as part of our Phase III study for SPI-2012, we issued an aggregate of 318,750 shares of our common stock to Hanmi and remitted $0.4 million to the IRS on Hanmi’s behalf for related tax obligations We received no cash proceeds in connection with this issuance. We issued such shares of common stock without registration under the Securities Act in reliance upon the exemption from registration provided under Section 4(2) of the Securities Act. The foregoing transaction did not involve any public offering; we made no solicitation in connection with the issuance; we obtained representations from Hanmi regarding its investment intent, experience, “accredited investor” status and sophistication; and Hanmi had access to adequate information about us in order to make an informed investment decision. Additionally, at the time of the issuance, the shares of common stock were deemed to be restricted securities under the Securities Act and the certificates evidencing such shares bear a legend to that effect. No underwriting discounts or commissions were paid in conjunction with the issuance.

ITEM 6.    EXHIBITS

Exhibit Number		Description
10.1+		License Agreement, dated March 8, 2013, by and between Spectrum Pharmaceuticals Inc. and Cydex Pharmaceuticals, Inc. Confidential portions omitted and filed separately with the U.S. Securities and Exchange Commission pursuant to Rule 24b-2 promulgated under the Securities Exchange Act of 1934, as amended.
31.1+		Certification of Principal Executive Officer, pursuant to Rule 13a-14(a)/15d-14(a) promulgated under the Securities Exchange Act of 1934.
31.2+		Certification of Principal Financial Officer, pursuant to Rule 13a-14(a)/15d-14(a) promulgated under the Securities Exchange Act of 1934.
32.1*		Certification of Principal Executive Officer pursuant to Rule 13a-14(b)/15d-14(b) promulgated under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.
32.2*		Certification of Principal Financial Officer pursuant to Rule 13a-14(b)/15d-14(b) promulgated under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350.
101.INS+		XBRL Instance Document.
101.SCH+		XBRL Taxonomy Extension Schema Document.
101.CAL+		XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF+		XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB+		XBRL Taxonomy Extension Label Linkbase Document.
101.PRE+		XBRL Taxonomy Extension Presentation Linkbase Document.
+	Filed herewith.
*	Furnished herewith.

44

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		SPECTRUM PHARMACEUTICALS, INC.
Date:	August 9, 2016	By:	/s/ Kurt A. Gustafson
			Kurt A. Gustafson
			Executive Vice President and Chief Financial Officer
			(Authorized Signatory and Principal Financial and Accounting Officer)

45

EX-10.1

Exhibit 10.1

CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT MARKED WITH [***] HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT, AS AMENDED.

LICENSE AGREEMENT

THIS LICENSE AGREEMENT (this “Agreement”) is made this 8th day of March, 2013 (the “Effective Date”) between:

CYDEX PHARMACEUTICALS, INC., a Delaware corporation with offices at 11119 North Torrey Pines Road, Suite 200, La Jolla, CA 92037 (“CyDex”); and

SPECTRUM PHARMACEUTICALS, INC., a Delaware corporation with offices at 11500 S. Eastern Ave., Ste. 240, Henderson, NV 89052 (“Spectrum”).

RECITALS

WHEREAS,CyDex is engaged in the business of developing and commercializing novel drug delivery technologies designed to enhance the solubility and effectiveness of existing and development-stage drugs;

WHEREAS, CyDex is the exclusive worldwide licensee of Captisol®, a patented drug formulation system designed to enhance the solubility and stability of drugs;

WHEREAS, CyDex has developed or obtained certain rights related to the Compound (defined below);

WHEREAS, Spectrum desires to obtain a license to use such patented drug formulation system for Captisol and such rights to the Compound for the development and commercialization of the Licensed Product (defined below) and CyDex is willing to grant such license to Spectrum under the terms and conditions set forth herein; and

WHEREAS,CyDex desires to sell Captisol® to Spectrum or its Contract Manufacturers (defined below), and Spectrum desires to obtain supplies of Captisol® from CyDex, for use in the Licensed Product, in accordance with the terms and conditions of that certain Supply Agreement between the parties of even date herewith (the “Supply Agreement”).

NOW, THEREFORE, in consideration of the following mutual promises and other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties, intending to be legally bound, agree as follows:

1.DEFINITIONS.

For the purposes of this Agreement, the following terms whether used in singular or plural form shall have the meanings as defined below:

“Affiliate” means, with respect to any party, any entity controlling, controlled by, or under common control with such party, during and for such time as such control exists. For these purposes, “control” shall

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refer to the ownership, directly or indirectly, of at least fifty percent (50%) of the voting securities or other ownership interest of the relevant entity.

“Annual Net Sales” means the aggregate Net Sales during a calendar year.

“Approvals” means, collectively the Marketing Approvals and Regulatory Approvals.

“Captisol” means Captisol®, also known scientifically as sulfobutylether β(beta) cyclodextrin, sodium salt, including all of its optical isomers, and salt, ester, and polymorphic forms.

“Captisol Data Package” means (a) all toxicology/safety and other scientific data owned, licensed or developed by CyDex and its Affiliates; and (b) all toxicology/safety and other scientific data owned, licensed or developed by the licensees or sublicensees of CyDex or its Affiliates or other Third Parties (to the extent permitted to be shared under this Agreement in the applicable license or other agreements between CyDex and/or its Affiliates and such licensees, sublicensees or other Third Parties), in each case of Captisol alone (and not in conjunction with a product formulation).

“Captisol Improvement” means any technology or improvement related to Captisol alone, including without limitation the formulation or uses of Captisol, whether or not patentable, that is developed by Spectrum or its Affiliates, solely or jointly with a Third Party. For clarity, Captisol Improvements shall not include technology or improvements which are related to the Compound and/or other non-Captisol components of the Licensed Product.

“Captisol Patents” means all patents and patent applications in the Territory which pertain to Captisol, other than the Licensed Product Patents, and which now or at any time during the Term are owned by or licensed to CyDex or any CyDex Affiliate with the right to sublicense, including any and all extensions, renewals, continuations, substitutions, continuations-in-part, divisions, patents-of-addition, reissues, reexaminations and/or supplementary protection certificates to any such patents. For avoidance of doubt, all intellectual property pertaining to the Licensed Product generated by Spectrum or its Affiliates or their Sublicensees during the Term of this Agreement shall be solely owned by Spectrum and shall not be part of the Captisol Patents. Set forth in Exhibit A attached hereto include, without limitation, a list of the Captisol Patents as of the Effective Date. Such Exhibit A may be updated by CyDex from time to time during the Term.

“Claim” has the meaning specified in Section 10.1.

“Clinical Grade Captisol” means Captisol which (a) has been manufactured under conditions of current good manufacturing practices for bulk excipients as set forth in U.S. Pharmacopoeia <1078> as of the Effective Date or any successor thereto, and (b) is for clinical trials for the Licensed Product.

“Combination Product” means a Licensed Product containing: (i) the Compound, and (ii) one or more other active pharmaceutical ingredients.

“Commercial Grade Captisol” means Captisol which (a) has been manufactured under conditions of current good manufacturing practices for bulk excipients as set forth in U.S. Pharmacopoeia <1078> as of the Effective Date or any successor thereto, and (b) is for commercial sale of the Licensed Product.

“Commercial Launch Date” means, in any particular country, the first commercial sale by Spectrum, its Affiliates or Sublicensees of the Licensed Product to a Third Party in a given regulatory jurisdiction after Approvals have been obtained in such jurisdiction. For avoidance of doubt, any transfer

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of the Licensed Product to a Third Party for preclinical, clinical or regulatory purposes shall not be deemed a first commercial sale.

“Commercially Reasonable Efforts” means the carrying out of obligations or tasks using efforts not less than the efforts a reasonably prudent company engaged in the development and commercialization of a pharmaceutical product having similar market potential, profit potential, or strategic value at a similar stage of its development or product life as the Licensed Product, would use based on conditions then prevailing and taking into account relevant commercial and economic factors.

“Compound” means that certain pharmaceutical compound known as melphalan, including all of its optical isomers, and salt, ester, and polymorphic forms.

“Confidential Information” has the meaning specified in Section 8.1.

“Contract Manufacturer” has the meaning specified in Section 2.4.

“Cover” (including variations thereof such as “Covered,” “Coverage,” or “Covering”) means that the manufacture, use, importation or sale of the Licensed Product to which such term is being applied would infringe a Valid Claim of a patent in the absence of a grant of rights under such patent. The determination of whether an item or process is Covered by a Valid Claim shall be made on a country–by-country basis.

“Disclosing Party” has the meaning specified in Section 8.1 hereof.

“DMF” means a Drug Master File for Captisol, as filed as of the Effective Date, or as hereafter updated from time to time during the Term, by CyDex with the FDA, and equivalent filings in other jurisdictions.

“FDA” means the United States Food and Drug Administration, or any successor thereto.

“Field” means all indications, including without limitation, all dosages, formulations, uses, and routes of administration for the Licensed Product.

“Indemnitee” has the meaning specified in Section 10.4.

“Indemnitor” has the meaning specified in Section 10.4.

“Licensed Patents” means, collectively, the Captisol Patents and the Licensed Product Patents.

“Licensed Product” means a pharmaceutical composition comprising the Compound and Captisol, which is Covered by the Licensed Patents or Product Know-How or Captisol Data Package.

“Licensed Product Patents” means all patents and patent applications in the Territory which Cover the use of Captisol with the Compound, other than the Captisol Patents, and which now or at any time during the Term are owned by or licensed to CyDex or any CyDex Affiliate with the right to sublicense, including any and all extensions, renewals, continuations, substitutions, continuations-in-part, divisions, patents-of-addition, reissues, reexaminations and/or supplementary protection certificates to any such patents. Licensed Product Patents further include all other patents and patent applications, other than the Captisol Patents, which are owned or licensed by CyDex before the Effective Date or at any time during the Term of this Agreement, and which are necessary to develop, manufacture, and commercialize the Licensed Product or which are necessary for Spectrum to exercise its license under this Agreement. Set forth in Exhibit B attached

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hereto is a list of the Licensed Product Patents as of the Effective Date. Such Exhibit B may be updated by CyDex from time to time during the Term.

“Losses” has the meaning set forth in Section 10.1.

“Major Markets” means the countries listed on Exhibit E.

“Marketing Approval” means final approval of an NDA by the FDA for the United States, or final approval of a comparable document filed with an equivalent health regulatory authority in any other country or in the European Union (using the centralized process or mutual recognition), including all required marketing, pricing or reimbursement approvals.

“NDA” means a New Drug Application, as defined in the United States Federal Food, Drug and Cosmetic Act and the regulations promulgated thereunder, or similar application filed with an equivalent regulatory body in another jurisdiction.

“Net Sales” means, with respect to a particular time period, the total amounts invoiced by Spectrum and its Affiliates and their Sublicensees for sales of the Licensed Product made during such time period to unaffiliated Third Parties, less the following deductions to the extent allowed or incurred with respect to such sales:

(a)    customary discounts, including cash, trade and quantity discounts, charge-back payments, fees for service, patient assistance discounts, administrative fees, and rebates granted to trade customers, government, and distributors; provided, however, such discounts shall be subject to audit pursuant to Section 5.3 below;

(b)    credits or allowances granted for damaged, outdated, spoiled, returned or rejected products or on account of retroactive price reductions;

(c)    freight, insurance and transportation charges (if separately identified on the invoice); and

(d)    taxes, tariffs, duties or other governmental charges (other than income taxes) levied on, absorbed or otherwise imposed on sales of the Licensed Product, as adjusted by any refunds.

Notwithstanding the foregoing, amounts invoiced by Spectrum and its Affiliates for the sale of the Licensed Product among Spectrum or its Affiliates for resale shall not be included in the computation of Net Sales. For purposes of determining Net Sales, a “sale” shall not include reasonable transfers or dispositions as samples for promotional or charitable purposes, or transfers or dispositions at no cost for preclinical, clinical or regulatory purposes. Notwithstanding anything otherwise specified herein, Net Sales shall be calculated in accordance with generally accepted accounting principles.

If a Licensed Product is sold or provided as part of a Combination Product, Net Sales shall be calculated by multiplying the Net Sales from the sale of Combination Products by the fraction A/B, where “A” is the fair market value of the Licensed Product containing the Compound as the only active pharmaceutical ingredient when supplied or priced separately and “B” is the fair market value of the Combination Product. If no market price is available for the Licensed Product (solely containing the Compound) when supplied or priced separately, fair market value shall be determined in good faith by the parties.

“Pfizer” has the meaning specified in Section 8.5.

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“Product Know-How” means information or data, including regulatory documentation, necessary for the manufacture, use, importation or sale of Licensed Products in the Field in the Territory, owned, licensed or generated by CyDex and its Affiliates, before and during the Term of this Agreement relating to the Compound and/or Captisol.

“Receiving Party” has the meaning specified in Section 8.1.

“Regulatory Approval” means, with respect to the Licensed Product in any country or jurisdiction, all approvals (including, where required, pricing and reimbursement approvals), registrations, licenses or authorizations from the relevant regulatory authority in a country or jurisdiction that is specific to the Licensed Product and necessary to market and sell such Licensed Product in such country or jurisdiction.

“Royalty Obligation Term” means, for each country within the Territory on a country-by-country basis, the time period commencing on the first Commercial Launch Date of the Licensed Product in such country and ending on the date that is the earlier of (i) the date that a Valid Claim no longer exists under the Licensed Patents in such country or (ii) the date a pharmaceutical product containing a [***] formulation of the Compound, other than Spectrum’s product licensed hereunder, receives regulatory approval in such country; but in either event is at least [***] ([***]) years after the Commercial Launch Date for such Licensed Product in such country. Notwithstanding the foregoing, if at any time no Valid Claim under the Licensed Patents exists in a country, and a pharmaceutical product containing a [***] formulation of the Compound (other than Spectrum’s product licensed hereunder) receives regulatory approval and launches commercially in such country for the same indication as Spectrum’s product licensed hereunder, then the royalty rate shall immediately be reduced [***] for such country for the remainder of the Royalty Obligation Term).

“SEC” has the meaning specified in Section 8.3.

“Specifications” means the specifications for Captisol set forth in Exhibit C hereto, as such may be amended from time to time.

“Sublicensees” has the meaning specified in Section 2.3.

“Term” has the meaning specified in Section 13.1.

“Territory” means the entire world.

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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“Third Party” means any person or entity other than CyDex or Spectrum or an Affiliate of either of them.

“Valid Claim” means (i) a claim in any unexpired, issued patent which has not been irrevocably abandoned or held to be invalid or unenforceable by a non-appealed or unappealable decision of a court or other authority of competent jurisdiction, which is not admitted to be invalid through disclaimer or dedication to the public, and which Covers the Licensed Product, or (ii) regulatory exclusivity, such as orphan drug exclusivity, covering the Licensed Product.

2.GRANT OF RIGHTS.

2.1License Grants from CyDex to Spectrum.

(a)    Licensed Patents. Subject to the terms and conditions of this Agreement, CyDex hereby grants to Spectrum an exclusive, nontransferable (except with respect to the assignment provision in Section 14.14) license during the Term under the Licensed Patents, solely to research, develop, make, have made, import, use, offer for sale and sellthe Licensed Product in the Territory in the Field. Notwithstanding the foregoing, to the extent that any Licensed Patents are licensed to CyDex or its Affiliates by a Third Party on a non-exclusive basis, the license granted to Spectrum in the foregoing sentence shall be exclusive as to CyDex and non-exclusive as to any Third Party. Spectrum may not sublicense the Licensed Patents, except as expressly set forth in Section 2.3 below.

(b)    Know-How License. Subject to the terms and conditions of this Agreement, CyDex hereby grants to Spectrum an exclusive, nontransferable (except with respect to the assignment provision in Section 14.14) license during the Term under CyDex’s rights in and to the Captisol Data Package and Product Know-How, solely to research, develop, make, have made, import, use, offer for sale and sellthe Licensed Product in the Territory in the Field. Notwithstanding the foregoing, to the extent that any Captisol Data Package and Product Know-How are licensed to CyDex or its Affiliates by a Third Party on a non-exclusive basis, the license granted to Spectrum in the foregoing sentence shall be exclusive as to CyDex and non-exclusive as to any Third Party. Spectrum may not sublicense its rights to the Captisol Data Package or Product Know-How, except as expressly set forth in Section 2.3 below.

(c)    Scope of Licenses. Unless otherwise provided in this Agreement or the Supply Agreement, CyDex grants no rights to Spectrum to manufacture, import, sell or offer for sale bulk Captisol.

2.2    Grant of License from Spectrum to CyDex. Spectrum shall provide prompt notice of any and all Captisol Improvements to CyDex. Spectrum hereby grants to CyDex a nonexclusive, transferable, perpetual, worldwide and royalty-free license, with the right to grant sublicenses (through multiple tiers of sublicensees), under Spectrum’s and its Affiliates’ rights in and to Captisol Improvements to develop, make, have made, use, market, distribute, import, sell and offer for sale Captisol.

2.3    Sublicensing. Spectrum shall have the right to grant sublicenses to any Third Party (collectively “Sublicensees”) under the licenses granted to Spectrum pursuant to Section 2.1; provided, however, Spectrum shall promptly notify CyDex of each sublicense without unreasonable delay following any such grant. Spectrum shall ensure that all of its Sublicensees will comply with the terms and conditions of this Agreement and Spectrum shall remain fully responsible for the compliance by its Sublicensees with the terms and conditions of this Agreement as if such Sublicensees were Spectrum hereunder.

2.4    Contracting. Spectrum may manufacture the Licensed Product or contract the manufacture of the Licensed Product with reputable Third Party manufacturers inspected by FDA or equivalent foreign

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regulatory authorities (each a “Contract Manufacturer”). To the extent necessary to engage a Contract Manufacturer for manufacturing the Licensed Product, Spectrum shall be permitted under this Agreement to grant any such Contract Manufacturer a sublicense under the licenses granted to Spectrum pursuant to Section 2.1 solely for such purposes. Spectrum shall ensure that all of its Contract Manufacturers will comply with the terms and conditions of this Agreement and Spectrum shall remain fully responsible for the compliance by such Contract Manufacturers with the terms and conditions of this Agreement as if its Contract Manufacturers were Spectrum hereunder.

2.5    Technology Transfer. Within thirty (30) days after the Effective Date, CyDex shall transfer to Spectrum the IND for the Licensed Product and clinical trial materials of the Licensed Product and provide Spectrum with a technology transfer package, which shall include the Product Know-How and the Captisol Data Package, related to the excipients, formulation, filling, packaging, testing and stability of the Licensed Product. CyDex will update such package at least [***] with any data or know-how developed or licensed by CyDex during the Term. CyDex shall also, for a period up to the NDA filing and in the preparation for pre-approval inspection of the Third Party manufacturers and laboratories, make its personnel available to Spectrum and its Contract Manufacturers to respond to informational inquiries and provide technical assistance related to the Product Know-How and the Captisol Data Package. After CyDex personnel have spent [***] ([***]) hours, excluding travel time, providing such assistance, Spectrum shall compensate CyDex at the rate of US$[***] per hour for the time of CyDex personnel incurred to provide such services; provided, that CyDex shall provide reasonable telephonic consultation at [***] to Spectrum. Such technology transfer shall not include information related to the manufacture of bulk Captisol.

2.6    Negative Covenant. During the Term of this Agreement, CyDex and its Affiliates shall not [***].

3.MANUFACTURE AND SUPPLY OF CAPTISOL.        

The provisions of the Supply Agreement and any related quality agreement shall govern the manufacture and supply of Captisol for use in the formulation of the Licensed Product.

4.COMPENSATION.

4.1    Payments and Royalties for Licenses.    

(a)    One-Time Fee. Within [***] ([***]) business days after the Effective Date, Spectrum shall pay to CyDex a non-refundable, one-time fee of Three Million Dollars (US$3,000,000) in partial consideration of the rights granted Spectrum under this Agreement.

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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(b)    Milestone Payments. Within [***] ([***]) days following the occurrence of each of the milestone events listed below with respect to the Licensed Product, Spectrum shall provide written notice to CyDex of the achievement of such milestone event, and within [***] ([***]) days of the occurrence of each of the milestone events, pay to CyDex the applicable non-refundable milestone fee listed next to each such event in further consideration of the rights granted Spectrum under this Agreement. The milestone payments (each payable only one time regardless of the number of times achieved by the Licensed Product and regardless of the number of the Licensed Products there may be) are as follows:

	Milestone	Milestone Payment
(i)	Upon receipt of the first Marketing Approval from the FDA	US$6,000,000
(ii)	Annual Net Sales in the Territory exceed US$[***]	US$[***]
(iii)	Annual Net Sales in the Territory exceed US$[***]	US$[***]
(iv)	Annual Net Sales in the Territory exceed US$[***]	US$[***]

(c)    Royalties.

(i)    In addition to amounts payable pursuant to Sections 4.1(a) and 4.1(b) above, Spectrum shall make royalty payments to CyDex during the Royalty Obligation Term on a calendar [***] basis, in amounts equal to 20.0% of the applicable Net Sales during such calendar[***] arising from the sale of the Licensed Product in the Territory.

(ii)    All royalties payable to CyDex pursuant to this Section 4.1(c) shall be due and payable within [***] ([***]) days after the conclusion of each calendar [***].

(iii)    If additional rights or licenses are required from any Third Party or Third Parties to develop and commercialize the Licensed Product in any jurisdiction within the Territory, Spectrum shall be entitled to deduct [***] ([***]) of all commercially reasonable payments, including any milestone payments and royalty payments, made to such Third Party or Third Parties to acquire such rights and licenses, from the payments earned by CyDex for that jurisdiction within the Territory, including all milestone and royalty payments specified in Sections 4.1(b) and 4.1(c) above; provided, however, any deduction by Spectrum shall not exceed [***] ([***]) of the payments for a given jurisdiction then earned by CyDex at one time, and any reduction to royalty payments in a calendar [***] shall not exceed [***] ([***]) of the applicable Net Sales in any given jurisdiction. In the event that, for a calendar [***], Spectrum is unable to deduct all payments it is entitled to deduct, any remaining portion of the deduction Spectrum is entitled to will be used toward any future payments earned by and due to CyDex pursuant to Sections 4.1(b) and 4.1(c) until the total deduction by Spectrum reaches [***] ([***]) of all payments made by Spectrum to the Third Party or Third Parties for a given jurisdiction. 

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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4.2    Currency. All amounts due hereunder are stated in, and shall be paid in, U.S. dollars. Net Sales based on foreign revenue will be converted to U.S. dollars at the rate of exchange published in The Wall Street Journal, Eastern U.S. Edition on the last day of each calendar [***]. Spectrum shall provide CyDex, together with each royalty payment owed pursuant to Section 4.1(c) above, a schedule detailing the calculation of Net Sales resulting from the conversion of foreign revenue to U.S. dollars as set forth herein.

4.3    Taxes.

(a)    Taxes on Income. Each Party shall be solely responsible for the payment of all taxes imposed on its share of income arising directly or indirectly from the efforts of the Parties under this Agreement or the Supply Agreement.

(b)    Tax Cooperation. The parties agree to cooperate with one another and use reasonable efforts to avoid or reduce tax withholding or similar obligations in respect of royalties, milestone payments, and other payments made by Spectrum to CyDex under this Agreement or the Supply Agreement. To the extent Spectrum is required to deduct and withhold taxes on any payment to CyDex, Spectrum shall pay the amounts of such taxes to the proper governmental authority in a timely manner and promptly transmit to CyDex an official tax certificate or other evidence of such withholding sufficient to enable CyDex to claim such payment of taxes. CyDex shall provide Spectrum any tax forms that may be reasonably necessary in order for Spectrum to not withhold tax or to withhold tax at a reduced rate under an applicable bilateral income tax treaty. CyDex shall use reasonable efforts to provide any such tax forms to Spectrum at least [***] ([***]) days prior to the due date for any payment for which CyDex desires that Spectrum apply a reduced withholding rate. Each party shall provide the other with reasonable assistance to enable the recovery, as permitted by applicable law, of withholding taxes, value added taxes, or similar obligations resulting from payments made under this Agreement, such recovery to be for the benefit of the party bearing such withholding tax or value added tax.

4.4    Late Payments. Unpaid balances shall accrue interest, from due date until paid, at a rate equal to the prime rate, as reported in The Wall Street Journal, Eastern U.S. Edition, on the date such payment is due, plus an additional [***] ([***]), unless such unpaid balance is subject to a reasonable, good faith dispute by Spectrum.

5.RECORDS; REPORTS; AUDIT.

5.1    Records. Spectrum shall, and shall require its Affiliates and Sublicensees to maintain accurate records relating to Net Sales.

5.2    Reports. UponCyDex’s request, Spectrum shall update CyDex in writing regarding development and commercial activities with respect to the Licensed Product but not more often than [***].

5.3    Audit. Upon reasonable prior notice, such records shall be available during regular business hours for a period of [***] ([***]) years from the end of the calendar year to which they pertain for examination, and not more often than [***] each calendar year, by an independent certified public accountant selected by CyDex and reasonably acceptable to Spectrum, for the sole

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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purpose of verifying the accuracy of the financial reports furnished by Spectrum pursuant to this Agreement. Any such auditor shall not disclose Spectrum’s Confidential Information, except to the extent such disclosure is necessary to verify the accuracy of the financial reports furnished by Spectrum or the amount of payments due by Spectrum under this Agreement. Any amounts shown to be owed but unpaid shall be paid within [***] ([***]) days from the accountant’s report from the original due date, plus interest accrued thereon (from the applicable original due date) at the rate set forth in Section 4.4 above. Any amounts shown to have been overpaid shall be refunded within [***] ([***]) days. CyDex shall bear the full cost of such audit unless such audit discloses an underpayment by Spectrum of more than [***] ([***]) of the total amount due, in which case Spectrum shall bear the full cost of such audit.

6.DEVELOPMENT AND COMMERCIALIZATION BY SPECTRUM.

6.1    Diligence. Spectrum shall (i) use at least Commercially Reasonable Efforts, and shall further require its Affiliates and Sublicensees to use at least Commercially Reasonable Efforts, to develop the Licensed Product, and to commercialize the Licensed Product following Approvals of the Licensed Product, and (ii) comply with the requirements set forth in Exhibit D hereto. For the avoidance of doubt, in the event of a conflict between subparts (i) and (ii), Spectrum shall use whichever efforts are greater.

6.2    Costs and Expenses. Other than those specified in this Agreement, [***].

6.3    Right of Reference. Spectrum shall have the right to reference the DMF solely in connection Spectrum’s regulatory filings submitted in connection with obtaining Regulatory Approval for the Licensed Product.

6.4    Access to Spectrum’s Data. In connection with CyDex’s development and commercialization of Captisol or for fulfilling its obligations under this Agreement, CyDex shall have the right to reference and utilize all toxicology/safety and other scientific data developed on Captisol alone (and not in conjunction with a product formulation) by Spectrum, its Sublicensees or Affiliates, [***]. Upon written request by CyDex, Spectrum shall either provide CyDex with a copy of all such data or shall make such data accessible to CyDex at such times and locations mutually agreed upon by the parties; provided, that CyDex may include such data in the drug master file related to Captisol but shall not selectively share the data with other Captisol licensees.

7.REGULATORY MATTERS.

7.1    Captisol Information Submitted for Regulatory Review. Except as otherwise set forth herein, Spectrum shall be solely responsible for all communications with regulatory agencies in connection with the Licensed Product. Notwithstanding the foregoing, Spectrum shall provide CyDex with (a) copies of the portions of all regulatory submissions containing Captisol data alone (and not in conjunction with any product formulation) [***] ([***]) days prior to submission and shall use Commercially Reasonable Efforts to incorporate CyDex’s comments on the same, and (b) notice of meetings with the FDA regarding the Licensed Product prior to the occurrence of any such meetings.

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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7.2    Material Safety. CyDex shall provide Spectrum, in writing, from time to time, with (a) relevant information currently known to it regarding handling precautions, toxicity and hazards with respect to Captisol, and (b) the then-current material safety data sheet for Captisol. Notwithstanding the foregoing or anything in this Agreement to the contrary, Spectrum is solely responsible for (i) use of all documentation provided by CyDex, including without limitation, use in any regulatory submission to the FDA or any other regulatory agency in the Territory, (ii) document control and retention, and (iii) determining the suitability of any documentation provided by CyDex hereunder for use in any regulatory submission.

7.3    Adverse Event Reporting. Either party shall adhere, and shall require that its Affiliates, Sublicensees, co-marketers and distributors adhere, to all requirements of applicable law and regulations that relate to the reporting and investigation of any adverse event. In the event that either party becomes aware of any adverse event relating to either the Licensed Product or Captisol, the party shall timely inform the other party of any such adverse event.

7.4    Quality Agreement. Within [***] ([***]) days of the Effective Date, the parties shall enter into a quality agreement containing provisions, in addition to the provisions customary for quality agreement, customary pharmacovigilance provisions including, without limitation, related to sharing of adverse event and other clinically significant information regarding Licensed Product or Captisol.

8.CONFIDENTIALITY.

8.1    Definition. Spectrum and CyDex each recognizes that, during the Term, it may be necessary for a party (the “Disclosing Party”) to provide Confidential Information (as defined herein) to the other party (the “Receiving Party”) that is highly valuable, the disclosure of which would be highly prejudicial to such party. The disclosure and use of Confidential Information will be governed by the provisions of this Section 8. Neither Spectrum nor CyDex shall use the other’s Confidential Information except as expressly permitted in this Agreement. For purposes of this Agreement, “Confidential Information” means all information disclosed by the Disclosing Party to the Receiving Party and designated in writing by the Disclosing Party as “Confidential” (or equivalent), and all material disclosed orally which is declared to be confidential by the Disclosing Party and confirmed in a writing delivered to the Receiving Party within [***] ([***]) days of such disclosure; provided, however, the foregoing notwithstanding, Confidential Information orally disclosed by or on behalf of the Disclosing Party that a reasonable person would understand to be confidential or proprietary in nature shall be treated as Confidential Information, even if such Confidential Information is not subsequently reduced to a tangible form and delivered to the Receiving Party. Confidential Information shall include, but not be limited to, product specifications, data, know-how, formulations, product concepts, sample materials, business and technical information, financial data, batch records, trade secrets, processes, techniques, algorithms, programs, designs, drawings, and any other information related to a party’s present or future products, sales, suppliers, customers, employees, investors or business. Without limiting the generality of the foregoing, CyDex’s Confidential Information includes all materials provided as part of the Captisol Data Package and Product Know-How.

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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8.2    Obligation. CyDex and Spectrum agree that they will disclose the other’s Confidential Information to its own officers, employees, consultants and agents only if and to the extent necessary to carry out their respective responsibilities under this Agreement or in accordance with the exercise of their rights under this Agreement, and such disclosure shall be limited to the maximum extent possible consistent with such responsibilities and rights. Neither party shall disclose Confidential Information of the other to any Third Party without the other’s prior written consent, and any such disclosure to a Third Party shall be pursuant to the terms of a non-disclosure agreement no less restrictive than this Section 8. Each party shall take such action to preserve the confidentiality of each other’s Confidential Information as it would customarily take to preserve the confidentiality of its own Confidential Information (but in no event less than a reasonable standard of care). Unless otherwise specified in this Agreement and subject to terms and conditions in this Agreement, each party, upon the other’s request, will return all the Confidential Information disclosed to the other party pursuant to this Agreement, including all copies and extracts of documents, within [***] ([***]) days of the request, and in any event, promptly following the termination of this Agreement, except that the receiving party may retain (i) one (1) copy for archival purposes and (ii) such electronic copies that exist as part of the party’s computer systems, network storage systems and electronic backup systems.

8.3    Exceptions. The use and non-disclosure obligations set forth in this Section 8 shall not apply to any Confidential Information, or portion thereof, that the Receiving Party can demonstrate by appropriate documentation:

(i)    at the time of disclosure is in the public domain;

(ii)    after disclosure, becomes part of the public domain, by publication or otherwise, through no fault of the Receiving Party;

(iii)    at the time of disclosure is already in the Receiving Party’s possession, and such prior possession can be properly demonstrated by the Receiving Party, with the exception of Confidential Information exchanged between parties prior to the execution of this Agreement; or

(iv)    is made available to the Receiving Party by an independent Third Party; provided, however, to the Receiving Party’s knowledge, such information was not obtained by said Third Party, directly or indirectly, from the Disclosing Party hereunder.

In addition, the Receiving Party may disclose information that is required to be disclosed by law, by a valid order of a court or by order or regulation of a governmental agency including but not limited to, regulations of the United States Securities and Exchange Commission (the “SEC”), or in the course of litigation; provided, however, in all cases the Receiving Party shall give the other party prompt notice of the pending disclosure and make a reasonable effort to obtain, or to assist the Disclosing Party in obtaining, a protective order preventing or limiting the disclosure and/or requiring that the Confidential Information so disclosed be used only for the purposes for which the law or regulation required, or for which the order was issued. Spectrum may further disclose CyDex’s Confidential Information to extent that such disclosure is necessary to develop, file for Regulatory Approval, or commercialize the Licensed Product, or to seek, prosecute and maintain intellectual property protection for the Licensed Product.

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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8.4    Injunction. Each party agrees that should it breach or threaten to breach any provisions of this Section 8, the Disclosing Party will suffer irreparable damages and its remedy at law will be inadequate. Upon any breach or threatened breach by the Receiving Party of this Section 8, the Disclosing Party shall be entitled to seek injunctive relief in addition to any other remedy which it may have, without need to post any bond or security.

8.5    Third Party Information. Spectrum acknowledges that CyDex’s Confidential Information includes information developed by Pfizer, Inc. (“Pfizer”) that is confidential to both CyDex and Pfizer. In so far as Confidential Information of Pfizer is disclosed, Pfizer is a third-party beneficiary of this Section 8 of this Agreement and may enforce it or seek remedies pursuant to it in accordance with its terms.

8.6    Public Announcements. The parties will mutually agree on a press release to be issued upon execution of this Agreement or reasonably soon thereafter. The press release shall describe the transaction as being royalty-based with commercial milestones in excess of $50 million. Ligand shall also file a Form 8-K describing the Agreement as including a significant double-digit royalty.. Neither party shall make any subsequent public announcement concerning this Agreement or the terms hereof not previously made public without the prior written approval of the other party with regard to the form, content, and precise timing of such announcement, except as may be required to be made by either party in order to comply with applicable Law, regulations, court orders, or tax, securities filings, financing arrangements, acquisitions, or sublicenses. Such consent shall not be unreasonably withheld or delayed by such other party. Prior to any such public announcement, the party wishing to make the announcement will submit a draft of the proposed announcement to the other party in sufficient time to enable such other party to consider and comment thereon. The party wishing to make the announcement will reasonably consider all comments provided by the other party and will also cooperate to seek confidential treatment of any information reasonably requested by the other party.

9.REPRESENTATIONS AND WARRANTIES.

9.1    Mutual Representations and Warranties. Each party represents and warrants to the other as follows:

(i)    it is a corporation duly organized and validly existing under the laws of the state or country of its incorporation;

(ii)    it has the complete and unrestricted power and right to enter into this Agreement and to perform its obligations hereunder;

(iii)    this Agreement has been duly authorized, executed and delivered by such party and constitutes a legal, valid and binding obligation of such party enforceable against such party in accordance with its terms except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, receivership, moratorium, fraudulent transfer, or other similar laws affecting the rights and remedies of creditors generally and by general principles of equity;

(iv)    the execution, delivery and performance of this Agreement by such party do not conflict with any agreement, instrument or understanding, oral or written, to which such party is a party or by which such party may be bound, nor violate any law or regulation of any court, governmental body or administrative or other agency having authority over such party;

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LICENSE AGREEMENT    PAGE 13

(v)    all consents, approvals and authorizations from all governmental authorities or other Third Parties required to be obtained by such party in connection with the execution and delivery of this Agreement have been obtained;

(vi)    no person or entity has or will have, as a result of the transactions contemplated by this Agreement, any right, interest or valid claim against or upon such party for any commission, fee or other compensation as a finder or broker because of any act by such party or its agents; and

(vii)    it has not entered into any agreement with any Third Party that is in conflict with the rights granted to the other party pursuant to this Agreement.

9.2    Additional Representations, Warranties and Covenants of CyDex. CyDex represents and warrants to Spectrum, as of the Effective Date, and covenants that:

(i)    it (directly or through its Affiliates) is the owner or licensee of the Licensed Patents and has the right to grant the licenses to Spectrum for the Captisol Data Package, Product Know-How, and the Licensed Patents pursuant to this Agreement, and it has not and will not grant such license to any Third Party;

(ii)    to CyDex’s knowledge, it (directly or through its Affiliates) is the owner of all the intellectual property rights necessary to develop, manufacture, and commercialize the Licensed Product, and all such rights have been licensed to Spectrum pursuant to this Agreement;

(iii)    to CyDex’s knowledge, other than the intellectual property licensed to Spectrum pursuant to this Agreement, no other intellectual property right and interests are necessary to develop, manufacture, and commercialize the Licensed Product;

(iv)    it (directly or through its Affiliates) is the owner or licensee of all the intellectual property rights necessary to manufacture and commercialize Captisol and, to CyDex’s knowledge, other than the intellectual property licensed to Spectrum pursuant to this Agreement, no other intellectual property right and interests are necessary to use Captisol to develop, manufacture, and commercialize the Licensed Product;

(v)    after the Effective Date, it (directly or through its Affiliates) shall provide to Spectrum pursuant to Section 2.5 above, all material Confidential Information of CyDex pertaining to the development, manufacture, or commercialization of the Licensed Product;

(vi)    CyDex or any of its Affiliates has not received any written notice from any Third Party asserting or alleging that any research or development of the Licensed Product prior to the Effective Date infringed or misappropriated the intellectual property rights of such Third Party;

(vii)    there are no actual, or, to CyDex’s knowledge, pending, alleged or threatened adverse actions, suits, claims, interferences or formal governmental investigations pertaining to the Licensed Product, the Licensed Patents and the Product Know How by or against CyDex or any of its Affiliates in or before any court, governmental or regulatory authority; and

(viii)    after the Effective Date, it will not enter into any agreement or other arrangement with any Third Party following the Effective Date that would limit Spectrum’s right and ability to exploit the rights and licenses granted by CyDex to Spectrum under this Agreement.

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9.3    Disclaimer. THE WARRANTIES SET FORTH IN THIS SECTION 9 ABOVE ARE PROVIDED IN LIEU OF, AND EACH PARTY HEREBY DISCLAIMS, ALL OTHER WARRANTIES, EXPRESS AND IMPLIED, RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT, CAPTISOL, THE LICENSED PATENTS, THE CAPTISOL DATA PACKAGE, OR THE PRODUCT KNOW-HOW, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

10.INDEMNIFICATION.

10.1    By CyDex. CyDex shall defend, indemnify and hold Spectrum and its Affiliates and Sublicensees, and each of their respective directors, officers and employees, harmless from and against any and all losses, damages, liabilities, costs and expenses (including the reasonable costs and expenses of attorneys and other professionals) (collectively “Losses”) incurred by Spectrum as a result of any claim, demand, action or other proceeding (each, a “Claim”) by a Third Party, to the extent such Losses arise out of: (a) the manufacture, use, handling, promotion, marketing, distribution, importation, sale or offering for sale of Captisol by CyDex and its Affiliates; or (b) an alleged or actual infringement or misappropriation of an intellectual property right by the use, handling, promotion, marketing, distribution, importation, sale or offering for sale of Captisol by Spectrum in connection with the Licensed Products; or (c) CyDex’s breach of this Agreement, to the extent that such Losses are not due to Spectrum’s gross negligence or willful misconduct.

10.2    By Spectrum. Spectrum shall defend, indemnify and hold CyDex and its Affiliates, and each of their respective directors, officers and employees, harmless from and against any and all Losses incurred by CyDex as a result of any Claim by a Third Party, to the extent such Losses arise out of: (a) the manufacture, use, handling, promotion, marketing, distribution, importation, sale or offering for sale of the Licensed Product by Spectrum, its Affiliates and Sublicensees to the extent not covered by Section 10.1; or (b) Spectrum’s breach of this Agreement, to the extent that such Losses are not due to CyDex’s gross negligence or willful misconduct.

10.3    Expenses. As the parties intend complete indemnification, all costs and expenses of enforcing any provision of this Section 10 shall also be reimbursed by the Indemnitor.

10.4    Procedure. The party intending to claim indemnification under this Section 10 (an “Indemnitee”) shall promptly notify the other party (the “Indemnitor”) of any Claim in respect of which the Indemnitee intends to claim such indemnification, and the Indemnitor shall assume the defense thereof whether or not such Claim is rightfully brought; provided, however, an Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the Indemnitee, unless Indemnitor does not assume the defense, in which case the reasonable fees and expenses of counsel retained by the Indemnitee shall be paid by the Indemnitor. The Indemnitee, and its employees and agents, shall cooperate fully with the Indemnitor and its legal representatives in the investigations of any Claim. The Indemnitor shall not be liable for the indemnification of any Claim settled or compromised by the Indemnitee without the written consent of the Indemnitor.

11.LIMITATION OF LIABILITY.

11.1    Limitation of Remedies. NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, INCIDENTAL, PUNITIVE, OR INDIRECT DAMAGES OR LOSS OF PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 11 IS INTENDED TO OR SHALL LIMIT OR RESTRICT THE

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INDEMNIFICATION RIGHTS OR OBLIGATIONS OF ANY PARTY UNDER SECTION 10, OR DAMAGES AVAILABLE FOR A PARTY’S BREACH OF CONFIDENTIALITY OBLIGATIONS IN SECTION 8.

11.2    Limitation of Damages. EXCEPT WITH RESPECT TO THE INDEMNIFICATION SPECIFICALLY PROVIDED IN SECTION 10 ABOVE, IN NO EVENT SHALL CYDEX’S TOTAL AGGREGATE LIABILITY FOR ALL CLAIMS ARISING OUT OF OR RELATED TO THIS AGREEMENT AND THE SUPPLY AGREEMENT EXCEED [***] MILLION DOLLARS ($[***]).

12.MANAGEMENT OF LICENSED PATENTS.

12.1    Prosecution and Maintenance.

(a)    CyDex Patents. CyDex shall maintain or abandon, at its sole cost and expense and using reasonable discretion, the Captisol Patents set forth on Exhibit A. CyDex shall have the sole right to control the prosecution and maintenance of patent applications and the selection of countries where patent applications are filed related to the Captisol Patents.

(b)    Licensed Product Patents. Spectrum shall maintain, at its sole cost and expense and using reasonable discretion, the Licensed Product Patents set forth on Exhibit B. Spectrum shall have the sole right to control the prosecution and maintenance of patent applications and the selection of countries where patent applications are filed related to the Licensed Product Patents; provided, however, (i) CyDex shall be provided with the right and opportunity to give comments and recommendations as to the overall strategy regarding the filing, prosecution and maintenance of the Licensed Product Patents which shall be considered by Spectrum in good faith, and (ii) Spectrum shall use Commercially Reasonable Efforts to prosecute, obtain and maintain the Licensed Product Patents in each of the Major Markets. In the event that Spectrum decides not to prosecute and maintain the Licensed Product Patents in a country, Spectrum shall provide not less than [***] ([***]) days prior written notice of such decision, and CyDex shall have the option to take over the prosecution and maintenance in such country or countries. For clarity, in the event that Spectrum fails to prosecute and/or maintain the Licensed Product Patents in a country, CyDex shall have the right to terminate this Agreement pursuant to Section 13.2 hereof with respect to such country (but not other countries within the Territory) with [***] days notice during which Spectrum may cure this failure.

12.2    Infringement of Captisol Patents by Third Parties. If Spectrum becomes aware that a Third Party may be infringing a Captisol Patent, it will promptly notify CyDex in writing, providing all information available to Spectrum regarding the potential infringement. CyDex shall take whatever, if any, action it deems appropriate, in its sole discretion, against the alleged infringer. If CyDex elects to take action, Spectrum shall, at CyDex’s request and expense, cooperate and shall cause its employees to cooperate with CyDex in taking any such action, including but not limited to, cooperating with the prosecution of any infringement suit by CyDex related to a Captisol Patent. Spectrum shall not take any such action against the alleged infringer related to a Captisol Patent without the written consent of CyDex. Each party shall provide to the party enforcing any such rights under this Section 12.2 reasonable assistance in such enforcement, at such enforcing party’s request and expense, including joining such action as a party plaintiff if required by applicable law to pursue such action.

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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12.3    The enforcing party shall keep the other party regularly informed of the status and progress of such enforcement efforts, shall reasonably consider the other party’s comments on any such efforts. If either party recovers monetary damages from any Third Party in a suit or action brought for infringement of a Captisol Patent, such recovery shall be allocated first to the reimbursement of any expenses incurred by the parties in such litigation (including, for this purpose, a reasonable allocation of expenses of internal counsel), and the remaining amounts shall (i) to the extent not attributable to the Licensed Product, be paid to CyDex, if the suit or action is brought by CyDex and shared equally by CyDex and Spectrum, if the suit or action is brought by Spectrum and (ii) be regarded as Net Sales which is subject to royalty obligations under this Agreement to the extent any amounts are attributable to the Licensed Product. For clarity, this Section 12.2 shall not apply in the event of Product Infringement as defined below in Section 12.3(a). Without Spectrum’s prior written consent (not to be unreasonably withheld, conditioned or delayed), no settlement shall be concluded by CyDex that would provide the alleged infringer any right to use the Captisol Patents for a product containing the Compound.

12.4    Infringement of Licensed Product Patents by Third Parties.

(a)    Notification. Each party shall promptly notify the other party in writing of any existing or threatened infringement of the Licensed Product Patents through the development or commercialization of a product comprising the Compound as an active ingredient by a Third Party, of which such Party becomes aware, including any “patent certification” filed in the United States under 21 U.S.C. §355(b)(2) or 21 U.S.C. §355(j)(2) or similar provisions in other jurisdictions and of any declaratory judgment, opposition, or similar action alleging the invalidity, unenforceability or non-infringement of any of the Licensed Product Patents (collectively “Product Infringement”).

(b)    Product Infringement.    

(i)    For any Product Infringement, Spectrum shall have the first right, but not the obligation, to bring an appropriate suit or other action against any person or entity engaged in such Product Infringement. If Spectrum fails to institute and prosecute an action or proceeding to abate the Product Infringement within a period of [***] ([***]) days (a) after the first notice under Section 12.3(a) or (b) of otherwise having knowledge of the Product Infringement, then CyDex shall have the right, but not the obligation, to commence a suit or take action to enforce the applicable Licensed Product Patent against such third Party perpetrating such Product Infringement at its own cost and expense. In this case, Spectrum shall take appropriate actions in order to enable CyDex to commence a suit or take the actions set forth in the preceding sentence.

(ii)    Each party shall provide to the party enforcing any such rights under this Section 12.3 reasonable assistance in such enforcement, at such enforcing party’s request and expense, including joining such action as a party plaintiff if required by applicable law to pursue such action. The enforcing party shall keep the other party regularly informed of the status and progress of such enforcement efforts, shall reasonably consider the other party’s comments on any such efforts.

(iii)    Each party shall bear all of its own internal and external costs and expenses incurred in connection with its activities under this Section 12.3.

(iv)    The party not bringing an action with respect to Product Infringement under this

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Section 12.3 shall be entitled to separate representation in such matter by counsel of its own choice and at its own expense, but such party shall at all times cooperate fully with the party bringing such action.

(c)    Allocation of Proceeds. If either party recovers monetary damages from any Third Party in a suit or action brought for a Product Infringement, such recovery shall be allocated first to the reimbursement of any expenses incurred by the parties in such litigation (including, for this purpose, a reasonable allocation of expenses of internal counsel), and the remaining amounts shall be part of Net Sales subject to the royalty payment by Spectrum to CyDex.

12.5    Cooperation. Each party hereby agrees to duly execute and deliver, or cause to be duly executed and delivered such further instruments and do and cause to be done such further acts and things, including without limitation, the filing of such additional assignments, agreements, documents and instruments, that may be necessary or as the other party hereto may at any time and from time to time reasonably request in connection with this Section 12.

13.    TERM AND TERMINATION.

13.1    Term. The term of this Agreement (the “Term”) shall commence on the Effective Date and shall continue in effect thereafter, on a country-by-country basis, through the Royalty Obligation Term, unless terminated earlier as set forth herein.

13.2    Termination for Breach.

(a)    Notice. If either party believes that the other is in material breach of this Agreement, then the party holding such belief (the “Non-breaching Party”) may deliver notice of such breach to the other party (the “Notified Party”). The Notified Party shall have [***] ([***]) days to cure such breach to the extent involving non-payment of amounts due hereunder, and [***] ([***]) days to either cure such breach for all other material breaches, or, if cure of such breach other than non-payment cannot reasonably be effected within such [***] ([***]) day period, to deliver to the Non-breaching Party a plan reasonably calculated to cure such breach within a timeframe that is reasonably prompt in light of the circumstances then prevailing but in no event in excess of an additional [***] ([***]) day period unless otherwise mutually agreed in writing. Following delivery of such a plan, the Notified Party shall diligently carry out the plan and cure the breach and the cure period shall be extended by the time period provided in such plan but in no event to exceed [***] ([***]) days from the date of any initial breach notice delivered under this Section 13.2.

(b)    Failure to Cure. If the Notified Party fails to cure a material breach of this Agreement as provided for in Section 13.2, then the Non-Breaching Party may terminate this Agreement upon written notice to the Notified Party.

(c)    Disputes. If a party gives notice of termination under this Section 13.2 and the other Party disputes whether such termination is proper under this Section 13.2, then the issue of whether this Agreement may properly be terminated upon expiration of the notice period (unless such breach is cured as provided in Section 13.2) shall be resolved in accordance with Section 14.4. If as a result of such dispute resolution process it is determined that the notice of termination was proper, then such termination shall be deemed to have been effective [***] ([***]) days following the date of the notice of termination (or such other time period applicable pursuant to Section 13.2). If as a result of such dispute resolution process it is determined that the notice of termination was improper, then no termination shall have occurred and this Agreement shall remain in effect.

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13.3    Termination by Spectrum for Convenience. Spectrum shall have the right to terminate this Agreement in its entirety without cause by providing CyDex with ninety (90) days prior written notice.

13.4    CyDex Rights upon Termination (Other Than for CyDex Breach). In event that Spectrum terminates the Agreement without cause pursuant to Section 13.3 or that CyDex terminates this Agreement pursuant to Section 13.2, the following shall apply (in addition to any other rights and obligations otherwise under this Agreement with respect to such termination):

(a)    Regulatory Filings; Data. To the extent permitted by applicable Laws, Spectrum shall transfer and assign to CyDex all regulatory filings, Regulatory Approvals, and related preclinical, analytical, and clinical data for the Licensed Product.

(b)    Transition Assistance. Spectrum shall provide such assistance, at CyDex’s expense, as may be reasonably necessary or useful for CyDex to commence or continue developing, manufacturing or commercializing the Licensed Product, to the extent Spectrum is then performing such activities, including, without limitation transferring, upon request of CyDex, any agreements or arrangements with Third Party vendors to sell the Licensed Product, to the extent assignable. To the extent that any such contract between Spectrum and a Third Party is not assignable to CyDex, then Spectrum shall reasonably cooperate with CyDex to arrange to continue to and provide such services from such entity.

(c)    Termination of Licenses. All rights granted to Spectrum herein shall immediately terminate.

(d)    Return of Records. Each party shall promptly return all relevant records and materials in its possession or control containing the other party’s Confidential Information with respect to which the former party does not retain rights hereunder; provided, however; each party may retain one archival copy of such records and materials solely to be able to monitor its obligations that survive under this Agreement.

(e)    License of Certain Rights. Spectrum hereby grants to CyDex a nonexclusive, transferable, perpetual, worldwide and royalty-free license, with the right to grant sublicenses (through multiple tiers of sublicensees), under Spectrum’s and its Affiliates’ rights in and to any technology, improvement, data or information related to the Licensed Product, including, without limitation, any such technology, improvement, data or information related to Licensed Patents, Product Know-How or Captisol Data Package, whether or not patentable, that is developed by Spectrum or its Affiliates, to develop, make, have made, use, market, distribute, import, sell and offer for sale the Licensed Product.

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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(f)    Transfer of Approvals. Spectrum shall transfer and assign the relevant Marketing Approvals and Regulatory Approvals to CyDex, to the extent permitted by applicable laws.

13.5    CyDex Rights upon Termination (If for CyDex Breach). In event that Spectrum terminates the Agreement due to CyDex’s breach pursuant to Section 13.2, the following shall apply (in addition to any other rights and obligations otherwise under this Agreement with respect to such termination):

(a)    Termination of Licenses. All rights granted to Spectrum and all rights granted to CyDex herein shall immediately terminate subject to sub-clauses (b) and (c) below.

(b)    Regulatory Filings. Spectrum shall retain all regulatory filings and data generated by Spectrum, its Affiliates and Sublicensees during the Term of this Agreement, including any existing Market Approval for the Licensed Product, and CyDex shall not have rights to use any such regulatory filings, data or Market Approval.

(c)    Return of Records. Each party shall promptly return all relevant records and materials in its possession or control containing the other party’s Confidential Information with respect to which the former party does not retain rights hereunder; provided, however, each party may retain one archival copy of such records and materials solely to be able to monitor its obligations that survive under this Agreement.

13.6    Spectrum Rights Upon Expiration. On a country-by-country basis, upon the expiration of Spectrum’s obligations to pay royalties under Section 4.1(c), the license granted to Spectrum under this Agreement shall become a fully-paid, royalty-free, and perpetual license for the Licensed Product in the Field.

13.7    Termination of the Supply Agreement. For clarity, this Agreement shall terminate if the Supply Agreement is terminated by Spectrum without cause, or terminated by CyDex because of any material breach by Spectrum.

13.8    Survival. Notwithstanding any other provisions of this Agreement, any liability or obligation of either party to the other for acts or omissions prior to the termination or expiration of this Agreement shall survive the termination or expiration of this Agreement. Such termination or expiration shall not relieve either party from obligations that are expressly indicated to survive termination or expiration of this Agreement, nor shall any termination or expiration of this Agreement relieve Spectrum of its obligation to pay CyDex royalties for all Licensed Product sold by Spectrum, its Affiliates or Sublicensees prior to the effective date of such expiration or termination. Sections 2.2 (Grant of License from Spectrum to CyDex), 4.1 (Payments and Royalties for Licenses), 4.2 (Currency), 4.3 (Taxes), 4.4 (Late Payments), 5 (Records; Reports; Audits), 6.4 (Access to Spectrum’s Data), 7.3 (Adverse Event Reporting), 8 (Confidentiality), 9.3 (Disclaimer), 10 (Indemnification), 11 (Limitation of Liability), 13.4 (CyDex Rights Upon Termination (Other Than for CyDex Breach)), 13.5 (CyDex Rights Upon Termination (If for CyDex Breach), 13.6 (Spectrum’s Rights Upon Expiration), 13.8 (Survival), and 14 (General Provisions) shall survive termination or expiration of this Agreement.

14.    GENERAL PROVISIONS.

14.1    Non-Solicitation. During the Term and for a period of [***] ([***]) [***] thereafter, neither party shall solicit, induce, encourage or attempt to induce or encourage any employee of the other party to terminate his or her employment with such other party or to breach any other obligation to such

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other party. This section is not meant to encompass general solicitations such as may be found in newspaper advertisements and the like.

14.2    Relationship of Parties. Each of the parties hereto is an independent contractor and nothing in this Agreement is intended or shall be deemed to constitute a partnership, agency, employer-employee or joint venture relationship between the parties. No party shall incur any debts or make any commitments for the other.

14.3    Compliance with Law. Each of the parties will comply with all applicable international, federal, state and local laws, rules and regulations, including, but not limited to, import/export restrictions, laws, rules and regulations governing use and patent, copyright and trade secret protection.

14.4    Arbitration.

(a)    Procedure. Except as otherwise expressly set forth in Section 14.4(b) below, any and all disputes or controversies arising out of or relating to this Agreement shall be exclusively and finally resolved by binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association then in effect, in San Diego, California. The arbitration shall be conducted by an arbitrator reasonably knowledgeable about the pharmaceutical industry and acceptable to CyDex and Spectrum. If CyDex and Spectrum cannot agree on a single arbitrator within [***] ([***]) days after a demand for arbitration has been made, CyDex shall appoint an arbitrator, Spectrum shall appoint an arbitrator, the two (2) arbitrators shall appoint a third arbitrator, and the three (3) arbitrators shall hear and decide the issue in controversy. If either party fails to appoint an arbitrator within [***] ([***]) days after service of the demand for arbitration, then the arbitrator appointed by the other party shall arbitrate any controversy in accordance with this Section 14.4(a). Except as to the selection of arbitrators, the arbitration proceedings shall be conducted promptly and in accordance with the rules of the American Arbitration Association then in effect. The expenses of any arbitration, including the reasonable attorney fees of the prevailing party, shall be borne [***].

(b)    Short-Form Arbitration. Any dispute subject to short-form arbitration as provided in this Agreement shall be exclusively and finally resolved by binding arbitration in accordance with the commercial arbitration rules of the American Arbitration Association then in effect, in San Diego, California by a single arbitrator reasonably knowledgeable about the pharmaceutical industry and appointed in accordance with such rules. Such arbitrator shall make his or her determination on the basis of “baseball arbitration” principles. THE FOREGOING REMEDY SHALL BE EACH PARTY’S SOLE AND EXCLUSIVE REMEDY WITH RESPECT TO ANY SUCH DISPUTE. The expenses of any arbitration, including the reasonable attorney fees of the prevailing party, shall be borne [***]. In each case, the parties and arbitrator shall use all diligent efforts to complete such arbitration within [***] ([***]) days of appointment of the arbitrator.

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

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(c)    Confidentiality of Proceedings. All arbitration proceedings hereunder shall be confidential and the arbitrator(s) shall issue appropriate protective orders to safeguard each party’s Confidential Information. Except as required by law, no party shall make (or instruct the arbitrator(s) to make) any public announcement with respect to the proceedings or decision of the arbitrator(s) without prior written consent of the other party.

(d)    Interim Equitable Relief. Each party shall, in addition to all other remedies accorded by law and permitted by this Agreement, be entitled to equitable relief (including but not limited to interim injunctive relief) in any court having jurisdiction to protect its interests. Neither party shall commence any court proceeding or action against the other to resolve any dispute, except (i) to enforce an arbitral award rendered pursuant to this Section 14.4, or (ii) for such interim injunctive relief.

(e)    Binding Effect. The provisions of this Section 14.4 shall survive any expiration or termination of this Agreement, and shall be severable and binding on the parties hereto, notwithstanding that any other provision of this Agreement may be held or declared to be invalid, illegal or unenforceable.

14.5    Costs and Expenses. Except as otherwise expressly provided in this Agreement, each party shall bear all costs and expenses associated with the performance of such party’s obligations under this Agreement.

14.6    Force Majeure. Neither party shall be liable for failure to perform, or delay in the performance of, its obligations under this Agreement (other than payment obligations) when such failure or delay is caused by an event of force majeure. For purposes of this Agreement, an event of force majeure means any event or circumstance beyond the reasonable control of the affected party, including but not limited to, war, insurrection, riot, fire, flood or other unusual weather condition, explosion, act of God, peril of the sea, strike, lockout or other industrial disturbance, sabotage, accident, embargo, breakage of machinery or apparatus, injunction, act of governmental authority, compliance with governmental order on national defense requirements, or inability to obtain fuel, power, raw materials, labor or transportation facilities. If, due to any event of force majeure, either party shall be unable to fulfill its obligations under this Agreement (other than payment obligations), the affected party shall immediately notify the other party of such inability and of the period during which such inability is expected to continue.

14.7    Notices. Any notice, request, or communication under this Agreement shall be effective only if it is in writing and personally delivered; sent by certified mail, postage pre-paid; facsimile with receipt confirmed; or by nationally recognized overnight courier with signature required, addressed to the parties at the addresses stated below or such other persons and/or addresses as shall be furnished in writing by any party in accordance with this Section 14.7. Unless otherwise provided, all notices shall be sent:

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If to CyDex, to:        CyDex Pharmaceuticals, Inc.    

11119 North Torrey Pines Road

Suite 200

La Jolla, CA 92037

Attention: Secretary

Fax: [***]

With a copy to:        General Counsel

Ligand Pharmaceuticals Incorporated

11119 North Torrey Pines Road

Suite 200

La Jolla, CA 92037

Fax:    [***]

If to Spectrum, to:    Spectrum Pharmaceuticals, Inc.

157 Technology Drive

Irvine, CA 92618

Attention: Legal Counsel

Fax: [***]

With a copy to:        Stradling Yocca Carlson & Rauth

660 Newport Center Drive, Suite 1600

Newport Beach, CA 92660

Attention: Shivbir Grewal

Facsimile: [***]

If sent by facsimile transmission, the date of transmission shall be deemed to be the date on which notice of successful transmission thereof is received by the notifying party. If sent by overnight courier, the next business day after the date of deposit with such courier shall be deemed to be the date on which such notice, request or communication was given. If sent by certified mail, the third business day after the date of mailing shall be deemed the date on which such notice, request or communication was given.

14.8    Use of Name. No party shall use the name, trademark, trade name or logo of the other party, its Affiliates or their respective employee(s) in any publicity, promotion, news release or public disclosure relating to this Agreement or its subject matter, without the prior express written permission of the other party, except as may be required by law. The parties agree that a party may disclose this Agreement and its terms, and material developments or material information generated under this Agreement, in (i) securities filings with the SEC (or equivalent foreign agency) to the extent required by law after complying with the procedure set forth in this Section 14.8, or (ii) under conditions of confidentiality in connection with investment and similar corporate transactions. In the event of a required public announcement, the party making such announcement shall provide the other party with a copy of the proposed text prior to such announcement sufficiently in advance of the scheduled release of such announcement to afford such other party a reasonable opportunity to review and comment upon the proposed text and the timing of such disclosure.

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

_____________________________________________________________________________________________________________________

LICENSE AGREEMENT    PAGE 23

14.9    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California (without giving effect to any conflicts of law principles that require the application of the law of a different state).

14.10    Entire Agreement; Amendment. This Agreement and all Exhibits attached hereto or thereto contain the entire agreement of the parties relating to the subject matter hereof and supersede any and all prior agreements, written or oral, between CyDex and Spectrum relating to the subject matter of this Agreement. This Agreement may not be amended unless agreed to in writing by both parties.

14.11    Binding Effect. This Agreement shall be binding upon, and the rights and obligations hereof shall apply to the CyDex and Spectrum and any successor(s) and permitted assigns. The name of a party appearing herein shall be deemed to include the names of such party’s successors and permitted assigns to the extent necessary to carry out the intent of this Agreement.

14.12    Waiver. The rights of either party under this Agreement may be exercised from time to time, singularly or in combination, and the exercise of one or more such rights shall not be deemed to be a waiver of any one or more of the others. No waiver of any breach of a term, provision or condition of this Agreement shall be deemed to have been made by either party unless such waiver is addressed in writing and signed by an authorized representative of that party. The failure of either party to insist upon the strict performance of any of the terms, provisions or conditions of this Agreement, or to exercise any option contained in this Agreement, shall not be construed as a waiver or relinquishment for the future of any such term, provision, condition or option or the waiver or relinquishment of any other term, provision, condition or option.

14.13    Severability. If a final judicial determination is made that any provision of this Agreement is unenforceable, this Agreement shall be rendered void only to the extent that such judicial determination finds such provisions unenforceable, and such unenforceable provisions shall be automatically reconstituted and become a part of this Agreement, effective as of the date first written above, to the maximum extent they are lawfully enforceable.

14.14    Assignment. Neither party may assign its rights or delegate its obligations under this Agreement, in whole or in part, by operation of law or otherwise, to any Third Party without the prior written consent of the other party, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, either party may assign its rights and delegate its obligations under this Agreement without the other party’s prior written consent to an Affiliate or to a Third Party successor pursuant to (a) a sale of all of its assets relating to this Agreement, (b) a sale of substantially all its assets, or (c) a merger, consolidation, reorganization or other similar transaction. Any assignment not in accordance with this Section 14.14 shall be void.

14.15    Third Party Beneficiaries. Except for the rights of Indemnitees pursuant to Section 10 hereof, and subject to Section 8.5 hereof, the terms and provisions of this Agreement are intended solely for the benefit of each party hereto and their respective successors or permitted assigns and it is not the intention of the parties to confer third-party beneficiary rights upon any other person, including without limitation Sublicensees. The enforcement of any obligation of CyDex under this Agreement shall only be pursued by Spectrum or such Indemnitees, and not Sublicensees.

14.16    Headings. The descriptive headings of this Agreement are for convenience only, and shall be of no force or effect in construing or interpreting any of the provisions of this Agreement.

_____________________________________________________________________________________________________________________

LICENSE AGREEMENT    PAGE 24

14.17    Counterparts. This Agreement may be executed in two counterparts, each of which shall constitute an original document, but both of which shall constitute one and the same instrument.

[Remainder of this page left blank intentionally]

_____________________________________________________________________________________________________________________

LICENSE AGREEMENT    PAGE 25

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

CYDEX PHARMACEUTICALS, INC.

By:     /s/ John L. Higgins                

Name:     John L. Higgins                

Title:     President and CEO                

SPECTRUM PHARMACEUTICALS, INC.

By:     /s/ Rajesh C. Shrotriya                

Name:    Rajesh C. Shrotriya                

Title:    Chairman, President and CEO            

_____________________________________________________________________________________________________________________

LICENSE AGREEMENT    PAGE 26

EXHIBIT A: CAPTISOL PATENTS

[***]
Country	Filing Date	Application No.	Patent No.	Expiration Date
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]

[Exhibit continues on next page]

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

_____________________________________________________________________________________________________________________

LICENSE AGREEMENT    EXHIBIT A-1

EXHIBIT A – CONTINUED

[***]
Country	Filing Date	Application No.	Patent No.	Expiration Date
[***]	[***]	[***]	[***]	[***]
[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]

[Exhibit continues on next page]

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

_____________________________________________________________________________________________________________________

LICENSE AGREEMENT    EXHIBIT A-2

EXHIBIT A – CONTINUED

[***]
Country	Filing Date	Application No.	Patent No.	Expiration Date
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]

[Exhibit continues on next page]

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

_____________________________________________________________________________________________________________________

LICENSE AGREEMENT    EXHIBIT A-3

EXHIBIT A – CONTINUED

[***]
Country	Filing Date	Serial No.	Patent No.	Expiration Date
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]
[***]	[***]	[***]

* * * * *

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

_____________________________________________________________________________________________________________________

LICENSE AGREEMENT    EXHIBIT A-4

_____________________________________________________________________________________________________________________

EXHIBIT B: LICENSED PRODUCT PATENTS

Matter	Title	Country	Serial Number	Patent Number	Expiration Date
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]
[***]	[***]	[***]	[***]

* * * * *

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

_____________________________________________________________________________________________________________________

LICENSE AGREEMENT     EXHIBIT B

_____________________________________________________________________________________________________________________

EXHIBIT C: SPECIFICATIONS

[***]

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

_____________________________________________________________________________________________________________________

LICENSE AGREEMENT     EXHIBIT C

EXHIBIT D: SPECIFIED DILIGENCE REQUIREMENTS

Using Commercial Reasonable Efforts, Spectrum will engage in Substantial Development Activities [***]. “Substantial Development Activities” shall mean [***].

In the event that Spectrum fails to achieve the above goal as determined within [***] ([***]) days following the specified date, the parties shall meet to discuss and agree upon a mutually acceptable remediation plan within [***] ([***]) days from the specified date. If it is mutually determined that Spectrum failed to either engage in Substantial Development Activities or to use Commercially Reasonable Efforts in developing a Licensed Product, and if the parties are unable to mutually agree upon a remediation plan, then CyDex has the right to terminate the Agreement pursuant to Section 13.2. In the event that the parties cannot agree on such determination or plan, then the parties CEO’s or their mutually agreed upon designees shall have a face-to-face meeting to attempt to solve any dispute within the next [***] ([***]) days. In the event that the dispute is still not resolved, the parties agree to be subject to short-form arbitration pursuant to Section 14.4(b).

On a country-by-country basis, the Commercial Launch Date shall occur no later than [***] ([***]) months following the date of Regulatory Approval in a Major Market. For at least [***] ([***]) months following the Commercial Launch Date, Spectrum shall assign the Licensed Product to the primary call position those physicians who treat multiple myeloma or perform transplant for multiple myeloma and allocate greater than [***] of sales efforts and sales representative’s time as demonstrated by activity analysis and compensation. For [***] ([***]) months following the Commercial Launch Date, Spectrum shall provide commercially reasonable medical science liason support for phase IV and investigator sponsored studies. For [***] ([***]) years following the Commercial Launch Date, Spectrum shall allocate no less than Commercially Reasonable Efforts to selling the Licensed Product. For avoidance of doubt, the decision whether to seek Regulatory Approval in a particular Major Market other than the United States is at the sole discretion of Spectrum, subject to its obligation to use Commercially Reasonable Efforts as set forth in Section 6.1.

* * * * *

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

____________________________________________________________________________________________________________________

LICENSE AGREEMENT    EXHIBIT D

EXHIBIT E: MAJOR MARKETS

[***]

[***]: CONFIDENTIAL PORTIONS OMITTED AND FILED SEPARATELY WITH THE COMMISSION.

____________________________________________________________________________________________________________________

LICENSE AGREEMENT    EXHIBIT E

EX-31.1

Exhibit 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Rajesh C. Shrotriya, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Spectrum Pharmaceuticals, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 9, 2016	/s/ Rajesh C. Shrotriya
	Rajesh C. Shrotriya, MD
	Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Kurt A. Gustafson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Spectrum Pharmaceuticals, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 9, 2016	/s/ Kurt A. Gustafson
	Kurt A. Gustafson
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

I, Rajesh C. Shrotriya, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge, the Quarterly Report of Spectrum Pharmaceuticals, Inc. on Form 10-Q for the quarterly period ended June 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents in all material respects the financial condition and results of operations of Spectrum Pharmaceuticals, Inc.

Date:	August 9, 2016	By:	/s/ Rajesh C. Shrotriya
		Name:	Rajesh C. Shrotriya, MD
		Title:	Chairman and Chief Executive Officer

This certification accompanies the Report pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liability of that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, or, the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporated by reference.

EX-32.2

Exhibit 32.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

I, Kurt A. Gustafson, certify, pursuant to Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, that, to my knowledge, the Quarterly Report of Spectrum Pharmaceuticals, Inc. on Form 10-Q for the quarterly period ended June 30, 2016 (the “Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents in all material respects the financial condition and results of operations of Spectrum Pharmaceuticals, Inc.

Date:	August 9, 2016	By:	/s/ Kurt A. Gustafson
		Name:	Kurt A. Gustafson
		Title:	Executive Vice President and Chief Financial Officer

This certification accompanies the Report pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities and Exchange Act of 1934, or otherwise subject to the liability of that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, or, the Securities Exchange Act of 1934, except to the extent that the Company specifically incorporated by reference.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 28, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Trading Symbol	SPPI
Entity Registrant Name	SPECTRUM PHARMACEUTICALS INC
Entity Central Index Key	0000831547
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		80,216,716

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 155,759	$ 139,741
Marketable securities	247	245
Accounts receivable, net of allowance for doubtful accounts of $15 and $120, respectively	34,319	30,384
Other receivables	6,968	12,572
Inventories	6,405	4,176
Prepaid expenses and other assets	2,954	3,507
Total current assets	206,652	190,625
Property and equipment, net of accumulated depreciation	643	918
Intangible assets, net of accumulated amortization and impairment charges	178,312	190,335
Goodwill	17,997	17,960
Other assets	25,600	19,211
Total assets	429,204	419,049
Current liabilities:
Accounts payable and other accrued liabilities	48,208	56,539
Accrued payroll and benefits	6,496	8,188
Deferred revenue	3,461	6,130
Drug development liability	156	259
Acquisition-related contingent obligations	0	5,227
Total current liabilities	58,321	76,343
Drug development liability, less current portion	14,227	14,427
Deferred revenue, less current portion	750	383
Acquisition-related contingent obligations, less current portion	1,993	1,439
Deferred tax liability	6,831	6,779
Other long-term liabilities	8,661	7,444
Convertible senior notes	102,522	99,377
Total liabilities	193,305	206,192
Commitments and contingencies
Stockholders’ equity:
Preferred stock	0	0
Common stock, $0.001 par value; 175,000,000 shares authorized; 75,902,704 and 68,228,935 shares issued and outstanding at June 30, 2016 and December 31, 2015, respectively	75	68
Additional paid-in capital	606,220	552,108
Accumulated other comprehensive loss	(2,651)	(5,319)
Accumulated deficit	(367,745)	(334,123)
Total stockholders’ equity	235,899	212,857
Total liabilities and stockholders’ equity	429,204	419,049
Series B junior participating preferred stock [Member]
Stockholders’ equity:
Preferred stock	0	0
Series E Convertible Voting Preferred Stock [Member]
Stockholders’ equity:
Preferred stock	$ 0	$ 123

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Allowance for doubtful accounts receivable	$ 15	$ 120
Preferred stock, par value ($ per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value ($ per share)	$ 0.001	$ 0.001
Common stock, shares authorized	175,000,000	175,000,000
Common stock, shares issued	75,902,704	68,228,935
Common stock, shares outstanding	75,902,704	68,228,935
Series B junior participating preferred stock [Member]
Preferred stock, par value ($ per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,500,000	1,500,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Series E Convertible Voting Preferred Stock [Member]
Preferred stock, par value ($ per share)	$ 0.001	$ 0.001
Preferred stock, stated value ($ per share)	$ 10,000	$ 10,000
Preferred stock, shares authorized	2,000	2,000
Preferred stock, shares issued	0	20
Preferred stock, shares outstanding	0	20
Convertible preferred shares	40,000	40,000

XML

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Product sales, net	$ 30,887	$ 35,144	$ 66,129	$ 73,557
License fees and service revenue	3,062	9,838	11,686	10,042
Total revenues	33,949	44,982	77,815	83,599
Operating costs and expenses:
Cost of product sales (excludes amortization and impairment charges of intangible assets)	5,609	5,990	11,212	13,061
Cost of service revenue	2,214	0	3,495	0
Selling, general and administrative	27,620	22,552	49,583	45,886
Research and development	14,281	9,558	29,744	25,409
Amortization and impairment charges of intangible assets	6,306	6,916	12,145	20,938
Total operating costs and expenses	56,030	45,016	106,179	105,294
Loss from operations	(22,081)	(34)	(28,364)	(21,695)
Other (expense) income:
Interest expense, net	(2,375)	(2,258)	(4,714)	(4,486)
Change in fair value of contingent consideration related to acquisitions	(285)	(146)	(1,327)	(646)
Other income (expense), net	340	69	618	(966)
Total other expenses	(2,320)	(2,335)	(5,423)	(6,098)
Loss before income taxes	(24,401)	(2,369)	(33,787)	(27,793)
Benefit (provision) for income taxes	106	23	171	(115)
Net loss	$ (24,295)	$ (2,346)	$ (33,616)	$ (27,908)
Net loss per share:
Basic and diluted ($ per share)	$ (0.35)	$ (0.04)	$ (0.50)	$ (0.43)
Weighted average shares outstanding:
Basic and diluted (shares)	68,575,021	65,466,004	67,146,188	65,167,162

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Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (24,295)	$ (2,346)	$ (33,616)	$ (27,908)
Other comprehensive (loss) income, net of income tax:
Unrealized gain on available-for-sale securities	1,149	1,806	2,510	2,585
Foreign currency translation adjustments	(315)	106	158	(1,900)
Other comprehensive income	834	1,912	2,668	685
Total comprehensive loss	$ (23,461)	$ (434)	$ (30,948)	$ (27,223)

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash Flows From Operating Activities:
Net loss	$ (33,616)	$ (27,908)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	12,480	14,129
Stock-based compensation	6,604	5,990
Accretion of debt discount, recorded to interest expense on 2018 Convertible Notes (Note 14)	2,800	2,569
Amortization of deferred financing costs, recorded to interest expense on 2018 Convertible Notes (Note 14)	345	327
Bad debt (recovery) expense	(15)	0
Impairment of intangible assets (Note 3(f))	0	7,160
Unrealized foreign currency exchange loss	3	3,992
Research and development expense recognized for the value of stock issued in connection with milestone achievement (Note 16(b)(xii))	2,419	0
Change in fair value of contingent consideration related to the EVOMELA and Talon acquisitions (Note 9)	1,327	646
Changes in operating assets and liabilities:
Accounts receivable, net	(3,904)	28,966
Other receivables	5,688	(2,757)
Inventories	(4,678)	398
Prepaid expenses	553	1,139
Deferred tax assets	0	(237)
Other assets	(1,374)	(2,991)
Accounts payable and other accrued obligations	(8,353)	(13,052)
Accrued payroll and benefits	(1,697)	(2,645)
Drug development liability	(303)	(1,296)
Acquisition related contingent obligations	(1,300)	0
Deferred revenue	(2,383)	(2,531)
Deferred tax liability	51	184
Other long-term liabilities	1,210	905
Net cash (used in) provided by operating activities	(24,143)	12,988
Cash Flows From Investing Activities:
Redemption of mutual funds	(1)	0
Purchases of property and equipment	(61)	(212)
Net cash used in investing activities	(62)	(212)
Cash Flows From Financing Activities:
Proceeds from exercise of stock options	188	996
Proceeds from sale of stock under employee stock purchase plan	383	335
Purchase and retirement of restricted stock to satisfy employees' tax liability at vesting	(665)	(515)
Payment of contingent consideration related to EVOMELA acquisition (Note 9(b))	(4,700)	0
Proceeds Received (Net of Broker Commissions and Fees )	45,067	0
Dividends paid upon conversion of Series E Convertible Voting Preferred Stock (Note 18)	(6)	0
Net cash provided by financing activities	40,267	816
Effect of exchange rates on cash and equivalents	(44)	(1,263)
Net increase in cash and cash equivalents	16,018	12,329
Cash and cash equivalents—beginning of period	139,741	129,942
Cash and cash equivalents—end of period	155,759	142,271
Supplemental disclosure of cash flow information:
Cash paid for income taxes	11	332
Cash paid for interest	$ 1,650	$ 1,650

XML

Description of Business, Basis of Presentation, and Operating Segment

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Description of Business, Basis of Presentation, and Operating Segment

DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, AND OPERATING SEGMENT

(a) Description of Business

Spectrum Pharmaceuticals, Inc. (“Spectrum”, the “Company”, “we”, “our”, or “us”) is a biotechnology company, with a primary strategy comprised of acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. In addition to an in-house clinical development organization with regulatory and data management capabilities, we have established a commercial infrastructure for our marketed products. Currently, we market six approved oncology/hematology products that target different types of non-Hodgkin's lymphoma ("NHL"), advanced metastatic colorectal cancer, acute lymphoblastic leukemia ("ALL"), and multiple myeloma ("MM").

We also have three drugs in late-stage development:

• SPI-2012 for chemotherapy-induced neutropenia in patients with breast cancer.

• QAPZOLA (formerly referred to as APAZIQUONE) for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer.

• POZIOTINIB, a novel pan-HER inhibitor used in the treatment of patients with breast cancer.

(b) Basis of Presentation

Interim Financial Statements

The interim financial data as of June 30, 2016 and 2015 is unaudited, and is not necessarily indicative of our operating results for a full year. In the opinion of our management, the interim data includes normal and recurring adjustments necessary for a fair presentation of our financial results for the three and six months ended June 30, 2016 and 2015. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations relating to interim financial statements. The December 31, 2015 balances reported herein are derived from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on March 14, 2016.

Principles of Consolidation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and with the rules and regulations of the SEC. These financial statements include the financial position, results of operations, and cash flows of Spectrum and its subsidiaries, all of which are wholly-owned (except for SPC, as discussed below). All inter-company accounts and transactions among these legal entities have been eliminated in consolidation.

Variable Interest Entity

We own fifty-percent of Spectrum Pharma Canada (“SPC”), a legal entity organized in Quebec, Canada in January 2008. Certain of our drug clinical studies are conducted through this “variable interest entity” (as defined under applicable GAAP) and we fund all of SPC’s operating costs. Since we carry the full risks and rewards of SPC, we meet the applicable GAAP criteria as being its “primary beneficiary.” Accordingly, SPC’s balance sheets and statements of operations are included in our Condensed Consolidated Financial Statements as if it were a wholly-owned subsidiary for all periods presented.

(c) Operating Segment

We operate in one reportable operating segment that is focused exclusively on developing and commercializing oncology and hematology drug products. For the three and six months ended June 30, 2016 and 2015, all of our revenue and related expenses were solely attributable to these activities. Substantially all of our assets (excluding our cash held in certain foreign bank accounts and our ZEVALIN distribution rights for the Ex-U.S. territory) are held in the U.S.

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Use of Estimates and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Use of Estimates and Summary of Significant Accounting Policies

USE OF ESTIMATES AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The preparation of financial statements in conformity with GAAP requires our management to make informed estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. However, actual values may materially differ, since estimates are inherently uncertain. On an on-going basis, our management evaluates its estimates and assumptions, including those related to (i) gross-to-net revenue adjustments; (ii) the timing of revenue recognition; (iii) the collectability of customer accounts; (iv) whether the cost of inventories can be recovered; (v) the fair value of goodwill and intangible assets; (vi) the realization of tax assets and estimates of tax liabilities; (vii) the likelihood of payment and value of contingent liabilities; (viii) the fair value of investments; (ix) the valuation of stock options and the periodic expense recognition of stock-based compensation; and (x) the potential outcome of ongoing or threatened litigation.

The estimates and assumptions that most significantly impact the presented amounts within these accompanying Condensed Consolidated Financial Statements are further described below:

(i) Revenue Recognition

(a) Product Sales: We sell our products to wholesalers/distributors (i.e., our customers), except for our U.S. sales of ZEVALIN in which case the end-user (i.e. clinic or hospital) is our customer. Our wholesalers/distributors in turn sell our products directly to clinics, hospitals, and private oncology-based practices. Revenue from our product sales is recognized when title and risk of loss have transferred to our customer, and the following additional criteria are met:

(1) appropriate evidence of a binding arrangement exists with our customer;

(2) price is substantially fixed and determinable;

(3) collection from our customer is reasonably assured;

(4) our customer’s obligation to pay us is not contingent on resale of the product;

(5) we do not have significant continued performance obligations to our customer; and

(6) we have a reasonable basis to estimate returns.

Our gross revenue is reduced by our gross-to-net (“GTN”) estimates each period, resulting in our reported “product sales, net” in the accompanying Condensed Consolidated Statements of Operations. We defer revenue recognition in full if these estimates are not reasonably determinable at the time of sale. These estimates are based upon information received from external sources (such as written and oral information obtained from our customers with respect to their period-end inventory levels, and their sales to end-users during the period), in combination with management’s informed judgments. Due to the inherent uncertainty of estimates, the actual amount we incur may be materially different than our GTN estimates, and require prospective revenue adjustments in periods after the initial sale was recorded.

Our GTN estimates are comprised of the following categories:

Product Returns Allowances: Our FUSILEV, MARQIBO, and BELEODAQ customers are permitted to return purchased product beginning at its expiration date, and within six months thereafter. Our EVOMELA customers are permitted to return purchased product beginning at six months prior to its expiration date, and within 12 months thereafter (as well as for overstock inventory, as determined by end-users). Returned product is generally not resold. Returns for expiry of ZEVALIN and FOLOTYN are not contractually, or customarily, allowed. We estimate expected returns based on our historical return rates.

Government Chargebacks: Our products are subject to pricing limits under certain federal government programs (e.g., Medicare and 340B Drug Pricing Program). Qualifying entities (i.e., end-users) purchase product from our customers at their qualifying discounted price. The chargeback amount we incur represents the difference between our contractual sales price to our customer, and the end-user’s applicable discounted purchase price under the government program. There may be significant lag time between our reported net product sales and our receipt of corresponding government chargeback claims from our customers.

Prompt Pay Discounts: Discounts for prompt payment are estimated at the time of sale, based on our eligible customers’ prompt payment history and the contractual discount percentage.

Commercial Rebates: Commercial rebates are based on (i) our estimates of end-user purchases through a group purchasing organization ("GPO"), (ii) the corresponding contractual rebate percentage tier we expect each GPO to achieve, and (iii) our estimates of the impact of any prospective rebate program changes made by us.

Medicaid Rebates: Our products are subject to state government-managed Medicaid programs, whereby rebates are issued to participating state governments. These rebates arise when a patient treated with our product is covered under Medicaid, resulting in a discounted price for our product under the applicable Medicaid program. Our Medicaid rebate accrual calculations require us to project the magnitude of our sales, by state, that will be subject to these rebates. There is a significant time lag in us receiving rebate notices from each state (generally several months or longer after our sale is recognized). Our estimates are based on our historical claim levels by state, as supplemented by management’s judgment.

Distribution, Data, and GPO Administrative Fees: Distribution, data, and GPO administrative fees are paid to authorized wholesalers/distributors of our products (except for U.S. sales of ZEVALIN) for various commercial services, including: contract administration, inventory management, delivery of end-user sales data, and product returns processing. These fees are based on a contractually-determined percentage of our applicable sales.

(b) License Fees: We recognize revenue for our licensing of intellectual property to third-parties (out-licenses), based on the contractual terms of each agreement and our application of pertinent GAAP. This revenue may be associated with upfront license fees, milestone payments from our licensees’ sales or regulatory achievements, and royalties from our licensees’ sales in applicable territories.

(c) Service Revenue: We receive fees from third-parties under certain arrangements for our sales and marketing services, research and development activities, clinical trial management, and supply chain services. Payment may be triggered by contractual fixed payment schedules, the successful completion of a phase of development, results from a clinical trial, regulatory approval events, or completion of product delivery in our capacity as an agent in such arrangement. We recognize revenue when the corresponding milestone is achieved, or the revenue is otherwise earned and due to us through our on-going activities.

(d) New Revenue Recognition Standard: On April 1, 2015, the FASB voted for a one-year deferral of the effective date of the new revenue recognition standard, ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is now effective for us beginning January 1, 2018, requiring revenue recognition in a manner that reasonably reflects the delivery of our goods or services to customers in return for expected consideration. To achieve this core principle, the guidance provides the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

We intend to apply the cumulative effect transition method of ASU 2014-09, and we continue to evaluate the impact of this new standard on our current revenue recognition models for product sales, license fees, and service revenue, as described above.

(ii) Cash and Equivalents

Our cash and equivalents consist of bank deposits and highly liquid investments with maturities of three months or less from the purchase date.

(iii) Marketable Securities

Our marketable securities consist of our holdings in mutual funds and bank certificates of deposit. Since we classify these securities as “available-for-sale” under applicable GAAP, any unrealized gains or losses from their change in value is reflected in “unrealized gain on available-for-sale securities” on the accompanying Condensed Consolidated Statements of Comprehensive Loss. Realized gains and losses on available-for-sale securities are included in “other income (expense), net” on the accompanying Condensed Consolidated Statements of Operations.

(iv) Accounts Receivable

Our accounts receivables are derived from our product sales and license fees (our service revenue is recorded in "other receivables"), and do not bear interest. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses in our existing accounts receivable. Account balances are charged off against the allowance after appropriate collection efforts are exhausted.

(v) Inventories

We value our inventory at the lower of (i) the actual cost of its purchase or manufacture, or (ii) its current market value. Inventory cost is determined on the first-in, first-out method ("FIFO"). We regularly review our inventory quantities in process of manufacture and on hand. When appropriate, we record a provision for obsolete and excess inventory to derive its new cost basis, which takes into account our sales forecast by product and corresponding expiry dates.

Direct and indirect manufacturing costs related to the production of inventory prior to U.S. Food and Drug Administration ("FDA") approval are expensed through “research and development,” rather than being capitalized to inventory cost.

(vi) Property and Equipment

Our property and equipment is stated at historical cost, and is depreciated on a straight-line basis over an estimated useful life that corresponds with its designated asset category. We evaluate the recoverability of “long-lived assets” (which includes property and equipment) whenever events or changes in circumstances in our business indicate that the asset’s carrying amount may not be recoverable through on-going operations.

(vii) Goodwill and Intangible Assets

Our goodwill represents the excess of our business acquisition cost over the estimated fair value of the net assets acquired in the corresponding transaction. Goodwill has an indefinite accounting life and is therefore not amortized. Instead, goodwill is evaluated for impairment on an annual basis (as of each October 1st), unless we identify impairment indicators that would require earlier testing.

We evaluate the recoverability of indefinite-lived intangible assets at least annually, or whenever events or changes in our business indicate that an intangible asset’s (whether indefinite or definite-lived) carrying amount may not be recoverable. Such circumstances could include, but are not limited to the following:

(a) a significant decrease in the market value of an asset;

(b) a significant adverse change in the extent or manner in which an asset is used; or

(c) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.

Intangible assets with finite useful lives are amortized over their estimated useful lives on a straight-line basis. We review these assets for potential impairment if/when facts or circumstances suggest that the carrying value of these assets may not be recoverable.

(viii) Stock-Based Compensation

Stock-based compensation expense for equity awards granted to our employees and members of our board of directors is recognized on a straight-line basis over each award's vesting period. Recognized compensation expense is net of an estimated forfeiture rate, representing the percentage of awards that are expected to be forfeited (by termination of employment or service) prior to vesting. We use the Black-Scholes option pricing model to determine the fair value of stock options (as of the date of grant) which carry service conditions for vesting. When applicable, we use the Monte Carlo valuation model to value equity awards (as of the date of grant) which carry combined market conditions and service conditions for vesting.

The calculation of the fair value of stock options on the date of grant, and the recognition of stock-based compensation expense over the appropriate time period, requires uncertain assumptions, including (a) the pre-vesting forfeiture rate of the stock option, (b) the term of the stock option, (c) the stock price volatility over the term of the stock option, and (d) the risk-free interest rate over the term of the stock option. 

We estimate forfeiture rates based on our employees’ overall forfeiture history, which we believe will be representative of future results. We estimate the expected term of stock options granted based on our employees’ historical exercise patterns, which we believe will be representative of their future behavior. We estimate the volatility of our common stock on the date of grant based on historical volatility of our common stock for a look-back period that corresponds with the expected term. We estimate the risk-free interest rate based upon the U.S. Treasury yields in effect at award grant, for a period equaling the stock options’ expected term.

(ix) Foreign Currency Translation

We translate the assets and liabilities of our foreign subsidiaries that are stated in their functional currencies (i.e., local operating currencies), to U.S. dollars at the rates of exchange in effect at the reported balance sheet date. Revenues and expenses are translated using the monthly average exchange rates during the reported period. Unrealized gains and losses from the translation of our subsidiaries’ financial statements (that are initially denominated in the corresponding functional currency) are included as a separate component of “accumulated other comprehensive loss” in the Condensed Consolidated Balance Sheets.

We record foreign currency transactions, when initially denominated in a currency other than the respective functional currency of our subsidiary, at the prevailing exchange rate on the date of the transaction. Resulting unrealized foreign exchange gains and losses from transactions with third parties are included in “accumulated other comprehensive loss” in the Condensed Consolidated Balance Sheets.

All unrealized foreign exchange gains and losses associated with our intercompany loans are included in "accumulated other comprehensive loss" in the Condensed Consolidated Balance Sheets, as these loans with our foreign subsidiaries are not expected to be settled in the "foreseeable future." For the period January 1, 2015 through March 31, 2015, unrealized foreign exchange gains and losses associated with our intercompany loans were included in "accumulated other comprehensive loss" in the Condensed Consolidated Balance Sheets and in "other income (expense), net" in the Condensed Consolidated Statements of Operations.

(x) Basic and Diluted Net (Loss) Income per Share

We calculate basic and diluted net (loss) income per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss, basic and diluted loss per share are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include only dilutive stock options, warrants, and other common stock equivalents outstanding during the period.

(xi) Income Taxes

Deferred tax assets and liabilities are recorded based on the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the financial statements, as well as operating losses and tax credit carry forwards using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain.

We have recorded a valuation allowance to reduce our deferred tax assets, because we believe that, based upon a weighting of positive and negative factors, it is more likely than not that these deferred tax assets will not be realized. If/when we determine that our deferred tax assets are realizable, an adjustment to the corresponding valuation allowance would increase our net income in the period that such determination was made.

In the event that we are assessed interest and/or penalties from taxing authorities that have not been previously accrued, such amounts would be included in “benefit (provision) for income taxes” within the Condensed Consolidated Statements of Operations in the period the notice was received.

(xii) Research and Development Costs

Our research and development costs are expensed as incurred, or as certain milestone payments become due, generally triggered by clinical or regulatory events.

(xiii) Fair Value Measurements

We determine measurement-date fair value based on the proceeds that would be received through the sale of the asset, or that we would pay to settle or transfer the liability, in an orderly transaction between market participants. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used in descending order to measure fair value. These tiers include the following:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are publicly accessible at the measurement date.

Level 2: Observable prices that are based on inputs not quoted on active markets, but that are corroborated by market data. These inputs may include quoted prices for similar assets or liabilities or quoted market prices in markets that are not active to the general public.

Level 3: Unobservable inputs are used when little or no market data is available.

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Balance Sheet Account Detail

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Balance Sheet Account Detail

BALANCE SHEET ACCOUNT DETAIL

The composition of selected financial statement captions that comprise the accompanying Condensed Consolidated Balance Sheets are summarized below:

(a) Cash and Cash Equivalents and Marketable Securities

As of June 30, 2016 and December 31, 2015, our holdings included within “cash and cash equivalents” and “marketable securities” were at major financial institutions.

Our investment policy requires that investments in marketable securities be in only highly-rated instruments, which are primarily U.S. treasury bills or U.S. treasury-backed securities, and limited investments in securities of any single issuer. We maintain cash balances in excess of federally insured limits with reputable financial institutions. To a limited degree, the Federal Deposit Insurance Corporation ("FDIC") and other third parties insure these investments. However, these investments are not insured against the possibility of a complete loss of earnings or principal and are inherently subject to the credit risk related to the continued credit worthiness of the underlying issuer and general credit market risks. We manage such risks on our portfolio by investing in highly liquid, highly rated instruments, and limit investing in long-term maturity instruments.

The carrying amount of our equity securities, money market funds, bank certificate of deposits ("Bank CDs"), and mutual funds approximates their fair value (utilizing Level 1 or Level 2 inputs – see Note 2(xiii)) because of our ability to immediately convert these instruments into cash with minimal expected change in value.

The following is a summary of our “cash and cash equivalents” and “marketable securities”:

											Marketable Securities
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents			Current		Long Term
June 30, 2016
Bank deposits	$	75,582	$	—	$	—	$	75,582	$	75,582		$	—	$	—
Money market funds	80,177		—		—		80,177		80,177			—		—
Bank certificates of deposits	247		—		—		247		—			247		—
Total cash and equivalents and marketable securities	$	156,006	$	—	$	—	$	156,006	$	155,759		$	247	$	—
December 31, 2015
Bank deposits	$	59,625	$	—	$	—	$	59,625	$	59,625		$	—	$	—
Money market funds	80,116		—		—		80,116		80,116			—		—
Bank certificates of deposits	245		—		—		245		—			245		—
Total cash and equivalents and marketable securities	$	139,986	$	—	$	—	$	139,986	$	139,741		$	245	$	—

As of June 30, 2016, none of these securities had been in a continuous unrealized loss position longer than one year.

(b) Property and Equipment, Net of Accumulated Depreciation

“Property and equipment, net of accumulated depreciation” consist of the following:

	June 30, 2016			December 31, 2015
Computer hardware and software	$	3,823		$	3,785
Laboratory equipment	622			608
Office furniture	355			355
Leasehold improvements	2,880			2,872
Property and equipment, at cost	7,680			7,620
(Less): Accumulated depreciation	(7,037		)	(6,702		)
Property and equipment, net of accumulated depreciation	$	643		$	918

Depreciation expense (included within “total operating costs and expenses” in the accompanying Condensed Consolidated Statements of Operations) for the six months ended June 30, 2016 and 2015, was $0.3 million and $0.4 million, respectively.

(c) Inventories

“Inventories” consist of the following:

	June 30, 2016			December 31, 2015
Raw materials	$	2,199		$	1,606
Work-in-process*	7,020			4,228
Finished goods	2,792			1,498
(Less:) Non-current portion of inventories included within "other assets" **	(5,606		)	(3,156		)
Inventories	$	6,405		$	4,176

* In January 2016, we received $3.4 million of ZEVALIN antibody materials for its future manufacture (representing strategic long-term supply).

** The "non-current" portion of inventories is presented within "other assets" in the accompanying Condensed Consolidated Balance Sheet at June 30, 2016. This value of $5.6 million represents product that we expect to sell beyond June 30, 2017.

(d) Prepaid expenses and other assets

“Prepaid expenses and other assets” consist of the following:

	June 30, 2016		December 31, 2015
Prepaid operating expenses	$	2,954	$	3,507
Current portion of debt issuance costs*	—		—
Prepaid expenses and other assets	$	2,954	$	3,507

* Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14) within our accompanying Consolidated Balance Sheets, in accordance with the FASB-issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). These amounts were $1.8 million and $2.2 million (including current and non-current portions) as of June 30, 2016 and December 31, 2015, respectively.

(e) Other receivables

“Other receivables” consist of the following:

	June 30, 2016		December 31, 2015
Income tax receivable	$	1,209	$	1,301
Insurance receivable	350		7,100
Mundipharma promissory note	—		2,215
CASI note - short term*	1,500		—
Eagle receivable for services and support costs (Note 13)	1,939		—
Research and development expenses - reimbursements due	1,699		1,699
Other miscellaneous receivables	271		257
Other receivables	$	6,968	$	12,572

* This full balance was prospectively reclassified beginning March 31, 2016 to "other receivables" (presented within current assets on the accompanying Condensed Consolidated Balance Sheets) from "other assets" (presented within non-current assets) due to this note's maturity date of March 17, 2017 (i.e., within 12 months of June 30, 2016) - see Note 10.

(f) Intangible Assets and Goodwill

“Intangible assets, net of accumulated amortization and impairment charges” consist of the following:

			June 30, 2016
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Full Amortization Period (months)	Remaining Amortization Period (months)
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600	n/a	n/a
EVOMELA distribution rights (1)	7,700		(148		)	—			—			7,552		156	153
BELEODAQ distribution rights	25,000		(3,750		)	—			—			21,250		160	136
MARQIBO distribution rights	26,900		(10,703		)	—			—			16,197		81	45
FOLOTYN distribution rights (2)	118,400		(34,498		)	—			—			83,902		152	77
ZEVALIN distribution rights – U.S.	41,900		(32,346		)	—			—			9,554		123	33
ZEVALIN distribution rights – Ex-U.S.	23,490		(13,634		)	(4,006		)	—			5,850		96	45
FUSILEV distribution rights (3)	16,778		(9,618		)	—			(7,160		)	—		56	0
FOLOTYN out-license (4)	27,900		(10,470		)	—			(1,023		)	16,407		110	73
Total intangible assets	$	305,668	$	(115,167	)	$	(4,006	)	$	(8,183	)	$	178,312

(1) The FDA approval of EVOMELA in March 2016 triggered a $6 million payment due to CyDex Pharmaceuticals, Inc. (a wholly-owned subsidiary of Ligand Pharmaceuticals Incorporated). This event also resulted in a reclassification of our $7.7 million "EVOMELA IPR&D" to "EVOMELA distribution rights" due to our ability to begin its commercialization with this FDA approval. Amortization commenced on April 1, 2016, in accordance with our capitalization policy for intangible assets.

(2) Beginning June 2016, we adjusted the amortization period of our FOLOTYN distribution rights to November 2022 from March 2025, representing the period through which we expect to have patent protection from generic competition (see Note 16(g)).

(3) On February 20, 2015, the U.S. District Court for the District of Nevada found the patent covering FUSILEV to be invalid, which was upheld on appeal. On April 24, 2015, Sandoz began to commercialize a generic version of FUSILEV. This represented a “triggering event” under applicable GAAP in evaluating the value of our FUSILEV distribution rights as of March 31, 2015, resulting in a $7.2 million impairment charge (non-cash) in the first quarter of 2015. We accelerated amortization expense recognition in 2015 for the remaining net book value of FUSILEV distribution rights.

(4) On May 29, 2013, we amended our FOLOTYN collaboration agreement with Mundipharma. As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and their royalty rates and milestone payments to us were modified. This constituted a change under which we originally valued the FOLOTYN out-license as part of business combination accounting, resulting in an impairment charge (non-cash) of $1.0 million in the second quarter of 2013.

			December 31, 2015
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600
EVOMELA IPR&D	7,700		—			—			—			7,700
BELEODAQ distribution rights	25,000		(2,812		)	—			—			22,188
MARQIBO distribution rights	26,900		(8,544		)	—			—			18,356
FOLOTYN distribution rights	118,400		(29,474		)	—			—			88,926
ZEVALIN distribution rights – U.S.	41,900		(30,608		)	—			—			11,292
ZEVALIN distribution rights – Ex-U.S.	23,490		(12,632		)	(4,353		)	—			6,505
FUSILEV distribution rights	16,778		(9,618		)	—			(7,160		)	—
FOLOTYN out-license	27,900		(9,109		)	—			(1,023		)	17,768
Total intangible assets	$	305,668	$	(102,797	)	$	(4,353	)	$	(8,183	)	$	190,335

Intangible asset amortization expense recognized during the six months ended June 30, 2016 was $12.1 million, as compared to $20.9 million of amortization and impairment expense recognized in the prior year period (of which $7.2 million relates to the impairment of the FUSILEV distribution rights, and the remaining $13.7 million relates to scheduled amortization expense).

Estimated intangible asset amortization expense for the remainder of 2016 and the five succeeding fiscal years and thereafter is as follows:

Years Ending December 31,
Remainder of 2016	$	13,810
2017	27,620
2018	27,620
2019	25,014
2020	19,736
2021	18,266
2022 and thereafter	28,646
	$	160,712

“Goodwill” is comprised of the following:

	June 30, 2016			December 31, 2015
Acquisition of Talon (MARQIBO rights)	$	10,526		$	10,526
Acquisition of ZEVALIN Ex-U.S. distribution rights	2,525			2,525
Acquisition of Allos (FOLOTYN rights)	5,346			5,346
Foreign currency exchange translation effects	(400		)	(437		)
Goodwill	$	17,997		$	17,960

(g) Other assets

“Other assets” are comprised of the following:

	June 30, 2016		December 31, 2015
Equity securities and secured promissory note - CASI (see Note 10)*	$	8,300	$	6,689
Supplies and deposits	171		185
2018 Convertible Notes issuance costs (excluding current portion)**	—		—
Executive officer life insurance – cash surrender value	11,478		9,181
Inventories - non-current portion	5,606		3,156
Other miscellaneous assets	45		—
Other assets	$	25,600	$	19,211

* These equity securities were excluded from “marketable securities” (see Note 3(a)) due to our intent to hold these securities for at least one year beyond June 30, 2016, as discussed in Note 10. Unrealized gains from these equity securities were recognized through “unrealized gain on available-for-sale securities" within the Condensed Consolidated Statements of Comprehensive Loss, and were $2.5 million for the six months ended June 30, 2016.

** Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14) within our accompanying Consolidated Balance Sheets, in accordance with ASU 2015-03. These amounts were $1.8 million and $2.2 million (including current and non-current portions) as of June 30, 2016 and December 31, 2015, respectively.

(h) Accounts payable and other accrued liabilities

“Accounts payable and other accrued liabilities” are comprised of the following:

	June 30, 2016		December 31, 2015
Trade accounts payable and other accrued liabilities	$	29,912	$	26,684
Accrued rebates	7,757		18,166
Accrued product royalty	4,372		4,908
Allowance for returns	1,734		1,394
Accrued data and distribution fees	1,983		1,830
Accrued GPO administrative fees	537		1,058
Accrued inventory management fee	412		498
Allowance for chargebacks	1,501		2,001
Accounts payable and other accrued liabilities	$	48,208	$	56,539

Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets specifically for gross-to-net ("GTN") estimates (see Note 2(i)) are as follows:

	Rebates and Chargebacks			Data and Distribution, GPO Fees, and Inventory Management Fees			Returns
Balance as of December 31, 2014	$	45,822		$	8,284		$	1,135
Add: provisions	75,498			15,928			1,486
(Less): credits or actual allowances	(101,153		)	(20,826		)	(1,227		)
Balance as of December 31, 2015	20,167			3,386			1,394
Add: provisions	41,222			6,001			1,018
(Less): credits or actual allowances	(52,131		)	(6,455		)	(678		)
Balance as of June 30, 2016	$	9,258		$	2,932		$	1,734

(i) Deferred revenue

Deferred revenue (current and non-current) is comprised of the following:

	June 30, 2016		December 31, 2015
Mundipharma deferred revenue (see Note 11)	$	2,175	$	—
EVOMELA deferred revenue*	1,622		—
FUSILEV deferred revenue**	—		6,083
Dr. Reddy's out-license (see Note 16(b)(iii))	414		430
Deferred revenue	$	4,211	$	6,513

*We commercialized EVOMELA beginning in April 2016, and have deferred revenue recognition (see Note 2(i)(a)) for any product shipped to our distributors, but not ordered and received by end-users as of June 30, 2016.

**In the third quarter 2015, we deferred revenue recognition related to certain FUSILEV product shipments that did not meet our revenue recognition criteria (see Note 2(i)(a)), aggregating $9.9 million. Specifically, this deferral resulted from our inability to concurrently estimate future rebate values (with requisite precision) offered to our customers in order to compete with generic products. During the fourth quarter of 2015, we recognized $3.8 million for these third quarter shipments, and $6.1 million remained deferred as of December 31, 2015. In the first quarter 2016, this $6.1 million of deferred revenue was recognized in full.

(j) Other long-term liabilities

Other long-term liabilities are comprised of the following:

	June 30, 2016		December 31, 2015
Accrued executive deferred compensation	$	7,672	$	6,458
Deferred rent (non-current portion)	219		248
Clinical study holdback costs, non-current	32		—
Other tax liabilities	738		738
Other long-term liabilities	$	8,661	$	7,444

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Gross-to-Net Product Sales

6 Months Ended

Jun. 30, 2016

Revenue, Net [Abstract]

Gross-to-Net Product Sales

GROSS-TO-NET PRODUCT SALES

The below table presents a GTN product sales reconciliation for the accompanying Condensed Consolidated Statement of Operations:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Gross product sales	$	56,439		$	52,800		$	114,450		$	115,398
Commercial rebates and government chargebacks	(21,270		)	(13,705		)	(41,222		)	(31,850		)
Data and distribution fees, GPO fees, and inventory management fees	(3,774		)	(3,635		)	(6,001		)	(9,205		)
Prompt pay discounts	(80		)	(1		)	(80		)	(1		)
Product returns allowance	(428		)	(315		)	(1,018		)	(785		)
Net product sales	$	30,887		$	35,144		$	66,129		$	73,557

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Net Product Sales by Geographic Region and Product Line, and Composition of License Fees and Service Revenue

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Net Product Sales by Geographic Region and Product Line, and Composition of License Fees and Service Revenue

NET PRODUCT SALES BY GEOGRAPHIC REGION AND PRODUCT LINE, AND COMPOSITION OF LICENSE FEES AND SERVICE REVENUE

The below table presents our net product sales by geography for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
United States	$	30,037	97.2	%	$	33,676	95.8	%	$	63,816	96.5	%	$	70,284	95.6	%
International:
Europe	850		2.8	%	514		1.5	%	2,313		3.5	%	1,097		1.5	%
Asia Pacific*	—		—	%	954		2.7	%	—		—	%	2,176		3.0	%
Total international	850		2.8	%	1,468		4.2	%	2,313		3.5	%	3,273		4.5	%
Net product sales	$	30,887	100.0	%	$	35,144	100.0	%	$	66,129	100.0	%	$	73,557	100.0	%

* See Note 11 for discussion of our November 2015 out-license for Asia Pacific territory to Mundipharma.

The below table presents our net product sales by product line for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
FUSILEV	$	10,467	33.9	%	$	14,329	40.8	%	$	25,676	38.8	%	$	34,496	46.9	%
FOLOTYN	10,970		35.5	%	12,222		34.8	%	24,262		36.7	%	21,538		29.3	%
ZEVALIN	2,811		9.1	%	4,802		13.7	%	5,595		8.5	%	9,023		12.3	%
MARQIBO	2,067		6.7	%	2,080		5.9	%	2,996		4.5	%	3,974		5.4	%
BELEODAQ	3,664		11.9	%	1,711		4.9	%	6,692		10.1	%	4,526		6.2	%
EVOMELA	908		2.9	%	—		—	%	908		1.4	%	—		—	%
Net product sales	$	30,887	100.0	%	$	35,144	100.0	%	$	66,129	100.0	%	$	73,557	100.0	%

The below table presents our license fee and service revenue by source for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
Out-license to Servier in Canada territory (Note 12)	$	—	—	%	$	—	—	%	$	6,000	51.3	%	$	—	—	%
Co-Promotion with Eagle (Note 13)	2,398		78.3	%	—		—	%	4,332		37.1	%	—		—	%
Out-license to Mundipharma in China and other ex-U.S. territories (Note 11 and 15)	629		20.5	%	144		1.5	%	1,313		11.2	%	336		3.3	%
Out-license to CASI in China territory (Note 10)	—		—	%	9,682		98.4	%	—		—	%	9,682		96.4	%
Other license fees and service revenues	35		1.1	%	12		0.1	%	41		0.4	%	24		0.2	%
License fees and service revenues	$	3,062	100.0	%	$	9,838	100.0	%	$	11,686	100.0	%	$	10,042	100.0	%

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

We classify our stock-based compensation expense (inclusive of our incentive stock plan, employee stock purchase plan, and 401(k) contribution matching program) in the accompanying Condensed Consolidated Statements of Operations, based on the department to which the recipient belongs. Stock-based compensation expense included within “Total operating costs and expenses” for the three and six months ended June 30, 2016 and 2015 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of product sales	$	27	$	22	$	54	$	22
Research and development	610		419		991		852
Selling, general and administrative	2,790		3,087		5,559		5,116
Total stock-based compensation	$	3,427	$	3,528	$	6,604	$	5,990

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Net Loss Per Share

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Net Loss Per Share

NET LOSS PER SHARE

Net loss per share was computed by dividing net loss by the weighted average number of common shares outstanding for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net loss	$	(24,295	)	$	(2,346	)	$	(33,616	)	$	(27,908	)
Weighted average shares – basic and diluted	68,575,021			65,466,004			67,146,188			65,167,162
Net loss per share – basic and diluted	$	(0.35	)	$	(0.04	)	$	(0.50	)	$	(0.43	)

The below outstanding securities were excluded from the above calculation of net loss per share because their impact would have been anti-dilutive due to net loss per share in the three and six months ended June 30, 2016 and 2015, as summarized below:

	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
2018 Convertible Notes	11,401,284	11,401,284	11,401,284	11,401,284
Common stock options	2,253,595	1,383,667	1,508,705	1,465,449
Restricted stock awards	2,472,520	1,544,492	2,472,520	1,544,492
Common stock warrants	32,868	30,236	2,475	37,470
Preferred stock	—	40,000	—	40,000
Total	16,160,267	14,399,679	15,384,984	14,488,695

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Fair Value Measurements

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The table below summarizes certain asset and liability fair values that are included within our accompanying Condensed Consolidated Balance Sheets, and their designations among three fair value measurement categories:

	June 30, 2016 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	247	$	—	$	247
Money market currency funds	—		80,177		—		80,177
Equity securities	8,300		—		—		8,300
Mutual funds	—		45		—		45
Deferred compensation investments, including life insurance cash surrender value	—		11,478		—		11,478
	$	8,300	$	91,947	$	—	$	100,247
Liabilities:
Deferred executive compensation liability	$	—	$	7,672	$	—	$	7,672
Drug development liability (Note 15)	—		—		14,383		14,383
Talon CVR (Note 9(a))	—		—		1,931		1,931
Corixa Liability	—		—		62		62
	$	—	$	7,672	$	16,376	$	24,048

	December 31, 2015 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	245	$	—	$	245
Money market currency funds	—		80,116		—		80,116
Equity securities	5,189		—		—		5,189
Deferred compensation investments, including life insurance cash surrender value	—		9,181		—		9,181
	$	5,189	$	89,542	$	—	$	94,731
Liabilities:
Deferred executive compensation liability	$	—	$	6,458	$	—	$	6,458
Drug development liability	—		—		14,686		14,686
Ligand Contingent Consideration	—		—		5,227		5,227
Talon CVR	—		—		1,377		1,377
Corixa Liability	—		—		62		62
	$	—	$	6,458	$	21,352	$	27,810

We did not have any transfers between Levels 1 and 2 for all periods presented. The following presents a roll forward of our liabilities for which we utilize Level 3 inputs in determining period-end value. These liabilities are included on our Condensed Consolidated Balance Sheets within “acquisition-related contingent obligations” and “drug development liability”. The basis of the various Level 3 valuationinputs are discussed in the Notes to these accompanying Condensed Consolidated Financial Statements.

Our carrying amounts of financial instruments such as cash equivalents, accounts receivable, prepaid expenses, accounts payable, and accrued liabilities, excluding acquisition-related contingent obligations, approximate their related fair values due to their short-term nature.

	Fair Value Measurements of Unobservable Inputs (Level 3)
Balance at December 31, 2014	$	23,127
Deferred drug development costs	(1,099		)
Ligand Contingent Consideration fair value adjustment	326
Talon CVR fair value adjustment	(1,002		)
Balance at December 31, 2015	21,352
Settlement of Ligand Contingent Consideration liability (seeNote 9(b))	(6,000		)
Deferred drug development costs (see Note 15)	(303		)
Ligand Contingent Consideration fair value adjustment prior to settlement (see Note 9(b))	773
Talon CVR fair value adjustment (see Note 9(a))	554
Balance at June 30, 2016*	$	16,376

* This amount is comprised of the current and non-current portions of “drug development liability” and “acquisition-related contingent obligations” on our accompanying Condensed Consolidated Balance Sheets.

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Business Combinations and Contingent Consideration

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Business Combinations and Contingent Consideration

BUSINESS COMBINATIONS AND CONTINGENT CONSIDERATION

(a) Acquisition of Talon Therapeutics, Inc. and Related Contingent Consideration

Overview of Talon Acquisition

On July 17, 2013, we purchased all of the outstanding shares of common stock of Talon Therapeutics, Inc. (“Talon”). Through the acquisition of Talon, we gained worldwide rights to MARQIBO. The Talon purchase consideration comprised of (i) an aggregate upfront cash amount of $11.3 million, (ii) issuance of 3.0 million shares of our common stock, then equivalent to $26.3 million (based on a closing price of $8.77 per share on July 17, 2013), and (iii) the issuance of contingent value rights (“CVR”) initially valued at $6.5 million.

The CVR was valued using a valuation model that probability-weights expected outcomes (ranging from 50% to 100%) and discounts those amounts to their present value, using an appropriate discount rate (these represent unobservable inputs and are therefore classified as Level 3 inputs – see Note 2 (xiii)). The CVR has a maximum payout of $195 million if all sales and regulatory approval milestones are achieved, as summarized below:

• $5 million upon the achievement of net sales of MARQIBO in excess of $30 million in any calendar year

• $10 million upon the achievement of net sales of MARQIBO in excess of $60 million in any calendar year

• $25 million upon the achievement of net sales of MARQIBO in excess of $100 million in any calendar year

• $50 million upon the achievement of net sales of MARQIBO in excess of $200 million in any calendar year

• $100 million upon the achievement of net sales of MARQIBO in excess of $400 million in any calendar year

• $5 million upon receipt of marketing authorization from the FDA regarding Menadione Topical Lotion

Talon CVR Fair Value as of June 30, 2016 and December 31, 2015

The CVR fair value will continue to be evaluated on a quarterly basis. Current and future changes in its fair value results from the likelihood and timing of milestone achievement and/or the corresponding discount rate applied thereon. Adjustments to CVR fair value are recognized within “change in fair value of contingent consideration related to acquisitions” in the accompanying Condensed Consolidated Statements of Operations.

	Fair Value of Talon CVR
December 31, 2015	$	1,377
Fair value adjustment for the six months ended June 30, 2016	554
June 30, 2016	$	1,931

(b) Acquisition of Rights to EVOMELA and Related Contingent Consideration

Overview of Acquisition of Rights to EVOMELA

In March 2013, we completed the acquisition of exclusive global development and commercialization rights to Captisol-enabled®, propylene glycol-free MELPHALAN (which we recently branded as “EVOMELA”) for use as a conditioning treatment prior to autologous stem cell transplant for patients with MM. We acquired these rights from CyDex Pharmaceuticals, Inc. a wholly-owned subsidiary of Ligand Pharmaceuticals Incorporated (“Ligand”) for an initial license fee of $3 million.

We accounted for this transaction as a business combination, which required that assets acquired and liabilities assumed be recognized on the balance sheet at their fair values as of the transaction date.

We are required to pay Ligand additional amounts up to an aggregate $60 million (exclusive of the $6 million milestone payment triggered in March 2016, as further discussed below), upon the achievement of certain regulatory milestones and net sales thresholds, and we also assumed responsibility for EVOMELA's ongoing clinical and regulatory development program. We also must pay royalties of 20% on our future net sales of EVOMELA in all territories.

Consideration Transferred

The acquisition-date fair value of the consideration transferred consisted of the following:

Cash consideration	$	3,000
Ligand Contingent Consideration	4,700
Total purchase consideration	$	7,700

Fair Value Estimate of Asset Acquired and Liability Assumed

The total purchase consideration is allocated to the acquisition of the net tangible and intangible assets based on their estimated fair values as of the closing date. The allocation of the total purchase price to the net assets acquired is as follows:

EVOMELA IPR&D $ 7,700

We estimated the fair value of the in-process research and development using the income approach. The income approach uses valuation techniques to convert future amounts to a single present amount (discounted). Our measurement is based on the value indicated by current market expectations about those future amounts. The fair value estimate took into account our estimates of future incremental earnings that may be achieved upon regulatory approval, promotion, and distribution associated with the rights, and included estimated cash flows of approximately 10 years and a discount rate of approximately 25%.

The fair value of the contingent consideration liability assumed was determined using the probability of success and the discounted cash flow method of the income approach (representing unobservable inputs and are therefore represent Level 3 values - see Note 2(xiii)). In March 2016, the FDA approved EVOMELA, triggering a $6 million milestone payment to Ligand (“Ligand Contingent Consideration”) that was paid in April 2016. "EVOMELA IPR&D" of $7.7 million was reclassified to "EVOMELA distribution rights" within "Intangible assets, net of accumulated amortization and impairment charges" in the accompanying Condensed Consolidated Balance Sheets as of June 30, 2016 (see Note 3(f)). Amortization related to this intangible asset commenced on April 1, 2016.

Ligand Contingent Consideration Fair Value as of June 30, 2016 and December 31, 2015

The fair value of the Ligand Contingent Consideration was the full $6 million payment due upon milestone achievement. Accordingly, in the first quarter of 2016, we recorded a $0.8 million adjustment to the “change in fair value of contingent consideration related to acquisitions” in the accompanying Condensed Consolidated Statements of Operations.

	Fair Value of Ligand Contingent Consideration
December 31, 2015	$	5,227
Fair value adjustment for the three months ended March 31, 2016	773
Payment to Ligand in April 2016	$	(6,000	)
June 30, 2016	$	—

(c) Allos Acquisition

We acquired Allos Therapeutics, Inc. (“Allos”) on September 5, 2012, which was accounted for as a business combination. Our total cash consideration for this acquisition was $205.2 million, through which we acquired FOLOTYN distribution rights. We have no contingent consideration obligations as part of this transaction.

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Out-License of Marqibo, Zevalin, and Evolema in China Territory to CASI

6 Months Ended

Jun. 30, 2016

Other Commitments [Abstract]

Out-License Of Zevalin, Folotyn, Beleodaq, and Marqibo In Canada Territory To Servier/Out-License of Marqibo, Zevalin, and Evolema in China Territory to CASI

OUT-LICENSE OF MARQIBO, ZEVALIN, AND EVOMELA IN CHINA TERRITORY TO CASI

Overview of CASI Out-License

On September 17, 2014, we executed three product out-license agreements with a perpetual term (collectively, the “CASI Out-License”) with CASI Pharmaceuticals, Inc. (“CASI”), a publicly-traded biopharmaceutical company (NASDAQ: CASI) with a primary focus on the China market. Under the CASI Out-License, we granted CASI the exclusive rights to distribute two of our commercialized oncology drugs, ZEVALIN and MARQIBO, and our Phase 3 drug candidate, EVOMELA (“CASI Out-Licensed Products”) in greater China (which includes Taiwan, Hong Kong and Macau). In return, we received CASI equity for the rights related to ZEVALIN and EVOMELA and a secured promissory note for the rights related to MARQIBO. Additionally, under certain conditions which generally expire on September 17, 2019, we have a right to receive additional CASI common stock in order to maintain our post-investment ownership percentage if CASI issues additional securities. In February 2016, we acquired an additional 1.7 million common shares of CASI at par value, resulting in our total holding of 7.1 million common shares as of June 30, 2016.

CASI will be responsible for the development and commercialization of these three drugs, including the submission of import drug registration applications to regulatory authorities and conducting any confirmatory clinical studies in greater China. We will provide CASI with future commercial supply of the CASI Out-Licensed Products under typical market terms.

Proceeds Received in the Third Quarter of 2014

The proceeds we received, and its fair value on the CASI Out-License execution date, consisted of the following:

CASI common stock (5.4 million shares)	$	8,649	(a)
CASI secured promissory note due March 17, 2017, net of fair value discount ($1.5 million face value and 0.5% annual coupon)	1,310		(b)
Total consideration received, net of fair value discount	$	9,959

(a) Value determined based on the September 17, 2014 closing price of 5.4 million shares of CASI common stock on the NASDAQ Capital Market of $1.60 per share. Our current intention is to hold these securities on a long-term basis. Accordingly, we have presented its value of $8.3 million as of June 30, 2016 within "other assets" (rather than "marketable securities") on our accompanying Condensed Consolidated Balance Sheets. The change in fair value of these securities is reported within “unrealized gain on available-for-sale securities" on the Condensed Consolidated Statements of Comprehensive Loss.

(b) Value estimated using the terms of the $1.5 million promissory note, the application of a synthetic debt rating based on CASI’s publicly-available financial information, and the prevailing interest yields on similar public debt securities as of September 17, 2014. The face value of the promissory note as of June 30, 2016 is included within "other receivables" on the accompanying Condensed Consolidated Balance Sheets.

In addition, CASI will be responsible for paying any royalties or milestones that we are obligated to pay to our third-party licensors resulting from the achievement of certain milestones and/or sales of CASI Out-Licensed Products, but only to the extent of the greater China portion of such royalties or milestones.

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Out-License Of Zevalin In Certain Ex-U.S. Territories To Mundipharma

6 Months Ended

Jun. 30, 2016

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Out-License Of Zevalin In Certain Ex-U.S. Territories To Mundipharma

OUT-LICENSE OF MARQIBO, ZEVALIN, AND EVOMELA IN CHINA TERRITORY TO CASI

Overview of CASI Out-License

On September 17, 2014, we executed three product out-license agreements with a perpetual term (collectively, the “CASI Out-License”) with CASI Pharmaceuticals, Inc. (“CASI”), a publicly-traded biopharmaceutical company (NASDAQ: CASI) with a primary focus on the China market. Under the CASI Out-License, we granted CASI the exclusive rights to distribute two of our commercialized oncology drugs, ZEVALIN and MARQIBO, and our Phase 3 drug candidate, EVOMELA (“CASI Out-Licensed Products”) in greater China (which includes Taiwan, Hong Kong and Macau). In return, we received CASI equity for the rights related to ZEVALIN and EVOMELA and a secured promissory note for the rights related to MARQIBO. Additionally, under certain conditions which generally expire on September 17, 2019, we have a right to receive additional CASI common stock in order to maintain our post-investment ownership percentage if CASI issues additional securities. In February 2016, we acquired an additional 1.7 million common shares of CASI at par value, resulting in our total holding of 7.1 million common shares as of June 30, 2016.

CASI will be responsible for the development and commercialization of these three drugs, including the submission of import drug registration applications to regulatory authorities and conducting any confirmatory clinical studies in greater China. We will provide CASI with future commercial supply of the CASI Out-Licensed Products under typical market terms.

Proceeds Received in the Third Quarter of 2014

The proceeds we received, and its fair value on the CASI Out-License execution date, consisted of the following:

CASI common stock (5.4 million shares)	$	8,649	(a)
CASI secured promissory note due March 17, 2017, net of fair value discount ($1.5 million face value and 0.5% annual coupon)	1,310		(b)
Total consideration received, net of fair value discount	$	9,959

(a) Value determined based on the September 17, 2014 closing price of 5.4 million shares of CASI common stock on the NASDAQ Capital Market of $1.60 per share. Our current intention is to hold these securities on a long-term basis. Accordingly, we have presented its value of $8.3 million as of June 30, 2016 within "other assets" (rather than "marketable securities") on our accompanying Condensed Consolidated Balance Sheets. The change in fair value of these securities is reported within “unrealized gain on available-for-sale securities" on the Condensed Consolidated Statements of Comprehensive Loss.

(b) Value estimated using the terms of the $1.5 million promissory note, the application of a synthetic debt rating based on CASI’s publicly-available financial information, and the prevailing interest yields on similar public debt securities as of September 17, 2014. The face value of the promissory note as of June 30, 2016 is included within "other receivables" on the accompanying Condensed Consolidated Balance Sheets.

In addition, CASI will be responsible for paying any royalties or milestones that we are obligated to pay to our third-party licensors resulting from the achievement of certain milestones and/or sales of CASI Out-Licensed Products, but only to the extent of the greater China portion of such royalties or milestones.

Mundipharma [Member]

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Out-License Of Zevalin In Certain Ex-U.S. Territories To Mundipharma

OUT-LICENSE OF ZEVALIN IN CERTAIN EX-U.S. TERRITORIES TO MUNDIPHARMA

On November 16, 2015, we entered into an out-license agreement with Mundipharma International Corporation Limited for their commercialization of ZEVALIN in Asia (excluding India and Greater China), Australia, New Zealand, Africa, the Middle East, and Latin America (including the Caribbean). In return, we received $18 million (comprised of $15 million received in December 2015 and $3 million received in January 2016). Of these proceeds, $15 million was recognized within "license fees and service revenue" in the fourth quarter of 2015, and $0.8 million of the $3 million payment was recognized in the same caption for the six months ended June 30, 2016. As of June 30, 2016, $2.2 million remains deferred and is presented within "deferred revenue" (current and non-current) in the accompanying Condensed Consolidated Balance Sheets. As Mundipharma has sales of ZEVALIN kits in their territories, the remaining unrecognized portion of this $3 million payment will be reported by us within "license fees and service revenue" on an established per-unit basis. Mundipharma is required to reimburse us for our payment of royalties due to Bayer from their ZEVALIN sales - see Note 16(b)(ii).

We are also eligible to receive an additional $2 million upon Mundipharma's achievement of a specified sales milestone, that if/when achieved, will also be reported within "license fees and service revenue".

In connection with this out-license, on November 16, 2015, we concurrently sold to Mundipharma K.K., all common stock of Spectrum Pharmaceuticals GK (the legal entity through which we previously sold ZEVALIN in Japan) for $2.2 million (in the form of an unsecured note, which was paid in full in June 2016), representing its net asset value (excluding inventory) as of November 16, 2015.

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Out-License Of Zevalin, Folotyn, Beleodaq, And Marqibo In Canada Territory To Servier

6 Months Ended

Jun. 30, 2016

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Out-License Of Zevalin, Folotyn, Beleodaq, and Marqibo In Canada Territory To Servier/Out-License of Marqibo, Zevalin, and Evolema in China Territory to CASI

OUT-LICENSE OF MARQIBO, ZEVALIN, AND EVOMELA IN CHINA TERRITORY TO CASI

Overview of CASI Out-License

On September 17, 2014, we executed three product out-license agreements with a perpetual term (collectively, the “CASI Out-License”) with CASI Pharmaceuticals, Inc. (“CASI”), a publicly-traded biopharmaceutical company (NASDAQ: CASI) with a primary focus on the China market. Under the CASI Out-License, we granted CASI the exclusive rights to distribute two of our commercialized oncology drugs, ZEVALIN and MARQIBO, and our Phase 3 drug candidate, EVOMELA (“CASI Out-Licensed Products”) in greater China (which includes Taiwan, Hong Kong and Macau). In return, we received CASI equity for the rights related to ZEVALIN and EVOMELA and a secured promissory note for the rights related to MARQIBO. Additionally, under certain conditions which generally expire on September 17, 2019, we have a right to receive additional CASI common stock in order to maintain our post-investment ownership percentage if CASI issues additional securities. In February 2016, we acquired an additional 1.7 million common shares of CASI at par value, resulting in our total holding of 7.1 million common shares as of June 30, 2016.

CASI will be responsible for the development and commercialization of these three drugs, including the submission of import drug registration applications to regulatory authorities and conducting any confirmatory clinical studies in greater China. We will provide CASI with future commercial supply of the CASI Out-Licensed Products under typical market terms.

Proceeds Received in the Third Quarter of 2014

The proceeds we received, and its fair value on the CASI Out-License execution date, consisted of the following:

CASI common stock (5.4 million shares)	$	8,649	(a)
CASI secured promissory note due March 17, 2017, net of fair value discount ($1.5 million face value and 0.5% annual coupon)	1,310		(b)
Total consideration received, net of fair value discount	$	9,959

(a) Value determined based on the September 17, 2014 closing price of 5.4 million shares of CASI common stock on the NASDAQ Capital Market of $1.60 per share. Our current intention is to hold these securities on a long-term basis. Accordingly, we have presented its value of $8.3 million as of June 30, 2016 within "other assets" (rather than "marketable securities") on our accompanying Condensed Consolidated Balance Sheets. The change in fair value of these securities is reported within “unrealized gain on available-for-sale securities" on the Condensed Consolidated Statements of Comprehensive Loss.

(b) Value estimated using the terms of the $1.5 million promissory note, the application of a synthetic debt rating based on CASI’s publicly-available financial information, and the prevailing interest yields on similar public debt securities as of September 17, 2014. The face value of the promissory note as of June 30, 2016 is included within "other receivables" on the accompanying Condensed Consolidated Balance Sheets.

In addition, CASI will be responsible for paying any royalties or milestones that we are obligated to pay to our third-party licensors resulting from the achievement of certain milestones and/or sales of CASI Out-Licensed Products, but only to the extent of the greater China portion of such royalties or milestones.

Servier Canada [Member]

Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]

Out-License Of Zevalin, Folotyn, Beleodaq, and Marqibo In Canada Territory To Servier/Out-License of Marqibo, Zevalin, and Evolema in China Territory to CASI

OUT-LICENSE OF ZEVALIN, FOLOTYN, BELEODAQ, AND MARQIBO IN CANADA TERRITORY TO SERVIER

On January 8, 2016, we entered into a strategic partnership with Servier Canada, Inc. for the out-licenses of ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO. We received $6 million in upfront payments in the first quarter of 2016 which was recognized within "license fees and service revenue" in the accompanying Condensed Consolidated Statement of Operations for the six months ended June 30, 2016. We will also receive development milestone payments if/when achieved, and a high single-digit royalty on their sales of these products.

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Co-Promotion Arrangement With Eagle Pharmaceuticals

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Co-Promotion Arrangement With Eagle Pharmaceuticals

CO-PROMOTION ARRANGEMENT WITH EAGLE PHARMACEUTICALS

On November 4, 2015, we executed an agreement with Eagle Pharmaceuticals, Inc. ("Eagle") whereby designated members of our sales force will concurrently market up to six of Eagle's pharmaceutical products along with our products, in return for fixed monthly payments over the initial 18 month contract term through June 30, 2017, aggregating $12.8 million (the "Eagle Agreement"). We are also eligible to receive milestone payments of up to $5 million for sales made in 2016 that exceed certain thresholds, and up to $4 million for sales made in the first half 2017 that exceed certain thresholds. In addition, for performance above such sales levels in 2016, and in the first half of 2017, we are eligible to receive variable-based payments in the high single-digits on incremental sales of Eagle's products above these established threshold levels.

The fixed payments received by us, as well as reimbursable costs for certain marketing activities that we coordinate with third parties on Eagle's behalf, are recognized within "license fees and service revenue" on our accompanying Consolidated Statement of Operations. This amount was $2.4 million and $4.3 million for the three and six months ended June 30, 2016, respectively. Any variable payments due to us will be recognized in the period earned and reported within the same revenue caption.

An allocation of our sales personnel costs that are dedicated to Eagle sales activities are reported within "cost of service revenue" on our accompanying Consolidated Statement of Operations, as are reimbursable costs for Eagle marketing activities. These were an aggregate $2.2 million and $3.5 million for the three and six months ended June 30, 2016, respectively.

Eagle may extend the initial term of this agreement by six months to December 31, 2017 at its sole election. Any extensions after December 31, 2017 require mutual consent and will be for six months per extension. The Eagle Agreement may be terminated by either party for uncured material breaches and certain other events following a change of control or insolvency of either party, and solely by Eagle for convenience with 60 days written notice, subject to an established termination fee, as calculated within the Eagle Agreement.

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Convertible Senior Notes

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Convertible Senior Notes

CONVERTIBLE SENIOR NOTES

Overview

On December 17, 2013, we entered into an agreement for the sale of $120 million aggregate principal amount of 2.75% Convertible Senior Notes due December 2018 (the “2018 Convertible Notes”). The 2018 Convertible Notes are convertible into shares of our common stock at a conversion rate of 95 shares per $1,000 principal amount of the 2018 Convertible Notes, equating to 11.4 million common shares if fully converted. The in-the-money conversion price is equivalent to $10.53 per common share. The conversion rate and conversion price is subject to adjustment under certain limited circumstances. The 2018 Convertible Notes bear interest at a rate of 2.75% per year, payable semiannually in arrears on June 15 and December 15 of each year. The 2018 Convertible Notes will mature and become payable on December 15, 2018, subject to earlier conversion into common stock at the holders’ option.

The sale of the 2018 Convertible Notes closed on December 23, 2013 and our net proceeds were $115.4 million, after deducting banker and professional fees of $4.6 million. We used a portion of these net proceeds to simultaneously enter into “bought call” and “sold warrant” transactions with Royal Bank of Canada (collectively, the “Note Hedge”). We recorded the Note Hedge on a net cost basis of $13.1 million, as a reduction to “additional paid-in capital” in our accompanying Condensed Consolidated Balance Sheets. Under applicable GAAP, the Note Hedge transaction is not expected to be marked-to-market through earnings or comprehensive income in future reported periods.

Conversion Hedge

We entered into Note Hedge transactions to reduce the potential dilution to our stockholders and/or offset any cash payments that we are required to make in excess of the principal amount, upon conversion of the 2018 Convertible Notes (in the event that the market price of our common stock is greater than the conversion price). The strike price of the “bought call” is equal to the conversion price and conversion rate of the 2018 Convertible Notes, matching the 11.4 million common shares the 2018 Convertible Notes may be converted into. The strike price of our “sold warrant” is $14.03 per share of our common stock, and is also for 11.4 million common shares.

Conversion Events

On and after June 15, 2018, and until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or a portion of their 2018 Convertible Notes. Prior to June 15, 2018, holders may convert all or a portion of their 2018 Convertible Notes only under any of the following circumstances: (1) during any fiscal quarter (and only during such fiscal quarter), if, for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding fiscal quarter, the last reported sale price of our common stock on such trading day is greater than or equal to 130% of the Notes' conversion price on such trading day; (2) during the five consecutive business day period immediately following any five consecutive trading day period in which, for each trading day of that measurement period, the trading price per $1,000 principal amount of 2018 Convertible Notes for such trading day was less than 98% of the product of (i) the last reported sale price of our common stock on such trading day and (ii) the Notes' conversion rate on such trading day; (3) upon the occurrence of certain corporate transactions; and (4) at any time prior to our stockholders’ approval to settle the 2018 Convertible Notes in our common shares and/or cash.

As of June 30, 2016, the 2018 Convertible Notes are not eligible to be converted into our common stock, as none of the above elements (1) through (4) were met. Our stockholders’ approval of "flexible settlement" occurred at our Annual Meeting of Stockholders on June 29, 2015. As a result, we may (at our election) settle any future conversions of the 2018 Convertible Notes by paying or delivering cash, shares of our common stock, or a combination of cash and shares of our common stock. However, if the holders of the Convertible Notes do not elect any conversion into our common stock, our December 2018 obligation to repay the principal amount of $120 million in cash, plus any accrued and unpaid interest, is unchanged.

Carrying Value and Fair Value

The carrying value of the 2018 Convertible Notes as of June 30, 2016 is summarized as follows:

Principal amount	$	120,000
(Less): Unamortized debt discount (amortized through December 2018)	(15,652		)
(Less): Debt issuance costs (see Note 3(d))	(1,826		)
June 30, 2016 carrying value	$	102,522

As of June 30, 2016 and December 31, 2015, the estimated aggregate fair value of the 2018 Notes is $112.8 million and $105.1 million, respectively. These fair value estimates are less than the principal amount of $120 million, largely since the conversion feature of the 2018 Notes was, and remains, out-of-the-money. These estimated fair values represent a Level 2 measurement (see Note 2(xiii)), based upon the 2018 Convertible Notes' quoted bid price at each date in a thinly-traded market.

Components of Interest Expense on 2018 Convertible Notes

The following table sets forth the components of interest expense recognized in the accompanying Condensed Consolidated Statements of Operations for the 2018 Convertible Notes for the six months ended June 30, 2016:

Contractual coupon interest expense	$	1,650
Amortization of debt issuance costs	345
Accretion of debt discount	2,800
Total	$	4,795
Effective interest rate	8.66		%

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Mundipharma Agreement And Drug Development Liability

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Mundipharma Agreement And Drug Development Liability

MUNDIPHARMA AGREEMENT AND DRUG DEVELOPMENT LIABILITY

As the result of our acquisition of Allos Therapeutics, Inc. on September 5, 2012 (through which we obtained distribution rights for FOLOTYN), we assumed its obligations under an active strategic collaboration agreement with a third-party, Mundipharma (the “Mundipharma Collaboration Agreement”). Under the Mundipharma Collaboration Agreement, we retained full commercialization rights for FOLOTYN in the U.S. and Canada, with Mundipharma having exclusive rights to commercialize FOLOTYN in all other countries in the world (the “Mundipharma Territories”).

On May 29, 2013, the Mundipharma Collaboration Agreement was amended and restated (the “Amended Mundipharma Collaboration Agreement”), in order to modify: (i) the scope of the licensed territory, (ii) milestone payments, (iii) royalty rates, and (iv) drug development obligations. In connection with the Amended Mundipharma Collaboration Agreement, we received a one-time $7 million payment from Mundipharma for certain research and development activities to be performed by us.

As a result of the Amended Mundipharma Collaboration Agreement, (a) Europe and Turkey were excluded from Mundipharma’s commercialization territory, (b) we may receive regulatory milestone payments of up to $16 million, and commercial progress and sales-dependent milestone payments of up to $107 million, (c) we will receive tiered double-digit royalties based on net sales of FOLOTYN within Mundipharma’s licensed territories, and (d) we and Mundipharma will bear our own FOLOTYN development costs.

On May 29, 2015 and effective as of May 1, 2015, we entered into an amendment to the Amended Mundipharma Collaboration Agreement (the “Amendment”). Pursuant to the Amendment, among other things, the parties revised the conditions to our exercise of the option to gain commercialization rights in Switzerland from Mundipharma, and also revised tiered double-digit royalties payable by Mundipharma on net sales in Switzerland.

The fair value of this liability is included in the current and long-term portions of “drug development liability” within the accompanying Condensed Consolidated Balance Sheets, and it includes our assumptions about personnel needed to perform these research and development activities, third party costs for projected clinical trial enrollment, and patient treatment-related follow up through approximately 2031.

The fair value of our “drug development liability” within our accompanying Condensed Consolidated Balance Sheets was estimated using the discounted income approach model. The unobservable inputs (i.e., Level 3 inputs - see Note 2(xiii)) in this valuation model that have the most significant effect on these liabilities include (i) estimates of research and development personnel costs needed to perform the research and development services, (ii) estimates of expected cash outflows to third parties for services and supplies during the expected period of performance through 2031, and (iii) an appropriate discount rate for these expenditures. These inputs are reviewed by management on a quarterly basis for continued applicability.

We assess this liability at each reporting date and record its adjustment through “research and development” expense in our accompanying Condensed Consolidated Statements of Operations.

	Drug Development Liability, Current – FOLOTYN			Drug Development Liability, Long Term – FOLOTYN			Total Drug Development Liability – FOLOTYN
Balance at December 31, 2015	$	259		$	14,427		$	14,686
Transfer from long-term to current in 2016	200			(200		)	—
(Less): Expenses incurred in 2016	(303		)	—			(303		)
Balance at June 30, 2016	$	156		$	14,227		$	14,383

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

(a) Facility Leases

We lease our principal executive office in Henderson, Nevada under a non-cancelable operating lease expiring April 30, 2019. We also lease our research and development facility in Irvine, California under a non-cancelable operating lease expiring May 31, 2019, in addition to several other administrative office leases. Each lease agreement contains scheduled rent increases which are accounted for on a straight-line basis.

(b) In-Licensing and Out-Licensing Agreements, Co-Development Agreements, and Milestone Payments

Our drug candidates are being developed pursuant to license agreements that provide us with territory-specific rights to its manufacture, sublicense, and sale. We are generally responsible for all development costs, patent filings and maintenance costs, sales and marketing costs, and liability insurance costs. We are also obligated to make certain milestone payments to third parties upon the achievement of regulatory and sales milestones that are specified in these license agreements. We estimate and present a corresponding liability on our Condensed Consolidated Balance Sheets when amounts are probable and reasonably estimable. In addition, we are obligated to pay royalties based on our current and future net sales of in-licensed products.

Our most significant of these agreements are listed and summarized below:

(i) ZEVALIN U.S.: In-Licensing and Development in the U.S.

In December 2008, we acquired rights to commercialize and develop ZEVALIN in the U.S. as the result of a transaction with Cell Therapeutics, Inc. (“CTI”) through our wholly-owned subsidiary, RIT Oncology LLC (“RIT”). We assumed certain agreements with various third parties related to ZEVALIN intellectual property for its manufacture, use, and sale in the U.S.

In accordance with the terms of assumed contracts, we are required to meet specified payment obligations, including a milestone payment to Corixa Corporation of $5 million based on ZEVALIN sales in the U.S. (the “Corixa Liability”). This milestone has not yet been met, and $0.1 million for this potential milestone achievement is included within “acquisition-related contingent obligations” in our accompanying Condensed Consolidated Balance Sheet as of June 30, 2016 and December 31, 2015, respectively. Our U.S. net sales-based royalties are in the low to mid-single digits to Genentech, Inc. and mid-teens to Biogen.

(ii) ZEVALIN Ex-U.S.: In-License and Asset Purchase Agreement with Bayer Pharma

In April 2012, through our wholly-owned subsidiary, Spectrum Pharmaceuticals Cayman, L.P., we completed the acquisition of licensing rights to market ZEVALIN outside of the U.S. from Bayer Pharma AG (“Bayer”). ZEVALIN is currently approved in approximately 40 countries outside the U.S. for the treatment of B-cell non-Hodgkin lymphoma, including countries in Europe, Latin America, and Asia.

In consideration for the rights granted under the agreement, concurrent with the closing, we paid Bayer a one-time fee of €19 million. Our ex-U.S. net sales-based royalty to Bayer ranges between the single digits to mid-teens. We amended the agreement in February 2016. Under the amendment, in the event that we elect to sublicense the rights in certain countries, our applicable royalty on net sales to Bayer would be adjusted to a tiered rate from the single digits to 20% in such countries. Unless earlier terminated, the term of the agreement, as amended, continues until the expiration of the last-to-expire patent covering the sale of a licensed product in the relevant country, or 15 years from the date of first commercial sale of the licensed product in such country, whichever is longer.

(iii) ZEVALIN Ex-U.S.: Out-License Agreement with Dr. Reddy’s

Effective June 27, 2014, we executed an exclusive License Agreement with Dr. Reddy’s Laboratories Ltd. (“Dr. Reddy’s”), for the distribution rights of ZEVALIN within India. The agreement term is 15 years from the receipt of pending approval of ZEVALIN from the Drug Controller General of India. On December 17, 2014, upon the execution of a supply agreement, an upfront and non-refundable payment of $0.5 million was triggered and was paid to us in February 2015. The recognition of this upfront payment is reported on a straight-line basis within “license fee and service revenue” on the Condensed Consolidated Statements of Operations over a 10 year term through December 2024. Additionally, sales and regulatory milestones (aggregating $3 million) will become payable to us when achieved by Dr. Reddy’s, as well as a 20% royalty on net sales of ZEVALIN in India.

(iv) ZEVALIN Ex-U.S.: Out-License Agreement with Mundipharma

On November 16, 2015, we entered into an out-license agreement with Mundipharma International Corporation Limited ("Mundipharma") for their commercialization of ZEVALIN in Asia (excluding India and Greater China), Australia, New Zealand, Africa, the Middle East, and Latin America (including the Caribbean). In return, we received $18 million (comprised of $15 million received in December 2015 and $3 million received in January 2016). Of these proceeds, $15 million was recognized within "license fees and service revenue" in the fourth quarter of 2015, and $0.8 million of the $3 million payment was recognized in the same caption for the six months ended June 30, 2016. As of June 30, 2016, $2.2 million remains deferred and is presented within "deferred revenue" (current and non-current) in the accompanying Condensed Consolidated Balance Sheets. As Mundipharma has sales of ZEVALIN kits in their territories, the remaining unrecognized portion of this $2.2 million value will be recognized by us in subsequent periods within "license fees and service revenue" on an established per-unit basis. Mundipharma is required to reimburse us for our payment of royalties due to Bayer from their ZEVALIN sales (see Note 16(b)(ii)).

We are also eligible to receive an additional $2 million upon Mundipharma's achievement of a specified sales milestone, that if/when achieved, will also be reported within "license fees and service revenue".

(v) FUSILEV: In-License Agreement with Merck & Cie AG

In May 2006, we amended and restated a license agreement with Merck & Cie AG (“Merck”), which we assumed in connection with our March 2006 acquisition of the assets of Targent, Inc. Pursuant to the license agreement with Merck, we obtained the exclusive license to use regulatory filings related to FUSILEV and a non-exclusive license under certain patents and know-how to develop, manufacture, use, and sell FUSILEV in the field of oncology in North America in return for a royalty percentage (in the mid-single digits) of net sales. Merck is eligible to receive a $0.2 million payment from us upon the achievement of a FDA approval of an oral form of FUSILEV. This milestone has not yet been met, and no amounts have been accrued in our accompanying Condensed Consolidated Balance Sheets for its potential achievement.

(vi) FOLOTYN: In-License Agreement with Sloan-Kettering Institute, SRI International and Southern Research Institute

In December 2002, Allos entered into the FOLOTYN License Agreement with Sloan-Kettering Institute for Cancer Research, SRI International, and Southern Research Institute. As a result of Allos becoming our wholly owned subsidiary in September 2012, we are bound by the FOLOTYN License Agreement under which we obtained exclusive worldwide rights to a portfolio of patents and patent applications related to FOLOTYN and its uses. Under the terms of the FOLOTYN License Agreement, we are required to fund all development programs and will have sole responsibility for all commercialization activities. In addition, we pay graduated royalties to our licensors based on our (including sub licensees) worldwide annual net sales of FOLOTYN. Royalties are 8% of annual worldwide net sales up to $150 million; 9% of annual worldwide net sales of $150 million through $300 million; and 11% of annual worldwide net sales in excess of $300 million.

(vii) EVOMELA: In-License Agreement with Cydex Pharmaceuticals, Inc.

In March 2013, we completed the acquisition of exclusive global development and commercialization rights to

EVOMELA from Ligand (see Note 9(b)) and assumed responsibility for EVOMELA's ongoing clinical and regulatory development program. We filed a New Drug Application ("NDA") with the FDA in December 2015 for its use as a conditioning treatment prior to autologous stem cell transplant for patients with MM. On March 10, 2016, the FDA communicated its approval of the NDA for EVOMELA. In connection with this FDA approval, we made a $6 million milestone payment to Ligand on April 13, 2016.

We are required to pay Ligand additional amounts of up to $60 million (exclusive of the $6 million milestone paid in April 2016), upon the achievement of certain regulatory milestones and net sales thresholds. We will also pay royalties of 20% on our net sales of licensed products in all territories.

(viii) MARQIBO: Contingent Consideration Agreement with Talon Therapeutics, Inc.

In July 2013, we completed the acquisition of Talon, through which we obtained exclusive global development and commercialization rights to MARQIBO (see Note 9(a)). As part of this acquisition, we issued the former Talon stockholders contingent value rights (“CVR”) that we have valued and presented on our accompanying Condensed Consolidated Balance Sheets as a $1.9 million and $1.4 million liability within “acquisition-related contingent obligations” as of June 30, 2016 and December 31, 2015, respectively. The CVR has a maximum payout value of $195 million if all sales and regulatory approval milestones are achieved.

(ix) QAPZOLA: License Agreements with Allergan, Inc. and NDDO Research Foundation

In October 2008, we entered into an exclusive development and commercialization collaboration agreement with Allergan for QAPZOLA. Pursuant to the terms of the agreement, Allergan paid us an up-front non-refundable fee of $41.5 million at closing (which we have amortized through revenue within “license fees and service revenue” in full as of December 31, 2013). In October 2008, pursuant to a letter agreement with NDDO Research Foundation (“NDDO”), we agreed to pay NDDO the following in relation to QAPZOLA milestones: (a) upon FDA acceptance of the NDA, the issuance of 25,000 of our common shares (which occurred in March 2016, and the $0.1 million value of these shares is included in "research and development" expense for the six months ended June 30, 2016) and (b) upon FDA approval of the drug (its target decision date is set for December 11, 2016), a one-time payment of $0.3 million.

In January 2013, we entered into a second amendment to the license, development, supply and distribution agreement with Allergan to amend the agreement and reacquire the rights originally licensed to Allergan in the U.S., Europe, and other territories in exchange for a tiered single-digit royalty on certain products containing QAPZOLA, and relieved Allergan of its development and commercialization obligations.

(x) QAPZOLA: Collaboration Agreement with Nippon Kayaku Co. LTD.

In November 2009, we entered into a collaboration agreement with Nippon Kayaku Co., LTD. (“Nippon Kayaku”) for the development and commercialization of QAPZOLA in Asia, except North and South Korea (the “Nippon Kayaku Territory”). In addition, Nippon Kayaku received exclusive rights to QAPZOLA for the treatment of non-muscle invasive bladder cancer in Asia (other than North and South Korea), including Japan and China. Nippon Kayaku will conduct QAPZOLA clinical trials in the Nippon Kayaku Territory pursuant to a development plan. Further, Nippon Kayaku will be responsible for all expenses relating to the development and commercialization of QAPZOLA in the Nippon Kayaku Territory.

Under the terms of this agreement, Nippon Kayaku paid us an upfront fee of $15 million (which we have amortized through revenue within “license fees and service revenue” in full as of December 31, 2013). Nippon Kayaku is also obligated to make additional payments to us based on the achievement of certain development, regulatory and commercialization milestones. Under the terms of the agreement, we are entitled to payment of $10 million and $126 million upon achievement of certain regulatory and commercialization milestones, respectively. Also, Nippon Kayaku has agreed to pay us royalties based on a percentage of net sales of the subject products in the defined territory in the mid-teen digits.

(xi) BELEODAQ: In-License and Collaboration Agreement with Onxeo

In February 2010, we entered into a licensing and collaboration agreement with TopoTarget A/S (now Onxeo DK) (“Onxeo”), as amended in October 2013, for the development and commercialization of BELEODAQ. The agreement provides that we have the exclusive right to manufacture, develop, and commercialize BELEODAQ in North America and India, with an option for China. Pursuant to the terms of this agreement, we paid Onxeo an upfront fee of $30 million in 2010.

Under continuing terms, all development, including studies, will be conducted under a joint development plan, which we will fund 70% of such costs, and Onxeo will fund 30%. We have final decision-making authority for all developmental activities in North America and India (and China upon exercise of its option). Onxeo has final decision-making authority for all developmental activities in all other jurisdictions. In February 2014, upon FDA acceptance of our new drug application, we issued one million shares of our common stock, and made a $10 million milestone payment to Onxeo. The aggregate payout value of this first milestone at achievement was $17.8 million, and was recognized within “research and development” in the first quarter of 2014.

In July 2014, we received approval from the FDA for BELEODAQ’s use for injection and treatment of relapsed or refractory peripheral T-cell lymphoma. As a result, we paid a second milestone payment to Onxeo of $25 million in November 2014, which we capitalized as an amortizable intangible asset. Other potential milestone payments due upon BELEODAQ regulatory achievements and sales thresholds (aggregating up to $278 million) are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets.

We will pay Onxeo future royalties in the mid-teen digits based on net sales of BELEODAQ. The agreement will continue until the expiration of the last royalty payment period in the last country in the defined territory with certain provisions surviving, unless earlier terminated in accordance with its terms.

(xii) SPI-2012: Co-Development and Commercialization Agreement with Hanmi Pharmaceutical Company

In October 2014, we exercised our option under a License Option and Research Collaboration Agreement dated January 2012 (as amended) with Hanmi Pharmaceutical Company, Ltd. (“Hanmi”), for SPI-2012, formerly known as “LAPS-GCSF”, a drug based on Hanmi’s proprietary LAPSCOVERY™ technology for the treatment of chemotherapy induced neutropenia. Under the terms of this agreement, as amended, we have primary financial responsibility for the SPI-2012 development plan. We have worldwide rights for SPI-2012, except for Korea, China, and Japan. In the first quarter 2016, we accrued a milestone payment of $1.9 million (as quantified under GAAP) related to Hanmi, based on initial patient dosing in January 2016 as part of our Phase III study. On April 26, 2016, we (i) issued 318,750 of our common shares to Hanmi and (ii) remitted a $0.4 million payment to the Internal Revenue Service (IRS) on their behalf for related tax obligations. This aggregate $2.7 million value was recognized within "research and development" expense in accompanying Condensed Consolidated Statement of Operations for the six months ended June 30, 2016. We will also be responsible for milestones relating to regulatory approvals and sales thresholds (aggregating $238 million), which are not included within "total liabilities" in our Condensed Consolidated Balance Sheets. We will pay Hanmi royalties in the mid-teen digits on our net sales of SPI-2012.

(xiii) POZIOTINIB: In-License Agreement with Hanmi

In February 2015, we executed an in-license agreement with Hanmi Pharmaceutical Co., Ltd for POZIOTINIB, a pan-HER inhibitor in Phase 2 clinical trials, requiring our upfront payment for these rights. This drug has shown single agent activity in the treatment of various cancer types during Phase I studies, including breast, gastric, colorectal, and lung cancers.

Under the terms of this agreement, we received the exclusive rights to commercialize POZIOTINIB globally, excluding Korea and China. Hanmi, and its development partners, will bear full responsibility for completion of on-going Phase 2 trials in Korea. We will bear full financial responsibility for all other clinical studies. We will pay Hanmi future regulatory and sales-dependent milestones payments (aggregating $358 million), which are not included within “total liabilities” in our accompanying Condensed Consolidated Balance Sheets. We will pay Hanmi royalties in the low to mid-teen digits on our net sales of POZIOTINIB.

(xiv) ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO: Out-License Agreement with Servier

In January 2016, we entered into a strategic partnership with Servier Canada, Inc. for the out-licenses of ZEVALIN, FOLOTYN, BELEODAQ, and MARQIBO. We received an aggregate $6 million in upfront payments in the first quarter of 2016 which was recognized within "license fees and service revenue". We will also receive development milestone payments if/when achieved, and a high single-digit royalty on their sales of these products.

(c) Service Agreements

In connection with the research and development of our drug products, we have entered into contracts with numerous third party service providers, such as radio-pharmacies, distributors, clinical trial centers, clinical research organizations, data monitoring centers, and with drug formulation, development and testing laboratories. The financial terms of these agreements are varied and generally obligate us to pay in stages, depending on achievement of certain events specified in the agreements, such as contract execution, reservation of service or production capacity, actual performance of service, or the successful accrual and dosing of patients.

At each period end, we accrue for all services received, with such accruals based on factors such as estimates of work performed, patient enrollment, completion of patient studies and other events. Should we decide to discontinue and/or slow-down the work on any project, the associated costs for those projects would be limited to the extent of the work completed. Generally, we are able to terminate these contracts due to the discontinuance of the related project(s) and thus avoid paying for the services that have not yet been rendered.

(d) Supply Agreements

We have entered into certain supply agreements, or have issued purchase orders, which require us to make minimum purchases from vendors for the manufacture of our products. These commitments do not exceed our planned commercial requirements, and the contracted prices do not exceed their fair market value.

(e) Employment Agreement

We have entered into an employment agreement with our Chief Executive Officer under which cash compensation and benefits would become payable in the event of termination by us for any reason other than cause, his resignation for good reason, or upon a change in control of our Company.

(f) Deferred Compensation Plan

The Spectrum Pharmaceuticals, Inc. Deferred Compensation Plan (the “DC Plan”) is administered by the Compensation Committee of our Board of Directors and is intended to comply with the requirements of Section 409A of the Internal Revenue Code of 1986, as amended.

The DC Plan is maintained to provide deferred compensation benefits for a select group of our employees (the “DC Participants”). Under the DC Plan, we provide the DC Participants with the opportunity to make annual elections to defer up to a specified amount or percentage of their eligible cash compensation, and we have the option to make discretionary contributions. At June 30, 2016 and December 31, 2015, the aggregate DC Plan deferrals by employees and our discretionary contributions totaled $7.7 million and $6.5 million, respectively, and are included within “other long-term liabilities” in the accompanying Condensed Consolidated Balance Sheets.

(g) Litigation

We are involved from time-to-time with various legal matters arising in the ordinary course of business. These claims and legal proceedings are of a nature we believe are normal and incidental to a pharmaceutical business, and may include product liability, intellectual property, employment matters, and other general claims.

We make provisions for liabilities when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Such provisions are assessed at least quarterly and adjusted to reflect the impact of any settlement negotiations, judicial and administrative rulings, advice of legal counsel, and other information and events pertaining to a particular case. Litigation is inherently unpredictable. Although the ultimate resolution of these various matters cannot be determined at this time, we do not believe that such matters, individually or in the aggregate, will have a material adverse effect on our consolidated results of operations, cash flows, or financial condition.

FUSILEV ANDA Litigation

On June 18, 2014, January 23, 2015, July 17, 2015 and September 3, 2015 respectively, we filed suit against Ben Venue Laboratories, Inc. (“Ben Venue”), Amneal Pharmaceuticals, Inc. (“Amneal”), and Actavis LLC. (“Actavis”), respectively, following Paragraph IV certifications in connection with their filing separate ANDAs, to manufacture a generic version of FUSILEV. We filed the lawsuits in the U.S. District Court for the Districts of Nevada seeking to enjoin the approval of their ANDAs plus recovery of our litigation fees and costs incurred in such matters. On November 24, 2014 the complaint in the Ben Venue case was amended to substitute the original defendant Ben Venue Laboratories, Inc. with successors West-Ward Pharmaceutical Corp. and Eurohealth International SARL (collectively “West-Ward”). On June 9, 2016 and June 22, 2016 respective judgment was entered in favor of Amneal, Westward and Actavis.

On April 27, 2015, we filed suit in the U.S. District Court for the District of Columbia against the FDA seeking a temporary restraining order or preliminary injunction to suspend FDA approval of Sandoz’s ANDA. The Company contends that Sandoz’s ANDA should not have been approved until the expiry of the Company’s Orphan Drug Exclusivity on April 29, 2018. On April 29, 2015, the court denied the temporary restraining order and on May 27, 2015, the court entered summary judgment in favor of the FDA et al. On June 5, 2015, we filed our Notice of Appeal. On June 3, 2016, the U.S. Court of Appeals for the District of Columbia affirmed the judgment in favor of the FDA et. al. All costs pertaining to this matter (incurred and accrued) have been recognized within "selling, general and administrative" expenses on the accompanying Condensed Consolidated Statement of Operations for all periods presented.

FOLOTYN ANDA Litigation

On June 19, 2014, we filed a lawsuit against five parties resulting from Paragraph IV certifications in connection with four separate ANDAs to manufacture a generic version of FOLOTYN: (1)Teva Pharmaceuticals USA, Inc. (“Teva”), (2) Sandoz Inc. (“Sandoz”), (3) Fresenius Kabi USA, LLC (“Fresenius”), (4) Dr. Reddy’s Laboratories, Ltd., and (5) Dr. Reddy’s Laboratories, Inc. (collectively “Dr. Reddy’s”). We filed the lawsuit in the U.S. District Court for the District of Delaware seeking to enjoin the approval of their ANDAs plus recovery of our litigation fees and costs. We have reached settlement agreements with each defendant. Specifically, on May 24, 2016, May 27, 2016, June 8, 2016 and July 12, 2016 we entered into settlement agreements with Teva, Dr. Reddy’s, Sandoz and Fresenius respectively. As a result of the settlements, Teva, Dr. Reddy’s, Sandoz and Fresenius will be permitted to market a generic version of FOLOTYN in the United States commencing on November 15, 2022 or earlier under certain circumstances. Details of the settlements are confidential, and the parties have submitted the agreements to the Federal Trade Commission and the Department of Justice. On June 13, 2016, July 1, 2016 and July 7, 2016, the U.S. District Court for the District of Delaware dismissed the cases against Sandoz, Teva and Dr. Reddy’s respectively. We and Fresenius plan to request that the Court also enter an order, in which it will dismiss our litigation against Fresenius. Once such an order is entered with respect to Fresenius, the last remaining defendant in the lawsuit, this would conclude the litigation. All costs pertaining to this matter (incurred and accrued) have been recognized within "selling, general and administrative" expenses on the accompanying Condensed Consolidated Statement of Operations for all periods presented.

Stockholder Litigation

John Perry v. Spectrum Pharmaceuticals, Inc. et al. (Filed March 14, 2013 in United States District Court, District of Nevada; Case Number 2:2013-cv-00433-LDG-CWH). This putative consolidated class action raises substantially identical claims and allegations against defendants Spectrum Pharmaceuticals, Inc., Dr. Rajesh C. Shrotriya, Brett L. Scott, and Joseph Kenneth Keller. The alleged class period is August 8, 2012 to March 12, 2013. The lawsuits allege a violation of Section 10(b) of the Securities Exchange Act of 1934 against all defendants and control person liability, as a violation of Section 20(b) of the Securities Exchange Act of 1934, against the individual defendants. The claims purportedly stem from our March 12, 2013 press release, in which it announced that it anticipated a change in ordering patterns of FUSILEV. The complaints allege that, as a result of the March 12, 2013 press release, our stock price declined. The complaints further allege that during the putative class period certain defendants made misleadingly optimistic statements about FUSILEV sales, which inflated the trading price of our stock. The lawsuits seek relief in the form of monetary damages, costs and fees, and any other equitable or injunctive relief that the Court deems appropriate. On March 21, 2014, the Court entered an order appointing Arkansas Teacher Retirement System as lead plaintiff. On May 20, 2014, Arkansas Teacher Retirement System filed a consolidated amended class action complaint. On July 18, 2014, we filed a motion to dismiss the consolidated amended class action complaint. On March 26, 2015, the Court denied the motion to dismiss. On June 15, 2015, the Court ordered a stay of the proceedings pending the outcome of mediation between the parties. On October 27, 2015, we reached a $7 million settlement in principle with the lead plaintiff (which involved our insurance carrier, as the reimbursing party in full). On June 13, 2016, the Court entered an order granting final approval of the settlement.

Timothy Fik v. Rajesh C. Shrotriya, et al. (Filed April 11, 2013 in United States District Court, District of Nevada; Case Number 2:2013-cv-00624-JCM-CWH); Christopher J. Watkins v. Rajesh C. Shrotriya, et al. (Filed April 22, 2013 in United States District Court, District of Nevada; Case Number 2:2013-cv-00684-JCM-VCF); and Stefan Muenchhagen v. Rajesh C. Shrotriya, et al. (Filed May 28, 2013; Case Number 2:2013-cv-00942-APG-PAL). These derivative complaints are brought by the respective purported stockholders on behalf of nominal plaintiff Spectrum against certain current and former directors and officers. The complaints generally allege breaches of fiduciary based on conduct relating to the events alleged in the consolidated Perry action. The complaints seek compensatory damages, corporate governance reforms, restitution and disgorgement of defendants’ alleged profits, and costs and fees. These actions are stayed. Settlement discussions are ongoing, and accordingly, no agreement has yet been reached to resolve these derivative complaints. If a settlement were reached, we believe it would be reimbursable by our insurance carrier.

Hardik Kakadia v. Rajesh C. Shrotriya, et al. (Filed April 23, 2013 in the Eighth Judicial District Court of the State of Nevada in and for Clark County; Case Number A-13-680643-B); and Joel Besner v. Rajesh C. Shrotriya, et al. (Filed May 31, 2013; Case Number A-13-682668-C) (collectively the “State Derivative Actions”). These consolidated State Derivative Actions are brought by the respective purported stockholders on behalf of nominal plaintiff Spectrum Pharmaceuticals, Inc. and are substantially similar to the consolidated federal derivative actions. These actions are stayed. Settlement discussions are ongoing, and accordingly, no agreement has yet been reached to resolve these derivative complaints. If a settlement were reached, we believe it would be reimbursable by our insurance carrier.

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Income Taxes

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

We apply an estimated annual effective tax rate (“ETR”) approach for calculating a tax provision for interim periods, as required under GAAP. We recorded a benefit for income taxes of $0.2 million and a provision for income taxes of $0.1 million for the six months ended June 30, 2016 and 2015, respectively. Our ETR differs from the U.S. federal statutory tax rate of 35% primarily as a result of nondeductible expenses, state income taxes, foreign income taxes, and the impact of a valuation allowance on our deferred tax assets.

Our provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for the expected future tax benefit to be derived from tax loss and credit carryforwards.

Deferred tax assets and liabilities are determined using the enacted tax rates in effect for the years in which those tax assets are expected to be realized. A valuation allowance is established when it is more likely than not the future realization of all or some of the deferred tax assets will not be achieved. The evaluation of the need for a valuation allowance is performed on a jurisdiction by jurisdiction basis, and includes a review of all available positive and negative evidence.

We recognize excess tax benefits associated with share-based compensation to stockholders’ equity only when realized. When assessing whether excess tax benefits relating to share-based compensation have been realized, we follow the with-and-without approach, excluding any indirect effects of the excess tax deductions. Under this approach, excess tax benefits related to share-based compensation are not deemed to be realized until after the utilization of all other tax benefits available to us. We recognize the impact of a tax position in our financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions will be reflected in income tax expense.

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Stockholders' Equity

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS' EQUITY

Sale of Common Stock - December 2015 ATM Agreement

On December 23, 2015, we entered into a collective at-market-issuance sales agreement with FBR Capital Markets & Co., MLV & Co. LLC, and H.C. Wainwright & Co., LLC. (“December 2015 ATM Agreement”), through which we are able to raise gross proceeds of up to $100 million from the sale of our common stock through these brokers under our shelf registration statement on Form S-3 (File No. 333-208760), declared effective by the SEC on February 3, 2016.

During the second quarter of 2016 and through August 8, 2016, we sold and issued shares of our common stock under this December 2015 ATM Agreement, as summarized in the following table:

Description of Financing Transaction	No. of Common Shares Issued	Proceeds Received (Net of Broker Commissions and Fees )
Common shares issued pursuant to the December 2015 ATM Agreement between April 1, 2016 and June 30, 2016 (included within our issued and outstanding share count at June 30, 2016)	6,452,170	$	45,067
Common shares issued pursuant to the December 2015 ATM Agreement between July 1, 2016 and August 8, 2016	4,438,745	$	28,802

Conversion of Series E Convertible Voting Preferred Stock

In June 2016, our then 20 outstanding shares of Series E convertible voting preferred stock were converted (at the election of the preferred stockholders) into an aggregate of 40,000 common shares; a $6 thousand dividend in arrears was paid upon this conversion.

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Description of Business, Basis of Presentation, and Operating Segment (Policies)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Description of Business

(a) Description of Business

Spectrum Pharmaceuticals, Inc. (“Spectrum”, the “Company”, “we”, “our”, or “us”) is a biotechnology company, with a primary strategy comprised of acquiring, developing, and commercializing a broad and diverse pipeline of late-stage clinical and commercial products. In addition to an in-house clinical development organization with regulatory and data management capabilities, we have established a commercial infrastructure for our marketed products. Currently, we market six approved oncology/hematology products that target different types of non-Hodgkin's lymphoma ("NHL"), advanced metastatic colorectal cancer, acute lymphoblastic leukemia ("ALL"), and multiple myeloma ("MM").

We also have three drugs in late-stage development:

• SPI-2012 for chemotherapy-induced neutropenia in patients with breast cancer.

• QAPZOLA (formerly referred to as APAZIQUONE) for immediate intravesical instillation in post-transurethral resection of bladder tumors in patients with non-muscle invasive bladder cancer.

• POZIOTINIB, a novel pan-HER inhibitor used in the treatment of patients with breast cancer.

Basis of Presentation

(b) Basis of Presentation

Interim Financial Statements

The interim financial data as of June 30, 2016 and 2015 is unaudited, and is not necessarily indicative of our operating results for a full year. In the opinion of our management, the interim data includes normal and recurring adjustments necessary for a fair presentation of our financial results for the three and six months ended June 30, 2016 and 2015. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) have been condensed or omitted pursuant to U.S. Securities and Exchange Commission (“SEC”) rules and regulations relating to interim financial statements. The December 31, 2015 balances reported herein are derived from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2015. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and Notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on March 14, 2016.

Principles of Consolidation

The accompanying Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and with the rules and regulations of the SEC. These financial statements include the financial position, results of operations, and cash flows of Spectrum and its subsidiaries, all of which are wholly-owned (except for SPC, as discussed below). All inter-company accounts and transactions among these legal entities have been eliminated in consolidation.

Variable Interest Entity

We own fifty-percent of Spectrum Pharma Canada (“SPC”), a legal entity organized in Quebec, Canada in January 2008. Certain of our drug clinical studies are conducted through this “variable interest entity” (as defined under applicable GAAP) and we fund all of SPC’s operating costs. Since we carry the full risks and rewards of SPC, we meet the applicable GAAP criteria as being its “primary beneficiary.” Accordingly, SPC’s balance sheets and statements of operations are included in our Condensed Consolidated Financial Statements as if it were a wholly-owned subsidiary for all periods presented.

Operating Segment

(c) Operating Segment

We operate in one reportable operating segment that is focused exclusively on developing and commercializing oncology and hematology drug products. For the three and six months ended June 30, 2016 and 2015, all of our revenue and related expenses were solely attributable to these activities. Substantially all of our assets (excluding our cash held in certain foreign bank accounts and our ZEVALIN distribution rights for the Ex-U.S. territory) are held in the U.S.

Revenue Recognition

(i) Revenue Recognition

(a) Product Sales: We sell our products to wholesalers/distributors (i.e., our customers), except for our U.S. sales of ZEVALIN in which case the end-user (i.e. clinic or hospital) is our customer. Our wholesalers/distributors in turn sell our products directly to clinics, hospitals, and private oncology-based practices. Revenue from our product sales is recognized when title and risk of loss have transferred to our customer, and the following additional criteria are met:

(1) appropriate evidence of a binding arrangement exists with our customer;

(2) price is substantially fixed and determinable;

(3) collection from our customer is reasonably assured;

(4) our customer’s obligation to pay us is not contingent on resale of the product;

(5) we do not have significant continued performance obligations to our customer; and

(6) we have a reasonable basis to estimate returns.

Our gross revenue is reduced by our gross-to-net (“GTN”) estimates each period, resulting in our reported “product sales, net” in the accompanying Condensed Consolidated Statements of Operations. We defer revenue recognition in full if these estimates are not reasonably determinable at the time of sale. These estimates are based upon information received from external sources (such as written and oral information obtained from our customers with respect to their period-end inventory levels, and their sales to end-users during the period), in combination with management’s informed judgments. Due to the inherent uncertainty of estimates, the actual amount we incur may be materially different than our GTN estimates, and require prospective revenue adjustments in periods after the initial sale was recorded.

Our GTN estimates are comprised of the following categories:

Product Returns Allowances: Our FUSILEV, MARQIBO, and BELEODAQ customers are permitted to return purchased product beginning at its expiration date, and within six months thereafter. Our EVOMELA customers are permitted to return purchased product beginning at six months prior to its expiration date, and within 12 months thereafter (as well as for overstock inventory, as determined by end-users). Returned product is generally not resold. Returns for expiry of ZEVALIN and FOLOTYN are not contractually, or customarily, allowed. We estimate expected returns based on our historical return rates.

Government Chargebacks: Our products are subject to pricing limits under certain federal government programs (e.g., Medicare and 340B Drug Pricing Program). Qualifying entities (i.e., end-users) purchase product from our customers at their qualifying discounted price. The chargeback amount we incur represents the difference between our contractual sales price to our customer, and the end-user’s applicable discounted purchase price under the government program. There may be significant lag time between our reported net product sales and our receipt of corresponding government chargeback claims from our customers.

Prompt Pay Discounts: Discounts for prompt payment are estimated at the time of sale, based on our eligible customers’ prompt payment history and the contractual discount percentage.

Commercial Rebates: Commercial rebates are based on (i) our estimates of end-user purchases through a group purchasing organization ("GPO"), (ii) the corresponding contractual rebate percentage tier we expect each GPO to achieve, and (iii) our estimates of the impact of any prospective rebate program changes made by us.

Medicaid Rebates: Our products are subject to state government-managed Medicaid programs, whereby rebates are issued to participating state governments. These rebates arise when a patient treated with our product is covered under Medicaid, resulting in a discounted price for our product under the applicable Medicaid program. Our Medicaid rebate accrual calculations require us to project the magnitude of our sales, by state, that will be subject to these rebates. There is a significant time lag in us receiving rebate notices from each state (generally several months or longer after our sale is recognized). Our estimates are based on our historical claim levels by state, as supplemented by management’s judgment.

Distribution, Data, and GPO Administrative Fees: Distribution, data, and GPO administrative fees are paid to authorized wholesalers/distributors of our products (except for U.S. sales of ZEVALIN) for various commercial services, including: contract administration, inventory management, delivery of end-user sales data, and product returns processing. These fees are based on a contractually-determined percentage of our applicable sales.

(b) License Fees: We recognize revenue for our licensing of intellectual property to third-parties (out-licenses), based on the contractual terms of each agreement and our application of pertinent GAAP. This revenue may be associated with upfront license fees, milestone payments from our licensees’ sales or regulatory achievements, and royalties from our licensees’ sales in applicable territories.

(c) Service Revenue: We receive fees from third-parties under certain arrangements for our sales and marketing services, research and development activities, clinical trial management, and supply chain services. Payment may be triggered by contractual fixed payment schedules, the successful completion of a phase of development, results from a clinical trial, regulatory approval events, or completion of product delivery in our capacity as an agent in such arrangement. We recognize revenue when the corresponding milestone is achieved, or the revenue is otherwise earned and due to us through our on-going activities.

(d) New Revenue Recognition Standard: On April 1, 2015, the FASB voted for a one-year deferral of the effective date of the new revenue recognition standard, ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is now effective for us beginning January 1, 2018, requiring revenue recognition in a manner that reasonably reflects the delivery of our goods or services to customers in return for expected consideration. To achieve this core principle, the guidance provides the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation.

We intend to apply the cumulative effect transition method of ASU 2014-09, and we continue to evaluate the impact of this new standard on our current revenue recognition models for product sales, license fees, and service revenue, as described above.

Cash and Equivalents

(ii) Cash and Equivalents

Our cash and equivalents consist of bank deposits and highly liquid investments with maturities of three months or less from the purchase date.

Marketable Securities

(iii) Marketable Securities

Our marketable securities consist of our holdings in mutual funds and bank certificates of deposit. Since we classify these securities as “available-for-sale” under applicable GAAP, any unrealized gains or losses from their change in value is reflected in “unrealized gain on available-for-sale securities” on the accompanying Condensed Consolidated Statements of Comprehensive Loss. Realized gains and losses on available-for-sale securities are included in “other income (expense), net” on the accompanying Condensed Consolidated Statements of Operations.

Accounts Receivable

(iv) Accounts Receivable

Our accounts receivables are derived from our product sales and license fees (our service revenue is recorded in "other receivables"), and do not bear interest. The allowance for doubtful accounts is management’s best estimate of the amount of probable credit losses in our existing accounts receivable. Account balances are charged off against the allowance after appropriate collection efforts are exhausted.

Inventories

(v) Inventories

We value our inventory at the lower of (i) the actual cost of its purchase or manufacture, or (ii) its current market value. Inventory cost is determined on the first-in, first-out method ("FIFO"). We regularly review our inventory quantities in process of manufacture and on hand. When appropriate, we record a provision for obsolete and excess inventory to derive its new cost basis, which takes into account our sales forecast by product and corresponding expiry dates.

Direct and indirect manufacturing costs related to the production of inventory prior to U.S. Food and Drug Administration ("FDA") approval are expensed through “research and development,” rather than being capitalized to inventory cost.

Property and Equipment

(vi) Property and Equipment

Our property and equipment is stated at historical cost, and is depreciated on a straight-line basis over an estimated useful life that corresponds with its designated asset category. We evaluate the recoverability of “long-lived assets” (which includes property and equipment) whenever events or changes in circumstances in our business indicate that the asset’s carrying amount may not be recoverable through on-going operations.

Goodwill and Intangible Assets

(vii) Goodwill and Intangible Assets

Our goodwill represents the excess of our business acquisition cost over the estimated fair value of the net assets acquired in the corresponding transaction. Goodwill has an indefinite accounting life and is therefore not amortized. Instead, goodwill is evaluated for impairment on an annual basis (as of each October 1st), unless we identify impairment indicators that would require earlier testing.

We evaluate the recoverability of indefinite-lived intangible assets at least annually, or whenever events or changes in our business indicate that an intangible asset’s (whether indefinite or definite-lived) carrying amount may not be recoverable. Such circumstances could include, but are not limited to the following:

(a) a significant decrease in the market value of an asset;

(b) a significant adverse change in the extent or manner in which an asset is used; or

(c) an accumulation of costs significantly in excess of the amount originally expected for the acquisition of an asset.

Intangible assets with finite useful lives are amortized over their estimated useful lives on a straight-line basis. We review these assets for potential impairment if/when facts or circumstances suggest that the carrying value of these assets may not be recoverable.

Stock-Based Compensation

(viii) Stock-Based Compensation

Stock-based compensation expense for equity awards granted to our employees and members of our board of directors is recognized on a straight-line basis over each award's vesting period. Recognized compensation expense is net of an estimated forfeiture rate, representing the percentage of awards that are expected to be forfeited (by termination of employment or service) prior to vesting. We use the Black-Scholes option pricing model to determine the fair value of stock options (as of the date of grant) which carry service conditions for vesting. When applicable, we use the Monte Carlo valuation model to value equity awards (as of the date of grant) which carry combined market conditions and service conditions for vesting.

The calculation of the fair value of stock options on the date of grant, and the recognition of stock-based compensation expense over the appropriate time period, requires uncertain assumptions, including (a) the pre-vesting forfeiture rate of the stock option, (b) the term of the stock option, (c) the stock price volatility over the term of the stock option, and (d) the risk-free interest rate over the term of the stock option. 

We estimate forfeiture rates based on our employees’ overall forfeiture history, which we believe will be representative of future results. We estimate the expected term of stock options granted based on our employees’ historical exercise patterns, which we believe will be representative of their future behavior. We estimate the volatility of our common stock on the date of grant based on historical volatility of our common stock for a look-back period that corresponds with the expected term. We estimate the risk-free interest rate based upon the U.S. Treasury yields in effect at award grant, for a period equaling the stock options’ expected term.

Foreign Currency Transactions and Translation

(ix) Foreign Currency Translation

We translate the assets and liabilities of our foreign subsidiaries that are stated in their functional currencies (i.e., local operating currencies), to U.S. dollars at the rates of exchange in effect at the reported balance sheet date. Revenues and expenses are translated using the monthly average exchange rates during the reported period. Unrealized gains and losses from the translation of our subsidiaries’ financial statements (that are initially denominated in the corresponding functional currency) are included as a separate component of “accumulated other comprehensive loss” in the Condensed Consolidated Balance Sheets.

We record foreign currency transactions, when initially denominated in a currency other than the respective functional currency of our subsidiary, at the prevailing exchange rate on the date of the transaction. Resulting unrealized foreign exchange gains and losses from transactions with third parties are included in “accumulated other comprehensive loss” in the Condensed Consolidated Balance Sheets.

All unrealized foreign exchange gains and losses associated with our intercompany loans are included in "accumulated other comprehensive loss" in the Condensed Consolidated Balance Sheets, as these loans with our foreign subsidiaries are not expected to be settled in the "foreseeable future." For the period January 1, 2015 through March 31, 2015, unrealized foreign exchange gains and losses associated with our intercompany loans were included in "accumulated other comprehensive loss" in the Condensed Consolidated Balance Sheets and in "other income (expense), net" in the Condensed Consolidated Statements of Operations.

Basic and Diluted Net (Loss) Income per Share

(x) Basic and Diluted Net (Loss) Income per Share

We calculate basic and diluted net (loss) income per share using the weighted average number of common shares outstanding during the periods presented. In periods of a net loss, basic and diluted loss per share are the same. For the diluted earnings per share calculation, we adjust the weighted average number of common shares outstanding to include only dilutive stock options, warrants, and other common stock equivalents outstanding during the period.

Income Taxes

(xi) Income Taxes

Deferred tax assets and liabilities are recorded based on the estimated future tax effects of temporary differences between the tax basis of assets and liabilities and amounts reported in the financial statements, as well as operating losses and tax credit carry forwards using enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. Realization of deferred tax assets is dependent upon future earnings, the timing and amount of which are uncertain.

We have recorded a valuation allowance to reduce our deferred tax assets, because we believe that, based upon a weighting of positive and negative factors, it is more likely than not that these deferred tax assets will not be realized. If/when we determine that our deferred tax assets are realizable, an adjustment to the corresponding valuation allowance would increase our net income in the period that such determination was made.

In the event that we are assessed interest and/or penalties from taxing authorities that have not been previously accrued, such amounts would be included in “benefit (provision) for income taxes” within the Condensed Consolidated Statements of Operations in the period the notice was received.

Research and Development Costs

(xii) Research and Development Costs

Our research and development costs are expensed as incurred, or as certain milestone payments become due, generally triggered by clinical or regulatory events.

Fair Value Measurements

(xiii) Fair Value Measurements

We determine measurement-date fair value based on the proceeds that would be received through the sale of the asset, or that we would pay to settle or transfer the liability, in an orderly transaction between market participants. We utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. Fair value measurements are based on a three-tier hierarchy that prioritizes the inputs used in descending order to measure fair value. These tiers include the following:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that are publicly accessible at the measurement date.

Level 2: Observable prices that are based on inputs not quoted on active markets, but that are corroborated by market data. These inputs may include quoted prices for similar assets or liabilities or quoted market prices in markets that are not active to the general public.

Level 3: Unobservable inputs are used when little or no market data is available.

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Balance Sheet Account Detail (Tables)

6 Months Ended

Jun. 30, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Cash And Cash Equivalent Marketable Securities Unrealized Gain Table

The following is a summary of our “cash and cash equivalents” and “marketable securities”:

											Marketable Securities
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cash and Cash Equivalents			Current		Long Term
June 30, 2016
Bank deposits	$	75,582	$	—	$	—	$	75,582	$	75,582		$	—	$	—
Money market funds	80,177		—		—		80,177		80,177			—		—
Bank certificates of deposits	247		—		—		247		—			247		—
Total cash and equivalents and marketable securities	$	156,006	$	—	$	—	$	156,006	$	155,759		$	247	$	—
December 31, 2015
Bank deposits	$	59,625	$	—	$	—	$	59,625	$	59,625		$	—	$	—
Money market funds	80,116		—		—		80,116		80,116			—		—
Bank certificates of deposits	245		—		—		245		—			245		—
Total cash and equivalents and marketable securities	$	139,986	$	—	$	—	$	139,986	$	139,741		$	245	$	—

Schedule of Property and Equipment Net of Accumulated Depreciation

“Property and equipment, net of accumulated depreciation” consist of the following:

	June 30, 2016			December 31, 2015
Computer hardware and software	$	3,823		$	3,785
Laboratory equipment	622			608
Office furniture	355			355
Leasehold improvements	2,880			2,872
Property and equipment, at cost	7,680			7,620
(Less): Accumulated depreciation	(7,037		)	(6,702		)
Property and equipment, net of accumulated depreciation	$	643		$	918

Components of Inventories

“Inventories” consist of the following:

	June 30, 2016			December 31, 2015
Raw materials	$	2,199		$	1,606
Work-in-process*	7,020			4,228
Finished goods	2,792			1,498
(Less:) Non-current portion of inventories included within "other assets" **	(5,606		)	(3,156		)
Inventories	$	6,405		$	4,176

* In January 2016, we received $3.4 million of ZEVALIN antibody materials for its future manufacture (representing strategic long-term supply).

** The "non-current" portion of inventories is presented within "other assets" in the accompanying Condensed Consolidated Balance Sheet at June 30, 2016. This value of $5.6 million represents product that we expect to sell beyond June 30, 2017.

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure

“Prepaid expenses and other assets” consist of the following:

	June 30, 2016		December 31, 2015
Prepaid operating expenses	$	2,954	$	3,507
Current portion of debt issuance costs*	—		—
Prepaid expenses and other assets	$	2,954	$	3,507

* Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14) within our accompanying Consolidated Balance Sheets, in accordance with the FASB-issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). These amounts were $1.8 million and $2.2 million (including current and non-current portions) as of June 30, 2016 and December 31, 2015, respectively.

Schedule of Other Receivables

“Other receivables” consist of the following:

	June 30, 2016		December 31, 2015
Income tax receivable	$	1,209	$	1,301
Insurance receivable	350		7,100
Mundipharma promissory note	—		2,215
CASI note - short term*	1,500		—
Eagle receivable for services and support costs (Note 13)	1,939		—
Research and development expenses - reimbursements due	1,699		1,699
Other miscellaneous receivables	271		257
Other receivables	$	6,968	$	12,572

* This full balance was prospectively reclassified beginning March 31, 2016 to "other receivables" (presented within current assets on the accompanying Condensed Consolidated Balance Sheets) from "other assets" (presented within non-current assets) due to this note's maturity date of March 17, 2017 (i.e., within 12 months of June 30, 2016) - see Note 10.

Components of Intangible Assets Net of Accumulated Amortization

“Intangible assets, net of accumulated amortization and impairment charges” consist of the following:

			June 30, 2016
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount		Full Amortization Period (months)	Remaining Amortization Period (months)
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600	n/a	n/a
EVOMELA distribution rights (1)	7,700		(148		)	—			—			7,552		156	153
BELEODAQ distribution rights	25,000		(3,750		)	—			—			21,250		160	136
MARQIBO distribution rights	26,900		(10,703		)	—			—			16,197		81	45
FOLOTYN distribution rights (2)	118,400		(34,498		)	—			—			83,902		152	77
ZEVALIN distribution rights – U.S.	41,900		(32,346		)	—			—			9,554		123	33
ZEVALIN distribution rights – Ex-U.S.	23,490		(13,634		)	(4,006		)	—			5,850		96	45
FUSILEV distribution rights (3)	16,778		(9,618		)	—			(7,160		)	—		56	0
FOLOTYN out-license (4)	27,900		(10,470		)	—			(1,023		)	16,407		110	73
Total intangible assets	$	305,668	$	(115,167	)	$	(4,006	)	$	(8,183	)	$	178,312

(1) The FDA approval of EVOMELA in March 2016 triggered a $6 million payment due to CyDex Pharmaceuticals, Inc. (a wholly-owned subsidiary of Ligand Pharmaceuticals Incorporated). This event also resulted in a reclassification of our $7.7 million "EVOMELA IPR&D" to "EVOMELA distribution rights" due to our ability to begin its commercialization with this FDA approval. Amortization commenced on April 1, 2016, in accordance with our capitalization policy for intangible assets.

(2) Beginning June 2016, we adjusted the amortization period of our FOLOTYN distribution rights to November 2022 from March 2025, representing the period through which we expect to have patent protection from generic competition (see Note 16(g)).

(3) On February 20, 2015, the U.S. District Court for the District of Nevada found the patent covering FUSILEV to be invalid, which was upheld on appeal. On April 24, 2015, Sandoz began to commercialize a generic version of FUSILEV. This represented a “triggering event” under applicable GAAP in evaluating the value of our FUSILEV distribution rights as of March 31, 2015, resulting in a $7.2 million impairment charge (non-cash) in the first quarter of 2015. We accelerated amortization expense recognition in 2015 for the remaining net book value of FUSILEV distribution rights.

(4) On May 29, 2013, we amended our FOLOTYN collaboration agreement with Mundipharma. As a result of the amendment, Europe and Turkey were excluded from Mundipharma’s commercialization territory, and their royalty rates and milestone payments to us were modified. This constituted a change under which we originally valued the FOLOTYN out-license as part of business combination accounting, resulting in an impairment charge (non-cash) of $1.0 million in the second quarter of 2013.

			December 31, 2015
	Historical Cost		Accumulated Amortization			Foreign Currency Translation			Impairment			Net Amount
MARQIBO IPR&D (NHL and other novel indications)	$	17,600	$	—		$	—		$	—		$	17,600
EVOMELA IPR&D	7,700		—			—			—			7,700
BELEODAQ distribution rights	25,000		(2,812		)	—			—			22,188
MARQIBO distribution rights	26,900		(8,544		)	—			—			18,356
FOLOTYN distribution rights	118,400		(29,474		)	—			—			88,926
ZEVALIN distribution rights – U.S.	41,900		(30,608		)	—			—			11,292
ZEVALIN distribution rights – Ex-U.S.	23,490		(12,632		)	(4,353		)	—			6,505
FUSILEV distribution rights	16,778		(9,618		)	—			(7,160		)	—
FOLOTYN out-license	27,900		(9,109		)	—			(1,023		)	17,768
Total intangible assets	$	305,668	$	(102,797	)	$	(4,353	)	$	(8,183	)	$	190,335

Estimated Intangible Asset Amortization Expense

Estimated intangible asset amortization expense for the remainder of 2016 and the five succeeding fiscal years and thereafter is as follows:

Years Ending December 31,
Remainder of 2016	$	13,810
2017	27,620
2018	27,620
2019	25,014
2020	19,736
2021	18,266
2022 and thereafter	28,646
	$	160,712

Schedule of Goodwill

“Goodwill” is comprised of the following:

	June 30, 2016			December 31, 2015
Acquisition of Talon (MARQIBO rights)	$	10,526		$	10,526
Acquisition of ZEVALIN Ex-U.S. distribution rights	2,525			2,525
Acquisition of Allos (FOLOTYN rights)	5,346			5,346
Foreign currency exchange translation effects	(400		)	(437		)
Goodwill	$	17,997		$	17,960

Summary of Other Assets

“Other assets” are comprised of the following:

	June 30, 2016		December 31, 2015
Equity securities and secured promissory note - CASI (see Note 10)*	$	8,300	$	6,689
Supplies and deposits	171		185
2018 Convertible Notes issuance costs (excluding current portion)**	—		—
Executive officer life insurance – cash surrender value	11,478		9,181
Inventories - non-current portion	5,606		3,156
Other miscellaneous assets	45		—
Other assets	$	25,600	$	19,211

* These equity securities were excluded from “marketable securities” (see Note 3(a)) due to our intent to hold these securities for at least one year beyond June 30, 2016, as discussed in Note 10. Unrealized gains from these equity securities were recognized through “unrealized gain on available-for-sale securities" within the Condensed Consolidated Statements of Comprehensive Loss, and were $2.5 million for the six months ended June 30, 2016.

** Beginning January 1, 2016, our debt issuance costs (current and non-current portions) were retrospectively reclassified from “prepaid expenses and other assets” and "other assets" to a reduction of the carrying amount of “convertible senior notes” (i.e., contra-liability - see Note 14) within our accompanying Consolidated Balance Sheets, in accordance with ASU 2015-03. These amounts were $1.8 million and $2.2 million (including current and non-current portions) as of June 30, 2016 and December 31, 2015, respectively.

Schedule of Accounts Payable and Other Accrued Liabilities

“Accounts payable and other accrued liabilities” are comprised of the following:

	June 30, 2016		December 31, 2015
Trade accounts payable and other accrued liabilities	$	29,912	$	26,684
Accrued rebates	7,757		18,166
Accrued product royalty	4,372		4,908
Allowance for returns	1,734		1,394
Accrued data and distribution fees	1,983		1,830
Accrued GPO administrative fees	537		1,058
Accrued inventory management fee	412		498
Allowance for chargebacks	1,501		2,001
Accounts payable and other accrued liabilities	$	48,208	$	56,539

Schedule of Amounts Presented in Accounts Payable and Other Accrued Liabilities

Amounts presented within “accounts payable and other accrued liabilities” in the accompanying Condensed Consolidated Balance Sheets specifically for gross-to-net ("GTN") estimates (see Note 2(i)) are as follows:

	Rebates and Chargebacks			Data and Distribution, GPO Fees, and Inventory Management Fees			Returns
Balance as of December 31, 2014	$	45,822		$	8,284		$	1,135
Add: provisions	75,498			15,928			1,486
(Less): credits or actual allowances	(101,153		)	(20,826		)	(1,227		)
Balance as of December 31, 2015	20,167			3,386			1,394
Add: provisions	41,222			6,001			1,018
(Less): credits or actual allowances	(52,131		)	(6,455		)	(678		)
Balance as of June 30, 2016	$	9,258		$	2,932		$	1,734

Deferred Revenue, by Arrangement, Disclosure

Deferred revenue (current and non-current) is comprised of the following:

	June 30, 2016		December 31, 2015
Mundipharma deferred revenue (see Note 11)	$	2,175	$	—
EVOMELA deferred revenue*	1,622		—
FUSILEV deferred revenue**	—		6,083
Dr. Reddy's out-license (see Note 16(b)(iii))	414		430
Deferred revenue	$	4,211	$	6,513

*We commercialized EVOMELA beginning in April 2016, and have deferred revenue recognition (see Note 2(i)(a)) for any product shipped to our distributors, but not ordered and received by end-users as of June 30, 2016.

**In the third quarter 2015, we deferred revenue recognition related to certain FUSILEV product shipments that did not meet our revenue recognition criteria (see Note 2(i)(a)), aggregating $9.9 million. Specifically, this deferral resulted from our inability to concurrently estimate future rebate values (with requisite precision) offered to our customers in order to compete with generic products. During the fourth quarter of 2015, we recognized $3.8 million for these third quarter shipments, and $6.1 million remained deferred as of December 31, 2015. In the first quarter 2016, this $6.1 million of deferred revenue was recognized in full.

Summary of Other Long-Term Liabilities

Other long-term liabilities are comprised of the following:

	June 30, 2016		December 31, 2015
Accrued executive deferred compensation	$	7,672	$	6,458
Deferred rent (non-current portion)	219		248
Clinical study holdback costs, non-current	32		—
Other tax liabilities	738		738
Other long-term liabilities	$	8,661	$	7,444

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Gross-to-Net Product Sales (Tables)

6 Months Ended

Jun. 30, 2016

Revenue, Net [Abstract]

Reconciliation of Gross to Net Product Sales

The below table presents a GTN product sales reconciliation for the accompanying Condensed Consolidated Statement of Operations:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Gross product sales	$	56,439		$	52,800		$	114,450		$	115,398
Commercial rebates and government chargebacks	(21,270		)	(13,705		)	(41,222		)	(31,850		)
Data and distribution fees, GPO fees, and inventory management fees	(3,774		)	(3,635		)	(6,001		)	(9,205		)
Prompt pay discounts	(80		)	(1		)	(80		)	(1		)
Product returns allowance	(428		)	(315		)	(1,018		)	(785		)
Net product sales	$	30,887		$	35,144		$	66,129		$	73,557

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Net Product Sales by Geographic Region and Product Line, and Composition of License Fees and Service Revenue (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Schedule of Product Sales, Net by Geography

The below table presents our net product sales by geography for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
United States	$	30,037	97.2	%	$	33,676	95.8	%	$	63,816	96.5	%	$	70,284	95.6	%
International:
Europe	850		2.8	%	514		1.5	%	2,313		3.5	%	1,097		1.5	%
Asia Pacific*	—		—	%	954		2.7	%	—		—	%	2,176		3.0	%
Total international	850		2.8	%	1,468		4.2	%	2,313		3.5	%	3,273		4.5	%
Net product sales	$	30,887	100.0	%	$	35,144	100.0	%	$	66,129	100.0	%	$	73,557	100.0	%

* See Note 11 for discussion of our November 2015 out-license for Asia Pacific territory to Mundipharma.

Schedule Of Net Sales By Product Line Table

The below table presents our net product sales by product line for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
FUSILEV	$	10,467	33.9	%	$	14,329	40.8	%	$	25,676	38.8	%	$	34,496	46.9	%
FOLOTYN	10,970		35.5	%	12,222		34.8	%	24,262		36.7	%	21,538		29.3	%
ZEVALIN	2,811		9.1	%	4,802		13.7	%	5,595		8.5	%	9,023		12.3	%
MARQIBO	2,067		6.7	%	2,080		5.9	%	2,996		4.5	%	3,974		5.4	%
BELEODAQ	3,664		11.9	%	1,711		4.9	%	6,692		10.1	%	4,526		6.2	%
EVOMELA	908		2.9	%	—		—	%	908		1.4	%	—		—	%
Net product sales	$	30,887	100.0	%	$	35,144	100.0	%	$	66,129	100.0	%	$	73,557	100.0	%

The below table presents our license fee and service revenue by source for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
Out-license to Servier in Canada territory (Note 12)	$	—	—	%	$	—	—	%	$	6,000	51.3	%	$	—	—	%
Co-Promotion with Eagle (Note 13)	2,398		78.3	%	—		—	%	4,332		37.1	%	—		—	%
Out-license to Mundipharma in China and other ex-U.S. territories (Note 11 and 15)	629		20.5	%	144		1.5	%	1,313		11.2	%	336		3.3	%
Out-license to CASI in China territory (Note 10)	—		—	%	9,682		98.4	%	—		—	%	9,682		96.4	%
Other license fees and service revenues	35		1.1	%	12		0.1	%	41		0.4	%	24		0.2	%
License fees and service revenues	$	3,062	100.0	%	$	9,838	100.0	%	$	11,686	100.0	%	$	10,042	100.0	%

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock-Based Compensation Expense

Stock-based compensation expense included within “Total operating costs and expenses” for the three and six months ended June 30, 2016 and 2015 was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Cost of product sales	$	27	$	22	$	54	$	22
Research and development	610		419		991		852
Selling, general and administrative	2,790		3,087		5,559		5,116
Total stock-based compensation	$	3,427	$	3,528	$	6,604	$	5,990

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Net Loss Per Share (Tables)

6 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Computation of Net Loss Per Share

Net loss per share was computed by dividing net loss by the weighted average number of common shares outstanding for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net loss	$	(24,295	)	$	(2,346	)	$	(33,616	)	$	(27,908	)
Weighted average shares – basic and diluted	68,575,021			65,466,004			67,146,188			65,167,162
Net loss per share – basic and diluted	$	(0.35	)	$	(0.04	)	$	(0.50	)	$	(0.43	)

Schedule of Securities Excluded from Calculation of Net Loss Per Share

The below outstanding securities were excluded from the above calculation of net loss per share because their impact would have been anti-dilutive due to net loss per share in the three and six months ended June 30, 2016 and 2015, as summarized below:

	Three Months Ended June 30,		Six Months Ended June 30,
	2016	2015	2016	2015
2018 Convertible Notes	11,401,284	11,401,284	11,401,284	11,401,284
Common stock options	2,253,595	1,383,667	1,508,705	1,465,449
Restricted stock awards	2,472,520	1,544,492	2,472,520	1,544,492
Common stock warrants	32,868	30,236	2,475	37,470
Preferred stock	—	40,000	—	40,000
Total	16,160,267	14,399,679	15,384,984	14,488,695

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value Disclosures [Abstract]

Summary of Asset and Liability Fair Values

The table below summarizes certain asset and liability fair values that are included within our accompanying Condensed Consolidated Balance Sheets, and their designations among three fair value measurement categories:

	June 30, 2016 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	247	$	—	$	247
Money market currency funds	—		80,177		—		80,177
Equity securities	8,300		—		—		8,300
Mutual funds	—		45		—		45
Deferred compensation investments, including life insurance cash surrender value	—		11,478		—		11,478
	$	8,300	$	91,947	$	—	$	100,247
Liabilities:
Deferred executive compensation liability	$	—	$	7,672	$	—	$	7,672
Drug development liability (Note 15)	—		—		14,383		14,383
Talon CVR (Note 9(a))	—		—		1,931		1,931
Corixa Liability	—		—		62		62
	$	—	$	7,672	$	16,376	$	24,048

	December 31, 2015 Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Assets:
Bank certificates of deposits	$	—	$	245	$	—	$	245
Money market currency funds	—		80,116		—		80,116
Equity securities	5,189		—		—		5,189
Deferred compensation investments, including life insurance cash surrender value	—		9,181		—		9,181
	$	5,189	$	89,542	$	—	$	94,731
Liabilities:
Deferred executive compensation liability	$	—	$	6,458	$	—	$	6,458
Drug development liability	—		—		14,686		14,686
Ligand Contingent Consideration	—		—		5,227		5,227
Talon CVR	—		—		1,377		1,377
Corixa Liability	—		—		62		62
	$	—	$	6,458	$	21,352	$	27,810

Fair Value Measurement Activity for Liabilities Utilize Level 3 Inputs

The following presents a roll forward of our liabilities for which we utilize Level 3 inputs in determining period-end value. These liabilities are included on our Condensed Consolidated Balance Sheets within “acquisition-related contingent obligations” and “drug development liability”. The basis of the various Level 3 valuationinputs are discussed in the Notes to these accompanying Condensed Consolidated Financial Statements.

Our carrying amounts of financial instruments such as cash equivalents, accounts receivable, prepaid expenses, accounts payable, and accrued liabilities, excluding acquisition-related contingent obligations, approximate their related fair values due to their short-term nature.

	Fair Value Measurements of Unobservable Inputs (Level 3)
Balance at December 31, 2014	$	23,127
Deferred drug development costs	(1,099		)
Ligand Contingent Consideration fair value adjustment	326
Talon CVR fair value adjustment	(1,002		)
Balance at December 31, 2015	21,352
Settlement of Ligand Contingent Consideration liability (seeNote 9(b))	(6,000		)
Deferred drug development costs (see Note 15)	(303		)
Ligand Contingent Consideration fair value adjustment prior to settlement (see Note 9(b))	773
Talon CVR fair value adjustment (see Note 9(a))	554
Balance at June 30, 2016*	$	16,376

* This amount is comprised of the current and non-current portions of “drug development liability” and “acquisition-related contingent obligations” on our accompanying Condensed Consolidated Balance Sheets.

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Business Combinations and Contingent Consideration (Tables)

6 Months Ended

Jun. 30, 2016

Talon Therapeutics, Inc. [Member]

Change in Fair Value of Contingent Consideration Related to Acquisitions

	Fair Value of Talon CVR
December 31, 2015	$	1,377
Fair value adjustment for the six months ended June 30, 2016	554
June 30, 2016	$	1,931

Acquisition-Date Fair Value of Consideration Transferred

The acquisition-date fair value of the consideration transferred consisted of the following:

Cash consideration	$	3,000
Ligand Contingent Consideration	4,700
Total purchase consideration	$	7,700

Melphalan license [Member]

Change in Fair Value of Contingent Consideration Related to Acquisitions

	Fair Value of Ligand Contingent Consideration
December 31, 2015	$	5,227
Fair value adjustment for the three months ended March 31, 2016	773
Payment to Ligand in April 2016	$	(6,000	)
June 30, 2016	$	—

Summary of Allocation of Total Purchase Price to Net Assets Acquired

The allocation of the total purchase price to the net assets acquired is as follows:

EVOMELA IPR&D $ 7,700

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Out-License of Marqibo, Zevalin, and Evolema in China Territory to CASI (Tables)

6 Months Ended

Jun. 30, 2016

Other Commitments [Abstract]

Schedule of Proceeds Received and Fair Value on CASI Out-License Execution Date

The proceeds we received, and its fair value on the CASI Out-License execution date, consisted of the following:

CASI common stock (5.4 million shares)	$	8,649	(a)
CASI secured promissory note due March 17, 2017, net of fair value discount ($1.5 million face value and 0.5% annual coupon)	1,310		(b)
Total consideration received, net of fair value discount	$	9,959

(a) Value determined based on the September 17, 2014 closing price of 5.4 million shares of CASI common stock on the NASDAQ Capital Market of $1.60 per share. Our current intention is to hold these securities on a long-term basis. Accordingly, we have presented its value of $8.3 million as of June 30, 2016 within "other assets" (rather than "marketable securities") on our accompanying Condensed Consolidated Balance Sheets. The change in fair value of these securities is reported within “unrealized gain on available-for-sale securities" on the Condensed Consolidated Statements of Comprehensive Loss.

(b) Value estimated using the terms of the $1.5 million promissory note, the application of a synthetic debt rating based on CASI’s publicly-available financial information, and the prevailing interest yields on similar public debt securities as of September 17, 2014. The face value of the promissory note as of June 30, 2016 is included within "other receivables" on the accompanying Condensed Consolidated Balance Sheets.

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Convertible Senior Notes (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Carrying Value of 2018 Convertible Notes

The carrying value of the 2018 Convertible Notes as of June 30, 2016 is summarized as follows:

Principal amount	$	120,000
(Less): Unamortized debt discount (amortized through December 2018)	(15,652		)
(Less): Debt issuance costs (see Note 3(d))	(1,826		)
June 30, 2016 carrying value	$	102,522

Components of the Interest Expense Recognized

The following table sets forth the components of interest expense recognized in the accompanying Condensed Consolidated Statements of Operations for the 2018 Convertible Notes for the six months ended June 30, 2016:

Contractual coupon interest expense	$	1,650
Amortization of debt issuance costs	345
Accretion of debt discount	2,800
Total	$	4,795
Effective interest rate	8.66		%

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Mundipharma Agreement And Drug Development Liability (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Schedule of Drug Development Liability Adjustments

	Drug Development Liability, Current – FOLOTYN			Drug Development Liability, Long Term – FOLOTYN			Total Drug Development Liability – FOLOTYN
Balance at December 31, 2015	$	259		$	14,427		$	14,686
Transfer from long-term to current in 2016	200			(200		)	—
(Less): Expenses incurred in 2016	(303		)	—			(303		)
Balance at June 30, 2016	$	156		$	14,227		$	14,383

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Stockholders' Equity (Tables)

6 Months Ended

Jun. 30, 2016

Equity [Abstract]

Stock Issued

During the second quarter of 2016 and through August 8, 2016, we sold and issued shares of our common stock under this December 2015 ATM Agreement, as summarized in the following table:

Description of Financing Transaction	No. of Common Shares Issued	Proceeds Received (Net of Broker Commissions and Fees )
Common shares issued pursuant to the December 2015 ATM Agreement between April 1, 2016 and June 30, 2016 (included within our issued and outstanding share count at June 30, 2016)	6,452,170	$	45,067
Common shares issued pursuant to the December 2015 ATM Agreement between July 1, 2016 and August 8, 2016	4,438,745	$	28,802

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Description of Business, Basis of Presentation, and Operating Segment - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2016 Segment product
Segment Reporting Information [Line Items]
Number of late stage development products	3
Number of reportable operating segment | Segment	1
Spectrum Pharma Canada [Member]
Segment Reporting Information [Line Items]
Ownership interest, percentage	50.00%
Cancer Drugs [Member]
Segment Reporting Information [Line Items]
Number of products for sale	6

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Use of Estimates and Summary of Significant Accounting Policies - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Line Items]
Number of months customers are allowed to return products	6 months
Cash and equivalents maturities period	3 months
EVOMELA [Member]
Accounting Policies [Line Items]
Number of months customers are allowed to return products	12 months

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Balance Sheet Account Detail - Summary of Cash and Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Schedule of Investments [Line Items]
Cash and cash equivalents, Marketable securities, Cost	$ 156,006	$ 139,986
Cash and cash equivalents, Marketable securities, Gross Unrealized Gains	0	0
Cash and cash equivalents, Marketable securities, Gross Unrealized Losses	0	0
Marketable security, Estimated fair Value	45
Cash and cash equivalents, Marketable securities, Estimated fair Value	156,006	139,986
Cash and cash equivalents	155,759	139,741	$ 142,271	$ 129,942
Marketable Security, Current	247	245
Bank Deposits [Member]
Schedule of Investments [Line Items]
Bank deposits, Cost	75,582	59,625
Bank deposits, Gross Unrealized Gains	0	0
Bank deposits, Gross Unrealized Losses	0	0
Bank deposits, Estimated fair Value	75,582	59,625
Cash and cash equivalents	75,582	59,625
Money market funds [Member]
Schedule of Investments [Line Items]
Marketable security, Amortized Cost	80,177	80,116
Marketable security, Gross Unrealized Gains	0	0
Marketable security, Gross Unrealized Losses	0	0
Marketable security, Estimated fair Value	80,177	80,116
Cash and cash equivalents	80,177	80,116
Bank CDs [Member]
Schedule of Investments [Line Items]
Marketable security, Amortized Cost	247	245
Marketable security, Gross Unrealized Gains	0	0
Marketable security, Gross Unrealized Losses	0	0
Marketable security, Estimated fair Value	247	245
Marketable Security, Current	$ 247	$ 245

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Balance Sheet Account Detail - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Schedule Of Investments In Marketable Securities [Line Items]
Securities in continuous unrealized loss position, period		longer than one year.
Depreciation expense		$ 300	$ 400
Intangible asset amortization expense		12,100	13,700
Impairment of intangible assets		$ 8,183		$ 8,183
Other Intangible Assets [Member]
Schedule Of Investments In Marketable Securities [Line Items]
Intangible asset amortization expense			20,900
FUSILEV [Member]
Schedule Of Investments In Marketable Securities [Line Items]
Impairment of intangible assets	$ 7,200		$ 7,200

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Balance Sheet Account Detail - Schedule of Property and Equipment Net of Accumulated Depreciation (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	$ 7,680	$ 7,620
(Less): Accumulated depreciation	(7,037)	(6,702)
Property and equipment, net of accumulated depreciation	643	918
Computer hardware and software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	3,823	3,785
Laboratory equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	622	608
Office furniture [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	355	355
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, at cost	$ 2,880	$ 2,872

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Balance Sheet Account Detail - Components of Inventories (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Jan. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
Raw materials	$ 2,199		$ 1,606
Work-in-process	7,020		4,228
Finished goods	2,792		1,498
(Less:) Non-current portion of inventories included within other assets	(5,606)		(3,156)
Inventories	$ 6,405		$ 4,176
ZEVALIN [Member]
Inventory [Line Items]
Work-in-process		$ 3,400

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Balance Sheet Account Detail - Prepaid Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prepaid operating expenses	$ 2,954	$ 3,507
Current portion of debt issuance costs	0	0
Prepaid expenses and other assets	2,954	3,507
Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	1,800	2,200
Other Assets [Member] | Accounting Standards Update 2015-03 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ (1,800)	$ (2,200)

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Balance Sheet Account Detail - Schedule of Other Receivables (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Income tax receivable	$ 1,209	$ 1,301
Insurance receivable	350	7,100
Mundipharma promissory note	0	2,215
CASI note - short term	1,500	0
Eagle receivable for services and support costs (Note 13)	1,939	0
Research and development expenses - reimbursements due	1,699	1,699
Other miscellaneous receivables	271	257
Other receivables	$ 6,968	$ 12,572

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Balance Sheet Account Detail - Components of Intangible Assets Net of Accumulated Amortization (Detail) - USD ($) $ in Thousands			1 Months Ended	3 Months Ended	6 Months Ended		12 Months Ended
	Mar. 10, 2016	May 29, 2013	Mar. 31, 2016	Mar. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Product Rights [Line Items]
Historical Cost					$ 305,668		$ 305,668
Accumulated Amortization					(115,167)		(102,797)
Foreign Currency Translation					(4,006)		(4,353)
Impairment					(8,183)		(8,183)
Net Amount					178,312		190,335
Ligand Pharmaceuticals Inc [Member]
Product Rights [Line Items]
Milestone payments	$ 6,000		$ 6,000
MARQIBO IPR&D (NHL indication) [Member]
Product Rights [Line Items]
Historical Cost					17,600		17,600
Accumulated Amortization					0		0
Foreign Currency Translation					0		0
Impairment					0		0
Net Amount					17,600		17,600
EVOMELA distribution rights [Member]
Product Rights [Line Items]
Historical Cost					7,700		7,700
Accumulated Amortization					(148)		0
Foreign Currency Translation					0		0
Impairment					0		0
Net Amount					$ 7,552		7,700
Full Amortization Period (months)					156 months
Remaining Amortization Period (months)					153 months
BELEODAQ distribution rights [Member]
Product Rights [Line Items]
Historical Cost					$ 25,000		25,000
Accumulated Amortization					(3,750)		(2,812)
Foreign Currency Translation					0		0
Impairment					0		0
Net Amount					$ 21,250		22,188
Full Amortization Period (months)					160 months
Remaining Amortization Period (months)					136 months
MARQIBO distribution rights [Member]
Product Rights [Line Items]
Historical Cost					$ 26,900		26,900
Accumulated Amortization					(10,703)		(8,544)
Foreign Currency Translation					0		0
Impairment					0		0
Net Amount					$ 16,197		18,356
Full Amortization Period (months)					81 months
Remaining Amortization Period (months)					45 months
FOLOTYN distribution rights [Member]
Product Rights [Line Items]
Historical Cost					$ 118,400		118,400
Accumulated Amortization					(34,498)		(29,474)
Foreign Currency Translation					0		0
Impairment		$ (1,000)			0		0
Net Amount					$ 83,902		88,926
Full Amortization Period (months)					152 months
Remaining Amortization Period (months)					77 months
ZEVALIN distribution rights [Member] | United States [Member]
Product Rights [Line Items]
Historical Cost					$ 41,900		41,900
Accumulated Amortization					(32,346)		(30,608)
Foreign Currency Translation					0		0
Impairment					0		0
Net Amount					$ 9,554		11,292
Full Amortization Period (months)					123 months
Remaining Amortization Period (months)					33 months
ZEVALIN distribution rights [Member] | Ex-U.S. [Member]
Product Rights [Line Items]
Historical Cost					$ 23,490		23,490
Accumulated Amortization					(13,634)		(12,632)
Foreign Currency Translation					(4,006)		(4,353)
Impairment					0		0
Net Amount					$ 5,850		6,505
Full Amortization Period (months)					96 months
Remaining Amortization Period (months)					45 months
FUSILEV distribution rights [Member]
Product Rights [Line Items]
Historical Cost					$ 16,778		16,778
Accumulated Amortization					(9,618)		(9,618)
Foreign Currency Translation					0		0
Impairment					(7,160)		(7,160)
Net Amount					$ 0		0
Full Amortization Period (months)					56 months
Remaining Amortization Period (months)					0 months
FOLOTYN out-License [Member]
Product Rights [Line Items]
Historical Cost					$ 27,900		27,900
Accumulated Amortization					(10,470)		(9,109)
Foreign Currency Translation					0		0
Impairment					(1,023)		(1,023)
Net Amount					$ 16,407		$ 17,768
Full Amortization Period (months)					110 months
Remaining Amortization Period (months)					73 months
FUSILEV [Member]
Product Rights [Line Items]
Impairment				$ (7,200)		$ (7,200)
EVOMELA [Member]
Product Rights [Line Items]
Historical Cost			$ 7,700

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Balance Sheet Account Detail - Estimated Intangible Asset Amortization Expense (Detail) $ in Thousands	Jun. 30, 2016 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Remainder of 2016	$ 13,810
2017	27,620
2018	27,620
2019	25,014
2020	19,736
2021	18,266
2022 and thereafter	28,646
Intangible Assets, Net Total	$ 160,712

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Balance Sheet Account Detail - Schedule of Goodwill (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Goodwill [Line Items]
Foreign currency exchange translation effects	$ (400)	$ (437)
Goodwill	17,997	17,960
ZEVALIN Ex-U.S. Distribution Rights [Member]
Goodwill [Line Items]
Acquisition	2,525	2,525
Allos Therapeutics, Inc. [Member]
Goodwill [Line Items]
Acquisition	5,346	5,346
Talon [Member]
Goodwill [Line Items]
Acquisition	$ 10,526	$ 10,526

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Balance Sheet Account Detail - Summary of Other Assets (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Supplies and deposits	$ 171	$ 185
Equity securities - CASI (see Note 10)	8,300	6,689
2018 Convertible Notes issuance costs (excluding current portion)	0	0
Executive officer life insurance – cash surrender value	11,478	9,181
Inventories - non-current portion	5,606	3,156
Other miscellaneous assets	45	0
Other assets	25,600	19,211
Gross unrealized losses	2,500
Accounting Standards Update 2015-03 [Member] | Long-term Debt [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs	$ 1,800	$ 2,200

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Balance Sheet Account Detail - Schedule of Accounts Payable and Other Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Trade accounts payable and other accrued liabilities	$ 29,912	$ 26,684
Accrued rebates	7,757	18,166
Accrued product royalty	4,372	4,908
Allowance for returns	1,734	1,394
Accrued data and distribution fees	1,983	1,830
Accrued GPO administrative fees	537	1,058
Accrued inventory management fee	412	498
Allowance for chargebacks	1,501	2,001
Accounts payable and other accrued liabilities	$ 48,208	$ 56,539

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Balance Sheet Account Detail - Schedule of Amounts Presented in Accounts Payable and Other Accrued Liabilities (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Rebates and Chargebacks [Member]
Accounts Payable and Other Liabilities [Roll Forward]
Beginning balance	$ 20,167	$ 45,822
Add: provisions	41,222	75,498
(Less): credits or actual allowances	(52,131)	(101,153)
Ending balance	9,258	20,167
Data and Distribution, GPO Fees, and Inventory Management Fees [Member]
Accounts Payable and Other Liabilities [Roll Forward]
Beginning balance	3,386	8,284
Add: provisions	6,001	15,928
(Less): credits or actual allowances	(6,455)	(20,826)
Ending balance	2,932	3,386
Returns [Member]
Accounts Payable and Other Liabilities [Roll Forward]
Beginning balance	1,394	1,135
Add: provisions	1,018	1,486
(Less): credits or actual allowances	(678)	(1,227)
Ending balance	$ 1,734	$ 1,394

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Balance Sheet Account Detail - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Jun. 30, 2016	Sep. 30, 2015
Deferred Revenue Arrangement [Line Items]
Deferred revenue		$ 6,513	$ 4,211
Mundipharma [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue		0	2,175
EVOMELA [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue		0	1,622
FUSILEV [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue		6,083	0	$ 9,900
Revenue recognized	$ 6,100	3,800
Dr. Reddy
Deferred Revenue Arrangement [Line Items]
Deferred revenue		$ 430	$ 414

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Balance Sheet Account Detail - Summary of Other Long-Term Liabilities (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued executive deferred compensation	$ 7,672	$ 6,458
Deferred rent (non-current portion)	219	248
Clinical study holdback costs, non-current	32	0
Other tax liabilities	738	738
Other long-term liabilities	$ 8,661	$ 7,444

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Gross-to-Net Product Sales - Reconciliation of Gross-to-Net Product Sales (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue, Net [Abstract]
Gross product sales	$ 56,439	$ 52,800	$ 114,450	$ 115,398
Commercial rebates and government chargebacks	(21,270)	(13,705)	(41,222)	(31,850)
Data and distribution fees, GPO fees, and inventory management fees	(3,774)	(3,635)	(6,001)	(9,205)
Prompt pay discounts	(80)	(1)	(80)	(1)
Product returns allowance	(428)	(315)	(1,018)	(785)
Net product sales	$ 30,887	$ 35,144	$ 66,129	$ 73,557

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Net Product Sales by Geographic Region and Product Line, and Composition of License Fees and Service Revenue - Schedule of Product Sales, Net by Geography (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Product sales, net	$ 30,887	$ 35,144	$ 66,129	$ 73,557
Percentage of product sales, net	100.00%	100.00%	100.00%	100.00%
United States [Member]
Segment Reporting Information [Line Items]
Product sales, net	$ 30,037	$ 33,676	$ 63,816	$ 70,284
Percentage of product sales, net	97.20%	95.80%	96.50%	95.60%
Total International [Member]
Segment Reporting Information [Line Items]
Product sales, net	$ 850	$ 1,468	$ 2,313	$ 3,273
Percentage of product sales, net	2.80%	4.20%	3.50%	4.50%
Total International [Member] | Europe (ZEVALIN only) [Member]
Segment Reporting Information [Line Items]
Product sales, net	$ 850	$ 514	$ 2,313	$ 1,097
Percentage of product sales, net	2.80%	1.50%	3.50%	1.50%
Total International [Member] | Asia Pacific (ZEVALIN only)[Member]
Segment Reporting Information [Line Items]
Product sales, net	$ 0	$ 954	$ 0	$ 2,176
Percentage of product sales, net	0.00%	2.70%	0.00%	3.00%

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Net Product Sales by Geographic Region and Product Line, and Composition of License Fees and Service Revenue - Schedule of Product Sales, Net by Product Line (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Product sales, net	$ 30,887	$ 35,144	$ 66,129	$ 73,557
Percentage of product sales, net	100.00%	100.00%	100.00%	100.00%
FUSILEV [Member]
Segment Reporting Information [Line Items]
Product sales, net	$ 10,467	$ 14,329	$ 25,676	$ 34,496
FOLOTYN [Member]
Segment Reporting Information [Line Items]
Product sales, net	10,970	12,222	24,262	21,538
ZEVALIN [Member]
Segment Reporting Information [Line Items]
Product sales, net	2,811	4,802	5,595	9,023
MARQIBO [Member]
Segment Reporting Information [Line Items]
Product sales, net	2,067	2,080	2,996	3,974
BELEODAQ [Member]
Segment Reporting Information [Line Items]
Product sales, net	3,664	1,711	6,692	4,526
EVOMELA [Member]
Segment Reporting Information [Line Items]
Product sales, net	$ 908	$ 0	$ 908	$ 0
Sales [Member]
Segment Reporting Information [Line Items]
Percentage of product sales, net	100.00%	100.00%	100.00%	100.00%
Sales [Member] | FUSILEV [Member]
Segment Reporting Information [Line Items]
Percentage of product sales, net	33.90%	40.80%	38.80%	46.90%
Sales [Member] | FOLOTYN [Member]
Segment Reporting Information [Line Items]
Percentage of product sales, net	35.50%	34.80%	36.70%	29.30%
Sales [Member] | ZEVALIN [Member]
Segment Reporting Information [Line Items]
Percentage of product sales, net	9.10%	13.70%	8.50%	12.30%
Sales [Member] | MARQIBO [Member]
Segment Reporting Information [Line Items]
Percentage of product sales, net	6.70%	5.90%	4.50%	5.40%
Sales [Member] | BELEODAQ [Member]
Segment Reporting Information [Line Items]
Percentage of product sales, net	11.90%	4.90%	10.10%	6.20%
Sales [Member] | EVOMELA [Member]
Segment Reporting Information [Line Items]
Percentage of product sales, net	2.90%	0.00%	1.40%	0.00%

XML

Net Product Sales by Geographic Region and Product Line, and Composition of License Fees and Service Revenue - By Product Line (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Concentration Risk [Line Items]
License fees and service revenue	$ 3,062	$ 9,838	$ 11,686	$ 10,042
License fees and service revenues	100.00%	100.00%	100.00%	100.00%
Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
License fees and service revenues	100.00%	100.00%	100.00%	100.00%
Out-license to Servier in Canada territory [Member]
Concentration Risk [Line Items]
License fees and service revenue	$ 0	$ 0	$ 6,000	$ 0
Out-license to Servier in Canada territory [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
License fees and service revenues	0.00%	0.00%	51.30%	0.00%
Co-Promotion With Eagle [Member]
Concentration Risk [Line Items]
License fees and service revenue	$ 2,398	$ 0	$ 4,332	$ 0
Co-Promotion With Eagle [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
License fees and service revenues	78.30%	0.00%	37.10%	0.00%
Out-license to Mundipharma in China and other ex-U.S. territories[Member]
Concentration Risk [Line Items]
License fees and service revenue	$ 629	$ 144	$ 1,313	$ 336
Out-license to Mundipharma in China and other ex-U.S. territories[Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
License fees and service revenues	20.50%	1.50%	11.20%	3.30%
CASI Out-License [Member]
Concentration Risk [Line Items]
License fees and service revenue	$ 0	$ 9,682	$ 0	$ 9,682
CASI Out-License [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
License fees and service revenues	0.00%	98.40%	0.00%	96.40%
Other license fees and service revenue [Member]
Concentration Risk [Line Items]
License fees and service revenue	$ 35	$ 12	$ 41	$ 24
Other license fees and service revenue [Member] | Sales Revenue, Services, Net [Member]
Concentration Risk [Line Items]
License fees and service revenues	1.10%	0.10%	0.40%	0.20%

XML

Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	$ 3,427	$ 3,528	$ 6,604	$ 5,990
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	27	22	54	22
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	610	419	991	852
Selling, general and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation	$ 2,790	$ 3,087	$ 5,559	$ 5,116

XML

Net Loss Per Share - Computation of Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earnings Per Share [Abstract]
Net loss	$ (24,295)	$ (2,346)	$ (33,616)	$ (27,908)
Weighted average shares - basic and diluted (shares)	68,575,021	65,466,004	67,146,188	65,167,162
Net loss per share - basic and diluted ($ per share)	$ (0.35)	$ (0.04)	$ (0.50)	$ (0.43)

XML

Net Loss Per Share - Schedule of Securities Excluded from Calculation of Net Loss Per Share (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	16,160,267	14,399,679	15,384,984	14,488,695
Preferred stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	0	40,000	0	40,000
Common stock warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	32,868	30,236	2,475	37,470
2018 Convertible Notes [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	11,401,284	11,401,284	11,401,284	11,401,284
Common stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	2,253,595	1,383,667	1,508,705	1,465,449
Restricted stock awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive excluded from computation of earnings per share amount (shares)	2,472,520	1,544,492	2,472,520	1,544,492

XML

Fair Value Measurements - Summary of Asset and Liability Fair Values (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets:
Marketable securities, fair value	$ 45
Total Assets	100,247	$ 94,731
Liabilities:
Deferred executive compensation liability	7,672	6,458
Drug development liability (Note 15)	14,383
Drug development liability		14,686
Ligand Contingent Consideration		5,227
Talon CVR (Note 9(a))	1,931	1,377
Corixa Liability	62	62
Total Liabilities	24,048	27,810
Bank CDs [Member]
Assets:
Marketable securities, fair value	247	245
Money market currency funds [Member]
Assets:
Marketable securities, fair value	80,177	80,116
Equity securities [Member]
Assets:
Marketable securities, fair value	8,300	5,189
Deferred compensation investments, including life insurance cash surrender value [Member]
Assets:
Marketable securities, fair value	11,478	9,181
Level 1 [Member]
Assets:
Total Assets	8,300	5,189
Level 1 [Member] | Equity securities [Member]
Assets:
Marketable securities, fair value	8,300	5,189
Level 2 [Member]
Assets:
Marketable securities, fair value	45
Total Assets	91,947	89,542
Liabilities:
Deferred executive compensation liability	7,672	6,458
Total Liabilities	7,672	6,458
Level 2 [Member] | Bank CDs [Member]
Assets:
Marketable securities, fair value	247	245
Level 2 [Member] | Money market currency funds [Member]
Assets:
Marketable securities, fair value	80,177	80,116
Level 2 [Member] | Deferred compensation investments, including life insurance cash surrender value [Member]
Assets:
Marketable securities, fair value	11,478	9,181
Level 3 [Member]
Assets:
Total Assets	0	0
Liabilities:
Drug development liability (Note 15)	14,383
Drug development liability		14,686
Ligand Contingent Consideration		5,227
Talon CVR (Note 9(a))	1,931	1,377
Corixa Liability	62	62
Total Liabilities	$ 16,376	$ 21,352

XML

Fair Value Measurements - Fair Value Measurement Activity for Liabilities Utilize Level 3 Inputs (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
December 31, 2015	$ 21,352	$ 23,127
Settlement of Ligand Contingent Consideration liability (see Note 9(b))	(6,000)
June 30, 2016	16,376	21,352
Deferred development costs [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Increase/decrease	(303)	(1,099)
Ligand Contingent Consideration [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Increase/decrease	773	326
Talon CVR [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Increase/decrease	$ 554	$ (1,002)

XML

Business Combinations and Contingent Consideration - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions				1 Months Ended		3 Months Ended	6 Months Ended
	Mar. 10, 2016	Jul. 17, 2013	Sep. 05, 2012	Mar. 31, 2016	Mar. 31, 2013	Mar. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Business Acquisition [Line Items]
License fees received					$ 3,000,000
Ligand Contingent Consideration									$ 5,227,000
Historical Cost							$ 305,668,000		305,668,000
Acquisition related contingent obligations							(1,300,000)	$ 0
In-process research and development [Member]
Business Acquisition [Line Items]
Estimated cash flow period					10 years
Estimated cash flow discount rate					25.00%
Ligand Pharmaceuticals Inc [Member]
Business Acquisition [Line Items]
Milestone payments	$ 6,000,000			$ 6,000,000
Melphalan In Process Research and Development [Member]
Business Acquisition [Line Items]
Historical Cost							$ 7,700,000		$ 7,700,000
Minimum [Member]
Business Acquisition [Line Items]
Royalties payout percentage on our future net sales of licensed products							20.00%
Milestone Payments [Member]
Business Acquisition [Line Items]
Milestone payments		$ 5,000,000.0					$ 60,000,000
Milestone net sales achievement		30,000,000.0
Ligand Contingent Consideration				$ 6,000,000		$ 6,000,000
Milestone Payment One [Member]
Business Acquisition [Line Items]
Milestone payments		10,000,000.0
Milestone net sales achievement		60,000,000.0
Milestone Payment Two [Member]
Business Acquisition [Line Items]
Milestone payments		25,000,000.0
Milestone net sales achievement		100,000,000.0
Milestone Payment Three [Member]
Business Acquisition [Line Items]
Milestone payments		50,000,000.0
Milestone net sales achievement		200,000,000.0
Milestone Payment Four [Member]
Business Acquisition [Line Items]
Milestone payments		100,000,000.0
Milestone net sales achievement		400,000,000.0
Menadione Topical Lotion [Member]
Business Acquisition [Line Items]
Milestone payments		5,000,000.0
Talon Therapeutics, Inc. [Member]
Business Acquisition [Line Items]
Additional shares business acquisition date							Jul. 17, 2013
Cash consideration		$ 11,300,000
Shares issued in acquisition (shares)		3.0
Common stock value assigned		$ 26,300,000
Common stock value, per share ($ per share)		$ 8.77
Estimated fair value of acquisition		$ 6,500,000
Contingent value rights future cash payments		$ 195,000,000.0					$ 195,000,000
Talon Therapeutics, Inc. [Member] | Minimum [Member]
Business Acquisition [Line Items]
Contingent value rights expected rate		50.00%
Talon Therapeutics, Inc. [Member] | Maximum [Member]
Business Acquisition [Line Items]
Contingent value rights expected rate		100.00%
Ligand Pharmaceuticals Inc [Member]
Business Acquisition [Line Items]
Ligand Contingent Consideration							$ 6,000,000
Acquisition related contingent obligations						$ 800,000
Allos Therapeutics, Inc. [Member]
Business Acquisition [Line Items]
Cash consideration			$ 205,200,000

XML

Business Combinations and Contingent Consideration - Change in Fair Value of Contingent Consideration Related to Acquisitions (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($)
Change in Fair Value of Contingent Consideration [Roll Forward]
December 31, 2015	$ 21,352
June 30, 2016	16,376
Contingent Consideration [Member]
Change in Fair Value of Contingent Consideration [Roll Forward]
Payment to Ligand in April 2016	(6,000)
Contingent Consideration [Member] | Talon Therapeutics, Inc. [Member]
Change in Fair Value of Contingent Consideration [Roll Forward]
December 31, 2015	1,377
Fair value adjustment for the six months ended June 30, 2016	554
June 30, 2016	1,931
Contingent Consideration [Member] | Ligand Pharmaceuticals Inc [Member]
Change in Fair Value of Contingent Consideration [Roll Forward]
December 31, 2015	5,227
Fair value adjustment for the six months ended June 30, 2016	773
June 30, 2016	$ 0

XML

Business Combinations and Contingent Consideration - Acquisition-Date Fair Value of Consideration Transferred (Detail) - Captisol-enabled, propylene glycol-free melphalan rights [Member] $ in Thousands	1 Months Ended
	Mar. 31, 2013 USD ($)
Business Acquisition [Line Items]
Cash consideration	$ 3,000
Ligand Contingent Consideration	4,700
Total purchase consideration	$ 7,700

XML

Business Combinations and Contingent Consideration - Summary of Allocation of Total Purchase Price to Net Assets Acquired (Detail) - Captisol-enabled, propylene glycol-free melphalan rights [Member] - USD ($) $ in Thousands	Jun. 30, 2016	Mar. 31, 2013
Business Acquisition, Contingent Consideration [Line Items]
Total purchase consideration		$ 7,700
In-process research and development [Member]
Business Acquisition, Contingent Consideration [Line Items]
Total purchase consideration	$ 7,700

XML

Out-License of Marqibo, Zevalin, and Evolema in China Territory to CASI - Additional Information (Detail) shares in Millions		1 Months Ended	6 Months Ended	21 Months Ended
	Sep. 17, 2014 product agreement shares	Feb. 29, 2016 shares	Jun. 30, 2016	Jun. 30, 2016 shares
Other Commitments [Line Items]
Shares received (shares)	5.4
CASI Out-License [Member]
Other Commitments [Line Items]
Number of agreements | agreement	3
Number of products | product	2
License agreement description			Additionally, under certain conditions which generally expire on September 17, 2019, we have a right to receive additional CASI common stock in order to maintain our post-investment ownership percentage if CASI issues additional securities.
Shares received (shares)	5.4	1.7		7.1

XML

Out-License of Marqibo, Zevalin, and Evolema in China Territory to CASI - Schedule of Proceeds Received and Fair Value on CASI Out-License Execution Date (Detail) - CASI Out-License [Member] $ in Thousands	Sep. 17, 2014 USD ($)
Other Commitments [Line Items]
Total consideration received	$ 9,959
Secured Promissory Note Due March 17, 2016 [Member]
Other Commitments [Line Items]
Total consideration received	1,310
Common Stock [Member]
Other Commitments [Line Items]
Total consideration received	$ 8,649

XML

Out-License of Marqibo, Zevalin, and Evolema in China Territory to CASI - Schedule of Proceeds Received and Fair Value on CASI Out-License Execution Date (Parenthetical) (Detail) - USD ($) $ / shares in Units, shares in Millions		1 Months Ended	6 Months Ended	21 Months Ended
	Sep. 17, 2014	Feb. 29, 2016	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Other Commitments [Line Items]
Shares received (shares)	5.4
Debt instrument face value	$ 1,500,000.00
Fair value			$ 8,300,000	$ 8,300,000	$ 6,689,000
Secured Promissory Note Due March 17, 2016 [Member]
Other Commitments [Line Items]
Debt instrument face value	$ 1,500,000.00
CASI Out-License [Member]
Other Commitments [Line Items]
Shares received (shares)	5.4	1.7		7.1
Stock price on the NASDAQ Capital Market	$ 1.60
CASI Out-License [Member] | Secured Promissory Note Due March 17, 2016 [Member]
Other Commitments [Line Items]
Debt instrument maturity date			Mar. 17, 2016
Debt instrument coupon rate	0.50%
Common Stock [Member] | CASI Out-License [Member]
Other Commitments [Line Items]
Fair value			$ 8,300,000	$ 8,300,000

XML

Out-License Of Zevalin In Certain Ex-U.S. Territories To Mundipharma (Details) - USD ($) $ in Thousands		3 Months Ended	6 Months Ended
	Nov. 16, 2015	Dec. 31, 2015	Jun. 30, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Deferred revenue		$ 6,513	$ 4,211
Zevalin Rights [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Potential payment	$ 2,000
Zevalin Rights [Member] | Total Consideration [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total consideration received	18,000
Milestone net sales achievement		$ 15,000
Zevalin Rights [Member] | Payment One [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total consideration received	15,000
Zevalin Rights [Member] | Payment Two [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total consideration received	3,000
Milestone net sales achievement			800
Deferred revenue			$ 2,200
Mundipharma [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Payments for sale of business	$ (2,200)

XML

Out-License Of Zevalin, Folotyn, Beleodaq, And Marqibo In Canada Territory To Servier (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
ZEVALIN, FOLOTYN, BELEODAQ, And MARQIBO [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total consideration received	$ 6

XML

Co-Promotion Arrangement With Eagle Pharmaceuticals (Details) $ in Thousands		3 Months Ended		6 Months Ended			12 Months Ended
	Nov. 04, 2015 USD ($) product	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Dec. 31, 2016 USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
License fees and service revenue		$ 3,062	$ 9,838		$ 11,686	$ 10,042
Collaborative Arrangement, Co-promotion [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of products | product	6
Term of contract	18 months
Fixed payment	$ 12,800
Milestone net sales achievement					4,300
License fees and service revenue		2,400
Reimbursable expense		$ 2,200			$ 3,500
Extension term	6 months
Termination notice	60 days
Maximum [Member] | Scenario, Forecast [Member] | Collaborative Arrangement, Co-promotion [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Milestone net sales achievement				$ 4,000			$ 5,000

XML

Convertible Senior Notes - Additional Information (Detail) - USD ($)		6 Months Ended
	Dec. 17, 2013	Jun. 30, 2016	Dec. 31, 2015
Debt Disclosure [Line Items]
Additional paid-in capital		$ 606,220,000	$ 552,108,000
Common shares sold (shares)		$ 75,000	68,000
2.75% Convertible Senior Notes Due 2018 [Member]
Debt Disclosure [Line Items]
Interest rate	2.75%	2.75%
Sale of convertible notes, principal amount	$ 120,000,000
Conversion rate, shares (shares)		95
Conversion rate, price per share ($ per share)		$ 1,000
Money conversion price per share ($ per share)		$ 10.53
Convertible senior notes maturity date		Dec. 15, 2018
Net proceeds from convertible notes	115,400,000
Professional fee	$ 4,600,000
Additional paid-in capital		$ 13,100,000
Common shares converted value (shares)		$ 11,400,000
Strike price per share ($ per share)		$ 14.03
Common shares sold (shares)		$ 11,400,000
Threshold percentage of conversion price		130.00%
Convertible senior notes trading price		$ 1,000
Percentage of product of last reported sale price of common stock		98.00%
Convertible senior notes conversion description		Prior to June 15, 2018, holders may convert all or a portion of their 2018 Convertible Notes only under any of the following circumstances: (1) during any fiscal quarter (and only during such fiscal quarter), if, for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding fiscal quarter, the last reported sale price of our common stock on such trading day is greater than or equal to 130% of the Notes' conversion price on such trading day; (2) during the five consecutive business day period immediately following any five consecutive trading day period in which, for each trading day of that measurement period, the trading price per $1,000 principal amount of 2018 Convertible Notes for such trading day was less than 98% of the product of (i) the last reported sale price of our common stock on such trading day and (ii) the Notes' conversion rate on such trading day; (3) upon the occurrence of certain corporate transactions; and (4) at any time prior to our stockholders’ approval to settle the 2018 Convertible Notes in our common shares and/or cash.
2.75% Convertible Senior Notes Due 2018 [Member] | Minimum [Member]
Debt Disclosure [Line Items]
Debt convertible trading days		20 days
Debt convertible consecutive trading days		5 days
2.75% Convertible Senior Notes Due 2018 [Member] | Maximum [Member]
Debt Disclosure [Line Items]
Debt convertible consecutive trading days		30 days
2018 Convertible Notes [Member]
Debt Disclosure [Line Items]
Fair value		$ 112,800,000	$ 105,100,000

XML

Convertible Senior Notes - Carrying Value of 2018 Convertible Notes (Detail) - 2018 Convertible Notes [Member] $ in Thousands	Jun. 30, 2016 USD ($)
Debt Instrument [Line Items]
Principal amount	$ 120,000
(Less): Unamortized debt discount (amortized through December 2018)	(15,652)
(Less): Debt issuance costs (see Note 3(d))	(1,826)
June 30, 2016 carrying value	$ 102,522

XML

Convertible Senior Notes - Components of the Interest Expense Recognized (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Debt Disclosure [Abstract]
Contractual coupon interest expense	$ 1,650
Amortization of debt issuance costs	345	$ 327
Accretion of debt discount	2,800	$ 2,569
Total	$ 4,795
Effective interest rate	8.66%

XML

Mundipharma Agreement And Drug Development Liability - Additional Information (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
	May 29, 2013	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Company determined development payment		$ 56,030	$ 45,016	$ 106,179	$ 105,294
Mundipharma [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Company determined development payment	$ 7,000
Maximum [Member] | Regulatory [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Potential milestone payments				16,000
Maximum [Member] | Commercial progress and sales-dependent [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Potential milestone payments				$ 107,000

XML

Mundipharma Agreement And Drug Development Liability - Schedule of Drug Development Liability Adjustments (Detail) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($)
Accrued Drug Development Expenses [Roll Forward]
Balance at December 31, 2015	$ 259
Balance at June 30, 2016	156
FOLOTYN [Member]
Accrued Drug Development Expenses [Roll Forward]
Balance at December 31, 2015	14,686
Transfer from long-term to current in 2016	0
(Less): Expenses incurred in 2016	(303)
Balance at June 30, 2016	14,383
FOLOTYN [Member] | Drug Development Liability Current [Member]
Accrued Drug Development Expenses [Roll Forward]
Balance at December 31, 2015	259
Transfer from long-term to current in 2016	200
(Less): Expenses incurred in 2016	(303)
Balance at June 30, 2016	156
FOLOTYN [Member] | Drug Development Liability Long Term [Member]
Accrued Drug Development Expenses [Roll Forward]
Balance at December 31, 2015	14,427
Transfer from long-term to current in 2016	(200)
(Less): Expenses incurred in 2016	0
Balance at June 30, 2016	$ 14,227

XML

Commitments and Contingencies - Additional Information (Detail) € in Millions								1 Months Ended					3 Months Ended				6 Months Ended		12 Months Ended
	Apr. 26, 2016 USD ($) shares	Apr. 13, 2016 USD ($)	Mar. 10, 2016 USD ($)	Nov. 16, 2015 USD ($)	Oct. 27, 2015 USD ($)	Jun. 27, 2014 USD ($)	Jun. 19, 2014 defendant ANDA	Mar. 31, 2016 USD ($)	Feb. 28, 2014 USD ($)	Apr. 30, 2012 EUR (€)	Nov. 30, 2009 USD ($)	Oct. 31, 2008 USD ($) shares	Jun. 30, 2016 USD ($) shares	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Mar. 31, 2014 USD ($)	Jun. 30, 2016 USD ($) Country	Jun. 30, 2015 USD ($)	Dec. 31, 2010 USD ($)	Jul. 31, 2014 USD ($)	Jul. 17, 2013 USD ($)	May 31, 2006 USD ($)
Long-term Purchase Commitment [Line Items]
Potential milestone achievement													$ 100,000		$ 100,000		$ 100,000
Deferred revenue													4,211,000		6,513,000		4,211,000
Amount receivable on approval of oral form of FUSILEV																						$ 200,000
Additional license fees																	60,000,000
Acquisition-related contingent obligations, less current portion													$ 1,993,000		1,439,000		1,993,000
Common stock issued (shares) | shares													6,452,170
Consideration paid for the rights granted (shares)									$ 1,000,000
Cash paid for income taxes																	11,000	$ 332,000
Deferrals and contributions													$ 7,700,000		6,500,000		$ 7,700,000
Settlement amount					$ 7,000,000
FOLOTYN ANDA [Member]
Long-term Purchase Commitment [Line Items]
Number of defendants | defendant							5
Number of Abbreviated New Drug Applications | ANDA							4
FOLOTYN [Member]
Long-term Purchase Commitment [Line Items]
Percentage of royalty on annual worldwide sales under condition one													8.00%				8.00%
Percentage of royalty on annual worldwide sales under condition two													9.00%				9.00%
Percentage of royalty on annual worldwide sales under condition three													11.00%				11.00%
Zevalin Rights [Member]
Long-term Purchase Commitment [Line Items]
Potential payment				$ 2,000,000
ZEVALIN, FOLOTYN, BELEODAQ, And MARQIBO [Member]
Long-term Purchase Commitment [Line Items]
Total consideration received														$ 6,000,000
Total Consideration [Member] | Zevalin Rights [Member]
Long-term Purchase Commitment [Line Items]
Total consideration received				18,000,000
Milestone net sales achievement															15,000,000
Payment One [Member] | Zevalin Rights [Member]
Long-term Purchase Commitment [Line Items]
Total consideration received				15,000,000
Payment Two [Member] | Zevalin Rights [Member]
Long-term Purchase Commitment [Line Items]
Total consideration received				$ 3,000,000
Milestone net sales achievement																	$ 800,000
Deferred revenue													$ 2,200,000				2,200,000
Ligand Pharmaceuticals Inc [Member]
Long-term Purchase Commitment [Line Items]
Milestone payments			$ 6,000,000					$ 6,000,000
ZEVALIN [Member]
Long-term Purchase Commitment [Line Items]
Milestone payments																	$ 5,000,000
ZEVALIN [Member] | Licensing Agreements [Member]
Long-term Purchase Commitment [Line Items]
Minimum number of countries outside U.S. approved ZEVALIN for treatment | Country																	40
Fees paid to Bayer for acquiring licensing rights | €										€ 19
Percentage of royalty										20.00%
License agreement contractual terms										15 years
Talon Therapeutics, Inc. [Member]
Long-term Purchase Commitment [Line Items]
Acquisition-related contingent obligations, less current portion													1,900,000		$ 1,400,000		$ 1,900,000
Contingent value rights future cash payments													195,000,000				195,000,000				$ 195,000,000.0
SPI-2012 [Member]
Long-term Purchase Commitment [Line Items]
Milestone payments	$ 2,700,000	$ 1,900,000
Potential milestone achievement													$ 238,000,000				238,000,000
Issuance (shares) | shares	318,750
Cash paid for income taxes	$ 400,000
Poziotinib [Member] | Licensing Agreements [Member]
Long-term Purchase Commitment [Line Items]
Milestone net sales achievement																	$ 358,000,000
Minimum [Member]
Long-term Purchase Commitment [Line Items]
Percentage of royalty on annual worldwide sales under condition one													20.00%				20.00%
Percentage of royalties on net sale of licensed products																	20.00%
Minimum [Member] | FOLOTYN [Member]
Long-term Purchase Commitment [Line Items]
Amount of annual worldwide sales on which royalty is payable under condition two																	$ 150,000,000
Amount of annual worldwide sales on which royalty is payable under condition three																	300,000,000
Maximum [Member] | FOLOTYN [Member]
Long-term Purchase Commitment [Line Items]
Amount of annual worldwide sales on which royalty is payable under condition one																	150,000,000
Amount of annual worldwide sales on which royalty is payable under condition two																	$ 300,000,000
INDIA | ZEVALIN [Member] | Licensing Agreements [Member]
Long-term Purchase Commitment [Line Items]
Percentage of royalty																	20.00%
License agreement contractual terms						15 years
Up-front non-refundable payment						$ 500,000
Recognition period for upfront payment																	10 years
Licenses revenue																	$ 3,000,000
Allergan [Member]
Long-term Purchase Commitment [Line Items]
Up-front non-refundable payment												$ 41,500,000
License fee												300,000
Allergan [Member] | Common Class A
Long-term Purchase Commitment [Line Items]
Stock issued												$ 100,000
Common stock issued (shares) | shares												25,000
Nippon Kayaku [Member]
Long-term Purchase Commitment [Line Items]
Upfront fee											$ 15,000,000
Payment related to agreement																	10,000,000
Payment on achievement of commercialization milestones																	126,000,000
TopoTarget [Member]
Long-term Purchase Commitment [Line Items]
Potential milestone achievement													$ 278,000,000				$ 278,000,000
Upfront fee																			$ 30,000,000
Percentage of development cost																	70.00%
Percentage of development cost that is funded by TopoTarget for joint development plan																	30.00%
Additional payments based on the achievement of certain development									$ 10,000,000
Aggregate payout value																$ 17,800,000
Second milestone payment																				$ 25,000,000
Principal executive office [Member] | Nevada [Member]
Long-term Purchase Commitment [Line Items]
Facility lease, non-cancelable operating lease expiring date																	Apr. 30, 2019
Research and development facility [Member] | California [Member]
Long-term Purchase Commitment [Line Items]
Facility lease, non-cancelable operating lease expiring date																	May 31, 2019

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Provision for income taxes	$ (106)	$ (23)	$ (171)	$ 115
U.S. federal statutory tax rate			35.00%

XML

Stockholders' Equity (Details) - USD ($)		1 Months Ended		3 Months Ended	6 Months Ended
	Dec. 23, 2015	Aug. 08, 2016	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Class of Stock [Line Items]
Maximum proceeds	$ 100,000,000
No. of Common Shares Issued (in shares)				6,452,170
Proceeds Received (Net of Broker Commissions and Fees )				$ 45,067,000	$ 45,067,000	$ 0
Series E Preferred Stock [Member]
Class of Stock [Line Items]
Outstanding (shares)			20
Issued in conversion (shares)			40,000	40,000	40,000		40,000
Dividends in arrears			$ 6,000
Subsequent Event [Member]
Class of Stock [Line Items]
No. of Common Shares Issued (in shares)		4,438,745
Proceeds Received (Net of Broker Commissions and Fees )		$ 28,802,000