Pernix Therapeutics 10-Q 11 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 04, 2016
Document Information [Line Items]
Entity Registrant Name	PERNIX THERAPEUTICS HOLDINGS, INC.
Entity Central Index Key	1,024,126
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		85,120,081
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 29,207	$ 56,135
Restricted cash	0	10,002
Accounts receivable, net	48,447	61,209
Inventory, net	9,693	10,035
Prepaid expenses and other current assets	11,651	11,574
Income tax receivable	7,030	6,735
Total current assets	106,028	155,690
Property and equipment, net	1,288	2,346
Goodwill	54,366	54,865
Intangible assets, net	240,763	285,943
Other	302	347
Total assets	402,747	499,191
Current liabilities:
Accounts payable and accrued expenses	25,681	27,772
Accrued allowances	55,746	62,678
Interest payable	11,173	11,903
Treximet Secured Notes - current	3,789	13,335
Restricted cash payable	0	10,002
Other liabilities - current	4,507	6,753
Total current liabilities	100,896	132,443
Convertible notes - long-term	101,873	99,776
Derivative liability	2,212	9,165
Contingent consideration	4,581	14,055
Treximet Secured Notes - long-term	184,208	188,715
Credit facilities - long-term	14,000	15,000
Deferred income tax liability - long-term	226	202
Other liabilities - long-term	4,461	6,738
Total liabilities	412,457	466,094
Commitments and contingencies (notes 1, 3, 6, 7, 10 and 11)
Stockholders' (deficit) equity
Preferred stock, $0.01 par value, authorized 10,000,000 shares; no shares issued and outstanding	0	0
Common stock, $0.01 par value, 140,000,000 shares authorized, 87,902,468 and 63,874,549 issued and 85,120,081 and 61,112,527 outstanding at June 30, 2016 and December 31, 2015, respectively	851	611
Additional paid-in capital	240,889	226,837
Treasury stock, at cost, 2,782,387 and 2,762,022 shares held at June 30, 2016 and December 31, 2015, respectively	(5,572)	(5,548)
Accumulated deficit	(245,878)	(188,803)
Total stockholders' (deficit) equity	(9,710)	33,097
Total liabilities and stockholders' (deficit) equity	$ 402,747	$ 499,191

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) (Parenthetical) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Stockholders Equity
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock par value	$ 0.01	$ 0.01
Common stock shares authorized	140,000,000	140,000,000
Common stock shares issued	87,902,468	63,874,549
Common stock shares outstanding	85,120,081	61,112,527
Treasury Stock held, at cost	2,782,387	2,762,022

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Net revenues	$ 36,746	$ 46,977	$ 69,215	$ 80,866
Cost of product sales	12,194	13,794	23,432	24,870
Gross profit	24,552	33,183	45,783	55,996
Operating expenses:
Selling, general and administrative expense	25,492	24,857	51,442	45,843
Research and development expense	2,499	1,470	3,427	2,464
Depreciation and amortization expense	21,062	22,326	44,726	40,759
Change in fair value of contingent consideration	(3,972)	0	(9,474)	0
Loss from disposal and impairments of assets	1,771	0	1,771	0
Restructuring costs	0	(108)	0	1,197
Total operating expenses	46,852	48,545	91,892	90,263
Loss from operations	(22,300)	(15,362)	(46,109)	(34,267)
Other income (expense):
Interest income	0	54	0	110
Interest expense	(8,937)	(9,733)	(17,961)	(19,131)
Change in fair value of derivative liability	159	8,703	6,953	8,703
Foreign currency transaction (loss) gain	(71)	0	67	0
Cost of inducement	0	(19,500)		(19,500)
Total other expense, net	(8,849)	(20,476)	(10,941)	(29,818)
Loss before income tax expense (benefit)	(31,149)	(35,838)	(57,050)	(64,085)
Income tax (benefit) expense	(10)	(3,603)	25	(8,176)
Net loss	$ (31,139)	$ (32,235)	$ (57,075)	$ (55,909)
Net Loss per share, basic	$ (0.47)	$ (0.62)	$ (0.89)	$ (1.23)
Net Loss per share, diluted	$ (0.47)	$ (0.62)	$ (0.89)	$ (1.23)
Weighted-average common shares, basic	66,687	52,399	63,904	45,481
Weighted-average common shares, diluted	66,687	52,399	63,904	45,481

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net loss	$ (57,075)	$ (55,909)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	484	147
Amortization of intangibles	44,261	40,612
Amortization of deferred financing costs	1,214	1,393
Accretion of debt discount	1,752	616
Interest accretion of notes receivable	0	(95)
Deferred income tax benefit	24	(7,424)
Stock compensation expense	2,239	3,085
Fair market value change in derivative liability	(6,953)	(8,703)
Issuance of stock for inducement	0	19,500
Fair market value change in contingent consideration	(9,474)	0
Loss on disposal of fixed assets	35	0
Impairment of fixed assets and intangibles	1,736	0
(Increase) decrease in operating assets:
Accounts receivable	13,291	(2,268)
Income tax receivable	(295)	(457)
Inventory	342	1,414
Prepaid expenses and other assets	1,878	(1,644)
Increase (decrease) in operating liabilities:
Accounts payable and accrued expenses	(4,337)	(38)
Accrued allowances	(6,932)	(406)
Interest payable	(730)	2,588
Other liabilities	(2,246)	(2,334)
Net cash used in operating activities	(20,786)	(9,923)
Cash flows from investing activities:
Acquisition of Zohydro ER	0	(80,927)
Acquisition of supplier contract	(583)	0
Purchase of software and equipment	(949)	(726)
Net cash used in investing activities	(1,532)	(81,653)
Cash flows from financing activities:
Payments on Treximet Secured Notes	(14,908)	0
Net (payments) drawdowns on credit facilities	(1,000)	596
Net proceeds from issuance of Convertible Notes	0	130,000
Payments for financing costs	0	(5,045)
Payment of consent fee	0	(2,150)
Payments on mortgages and capital leases	(31)	(13)
Proceeds from issuance of common stock, net of tax and costs	11,353	276
Shares withheld for the payment of taxes	(24)	(112)
Net cash provided by (used in) financing activities	(4,610)	123,552
Net (decrease) increase in cash and cash equivalents	(26,928)	31,976
Cash and cash equivalents, beginning of period	56,135	34,855
Cash and cash equivalents, end of period	$ 29,207	$ 66,831

1. Company Overview

1. Company Overview	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. Company Overview	Note 1. Company Overview Pernix Therapeutics Holdings, Inc. and subsidiaries (collectively, "Pernix", the "Company", "we", "our" and "us") is a specialty pharmaceutical company focused on the acquisition, development and commercialization of prescription drugs, primarily for the United States ("U.S.") market. The Company targets underserved therapeutic areas, such as the central nervous system ("CNS") and Pain, including neurology, psychiatry as well as Pain specialties, and has an interest in expanding into additional specialty segments. The Company promotes its branded products to physicians through its Pernix sales force, and markets its generic portfolio through its wholly owned subsidiaries, Macoven Pharmaceuticals, LLC ("Macoven") and Cypress Pharmaceuticals, Inc. ("Cypress"). The Company's branded products include Treximet®, a medication indicated for the acute treatment of migraine attacks with and without aura, Silenor®, a non-controlled substance and approved medication for the treatment of insomnia characterized by difficulty with sleep maintenance and Zohydro ER® with BeadTek, an extended-release opioid agonist indicated for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment and for which alternative treatment options are inadequate. The accompanying unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with generally accepted accounting principles in the United States ("GAAP") and under the rules and regulations of the United States Securities and Exchange Commission (SEC) for interim reporting. In management's opinion, the interim financial data presented includes all adjustments (consisting solely of normal recurring items) necessary for fair presentation. All intercompany accounts and transactions have been eliminated. Certain information required by U.S. generally accepted accounting principles has been condensed or omitted in accordance with rules and regulations of the SEC. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2016. These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and the notes thereto for the year ended December 31, 2015, included in Pernix Therapeutics' 2015 Annual Report on Form 10-K filed with the SEC. The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions relating to reporting of the assets and liabilities and the disclosure of contingent assets and liabilities to prepare these unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period in conformity with U.S. generally accepted accounting principles. Significant estimates of the Company include: revenue recognition, sales allowances such as returns on product sales, government program rebates, customer coupon redemptions, wholesaler/pharmacy discounts, product service fees, rebates and chargebacks, sales commissions, amortization, stock-based compensation, the determination of fair values of assets and liabilities in connection with business combinations, and deferred income taxes. Actual results could differ from these estimates. Subsequent Events The Company has evaluated all events and transactions since June 30, 2016. The Company did not have any material recognized subsequent events but did have the following non-recognized subsequent events. On July 7, 2016, the Company announced a restructuring of sales force and operations. The reorganization plan included (1) a reduction of 54 sales positions, primarily from the Company's Neurology sales team; (2) prioritization and reorganization of sales territories to reduce the inefficient time that sales representatives spent driving long distances between customers; (3) improvement of the Company's compensation plan to incentivize the field sales staff to increase the frequency of calls on the focused targets; and (4) consolidation of the Neurology and Pain sales forces under one sales management structure to eliminate redundancies. In addition, as part of this initiative, the Company reduced its administrative staff by 6 employees. On July 26, 2016, the Company announced a reorganization of the Company's senior management team intended to improve Pernix's efficiency, drive profitability and position the Company for future growth. As part of the management change, John Sedor will assume the role of Chief Executive Officer on a permanent basis and pharmaceutical industry veteran, Dr. Graham Miao, who has served as a senior advisor to Pernix's Board of Directors since May, has been appointed as President and Chief Financial Officer. Dr. Miao will report directly to Mr. Sedor and will have responsibility for all functions related to finance, operations, regulatory and scientific affairs. In addition, Sanjay Patel, Chief Financial Officer, Terence Novak, Chief Operating Officer, and Barry Siegel, Senior Vice President and General Counsel are no longer employed by Pernix. These departures do not reflect any disagreements about the Company's financial results or disclosures. Acquisition of Zohydro ER with BeadTek On April 24, 2015, the Company, through a wholly owned subsidiary Pernix Ireland Pain Limited ("PIPL") completed the acquisition of the pharmaceutical product line Zohydro ER, including an abuse-deterrent pipeline and all related intellectual property, a supplier contract, an associated liability payable and a specified quantity of inventory associated therewith, from Zogenix, Inc. ("Zogenix"). See Note 12, Business Combinations, . Reclassifications Certain comparative figures have been reclassified to conform to the current year presentation. In accordance with Accounting Standards Update ("ASU") 2015-03, Simplifying the Presentation of Debt Issuance Costs Principles of Consolidation The unaudited condensed consolidated financial statements include the accounts of Pernix's wholly-owned subsidiaries Pernix Therapeutics, LLC, Macoven, Cypress, Cypress' subsidiary, Hawthorn Pharmaceuticals, Inc., Pernix Ireland Limited and Pernix Ireland Pain Limited. Transactions between and among the Company and its consolidated subsidiaries are eliminated. Fair Value of Financial Instruments A financial instrument is defined as cash equivalent, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from another party. The Company's financial instruments consist primarily of cash equivalents, notes receivable, and our credit facility. The carrying values of these assets and liabilities approximate their fair value due to their short-term nature. Significant Customers The Company's customers consist of drug wholesalers, retail drug stores, mass merchandisers and grocery store pharmacies in the United States. The Company primarily sells its products directly to large national drug wholesalers, which in turn resell the products to smaller or regional wholesalers, retail pharmacies, chain drug stores, and other third parties. The following tables list the Company's customers that individually comprised greater than 10% of total gross product sales for the three and six months ended June 30, 2016 and 2015, or 10% of total accounts receivable as of June 30, 2016 and December 31, 2015. Gross Product Sales: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 McKesson Corporation 35% 37% 36% 41% AmerisourceBergen Drug Corporation 31% 29% 32% 24% Cardinal Health, Inc. 26% 27% 26% 28% Total 92% 93% 94% 93% Accounts Receivable, net: June 30, December 31, 2016 2015 McKesson Corporation 35% 34% Cardinal Health, Inc. 29% 28% AmerisourceBergen Drug Corporation 27% 30% Total 91% 92% Cost of Product Sales In connection with the acquisitions of Cypress and Somaxon, the Company adjusted the predecessor cost basis, increasing inventory to fair value as required by Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures

2. Earnings per Share

2. Earnings per Share	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
2. Earnings per Share	Note 2. Earnings per Share Basic net income (loss) per common share is the amount of net income (loss) for the period divided by the weighted average shares of common stock outstanding during the reporting period. Diluted income (loss) per common share is the amount of income (loss) for the period plus interest expense on convertible debt divided by the sum of weighted average shares of common stock outstanding during the reporting period and weighted average shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares. The following table sets forth the computation of basic and diluted net loss per share (in thousands except per share data): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net loss $ (31,139) $ (32,235) $ (57,075) $ (55,909) Denominator: Weighted-average common shares, basic 66,687 52,399 63,904 45,481 Dilutive effect of stock options - - - - Weighted-average common shares, diluted 66,687 52,399 63,904 45,481 Net loss per share, basic and diluted $ (0.47) $ (0.62) $ (0.89) $ (1.23) The following table sets forth the potential common shares that could potentially dilute basic income per share in the future that were not included in the computation of diluted income (loss) per share because to do so would have been anti-dilutive for the periods presented (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 4.25% Convertible Notes 11,334 8,594 11,334 4,383 8.00% Convertible Notes - 4,365 - 11,073 Stock options and restricted stock 9,035 1,524 8,555 1,804 Warrants 469 136 469 176 Total potential dilutive effect 20,838 14,619 20,358 17,436

3. Fair Value Measurement

3. Fair Value Measurement	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
3. Fair Value Measurement	Note 3. Fair Value Measurement The Company's financial assets and liabilities are measured using inputs from the three levels of the fair value hierarchy. The three levels are as follows: Level 1- Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Level 2- Inputs are other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.), and inputs that are derived principally from or corroborated by observable market data by correlation or other means (market corroborated inputs). Level 3- Inputs are unobservable and reflect the Company's assumptions that market participants would use in pricing the asset or liability. The Company develops these inputs based on the best information available. Summary of Assets Recorded at Fair Value In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company's financial assets that are required to be measured at fair value as of June 30, 2016 and December 31, 2015 (in thousands): As of June 30, 2016 Level 1 Level 2 Level 3 Total Money market fund and trust cash sweep investments (1) $ - $ - $ - $ - Total assets $ - $ - $ - $ - As of December 31, 2015 Level 1 Level 2 Level 3 Total Money market fund and trust cash sweep investments (1) $ 4,367 $ - $ - $ 4,367 Total assets $ 4,367 $ - $ - $ 4,367 (1) The Company's money market and trust cash sweep investments are included in cash and cash equivalents within the Unaudited Condensed Consolidated Balance Sheets. The Company's cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices or broker or dealer quotations for similar assets. These investments are initially valued at the transaction price and subsequently valued utilizing third-party pricing providers or other market observable data. Data used in the analysis include reportable trades, broker/dealer quotes, bids and offers, benchmark yields and credit spreads. The Company validates the prices provided by its third-party pricing providers by reviewing their pricing methods, analyzing pricing inputs and confirming that the securities have traded in normally functioning markets. The Company did not adjust or override any fair value measurements provided by its pricing providers as of June 30, 2016 or December 31, 2015. As of June 30, 2016 and December 31, 2015, the Company did not have any investments in Level 3 securities. There were no transfers of assets or liabilities between Level 1 and Level 2 during the three and six months ended June 30, 2016 and 2015. The carrying amounts reflected in the unaudited condensed consolidated balance sheets for certain short-term financial instruments including accounts receivable, accounts payable, accrued expenses, and other liabilities approximate fair value due to their short-term nature. Summary of Liabilities Recorded at Carrying Value and Fair Value The 4.25% Convertible Notes and the Treximet Secured Notes are recorded at carrying value. The derivative liability and contingent consideration are recorded at fair value. Within the hierarchy of fair value measurements, the derivative liability and contingent consideration are Level 3 fair values. The fair and carrying value of our debt instruments are detailed as follows (in thousands): As of June 30, 2016 As of December 31, 2015 Fair Carrying Fair Carrying Value Value Value Value 4.25% Convertible Notes $ 28,180 $ 101,873 $ 68,637 $ 99,776 Derivative liability 2,212 2,212 9,165 9,165 Contingent consideration 4,581 4,581 14,055 14,055 Treximet Secured Notes 149,280 187,997 179,518 202,050 Total $ 184,253 $ 296,663 $ 271,375 $ 325,046 Convertible Notes The fair values of the Convertible notes were estimated using the (i) terms of the convertible notes; (ii) rights, preferences, privileges, and restrictions of the underlying security; (iii) time until any restriction(s) are released; (iv) fundamental financial and other characteristics of the Company; (v) trading characteristics of the underlying security (exchange, volume, price, and volatility); (vi) valuation of derivative liability; and (vii) precedent sale transactions. Derivative Liability The fair value of the derivative liability was determined using a "with and without" scenario. Under this methodology, valuations are performed on the convertible note inclusive of all terms as well as for a convertible note that has identical terms and features but excluding the conversion option. The difference between the two valuations is equal to the fair value of the conversion option. Significant increases or decreases in these inputs would result in a significant change in the fair value of the derivative liability. Contingent Consideration The fair value of contingent consideration is based on two components - a regulatory milestone and commercial milestone. For the regulatory milestone, the expected regulatory earn out payment was discounted taking into account (a) the Company's cost of debt, (b) the expected timing of the payment and (c) subordinate nature of the earn out obligation. The fair value of the commercial milestone was determined using a Monte Carlo simulation. This simulation assumed a risk-neutral framework, whereby future net revenue was simulated over the earn out period using the Geometric Brownian Motion. For each simulation path, the earn out payments were calculated based on the achievement of the revenue milestone and then were discounted to the valuation date. Significant increases or decreases in these unobservable inputs and/or the probability of achievement of these milestones would result in a significant change in the fair value of the contingent consideration. Treximet Secured Notes The fair value of the Company's Treximet Secured Notes was estimated using a discounted cash flow model. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the periods (in thousands). As of and for the As of and for the Six months Ended Year Ended June 30, 2016 December 31, 2015 Derivative liability: Balance at beginning of year $ 9,165 $ - Initial measurement of derivative liability - 28,480 Remeasurement adjustments - gains included in earnings (6,953) (19,315) Ending balance $ 2,212 $ 9,165 Contingent consideration: Balance at beginning of year $ 14,055 $ - Initial measurement of contingent consideration - 14,193 Remeasurement adjustments - gains included in earnings (9,474) (138) Ending balance $ 4,581 $ 14,055

4. Inventory

4. Inventory	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
4. Inventory	Note 4. Inventory Inventories are stated at the lower of cost or market. Inventories consist of the following (in thousands): June 30, December 31, 2016 2015 Raw materials $ 1,787 $ 2,047 Work-in-process 196 1,425 Finished goods 11,407 9,011 Inventory, gross 13,390 12,483 Reserve for obsolescence (3,697) (2,448) Inventory, net $ 9,693 $ 10,035

5. Goodwill and Intangible Asse

5. Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
5. Intangible Assets and Goodwill	Note 5. Goodwill and Intangible Assets Goodwill consists of the following (in thousands): Amount Balance at December 31, 2014 $ 44,900 Goodwill acquired - Zohydro ER 180 Measurement period adjustments - Zohydro ER 6,949 Measurement period adjustments - Treximet 2,836 Balance at December 31, 2015 54,865 Measurement period adjustments - Zohydro ER (499) Balance at June 30, 2016 $ 54,366 Intangible assets consist of the following (dollars in thousands): As of June 30, 2016 Weighted Gross Carrying Accumulated Net Carrying Average Life Amount Impairment Amortization Amount Unamortized intangible assets: In-process research and development Indefinite $ 26,500 $ - $ - $ 26,500 Total unamortized intangible assets 26,500 - - 26,500 Amortized intangible assets: Brand 0.0 years 891 (891) - - Product licenses 8.4 years 2,846 - (1,049) 1,797 Supplier contracts 5.0 years 583 - (19) 564 Acquired developed technologies 7.7 years 376,237 (611) (163,724) 211,902 Total amortized intangible assets 380,557 (1,502) (164,792) 214,263 Total intangible assets $ 407,057 $ (1,502) $ (164,792) $ 240,763 As of December 31, 2015 Weighted Gross Carrying Accumulated Net Carrying Average Life Amount Impairment Amortization Amount Unamortized intangible assets: Trademark rights Indefinite $ 400 $ (400) $ - $ - In-process research and development Indefinite 29,500 (3,000) - 26,500 Total unamortized intangible assets 29,900 (3,400) - 26,500 Amortized intangible assets: Patents 11.0 years 500 (106) (394) - Brand 8.0 years 3,887 - (2,794) 1,093 Product licenses 10.5 years 17,581 (10,059) (5,542) 1,980 Non-compete and supplier contracts 5.6 years 6,337 - (6,337) - Acquired developed technologies 4.1 years 391,624 (10,787) (124,467) 256,370 Total amortized intangible assets 419,929 (20,952) (139,534) 259,443 Total intangible assets $ 449,829 $ (24,352) $ (139,534) $ 285,943 As of June 30, 2016, the weighted average remaining life for our definite-lived intangible assets in total was approximately 7.7 years. In connection with the Zohydro ER acquisition (see Note 12, Business Combinations, During 2016, the Company recorded impairment charges of approximately $891,000 against acquired brands and approximately $611,000 against acquired developed technologies. This impairment during the three and six months ended June 30, 2016 was due to a review of the Company's product portfolio which resulted in the discontinuation of products that were not profitable. During 2015, the Company recorded impairment charges of approximately $400,000 against trademark rights, $3.0 million against IPR&D, $106,000 against patents, $10.1 million against product licenses and $10.8 million against acquired developed technologies. The Company decided during the year ended December 31, 2015 to focus its efforts on certain core products and no longer promote certain other products which are not aligned with this business strategy or due to the termination of certain contractual agreements. Estimated amortization expense related to intangible assets with definite lives for each of the five succeeding years and thereafter is as follows (in thousands): Amount 2016 (July - December) $ 41,251 2017 80,835 2018 15,608 2019 6,324 2020 6,237 Thereafter 64,008 Total $ 214,263 Amortization expense was $20.7 million and $44.3 million for the three and six months ended June 30, 2016, respectively, of which, $19,000 is included in cost of product sales in the unaudited condensed consolidated statements of operations. Amortization expense was $22.2 million and $40.6 million for the three and six months ended June 30, 2015, respectively.

6. Accrued Allowances

6. Accrued Allowances	6 Months Ended
	Jun. 30, 2016
Accrued Liabilities [Abstract]
6. Accrued Allowances	Note 6. Accrued Allowances Accrued allowances consist of the following (in thousands): June 30, December 31, 2016 2015 Accrued returns allowance $ 18,326 $ 11,896 Accrued price adjustments 31,368 44,100 Accrued government program rebates 6,052 6,682 Total $ 55,746 $ 62,678

7. Debt

7. Debt	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
7. Debt	Note 7. Debt Debt, net of discounts and deferred financing costs, consists of the following (in thousands): June 30, December 31, 2016 2015 Wells Fargo Credit Facility $ 14,000 $ 15,000 4.25% Convertible Notes 101,873 99,776 Treximet Secured Notes 187,997 202,050 Total outstanding debt 303,870 316,826 Less current portion 3,789 13,335 Long term debt outstanding $ 300,081 $ 303,491 Credit Facilities : Wells Fargo On August 21, 2015, the Company entered into a Credit Agreement with Wells Fargo, National Association, as Administrative Agent and the lenders party thereto for a $50.0 million, three-year senior secured revolving credit facility (the "Wells Fargo Credit Facility"), which may be increased by an additional $20.0 million in the lenders' discretion. The Company's obligations under the Wells Fargo Credit Facility are secured by, among other things, the Company's and certain subsidiaries' inventory and accounts receivable, and are guaranteed by certain of the Company's subsidiaries. As of June 30, 2016 and December 31, 2015, $14.0 million and $15.0 million, respectively, were outstanding under the Wells Fargo Credit Facility and classified as Credit facilities - long-term on the unaudited condensed consolidated balance sheets. Availability of borrowings under the Wells Fargo Credit Facility from time to time is subject to a borrowing base calculation based upon a valuation of the Company's eligible inventories and eligible accounts receivable, each multiplied by an applicable advance rate. Borrowing availability under the Wells Fargo Credit Facility was $11.6 million as of June 30, 2016. Borrowings under the Wells Fargo Credit Facility will bear interest at the Company's election at (i) the rate of LIBOR plus 1.5% to LIBOR plus 2.0% or (ii) the Base Rate (as defined in the Wells Fargo Credit Facility) plus 0.5% to the Base Rate plus 1.0%. The applicable interest rate margin percentage will be determined by the average daily availability of borrowings under the Wells Fargo Credit Facility. In addition, the Company is required to pay a commitment fee on the undrawn commitments under the Wells Fargo Credit Facility from time to time at an applicable rate of 0.25% per annum according to the average daily balance of borrowings under the Wells Fargo Credit Facility during any month. The Wells Fargo Credit Facility contains representations and warranties, affirmative, restrictive and financial covenants, and events of default (applicable to the Company and certain of its subsidiaries) which are customary for credit facilities of this type. The effective interest rate was 3.5% at June 30, 2016. MidCap Funding V, LLC On August 21, 2015, the Company terminated the Amended and Restated Credit Agreement, dated as of May 8, 2013, as amended, by and among MidCap Funding IV, LLC, and certain subsidiaries of the Company and repaid all outstanding loans thereunder (the "MidCap Credit Facility"). The MidCap Credit Facility provided for a $20.0 million revolving loan commitment and a $20.0 million uncommitted accordion feature. The obligations under the MidCap Credit Facility were secured by a first priority security interest in the Company's accounts, inventory, deposit accounts, securities accounts, securities entitlements, permits and cash and bore interest at a rate equal to the sum of the LIBOR (with a floor of 1.5%) plus an applicable margin of 7.50% per annum. The MidCap Credit Facility has been closed and has been replaced with the Wells Fargo Credit Facility. Convertible Notes: 4.25% Convertible Notes On April 22, 2015, the Company issued $130.0 million aggregate principal amount 4.25% Convertible Senior Notes (the "4.25% Convertible Notes"). The 4.25% Convertible Notes mature on April 1, 2021, unless earlier converted, redeemed or repurchased. The Company received net proceeds from the sale of the 4.25% Convertible Notes of $125.0 million, after deducting placement agent fees and commissions and offering expenses payable by the Company. Interest on the 4.25% Convertible Notes is payable on April 1 and October 1 of each year, beginning October 1, 2015. The discounted note balance of $105.6 million and $103.8 million is recorded as long-term debt on the unaudited condensed consolidated balance sheet as of June 30, 2016 and December 31, 2015, respectively. The 4.25% Convertible Notes are governed by the terms of an indenture (the "Indenture"), between the Company and Wilmington Trust, National Association (the "Trustee"), each of which were entered into on April 22, 2015. The Company may not redeem the 4.25% Convertible Notes prior to April 6, 2019. However, the holders may convert their 4.25% Convertible Notes at any time prior to the close of business on the business day immediately preceding January 1, 2021 only under certain circumstances. Upon conversion, the Company will deliver a number of shares of the Company's common stock equal to the conversion rate in effect on the conversion date. The initial conversion rate will be 87.2030 shares of the Company's common stock for each $1,000 principal amount of the 4.25% Convertible Notes, which represents an initial conversion price of approximately $11.47 per share. Following certain corporate transactions that can occur on or prior to the stated maturity date, the Company will increase the conversion rate for a holder that elects to convert its 4.25% Convertible Notes in connection with such a corporate transaction. In addition to the holder option to convert, the 4.25% Convertible Notes may be redeemed upon the occurrence of certain events. The Company incurred debt issuance costs of approximately $5.0 million, which have been deferred and which are being amortized over a six-year period, unless earlier converted, in which case the unamortized costs would be recorded in additional paid-in capital. The effective interest rate on the 4.25% Convertible Notes, including debt issuance costs and bifurcated conversion option derivative (discussed below), is 9.7%. The Company is required to separate the conversion option in the 4.25% Convertible Notes under ASC 815, Derivatives and Hedging Debt with Conversion and Other Options In addition to the bifurcated conversion feature, there are two other features that require bifurcation but contain de minimis value. Although the probability was considered remote, at the time of the transaction, that (1) additional interest would be incurred for failure to file financial statements timely or (2) the 4.25% Convertible Notes would be redeemed by the Company following the failure of the Zohydro ER acquisition to close prior to July 8, 2015. The Company will continue to monitor the timely filing of its financial statements for any additional interest that could be incurred. Interest expense was $2.2 million and $4.5 million for the three and six months ended June 30, 2016, respectively and $1.7 million for the three and six months ended June 30, 2015, respectively, related to the 4.25% Convertible Notes. Change in fair value of derivative liability was income of $159,000 and $7.0 million for the three and six months ended June 30, 2016, respectively and $8.7 million for the three and six months ended June 30, 2015. Accrued interest on the 4.25% Convertible Notes was approximately $1.4 million as of June 30, 2016 and December 31, 2015, respectively. The Company recorded debt issuance costs of $5.0 million, which are being amortized using the effective interest method. As of June 30, 2016, $672,000 and $3.7 million are recorded on the unaudited condensed consolidated balance sheet in Prepaid expenses and other current assets and Convertible Notes - long-term, respectively, in accordance with ASU 2015-03. As of June 30, 2016 and December 31, 2015, the Company had outstanding borrowings of $130.0 million related to the 4.25% Convertible Notes, respectively. 8.00% Convertible Notes On April 16, 2015, the Company entered into an agreement (the "Inducement Agreement") with all of the holders of its 8.00% Convertible Senior Notes due 2019 (the "8.00% Convertible Notes") representing $65.0 million aggregate principal amount, pursuant to which such holders agreed to the removal of substantially all of the material restrictive covenants in the indenture governing the 8.00% Convertible Notes and to convert their notes in accordance with the provisions of such indenture in exchange for an aggregate of 2,338,129 shares of the Company's common stock (the "Inducement Shares"). The Company recorded $19.5 million as cost of inducement expense in the year ended December 31, 2015. The issuance of the Inducement Shares was made pursuant to an exemption from the registration requirements of the Securities Act contained in Section 4(a)(2). Each of the holders entering into the Inducement Agreement agreed not to sell the shares of our common stock to be issued to it upon conversion of the 8.00% Convertible Notes for 145 days (the "lock-up period") subject to exceptions, including in connection with settling existing short positions with respect to the 8.00% Convertible Notes and underwritten public offerings pursuant to existing registration rights with respect to such shares of our common stock. In addition, such holders are permitted to dispose of up to 80 percent of such shares of our common stock remaining after settling existing short positions prior to the end of the lock-up period in specified intervals. During the year ended December 31, 2015, the holders of the 8.00% Convertible Notes converted the outstanding notes at a conversion price of $3.60 per share. The Company issued 18.1 million shares pursuant to this conversion and retired the $65.0 million of the outstanding 8.00% Convertible Notes. Interest expense was $0 for the three and six months ended June 30, 2016, respectively and $302,000 and $1.6 million for the three and six months ended June 30, 2015, respectively related to the 8.00% Convertible Notes. As of June 30, 2016 and December 31, 2015, the Company had outstanding borrowings of $0 related to the 8.00% Convertible Notes, respectively. Interest expense of $547,000 that accrued during the year ended December 31, 2015 was forfeited and recorded in additional paid-in capital. During the year ended December 31, 2015, the Company recorded the remaining $5.4 million unamortized deferred financing costs related to the 8.00% Convertible Notes in additional paid-in capital. Secured Notes: Treximet Note Offering On August 19, 2014, the Company issued $220.0 million aggregate principal amount of its 12% Senior Secured Notes due 2020 (the "Treximet Secured Notes") pursuant to an Indenture (the "August 2014 Indenture") dated as of August 19, 2014 among the Company, certain of its subsidiaries (the "Guarantors") and U.S. Bank National Association (the "August 2014 Trustee"), as trustee and collateral agent. The Treximet Secured Notes mature on August 1, 2020 and bear interest at a rate of 12% per annum, payable in arrears on February 1 and August 1 of each year (each, a "Payment Date"), beginning on February 1, 2015. On each Payment Date, commencing August 1, 2015, the Company began paying installments of principal of the Treximet Secured Notes in an amount equal to 50% of net sales of Treximet for the two consecutive fiscal quarters immediately preceding such Payment Date (less the amount of interest paid on the Treximet Secured Notes on such Payment Date). At each month-end beginning with January 2015, the net sales of Treximet will be calculated, the monthly interest accrual amount will then be deducted from the net sales and this resulting amount will be recorded as the current portion of the Treximet Secured Notes. If the Treximet net sales less the interest due at each month-end of each six-month period does not result in any excess over the interest due, no principal payment must be paid at that time. The remaining balance outstanding on the Treximet Secured Notes will be due on the maturity date, which is August 1, 2020. As of June 30, 2016 and December 31, 2015, the Company classified $5.5 million and $15.0 million, respectively, of the Treximet Secured Notes as a current liability and $189.6 million and $194.9 million as a non-current liability, respectively. The Treximet Secured Notes are unconditionally guaranteed, jointly and severally, by the Guarantors. The Treximet Secured Notes and the guarantees of the Guarantors are secured by a continuing first-priority security interest in substantially all of the assets of the Company and the Guarantors related to Treximet other than inventory and certain inventory related assets, including accounts arising from the sale of the inventory. The Company may redeem the Treximet Secured Notes at its option, in whole at any time or in part from time to time, on any business day, on not less than 30 days nor more than 60 days' prior notice provided to each holder's registered address. If such redemption was prior to August 1, 2015, the redemption price would have been equal to the greater of (i) the principal amount of the Treximet Secured Notes being redeemed and (ii) the present value, discounted at the applicable treasury rate of the principal amount of the Treximet Secured Notes being redeemed plus 1.00%, of such principal payment amounts and interest at the rate per annum shown above on the outstanding principal balance of the Treximet Secured Notes being redeemed assuming the principal balances were amortized at the times and in the assumed amounts set forth on Schedule A to the August 2014 Indenture. If such redemption occurs (i) on or after August 1, 2015 and prior to August 1, 2016, the redemption price will equal 106% of the outstanding principal amount of August Notes being redeemed plus accrued and unpaid interest thereon, (ii) on or after August 1, 2016 and prior to August 1, 2017, the redemption price will equal 103% of the outstanding principal amount of the August Notes being redeemed plus accrued and unpaid interest thereon and (iii) on or after August 1, 2017, the redemption price will equal 100% of the outstanding principal amount of the Treximet Secured Notes being redeemed plus accrued and unpaid interest thereon. The August 2014 Indenture contains covenants that limit the ability of the Company and the Guarantors to, among other things: incur certain additional indebtedness; pay dividends on, redeem or repurchase stock or make other distributions in respect of its capital stock; repurchase, prepay or redeem certain indebtedness; make certain investments; create restrictions on the ability of the Guarantors to pay dividends to the Company or make other intercompany transfers; create liens; transfer or sell assets; consolidate, merge or sell or otherwise dispose of all or substantially all of its assets and enter into certain transactions with affiliates. Upon the occurrence of certain events constituting a change of control, the Company is required to make an offer to repurchase all of the Treximet Secured Notes (unless otherwise redeemed) at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest, if any to the repurchase date. The August 2014 Indenture provides that an Event of Default (as defined in the August 2014 Indenture) will occur if, among other things, (a) the Company defaults in any payment of interest on any note when due and payable, and such default continues for a period of 30 days; (b) the Company defaults in the payment of principal of or premium, if any, on any note when due and payable on the maturity date, upon declaration of acceleration or otherwise, or to pay the change of control repurchase price, when due and payable, and such default continues for a period of five days; (c) failure to make a repurchase offer in the event of a change in control when required under the August 2014 Indenture, which continues for three business days; (d) the Company or any Guarantor fails to comply with certain covenants after receiving written notice from the August 2014 Trustee or the holders of more than 25% of the principal amount of the outstanding Treximet Secured Notes; (e) the Company or any Guarantor defaults with respect to other indebtedness for borrowed money in excess of $8.0 million and such default is not cured within 30 days after written notice from the August 2014 Trustee or the holders of more than 25% of the principal amount of the outstanding Treximet Secured Notes; (f) the Company or any Guarantor has rendered against it a final judgment for the payment of $8.0 million (or its foreign currency equivalent) or more (excluding any amounts covered by insurance) under certain circumstances; (g) certain bankruptcy, insolvency, liquidation, reorganization or similar events occur with respect to the Company or any Guarantor; (h) a guarantee of the Treximet Secured Notes (with certain exceptions) is held to be unenforceable or invalid in a judicial proceeding or ceases to be in full force and effect or a Guarantor disaffirms its obligations under its guarantee of the Treximet Secured Notes; and (i) certain changes in control of a Guarantor. Interest expense related to the Treximet Secured Notes was $5.9 million and $11.9 million, for the three and six months ended June 30, 2016, respectively and $6.6 million and $13.2 million for the three and six months ended June 30, 2015, respectively. Accrued interest on the Treximet Secured Notes was approximately $9.8 million and $10.5 million as of June 30, 2016 and December 31, 2015, respectively. The Company recorded debt issuance costs of $7.8 million, which are being amortized using the effective interest method. As of June 30, 2016, $1.3 million and $4.1 million are recorded on the unaudited condensed consolidated balance sheet in Treximet Secured Notes - current and Treximet Secured Notes - long-term, respectively, in accordance with ASU 2015-03. On April 13, 2015, the Company furnished to the holders of the Treximet Secured Notes a Consent Solicitation Statement (the "Consent Solicitation"). The Consent Solicitation sought the consent of the holders of a majority of the principal amount of the Treximet Secured Notes to amend the Indenture, dated August 19, 2014 (the "Indenture"), among the Company, certain subsidiaries of the Company, as guarantors, and U.S. Bank National Association, that governs the Treximet Secured Notes to allow the Company to, among other things, incur up to $42.2 million of additional debt (the "Indenture Amendments") in exchange for a consent fee in cash equal to 1% of the principal amount of consenting Treximet Secured Notes (the "Consent Fees"). Through April 28, 2015, the Company received consent to the Indenture Amendments from holders representing approximately 98% of the principal amount of the Notes, and subsequently paid the holders approximately $2.2 million during the year ended December 31, 2015. The cost of inducement of $403,000 and $1.3 million is recorded in Treximet Secured Notes - current and Treximet Secured Notes - long-term, respectively, in accordance with ASU 2015-03, on the unaudited condensed consolidated balance sheet at June 30, 2016 and are being amortized using the effective interest method. The following table represents the future maturity schedule of the outstanding debt and line of credit at June 30, 2016 (in thousands): Amount 2016 $ 5,498 2017 - 2018 14,000 2019 - 2020 189,581 Thereafter 130,000 Total maturities 339,079 Less: Note discount (24,442) Deferred financing costs (10,767) Total outstanding debt $ 303,870

8. Stockholders' Equity

8. Stockholders' Equity	6 Months Ended
	Jun. 30, 2016
Stockholders Equity
8. Stockholders' Equity	Note 8. Stockholders' Equity Controlled Equity Offering. On November 7, 2014, the Company entered into a controlled equity offering sales agreement (the "Sales Agreement") with Cantor Fitzgerald & Co. ("Cantor") pursuant to which the Company could issue and sell shares of its common stock having an aggregate offering price of up to $100,000,000, pursuant to an effective registration statement on Form S-3 (No. 333-200005), from time to time through Cantor, acting as agent. The Company will pay Cantor a commission rate of 3.0% of the gross sales price per share of the common stock sold through Cantor as agent under the Sales Agreement. During the three and six months ended June 30, 2016, the Company sold 23,921,343 shares of common stock under the Sales Agreement, at an average price of approximately $0.52 per share, for gross proceeds of $12.4 million and net proceeds of $12.0 million, after deducting Cantor's commission. The Company received $11.3 million during the six months ended June 30, 2016 and the remaining $700,000 was received in July 2016. As of June 30, 2016, approximately $87.6 million of common stock remained available to be sold under this facility. Warrants As of June 30, 2016, the Company has approximately 469,000 outstanding warrants in connection with the acquisition of Somaxon in March 2013. Stock Option Plans In June 2015, the Company's shareholders approved the 2015 Omnibus Incentive Plan (the "2015 Plan"). The maximum number of shares that can be offered under this plan is 7.0 million. Incentives may be granted under the 2015 Plan to eligible participants in the form of (a) incentive stock options, (b) non-qualified stock options, (c) restricted shares, (d) restricted stock units, (e) share appreciation rights and (f) other share-based awards. Incentive grants under the 2015 Plan generally vest based on four years of continuous service and have 10-year contractual terms. Stock-Based Compensation Stock-based compensation expense is recognized, net of an estimated forfeiture rate, on a straight-line basis over the requisite service period, which is the vesting period. The Company currently uses the Black-Scholes option pricing model to determine the fair value of its stock options and the Monte Carlo option pricing model to determine the fair value of its performance stock options. The determination of the fair value of stock-based payment awards on the date of grant using an option pricing model is affected by the Company's stock price, as well as assumptions regarding a number of complex and subjective variables. These variables include the Company's expected stock price volatility over the term of the awards, actual employee exercise behaviors, risk-free interest rate and expected dividends. The weighted average fair value of stock options granted during the periods and the assumptions used to estimate those values using the Black-Scholes option pricing mode were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Weighted average expected stock price volatility 78.2% 73.2% 71.7% 73.3% Estimated dividend yield - - - - Risk-free interest rate 1.4% 1.6% 1.4% 1.6% Expected life of option (in years) 6.2 6.3 6.2 6.3 Weighted average grant date fair value per option $ 0.36 $ 5.16 $ 1.26 $ 5.59 The expected stock price volatility for the stock options is based on historical volatility of the Company's stock. The Company has not paid and does not anticipate paying cash dividends; therefore, the expected dividend rate is assumed to be 0%. The risk-free rate was based on the U.S. Treasury yield curve in effect at the time of grant commensurate with the expected life assumption. The expected life of the stock options granted was estimated based on the historical exercise patterns over the option lives. Stock-based compensation expense was $770,000 and $2.2 million for the three and six months ended June 30, 2016, respectively and $1.2 million and $3.1 million for the three and six months ended June 30, 2015, respectively. Stock-based compensation expense for the periods presented is included within the selling, general and administrative expense in the unaudited condensed consolidated statements of operations. Stock Options As of June 30, 2016, approximately 9.2 million options are outstanding that have been issued to current officers and employees under the Company's 2007 Stock Option Plan, the 2009 Plan and the 2015 Plan. As of June 30, 2016, there was approximately $13.8 million of total unrecognized compensation cost related to non-vested stock options issued to employees and directors of the Company, which is expected to be recognized ratably over a weighted-average period of 2.75 years. During the year ended December 31, 2015, the Company's Board of Directors awarded a total of 485,000 options ("Performance Options") to certain of the Company's executive officers. A determination of whether and how many of the Performance Options vest and become exercisable will be made on August 14, 2018 (the "Measuring Date") (the date that is three-years from the grant date) based upon the average closing bid price of the Company's Common Stock for the twenty trading days ending on the Measuring Date. If the average closing bid price of the Company's Common Stock for the twenty trading days immediately ending on the Measuring Date is (i) less than $20 per share, no Performance Options vest, (ii) $20 per share or more and less than $25 per share, then 50% of the Performance Options vest, (iii) $25 per share or more and less than $30 per share, then 75% of the Performance Options vest, (iii) $30 per share or more and less than $35 per share, then 100% of the Performance Options vest, and (iv) $35 per share or more, then 150% of the Performance Options vest. 50% of any such vested options shall be exercisable on the Measuring Date and the remaining 50% of such vested options shall be exercisable one year after the Measuring Date. Upon a change of control of the Company after the Measuring Date, any vested but exercisable Performance Options shall become exercisable. Upon a change of control prior to the Measuring Date, the Measuring Date shall become the effective date of the change of control and the amount of Performance Options that vest, if any, shall be based upon the common stock price as of the effective date of the change of control. For example, if a change of control occurs prior to August 14, 2018 and the price of the Company's Common Stock for the twenty trading days prior to the effective date of the change of control is $24 per share then each named executive officer would vest in 50% of the Performance Options. The Company utilized a Monte Carlo Simulation to determine the grant date fair value of the Performance Options. Compensation expense is recognized over the performance period of each tranche in accordance with ASC 718, Compensation - Stock Compensation The following table shows the option activity, described above, during the six months ended June 30, 2016 (share and intrinsic values in thousands): Weighted Average Average Remaining Aggregate Exercise Contractual Life Intrinsic Shares Price (years) Value Options Outstanding at December 31, 2015 7,030 $ 5.54 Granted 3,262 1.97 Exercised - - $ - Cancelled (1,091) 5.42 Expired - - Options outstanding at June 30, 2016 9,201 $ 4.29 8.7 $ - Options vested and expected to vest as of June 30, 2016 8,145 $ 4.36 8.6 $ - Options vested and exercisable as of June 30, 2016 2,240 $ 5.25 7.6 $ - Restricted Stock The following table shows the Company's non-vested restricted stock activity during the six months ended June 30, 2016 (share and intrinsic values in thousands): Weighted Average Aggregate Grant Date Fair Intrinsic Shares Value Value Non-vested restricted stock outstanding at December 31, 2015 56 $ 3.00 Granted - - Vested (56) 3.00 $ 63 Forfeited - - Non-vested restricted stock outstanding at June 30, 2016 - - As of June 30, 2016, there was $0 of total unrecognized compensation cost related to non-vested restricted stock issued to employees and directors of the Company due to the acceleration of restricted stock expense related to the restructuring during the year ended December 31, 2015.

9. Income Taxes

9. Income Taxes	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
9. Income Taxes	Note 9. Income Taxes The Company reported an income tax benefit of $10,000 and tax expense of $25,000 for the three and six months ended June 30, 2016, respectively and a benefit of $3.6 million and $8.2 million for the three and six months ended June 30, 2015, respectively. The Company's effective tax rate was 0.0% for the six months ended June 30, 2016, compared to an estimated annual effective rate of 12.7% for the six months ended June 30, 2015. The change in tax rate for the six months ended June 30, 2016 was primarily due to the Company having a full valuation allowance as of and for the six months ended June 30, 2016. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of the assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. All deferred tax assets are subject to a full valuation allowance as of December 31, 2015. The Company evaluates the realizability of its U.S. net deferred tax assets based on all available evidence, both positive and negative, on a quarterly basis. The realization of net deferred tax assets is dependent on the Company's ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. The Company weighed both positive and negative evidence and determined that due to recent losses there is a continued need for a full valuation allowance against all of the Company's deferred tax assets as of June 30, 2016 and December 31, 2015. Our gross deferred tax assets are comprised primarily of U.S. Federal net operating losses and accruals. A substantial portion of the deferred tax liability at June 30, 2016 relates to the difference between the financial statement and tax basis of the intangibles acquired in the Cypress acquisition. The deferred tax liability related to these Cypress intangibles is reduced on an annual basis by the financial statement amortization of such intangibles. Income tax returns subject to review by taxing authorities include 2012, 2013 and 2014.

10. Commitments and Contingenci

10. Commitments and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
10. Commitments and Contingencies	Note 10. Commitments and Contingencies Legal Proceedings GlaxoSmithKline Arbitration The Company is subject to various claims and litigation arising in the ordinary course of business. The Company is currently involved in an arbitration proceeding with GSK. GSK has claimed that the Company owes GSK damages relating to an alleged breach by the Company of a covenant contained in the Asset Purchase and Sale Agreement dated as of May 13, 2014 by and among GSK and its affiliates and the Company pertaining to a pre-existing customer agreement. The Company has asserted counterclaims, defenses and claims related to breaches of a Supply Agreement between the parties. The Company and GSK have entered into an Interim Settlement Agreement under which the Company will continue to make payments to GSK and escrow additional funds and pursuant to which the parties have submitted the matter to binding arbitration. The Company has paid to GSK approximately $10.3 million through June 30, 2016 and has deposited an additional approximately $6.2 million into an escrow account on account of the settlement of disputed amounts. The amounts paid by the Company to GSK and escrowed represent approximately 46% of the amounts GSK claims are owed to them as a result of the Company's alleged breach. The amounts paid and escrowed by the Company for GSK claims are consistent with the amounts accrued by the Company for managed care rebates and fees during the three and six months ended June 30, 2016 and 2015. An arbitration hearing was held in April 2016 and a second hearing is scheduled for October 2016. A decision by the arbitrators is expected no later than February 2017. While the Company intends to vigorously contest GSK's allegations that its damages are a result of the Company's breach and that they are compensable under the Asset Purchase and Sale Agreement or otherwise, any material liability resulting from this claim could negatively impact the Company's financial results. Recro Gainseville LLC v. Actavis Laboratories FL, Inc. Recro Gainseville LLC v. Alvogen Malta Operations Ltd. Recro is the owner of U.S. Patent Nos. 6,228,398 ("the '398 Patent") and 6,902,742 ("the '742 Patent"), both of which expire on November 1, 2019, and U.S. Patent No. 9,132,096 ("the '096 Patent"), which expires on September 12, 2034. All three patents (collectively, "the Orange Book Patents") are listed in the United States Food and Drug Administration's ("FDA's") Orange Book: Approved Drug Products with Therapeutic Equivalence Evaluations ("Orange Book") as covering Zohydro ER. Actavis and Alvogen each filed Abbreviated New Drug Applications ("ANDAs") with the FDA seeking approval of proposed generic versions of Zohydro ER in 10, 15, 20, 30, 40, and 50 mg dosage strengths. Those ANDAs and amendments thereto contained certifications asserting that the Orange Book Patents are invalid and not infringed. Pursuant to the Hatch-Waxman Act, Recro brought suit against Actavis on September 3, 2014 and May 21, 2015 for declaratory judgment of infringement of the '398 and '742 Patents, and on December 23, 2015 for declaratory judgment of infringement of the '096 Patent. In response, Actavis filed counterclaims seeking declaratory judgments of noninfringement and invalidity of all three Orange Book Patents. Pursuant to the Hatch-Waxman Act, Recro brought suit against Alvogen on November 3, 2014 for declaratory judgment of infringement of the '398 and '742 Patents. In response, Alvogen filed counterclaims seeking declaratory judgments of noninfringement and invalidity of those two patents. All of these related cases are pending in the United States District Court for the District of Delaware, where they are currently in the expert discovery stage. The Company continues to monitor the cases closely. Trial is currently scheduled to begin on October 3, 2016. Other Commitments and Contingencies In July 2012 and January 2013, Somaxon settled two patent litigation claims with parties seeking to market generic equivalents of Silenor. As of June 30, 2016, remaining payment obligations owed under these settlement agreements are $1.5 million. The balance is payable in equal annual installments of $250,000 through 2019, and a payment of $500,000, payable in 2017. The current portion is recorded in other liabilities - current and the non-current portion is recorded in other liabilities - long-term on the Company's unaudited condensed consolidated balance sheets as of June 30, 2016. During the first quarter of 2014, the Company settled all claims arising from certain actions by Cypress under the Texas Medicaid Fraud Prevention Act prior to its acquisition by the Company. As part of the settlement, the Company agreed to pay $12.0 million, payable in annual amounts of $2.0 million until the settlement is paid in full. As of June 30, 2016, the net present value of remaining payment obligations owed under this settlement agreement are $5.3 million. The current portion is recorded in other liabilities - current and the non-current portion is recorded in other liabilities - long-term on the Company's unaudited condensed consolidated balance sheet as of June 30, 2016. In connection with the acquisition of Treximet, the Company is responsible for the payment of royalties to Pozen of 18% of Treximet net sales with quarterly minimum royalty amounts of $4.0 million for the calendar quarters commencing on January 1, 2015 and ending on March 31, 2018.

11. Restructuring

11. Restructuring	6 Months Ended
	Jun. 30, 2016
Restructuring and Related Activities [Abstract]
11. Restructuring	Note 11. Restructuring On March 16, 2015, the Company decided to institute an initiative to restructure operations and shut down the Charleston, South Carolina site. This step was done to consolidate operations within the Company's headquarters located in Morristown, New Jersey. The Company incurred $0 during the three and six months ended June 30, 2016, and a reduction of $108,000 and a charge of $1.2 million for the three and six months ended June 30, 2015, respectively, related to the restructuring. The charge during the six months ended June 30, 2015 was comprised of $545,000 in severance related cash expenses, and $653,000 for the modification and accelerated vesting of options and awards under existing employee agreements. Associated severance payments were paid by May 31, 2016. A summary of accrued restructuring costs, included as a component of accounts payable and accrued expenses on the unaudited condensed consolidated balance sheets, is as follows (in thousands): December 31, 2015 Charges Cash Non-cash June 30, 2016 Restructuring Costs $ 104 $ - $ (104) $ - $ - December 31, 2014 Charges Cash Non-cash June 30, 2015 Restructuring Costs $ - $ 1,197 $ (28) $ (653) $ 516

12. Business Combinations

12. Business Combinations	6 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
12. Business Combinations	Note 12. Business Combinations Consideration paid by the Company for the business it purchased is allocated to the assets and liabilities acquired based upon their estimated fair values as of the date of the acquisition. The excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed is recorded as goodwill. Zohydro ER Acquisition On April 24, 2015, Pernix completed the acquisition of the pharmaceutical product line, Zohydro ER, including an abuse-deterrent pipeline and all related intellectual property, a favorable supplier contract and an associated liability payable, and a specified quantity of inventory associated therewith, from Zogenix, Inc. ("Zogenix"). There were no other tangible or intangible assets acquired and liabilities assumed related to the Zohydro ER product line from Zogenix. The total purchase price consisted of an upfront cash payment of $80.0 million including a deposit of $10.0 million in an escrow fund, stock consideration of $11.9 million issued in common stock of Pernix, $927,000 for a specified quantity of inventory, and regulatory and commercial milestones of up to $283.5 million including a $12.5 million milestone payment upon approval of ZX007 abuse-deterrent extended-release hydrocodone tablet and up to $271.0 million in potential sales milestones if the Zohydro ER product line achieves certain agreed-upon net sales targets. The Zohydro ER product line acquisition was accounted for as a business combination in accordance with ASC 805 Business Combinations Treximet Acquisition On August 20, 2014, the Company, through a wholly owned subsidiary PIL, formerly known as Worrigan Limited, completed the acquisition of the U.S. intellectual property rights to the pharmaceutical product, Treximet, from GSK. There were no other tangible or intangible assets acquired or liabilities assumed related to Treximet intellectual property from GSK. The total purchase price consisted of an upfront cash payment of $250.0 million and $1.95 million paid to GSK upon receipt of an updated Written Request for pediatric exclusivity from the FDA. The Company funded this acquisition with $220.0 million in debt, plus approximately $32.0 million from available cash. The Treximet acquisition was accounted for as a business combination in accordance with ASC 805. The Company finalized the purchase price allocation in the quarter ended September 30, 2015 and recorded the measurement period adjustments in accordance with ASU 2015-16.

13. Supplemental Cash Flow Info

13. Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2016
Supplemental Cash Flow Elements [Abstract]
13. Supplemental Cash Flow Information	Note 13. Supplemental Cash Flow Information Six Months Ended June 30, 2016 2015 Supplemental disclosures of Cash Flow Information: Cash paid for income taxes, net $ 227 $ 68 Cash paid for interest 15,485 14,228 Supplemental disclosures of Non-cash Investing and Financing Activities: Subscription receivable under the controlled equity offering 700 - Conversion of 8.00% Convertible Notes - 60,172 Issuance of 1,682,086 shares to Zogenix for Zohydro ER acquisition - 11,926

14. Recent Accounting Pronounce

14. Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2016
Accounting Changes and Error Corrections [Abstract]
14. Recent Accounting Pronouncements	Note 14. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases Leases Leases In January 2016, the FASB issued Accounting Standards Update ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In July 2015, the FASB issued, ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Revenue Recognition Revenue from Contracts with Customers Revenue from Contracts with Customers, Deferral of the Effective Date Revenue from Contracts with Customers, Principal versus Agent Considerations Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing There were no other recent accounting pronouncements that have not yet been adopted by the Company that are expected to have a material impact on the Company's consolidated financial statements.

1. Company Overview (Policies)

1. Company Overview (Policies)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Interim Financial Statements	The accompanying unaudited condensed consolidated financial statements included herein have been prepared by the Company in accordance with generally accepted accounting principles in the United States ("GAAP") and under the rules and regulations of the United States Securities and Exchange Commission (SEC) for interim reporting. In management's opinion, the interim financial data presented includes all adjustments (consisting solely of normal recurring items) necessary for fair presentation. All intercompany accounts and transactions have been eliminated. Certain information required by U.S. generally accepted accounting principles has been condensed or omitted in accordance with rules and regulations of the SEC. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for any future period or for the year ending December 31, 2016.
Management's Estimates and Assumptions	The preparation of the unaudited condensed consolidated financial statements requires management to make estimates and assumptions relating to reporting of the assets and liabilities and the disclosure of contingent assets and liabilities to prepare these unaudited condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period in conformity with U.S. generally accepted accounting principles. Significant estimates of the Company include: revenue recognition, sales allowances such as returns on product sales, government program rebates, customer coupon redemptions, wholesaler/pharmacy discounts, product service fees, rebates and chargebacks, sales commissions, amortization, stock-based compensation, the determination of fair values of assets and liabilities in connection with business combinations, and deferred income taxes. Actual results could differ from these estimates.
Subsequent Events	The Company has evaluated all events and transactions since June 30, 2016. The Company did not have any material recognized subsequent events but did have the following non-recognized subsequent events. On July 7, 2016, the Company announced a restructuring of sales force and operations. The reorganization plan included (1) a reduction of 54 sales positions, primarily from the Company's Neurology sales team; (2) prioritization and reorganization of sales territories to reduce the inefficient time that sales representatives spent driving long distances between customers; (3) improvement of the Company's compensation plan to incentivize the field sales staff to increase the frequency of calls on the focused targets; and (4) consolidation of the Neurology and Pain sales forces under one sales management structure to eliminate redundancies. In addition, as part of this initiative, the Company reduced its administrative staff by 6 employees. On July 26, 2016, the Company announced a reorganization of the Company's senior management team intended to improve Pernix's efficiency, drive profitability and position the Company for future growth. As part of the management change, John Sedor will assume the role of Chief Executive Officer on a permanent basis and pharmaceutical industry veteran, Dr. Graham Miao, who has served as a senior advisor to Pernix's Board of Directors since May, has been appointed as President and Chief Financial Officer. Dr. Miao will report directly to Mr. Sedor and will have responsibility for all functions related to finance, operations, regulatory and scientific affairs. In addition, Sanjay Patel, Chief Financial Officer, Terence Novak, Chief Operating Officer, and Barry Siegel, Senior Vice President and General Counsel are no longer employed by Pernix. These departures do not reflect any disagreements about the Company's financial results or disclosures.
Business Acquisitions	On April 24, 2015, the Company, through a wholly owned subsidiary Pernix Ireland Pain Limited ("PIPL") completed the acquisition of the pharmaceutical product line Zohydro ER, including an abuse-deterrent pipeline and all related intellectual property, a supplier contract, an associated liability payable and a specified quantity of inventory associated therewith, from Zogenix, Inc. ("Zogenix"). See Note 12, Business Combinations, .
Reclassifications	Certain comparative figures have been reclassified to conform to the current year presentation. In accordance with Accounting Standards Update ("ASU") 2015-03, Simplifying the Presentation of Debt Issuance Costs
Principles of Consolidation	The unaudited condensed consolidated financial statements include the accounts of Pernix's wholly-owned subsidiaries Pernix Therapeutics, LLC, Macoven, Cypress, Cypress' subsidiary, Hawthorn Pharmaceuticals, Inc., Pernix Ireland Limited and Pernix Ireland Pain Limited. Transactions between and among the Company and its consolidated subsidiaries are eliminated.
Fair Value of Financial Instruments	A financial instrument is defined as cash equivalent, evidence of an ownership interest in an entity, or a contract that creates a contractual obligation or right to deliver or receive cash or another financial instrument from another party. The Company's financial instruments consist primarily of cash equivalents, notes receivable, and our credit facility. The carrying values of these assets and liabilities approximate their fair value due to their short-term nature.
Significant Customers	The Company's customers consist of drug wholesalers, retail drug stores, mass merchandisers and grocery store pharmacies in the United States. The Company primarily sells its products directly to large national drug wholesalers, which in turn resell the products to smaller or regional wholesalers, retail pharmacies, chain drug stores, and other third parties.
Cost of Product Sales	In connection with the acquisitions of Cypress and Somaxon, the Company adjusted the predecessor cost basis, increasing inventory to fair value as required by Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures
Earnings per Share	Basic net income (loss) per common share is the amount of net income (loss) for the period divided by the weighted average shares of common stock outstanding during the reporting period. Diluted income (loss) per common share is the amount of income (loss) for the period plus interest expense on convertible debt divided by the sum of weighted average shares of common stock outstanding during the reporting period and weighted average shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares.

1. Company Overview (Tables)

1. Company Overview (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Significant Customers	The following tables list the Company's customers that individually comprised greater than 10% of total gross product sales for the three and six months ended June 30, 2016 and 2015, or 10% of total accounts receivable as of June 30, 2016 and December 31, 2015. Gross Product Sales: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 McKesson Corporation 35% 37% 36% 41% AmerisourceBergen Drug Corporation 31% 29% 32% 24% Cardinal Health, Inc. 26% 27% 26% 28% Total 92% 93% 94% 93% Accounts Receivable, net: June 30, December 31, 2016 2015 McKesson Corporation 35% 34% Cardinal Health, Inc. 29% 28% AmerisourceBergen Drug Corporation 27% 30% Total 91% 92%

2. Earnings per Share (Tables)

2. Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2016
Earnings Per Share [Abstract]
Earnings per Share	The following table sets forth the computation of basic and diluted net loss per share (in thousands except per share data): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Numerator: Net loss $ (31,139) $ (32,235) $ (57,075) $ (55,909) Denominator: Weighted-average common shares, basic 66,687 52,399 63,904 45,481 Dilutive effect of stock options - - - - Weighted-average common shares, diluted 66,687 52,399 63,904 45,481 Net loss per share, basic and diluted $ (0.47) $ (0.62) $ (0.89) $ (1.23)
Antidilutive securitites	The following table sets forth the potential common shares that could potentially dilute basic income per share in the future that were not included in the computation of diluted income (loss) per share because to do so would have been anti-dilutive for the periods presented (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 4.25% Convertible Notes 11,334 8,594 11,334 4,383 8.00% Convertible Notes - 4,365 - 11,073 Stock options and restricted stock 9,035 1,524 8,555 1,804 Warrants 469 136 469 176 Total potential dilutive effect 20,838 14,619 20,358 17,436

3. Fair Value Measurement (Tabl

3. Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring and nonrecurring basis	In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company's financial assets that are required to be measured at fair value as of June 30, 2016 and December 31, 2015 (in thousands): As of June 30, 2016 Level 1 Level 2 Level 3 Total Money market fund and trust cash sweep investments (1) $ - $ - $ - $ - Total assets $ - $ - $ - $ - As of December 31, 2015 Level 1 Level 2 Level 3 Total Money market fund and trust cash sweep investments (1) $ 4,367 $ - $ - $ 4,367 Total assets $ 4,367 $ - $ - $ 4,367 (1) The Company's money market and trust cash sweep investments are included in cash and cash equivalents within the Unaudited Condensed Consolidated Balance Sheets. The fair and carrying value of our debt instruments are detailed as follows (in thousands): As of June 30, 2016 As of December 31, 2015 Fair Carrying Fair Carrying Value Value Value Value 4.25% Convertible Notes $ 28,180 $ 101,873 $ 68,637 $ 99,776 Derivative liability 2,212 2,212 9,165 9,165 Contingent consideration 4,581 4,581 14,055 14,055 Treximet Secured Notes 149,280 187,997 179,518 202,050 Total $ 184,253 $ 296,663 $ 271,375 $ 325,046
Fair Value Measurements Using Significant Unobservable Input (Tables)	For the Company's assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3), the following table provides a reconciliation of the beginning and ending balances for each category therein, and gains or losses recognized during the periods (in thousands). As of and for the As of and for the Six months Ended Year Ended June 30, 2016 December 31, 2015 Derivative liability: Balance at beginning of year $ 9,165 $ - Initial measurement of derivative liability - 28,480 Remeasurement adjustments - gains included in earnings (6,953) (19,315) Ending balance $ 2,212 $ 9,165 Contingent consideration: Balance at beginning of year $ 14,055 $ - Initial measurement of contingent consideration - 14,193 Remeasurement adjustments - gains included in earnings (9,474) (138) Ending balance $ 4,581 $ 14,055

4. Inventory (Tables)

4. Inventory (Tables)	6 Months Ended
	Jun. 30, 2016
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories are stated at the lower of cost or market. Inventories consist of the following (in thousands): June 30, December 31, 2016 2015 Raw materials $ 1,787 $ 2,047 Work-in-process 196 1,425 Finished goods 11,407 9,011 Inventory, gross 13,390 12,483 Reserve for obsolescence (3,697) (2,448) Inventory, net $ 9,693 $ 10,035

5. Goodwill and Intangible As25

5. Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Changes in the carrying amount of goodwill	Goodwill consists of the following (in thousands): Amount Balance at December 31, 2014 $ 44,900 Goodwill acquired - Zohydro ER 180 Measurement period adjustments - Zohydro ER 6,949 Measurement period adjustments - Treximet 2,836 Balance at December 31, 2015 54,865 Measurement period adjustments - Zohydro ER (499) Balance at June 30, 2016 $ 54,366
Intangible assets	Intangible assets consist of the following (dollars in thousands): As of June 30, 2016 Weighted Gross Carrying Accumulated Net Carrying Average Life Amount Impairment Amortization Amount Unamortized intangible assets: In-process research and development Indefinite $ 26,500 $ - $ - $ 26,500 Total unamortized intangible assets 26,500 - - 26,500 Amortized intangible assets: Brand 0.0 years 891 (891) - - Product licenses 8.4 years 2,846 - (1,049) 1,797 Supplier contracts 5.0 years 583 - (19) 564 Acquired developed technologies 7.7 years 376,237 (611) (163,724) 211,902 Total amortized intangible assets 380,557 (1,502) (164,792) 214,263 Total intangible assets $ 407,057 $ (1,502) $ (164,792) $ 240,763 As of December 31, 2015 Weighted Gross Carrying Accumulated Net Carrying Average Life Amount Impairment Amortization Amount Unamortized intangible assets: Trademark rights Indefinite $ 400 $ (400) $ - $ - In-process research and development Indefinite 29,500 (3,000) - 26,500 Total unamortized intangible assets 29,900 (3,400) - 26,500 Amortized intangible assets: Patents 11.0 years 500 (106) (394) - Brand 8.0 years 3,887 - (2,794) 1,093 Product licenses 10.5 years 17,581 (10,059) (5,542) 1,980 Non-compete and supplier contracts 5.6 years 6,337 - (6,337) - Acquired developed technologies 4.1 years 391,624 (10,787) (124,467) 256,370 Total amortized intangible assets 419,929 (20,952) (139,534) 259,443 Total intangible assets $ 449,829 $ (24,352) $ (139,534) $ 285,943
Intangible Assets Estimated Amortization Expenses	Estimated amortization expense related to intangible assets with definite lives for each of the five succeeding years and thereafter is as follows (in thousands): Amount 2016 (July - December) $ 41,251 2017 80,835 2018 15,608 2019 6,324 2020 6,237 Thereafter 64,008 Total $ 214,263

6. Accrued Allowances (Tables)

6. Accrued Allowances (Tables)	6 Months Ended
	Jun. 30, 2016
Accrued Liabilities [Abstract]
Accrued allowances	Accrued allowances consist of the following (in thousands): June 30, December 31, 2016 2015 Accrued returns allowance $ 18,326 $ 11,896 Accrued price adjustments 31,368 44,100 Accrued government program rebates 6,052 6,682 Total $ 55,746 $ 62,678

7. Debt (Tables)

7. Debt (Tables)	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Debt consists	Debt, net of discounts and deferred financing costs, consists of the following (in thousands): June 30, December 31, 2016 2015 Wells Fargo Credit Facility $ 14,000 $ 15,000 4.25% Convertible Notes 101,873 99,776 Treximet Secured Notes 187,997 202,050 Total outstanding debt 303,870 316,826 Less current portion 3,789 13,335 Long term debt outstanding $ 300,081 $ 303,491
Future maturity schedule of the outstanding debt and line of credit	The following table represents the future maturity schedule of the outstanding debt and line of credit at June 30, 2016 (in thousands): Amount 2016 $ 5,498 2017 - 2018 14,000 2019 - 2020 189,581 Thereafter 130,000 Total maturities 339,079 Less: Note discount (24,442) Deferred financing costs (10,767) Total outstanding debt $ 303,870

8. Stockholders_ Equity (Tables

8. Stockholders’ Equity (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders Equity Tables
Stock option assumptions	The weighted average fair value of stock options granted during the periods and the assumptions used to estimate those values using the Black-Scholes option pricing mode were as follows: Three Months Ended Six Months Ended June 30, June 30, 2016 2015 2016 2015 Weighted average expected stock price volatility 78.2% 73.2% 71.7% 73.3% Estimated dividend yield - - - - Risk-free interest rate 1.4% 1.6% 1.4% 1.6% Expected life of option (in years) 6.2 6.3 6.2 6.3 Weighted average grant date fair value per option $ 0.36 $ 5.16 $ 1.26 $ 5.59
Stock option activity	The following table shows the option activity, described above, during the six months ended June 30, 2016 (share and intrinsic values in thousands): Weighted Average Average Remaining Aggregate Exercise Contractual Life Intrinsic Shares Price (years) Value Options Outstanding at December 31, 2015 7,030 $ 5.54 Granted 3,262 1.97 Exercised - - $ - Cancelled (1,091) 5.42 Expired - - Options outstanding at June 30, 2016 9,201 $ 4.29 8.7 $ - Options vested and expected to vest as of June 30, 2016 8,145 $ 4.36 8.6 $ - Options vested and exercisable as of June 30, 2016 2,240 $ 5.25 7.6 $ -
Restricted stock activity	The following table shows the Company's non-vested restricted stock activity during the six months ended June 30, 2016 (share and intrinsic values in thousands): Weighted Average Aggregate Grant Date Fair Intrinsic Shares Value Value Non-vested restricted stock outstanding at December 31, 2015 56 $ 3.00 Granted - - Vested (56) 3.00 $ 63 Forfeited - - Non-vested restricted stock outstanding at June 30, 2016 - -

11. Restructuring (Tables)

11. Restructuring (Tables)	6 Months Ended
	Jun. 30, 2016
Restructuring and Related Activities [Abstract]
Accrued restructuring costs	A summary of accrued restructuring costs, included as a component of accounts payable and accrued expenses on the unaudited condensed consolidated balance sheets, is as follows (in thousands): December 31, 2015 Charges Cash Non-cash June 30, 2016 Restructuring Costs $ 104 $ - $ (104) $ - $ - December 31, 2014 Charges Cash Non-cash June 30, 2015 Restructuring Costs $ - $ 1,197 $ (28) $ (653) $ 516

13. Schedule of Cash Flow, Supp

13. Schedule of Cash Flow, Supplemental Disclosures (Tables)	6 Months Ended
	Jun. 30, 2016
Schedule Of Cash Flow Supplemental Disclosures Tables
Schedule of cash flow, supplemental disclosures	Six Months Ended June 30, 2016 2015 Supplemental disclosures of Cash Flow Information: Cash paid for income taxes, net $ 227 $ 68 Cash paid for interest 15,485 14,228 Supplemental disclosures of Non-cash Investing and Financing Activities: Subscription receivable under the controlled equity offering 700 - Conversion of 8.00% Convertible Notes - 60,172 Issuance of 1,682,086 shares to Zogenix for Zohydro ER acquisition - 11,926

1. Company Overview Significant

1. Company Overview Significant Customers (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	92.00%	93.00%	94.00%	93.00%
Percentage of accounts receivable, net	91.00%		91.00%		92.00%
McKesson Corporation
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	35.00%	37.00%	36.00%	41.00%
Percentage of accounts receivable, net	35.00%		35.00%		34.00%
Amerisource Bergen Drug Corporation
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	31.00%	29.00%	32.00%	24.00%
Percentage of accounts receivable, net	27.00%		27.00%		30.00%
Cardinal Health Inc
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	26.00%	27.00%	26.00%	28.00%
Percentage of accounts receivable, net	29.00%		29.00%		28.00%

2. Earnings per Share (Details)

2. Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator:
Net loss	$ (31,139)	$ (32,235)	$ (57,075)	$ (55,909)
Denominator:
Weighted-average common shares, basic	66,687	52,399	63,904	45,481
Dilutive effect of stock options	0	0	0	0
Weighted-average common shares, diluted	66,687	52,399	63,904	45,481
Net loss per share, basic and diluted	$ (0.47)	$ (0.62)	$ (0.89)	$ (1.23)

2. Earnings Per Share Potential

2. Earnings Per Share Potentially Diluted Shares Excluded (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Anti-dilutive shares	20,838	14,619	20,358	17,436
4.25% Convertible Notes
Anti-dilutive shares	11,334	8,594	11,334	4,383
8% Convertible Notes
Anti-dilutive shares	0	4,365	0	11,073
Stock Options and Restricted Stock
Anti-dilutive shares	9,035	1,524	8,555	1,804
Warrants
Anti-dilutive shares	469	136	469	176

3. Fair Value Measurement (Deta

3. Fair Value Measurement (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets
Money market fund and trust cash sweep investments (1)	$ 0	$ 4,367
Total Assets	0	4,367
Level 1 Member
Assets
Money market fund and trust cash sweep investments (1)	0	4,367	[1]
Total Assets	0	4,367
Level 2 Member
Assets
Money market fund and trust cash sweep investments (1)	0	0
Total Assets	0	0
Level 3 Member
Assets
Money market fund and trust cash sweep investments (1)	0	0
Total Assets	$ 0	$ 0
[1]	The Company's money market and trust cash sweep investments are included in cash and cash equivalents within the Unaudited Condensed Consolidated Balance Sheets.

3. Fair Value Measurement (Debt

3. Fair Value Measurement (Debt Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt instruments, fair value	$ 184,253	$ 271,375
Debt instruments, carrying value	296,663	325,046
4.25% Convertible Notes
Debt instruments, fair value	28,180	68,637
Debt instruments, carrying value	101,873	99,776
Derivative Liability
Debt instruments, fair value	2,212	9,165
Debt instruments, carrying value	2,212	9,165
Contingent Consideration
Debt instruments, fair value	4,581	14,055
Debt instruments, carrying value	4,581	14,055
Treximet Secured Notes
Debt instruments, fair value	149,280	179,518
Debt instruments, carrying value	$ 187,997	$ 202,050

3. Fair Value Measurements Usin

3. Fair Value Measurements Using Significant Unobservable Inputs (Level 3) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivative Liability
Beginning balance	$ 9,165	$ 0
Initial measurement of contingent consideration	0	28,480
Remeasurement adjustments - gains included in earnings	(6,953)	(19,315)
Ending balance	2,212	9,165
Contingent Consideration
Beginning balance	14,055	0
Initial measurement of contingent consideration	0	14,193
Remeasurement adjustments - gains included in earnings	(9,474)	(138)
Ending balance	$ 4,581	$ 14,055

4. Inventory (Details)

4. Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Raw materials	$ 1,787	$ 2,047
Work-in-process	196	1,425
Finished goods	11,407	9,011
Inventory gross	13,390	12,483
Reserve for obsolescence	(3,697)	(2,448)
Inventory, net	$ 9,693	$ 10,035

5. Goodwill and Intangible As38

5. Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Dec. 31, 2014
Goodwill	$ 54,366	$ 54,865	$ 44,900
Zohydro ER
Increase in goodwill related to acquisitions	0	180
Measurement period adjustments	(499)	6,949
Treximet
Increase in goodwill related to acquisitions	0
Measurement period adjustments	$ 0	$ 2,836

5. Goodwill and Intangible As39

5. Goodwill and Intangible Assets (Details 1) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Intangible assets consist of the following
Gross Carrying Amount	$ 407,057	$ 449,829
Impairment	(1,502)	(24,352)
Accumulated Amortization	(164,792)	(139,534)
Net Carrying Amount	240,763	285,943
In Process Research And Development Member
Intangible assets consist of the following
Gross Carrying Amount	26,500	29,500
Impairment	0	(3,000)
Accumulated Amortization	0	0
Net Carrying Amount	26,500	26,500
Trademark rights Member
Intangible assets consist of the following
Gross Carrying Amount		400
Impairment		(400)
Accumulated Amortization		0
Net Carrying Amount		0
Total Indefinite Lived
Intangible assets consist of the following
Gross Carrying Amount	26,500	29,900
Impairment	0	(3,400)
Accumulated Amortization	0	0
Net Carrying Amount	$ 26,500	$ 26,500
Brand Member
Intangible assets consist of the following
Weighted Average Life	0 years	8 years
Gross Carrying Amount	$ 891	$ 3,887
Impairment	(891)	0
Accumulated Amortization	0	(2,794)
Net Carrying Amount	$ 0	$ 1,093
Product Licenses Member
Intangible assets consist of the following
Weighted Average Life	8 years 144 days	10 years 180 days
Gross Carrying Amount	$ 2,846	$ 17,581
Impairment	0	(10,059)
Accumulated Amortization	(1,049)	(5,542)
Net Carrying Amount	$ 1,797	$ 1,980
Noncompete And Supplier Contracts Member
Intangible assets consist of the following
Weighted Average Life	5 years	5 years 216 days
Gross Carrying Amount	$ 583	$ 6,337
Impairment	0	0
Accumulated Amortization	(19)	(6,337)
Net Carrying Amount	$ 564	$ 0
Acquired Developed Technology Member
Intangible assets consist of the following
Weighted Average Life	7 years 252 days	4 years 36 days
Gross Carrying Amount	$ 376,237	$ 391,624
Impairment	(611)	(10,787)
Accumulated Amortization	(163,724)	(124,467)
Net Carrying Amount	211,902	$ 256,370
Patents Member
Intangible assets consist of the following
Weighted Average Life		11 years
Gross Carrying Amount		$ 500
Impairment		(106)
Accumulated Amortization		(394)
Net Carrying Amount		0
Total Definite Lived
Intangible assets consist of the following
Gross Carrying Amount	380,557	419,929
Impairment	(1,502)	(20,952)
Accumulated Amortization	(164,792)	(139,534)
Net Carrying Amount	$ 214,263	$ 259,443

5. Goodwill and Intangible As40

5. Goodwill and Intangible Assets (Details 2) $ in Thousands	Jun. 30, 2016USD ($)
Estimated amortization expense related to intangible assets
2016 (July – December)	$ 41,251
2,017	80,835
2,018	15,608
2,019	6,324
2,020	6,237
Thereafter	64,008
Total	$ 214,263

5. Goodwill and Intangible As41

5. Goodwill and Intangible Assets (Details Narrative) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 20,700	$ 22,200	$ 44,300	$ 40,600

6. Accrued Allowances (Details)

6. Accrued Allowances (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Accrued allowances consist of the following
Accrued returns allowance	$ 18,326	$ 11,896
Accrued price adjustments	31,368	44,100
Accrued government program rebates	6,052	6,682
Total	$ 55,746	$ 62,678

7. Debt (Details)

7. Debt (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Total debt	$ 303,870	$ 316,826
Debt - current	3,789	13,335
Debt - long term	300,081	303,491
Wells Fargo Credit Facility
Total debt	14,000	15,000
4.25% Convertible Notes
Total debt	101,873	99,776
Treximet Secured Notes
Total debt	$ 187,997	$ 202,050

7. Debt (Details 1)

7. Debt (Details 1) $ in Thousands	Jun. 30, 2016USD ($)
Debt And Lines Of Credit Details 1
2,016	$ 5,498
2,017	0
2,018	14,000
2,019	0
2,020	189,581
Thereafter	130,000
Total maturities	339,079
Less: note discount	(24,442)
Less: deferred financing costs	(10,767)
Total outstanding debt	$ 303,870

8. Stockholders_ Equity (Detail

8. Stockholders’ Equity (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Weighted average of the assumptions used to value stock options on the date of grant
Weighted average expected stock price volatility	78.20%	73.20%	71.70%	73.30%
Estimated dividend yield	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	1.40%	1.60%	1.40%	1.60%
Expected life of option (in years)	6 years 72 days	6 years 108 days	6 years 72 days	6 years 108 days
Weighted average grant date fair value per option	$ 0.36	$ 5.16	$ 1.26	$ 5.59

8. Stockholders_ Equity (Deta46

8. Stockholders’ Equity (Details 1) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Option Shares
Outstanding at December 31, 2015 | shares	7,030
Granted | shares	3,262
Exercised | shares	0
Cancelled | shares	(1,091)
Expired | shares	0
Outstanding at June 30, 2016 | shares	9,201
Vested and expected to vest, as of June 30, 2016 | shares	8,145
Vested and exercisable, as of June 30, 2016 | shares	2,240
Option Average Exercise Price
Outstanding at December 31, 2015 | $ / shares	$ 5.54
Granted | $ / shares	1.97
Exercised | $ / shares	0
Cancelled | $ / shares	5.42
Expired | $ / shares	0
Outstanding at June 30, 2016 | $ / shares	4.29
Vested and expected to vest, as of June 30, 2016 | $ / shares	4.36
Vested and exercisable, as of June 30, 2016 | $ / shares	$ 5.25
Option Weighted Average Remaining Contractual Life Years
Options outstanding at June 30, 2016	8 years 252 days
Options vested and expected to vest, as of June 30, 2016	8 years 216 days
Options vested and exercisable, as of June 30, 2016	7 years 216 days
Option Aggregate Intrinsic Value
Exercised | $	$ 0
Options outstanding at June 30, 2016 | $	0
Options vested and expected to vest as of June 30, 2016 | $	0
Options vested and exercisable as of June 30, 2016 | $	$ 0

8. Stockholders_ Equity (Deta47

8. Stockholders’ Equity (Details 2) - Restricted shares $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Non-vested restricted stock outstanding at December 31, 2015 | shares	56
Granted | shares	0
Vested | shares	(56)
Forfeited | shares	0
Non-vested restricted stock outstanding at March 31, 2016 | shares	0
Weighted Average Grant Date Fair Value | $ / shares	$ 3
Granted | $ / shares
Vested | $ / shares	3
Forfeited | $ / shares	0
Weighted Average Grant Date Fair Value | $ / shares	$ 0
Aggregate Intrinsic Value, Vested | $	$ 63

8. Stockholders_ Equity (Deta48

8. Stockholders’ Equity (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended	6 Months Ended
	Jul. 31, 2016	Jun. 30, 2016	Jun. 30, 2016
Stockholders Equity Details Narrative
Number of shares of common stock issued		23,921,343	23,921,343
Shares Issued, Price Per Share		$ 0.52	$ 0.52
Cash received from stock sale, after issuance costs	$ 700,000		$ 11,300,000
Stock issuance costs		$ 400,000	$ 400,000
Warrants outstanding		469,000	469,000

8. Stockholders_ Equity - Stock

8. Stockholders’ Equity - Stock-Based Compensation (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock Options
Allocated Share-based Compensation Expense	$ 770,000	$ 1,200,000	$ 2,200,000	$ 3,100,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	13,800,000		$ 13,800,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			2 years 270 days
Performance Shares
Allocated Share-based Compensation Expense	12,000	$ 0	$ 35,000	$ 0
Restricted Stock
Unrecognized stock compensation expense related to restricted stock grants	$ 0		$ 0

9. Income Taxes (Details Narrat

9. Income Taxes (Details Narrative)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Taxes Details Narrative
Effective income tax rate	0.00%	12.70%

10. Commitments and Contingen51

10. Commitments and Contingencies (Details Narrative) $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)
Minimum quarterly royalty payments	$ 4,000
GSK
Settlement description	The Company is subject to various claims and litigation arising in the ordinary course of business. The Company is currently involved in an arbitration proceeding with GSK. GSK has claimed that the Company owes GSK damages relating to an alleged breach by the Company of a covenant contained in the Asset Purchase and Sale Agreement dated as of May 13, 2014 by and among GSK and its affiliates and the Company pertaining to a pre-existing customer agreement. The Company has asserted counterclaims, defenses and claims related to breaches of a Supply Agreement between the parties. The Company and GSK have entered into an Interim Settlement Agreement under which the Company will continue to make payments to GSK and escrow additional funds and pursuant to which the parties have submitted the matter to binding arbitration. The Company has paid to GSK approximately $10.3 million through June 30, 2016 and has deposited an additional approximately $6.2 million into an escrow account on account of the settlement of disputed amounts. The amounts paid by the Company to GSK and escrowed represent approximately 46% of the amounts GSK claims are owed to them as a result of the Company's alleged breach. The amounts paid and escrowed by the Company for GSK claims are consistent with the amounts accrued by the Company for managed care rebates and fees during the three and six months ended June 30, 2016 and 2015. An arbitration hearing was held in April 2016 and a second hearing is scheduled for October 2016. A decision by the arbitrators is expected no later than February 2017. While the Company intends to vigorously contest GSK's allegations that its damages are a result of the Company's breach and that they are compensable under the Asset Purchase and Sale Agreement or otherwise, any material liability resulting from this claim could negatively impact the Company's financial results.
Recro
Settlement description	Recro Gainseville LLC v. Actavis Laboratories FL, Inc. Recro Gainseville LLC v. Alvogen Malta Operations Ltd. Recro is the owner of U.S. Patent Nos. 6,228,398 ("the '398 Patent") and 6,902,742 ("the '742 Patent"), both of which expire on November 1, 2019, and U.S. Patent No. 9,132,096 ("the '096 Patent"), which expires on September 12, 2034. All three patents (collectively, "the Orange Book Patents") are listed in the United States Food and Drug Administration's ("FDA's") Orange Book: Approved Drug Products with Therapeutic Equivalence Evaluations ("Orange Book") as covering Zohydro ER. Actavis and Alvogen each filed Abbreviated New Drug Applications ("ANDAs") with the FDA seeking approval of proposed generic versions of Zohydro ER in 10, 15, 20, 30, 40, and 50 mg dosage strengths. Those ANDAs and amendments thereto contained certifications asserting that the Orange Book Patents are invalid and not infringed. Pursuant to the Hatch-Waxman Act, Recro brought suit against Actavis on September 3, 2014 and May 21, 2015 for declaratory judgment of infringement of the '398 and '742 Patents, and on December 23, 2015 for declaratory judgment of infringement of the '096 Patent. In response, Actavis filed counterclaims seeking declaratory judgments of noninfringement and invalidity of all three Orange Book Patents. Pursuant to the Hatch-Waxman Act, Recro brought suit against Alvogen on November 3, 2014 for declaratory judgment of infringement of the '398 and '742 Patents. In response, Alvogen filed counterclaims seeking declaratory judgments of noninfringement and invalidity of those two patents. All of these related cases are pending in the United States District Court for the District of Delaware, where they are currently in the expert discovery stage. The Company continues to monitor the cases closely. Trial is currently scheduled to begin on October 3, 2016.
Somaxon [Member]
Settlement description	In July 2012 and January 2013, Somaxon settled two patent litigation claims with parties seeking to market generic equivalents of Silenor. As of June 30, 2016, remaining payment obligations owed under these settlement agreements are $1.5 million. The balance is payable in equal annual installments of $250,000 through 2019, and a payment of $500,000, payable in 2017. The current portion is recorded in other liabilities - current and the non-current portion is recorded in other liabilities - long-term on the Company's unaudited condensed consolidated balance sheets as of June 30, 2016.
Texas Medicaid Fraud Prevention Act
Settlement description	During the first quarter of 2014, the Company settled all claims arising from certain actions by Cypress under the Texas Medicaid Fraud Prevention Act prior to its acquisition by the Company. As part of the settlement, the Company agreed to pay $12.0 million, payable in annual amounts of $2.0 million until the settlement is paid in full. As of June 30, 2016, the net present value of remaining payment obligations owed under this settlement agreement are $5.3 million. The current portion is recorded in other liabilities - current and the non-current portion is recorded in other liabilities - long-term on the Company's unaudited condensed consolidated balance sheet as of June 30, 2016.

11. Restructuring (Details)

11. Restructuring (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Restructuring Details
Accrued restructuring costs	$ 0	$ 516	$ 0	$ 516	$ 104	$ 0
Restructuring charges	$ 0	$ (108)	0	1,197
Restructuring cash			(104)	(28)
Restructuring noncash			$ 0	$ (653)

12. Business Combinations (Narr

12. Business Combinations (Narrative) (Details)	6 Months Ended
	Jun. 30, 2016
Zohydro ER
Business Acquisition, Name of Acquired Entity	Zohydro ER
Business Combination, Assets and Liabilities, Description	On April 24, 2015, Pernix completed the acquisition of the pharmaceutical product line, Zohydro ER, including an abuse-deterrent pipeline and all related intellectual property, a favorable supplier contract and an associated liability payable, and a specified quantity of inventory associated therewith, from Zogenix, Inc. ("Zogenix"). There were no other tangible or intangible assets acquired and liabilities assumed related to the Zohydro ER product line from Zogenix. The total purchase price consisted of an upfront cash payment of $80.0 million including a deposit of $10.0 million in an escrow fund, stock consideration of $11.9 million issued in common stock of Pernix, $927,000 for a specified quantity of inventory, and regulatory and commercial milestones of up to $283.5 million including a $12.5 million milestone payment upon approval of ZX007 abuse-deterrent extended-release hydrocodone tablet and up to $271.0 million in potential sales milestones if the Zohydro ER product line achieves certain agreed-upon net sales targets. The Zohydro ER product line acquisition was accounted for as a business combination in accordance with ASC 805 Business Combinations
Trexime from GSK
Business Acquisition, Name of Acquired Entity	Treximet
Business Combination, Assets and Liabilities, Description	On August 20, 2014, the Company, through a wholly owned subsidiary PIL, formerly known as Worrigan Limited, completed the acquisition of the U.S. intellectual property rights to the pharmaceutical product, Treximet, from GSK. There were no other tangible or intangible assets acquired or liabilities assumed related to Treximet intellectual property from GSK. The total purchase price consisted of an upfront cash payment of $250.0 million and $1.95 million paid to GSK upon receipt of an updated Written Request for pediatric exclusivity from the FDA. The Company funded this acquisition with $220.0 million in debt, plus approximately $32.0 million from available cash. The Treximet acquisition was accounted for as a business combination in accordance with ASC 805. The Company finalized the purchase price allocation in the quarter ended September 30, 2015 and recorded the measurement period adjustments in accordance with ASU 2015-16.

13. Supplemental Cash Flow In54

13. Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Supplemental disclosures of Cash Flow Information:
Cash paid for income taxes, net	$ 227	$ 68
Cash paid for interest	15,485	14,228
Supplemental disclosures of Non-cash Investing and Financing Activities:
Subscription receivable under the controlled equity offering	700	0
Conversion of 8.00% Convertible notes	0	60,172
Issuance of 1,682,086 shares to Zogenix for Zohydro ER acquisition	$ 0	$ 11,926