Acorda Therapeutics (ACORQ) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
Document and Entity Information
Entity Registrant Name	ACORDA THERAPEUTICS INC
Entity Central Index Key	1,008,848
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		46,067,276
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 431,414	$ 153,204
Restricted cash	190	6,032
Short-term investments		200,101
Trade accounts receivable, net of allowances of $932 and $884, as of March 31, 2016 and December 31, 2015, respectively	41,623	31,466
Prepaid expenses	14,312	16,079
Finished goods inventory	39,667	36,476
Other current assets	17,075	7,959
Total current assets	544,281	451,317
Property and equipment, net of accumulated depreciation	38,027	40,204
Goodwill	183,636	183,636
Deferred tax asset	12,273	2,128
Intangible assets, net of accumulated amortization	430,491	430,856
Non-current portion of deferred cost of license revenue	2,747	2,906
Other assets	239	247
Total assets	1,211,694	1,111,294
Current liabilities:
Accounts payable	21,355	14,233
Accrued expenses and other current liabilities	73,475	66,133
Current portion of deferred license revenue	9,057	9,057
Current portion of revenue interest liability		25
Current portion of convertible notes payable	1,117	1,144
Total current liabilities	105,004	90,592
Convertible senior notes (due 2021)	292,624	290,420
Acquired contingent consideration	69,700	63,500
Non-current portion of deferred license revenue	39,249	41,513
Non-current portion of convertible notes payable		1,107
Deferred tax liability	12,146	12,146
Other non-current liabilities	$ 8,959	$ 8,991
Commitments and contingencies
Stockholders' equity:
Common stock, $0.001 par value. Authorized 80,000,000 shares at March 31, 2016 and December 31, 2015; issued 45,974,953 and 43,440,324 shares, including those held in treasury, as of March 31, 2016 and December 31, 2015, respectively	$ 46	$ 43
Treasury stock at cost (12,420 shares at March 31, 2016 and December 31, 2015)	(329)	(329)
Additional paid-in capital	894,167	812,782
Accumulated deficit	(209,872)	(209,352)
Accumulated other comprehensive loss		(119)
Total stockholders' equity	684,012	603,025
Total liabilities and stockholders' equity	$ 1,211,694	$ 1,111,294

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Consolidated Balance Sheets
Trade accounts receivable, allowances (in dollars)	$ 932	$ 884
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, Authorized shares	80,000,000	80,000,000
Common stock, issued shares	45,974,953	43,440,324
Treasury stock, shares	12,420	12,420

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Net product revenues	$ 110,148	$ 93,500
Royalty revenues	3,492	4,087
License revenue	2,264	2,264
Total net revenues	115,904	99,851
Costs and expenses:
Cost of sales	23,186	18,446
Cost of license revenue	159	159
Research and development	44,570	30,636
Selling, general and administrative	58,980	48,769
Changes in fair value of acquired contingent consideration	6,200	3,100
Total operating expenses	133,095	101,110
Operating loss	(17,191)	(1,259)
Other income (expense) (net):
Interest and amortization of debt discount expense	(3,723)	(4,051)
Interest income	215	66
Other income	10,442	121
Total other income (expense) (net)	6,934	(3,864)
Loss before taxes	(10,257)	(5,123)
Benefit from income taxes	9,737	2,038
Net loss	$ (520)	$ (3,085)
Net loss per share-basic (in dollars per share)	$ (0.01)	$ (0.07)
Net loss per share-diluted (in dollars per share)	$ (0.01)	$ (0.07)
Weighted average common shares outstanding used in computing net loss per share-basic (in shares)	44,815	42,031
Weighted average common shares outstanding used in computing net loss per share-diluted (in shares)	44,815	42,031

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Consolidated Statements of Comprehensive Loss
Net loss	$ (520)	$ (3,085)
Other comprehensive loss:
Unrealized losses on available for sale securities, net of tax		(17)
Reclassification of net losses to net income	119
Other comprehensive income (loss), net of tax	119	(17)
Comprehensive loss	$ (401)	$ (3,102)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net loss	$ (520)	$ (3,085)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Share-based compensation expense	8,159	7,126
Amortization of net premiums and discounts on investments	495	551
Amortization of debt discount and debt issuance costs	2,204	2,103
Amortization of revenue interest issuance cost		6
Depreciation and amortization expense	3,949	3,707
Change in acquired contingent consideration obligation	6,200	3,100
Unrealized gain on foreign currency transaction	(10,289)
Deferred tax benefit	(10,172)	(2,038)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(10,156)	1,659
Decrease (increase) in prepaid expenses and other current assets	4,308	(3,190)
Increase in inventory	(3,191)	(18,996)
Decrease in non-current portion of deferred cost of license revenue	159	159
Increase in accounts payable, accrued expenses, other current liabilities	11,969	7,099
Decrease in revenue interest liability interest payable		(41)
Decrease in non-current portion of deferred license revenue	(2,264)	(2,264)
Increase in other non-current liabilities	4
Decrease in deferred product revenue-Zanaflex		(300)
Decrease (Increase) in restricted cash	5,842	(4,846)
Net cash provided by (used in) operating activities	6,697	(9,250)
Cash flows from investing activities:
Purchases of property and equipment	(1,037)	(2,571)
Purchases of intangible assets	(406)	(152)
Purchases of investments	(40,214)	(169,563)
Proceeds from maturities of investments	239,966	56,250
Net cash provided by (used in) investing activities	198,309	(116,036)
Cash flows from financing activities:
Proceeds from issuance of common stock and option exercises	73,229	4,741
Repayments of revenue interest liability	(25)	(110)
Net cash provided by financing activities	73,204	4,631
Net decrease in cash and cash equivalents	278,210	(120,655)
Cash and cash equivalents at beginning of period	153,204	182,170
Cash and cash equivalents at end of period	431,414	61,515
Supplemental disclosure:
Cash paid for interest	21	463
Cash paid for taxes	$ 157	$ 743

Organization and Business Activ

Organization and Business Activities	3 Months Ended
	Mar. 31, 2016
Organization and Business Activities
Organization and Business Activities	(1) Organization and Business Activities Acorda Therapeutics, Inc. (“Acorda” or the “Company”) is a biopharmaceutical company dedicated to the identification, development and commercialization of novel therapies that restore function and improve the lives of people with neurological disorders. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP) for interim financial information, Accounting Standards Codification (ASC) Topic 270-10 and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In management’s opinion, all adjustments considered necessary for a fair presentation have been included in the interim periods presented and all adjustments are of a normal recurring nature. The Company has evaluated subsequent events through the date of this filing. Operating results for the three-month period ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. When used in these notes, the terms “Acorda” or “the Company” mean Acorda Therapeutics, Inc. The December 31, 2015 consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. You should read these unaudited interim condensed consolidated financial statements in conjunction with the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Certain reclassifications were made to prior period amounts in the interim consolidated financial statements and accompanying notes to conform with the current presentation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	(2) Summary of Significant Accounting Policies Our critical accounting policies are detailed in our Annual Report on Form 10-K for the year ended December 31, 2015. As of March 31, 2016, with the exception of the adoption of ASU 2015-03, our critical accounting policies have not changed materially from December 31, 2015. Subsequent Events Subsequent events are defined as those events or transactions that occur after the balance sheet date, but before the financial statements are filed with the Securities and Exchange Commission. The Company completed an evaluation of the impact of any subsequent events through the date these financial statements were issued, and determined the following subsequent events required disclosure in these financial statements. Biotie acquisition On April 18, 2016, the Company closed a tender offer for all of the outstanding capital stock of Biotie Therapies Corp. (“Biotie”), a Finland based company, pursuant to which the Company acquired approximately 93% of the fully diluted capital stock of Biotie (See Note 3). On May 4, 2016, the Company acquired another approximately 4% of Biotie’s fully diluted capital stock pursuant to a subsequent public offer to Biotie stockholders that did not tender their shares in the initial tender offer. The Company funded the initial and subsequent tender offers with approximately $357 million of existing cash on hand. As a result of funding the tender offer, the Company’s cash balance has decreased as compared to the cash balance reported at March 31, 2016. The Company will account for the transaction as a business combination following the acquisition method of accounting in accordance with ASC 805, Business Combinations . The preparation of the closing financial statements for Biotie is currently underway and the Company will perform valuation procedures to determine the fair value of the assets acquired and liabilities assumed upon completion of the closing financial statements. Therefore, the information necessary to determine the fair value of assets acquired and liabilities assumed is not available as of the date of these financial statements. The Company incurred approximately $7.2 million in acquisition related expenses that are reflected in selling, general and administrative expenses for the three-month period ended March 31, 2016. With the exception of the acquisition related expenses incurred, the acquisition of Biotie did not impact the Company’s unaudited consolidated financial statements for the three-month periods ended March 31, 2016 and 2015. Recently Issued / Adopted Accounting Pronouncements In April 2015, the FASB issued Accounting Standards Update 2015-03, “Interest — Imputation of Interest” (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. ASU-2014-15 is effective for fiscal years and interim periods therein beginning after December 15, 2015, with early adoption permitted. The Company adopted this guidance retrospectively effective in the three-month period ended March 31, 2016. The impact of the adoption of this guidance on the Company’s consolidated balance sheet as of December 31, 2015 was a reclassification of approximately $5.0 million representing the unamortized balance of debt issuance costs as of December 31, 2015 from Other Assets to the Convertible Senior Notes liability. Balance at December 31, 2015 (In thousands) Revised Reporting As Previously Reported Other assets $ $ Convertible notes payable — due 2021 $ ) $ ) In March 2016, the FASB issued Accounting Standards Update 2016-09, “Compensation — Stock Compensation” (Topic 718). The main objective of this update is to simplify the accounting, and reporting classifications for certain aspects of share-based payment transactions. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the new guidance to determine the impact it may have on its financial statements.

Acquisitions

Acquisitions	3 Months Ended
	Mar. 31, 2016
Acquisitions
Acquisitions	(3) Acquisitions Biotie Therapies Corp. (Pending Acquisition) In January 2016, the Company announced that it had entered into a combination agreement to acquire Biotie Therapies Corp. (“Biotie”) for a cash purchase price of approximately $363 million. In accordance with the combination agreement, on April 18, 2016, the Company closed a public tender offer for all of Biotie’s capital stock, pursuant to which the Company acquired approximately 93% of the fully diluted capital stock of Biotie. On May 4, 2016, the Company acquired another approximately 4% of Biotie’s fully diluted capital stock pursuant to a subsequent public offer to Biotie stockholders that did not tender their shares in the initial tender offer. Accordingly, the Company currently owns approximately 97% of the fully diluted capital stock of Biotie. The Company intends to acquire all remaining shares of Biotie capital stock that have not been tendered to the Company pursuant to compulsory redemption proceedings under Finnish law that the Company initiated in April 2016. The Company expects to complete the acquisition of 100% of Biotie pursuant to these compulsory redemption proceedings in the second half of 2016. Financing Transactions Concurrently with the announcement of the Biotie acquisition, the Company announced two separate financing transactions. The first was a private placement of 2,250,900 shares of the Company’s common stock for an aggregate purchase price of approximately $75 million. The Company paid discounts and commissions of $2.3 million in connection with the private placement, which settled on January 26, 2016. The Company used the net proceeds from the private placement to fund, in part, the acquisition of Biotie. The Company also announced a commitment from JP Morgan Chase, N.A. for an asset-based credit facility for up to $60 million. The closing of this credit facility is expected to occur in the second quarter of 2016. Financial Instruments The Company does not enter into hedging transactions in the normal course of business. However, as a result of the Biotie acquisition which is to be completed in euros, the Company is exposed to fluctuations in exchange rates between the U.S. dollar and the euro until the completion of the transaction. To mitigate this risk, the Company entered into foreign currency options to limit its exposure to fluctuations in exchange rates between the U.S. dollar and the euro until the transaction is completed. The Company recorded the fair value of the options on its balance sheet and will recognize any gains or losses in earnings each period until the options expire or are canceled. As of May 2, 2016, there were no remaining foreign currency options outstanding. The Company currently owns approximately 97% of the fully diluted capital stock of Biotie, therefore, the risk of exposure to fluctuations in exchange rates between the U.S. dollar and the euro is no longer material to the Company. The notional value of the foreign currency options was EUR 334 million (or approximately $363 million based on an average exchange rate of 1.0864 USD to 1.00 EUR from the last 5 trading days prior to January 15, 2016) as of March 31, 2016. As of March 31, 2016, the Company had an unrealized gain on the options of approximately $10.3 million that is being reflected in other income. The Company recorded approximately $11.6 million in other current assets and approximately $1.3 million in other current liabilities related to the options in the consolidated balance sheet at March 31, 2016. The options which are subject to a master netting arrangement are presented on a gross basis in the consolidated balance sheet.

Share-based Compensation

Share-based Compensation	3 Months Ended
	Mar. 31, 2016
Share-based Compensation
Share-based Compensation	(4) Share-based Compensation During the three-month periods ended March 31, 2016 and 2015, the Company recognized share-based compensation expense of $8.1 million and $7.1 million, respectively. Activity in options and restricted stock during the three-month period ended March 31, 2016 and related balances outstanding as of that date are reflected below. The weighted average fair value per share of options granted to employees for the three-month periods ended March 31, 2016 and 2015 were approximately $15.28 and $16.25, respectively. The following table summarizes share-based compensation expense included within the consolidated statements of operations: For the three-month period ended March 31, (In millions) 2016 2015 Research and development $ $ Selling, general and administrative Total $ $ A summary of share-based compensation activity for the three-month period ended March 31, 2016 is presented below: Stock Option Activity Number of Shares (In thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Intrinsic Value (In thousands) Balance at January 1, 2016 $ Granted Cancelled ) Exercised ) Balance at March 31, 2016 $ $ Vested and expected to vest at March 31, 2016 $ $ Vested and exercisable at March 31, 2016 $ $ Restricted Stock Activity (In thousands) Restricted Stock Number of Shares Nonvested at January 1, 2016 Granted Vested ) Forfeited ) Nonvested at March 31, 2016 Unrecognized compensation cost for unvested stock options, restricted stock awards and performance stock units as of March 31, 2016 totaled $78.5 million and is expected to be recognized over a weighted average period of approximately 2.5 years.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share
Earnings Per Share	(5) Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share for the three-month periods ended March 31, 2016 and 2015: (In thousands, except per share data) Three-month period ended March 31, 2016 Three-month period ended March 31, 2015 Basic and diluted Net loss $ ) $ ) Weighted average common shares outstanding used in computing net loss per share—basic Plus: net effect of dilutive stock options and restricted common shares — — Weighted average common shares outstanding used in computing net loss per share—diluted Net loss per share—basic $ ) $ ) Net loss per share—diluted $ ) $ ) The difference between basic and diluted shares is that diluted shares include the dilutive effect of the assumed exercise of outstanding securities. The Company’s stock options and unvested shares of restricted common stock could have the most significant impact on diluted shares. Securities that could potentially be dilutive are excluded from the computation of diluted earnings per share when a loss from continuing operations exists or when the exercise price exceeds the average closing price of the Company’s common stock during the period, because their inclusion would result in an anti-dilutive effect on per share amounts. The following amounts were not included in the calculation of net income per diluted share because their effects were anti-dilutive: (In thousands) Three-month period ended March 31, 2016 Three-month period ended March 31, 2015 Denominator Stock options and restricted common shares Convertible note — Saints Capital Additionally, the impact of the convertible debt was determined to be anti-dilutive and excluded from the calculation of net loss per diluted share for the three-month periods ended March 31, 2016 and 2015.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Taxes
Income Taxes	(6) Income Taxes For the three-month periods ended March 31, 2016 and 2015, the Company recorded a $9.7 million benefit and $2.0 million benefit from income taxes, respectively based upon its estimated annual effective tax rate. The benefit for income taxes is based on federal, state and Puerto Rico income taxes, net of any tax credits. The effective income tax rates for the Company for the three-month periods ended March 31, 2016 and 2015 were 95% and 40%, respectively. The variance in the effective tax rates for the three-month period ended March 31, 2016 as compared to the three-month period ended March 31, 2015 was due primarily to the Company being able to receive a benefit in 2016 for the Federal research and development tax as a result of passed legislation making the tax credit permanent. The Company was not able to benefit from the Federal research and development credit for the three-month period ending March 31, 2015, however, the Company was able to receive the benefit for this tax credit in the effective tax rate at December 31, 2015. The Company continues to evaluate the realizability of its deferred tax assets and liabilities on a quarterly basis and will adjust such amounts in light of changing facts and circumstances including, but not limited to, future projections of taxable income, tax legislation, rulings by relevant tax authorities, the progress of ongoing tax audits and the regulatory approval of products currently under development. Any changes to the valuation allowance or deferred tax assets and liabilities in the future would impact the Company’s income taxes.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2016
Fair Value Measurements
Fair Value Measurements	(7) Fair Value Measurements The following table presents information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015 and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs utilize data points that are observable, such as quoted prices, interest rates, exchange rates and yield curves. Fair values determined by Level 3 inputs utilize unobservable data points for the asset or liability. The Company’s Level 1 assets consist of time deposits and investments in a Treasury money market fund and the Company’s Level 2 assets consist of foreign currency options that are valued using market exchange rates which are observable and high-quality government bonds that are valued using observable market prices. The Company’s Level 3 liabilities represent acquired contingent consideration related to the acquisition of Civitas and are valued using a probability weighted discounted cash flow valuation approach. No changes in valuation techniques occurred during the three-month period ended March 31, 2016. The estimated fair values of all of our financial instruments approximate their carrying values at March 31, 2016, except for the fair value of the Company’s convertible senior notes, which was approximately $305.5 million as of March 31, 2016. The Company estimates the fair value of its notes utilizing market quotations for the debt (Level 2). (In thousands) Level 1 Level 2 Level 3 March 31, 2016 Assets Carried at Fair Value: Cash equivalents $ $ — $ — Foreign currency option (asset) — — Liabilities Carried at Fair Value: Acquired contingent consideration — — Foreign currency option (liability) — — December 31, 2015 Assets Carried at Fair Value: Cash equivalents $ $ $ — Short-term investments — — Liabilities Carried at Fair Value: Acquired contingent consideration — — The following table presents additional information about liabilities measured at fair value on a recurring basis and for which the Company utilizes Level 3 inputs to determine fair value. Acquired contingent consideration (In thousands) Three-month period ended March 31, 2016 Three-month period ended March 31, 2015 Acquired contingent consideration: Balance, beginning of period $ $ Fair value change to contingent consideration (unrealized) included in the statement of operations Balance, end of period $ $ The Company estimates the fair value of its acquired contingent consideration using a probability weighted discounted cash flow valuation approach based on estimated future sales expected from CVT-301, a phase 3 candidate for the treatment of OFF periods of Parkinson’s disease and CVT-427, a Phase I candidate. CVT-427 is an inhaled triptan intended for acute treatment of migraine using the ARCUS delivery system. Using this approach, expected future cash flows are calculated over the expected life of the agreement, are discounted, and then exercise scenario probabilities are applied. Some of the more significant assumptions made in the valuation include (i) the estimated CVT-301 and CVT 427 revenue forecasts, (ii) probabilities of success, and (iii) discount periods and rate. The probability of achievement of revenue milestones ranged from 43.9% to 70% with milestone payment outcomes ranging from $0 to $60 million in the aggregate for CVT-301 and CVT-427. The valuation is performed quarterly. Gains and losses are included in the statement of operations. For the three-month period ended March 31, 2016, changes in the fair value of the acquired contingent consideration were due to the re-calculation of cash flows for the passage of time and updates to certain other estimated assumptions. The acquired contingent consideration is classified as a Level 3 liability as its valuation requires substantial judgment and estimation of factors that are not currently observable in the market. If different assumptions were used for the various inputs to the valuation approach, including but not limited to, assumptions involving probability adjusted sales estimates for CVT-301 and CVT-427 and estimated discount rates, the estimated fair value could be significantly higher or lower than the fair value determined.

Investments

Investments	3 Months Ended
	Mar. 31, 2016
Investments
Investments	(8) Investments The Company held no short-term available-for-sale debt securities at March 31, 2016 as compared to $200.1 million at December 31, 2015 as these investments were either sold or matured during the three-month period ended March 31, 2016 to facilitate the Biotie acquisition. As a result of the sale of certain available-for-sale debt securities, the Company recognized a gain of approximately $0.03 million in the three-month period ended March 31, 2016. The contractual maturities of available-for-sale debt securities held at December 31, 2015 were greater than 3 months but less than 1 year. (In thousands) Amortized Cost Gross unrealized gains Gross unrealized losses Estimated fair value March 31, 2016 U.S. Treasury bonds $ — $ — $ (— ) $ — December 31, 2015 U.S. Treasury bonds — ) Short-term investments with maturities of three months or less from date of purchase have been classified as cash equivalents, and amounted to $357.7 million and $83.5 million as of March 31, 2016 and December 31, 2015, respectively. Unrealized holding gains and losses are reported within accumulated other comprehensive (loss) (AOCI) in the statements of comprehensive income. The changes in AOCI associated with the unrealized holding (losses) on available-for-sale investments during the three-month period ended March 31, 2016, were as follows (in thousands): (In thousands) Net Unrealized Gains (Losses) on Marketable Securities Balance at December 31, 2015 $ ) Other comprehensive loss before reclassifications: — Amounts reclassified from accumulated other comprehensive loss Net current period other comprehensive income Balance at March 31, 2016 $ —

Collaborations, Alliances, and

Collaborations, Alliances, and Other Agreements	3 Months Ended
	Mar. 31, 2016
Collaborations, Alliances and Other Agreements
Collaborations, Alliances and Other Agreements	(9) Collaborations, Alliances, and Other Agreements Biogen The Company has an exclusive collaboration and license agreement with Biogen Inc. (formerly Biogen Idec International GmbH), or Biogen, as of June 2009 to develop and commercialize Ampyra (known as Fampyra outside the U.S.) in markets outside the U.S. (the “Collaboration Agreement”). The Company also entered into a related supply agreement with Biogen (the “Supply Agreement”), pursuant to which the Company will supply Biogen with its requirements for the licensed products through the Company’s existing supply agreement with Alkermes. Under the Collaboration Agreement, the Company received an upfront payment of $110.0 million in June 2009, and a $25 million milestone payment in August 2011. As a result of the upfront payment from Biogen, the Company also made a $7.7 million payment to Alkermes. The upfront payment from Biogen was recorded as deferred revenue and the payment to Alkermes was recorded as deferred expense. The Company is also entitled to receive additional payments of up to $10 million based on the successful achievement of future regulatory milestones and up to $365 million based on the successful achievement of future sales milestones. Due to the uncertainty surrounding the achievement of the future regulatory and sales milestones, these payments will not be recognized as revenue unless and until they are earned. The Company recognized $2.3 million in license revenue, a portion of the $110.0 million received from Biogen, and $0.2 million in cost of license revenue, a portion of the $7.7 million paid to Alkermes, during the three-month periods ended March 31, 2016 and 2015, respectively. The Company currently estimates the recognition period to be approximately 12 years from the date of the Collaboration Agreement. As part of its ex-U.S. license agreement, Biogen owes Acorda royalties based on ex-U.S. net sales, and milestones based on ex-U.S. regulatory approval and new indications. The Company recognized $2.5 million and $2.3 million in royalty revenue, respectively, for the three-month periods ended March 31, 2016 and 2015, related to ex-U.S. sales of Fampyra by Biogen. Allergan/Watson The Company has an agreement with an Allergan plc subsidiary (originally Watson Pharma, Inc.), or Allergan, to market tizanidine hydrochloride capsules, an authorized generic version of Zanaflex Capsules which was launched in February 2012. In accordance with the agreement, the Company receives a royalty based on Allergan’s gross margin, as defined by the agreement, of the authorized generic product. During the three-month periods ended March 31, 2016 and 2015, the Company recognized royalty revenue of $1.0 million and $1.8 million, respectively, related to the gross margin of the Zanaflex Capsule authorized generic. During the three-month periods ended March 31, 2016 and 2015, the Company also recognized revenue and a corresponding cost of sales of $0.6 million and $0.2 million, respectively, related to the purchase and sale of the related Zanaflex Capsule authorized generic product to Allergan, which is recorded in net product revenues and cost of sales.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies
Commitments and Contingencies	(10) Commitments and Contingencies A summary of the Company’s commitments and contingencies was included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. The Company’s long-term contractual obligations include commitments and estimated purchase obligations entered into in the normal course of business. The Company is currently party to various legal proceedings which are principally patent litigation matters. The Company has assessed such legal proceedings and does not believe that it is probable that a liability has been incurred or that the amount of any potential liability or range of losses can be reasonably estimated. As a result, the Company did not record any loss contingencies for any of these matters. While it is not possible to determine the outcome of these matters the Company believes that the resolution of all such matters will not have a material adverse effect on its consolidated financial position or liquidity, but could possibly be material to the Company’s consolidated results of operations in any one accounting period. Litigation expenses are expensed as incurred.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies
Subsequent Events	Subsequent Events Subsequent events are defined as those events or transactions that occur after the balance sheet date, but before the financial statements are filed with the Securities and Exchange Commission. The Company completed an evaluation of the impact of any subsequent events through the date these financial statements were issued, and determined the following subsequent events required disclosure in these financial statements. Biotie acquisition On April 18, 2016, the Company closed a tender offer for all of the outstanding capital stock of Biotie Therapies Corp. (“Biotie”), a Finland based company, pursuant to which the Company acquired approximately 93% of the fully diluted capital stock of Biotie (See Note 3). On May 4, 2016, the Company acquired another approximately 4% of Biotie’s fully diluted capital stock pursuant to a subsequent public offer to Biotie stockholders that did not tender their shares in the initial tender offer. The Company funded the initial and subsequent tender offers with approximately $357 million of existing cash on hand. As a result of funding the tender offer, the Company’s cash balance has decreased as compared to the cash balance reported at March 31, 2016. The Company will account for the transaction as a business combination following the acquisition method of accounting in accordance with ASC 805, Business Combinations . The preparation of the closing financial statements for Biotie is currently underway and the Company will perform valuation procedures to determine the fair value of the assets acquired and liabilities assumed upon completion of the closing financial statements. Therefore, the information necessary to determine the fair value of assets acquired and liabilities assumed is not available as of the date of these financial statements. The Company incurred approximately $7.2 million in acquisition related expenses that are reflected in selling, general and administrative expenses for the three-month period ended March 31, 2016. With the exception of the acquisition related expenses incurred, the acquisition of Biotie did not impact the Company’s unaudited consolidated financial statements for the three-month periods ended March 31, 2016 and 2015.
Recent Accounting Pronouncements	Recently Issued / Adopted Accounting Pronouncements In April 2015, the FASB issued Accounting Standards Update 2015-03, “Interest — Imputation of Interest” (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs (ASU 2015-03), which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the debt liability rather than as an asset. ASU-2014-15 is effective for fiscal years and interim periods therein beginning after December 15, 2015, with early adoption permitted. The Company adopted this guidance retrospectively effective in the three-month period ended March 31, 2016. The impact of the adoption of this guidance on the Company’s consolidated balance sheet as of December 31, 2015 was a reclassification of approximately $5.0 million representing the unamortized balance of debt issuance costs as of December 31, 2015 from Other Assets to the Convertible Senior Notes liability. Balance at December 31, 2015 (In thousands) Revised Reporting As Previously Reported Other assets $ $ Convertible notes payable — due 2021 $ ) $ ) In March 2016, the FASB issued Accounting Standards Update 2016-09, “Compensation — Stock Compensation” (Topic 718). The main objective of this update is to simplify the accounting, and reporting classifications for certain aspects of share-based payment transactions. This ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating the new guidance to determine the impact it may have on its financial statements.

Summary of Significant Accoun18

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Summary of Significant Accounting Policies
Schedule of new accounting pronouncement	Balance at December 31, 2015 (In thousands) Revised Reporting As Previously Reported Other assets $ $ Convertible notes payable — due 2021 $ ) $ )

Share-based Compensation (Table

Share-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Share-based Compensation
Schedule of share-based compensation expense	For the three-month period ended March 31, (In millions) 2016 2015 Research and development $ $ Selling, general and administrative Total $ $
Schedule of stock option activity	Number of Shares (In thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term Intrinsic Value (In thousands) Balance at January 1, 2016 $ Granted Cancelled ) Exercised ) Balance at March 31, 2016 $ $ Vested and expected to vest at March 31, 2016 $ $ Vested and exercisable at March 31, 2016 $ $
Schedule of restricted stock activity	(In thousands) Restricted Stock Number of Shares Nonvested at January 1, 2016 Granted Vested ) Forfeited ) Nonvested at March 31, 2016

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share
Schedule of computation of basic and diluted earnings per share	(In thousands, except per share data) Three-month period ended March 31, 2016 Three-month period ended March 31, 2015 Basic and diluted Net loss $ ) $ ) Weighted average common shares outstanding used in computing net loss per share—basic Plus: net effect of dilutive stock options and restricted common shares — — Weighted average common shares outstanding used in computing net loss per share—diluted Net loss per share—basic $ ) $ ) Net loss per share—diluted $ ) $ )
Schedule of antidilutive securities excluded from calculation of net [(loss) income] per diluted share	(In thousands) Three-month period ended March 31, 2016 Three-month period ended March 31, 2015 Denominator Stock options and restricted common shares Convertible note — Saints Capital

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2016
Schedule of assets and liabilities measured at fair value on a recurring basis	(In thousands) Level 1 Level 2 Level 3 March 31, 2016 Assets Carried at Fair Value: Cash equivalents $ $ — $ — Foreign currency option (asset) — — Liabilities Carried at Fair Value: Acquired contingent consideration — — Foreign currency option (liability) — — December 31, 2015 Assets Carried at Fair Value: Cash equivalents $ $ $ — Short-term investments — — Liabilities Carried at Fair Value: Acquired contingent consideration — —
Contingent liability
Schedule of contingent liabilities	(In thousands) Three-month period ended March 31, 2016 Three-month period ended March 31, 2015 Acquired contingent consideration: Balance, beginning of period $ $ Fair value change to contingent consideration (unrealized) included in the statement of operations Balance, end of period $ $

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2016
Investments
Schedule of available-for-sale securities	(In thousands) Amortized Cost Gross unrealized gains Gross unrealized losses Estimated fair value March 31, 2016 U.S. Treasury bonds $ — $ — $ (— ) $ — December 31, 2015 U.S. Treasury bonds — )
Schedule of changes in accumulated other comprehensive (loss) income	(In thousands) Net Unrealized Gains (Losses) on Marketable Securities Balance at December 31, 2015 $ ) Other comprehensive loss before reclassifications: — Amounts reclassified from accumulated other comprehensive loss Net current period other comprehensive income Balance at March 31, 2016 $ —

Summary of Significant Accoun23

Summary of Significant Accounting Policies - Policies 1 (Details) - Biotie Therapies Corp. - USD ($) $ in Millions	Apr. 18, 2016	Jan. 31, 2016	Mar. 31, 2016	May. 04, 2016
Biotie acquisition
Acquisition transaction funded	$ 357	$ 363
Acquisition related expense			$ 7.2
Subsequent Events
Biotie acquisition
Voting interest acquired	93.00%			4.00%

Summary of Significant Accoun24

Summary of Significant Accounting Policies - Policies 2 (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Recent Accounting Pronouncements
Other assets	$ 239	$ 247
Convertible senior notes (due 2021)	$ (292,624)	(290,420)
Accounting Standards Update 2015-03 | Other Noncurrent Assets
Recent Accounting Pronouncements
Unamortized debt issuance cost		(5,000)
Accounting Standards Update 2015-03 | Convertible senior notes (due 2021)
Recent Accounting Pronouncements
Unamortized debt issuance cost		5,000
As Previously Reported
Recent Accounting Pronouncements
Other assets		5,296
Convertible senior notes (due 2021)		$ (295,469)

Acquisitions - Biotie Therapies

Acquisitions - Biotie Therapies Corp (Details) $ in Thousands, € in Millions	Apr. 18, 2016USD ($)	Jan. 31, 2016USD ($)	Mar. 31, 2016USD ($)itemshares	Dec. 31, 2016	Jun. 30, 2016USD ($)	May. 04, 2016	May. 02, 2016USD ($)	Mar. 31, 2016EUR (€)	Mar. 31, 2016USD ($)
Notional value of foreign currency option								€ 334	$ 363,000
Average exchange rate								1.0864	1.0864
Number of trading days considered for average exchange rate			5 days
Unrealized gain on options			$ 10,300
Subsequent Events
Notional value of foreign currency option							$ 0
Other current assets
Unrealized gain on options			11,600
Other current liabilities
Unrealized gain on options			$ 1,300
Asset-based credit facility | JPMorgan Chase, N.A. | Forecast
Credit facility, maximum borrowing capacity					$ 60,000
Private placement
Number of financing transactions announced | item			2
Number of common shares issued under private placement | shares			2,250,900
Proceeds from private placement			$ 75,000
Discounts and commissions paid			$ 2,300
Biotie Therapies Corp.
Aggregate equity purchase price	$ 357,000	$ 363,000
Biotie Therapies Corp. | Forecast
Voting interest acquired				100.00%
Biotie Therapies Corp. | Subsequent Events
Voting interest acquired	93.00%					4.00%
Total ownership percentage						97.00%

Share Based Compensation (Detai

Share Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share based compensation disclosure
Share-based compensation expense recognized	$ 8.1	$ 7.1
Restricted Stock
Share-based compensation expense
Aggregate restricted stock granted (in shares)	486
Stock Options and Restricted Stock Awards
Share based compensation disclosure
Weighted average fair value of options granted (in dollars per share)	$ 15.28	$ 16.25
Research and development.
Share based compensation disclosure
Share-based compensation expense recognized	$ 2.1	$ 1.8
Selling, general, and administrative
Share based compensation disclosure
Share-based compensation expense recognized	$ 6	$ 5.3

Share Based Compensation (Det27

Share Based Compensation (Details 2) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)$ / sharesshares
Share based compensation, other disclosures
Total unrecognized compensation costs related to unvested stock options and restricted stock awards that the company expects to recognize | $	$ 78,500
Weighted average period	2 years 6 months
Stock Options
Stock Option Activity
Beginning balance (in shares)	8,223
Granted (in shares)	919
Cancelled (in shares)	(42)
Exercised (in shares)	(68)
Ending balance (in shares)	9,032
Vested and expected to vest at end of period (in shares)	8,919
Vested and exercisable at end of period (in shares)	5,408
Weighted Average Exercise Price
Balance at the beginning of the period (in dollars per share) | $ / shares	$ 30.97
Granted (in dollars per share) | $ / shares	35.74
Cancelled (in dollars per share) | $ / shares	33.26
Exercised (in dollars per share) | $ / shares	17.09
Balance at the end of the period (in dollars per share) | $ / shares	31.55
Vested and expected to vest at the end of the period (in dollars per share) | $ / shares	31.50
Vested and exercisable at the end of the period (in dollars per share) | $ / shares	$ 28.99
Weighted Average Remaining Contractual Term
Balance at the end of the period	6 years 8 months 12 days
Vested and expected to vest at the end of the period	6 years 8 months 12 days
Vested and exercisable at the end of the period	5 years 6 months
Intrinsic Value
Balance at the end of the period | $	$ 8,701
Vested and expected to vest at the end of the period | $	8,701
Vested and exercisable at the end of the period | $	$ 8,660
Restricted Stock
Restricted Stock Activity
Nonvested at the beginning of the period (in shares)	441
Granted (in shares)	486
Vested (in shares)	(3)
Forfeited (in shares)	(5)
Nonvested at the end of the period (in shares)	919

Earnings Per Share - EPS (Detai

Earnings Per Share - EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Basic and diluted
Net loss	$ (520)	$ (3,085)
Weighted average common shares outstanding used in computing net loss per share-basic (in shares)	44,815	42,031
Weighted average common shares outstanding used in computing net loss per share-diluted	44,815	42,031
Net loss per share-basic (in dollars per share)	$ (0.01)	$ (0.07)
Net loss per share-diluted (in dollars per share)	$ (0.01)	$ (0.07)

Earnings Per Share - Amounts no

Earnings Per Share - Amounts not included (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock options and restricted common shares
Antidilutive Securities
Anti-dilutive securities excluded from computation of earnings per share (in shares)	4,393,000	3,300,000
Convertible note
Antidilutive Securities
Anti-dilutive securities excluded from computation of earnings per share (in shares)	10,000	19,000
Private placement
Antidilutive Securities
Number of common shares issued under private placement	2,250,900
Proceeds from private placement	$ 75
Discounts and commissions paid	$ 2.3

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Reconciliation of statutory federal income tax rate to effective income tax rate
Income tax provision/benefit	$ (9,737)	$ (2,038)
Effective income tax rate (as a percent)	95.00%	40.00%

Fair Value Measurements - Recur

Fair Value Measurements - Recurring (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets Carried at Fair Value:
Short-term investments		$ 200,101
Level 2
Liabilities Carried at Fair Value:
Convertible senior notes	$ 305,500
Recurring basis | Level 1
Assets Carried at Fair Value:
Cash equivalents	357,687	70,504
Recurring basis | Level 2
Assets Carried at Fair Value:
Cash equivalents		13,009
Short-term investments		200,101
Recurring basis | Level 2 | Foreign currency option
Assets Carried at Fair Value:
Foreign currency option (asset)	11,650
Liabilities Carried at Fair Value:
Foreign currency option (liability)	1,361
Recurring basis | Level 3 | Contingent liability
Liabilities Carried at Fair Value:
Acquired contingent consideration	$ 69,700	$ 63,500

Fair Value Measurements - Level

Fair Value Measurements - Level 3 (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Assets and liabilities measured at fair value on a recurring basis utilizing Level 3 inputs
Balance, beginning of period	$ 63,500	$ 52,600
Fair value change to contingent consideration (unrealized) included in the statement of operations	6,200	3,100
Balance, end of period	$ 69,700	$ 55,700
Contingent liability
Assets and liabilities measured at fair value on a recurring basis utilizing Level 3 inputs
Milestone payment, minimum (as a percent)	43.90%
Milestone payment, maximum (as a percent)	70.00%
Milestone payment, minimum	$ 0
Milestone payment, maximum	$ 60,000

Investments - Available-for-sal

Investments - Available-for-sale (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Investments
Short-term available-for-sale debt securities	$ 0	$ 200,100
Gain from sale of available for sale securities	30
Short-term investments classified as cash and cash equivalents	$ 357,700	$ 83,500
Minimum
Investments
Short-term investments maturity term		3 months
Maximum
Investments
Short-term investments maturity term		1 year
US Treasury bonds
Investments
Amortized Cost		$ 200,244
Gross unrealized losses		(143)
Estimated fair value		$ 200,101

Investments - AOCI (Details)

Investments - AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Changes in accumulated other comprehensive (loss) income
Balance at the beginning of the period	$ (119)
Reclassification of net losses to net income	119
Net current period other comprehensive income	119	$ (17)
Net Unrealized Gains (Losses) on Marketable Securities
Changes in accumulated other comprehensive (loss) income
Balance at the beginning of the period	(119)
Reclassification of net losses to net income	119
Net current period other comprehensive income	$ 119

Collaborations, Alliances, an35

Collaborations, Alliances, and Other Agreements (Details) - USD ($) $ in Thousands	Jun. 30, 2009	Jun. 30, 2009	Aug. 31, 2011	Mar. 31, 2016	Mar. 31, 2015
Collaboration agreement
Royalty revenues				$ 3,492	$ 4,087
Revenue recognized				110,148	93,500
Cost of sales				23,186	18,446
Biogen Inc
Collaboration agreement
Amortized license revenue	$ 110,000			$ 2,300
Additional payments based on the successful achievement of future regulatory or sales milestones			$ 25,000
Current estimate of license revenue recognition period				12 years
Royalty revenues				$ 2,500	2,300
Biogen Inc | Maximum
Collaboration agreement
Additional payments based on the successful achievement of future regulatory or sales milestones		$ 10,000
Biogen Inc | Maximum | Up to and including $30.0 million
Collaboration agreement
Additional payments based on the successful achievement of future regulatory or sales milestones		365,000
Alkermes License Agreement
Collaboration agreement
Cost of license				200
Cost of license payable	$ 7,700	$ 7,700		7,700
Allergan/Watson | Zanaflex Capsules
Collaboration agreement
Royalty revenues				1,000	1,800
Revenue recognized				600	200
Cost of sales				$ 600	$ 200