RESEARCH AND DEVELOPMENT

6 Months Ended

Jun. 30, 2012

Research And Development Disclosure [Abstract]

Research Development And Computer Software Disclosure Text Block

7.RESEARCH AND DEVELOPMENT

All research and development costs, including payments related to products under development and research consulting agreements, are expensed as incurred. The Company may continue to make non-refundable payments to third parties for new technologies and for research and development work that has been completed. These payments may be expensed at the time of payment depending on the nature of the payment made and the related stage of the research and development project.

       The Company's policy on accounting for costs of strategic collaborations determines the timing of the recognition of certain development costs. In addition, this policy determines whether the cost is classified as development expense or capitalized as an asset. Management is required to form judgments with respect to the commercial status of such products in determining whether development costs meet the criteria for immediate expense or capitalization. For example, when the Company acquires certain products for which there is already an Abbreviated New Drug Application (“ANDA”) or a New Drug Application (“NDA”) approval related directly to the product, and there is net realizable value based on projected sales for these products, the Company capitalizes the amount paid as an intangible asset.

Research and development expense for the three and six months endedJune 30, 2012 and 2011 are as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2012		2011		2012		2011
Ongoing research and development costs	$	15,376	$	7,080	$	27,504	$	13,948
Payments related to strategic collaborations		8,000		7,500		47,006		14,500
Share-based compensation expense		(64)		615		633		1,020
Total research and development	$	23,312	$	15,195	$	75,143	$	29,468