STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION EXPENSE (Tables)

12 Months Ended

Dec. 31, 2012

Stockholders Equity And Share Based Compensation Expense [Abstract]

Share-based compensation expense

The following table sets forth the total share-based compensation expense resulting from stock options and RSAs included in the accompanying Consolidated Statements of Operations (in thousands):

	Year Ended December 31,
	2012		2011		2010
Costs of product sales	$	1,554	$	1,143	$	994
Research and development		1,337		1,850		2,136
Selling, general and administrative (1)		14,316		5,778		6,780
Total share-based compensation expense	$	17,207	$	8,771	$	9,910

(1) Includes $8.3 million of share-based compensation expense related to the acceleration of unvested stock options in connection with the Acquisition during the year ended December 31, 2012

Fair value of options estimated at the date of grant with weighted-average assumptions

The fair value of options was estimated at the date of grant using the BSM option pricing model with the following weighted‑average assumptions:

	Year Ended December 31,
	2012			2011			2010
Risk free interest rate		0.6	%		1.5	%		1.1	%
Expected dividend yield		0.0	%		0.0	%		0.0	%
Expected volatility		67	%		67	%		76	%
Expected option term (in years)		4.6			4.5			4.1

Stock options plan activity

Activity under the Company's stock plans for the year ended December 31, 2012 is as follows (in thousands, except per share amounts):

				Weighted-Average		Weighted-Average		Aggregate
				Exercise Price		Remaining		Intrinsic
	Shares			Per Share		Contractual Terms		Value
						(in years)
Outstanding at December 31, 2011		6,276		$	9.41
Grants		1,159			4.03
Exercises		(109	)		3.51
Forfeitures or expirations		(1,225	)		13.08
Outstanding at December 31, 2012		6,101		$	7.75		4.42	$	85,529
Exercisable at December 31, 2012		3,175		$	10.52		3.30	$	70,079
Vested and expected to vest at December 31, 2012		5,616		$	8.03		4.27	$	85,444

Summary of outstanding and exercisable options

The following table summarizes information concerning currently outstanding and exercisable options at December 31, 2012:

Range of Exercise Prices				Options Outstanding						Options Exercisable
						Weighted-Average		Weighted-Average				Weighted-Average
						Remaining		Exercise Price				Exercise Price
Lower		Upper		Number		Contractual Life		Per Share		Number		Per Share
				(in thousands)		(in years)				(in thousands)
$	2.63	$	3.22		393		3.57	$	2.95		253	$	2.89
$	3.32	$	4.16		954		6.44	$	3.92		54	$	3.85
$	4.21	$	4.22		848		4.64	$	4.22		409	$	4.22
$	4.26	$	4.85		797		5.66	$	4.73		202	$	4.75
$	4.88	$	5.74		803		4.73	$	5.37		362	$	5.41
$	5.78	$	8.29		1,027		4.47	$	7.33		616	$	7.45
$	8.71	$	19.92		822		2.37	$	12.52		822	$	12.52
$	20.90	$	57.08		457		1.32	$	28.29		457	$	28.29
Total					6,101		4.42	$	7.75		3,175	$	10.52

Reserved shares

At December 31, 2012, the Company has shares reserved for future issuance as follows (in thousands):

Options outstanding	6,101
Options available for future grants	5,262
Convertible notes	17,985
Total at December 31, 2012	29,348

Summary of RSAs activity

The following table summarizes the Company's RSAs activity for the year ended December 31, 2012 (in thousands, except per share amounts):

	Number			Weighted-Average
	of Shares			Grant Date Fair Value
Restricted stock awards
Outstanding at December 31, 2011		540		$	7.32
Granted		-			-
Vested		(310	)		8.22
Forfeited		(63	)		6.64
Outstanding at December 31, 2012		167		$	5.89
Restricted stock units
Outstanding at December 31, 2011		2,057		$	4.74
Granted		1,451			4.09
Vested		(515	)		5.20
Forfeited		(302	)		4.69
Outstanding at December 31, 2012		2,691		$	4.31

Assumptions Used to Value Employees Stock Purchase Rights

During the years ended December 31, 2012 and 2011, the fair value of shares under the ESPP was estimated using the following assumptions:

	2012			2011
Risk free interest rate		0.1	%		0.1	%
Expected dividend yield		0.0	%		0.0	%
Expected volatility		64	%		67	%
Expected term (in years)		0.7			0.7