Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of computation of basic and diluted net income (loss) per share

The following table sets forth the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):

	Three months ended				Six months ended
	June 30,				June 30,
	2015		2014		2015		2014
Net income	$	23,564	$	1,592	$	24,318	$	3,688
Shares used to compute basic income per share	19,725,410		20,738,299		19,668,183		20,668,110
Dilutive potential common shares:
Restricted stock	42,836		29,029		52,187		44,815
Stock options	1,044,926		1,012,706		1,001,147		1,063,200
0.75% Convertible Senior Notes, Due 2019	463,232		—		231,617		—
Shares used to compute diluted income per share	21,276,404		21,780,034		20,953,134		21,776,125
Basic per share amounts:
Net income	$	1.19	$	0.08	$	1.24	$	0.18
Diluted per share amounts:
Net income	$	1.11	$	0.07	$	1.16	$	0.17

Summary of investment categories

The following table summarizes the various investment categories at June 30, 2015 and December 31, 2014 (in thousands):

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
June 30, 2015
Short-term investments
Bank deposits	$	38,174	$	3	$	(3	)	$	38,174
Corporate bonds	5,115		—		(5		)	5,110
Commercial paper	3,498		—		—			3,498
Asset backed securities	13,330		—		(3		)	13,327
Corporate equity securities	1,988		11,274		—			13,262
Restricted investments	600		—		—			600
	$	62,705	$	11,277	$	(11	)	$	73,971
December 31, 2014
Short-term investments
Corporate equity securities	2,179		4,954		—			7,133
Restricted investments	1,261		—		—			1,261
	$	3,440	$	4,954	$	—		$	8,394

Summary of property and equipment

Property and equipment is stated at cost and consists of the following (in thousands):

	June 30,			December 31,
	2015			2014
Lab and office equipment	$	2,182		$	2,232
Leasehold improvements	273			273
Computer equipment and software	632			624
	3,087			3,129
Less accumulated depreciation and amortization	(2,682		)	(2,643		)
Total property and equipment, net	$	405		$	486

Summary of goodwill and other identifiable intangible assets

Goodwill and other identifiable intangible assets consist of the following (in thousands):

	June 30,			December 31,
	2015			2014
Indefinite lived intangible assets
Acquired in-process research and development	$	12,556		$	12,556
Goodwill	12,238			12,238
Definite lived intangible assets
Complete technology	15,267			15,267
Less: Accumulated amortization	(3,380		)	(2,999		)
Trade name	2,642			2,642
Less: Accumulated amortization	(586		)	(519		)
Customer relationships	29,600			29,600
Less: Accumulated amortization	(6,564		)	(5,824		)
Total goodwill and other identifiable intangible assets, net	$	61,773		$	62,961

Summary of other current assets

Other current assets consist of the following (in thousands):

	June 30,		December 31,
	2015		2014
Prepaid expenses	$	1,206	$	835
Other receivables	595		685
Co-promote receivable	—		322
Total other current assets	$	1,801	$	1,842

Summary of accrued liabilities

Accrued liabilities consist of the following (in thousands):

	June 30,		December 31,
	2015		2014
Compensation	$	1,399	$	1,708
Professional fees	545		459
Amounts owed to former licensees	1,960		925
Royalties owed to third parties	634		705
Other	1,091		1,069
Total accrued liabilities	$	5,629	$	4,866

Summary of other long-term liabilities

Other long-term liabilities consist of the following (in thousands):

	June 30,		December 31,
	2015		2014
Deposits	$	396	$	411
Deferred rent	306		327
Other	32		32
Total other long-term liabilities	$	734	$	770

Schedule for accounting for share-based compensation

The following table summarizes stock-based compensation expense recorded as components of research and development expenses and general and administrative expenses for the periods indicated (in thousands):

	Three months ended				Six months ended
	June 30,				June 30,
	2015		2014		2015		2014
Stock-based compensation expense as a component of:
Research and development expenses	$	1,253	$	956	$	2,174	$	1,645
General and administrative expenses	2,507		2,071		4,501		3,448
	$	3,760	$	3,027	$	6,675	$	5,093

Summary of fair-value options awarded to employees and directors

The fair-value for options that were awarded to employees and directors was estimated at the date of grant using the Black-Scholes option valuation model with the following weighted-average assumptions:

	Three months ended		Six months ended
	June 30,		June 30,
	2015	2014	2015	2014
Risk-free interest rate	1.7%	1.9%	1.8%	1.9%
Dividend yield	—	—	—	—
Expected volatility	58%	67%	58%	69%
Expected term	6.6	6.4	6.6	6.4
Forfeiture rate	8.5%	8.6%	8.5%	8.6%-9.7%