Annual report pursuant to Section 13 and 15(d)

Fair Value Measurement (Details)

v3.6.0.2
Fair Value Measurement (Details) - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible Notes Receivable, Fair Value, Period Increase (Decrease) $ (200) $ (800)
Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value 126,187 100,572
Liabilities, fair value 3,388 14,241
Recurring | Current portion of contingent liabilities - CyDex    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [1] 101 7,812
Recurring | Current contingent liabilities-Metabasis    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [2]   2,602
Recurring | Long-term portion of contingent liabilities - Metabasis    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [2] 1,413 1,355
Recurring | Long-term portion of contingent liabilities - CyDex    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [1] 1,503 1,678
Recurring | Liability for restricted investments owed to former licensees    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [3] 371 794
Recurring | Cash Equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [4]   3,015
Recurring | Short-term investments    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [5] 122,296 92,775
Recurring | Notes Receivable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [6] $ 3,207 $ 4,782
Revenue volatility (percent) 75.00% 65.00%
Recurring | Investment in warrants    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [7] $ 684  
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value 3,054 $ 6,786
Liabilities, fair value 371 794
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Current portion of contingent liabilities - CyDex    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [1] 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Current contingent liabilities-Metabasis    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [2]   0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term portion of contingent liabilities - Metabasis    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [2] 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Long-term portion of contingent liabilities - CyDex    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [1] 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Liability for restricted investments owed to former licensees    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [3] 371 794
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash Equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [4]   0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Short-term investments    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [5] 3,054 6,786
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Notes Receivable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [6] 0 0
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Investment in warrants    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [7] 684  
Recurring | Significant Other Observable Inputs (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value 119,242 89,004
Liabilities, fair value 1,413 3,957
Recurring | Significant Other Observable Inputs (Level 2) | Current portion of contingent liabilities - CyDex    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [1] 0 0
Recurring | Significant Other Observable Inputs (Level 2) | Current contingent liabilities-Metabasis    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [2]   2,602
Recurring | Significant Other Observable Inputs (Level 2) | Long-term portion of contingent liabilities - Metabasis    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [2] 1,413 1,355
Recurring | Significant Other Observable Inputs (Level 2) | Long-term portion of contingent liabilities - CyDex    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [1] 0 0
Recurring | Significant Other Observable Inputs (Level 2) | Liability for restricted investments owed to former licensees    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [3] 0 0
Recurring | Significant Other Observable Inputs (Level 2) | Cash Equivalents    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [4]   3,015
Recurring | Significant Other Observable Inputs (Level 2) | Short-term investments    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [5] 119,242 85,989
Recurring | Significant Other Observable Inputs (Level 2) | Notes Receivable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [6] 0 0
Recurring | Significant Other Observable Inputs (Level 2) | Investment in warrants    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [7] 0  
Recurring | Significant Unobservable Inputs (Level 3)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value 3,207 4,782
Liabilities, fair value 1,604 9,490
Recurring | Significant Unobservable Inputs (Level 3) | Current portion of contingent liabilities - CyDex    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [1] 101 7,812
Recurring | Significant Unobservable Inputs (Level 3) | Current contingent liabilities-Metabasis    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [2]   0
Recurring | Significant Unobservable Inputs (Level 3) | Long-term portion of contingent liabilities - Metabasis    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [2] 0 0
Recurring | Significant Unobservable Inputs (Level 3) | Long-term portion of contingent liabilities - CyDex    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [1] 1,503 1,678
Recurring | Significant Unobservable Inputs (Level 3) | Liability for restricted investments owed to former licensees    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Liabilities, fair value [3] 0 0
Recurring | Significant Unobservable Inputs (Level 3) | Short-term investments    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [5] 0 0
Recurring | Significant Unobservable Inputs (Level 3) | Notes Receivable    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value 3,207 [6] $ 4,782
Recurring | Significant Unobservable Inputs (Level 3) | Investment in warrants    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, fair value [7] $ 0  
[1] The fair value of the liabilities for CyDex contingent liabilities were determined based on the income approach using a Monte Carlo analysis. The fair value is subjective and is affected by changes in inputs to the valuation model including management’s assumptions regarding revenue volatility, probability of commercialization of products, estimates of timing and probability of achievement of certain revenue thresholds and developmental and regulatory milestones which may be achieved and affect amounts owed to former license holders and CVR holders. Changes in these assumptions can materially affect the fair value estimate.
[2] The liability for CVRs for Metabasis are determined using quoted market prices in a market that is not active for the underlying CVR.
[3] The liability for amounts owed to former licensees are determined using quoted market prices in active markets for the underlying investment received from a partner, a portion of which is owed to former licensees.
[4] Highly liquid investments with maturities less than 90 days from the purchase date are recorded as cash equivalents that are classified as Level 2 of the fair value hierarchy, as these investment securities are valued based upon quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
[5] Investments in equity securities, are classified as level 1 as the fair value is determined using quoted market prices in active markets for the same securities. Short-term investments in marketable securities with maturities greater than 90 days are classified as level 2 of the fair value hierarchy, as these investment securities are valued based upon quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market.
[6] The fair value of the convertible note receivable from Viking at December 31, 2015 was determined using a probability weighted option pricing model. The fair value is subjective and is affected by certain significant input to the valuation model such as the estimated volatility of the common stock, which was estimated to be 75% at December 31, 2016 and 65% at December 31, 2015. Changes in these assumptions may materially affect the fair value estimate. For the year ended December 31, 2016 and December 31, 2015, the Company reported a decrease in the fair value of the Viking convertible notes of $0.2 million and$0.8 million respectively in "Other, net" of the consolidated statement of operations.
[7] Investment in warrants, which the Company received as a result of Viking’s partial repayment of the Viking note receivable and the Company’s purchase of Viking common stock and warrants in April 2016, are classified as level 1 as the fair value is determined using quoted market prices in active markets for the same securities.