Quarterly report pursuant to Section 13 or 15(d)

Financial Instruments

v2.4.0.6
Financial Instruments
9 Months Ended
Sep. 30, 2011
Financial Instruments [Abstract]  
Financial Instruments

3. Financial Instruments

The Company measures certain financial assets and liabilities at fair value on a recurring basis, including available-for-sale fixed income and equity securities and other equity securities. The following table provides a summary of the assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2011 (in thousands):

Fair Value Measurements at Reporting Date Using

 

            Quoted Prices in
Active Markets
for Identical
Assets
     Significant
Other
Observable
Inputs
     Significant
Unobservable
Inputs
 
     Total      (Level 1)      (Level 2)      (Level 3)  

Assets:

           

Fixed income available-for-sale securities

   $ 10,000       $ 10,000       $ —         $ —     

Liabilities:

           

Current potion of liability for contingent value rights - CyDex

   $ 6,446       $ —         $ —         $ 6,446   

Liability for contingent value rights - Metabasis

     1,068         1,068         —           —     

Liability for contingent value rights - Neurogen

     700         —           —           700   

Liability for contingent value rights - CyDex

     12,526         —           —           12,526   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total liabilities

   $ 20,740       $ 1,068       $ —         $ 19,672   
  

 

 

    

 

 

    

 

 

    

 

 

 

The following table provides a summary of the assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2010 (in thousands):

Fair Value Measurements at Reporting Date Using

 

            Quoted Prices in
Active Markets
for Identical
Assets
     Significant
Other
Observable
Inputs
     Significant
Unobservable
Inputs
 
     Total      (Level 1)      (Level 2)      (Level 3)  

Assets:

           

Fixed income available-for-sale securities

   $ 19,351       $ 19,351       $ —         $ —     

Liabilities:

           

Liability for contingent value rights - Metabasis

     —           —           —           —     

Liability for contingent value rights - Neurogen

     700         —           —           700   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 700       $ —         $ —         $ 700   
  

 

 

    

 

 

    

 

 

    

 

 

 

The Company's short-term investments are fixed income available-for-sale securities and include Corporate Notes, Corporate Discount Commercial Paper and certificates of deposit. The fair value of the Company's short-term investments and liability for contingent value rights- Metabasis are determined using quoted market prices in active markets.