Restructuring Costs

6 Months Ended

Jun. 30, 2011

Note 18 – Restructuring Costs:

In June 2011, we announced our plans to resize our branded products division Strativa Pharmaceuticals, as part of a strategic assessment. We reduced our Strativa workforce by approximately 90 people. The remaining Strativa sales force will focus their marketing efforts on Megace® ES and Nascobal® Nasal Spray. In connection with these actions, we incurred expenses for severance and other employee-related costs. The intangible assets related to products no longer a priority for our remaining Strativa sales force were fully impaired by these actions. We also had non-cash inventory write downs for product and samples associated with the products no longer a priority for our remaining Strativa sales force. Inventory write downs were classified as cost of goods sold on the condensed consolidated statements of operations for the three months and six months ended June 30, 2011. In July 2011, Strativa returned the U.S. commercialization rights of Zuplenz® to its development partner, MonoSol Rx, as part of the resizing of our branded products division.

The following table summarizes the restructuring costs incurred by us in the second quarter of 2011 and the remaining related restructuring liabilities balance (included in accrued expenses and other current liabilities on the condensed consolidated balance sheet) as of June 30, 2011 ($ amounts in thousands);


Restructuring Activities	Initial Charge		Cash Payments		Non-Cash Charge Related to Inventory and/or Intangible Assets			Reversals, Reclass or Transfers		Liabilities at June 30, 2011
Intangible asset impairments	$	24,226	$	-	$	(24,226	)	$	-	$	-
Severance and employee benefits to be paid in cash		1,556		-		-			-		(1,556	)
Sample inventory write-down and other		1,204		-		(1,204	)		-		-
Total restructuring costs line item	$	26,986	$	-	$	(25,430	)	$	-	$	(1,556	)
Commercial inventory write-down classified as cost of goods sold		674		-		(674	)		-		-
Total	$	27,660	$	-	$	(26,104	)	$	-	$	(1,556	)

The total charge is related to the Strativa segment. We expect that the liability amount at June 30, 2011 will result in cash expenditures during 2011. The charges related to this plan to reduce the size of the Strativa business are reflected on the condensed consolidated statements of operations for the quarter ended June 30, 2011.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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