ANI Pharmaceuticals (ANIP) 10-Q 2 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 26, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Entity Registrant Name	ANI PHARMACEUTICALS INC
Entity Central Index Key	1,023,024
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	ANIP
Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		11,643,039
Class C Special Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		10,864

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 18,031	$ 27,365
Accounts receivable, net of $32,463 and $31,535 of adjustments for chargebacks and other allowances at September 30, 2017 and December 31, 2016, respectively	62,174	45,895
Inventories, net	38,478	26,183
Prepaid income taxes	2,052	0
Prepaid expenses and other current assets	4,847	3,564
Total Current Assets	125,582	103,007
Property and equipment, net	17,387	10,998
Restricted cash	5,004	5,002
Deferred tax asset, net of valuation allowance	30,829	26,227
Intangible assets, net	189,829	175,792
Goodwill	1,838	1,838
Total Assets	370,469	322,864
Current Liabilities
Accounts payable	5,821	3,389
Accrued expenses and other	2,741	927
Accrued royalties	11,741	11,956
Accrued compensation and related expenses	2,009	1,631
Current income taxes payable	0	2,398
Accrued government rebates	5,755	5,891
Returned goods reserve	8,317	5,756
Total Current Liabilities	36,384	31,948
Long-term Liabilities
Long-term royalties	0	625
Borrowings on line of credit	25,000	0
Convertible notes, net of discount and deferred financing costs	126,284	120,643
Total Liabilities	187,668	153,216
Commitments and Contingencies (Note 11)
Stockholders' Equity
Common stock, $0.0001 par value, 33,333,334 shares authorized; 11,648,242 shares issued and 11,643,039 shares outstanding at September 30, 2017; 11,588,701 shares issued and outstanding at December 31, 2016	1	1
Class C special stock, $0.0001 par value, 781,281 shares authorized; 10,864 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	0	0
Preferred stock, $0.0001 par value, 1,666,667 shares authorized; 0 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	0	0
Treasury stock, 5,203 shares of common stock, at cost, at September 30, 2017, 0 shares of common stock at December 31, 2016	(259)	0
Additional paid-in capital	177,436	172,563
Retained earnings/(Accumulated deficit)	5,623	(2,916)
Total Stockholders' Equity	182,801	169,648
Total Liabilities and Stockholders' Equity	$ 370,469	$ 322,864

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets [Parenthetical] - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Adjustments for chargebacks and other allowances	$ 32,463	$ 31,535
Preferred Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	1,666,667	1,666,667
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Treasury Stock, Common, Shares	5,203	0
Common Stock [Member]
Common Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Authorized Shares	33,333,334	33,333,334
Common Stock, Issued Shares	11,648,242	11,588,701
Common Stock, Outstanding Shares	11,643,039	11,588,701
Class C Special Stock [Member]
Common Stock, Par Value (in dollars per share)	$ 0.0001	$ 0.0001
Common Stock, Authorized Shares	781,281	781,281
Common Stock, Issued Shares	10,864	10,864
Common Stock, Outstanding Shares	10,864	10,864

Condensed Consolidated Statemen

Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net Revenues	$ 48,164	$ 38,525	$ 129,556	$ 90,417
Operating Expenses:
Cost of sales (excluding depreciation and amortization)	21,078	16,669	58,586	31,874
Research and development	2,634	1,041	6,419	2,771
Selling, general, and administrative	8,022	6,928	22,695	20,460
Depreciation and amortization	7,099	5,966	20,906	16,531
Total Operating Expenses	38,833	30,604	108,606	71,636
Operating Income	9,331	7,921	20,950	18,781
Other Expense, net
Interest expense, net	(3,052)	(2,856)	(9,009)	(8,468)
Other income/(expense), net	95	(21)	58	(31)
Income Before Provision for Income Taxes	6,374	5,044	11,999	10,282
Provision for income taxes	(1,654)	(2,501)	(3,446)	(5,268)
Net Income	$ 4,720	$ 2,543	$ 8,553	$ 5,014
Basic and Diluted Earnings Per Share:
Basic Earnings Per Share (in dollars per share)	$ 0.41	$ 0.22	$ 0.74	$ 0.44
Diluted Earnings Per Share (in dollars per share)	$ 0.40	$ 0.22	$ 0.73	$ 0.43
Basic Weighted-Average Shares Outstanding (in shares)	11,553	11,465	11,542	11,421
Diluted Weighted-Average Shares Outstanding (in shares)	11,677	11,625	11,666	11,552

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows From Operating Activities
Net income	$ 8,553	$ 5,014
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities:
Stock-based compensation	4,668	4,687
Deferred taxes	(4,602)	(1,084)
Depreciation and amortization	20,906	16,531
Non-cash interest relating to convertible notes and loan cost amortization	5,723	5,421
Changes in operating assets and liabilities:
Accounts receivable, net	(16,279)	(25,545)
Inventories, net	4,605	(4,016)
Prepaid expenses and other current assets	(1,365)	(623)
Accounts payable	2,078	2,562
Accrued royalties	(840)	6,082
Accrued compensation and related expenses	378	238
Current income taxes, net	(4,450)	198
Accrued government rebates	(136)	1,820
Returned goods reserve	2,561	1,451
Accrued expenses and other	1,814	2,654
Net Cash and Cash Equivalents Provided by Operating Activities	23,614	15,390
Cash Flows From Investing Activities
Acquisition of product rights and other related assets	(50,956)	(144,494)
Acquisition of property and equipment	(6,922)	(3,177)
Net Cash and Cash Equivalents Used in Investing Activities	(57,878)	(147,671)
Cash Flows From Financing Activities
Payment of debt issuance costs	0	(294)
Net borrowings under line of credit agreement	25,000	0
Proceeds from stock option exercises	191	1,362
Excess tax benefit from share-based compensation awards	0	307
Repurchase of common stock under the stock repurchase program	0	(2,500)
Treasury stock purchases for restricted stock vestings and forfeitures	(259)	(122)
Net Cash and Cash Equivalents Provided by/(Used in) Financing Activities	24,932	(1,247)
Change in Cash, Cash Equivalents, and Restricted Cash	(9,332)	(133,528)
Cash, cash equivalents, and restricted cash, beginning of period	32,367	154,684
Cash, cash equivalents, and restricted cash, end of period	23,035	21,156
Reconciliation of cash, cash equivalents, and restricted cash, beginning of period
Cash and cash equivalents	27,365	154,684
Restricted cash	5,002	0
Cash, cash equivalents, and restricted cash, beginning of period	32,367	154,684
Reconciliation of cash, cash equivalents, and restricted cash, end of period
Cash and cash equivalents	18,031	16,155
Restricted cash	5,004	5,001
Cash, cash equivalents, and restricted cash, end of period	23,035	21,156
Supplemental disclosure for cash flow information:
Cash paid for interest, net of amounts capitalized	2,197	2,056
Cash paid for income taxes, net	12,493	5,847
Supplemental non-cash investing and financing activities:
Accrued royalties related to asset purchase	0	3,882
Property and equipment purchased and included in accounts payable	$ 354	$ 102

BUSINESS, PRESENTATION, AND REC

BUSINESS, PRESENTATION, AND RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
BUSINESS, PRESENTATION, AND RECENT ACCOUNTING PRONOUNCEMENTS	1. BUSINESS, PRESENTATION, AND RECENT ACCOUNTING PRONOUNCEMENTS Overview ANI Pharmaceuticals, Inc. and its consolidated subsidiaries (together, “ANI,” the “Company,” “we,” “us,” or “our”) is an integrated specialty pharmaceutical company focused on delivering value to our customers by developing, manufacturing, and marketing high quality branded and generic prescription pharmaceuticals. We focus on niche and high barrier to entry opportunities including controlled substances, anti-cancer (oncolytics), hormones and steroids, and complex formulations. Our two pharmaceutical manufacturing facilities located in Baudette, Minnesota are capable of producing oral solid dose products, as well as liquids and topicals, controlled substances, and potent products that must be manufactured in a fully-contained environment. Our strategy is to use our assets to develop, acquire, manufacture, and market branded and generic specialty prescription pharmaceuticals. By executing this strategy, we believe we will be able to continue to grow our business, expand and diversify our product portfolio, and create long-term value for our investors. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In our opinion, the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position, results of operations, and cash flows. The consolidated balance sheet at December 31, 2016, has been derived from audited financial statements of that date. The unaudited interim condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules, and regulations prescribed by the United States Securities and Exchange Commission. We believe that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in conjunction with the audited financial statements and notes previously distributed in our Annual Report on Form 10-K for the year ended December 31, 2016. Certain prior period information has been reclassified to conform to the current period presentation. Please see Recently Adopted Accounting Pronouncements. The unaudited interim condensed consolidated financial statements include the accounts of ANI Pharmaceuticals, Inc. and its subsidiaries. All inter-company accounts and transactions are eliminated in consolidation. The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. In the accompanying unaudited interim condensed consolidated financial statements, estimates are used for, but not limited to, stock-based compensation, allowance for doubtful accounts, accruals for chargebacks, administrative fees and rebates, government rebates, returns and other allowances, allowance for inventory obsolescence, valuation of financial instruments and intangible assets, accruals for contingent liabilities, fair value of long-lived assets, deferred taxes and valuation allowance, purchase price allocations, and the depreciable lives of long-lived assets. Because of the uncertainties inherent in such estimates, actual results may differ from those estimates. Management periodically evaluates estimates used in the preparation of the financial statements for reasonableness. Recent Accounting Pronouncements Not Yet Adopted In May 2017, the Financial Accounting Standards Board (“FASB”) issued guidance clarifying when modification accounting should be used for changes to the terms or conditions of a share-based payment award. The guidance does not change the accounting for modifications, but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The guidance is effective for the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The guidance must be adopted on a prospective basis. In June 2016, the FASB issued guidance with respect to measuring credit losses on financial instruments, including trade receivables. The guidance eliminates the probable initial recognition threshold that was previously required prior to recognizing a credit loss on financial instruments. The credit loss estimate can now reflect an entity's current estimate of all future expected credit losses. Under the previous guidance, an entity only considered past events and current conditions. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of certain amendments of this guidance must be applied on a modified retrospective basis and the adoption of the remaining amendments must be applied on a prospective basis. We currently expect that the adoption of this guidance will likely change the way we assess the collectability of our receivables and recoverability of other financial instruments. We have not yet begun to evaluate the specific impacts of this guidance nor have we determined the manner in which we will adopt this guidance. In February 2016, the FASB issued guidance for accounting for leases. The guidance requires lessees to recognize assets and liabilities related to long-term leases on the balance sheet and expands disclosure requirements regarding leasing arrangements. The guidance is effective for reporting periods beginning after December 15, 2018 and early adoption is permitted. The guidance must be adopted on a modified retrospective basis and provides for certain practical expedients. We are currently evaluating the impact that the adoption of this guidance will have on our consolidated financial statements. We currently expect that the adoption of this guidance will likely change the way we account for our operating leases and will likely result in recording the future benefits of those leases and the related minimum lease payments on our consolidated balance sheets. We have not yet begun to evaluate the specific impacts of this guidance. In May 2014, the FASB issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue arising from contracts with customers. In August 2015, the FASB issued guidance approving a one-year deferral, making the standard effective for reporting periods beginning after December 15, 2017, with early adoption permitted only for reporting periods beginning after December 15, 2016. In March 2016, the FASB issued guidance to clarify the implementation guidance on principal versus agent considerations for reporting revenue gross rather than net, with the same deferred effective date. In April 2016, the FASB issued guidance to clarify the implementation guidance on identifying performance obligations and the accounting for licenses of intellectual property, with the same deferred effective date. In May 2016, the FASB issued guidance rescinding SEC paragraphs related to revenue recognition, pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting. In May 2016, the FASB also issued guidance to clarify the implementation guidance on assessing collectability, presentation of sales tax, noncash consideration, and contracts and contract modifications at transition, with the same effective date. In September 2017, the FASB issued guidance amending and rescinding prior SEC staff announcements and observer comments related to revenue recognition, pursuant to the SEC Staff Announcement at the July 20, 2017 Emerging Issues Task Force meeting. We will adopt this guidance as of January 1, 2018. We are currently undertaking a comprehensive review of our contracts with customers to determine the impact of this standard on our revenue recognition. While we currently expect that the adoption of this guidance will change the way we analyze, document, and disclose revenue recognition under customer contracts, based upon our analysis to date, we do not currently anticipate the adoption of this guidance to have a material effect on our consolidated financial statements. It is important to note that our work on this is ongoing and our final assessment is not yet complete. We have not yet determined the manner in which we will adopt this guidance. We have evaluated all other issued and unadopted Accounting Standards Updates and believe the adoption of these standards will not have a material impact on our condensed consolidated statements of earnings, balance sheets, or cash flows. Recently Adopted Accounting Pronouncements In January 2017, the FASB issued guidance to simplify the measurement of goodwill. The guidance eliminates Step 2 from the goodwill impairment test. Instead, under the amendments in this guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The guidance also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted for interim or annual goodwill impairment tests performed for testing dates after January 1, 2017. We adopted this guidance in the first quarter of 2017, effective as of January 1, 2017, on a prospective basis. The adoption of this new guidance did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued guidance clarifying the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities is not a business, provides a framework to assist entities in evaluating whether both an input and substantive process are present, and narrows the definition of the term output. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The guidance must be adopted on a prospective basis. We adopted this guidance in the first quarter of 2017, effective as of January 1, 2017, on a prospective basis. The adoption of this new guidance did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued guidance to reduce diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The revised guidance requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The guidance was effective for the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption was permitted, including adoption in an interim period. If an entity adopted the guidance in an interim period, any adjustments should have been reflected as of the beginning of the fiscal year that includes that interim period. The guidance must be adopted on a retrospective basis. We adopted this guidance in the first quarter of 2017, effective as of January 1, 2017, on a retrospective basis, and all periods have been presented under this guidance. The adoption of this new guidance resulted in the inclusion of our $ 5.0 In August 2016, the FASB issued guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including those related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance, and distributions received from equity method investees. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity adopts the guidance in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The guidance must be adopted on a retrospective basis and must be applied to all periods presented, but may be applied prospectively if retrospective application would be impracticable. We adopted this guidance in the first quarter of 2017, effective as of January 1, 2017, on a retrospective basis. The adoption of this new guidance did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued guidance simplifying the accounting for and financial statement disclosure of stock-based compensation awards, consisting of changes in the accounting for excess tax benefits and tax deficiencies, and changes in the accounting for forfeitures associated with share-based awards, among other things. We adopted this guidance in the first quarter of 2017, effective as of January 1, 2017. Pursuant to the adoption requirements for excess tax benefits and tax deficiencies, we no longer recognize excess tax benefits or tax deficiencies in Additional Paid in Capital (“APIC”); rather, we recognize them prospectively as a component of our current period provision/(benefit) before income taxes. We did not reverse our current APIC pool, which was $ 3.1 14

REVENUE RECOGNITION AND RELATED

REVENUE RECOGNITION AND RELATED ALLOWANCES	9 Months Ended
	Sep. 30, 2017
Revenue Recognition [Abstract]
REVENUE RECOGNITION AND RELATED ALLOWANCES	REVENUE RECOGNITION AND RELATED ALLOWANCES Revenue Recognition Revenue is recognized for product sales and contract manufacturing product sales upon passing of risk and title to the customer, when estimates of the selling price and discounts, rebates, promotional adjustments, price adjustments, returns, chargebacks, and other potential adjustments are reasonably determinable, collection is reasonably assured, and we have no further performance obligations. Contract manufacturing arrangements are typically less than two weeks in duration, and therefore the revenue is recognized upon completion of the aforementioned factors rather than using a proportional performance method of revenue recognition. The estimates for discounts, rebates, promotional adjustments, price adjustments, returns, chargebacks, and other potential adjustments reduce gross revenues to net revenues in the accompanying unaudited interim condensed consolidated statements of earnings, and are presented as current liabilities or reductions in accounts receivable in the accompanying unaudited interim condensed consolidated balance sheets (see “Accruals for Chargebacks, Rebates, Returns, and Other Allowances”). Historically, we have not entered into revenue arrangements with multiple elements. We record revenue related to marketing and distribution agreements with third parties in which we sell products under Abbreviated New Drug Applications (“ANDAs”) or New Drug Applications (“NDAs”) owned or licensed by these third parties. We have assessed and determined that we are the principal for sales under each of these marketing and distribution agreements and recognize the revenue on a gross basis when risk and title are passed to the customer, when estimates of the selling price and discounts, rebates, promotional adjustments, price adjustments, returns, chargebacks, and other potential adjustments are reasonably determinable, collection is reasonably assured, and we have no further performance obligations. Under these agreements, we pay these third parties a specified percentage of the gross profit earned on sales of the products. These profit-sharing percentages are recognized in cost of sales in our consolidated statements of earnings and are accrued in accrued royalties in our consolidated balance sheets until payment has occurred. Occasionally, we engage in contract services, which include product development services, laboratory services, and royalties on net sales of certain contract manufactured products. For these services, revenue is recognized according to the terms of the agreement with the customer, which sometimes include substantive, measurable risk-based milestones, and when we have a contractual right to receive such payment, the contract price is fixed or determinable, the collection of the resulting receivable is reasonably assured, and we have no further performance obligations under the agreement. Accruals for Chargebacks, Rebates, Returns, and Other Allowances Our generic and branded product revenues are typically subject to agreements with customers allowing chargebacks, government rebates, product returns, administrative fees and other rebates, and prompt payment discounts. We accrue for these items at the time of sale and continually monitor and re-evaluate the accruals as additional information becomes available. We adjust the accruals at the end of each reporting period, to reflect any such updates to the relevant facts and circumstances. Accruals are relieved upon receipt of payment from the customer or upon issuance of credit to the customer. Accruals for Chargebacks, Rebates, Returns, and Other Allowances (in thousands) Chargebacks Government Returns Administrative Prompt Balance at December 31, 2015 $ 11,381 $ 4,631 $ 2,648 $ 1,653 $ 674 Accruals/Adjustments 74,373 8,013 5,840 8,559 3,743 Credits Taken Against Reserve (67,449) (6,193) (4,389) (7,225) (3,023) Balance at September 30, 2016 $ 18,305 $ 6,451 $ 4,099 $ 2,987 $ 1,394 Balance at December 31, 2016 $ 26,785 $ 5,891 $ 5,756 $ 3,550 $ 1,554 Accruals/Adjustments 133,849 7,807 8,949 16,840 5,960 Credits Taken Against Reserve (134,412) (7,943) (6,388) (15,448) (5,617) Balance at September 30, 2017 $ 26,222 $ 5,755 $ 8,317 $ 4,942 $ 1,897 Credit Concentration Our customers are primarily wholesale distributors, chain drug stores, group purchasing organizations, and pharmaceutical companies. During the three months ended September 30, 2017, three customers represented 30 30 19 31 26 21 81 31 18 17 27 21 17

INDEBTEDNESS

INDEBTEDNESS	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
INDEBTEDNESS	3. INDEBTEDNESS Convertible Senior Notes In December 2014, we issued $ 143.8 3.0 69.48 96.21 The Notes are convertible at the option of the holder under certain circumstances and upon conversion we may elect to settle such conversion in shares of our common stock, cash, or a combination thereof. As a result of our cash conversion option, we separately accounted for the value of the embedded conversion option as a debt discount (with an offset to APIC) of $ 33.6 (in thousands) September 30, December 31, Principal amount $ 143,750 $ 143,750 Unamortized debt discount (15,637) (20,644) Deferred financing costs (1,829) (2,463) Net carrying value $ 126,284 $ 120,643 We had accrued interest of $ 1.4 0.4 Three Months Ended Nine Months Ended (in thousands) September 30, September 30, September 30, September 30, Contractual coupon $ 1,078 $ 1,078 $ 3,234 $ 3,234 Amortization of debt discount 1,692 1,604 5,007 4,748 Amortization of finance fees 211 211 633 633 Capitalized interest (143) (58) (367) (159) $ 2,838 $ 2,835 $ 8,507 $ 8,456 As of September 30, 2017, the effective interest rate on the Notes was 7.9 Line of Credit In May 2016, we entered into a credit arrangement (the “Line of Credit”) with Citizens Bank Capital, a division of Citizens Asset Finance, Inc. (the “Citizens Agreement”). The Citizens Agreement provides for a $ 30.0 10.0 May 12, 2019 LIBOR rate plus 1.25%, 1.50%, or 1.75% per annum, depending upon availability under the Citizens Agreement, or an alternative base rate plus either 0.25%, 0.50%, or 0.75% per annum, 0.25 In February 2017, we drew down $ 30.0 40.0 5.0 25.0 0.3 0.2 0.2 0.5

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE	4. EARNINGS PER SHARE Basic earnings per share is computed by dividing net income available to common shareholders by the weighted-average number of shares of common stock outstanding during the period. For periods of net income, and when the effects are not anti-dilutive, we calculate diluted earnings per share by dividing net income available to common shareholders by the weighted-average number of shares outstanding plus the impact of all potential dilutive common shares, consisting primarily of common stock options, shares to be purchased under our Employee Stock Purchase Plan (“ESPP”), unvested restricted stock awards, stock purchase warrants, and any conversion gain on our Notes (Note 3), using the treasury stock method. For periods of net loss, diluted loss per share is calculated similarly to basic loss per share. Our unvested restricted shares contain non-forfeitable rights to dividends, and therefore are considered to be participating securities; in periods of net income, the calculation of basic and diluted earnings per share excludes from the numerator net income attributable to the unvested restricted shares, and excludes the impact of those shares from the denominator. For purposes of determining diluted earnings per share, we have elected a policy to assume that the principal portion of the Notes (Note 3) is settled in cash. As such, the principal portion of the Notes has no effect on either the numerator or denominator when determining diluted earnings per share. Any conversion gain is assumed to be settled in shares and is incorporated in diluted earnings per share using the treasury method. The warrants issued in conjunction with the issuance of the Notes (Note 3) are considered to be dilutive when they are in-the-money relative to our average stock price during the period; the bond hedge purchased in conjunction with the issuance of the Notes is always considered to be anti-dilutive. Basic Diluted Basic Diluted Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (in thousands, except per share amounts) 2017 2016 2017 2016 2017 2016 2017 2016 Net income $ 4,720 $ 2,543 $ 4,720 $ 2,543 $ 8,553 $ 5,014 $ 8,553 $ 5,014 Net income allocated to restricted stock (35) (17) (35) (17) (64) (34) (64) (34) Net income allocated to common shares $ 4,685 $ 2,526 $ 4,685 $ 2,526 $ 8,489 $ 4,980 $ 8,489 $ 4,980 Basic Weighted-Average Shares Outstanding 11,553 11,465 11,553 11,465 11,542 11,421 11,542 11,421 Dilutive effect of stock options and ESPP 124 160 124 131 Diluted Weighted-Average Shares Outstanding 11,677 11,625 11,666 11,552 Earnings Per Share $ 0.41 $ 0.22 $ 0.40 $ 0.22 $ 0.74 $ 0.44 $ 0.73 $ 0.43 The number of anti-dilutive shares, which have been excluded from the computation of diluted earnings per share, including the shares underlying the Notes, was 4.8 4.5 4.7 4.5

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
INVENTORIES	5. INVENTORIES (in thousands) September 30, December 31, Raw materials $ 17,807 $ 14,138 Packaging materials 1,362 930 Work-in-progress 915 477 Finished goods (1) 18,865 10,812 38,949 26,357 Reserve for excess/obsolete inventories (471) (174) Inventories, net $ 38,478 $ 26,183 (1) Vendor Concentration We source the raw materials for our products, including active pharmaceutical ingredients (“API”), from both domestic and international suppliers. Generally, only a single source of API is qualified for use in each product due to the cost and time required to validate a second source of supply. As a result, we are dependent upon our current vendors to reliably supply the API required for ongoing product manufacturing. During the three months ended September 30, 2017, we purchased approximately 40 1.8 24 0.8 28 23

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT, AND EQUIPMENT	6. PROPERTY, PLANT, AND EQUIPMENT (in thousands) September 30, December 31, Land $ 160 $ 160 Buildings 3,781 3,756 Machinery, furniture, and equipment 11,687 8,176 Construction in progress 8,033 4,293 23,661 16,385 Less: accumulated depreciation (6,274) (5,387) Property, Plant, and Equipment, net $ 17,387 $ 10,998 Depreciation expense was $ 0.3 0.2 0.9 0.7 0.1 58 0.4 0.2

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND INTANGIBLE ASSETS	7. GOODWILL AND INTANGIBLE ASSETS Goodwill As a result of our 2013 merger with BioSante Pharmaceuticals, Inc. (“BioSante”), we recorded goodwill of $ 1.8 Goodwill Accounting Policy Goodwill represents the excess of the total purchase consideration over the fair value of acquired assets and assumed liabilities, using the purchase method of accounting. Goodwill is not amortized, but is subject to periodic review for impairment. We assess the recoverability of the carrying value of goodwill as of October 31st, of each year, and whenever events occur or circumstances change that would, more likely than not, reduce the fair value of our reporting unit below its carrying value. Before employing detailed impairment testing methodologies, we first evaluate the likelihood of impairment by considering qualitative factors relevant to our reporting unit. When performing the qualitative assessment, we evaluate events and circumstances that would affect the significant inputs used to determine the fair value of the goodwill. Events and circumstances evaluated include: macroeconomic conditions that could affect us, industry and market considerations for the generic pharmaceutical industry that could affect us, cost factors that could affect our performance, our financial performance (including share price), and consideration of any company-specific events that could negatively affect us, our business, or the fair value of our business. If we determine that it is more likely than not that goodwill is impaired, we will then apply detailed testing methodologies. Otherwise, we will conclude that no impairment has occurred. Detailed impairment testing involves comparing the fair value of our one reporting unit to its carrying value, including goodwill. Fair value reflects the price a market participant would be willing to pay in a potential sale of ANI. If the fair value exceeds carrying value, then it is concluded that no goodwill impairment has occurred. If the carrying value of the reporting unit exceeds its fair value, an impairment loss will be recorded, measured as the difference between the excess of the carrying value of the reporting unit over its fair value, not to exceed the total amount of goodwill allocated to that reporting unit. There have been no events or changes in circumstances that would have reduced the fair value of our reporting unit below its carrying value during nine months ended September 30, 2017. No impairment losses were recognized during the three or nine months ended September 30, 2017 or 2016. Definite-lived Intangible Assets Acquisition of New Drug Applications and Product Rights In February 2017, we entered into an agreement with Cranford Pharmaceuticals, LLC to purchase a distribution license, trademark, and certain finished goods inventory for Inderal XL for $ 20.2 40 15.1 10 In February 2017, we entered into an agreement with Holmdel Pharmaceuticals, LP to purchase the NDA, trademark, and certain finished goods inventory for InnoPran XL, including a license to an Orange Book listed patent, for $ 30.6 30.0 0.6 0.1 19.0 10 In April 2016, we purchased the rights, title, and interest in the NDA for Inderal LA, as well as certain documentation, trademark rights, and finished goods from Cranford Pharmaceuticals, LLC for $ 60.0 0.3 3.9 64.2 52.4 10 0.6 In September 2015, we entered into an agreement to purchase the NDAs for Cortrophin gel Cortrophin 75.0 0.3 75.3 10 Marketing and Distribution Rights In January 2016, we purchased from H2-Pharma, LLC the rights to market, sell, and distribute the authorized generic of Lipofen® and a generic hydrocortisone rectal cream product, along with the rights to an early-stage development project, for total consideration of $ 10.0 8.8 1.2 42 September 30, 2017 December 31, 2016 Weighted Average (in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Amortization Acquired ANDA intangible assets $ 42,076 $ (11,541) $ 42,076 $ (8,390) 10.0 years NDAs and product rights 184,306 (31,975) 150,250 (17,081) 10.0 years Marketing and distribution rights 11,042 (4,569) 11,042 (2,662) 4.7 years Non-compete agreement 624 (134) 624 (67) 7.0 years $ 238,048 $ (48,219) $ 203,992 $ (28,200) Definite-lived intangible assets are stated at cost, net of amortization, generally using the straight line method over the expected useful lives of the intangible assets. In the case of the Inderal XL and InnoPran XL asset purchases, because we anticipate that the acquired assets will provide a greater economic benefit in the earlier years, we are amortizing 80% of the value of the intangible assets over the first five years of useful lives of the assets and amortizing the remaining 20% of the value of the intangible assets over the second five years of useful lives of the assets. 6.8 5.7 20.0 15.8 We test for impairment of definite-lived intangible assets when events or circumstances indicate that the carrying value of the assets may not be recoverable. No such triggering events were identified during the three and nine months ended September 30, 2017 and 2016 and therefore no impairment loss was recognized in the three and nine months ended September 30, 2017 or 2016. (in thousands) 2017 (remainder of the year) $ 6,707 2018 26,825 2019 26,825 2020 26,343 2021 24,898 2022 and thereafter 78,231 Total $ 189,829

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION	8. STOCK-BASED COMPENSATION In July 2016, we commenced administration of the ANI Pharmaceuticals, Inc. 2016 Employee Stock Purchase Plan. As of September 30, 2017, we have 0.2 15 1 5 11 50 1 11 All equity-based service awards are granted under the ANI Pharmaceuticals, Inc. Fifth Amended and Restated 2008 Stock Incentive Plan (the “2008 Plan”), which was approved by shareholders at the May 17, 2017 annual meeting. The approved 2008 Plan provided for an increase of 0.8 0.8 Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Cost of sales $ 19 $ 23 $ 68 $ 37 Research and development 173 25 485 74 Selling, general, and adminstrative 1,270 1,305 4,059 4,564 $ 1,462 $ 1,353 $ 4,612 $ 4,675 (in thousands) Options RSAs Outstanding December 31, 2015 474 63 Granted 293 42 Options Exercised/RSAs Vested (120) (15) Forfeited (59) (12) Outstanding September 30, 2016 588 78 Outstanding December 31, 2016 578 63 Granted 192 50 Options Exercised/RSAs Vested (7) (27) (1) Forfeited (3) - Outstanding September 30, 2017 760 86 (1) 259

STOCKHOLDER_S EQUITY

STOCKHOLDER’S EQUITY	9 Months Ended
	Sep. 30, 2017
Stockholders Equity Note [Abstract]
STOCKHOLDER’S EQUITY	9. STOCKHOLDER’S EQUITY Stock Repurchase Program In October 2015, our Board of Directors authorized a program to repurchase up to $ 25.0 In January 2016, we purchased 65 2.5

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES We use the asset and liability method of accounting for income taxes. Deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that are expected to be in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted. The measurement of a deferred tax asset is reduced, if necessary, by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The utilization of our NOL carryforwards will be limited in future years as prescribed by Section 382 of the U.S. Internal Revenue Code. As of both September 30, 2017 and December 31, 2016, we had provided a valuation allowance against certain state net operating loss (“NOL”) carryforwards of $ 0.3 We use a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return, as well as guidance on derecognition, classification, interest and penalties, and financial statement reporting disclosures. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. We have not identified any uncertain income tax positions that could have a material impact on the consolidated financial statements. We recognize interest and penalties accrued on any unrecognized tax exposures as a component of income tax expense; we did not have any such amounts accrued as of September 30, 2017 and December 31, 2016. We are subject to taxation in various jurisdictions and all of our income tax returns remain subject to examination by tax authorities due to the availability of NOL carryforwards. For interim periods, we recognize an income tax provision/(benefit) based on our estimated annual effective tax rate expected for the entire year. The interim annual estimated effective tax rate is based on the statutory tax rates then in effect, as adjusted for estimated changes in temporary and estimated permanent differences, and excludes certain discrete items whose tax effect, when material, is recognized in the interim period in which they occur. These changes in temporary differences, permanent differences, and discrete items result in variances to the effective tax rate from period to period. We also have elected to exclude the impacts from significant pre-tax non-recognized subsequent events from our interim estimated annual effective rate until the period in which they occur. Our estimated annual effective tax rate changes throughout the year as our on-going estimates of pre-tax income, changes in temporary differences, and permanent differences are revised, and as material discrete items occur. The effective tax rate for the three months ended September 30, 2017 was 25.9 The effective tax rate for the three months ended September 30, 2016 was 49.6 of pre-tax income reported in the period, calculated based on the estimated annual effective rate anticipated related to our former international tax structure surrounding our Cortrophin NDAs, resulted in significant non-deductible amortization and interest expense The effective tax rate for the nine months ended September 30, 2017 was 28.7 The effective tax rate for the nine months ended September 30, 2016 was 51.2 of pre-tax income reported in the period, calculated based on the estimated annual effective rate anticipated Cortrophin

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	11. COMMITMENTS AND CONTINGENCIES Government Regulation Our products and facilities are subject to regulation by a number of federal and state governmental agencies. The FDA, in particular, maintains oversight of the formulation, manufacture, distribution, packaging, and labeling of all of our products. The Drug Enforcement Administration (“DEA”) maintains oversight over our products that are controlled substances. Unapproved Products Two of our products, Esterified Estrogen with Methyltestosterone (“EEMT”) and Opium Tincture, are marketed without approved NDAs or ANDAs. During the three months ended September 30, 2017 and 2016, net revenues for these products totaled $ 7.9 8.6 20.9 26.6 The FDA's policy with respect to the continued marketing of unapproved products is stated in the FDA's September 2011 Compliance Policy Guide Sec. 440.100 titled “Marketed New Drugs without Approved NDAs or ANDAs.” Under this policy, the FDA has stated that it will follow a risk-based approach with regard to enforcement against such unapproved products. The FDA evaluates whether to initiate enforcement action on a case-by-case basis, but gives higher priority to enforcement action against products in certain categories, such as those marketed as unapproved drugs with potential safety risks or that lack evidence of effectiveness. We believe that, so long as we comply with applicable manufacturing standards, the FDA will not take action against us under the current enforcement policy. There can be no assurance, however, that the FDA will continue this policy or not take a contrary position with any individual product or group of products. If the FDA were to take a contrary position, we may be required to seek FDA approval for these products or withdraw such products from the market. If we decide to withdraw the products from the market, our net revenues for generic pharmaceutical products would decline materially, and if we decide to seek FDA approval, we would face increased expenses and might need to suspend sales of the products until such approval was obtained, and there are no assurances that we would receive such approval. In addition, one group of products that we manufacture on behalf of a contract customer is marketed by that customer without an approved NDA. If the FDA took enforcement action against such customer, the customer may be required to seek FDA approval for the group of products or withdraw them from the market. Our contract manufacturing revenues for these unapproved products for the three months ended September 30, 2017 and 2016 were $ 0.6 0.3 1.5 1.1 We receive royalties on the net sales of a group of contract-manufactured products, which are marketed by the contract customer without an approved NDA. If the FDA took enforcement action against such customer, the customer may be required to seek FDA approval for the group of products or withdraw them from the market. Our royalties on the net sales of these unapproved products for the three and nine months ended September 30, 2017 and 2016 were less than 1% Louisiana Medicaid Lawsuit On September 11, 2013, the Attorney General of the State of Louisiana filed a lawsuit in Louisiana state court against numerous pharmaceutical companies, including us, under various state laws, alleging that each defendant caused the state’s Medicaid agency to provide reimbursement for drug products that allegedly were not approved by the FDA and therefore allegedly not reimbursable under the federal Medicaid program. The lawsuit relates to three cough and cold prescription products manufactured and sold by our former Gulfport, Mississippi operation, which was sold in September 2010. Through its lawsuit, the state seeks unspecified damages, statutory fines, penalties, attorneys’ fees, and costs. While we cannot predict the outcome of the lawsuit at this time, we could be subject to material damages, penalties, and fines. We intend to vigorously defend against all claims in the lawsuit. Federal Investigation On or about September 20, 2017, the Company and certain of its employees were served with search warrants and/or grand jury subpoenas to produce documents and possibly testify relating to a federal investigation of the generic pharmaceutical industry. The Company has been cooperating and intends to continue cooperating with the investigation. However, no assurance can be given as to the timing or outcome of the investigation. Other Commitments and Contingencies All manufacturers of the drug Reglan and its generic equivalent metoclopramide, including ANI, have faced allegations from plaintiffs in various states, including California, New Jersey, and Pennsylvania, claiming bodily injuries as a result of ingestion of metoclopramide or its brand name, Reglan, prior to the FDA's February 2009 Black Box warning requirement. In August 2012, we were dismissed with prejudice from all New Jersey cases. In August 2016, we settled the outstanding California cases. We consider our exposure to this litigation to be limited due to several factors: (1) the only generic metoclopramide that we manufactured prior to the implementation of the FDA's warning requirement was an oral solution introduced after May 28, 2008; (2) our market share for the oral solution was a very small portion of the overall metoclopramide market; and (3) once we received a request for change of labeling from the FDA, we submitted our proposed changes within 30 days, and such changes were subsequently approved by the FDA. At the present time, we are unable to assess the likely outcome of the cases in the remaining states. Our insurance company has assumed the defense of this matter and paid all losses in settlement of the California cases. We cannot provide assurances that the outcome of these matters will not have an adverse effect on our business, financial condition, and operating results. Furthermore, like all pharmaceutical manufacturers, we may be exposed to other product liability claims in the future, which could limit our coverage under future insurance policies or cause those policies to become more expensive, which could harm our business, financial condition, and operating results. We launched Erythromycin Ethylsuccinate (“EES”) on September 27, 2016 under a previously approved ANDA. In August 2016, we filed with the FDA to reintroduce this product under a Changes Being Effected in 30 Days submission (a “CBE-30 submission”). Under a CBE-30 submission, certain defined changes to an ANDA can be made if the FDA does not object in writing within 30 days. The FDA’s regulations, guidance documents, and historic actions support the filing of a CBE-30 for the types of changes that we proposed for our EES ANDA. We received no formal written letter from the FDA within 30 days of the CBE-30 submission date, and as such, launched the product in accordance with FDA regulations. On December 16, 2016, and nearly four months after our CBE-30 submission, the FDA sent us a formal written notice that a Prior Approval Supplement (“PAS”) was required for this ANDA. Under a PAS, proposed changes to an ANDA cannot be implemented without prior review and approval by the FDA. Because we did not receive this notice in the timeframe prescribed by the FDA’s regulations, we believe that our supplemental ANDA is valid, and as such continue to market the product. In addition, we filed a PAS which was accepted by the FDA and was originally assigned action date of June 2017. This date was later revised to October 2017 due to the election by the FDA to perform a Pre-Approval Inspection (“PAI”) of our Baudette manufacturing facilities. The FDA conducted its PAI between May 15, 2017 and May 18, 2017. On July 31, 2017, we received an Establishment Inspection Report from the FDA documenting that no objectionable conditions resulted from the inspection and that no FDA-483 or verbal observations were issued. On September 21, 2017, we received a Major CR Letter (Complete Response Letter). We are currently in the process of responding to the letter.

FAIR VALUE DISCLOSURES

FAIR VALUE DISCLOSURES	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE DISCLOSURES	12. FAIR VALUE DISCLOSURES Fair value is the price that would be received from the sale of an asset or paid to transfer a liability assuming an orderly transaction in the most advantageous market at the measurement date. U.S. GAAP establishes a hierarchical disclosure framework that prioritizes and ranks the level of observability of inputs used in measuring fair value. The inputs used in measuring the fair value of cash and cash equivalents are considered to be level 1 in accordance with the three-tier fair value hierarchy. The fair market values are based on period-end statements supplied by the various banks and brokers that held the majority of our funds. The fair value of short-term financial instruments (primarily accounts receivable, prepaid expenses, accounts payable, accrued expenses, and other current liabilities) approximate their carrying values because of their short-term nature. The fair value of borrowings on our line of credit also approximate their carrying value. While our Notes are recorded on our accompanying unaudited interim condensed consolidated balance sheets at their net carrying value of $ 126.3 155.3 Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Our contingent value rights (“CVRs”), which were granted coincident with our merger with BioSante and expire in June 2023, are considered contingent consideration and are classified as liabilities. As such, the CVRs were recorded as purchase consideration at their estimated fair value, using level 3 inputs, and are marked to market each reporting period until settlement. The fair value of CVRs is estimated using the present value of our projection of the expected payments pursuant to the terms of the CVR agreement, which is the primary unobservable input. If our projection or expected payments were to increase substantially, the value of the CVRs could increase as a result. The present value of the liability was calculated using a discount rate of 15 Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We do not have any financial assets and liabilities that are measured at fair value on a non-recurring basis. Non-Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis We do not have any non-financial assets and liabilities that are measured at fair value on a recurring basis. Non-Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis We measure our long-lived assets, including property, plant, and equipment, intangible assets, and goodwill, at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. No such fair value impairment was recognized in the nine months ended September 30, 2017 and 2016. Acquired Non-Financial Assets Measured at Fair Value In February 2017, we entered into an agreement with Cranford Pharmaceuticals, LLC to purchase a distribution license, trademark, and certain finished goods inventory for Inderal XL for $ 20.2 40 15.1 10 10 5.0 In February 2017, we entered into an agreement with Holmdel Pharmaceuticals, LP to purchase the NDA, trademark, and certain finished goods inventory for InnoPran XL, including a license to an Orange Book listed patent, for $ 30.6 30.0 0.6 0.1 19.0 10 10 11.6 In April 2016, we purchased the rights, title, and interest in the NDA for Inderal LA, as well as certain documentation, trademark rights, and finished goods from Cranford Pharmaceuticals, LLC for $ 60.0 5.0 0.3 3.9 64.2 10.9 inventory 12 52.4 10 0.6 10 In January 2016, we purchased from Merck Sharp & Dohme B.V. the NDAs for two previously marketed generic drug products for $ 75.0 0.3 10 10

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	13. SUBSEQUENT EVENT On November 2, 2017, we entered into Change in Control Severance Agreements (the “Severance Agreements”) with each of our current Named Executive Officers (each an NEO, and collectively the "NEOs"). Each of the Severance Agreements designates the payments to be received if an NEO’s employment is terminated under certain conditions following a change in control. Please see Other Information

BUSINESS, PRESENTATION, AND R19

BUSINESS, PRESENTATION, AND RECENT ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In our opinion, the accompanying unaudited interim condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, which are necessary to present fairly our financial position, results of operations, and cash flows. The consolidated balance sheet at December 31, 2016, has been derived from audited financial statements of that date. The unaudited interim condensed consolidated results of operations are not necessarily indicative of the results that may occur for the full fiscal year. Certain information and footnote disclosure normally included in financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to instructions, rules, and regulations prescribed by the United States Securities and Exchange Commission. We believe that the disclosures provided herein are adequate to make the information presented not misleading when these unaudited interim condensed consolidated financial statements are read in conjunction with the audited financial statements and notes previously distributed in our Annual Report on Form 10-K for the year ended December 31, 2016. Certain prior period information has been reclassified to conform to the current period presentation. Please see Recently Adopted Accounting Pronouncements.
Principles of consolidation	Principles of Consolidation The unaudited interim condensed consolidated financial statements include the accounts of ANI Pharmaceuticals, Inc. and its subsidiaries. All inter-company accounts and transactions are eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. In the accompanying unaudited interim condensed consolidated financial statements, estimates are used for, but not limited to, stock-based compensation, allowance for doubtful accounts, accruals for chargebacks, administrative fees and rebates, government rebates, returns and other allowances, allowance for inventory obsolescence, valuation of financial instruments and intangible assets, accruals for contingent liabilities, fair value of long-lived assets, deferred taxes and valuation allowance, purchase price allocations, and the depreciable lives of long-lived assets. Because of the uncertainties inherent in such estimates, actual results may differ from those estimates. Management periodically evaluates estimates used in the preparation of the financial statements for reasonableness.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Recent Accounting Pronouncements Not Yet Adopted In May 2017, the Financial Accounting Standards Board (“FASB”) issued guidance clarifying when modification accounting should be used for changes to the terms or conditions of a share-based payment award. The guidance does not change the accounting for modifications, but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions, or award classification and would not be required if the changes are considered non-substantive. The guidance is effective for the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The guidance must be adopted on a prospective basis. In June 2016, the FASB issued guidance with respect to measuring credit losses on financial instruments, including trade receivables. The guidance eliminates the probable initial recognition threshold that was previously required prior to recognizing a credit loss on financial instruments. The credit loss estimate can now reflect an entity's current estimate of all future expected credit losses. Under the previous guidance, an entity only considered past events and current conditions. The guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The adoption of certain amendments of this guidance must be applied on a modified retrospective basis and the adoption of the remaining amendments must be applied on a prospective basis. We currently expect that the adoption of this guidance will likely change the way we assess the collectability of our receivables and recoverability of other financial instruments. We have not yet begun to evaluate the specific impacts of this guidance nor have we determined the manner in which we will adopt this guidance. In February 2016, the FASB issued guidance for accounting for leases. The guidance requires lessees to recognize assets and liabilities related to long-term leases on the balance sheet and expands disclosure requirements regarding leasing arrangements. The guidance is effective for reporting periods beginning after December 15, 2018 and early adoption is permitted. The guidance must be adopted on a modified retrospective basis and provides for certain practical expedients. We are currently evaluating the impact that the adoption of this guidance will have on our consolidated financial statements. We currently expect that the adoption of this guidance will likely change the way we account for our operating leases and will likely result in recording the future benefits of those leases and the related minimum lease payments on our consolidated balance sheets. We have not yet begun to evaluate the specific impacts of this guidance. In May 2014, the FASB issued guidance for revenue recognition for contracts, superseding the previous revenue recognition requirements, along with most existing industry-specific guidance. The guidance requires an entity to review contracts in five steps: 1) identify the contract, 2) identify performance obligations, 3) determine the transaction price, 4) allocate the transaction price, and 5) recognize revenue. The new standard will result in enhanced disclosures regarding the nature, amount, timing, and uncertainty of revenue arising from contracts with customers. In August 2015, the FASB issued guidance approving a one-year deferral, making the standard effective for reporting periods beginning after December 15, 2017, with early adoption permitted only for reporting periods beginning after December 15, 2016. In March 2016, the FASB issued guidance to clarify the implementation guidance on principal versus agent considerations for reporting revenue gross rather than net, with the same deferred effective date. In April 2016, the FASB issued guidance to clarify the implementation guidance on identifying performance obligations and the accounting for licenses of intellectual property, with the same deferred effective date. In May 2016, the FASB issued guidance rescinding SEC paragraphs related to revenue recognition, pursuant to two SEC Staff Announcements at the March 3, 2016 Emerging Issues Task Force meeting. In May 2016, the FASB also issued guidance to clarify the implementation guidance on assessing collectability, presentation of sales tax, noncash consideration, and contracts and contract modifications at transition, with the same effective date. In September 2017, the FASB issued guidance amending and rescinding prior SEC staff announcements and observer comments related to revenue recognition, pursuant to the SEC Staff Announcement at the July 20, 2017 Emerging Issues Task Force meeting. We will adopt this guidance as of January 1, 2018. We are currently undertaking a comprehensive review of our contracts with customers to determine the impact of this standard on our revenue recognition. While we currently expect that the adoption of this guidance will change the way we analyze, document, and disclose revenue recognition under customer contracts, based upon our analysis to date, we do not currently anticipate the adoption of this guidance to have a material effect on our consolidated financial statements. It is important to note that our work on this is ongoing and our final assessment is not yet complete. We have not yet determined the manner in which we will adopt this guidance. We have evaluated all other issued and unadopted Accounting Standards Updates and believe the adoption of these standards will not have a material impact on our condensed consolidated statements of earnings, balance sheets, or cash flows. Recently Adopted Accounting Pronouncements In January 2017, the FASB issued guidance to simplify the measurement of goodwill. The guidance eliminates Step 2 from the goodwill impairment test. Instead, under the amendments in this guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss. The guidance also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. An entity is required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, and early adoption is permitted for interim or annual goodwill impairment tests performed for testing dates after January 1, 2017. We adopted this guidance in the first quarter of 2017, effective as of January 1, 2017, on a prospective basis. The adoption of this new guidance did not have a material impact on our consolidated financial statements. In January 2017, the FASB issued guidance clarifying the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The guidance provides a screen to determine when an integrated set of assets and activities is not a business, provides a framework to assist entities in evaluating whether both an input and substantive process are present, and narrows the definition of the term output. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and early adoption is permitted. The guidance must be adopted on a prospective basis. We adopted this guidance in the first quarter of 2017, effective as of January 1, 2017, on a prospective basis. The adoption of this new guidance did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued guidance to reduce diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The revised guidance requires that amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning of period and end of period total amounts shown on the statement of cash flows. The guidance was effective for the fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption was permitted, including adoption in an interim period. If an entity adopted the guidance in an interim period, any adjustments should have been reflected as of the beginning of the fiscal year that includes that interim period. The guidance must be adopted on a retrospective basis. We adopted this guidance in the first quarter of 2017, effective as of January 1, 2017, on a retrospective basis, and all periods have been presented under this guidance. The adoption of this new guidance resulted in the inclusion of our $ 5.0 In August 2016, the FASB issued guidance on the classification of certain cash receipts and cash payments in the statement of cash flows, including those related to debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance, and distributions received from equity method investees. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. If an entity adopts the guidance in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The guidance must be adopted on a retrospective basis and must be applied to all periods presented, but may be applied prospectively if retrospective application would be impracticable. We adopted this guidance in the first quarter of 2017, effective as of January 1, 2017, on a retrospective basis. The adoption of this new guidance did not have a material impact on our consolidated financial statements. In March 2016, the FASB issued guidance simplifying the accounting for and financial statement disclosure of stock-based compensation awards, consisting of changes in the accounting for excess tax benefits and tax deficiencies, and changes in the accounting for forfeitures associated with share-based awards, among other things. We adopted this guidance in the first quarter of 2017, effective as of January 1, 2017. Pursuant to the adoption requirements for excess tax benefits and tax deficiencies, we no longer recognize excess tax benefits or tax deficiencies in Additional Paid in Capital (“APIC”); rather, we recognize them prospectively as a component of our current period provision/(benefit) before income taxes. We did not reverse our current APIC pool, which was $ 3.1 14

REVENUE RECOGNITION AND RELAT20

REVENUE RECOGNITION AND RELATED ALLOWANCES (Tables)	9 Months Ended
	Sep. 30, 2017
Revenue Recognition [Abstract]
Schedule of Valuation and Qualifying Accounts Disclosure	The following table summarizes activity in the consolidated balance sheets for accruals and allowances for the nine months ended September 30, 2017 and 2016, respectively: Accruals for Chargebacks, Rebates, Returns, and Other Allowances (in thousands) Chargebacks Government Returns Administrative Prompt Balance at December 31, 2015 $ 11,381 $ 4,631 $ 2,648 $ 1,653 $ 674 Accruals/Adjustments 74,373 8,013 5,840 8,559 3,743 Credits Taken Against Reserve (67,449) (6,193) (4,389) (7,225) (3,023) Balance at September 30, 2016 $ 18,305 $ 6,451 $ 4,099 $ 2,987 $ 1,394 Balance at December 31, 2016 $ 26,785 $ 5,891 $ 5,756 $ 3,550 $ 1,554 Accruals/Adjustments 133,849 7,807 8,949 16,840 5,960 Credits Taken Against Reserve (134,412) (7,943) (6,388) (15,448) (5,617) Balance at September 30, 2017 $ 26,222 $ 5,755 $ 8,317 $ 4,942 $ 1,897

INDEBTEDNESS (Tables)

INDEBTEDNESS (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Convertible Debt	The carrying value of the Notes is as follows as of: (in thousands) September 30, December 31, Principal amount $ 143,750 $ 143,750 Unamortized debt discount (15,637) (20,644) Deferred financing costs (1,829) (2,463) Net carrying value $ 126,284 $ 120,643
Interest Income and Interest Expense Disclosure	The following table sets forth the components of total interest expense related to the Notes recognized in the accompanying unaudited interim condensed consolidated statements of earnings for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended (in thousands) September 30, September 30, September 30, September 30, Contractual coupon $ 1,078 $ 1,078 $ 3,234 $ 3,234 Amortization of debt discount 1,692 1,604 5,007 4,748 Amortization of finance fees 211 211 633 633 Capitalized interest (143) (58) (367) (159) $ 2,838 $ 2,835 $ 8,507 $ 8,456

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Earnings per share for the three and nine months ended September 30, 2017 and 2016 are calculated for basic and diluted earnings per share as follows: Basic Diluted Basic Diluted Three Months Ended Three Months Ended Nine Months Ended Nine Months Ended (in thousands, except per share amounts) 2017 2016 2017 2016 2017 2016 2017 2016 Net income $ 4,720 $ 2,543 $ 4,720 $ 2,543 $ 8,553 $ 5,014 $ 8,553 $ 5,014 Net income allocated to restricted stock (35) (17) (35) (17) (64) (34) (64) (34) Net income allocated to common shares $ 4,685 $ 2,526 $ 4,685 $ 2,526 $ 8,489 $ 4,980 $ 8,489 $ 4,980 Basic Weighted-Average Shares Outstanding 11,553 11,465 11,553 11,465 11,542 11,421 11,542 11,421 Dilutive effect of stock options and ESPP 124 160 124 131 Diluted Weighted-Average Shares Outstanding 11,677 11,625 11,666 11,552 Earnings Per Share $ 0.41 $ 0.22 $ 0.40 $ 0.22 $ 0.74 $ 0.44 $ 0.73 $ 0.43

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	Inventories consist of the following as of: (in thousands) September 30, December 31, Raw materials $ 17,807 $ 14,138 Packaging materials 1,362 930 Work-in-progress 915 477 Finished goods (1) 18,865 10,812 38,949 26,357 Reserve for excess/obsolete inventories (471) (174) Inventories, net $ 38,478 $ 26,183 (1)

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT (Tables)	9 Months Ended
	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property, plant, and equipment consist of the following as of: (in thousands) September 30, December 31, Land $ 160 $ 160 Buildings 3,781 3,756 Machinery, furniture, and equipment 11,687 8,176 Construction in progress 8,033 4,293 23,661 16,385 Less: accumulated depreciation (6,274) (5,387) Property, Plant, and Equipment, net $ 17,387 $ 10,998

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	The components of net definite-lived intangible assets are as follows: September 30, 2017 December 31, 2016 Weighted Average (in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Amortization Acquired ANDA intangible assets $ 42,076 $ (11,541) $ 42,076 $ (8,390) 10.0 years NDAs and product rights 184,306 (31,975) 150,250 (17,081) 10.0 years Marketing and distribution rights 11,042 (4,569) 11,042 (2,662) 4.7 years Non-compete agreement 624 (134) 624 (67) 7.0 years $ 238,048 $ (48,219) $ 203,992 $ (28,200)
Finite-lived Intangible Assets Amortization Expense	Expected future amortization expense is as follows: (in thousands) 2017 (remainder of the year) $ 6,707 2018 26,825 2019 26,825 2020 26,343 2021 24,898 2022 and thereafter 78,231 Total $ 189,829

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	The following table summarizes stock-based compensation expense incurred under the 2008 Plan and included in our accompanying unaudited interim condensed consolidated statements of earnings: Three Months Ended September 30, Nine Months Ended September 30, (in thousands) 2017 2016 2017 2016 Cost of sales $ 19 $ 23 $ 68 $ 37 Research and development 173 25 485 74 Selling, general, and adminstrative 1,270 1,305 4,059 4,564 $ 1,462 $ 1,353 $ 4,612 $ 4,675
Schedule of Share-based Compansation, Stock Option And Restricted Stock, Activity	A summary of stock option and restricted stock activity under the 2008 Plan during the nine months ended September 30, 2017 and 2016 is presented below: (in thousands) Options RSAs Outstanding December 31, 2015 474 63 Granted 293 42 Options Exercised/RSAs Vested (120) (15) Forfeited (59) (12) Outstanding September 30, 2016 588 78 Outstanding December 31, 2016 578 63 Granted 192 50 Options Exercised/RSAs Vested (7) (27) (1) Forfeited (3) - Outstanding September 30, 2017 760 86 (1) 259

BUSINESS, PRESENTATION, AND R27

BUSINESS, PRESENTATION, AND RECENT ACCOUNTING PRONOUNCEMENTS (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2017	Jan. 31, 2017	Sep. 30, 2016	Dec. 31, 2015
Restricted Cash and Cash Equivalents, Noncurrent	$ 5,002	$ 5,004		$ 5,001	$ 0
Adjustments for New Accounting Pronouncement [Member]
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets			$ 14
Adjustments for New Accounting Pronouncement [Member] | Additional Paid-in Capital [Member]
APIC Pool Not Tax Effected	$ 3,100

REVENUE RECOGNITION AND RELAT28

REVENUE RECOGNITION AND RELATED ALLOWANCES (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	$ 31,535
Ending balance	32,463
Chargebacks [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	26,785	$ 11,381
Accruals/Adjustments	133,849	74,373
Credits Taken Against Reserve	(134,412)	(67,449)
Ending balance	26,222	18,305
Government Rebates [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	5,891	4,631
Accruals/Adjustments	7,807	8,013
Credits Taken Against Reserve	(7,943)	(6,193)
Ending balance	5,755	6,451
Returns [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	5,756	2,648
Accruals/Adjustments	8,949	5,840
Credits Taken Against Reserve	(6,388)	(4,389)
Ending balance	8,317	4,099
Administrative Fees And Other Rebates [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	3,550	1,653
Accruals/Adjustments	16,840	8,559
Credits Taken Against Reserve	(15,448)	(7,225)
Ending balance	4,942	2,987
Prompt Payment Discounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Beginning balance	1,554	674
Accruals/Adjustments	5,960	3,743
Credits Taken Against Reserve	(5,617)	(3,023)
Ending balance	$ 1,897	$ 1,394

REVENUE RECOGNITION AND RELAT29

REVENUE RECOGNITION AND RELATED ALLOWANCES (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Customer One [Member] | Net Revenues [Member]
Concentration Risk, Percentage	30.00%	31.00%	31.00%	27.00%
Customer Two [Member] | Net Revenues [Member]
Concentration Risk, Percentage	30.00%	18.00%	26.00%	21.00%
Customer Three [Member] | Net Revenues [Member]
Concentration Risk, Percentage	19.00%	17.00%	21.00%	17.00%
Customer One Two And Three [Member] | Net Accounts Receivable [Member]
Concentration Risk, Percentage			81.00%

INDEBTEDNESS (Details)

INDEBTEDNESS (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Principal amount	$ 143,750	$ 143,750
Unamortized debt discount	(15,637)	(20,644)
Deferred financing costs	(1,829)	(2,463)
Net carrying value	$ 126,284	$ 120,643

INDEBTEDNESS (Details 1)

INDEBTEDNESS (Details 1) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Contractual coupon	$ 1,078	$ 1,078	$ 3,234	$ 3,234
Amortization of debt discount	1,692	1,604	5,007	4,748
Amortization of finance fees	211	211	633	633
Capitalized interest	(143)	(58)	(367)	(159)
Interest Expense, Debt	$ 2,838	$ 2,835	$ 8,507	$ 8,456

INDEBTEDNESS (Details Textual)

INDEBTEDNESS (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended			3 Months Ended		9 Months Ended
	Sep. 30, 2017	Feb. 28, 2017	May 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Jun. 30, 2016	Dec. 31, 2014
Long-term Debt, Gross	$ 143,750			$ 143,750		$ 143,750		$ 143,750
Debt Instrument, Unamortized Discount	15,637			15,637		15,637		20,644
Line of Credit Facility, Maximum Borrowing Capacity		$ 40,000
Deferred Finance Costs, Net	1,829			1,829		1,829		2,463
Interest Income (Expense), Nonoperating, Net				(3,052)	$ (2,856)	(9,009)	$ (8,468)
Long-term Line of Credit	25,000			25,000		25,000
Proceeds from Lines of Credit		$ 30,000				25,000	$ 0
Prepaid Expenses and Other Current Assets [Member]
Deferred Finance Costs, Net	$ 200			$ 200		$ 200
Convertible Senior Notes [Member]
Long-term Debt, Gross										$ 143,800
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate										3.00%
Debt Instrument, Unamortized Discount										$ 33,600
Class of Warrant or Right, Exercise Price of Warrants or Rights										$ 96.21
Debt Instrument, Interest Rate, Effective Percentage	7.90%			7.90%		7.90%
Debt Instrument, Convertible, Conversion Price										$ 69.48
Convertible Senior Notes [Member] | Accrued Liabilities [Member]
Interest Payable, Current	$ 1,400			$ 1,400		$ 1,400		$ 400
Line of Credit [Member]
Line of Credit Facility, Maximum Borrowing Capacity			$ 30,000
Debt Instrument, Maturity Date			May 12, 2019
Line of Credit Facility, Commitment Fee Percentage			0.25%
Debt Instrument, Description of Variable Rate Basis			LIBOR rate plus 1.25%, 1.50%, or 1.75% per annum, depending upon availability under the Citizens Agreement, or an alternative base rate plus either 0.25%, 0.50%, or 0.75% per annum,
Interest Income (Expense), Nonoperating, Net				$ 200		$ 500
Line Of Credit Facility Additional Revolving Commitment			$ 10,000
Deferred Costs, Current									$ 300
Repayments of Lines of Credit	$ 5,000

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net income, Basic	$ 4,720	$ 2,543	$ 8,553	$ 5,014
Net income, Diluted	4,720	2,543	8,553	5,014
Net income allocated to common shares, Basic	4,685	2,526	8,489	4,980
Net income allocated to common shares, Diluted	$ 4,685	$ 2,526	$ 8,489	$ 4,980
Basic Weighted-Average Shares Outstanding, Basic	11,553	11,465	11,542	11,421
Dilutive effect of stock options and ESPP, Diluted	124	160	124	131
Diluted Weighted-Average Shares Outstanding, Diluted	11,677	11,625	11,666	11,552
Earnings Per Share, Basic	$ 0.41	$ 0.22	$ 0.74	$ 0.44
Earnings Per Share, Diluted	$ 0.40	$ 0.22	$ 0.73	$ 0.43
Restricted Stock [Member]
Net income allocated to restricted stock, Basic	$ (35)	$ (17)	$ (64)	$ (34)
Net income allocated to restricted stock, Diluted	$ (35)	$ (17)	$ (64)	$ (34)

EARNINGS PER SHARE (Details Tex

EARNINGS PER SHARE (Details Textual) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4.8	4.5	4.7	4.5

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands		Sep. 30, 2017	Dec. 31, 2016
Inventories
Raw materials		$ 17,807	$ 14,138
Packaging materials		1,362	930
Work-in-progress		915	477
Finished goods	[1]	18,865	10,812
Inventory, Gross, Total		38,949	26,357
Reserve for excess/obsolete inventories		(471)	(174)
Inventories, net		$ 38,478	$ 26,183
[1]	Includes finished goods acquired in asset purchases (Note 12).

INVENTORIES (Details Textual)

INVENTORIES (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Accounts Payable, Current	$ 5,821		$ 5,821		$ 3,389
One Suppliers (2016) [Member]
Concentration Risk, Percentage		28.00%		23.00%
Two Suppliers - Three Months Ended September 30, 2017 [Member]
Concentration Risk, Percentage	40.00%
Accounts Payable, Current	$ 1,800		$ 1,800
Two Suppliers - Nine Months Ended September 30, 2017 [Member]
Concentration Risk, Percentage			24.00%
Accounts Payable, Current	$ 800		$ 800

PROPERTY, PLANT, AND EQUIPMEN37

PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment, Gross, Total	$ 23,661	$ 16,385
Less: accumulated depreciation	(6,274)	(5,387)
Property, Plant, and Equipment, net	17,387	10,998
Land [Member]
Property, Plant and Equipment, Gross, Total	160	160
Buildings [Member]
Property, Plant and Equipment, Gross, Total	3,781	3,756
Machinery, furniture and equipment [Member]
Property, Plant and Equipment, Gross, Total	11,687	8,176
Construction in progress [Member]
Property, Plant and Equipment, Gross, Total	$ 8,033	$ 4,293

PROPERTY, PLANT, AND EQUIPMEN38

PROPERTY, PLANT, AND EQUIPMENT (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Depreciation, Total	$ 300	$ 200	$ 900	$ 700
Interest Costs Capitalized	$ 100	$ 58	$ 400	$ 200

GOODWILL AND INTANGIBLE ASSET39

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
GOODWILL AND INTANGIBLE ASSETS
Gross Carrying Amount	$ 238,048	$ 203,992
Accumulated Amortization	(48,219)	(28,200)
Acquired ANDA intangible assets
GOODWILL AND INTANGIBLE ASSETS
Gross Carrying Amount	42,076	42,076
Accumulated Amortization	$ (11,541)	(8,390)
Weighted Average Amortization Period	10 years
NDAs and product rights
GOODWILL AND INTANGIBLE ASSETS
Gross Carrying Amount	$ 184,306	150,250
Accumulated Amortization	$ (31,975)	(17,081)
Weighted Average Amortization Period	10 years
Marketing and distribution rights
GOODWILL AND INTANGIBLE ASSETS
Gross Carrying Amount	$ 11,042	11,042
Accumulated Amortization	$ (4,569)	(2,662)
Weighted Average Amortization Period	4 years 8 months 12 days
Non-compete agreement
GOODWILL AND INTANGIBLE ASSETS
Gross Carrying Amount	$ 624	624
Accumulated Amortization	$ (134)	$ (67)
Weighted Average Amortization Period	7 years

GOODWILL AND INTANGIBLE ASSET40

GOODWILL AND INTANGIBLE ASSETS (Details 1) $ in Thousands	Sep. 30, 2017USD ($)
GOODWILL AND INTANGIBLE ASSETS
2017 (remainder of the year)	$ 6,707
2,018	26,825
2,019	26,825
2,020	26,343
2,021	24,898
2022 and thereafter	78,231
Total	$ 189,829

GOODWILL AND INTANGIBLE ASSET41

GOODWILL AND INTANGIBLE ASSETS (Details Textual) - USD ($) $ in Thousands	1 Months Ended			3 Months Ended		9 Months Ended
	Feb. 28, 2017	Apr. 30, 2016	Jan. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
GOODWILL AND INTANGIBLE ASSETS
Amortization of Intangible Assets				$ 6,800	$ 5,700	$ 20,000	$ 15,800
Payments to Acquire Intangible Assets						50,956	144,494
Goodwill				1,838		1,838		$ 1,838
Finite-Lived Intangible Assets, Gross				238,048		238,048		203,992
Accrued Royalties Related To Asset Purchase						$ 0	$ 3,882
Acquired Finite-lived Intangible Asset, Amortization Description						we are amortizing 80% of the value of the intangible assets over the first five years of useful lives of the assets and amortizing the remaining 20% of the value of the intangible assets over the second five years of useful lives of the assets.
Cranford Pharmaceuticals [Member] | Non Compete Agreement [Member]
GOODWILL AND INTANGIBLE ASSETS
Finite-Lived Intangible Asset, Useful Life		7 years
Finite-Lived Intangible Assets, Gross		$ 600
Inderal XL [Member]
GOODWILL AND INTANGIBLE ASSETS
Finite-Lived Intangible Asset, Useful Life	10 years
Finite-Lived Intangible Assets, Gross	$ 15,100
Acquisition Costs Capitalized	40
Asset Acquisition Purchase Price	$ 20,200
InnoPran XL [Member]
GOODWILL AND INTANGIBLE ASSETS
Finite-Lived Intangible Asset, Useful Life	10 years
Finite-Lived Intangible Assets, Gross	$ 19,000
Acquisition Costs Capitalized	100
Asset Acquisition Purchase Price	30,600
InnoPran XL [Member] | Line of Credit [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets	30,000
InnoPran XL [Member] | Cash [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets	$ 600
Marketing and Distribution Rights [Member]
GOODWILL AND INTANGIBLE ASSETS
Finite-Lived Intangible Asset, Useful Life						4 years 8 months 12 days
Finite-Lived Intangible Assets, Gross				$ 11,042		$ 11,042		$ 11,042
Marketing and Distribution Rights [Member] | H2 - Pharma, LLC [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets			$ 8,800
Finite-Lived Intangible Asset, Useful Life			4 years
Finite-Lived Intangible Assets, Gross			$ 10,000
Acquisition Costs Capitalized			42
Accrued Royalties Assumed in Asset Purchase			1,200
New Drug Applications [Member] | Merck Sharp Dohme B.V. [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets			$ 75,000
Finite-Lived Intangible Asset, Useful Life			10 years
Finite-Lived Intangible Assets, Gross			$ 75,300
Acquisition Costs Capitalized			$ 300
New Drug Applications [Member] | Cranford Pharmaceuticals [Member]
GOODWILL AND INTANGIBLE ASSETS
Payments to Acquire Intangible Assets		$ 60,000
Finite-Lived Intangible Asset, Useful Life		10 years
Finite-Lived Intangible Assets, Gross		$ 52,400
Acquisition Costs Capitalized		300
Accrued Royalties Related To Asset Purchase		3,900
Asset Acquisition Purchase Price		$ 64,200

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Allocated Share-based Compensation Expense	$ 1,462	$ 1,353	$ 4,612	$ 4,675
Cost of Sales [Member] | 2008 Plan [Member]
Allocated Share-based Compensation Expense	19	23	68	37
Research and Development Expense [Member] | 2008 Plan [Member]
Allocated Share-based Compensation Expense	173	25	485	74
Selling, General and Administrative Expenses [Member] | 2008 Plan [Member]
Allocated Share-based Compensation Expense	$ 1,270	$ 1,305	$ 4,059	$ 4,564

STOCK-BASED COMPENSATION (Det43

STOCK-BASED COMPENSATION (Details 1) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2017		Sep. 30, 2016
Options [Member]
Option Shares
Outstanding at the beginning of the period (in shares)	578		474
Granted (in shares)	192		293
Options Exercised/RSAs Vested (in shares)	(7)		(120)
Forfeited (in shares)	(3)		(59)
Outstanding at the end of the period (in shares)	760		588
RSAs [Member]
Option Shares
Outstanding at the beginning of the period (in shares)	63		63
Granted (in shares)	50		42
Options Exercised/RSAs Vested (in shares)	(27)	[1]	(15)
Forfeited (in shares)	0		(12)
Outstanding at the end of the period (in shares)	86		78
[1]	Includes five thousand shares purchased from employees to cover employee income taxes related to income earned upon vesting of restricted stock. The shares purchased are held in treasury and the $259 thousand total purchase price for the shares is included in Treasury stock in our accompanying unaudited interim condensed consolidated balance sheets.

STOCK-BASED COMPENSATION (Det44

STOCK-BASED COMPENSATION (Details Textual) - USD ($) $ in Thousands, shares in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	May 17, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		$ 1,462	$ 1,353	$ 4,612	$ 4,675
Treasury stock		$ (259)		$ (259)		$ 0
2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant		0.8		0.8
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized	0.8
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized		0.2		0.2
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date				15.00%
Employee Stock Purchase Plan [Member] | Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		$ 1	1	$ 5	1
Employee Stock Purchase Plan [Member] | Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated Share-based Compensation Expense		$ 11	$ 11	$ 50	$ 11

STOCKHOLDER_S EQUITY (Details T

STOCKHOLDER’S EQUITY (Details Textual) - Stock Repurchase Program [Member] - USD ($) shares in Thousands, $ in Millions	1 Months Ended
	Jan. 31, 2016	Oct. 31, 2015
Stock Repurchase Program, Authorized Amount		$ 25
Stock Repurchased and Retired During Period, Shares	65
Stock Repurchased and Retired During Period, Value	$ 2.5

INCOME TAXES (Details Textual)

INCOME TAXES (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Effective Income Tax Rate Reconciliation, Percent	25.90%	49.60%	28.70%	51.20%
Deferred Tax Assets, Valuation Allowance	$ 0.3		$ 0.3		$ 0.3

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
COMMITMENTS AND CONTINGENCIES
Percentage Of Royalties On Net Sales Of Unapproved Products	less than 1%	less than 1%	less than 1%	less than 1%
Unapproved Products [Member]
COMMITMENTS AND CONTINGENCIES
Revenue, Net	$ 7.9	$ 8.6	$ 20.9	$ 26.6
Unapproved Products [Member] | Contract Customer [Member]
COMMITMENTS AND CONTINGENCIES
Revenue, Net	$ 0.6	$ 0.3	$ 1.5	$ 1.1

FAIR VALUE DISCLOSURES (Details

FAIR VALUE DISCLOSURES (Details Textual) - USD ($) $ in Thousands		1 Months Ended			9 Months Ended
		Feb. 28, 2017	Apr. 30, 2016	Jan. 31, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate					15.00%
Payments to Acquire Intangible Assets					$ 50,956	$ 144,494
Long-term Debt, Total					126,284		$ 120,643
Finite-Lived Intangible Assets, Gross					238,048		203,992
Inventory, Finished Goods, Gross	[1]				18,865		$ 10,812
Accrued Royalties Related To Asset Purchase					0	$ 3,882
Cranford Pharmaceuticals [Member] | Non Compete Agreement [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate			10.00%
Finite-Lived Intangible Assets, Gross			$ 600
Finite-Lived Intangible Asset, Useful Life			7 years
Inderal XL [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate		10.00%
Finite-Lived Intangible Assets, Gross		$ 15,100
Finite-Lived Intangible Asset, Useful Life		10 years
Acquisition Costs Capitalized		$ 40
Inventory, Finished Goods, Gross		5,000
Asset Acquisition Purchase Price		$ 20,200
InnoPran XL [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate		10.00%
Finite-Lived Intangible Assets, Gross		$ 19,000
Finite-Lived Intangible Asset, Useful Life		10 years
Acquisition Costs Capitalized		$ 100
Inventory, Finished Goods, Gross		11,600
Asset Acquisition Purchase Price		30,600
InnoPran XL [Member] | Cash [Member]
Fair Value Inputs, Assets, Quantitative Information
Payments to Acquire Intangible Assets		600
InnoPran XL [Member] | Line of Credit [Member]
Fair Value Inputs, Assets, Quantitative Information
Payments to Acquire Intangible Assets		$ 30,000
Merck Sharp Dohme B.V. [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate				10.00%
Finite-Lived Intangible Assets, Gross				$ 75,000
Finite-Lived Intangible Asset, Useful Life				10 years
Acquisition Costs Capitalized				$ 300
Fair Value, Inputs, Level 1 [Member]
Fair Value Inputs, Assets, Quantitative Information
Notes Payable, Fair Value Disclosure					$ 155,300
New Drug Applications [Member] | Cranford Pharmaceuticals [Member]
Fair Value Inputs, Assets, Quantitative Information
Fair Value Inputs, Discount Rate			12.00%
Payments to Acquire Intangible Assets			$ 60,000
Finite-Lived Intangible Assets, Gross			$ 52,400
Finite-Lived Intangible Asset, Useful Life			10 years
Acquisition Costs Capitalized			$ 300
Inventory, Finished Goods, Gross			10,900
Funds Held In Escrow In Relation To Asset Purchase			5,000
Accrued Royalties Related To Asset Purchase			3,900
Asset Acquisition Purchase Price			$ 64,200
[1]	Includes finished goods acquired in asset purchases (Note 12).