Pernix Therapeutics 10-Q 1 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 24, 2015
Document Information [Line Items]
Entity Registrant Name	PERNIX THERAPEUTICS HOLDINGS, INC.
Entity Central Index Key	1024126
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		43,540,098
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Current assets:
Cash and cash equivalents	$18,929	$34,855
Accounts receivable, net	44,841	44,127
Inventory, net	12,741	11,362
Prepaid expenses and other current assets	9,802	10,346
Note receivable, net of unamortized discount of $80 and $127, respectively	4,770	4,723
Prepaid income taxes	9,175	7,911
Deferred income tax assets – current	16,792	15,933
Total current assets	117,050	129,257
Property and equipment, net	1,668	1,514
Other assets:
Goodwill	44,900	44,900
Intangible assets, net	282,125	300,489
Other long-term assets	10,359	11,253
Total assets	456,102	487,413
Current liabilities:
Accounts payable and accrued expenses	25,748	27,569
Accrued allowances	51,737	52,604
Interest payable	4,812	10,159
Debt - current	10,659	7,345
Senior secured notes – Treximet – current	3,884	0
Total current liabilities	96,840	97,677
Long-term liabilities
Other liabilities	9,307	11,755
Senior convertible notes – long-term	65,000	65,000
Senior secured notes - Treximet – long-term	216,116	220,000
Deferred income taxes	7,017	9,389
Total liabilities	394,280	403,821
Commitments and contingencies (Notes 11, 12, 13)
STOCKHOLDERS' EQUITY
Common stock, $.01 par value, 90,000 shares authorized, 41,439 and 40,805 issued and 38,872 and 38,341 outstanding at March 31, 2015 and December 31, 2014, respectively	389	383
Treasury stock, at cost, 2,566 and 2,464 shares held at March 31, 2015 and December 31, 2014, respectively	-5,540	-5,431
Additional paid-in capital	131,135	129,128
Retained deficit	-64,162	-40,488
Total stockholders' equity	61,822	83,592
Total liabilities and stockholders' equity	$456,102	$487,413

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
ASSETS
Note receivable, unamortized discount, Current	$80	$127
Stockholders Equity
Common stock par value	$0.01	$0.01
Common stock shares authorized	90,000	90,000
Common stock shares issued	41,439	40,805
Common stock shares outstanding	38,872	38,341
Treasury Stock held, at cost	2,566	2,464

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Net revenues	$33,889	$19,052
Costs and operating expenses:
Cost of product sales	11,076	9,956
Selling, general and administrative expense	20,986	13,623
Research and development expense	994	969
Loss on sale of PML (including impairment charge)	0	6,457
Depreciation and amortization expense	18,433	2,191
Restructuring costs	1,305	0
Total costs and operating expenses	52,794	33,196
Loss from operations	-18,905	-14,144
Other income (expense):
Interest income	56	92
Interest expense	-9,398	-1,356
Total other income (expense), net	-9,342	-1,264
Loss before income taxes	-28,247	-15,408
Income tax benefit	-4,573	-5,866
Net loss	($23,674)	($9,542)
Net Loss per share, basic	($0.62)	($0.26)
Net Loss per share, diluted	($0.62)	($0.26)
Weighted-average common shares, basic	38,453	37,271
Weighted-average common shares, diluted	38,453	37,271

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows used in operating activities:
Net loss	($23,674)	($9,542)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	69	150
Amortization of intangibles	18,364	2,041
Amortization of deferred financing costs	793	313
Interest accretion of notes receivable	-48	-86
Deferred income tax benefit	-3,231	-6,421
Stock compensation expense	1,871	1,779
Expense from stock options issued in exchange for services	0	119
Loss on sale of PML (including impairment charge)	0	6,457
Changes in operating assets and liabilities (net of effect of acquisitions and dispositions):
Accounts receivable	-714	-6,203
Income taxes	-1,264	189
Inventory	-1,379	1,836
Prepaid expenses and other assets	645	417
Accounts payable and accrued expenses	-3,647	1,774
Accrued allowances	-867	4,718
Interest payable	-5,347	478
Other liabilities	-615	-4,137
Net cash used in operating activities	-19,044	-6,118
Cash flows used in investing activities:
Purchase of equipment	-223	-115
Net cash used in investing activities	-223	-115
Cash flows provided by financing activities:
Proceeds from issuance of the February 2014 Convertible Notes	0	65,000
Net drawdowns (payments) on revolving credit facility	3,313	-11,812
Payment on financing costs	0	-6,201
Payments on mortgages and capital leases	-7	-34
Proceeds from issuance of common stock, net of tax	152	294
Stock issuance costs	-8	0
Tax benefit on stock-based awards	0	-131
Payment of employee income tax liability with surrender of employee restricted stock	-109	-679
Net cash provided by financing activities	3,341	46,437
Net increase (decrease) in cash and cash equivalents	-15,926	40,204
Cash and cash equivalents, beginning of period	34,855	15,647
Cash and cash equivalents, end of period	18,929	55,851
Supplemental Disclosure:
Cash paid for income taxes	67	497
Interest paid during the period	13,896	448
Non-cash transactions:
Acquisition of license - contract payable	$0	$2,500

1_Company_Overview

1. Company Overview	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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”), including neurology and psychiatry, and has an interest in expanding into additional specialty segments. The Company promotes its branded products to physicians through its Pernix sales force, uses contracted sales organizations to market its non-core cough and cold products, 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 pain and inflammation, Silenor, a non-controlled substance and approved medication for the treatment of insomnia characterized by difficulty with sleep, Cedax, an antibiotic for middle ear infections, and a family of prescription products for cough and cold (Zutripro, Rezira, and Vituz).  The Company also has an exclusive license agreement with Osmotica Pharmaceutical Corp. to promote Khedezla, a prescription medication for major depressive disorder.
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes and other financial information that are normally required by GAAP can be condensed or omitted. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Company’s consolidated financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2014.
	In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and include all adjustments, consisting only of normal recurring adjustments, considered necessary for the fair presentation of the Company’s financial position and operating results. The results for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015, for any other interim period or for any future period.
	Acquisition of Treximet
	On August 20, 2014, the Company, through a wholly owned subsidiary Pernix Ireland Limited (“PIL”), completed the acquisition of the U.S. intellectual property rights to the pharmaceutical product, Treximet from GlaxoSmithKline plc and certain of its related affiliates (together “GSK”).
	The total purchase price consisted of an upfront cash payment of $250.0 million paid to GSK upon closing of the transaction, and $17.0 million payable to GSK upon receipt of an updated Written Request for pediatric exclusivity from the U.S. Food & Drug Administration (“FDA”), subject to certain deductions based on delays in supplying the commercial product to the Company. Subsequently, the deductions resulting from delays in supplying the commercial product reduced the $17.0 million payable amount to approximately $1.95 million, which was paid during the fourth quarter of 2014. The Company funded this acquisition with $220.0 million in debt, plus approximately $32.0 million from available cash.
	The results of operations of the acquired Treximet asset, along with the estimated fair values of the assets acquired in the transaction have been included in the Company’s condensed consolidated financial statements since we acquired Treximet on August 20, 2014.
	Principles of Consolidation
	The condensed consolidated financial statements include the accounts of Pernix’s wholly-owned subsidiaries Pernix Therapeutics, LLC, GTA GP, Inc., GTA LP, Inc., Gaine, Inc., Macoven, Pernix Manufacturing, LLC, (“PML”) (closed on sale on April 21, 2014), Respicopea, Inc., Cypress, Cypress’ subsidiary, Hawthorn Pharmaceuticals, Inc., Pernix Sleep, Inc., also known as Somaxon Pharmaceuticals, Inc., or Somaxon and Pernix Ireland 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 (including our Regions Trust Account which invests in short-term securities consisting of sweep accounts, money market accounts and money market mutual funds), notes receivable, our credit facility and senior convertible notes. The carrying values of these assets and liabilities approximate their fair value.
	Management’s Estimates and Assumptions
	The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The Company reviews all significant estimates affecting the consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their issuance. 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.
	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 months ended March 31, 2015 and 2014, or 10% of total accounts receivable as of March 31, 2015 and December 31, 2014.
	Gross Product Sales:
		Three Months Ended
		March 31,
		2015			2014
	McKesson Corporation		46	%		36	%
	AmerisourceBergen Drug Corporation		17	%		35	%
	Cardinal Health, Inc.		29	%		17	%
	Total		92	%		88	%
	Accounts Receivable:
		March 31,			December 31,
		2015			2014
	McKesson Corporation		46	%		29	%
	AmerisourceBergen Drug Corporation		20	%		42	%
	Cardinal Health, Inc.		27	%		18	%
	Total		93	%		89	%
	Cost of Product Sales
	Cost of product sales is comprised of (i) costs to manufacture or acquire products sold to customers; (ii) royalty, co-promotion and other revenue sharing payments under license and other agreements granting the Company rights to sell related products; (iii) direct and indirect distribution costs incurred in the sale of products; and (iv) the value of any write-offs or donations of obsolete or damaged inventory that cannot be sold. The Company acquired the rights to sell certain of its commercial products through license and assignment agreements with the original developers or other parties with interests in these products. These agreements obligate the Company to make payments under varying payment structures based on its net revenue from related products.
	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.  As a result, the Company recorded adjustments to increase the inventory to fair value in the amount of $8.6 million and $695,000 at the time of acquisition for Cypress and Somaxon, respectively.  For the three months ended March 31, 2015 and 2014, $97,000 and $1.6 million of the increase in the basis of the inventory was amortized and included in cost of product sales, as the inventory was subsequently sold.   The balance remaining of the increase in the basis of the inventory acquired was $0 as of March 31, 2015.

2_Earnings_per_Share

2. Earnings per Share	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
2. Earnings per Share	Earnings per common share is presented under two formats: basic earnings per common share and diluted earnings per common share. Basic earnings per common share is computed by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period, plus the potentially dilutive impact of common stock equivalents (i.e. restricted stock, stock options, warrants and convertible notes). Dilutive common share equivalents consist of the incremental common shares issuable upon exercise of stock options.
	The following table sets forth the computation of basic and diluted net loss per share (in thousands except per share data):
		Three Months Ended
		March 31,
		2015			2014
	Numerator:
	Net loss	$	(23,674	)	$	(9,542	)
	Denominator:
	Weighted-average common shares, basic		38,453			37,271
	Dilutive effect of stock options	─			─
	Weighted-average common shares, diluted		38,453			37, 271
	Net loss per share, basic and diluted	$	(0.62	)	$	(0.26	)
	During the three months ended March 31, 2015 and 2014, the conversion of 18.1 million and 18.1 million shares, respectively, were excluded from the diluted earnings per share calculation because they were anti-dilutive. See Note 8, Debt and Lines of Credit, for additional information.
	During the three months ended March 31, 2015 and 2014, warrants to purchase 1.0 million and 469,000 shares, respectively, were excluded from the diluted earnings per share calculation because they were anti-dilutive. See Note 9, Stockholder’s Equity, for additional information.
	During the three months ended March 31, 2015 and 2014, the conversion of 18.1 million shares and 18.1 million shares, respectively, were excluded from the diluted earnings per share calculation because they were anti-dilutive. See Note 8, Debt and Lines of Credit, for additional information.
	As discussed in Note 8, Debt and Lines of Credit, in February 2014, the Company issued $65 million aggregate principal amount of 8.00% Convertible Senior Notes due 2019 (the “February 2014 Convertible Notes”) pursuant to Regulation D and Section 4(2) under the Securities Act. Upon conversion, the February 2014 Convertible Notes may be settled in shares of the Company’s common stock. For purposes of calculating the maximum dilutive impact, it is presumed that the February 2014 Convertible Notes will be settled in common stock with the resulting potential common shares included in diluted earnings per share if the effect is more dilutive. The effect of the conversion of the February 2014 Convertible Notes is excluded from the calculation of diluted loss per share because the net loss for the three months ended March 31, 2015 and 2014 causes such securities to be anti-dilutive. The potential dilutive effect of these securities is shown in the chart below (in thousands):
								Three Months Ended
								March 31,
								2015		2014
	Conversion of the February 2014 Convertible Notes								18,056		18,056
	Frontline warrants								241		─
	Pozen warrants								226		─
	Somaxon warrants								55		─
	Total potential dilutive effect of warrants								18,578		18,056

3_Fair_Value_Measurement

3. Fair Value Measurement	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
3. Fair Value Measurement	Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value as follows:
	Level 1	Quoted prices in active markets for identical assets or liabilities as of the reporting date.
	Level 2	Inputs other than level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities as of the reporting date.
	Level 3	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
	The following tables summarize the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 (in thousands):
			31-Mar-15
			Level 1		Level 2		Level 3		Total
	Assets
	Money market fund and trust cash sweep investments (1)		$	17,203	$	─	$	─	$	17,203
	Total Assets		$	17,203	$	─	$	─	$	17,203
			31-Dec-14
			Level 1		Level 2		Level 3		Total
	Assets
	Money market fund and trust cash sweep investments (1)		$	26,297	$	─	$	─	$	26,297
	Total Assets		$	26,297	$	─	$	─	$	26,297
	-1	The Company’s money market and trust cash sweep investments are included in cash and cash equivalents within the Condensed Consolidated Balance Sheet.
	The Company believes the carrying amount of its debt, notes payable and contracts payable, are a reasonable estimate of their fair value due to the short remaining maturity of these items and/or their fluctuating interest rates. There were no transfers between levels of the fair value hierarchy in 2015 or 2014.

4_Inventory

4. Inventory	3 Months Ended
	Mar. 31, 2015
Inventory Disclosure [Abstract]
Inventory	Inventories consist of the following (in thousands):
		March 31,		December 31,
		2015		2014
	Raw materials	$	3,065	$	417
	Packaging materials		61		82
	Samples		2,262		883
	Finished goods		9,648		12,200
	Inventory, gross		15,036		13,582
	Reserve for obsolescence		-2,295		(2,220	)
	I   Inventory, net	$	12,741	$	11,362
	An increase in the basis of inventory related to the acquisitions of Cypress and Somaxon are included in the balances above as of March 31, 2015 and December 31, 2014. The increase included in raw materials was $0 and $97,000 as of March 31, 2015 and December 31, 2014, respectively.

5_Disposal_of_PML

5. Disposal of PML	3 Months Ended
	Mar. 31, 2015
Disposal Of Pml
Disposal of PML	On March 31, 2014, the Company entered into a definitive agreement to divest its manufacturing operations, PML, to Woodfield Pharmaceutical LLC.  Accordingly, during the three months ended March 31, 2014, the Company adjusted PML’s net assets to fair value and, as a result, recorded the assets as held for sale, net of an impairment charge of approximately $6.5 million.  The Company closed on the sale of PML on April 21, 2014.  The Company received approximately $1.2 million in proceeds, net of the assumed mortgage and working capital liabilities at closing.  The entire PML operation and the mortgage was assumed by the acquirer.  The Company recorded an additional loss on the sale of approximately $202,000 at closing.  The Company does not believe the disposal of PML qualifies as discontinued operations as the manufacturing facility was not a major line of business and was not a significant component of the Company’s financial results during our period of ownership.

6_Intangible_Assets_and_Goodwi

6. Intangible Assets and Goodwill	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets and Goodwill	Intangible assets consist of the following (in thousands, except years):
					As of March 31, 2015
		Weighted		Gross Carrying Amount		Accumulated Amortization			Net Carrying
		Average Life							Amount
	Unamortized intangible assets:
	Trademark rights	Indefinite		$	400	$	─		$	400
	In-process research and development	Indefinite			48,300		─			48,300
	Total unamortized intangible assets				48,700		─			48,700
	Amortized intangible assets:
	Patents	11.0 years			500		(366	)		134
	Brand	8.0 years			3,887		(2,429	)		1,458
	Product licenses	11.0 years			17,581		(4,483	)		13,098
	Non-compete and supplier contracts	5.3 years			5,194		(4,490	)		704
	Acquired developed technologies	4.4 years			269,826		(51,795	)		218,031
	Total amortized intangible assets				296,988		(63,563	)		233,425
	Total intangible assets			$	345,688	$	(63,563	)	$	282,125
					As of December 31, 2014
		Weighted		Gross Carrying Amount		Accumulated Amortization			Net Carrying
		Average Life							Amount
	Unamortized intangible assets:
	Trademark rights	Indefinite		$	400	$	─		$	400
	In-process research and development	Indefinite			48,300		─			48,300
	Total unamortized intangible assets				48,700		─			48,700
	Amortized intangible assets:
	Patents	11.0 years			500		(355	)		145
	Brand	8.0 years			3,887		(2,308	)		1,579
	Product licenses	11.0 years			17,581		(4,058	)		13,523
	Non-compete and supplier contracts	5.3 years			5,194		(4,342	)		852
	Acquired developed technologies	4.4 years			269,826		(34,136	)		235,690
	Total amortized intangible assets				296,988		(45,199	)		251,789
	Total intangible assets			$	345,688	$	(45,199	)	$	300,489
	As of March 31, 2015, the weighted average life for our definite-lived intangible assets in total was approximately 4.86 years.
	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
	2015 (April – December)	$	55,353
	2016		72,864
	2017		71,198
	2018		12,887
	2019		4,347
	Thereafter		16,776
	Total	$	233,425
	Amortization expense was $18.4 million and $2.0 million for the three months ended March 31, 2015 and 2014, respectively.

7_Accrued_Allowances

7. Accrued Allowances	3 Months Ended
	Mar. 31, 2015
Accrued Liabilities [Abstract]
Accrued Allowances	Accrued allowances consist of the following (in thousands):
		March 31,		December 31,
		2015		2014
	Accrued returns allowance	$	11,315	$	9,691
	Accrued price adjustments		35,438		32,945
	Accrued government program rebates		4,984		9,968
	Total	$	51,737	$	52,604

8_Debt_and_Lines_of_Credit

8. Debt and Lines of Credit	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Debt and Lines of Credit	Debt consists of the following (in thousands):
			31-Mar-15		December 31,
					2014
	Amounts outstanding under the Midcap Credit Facility		$	10,659	$	7,345
	Senior secured notes (the “Treximet Notes”)			220,000		220,000
	February 2014 Convertible Notes			65,000		65,000
	Total debt		$	295,659	$	292,345
	Debt – current		$	14,543	$	7,345
	Debt – long term		$	281,116	$	285,000
	Credit Facility – MidCap Funding V, LLC
	On February 21, 2014, in connection with the February 2014 Convertible Notes offering discussed below, the Company entered into Amendment No. 1 to the Amended and Restated Credit Agreement (the “Amendment” and together with the Amended and Restated Credit Agreement, as amended by the Amendment, the “Amended Credit Agreement”) with MidCap Funding IV, LLC, as Agent and as a lender (“MidCap”), and the other lenders from time to time parties thereto. In addition to allowing for the note issuance, the Amendment provides for the addition of a $20.0 million uncommitted accordion feature to the lenders’ existing $20.0 million revolving loan commitment. Pursuant to the Amendment, MidCap and the other lenders released their liens on certain Company assets. The obligations under the Amended Credit Agreement are secured by a first priority security interest in the Company’s accounts, inventory, deposit accounts, securities accounts, securities entitlements, permits and cash. On April 23, 2014 the Company entered into Amendment No. 2 to the Amended and Restated Credit Agreement with MidCap to increase the letter of credit sublimit from $0 to $750,000. On August 19, 2014 the Company, MidCap, and certain subsidiaries of the Company entered into Amendment No. 3 to the Amended and Restated Credit Agreement dated as of May 8, 2013 to permit the Company to consummate the purchase of the Treximet assets from GSK.
	The covenants contained in the Amended Credit Agreement required the Company to maintain a minimum amount of earnings before interest, tax, depreciation and amortization (“EBITDA”) and net invoiced revenues unless the Company demonstrated minimum liquidity of at least $30.0 million through June 30, 2014. This was revised and not required with Amendment No. 3. Beginning with the calendar month ending March 31, 2015, the Company is required to meet a minimum fixed charge coverage ratio (“FCCR”). The FCCR test of 1.0x beginning on the calendar month ending March 31, 2015 is based on the trailing three months ending March 31, 2015. The Defined Period for the FCCR test of 1.0x will then build monthly until it reaches a trailing twelve month Defined Period beginning on December 31, 2015 through maturity. The Amended Credit Agreement also continues to include customary covenants for a secured credit facility, which include, among other things, (a) restrictions on (i) the incurrence of indebtedness, (ii) the creation of or existence of liens, (iii) the incurrence or existence of contingent obligations, (iv) making certain dividends or other distributions, (v) certain consolidations, mergers or sales of assets and (vi) purchases of assets, investments and acquisitions; and (b) requirements to deliver financial statements, reports and notices to the agent and the other lenders, provided that, the restrictions described in (a)(i)-(vi) above are subject to certain exceptions and permissions limited in scope and dollar value. The Amended Credit Agreement also contains customary representations and warranties and event of default provisions for a secured credit facility.
	The loans under this facility bear 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 (9% at March 31, 2015). The expiration date of the agreement has been extended to February 21, 2017. Amounts outstanding under this agreement are recorded on the balance sheet as current debt as of March 31, 2015 and December 31, 2014.
	February 2014 Convertible Note Offering
	On February 21, 2014, the Company issued $65.0 million aggregate principal amount 8% Convertible Senior Notes. The February 2014 Convertible Notes mature on February 15, 2019, unless earlier converted.  The Company received net proceeds from the sale of the February 2014 Convertible Notes of $58.8 million, after deducting underwriting discounts and commissions and offering expenses payable by the Company. Interest on the February 2014 Convertible Notes is payable on March 15, June 15, September 15 and December 15 of each year, beginning June 15, 2014. The note balance of $65.0 million is recorded as long-term debt on the balance sheet as of March 31, 2015.
	The February 2014 Convertible Notes are governed by the terms of an indenture (the “February 2014 Indenture”), between the Company and Wilmington Trust, National Association (the “February 2014 Trustee”), each of which were entered into on February 21, 2014.
	The February 2014 Convertible Notes are senior unsecured obligations and are: senior in right of payment to the Company’s future indebtedness that is expressly subordinated in right of payment to the February 2014 Convertible Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries.
	The Company may not redeem the February 2014 Convertible Notes prior to the maturity date (February 15, 2019). However, the holders may convert their February 2014 Convertible Notes at any time prior to the close of business on the business day immediately preceding February 15, 2019. 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 277.7778 shares of the Company’s common stock for each $1,000 principal amount of the February 2014 Convertible Notes, which represents an initial conversion price of approximately $3.60 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 February 2014 Convertible Notes in connection with such a corporate transaction.
	As the Company was not required to separate the conversion option in the February 2014 Convertible Notes under ASC 815, Derivatives and Hedging, it considered whether the cash conversion guidance contained in ASC 470-20, Debt with Conversion and Other Options, is applicable to the February 2014 Convertible Notes. However, as the conversion option may not be settled in cash upon the Company’s election, the Company concluded that the cash conversion guidance is not applicable to the February 2014 Convertible Notes, and the Company therefore recorded the entire proceeds of the February 2014 Convertible Notes as a liability, without allocating any portion to equity.
	Because the conversion option is not bifurcated as a derivative pursuant to ASC 815 and is not separately accounted for under the cash conversion guidance, the Company further evaluated the conversion option to determine whether it is considered a beneficial conversion option at inception. The Company determined the effective conversion price at issuance to be $3.60 per share. Because the fair value of the common stock at the close of trading on the date of issuance was $3.08, no beneficial conversion feature existed at the issuance date.
	For the three months ended March 31, 2015, total interest expense related to the outstanding principal balance of the February 2014 Convertible Notes was $1.3 million and $0 for 2014 at the stated interest rate of 8.0% per annum. As of March 31, 2015, the Company had outstanding borrowings of $65.0 million related to the February 2014 Convertible Notes. The Company has $5.4 million in deferred financing costs related to the February 2014 Convertible Notes as of March 31, 2015. This is recorded on the balance sheet in Prepaid and Other Current Assets ($1.4 million) and Other Long-Term Assets ($4.0 million).
	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 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 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 will pay an installment of principal of the Treximet 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 Notes on such Payment Date).
	The Treximet Notes are unconditionally guaranteed, jointly and severally, by the Guarantors. The Treximet 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 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 is prior to August 1, 2015, the redemption price is equal to the greater of (i) the principal amount of the Treximet Notes being redeemed and (ii) the present value, discounted at the applicable treasury rate of the principal amount of the Treximet 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 Notes being redeemed assuming the principal balances are 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 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 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 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 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 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 Notes; and (i) certain changes in control of a Guarantor.
	On August 19, 2014, the Company entered into the First Supplemental Indenture to the February 2014 Indenture for the Company’s February 2014 Convertible Notes due 2019 (the “First Supplemental Indenture”) to permit the Company to consummate the purchase of the Treximet assets from GSK and to issue the Treximet Notes. On August 19, 2014, the Company also entered into the Second Supplemental Indenture to the February 2014 Indenture for the Company’s February 2014 Convertible Notes due 2019 (the “Second Supplemental Indenture”) to add PIL, a wholly owned subsidiary of the Company, as a guarantor.
	For the three months ended March 31, 2015 and 2014, total interest expense related to the outstanding principal balance of the Treximet Notes was $6.6 million and $0, respectively, at the stated interest rate of 8.0% per annum, respectively. As of March 31, 2015, the Company had outstanding borrowings of $220.0 million related to the Treximet Notes, of which $3.9 million is classified as short term and $216.1 million is classified as long term. The Company has $7.0 million in deferred financing costs related to the Treximet notes as of March 31, 2015. This is recorded on the balance sheet in Prepaid and Other Current Assets ($1.3 million) and Other Long-Term Assets ($5.7 million).
	The following table represents the future maturity schedule of the outstanding debt and line of credit:
	As of March 31, 2015 (amounts in thousands)
	2015 (line of credit and current portion of Treximet Notes)	$	14,543
	2016		─
	2017		─
	2018		─
	2019		65,000
	Thereafter		216,116
	Total maturities	$	295,659

9_Stockholders_Equity

9. Stockholders' Equity	3 Months Ended
	Mar. 31, 2015
Stockholders Equity
Stockholders' Equity	Warrants
	In March 2015, Pozen exercised all 500,000 of their warrants in a cashless exercise for which 315,835 shares were issued. In February 2015, Frontline exercised 222,631 of their 500,000 warrants in a cashless exercise for which 133,257 shares were issued. There are 277,369 warrants remaining for Frontline. As of March 31, 2015, the Company assumed approximately 464,564 outstanding warrants in connection with the acquisition of Somaxon in March 2013.
	Stock Option Plans
	The Company’s 2009 Stock Incentive Plan (the “2009 Plan”) was approved concurrent with its merger with Golf Trust of America (“GTA”), Inc. on March 9, 2010 and subsequently amended. The maximum number of shares that can be offered under this plan, as amended, is 7.75 million. Incentives may be granted under the 2009 Plan to eligible participants in the form of (a) incentive stock options, (b) non-qualified stock options, (c) restricted stock, (d) restricted stock units, (e) stock appreciation rights and (f) other stock-based awards. Incentive grants under the 2009 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. 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 March 31,
		2015				2014
	Weighted average expected stock price volatility		73.7	%			74	%
	Estimated dividend yield		0	%			0	%
	Risk-free interest rate		1.6	%			1.8	%
	Expected life of option (in years)		6.3				6.1
	Weighted average grant date fair value per option	$	6.76			$	2.6
	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 $1.9 million and $1.8 million for the three months ended March 31, 2015 and 2014, respectively. Stock-based compensation expense for the periods presented are included within the selling, general and administrative expenses line of the unaudited condensed consolidated statements of operations.
	Stock Options
	As of March 31, 2015, approximately 4.7 million options are outstanding that have been issued to current officers and employees under the Company’s 2007 Stock Option Plan and the 2009 Plan. As of March 31, 2015, there was approximately $10.9 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 3.3 years.
	The following table shows the option activity, described above, during the three months ended March 31, 2015 (share and intrinsic values in thousands):
						Average Exercise Price			Weighted Average Remaining Contractual Life Years
											Aggregate Intrinsic Value
		Shares
	Options outstanding at December 31, 2014	4,551			$	5.35
	Granted	297				10.23
	Exercised	(39	)			3.92				$	211
	Cancelled	(91	)			7.43
	Expired	─				─
	Options outstanding at March 31, 2015	4,718			$	5.63			9	$	23,960
	Options vested and expected to vest as of March 31, 2015	3,936			$	5.57			8.9	$	20,204
	Options vested and exercisable as of March 31, 2015	680			$	4.45			7.8	$	4,248
	The total intrinsic value of options exercised during the three months ended March 31, 2015 and 2014 were $211,000 and $142,000, respectively.
	Restricted Stock
	The following table shows the Company's non-vested restricted stock activity during the three months ended March 31, 2015 (share and intrinsic values in thousands):
					Weighted Average Grant Date Fair Value			Aggregate Intrinsic Value
		Shares
	Non-vested restricted stock outstanding at December 31, 2014	140			$	4.52
	Granted	─				─
	Vested	(56	)			6.09		$	539
	Forfeited	(19	)			3.09
	Non-vested restricted stock outstanding at March 31, 2015	65			$	3.58
	As of March 31, 2015, there was approximately $10,000 of total unrecognized compensation cost related to non-vested restricted stock issued to employees and directors of the Company, which is expected to be recognized ratably over a weighted-average period of 0.7 years.

10_Income_Taxes

10. Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	The Company’s income tax benefit was $4.6 million and $5.9 million for the three months ended March 31, 2015 and 2014, respectively. The Company’s effective tax rate was 16.2% for the three months ended March 31, 2015, compared to an effective tax rate of 38.1% for the three months ended March 31, 2014. The change in the tax rate for the quarter ended March 31, 2015 was primarily due to a new mix of jurisdictional earnings resulting from recent merger and acquisition activity.
	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.
	Our deferred tax assets are comprised primarily of U.S. federal net operating losses and accruals. A substantial portion of the deferred tax liability at March 31, 2015 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.

11_Commitments_and_Contingenci

11. Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Legal Proceedings
	The Company is subject to various claims and litigation arising in the ordinary course of business. In the opinion of management, the outcome of such matters will not have a material effect on the Company’s financial position or results of operations.
	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 March 31, 2015, remaining payment obligations owed to Somaxon under these settlement agreements are $2.3 million, payable in equal annual installments of $250,000 through 2019, and equal installments of $500,000 through 2017.
	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.
	In connection with the acquisition of Treximet, the Company is responsible for the payment of royalties to Pozen of 18% of 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.
	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 and GSK are currently negotiating the terms of an interim settlement agreement pursuant to which the parties will submit the disputed matters to arbitration and the Company will make certain payments to GSK and escrow additional funds in advance of resolution of the disputed matters in such arbitration. The Company made a payment of approximately $3.0 million to GSK and intends to deposit an additional approximately $1.8 million into an escrow account on account of the settlement of disputed amounts relating to calendar year 2014 and made a payment of approximately $573,000 and intends to escrow an additional approximately $344,000 related to January and February 2015. The amounts paid by the Company to GSK and escrowed represent approximately 57% of the amounts GSK claims are owed to them as a result of the Company’s alleged breach. As it relates to these amounts, the Company had accrued $3.5 million at December 31, 2014 in connection with this dispute and recorded an additional $1.3 million during the three months ended March 31, 2015 related to GSK’s 2014 claims. The amounts paid and to be escrowed by the Company for 2015 GSK claims are consistent the amounts accrued by the Company for managed care rebates and fees during the three months ended March 31, 2015. 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.

12_Restructuring

12. Restructuring	3 Months Ended
	Mar. 31, 2015
Restructuring and Related Activities [Abstract]
12. 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 is being done in order to consolidate operations within the Company’s headquarters located in Morristown, New Jersey.
	The charge related to this restructuring during the three months ended March 31, 2015 was $1.3 million. The charge during the three months ended March 31, 2015 was comprised of $649,000 in severance related cash expenses, and $656,000 for the modification and accelerated vesting of options and awards under existing employee agreements. Associated severance payments are anticipated to be paid by December 31, 2015.
	A summary of accrued restructuring costs, included as a component of accounts payable and accrued expenses on the condensed consolidated balance sheet, is as follows (in thousands):
	31-Dec-14	Charges	Cash	Non-cash	31-Mar-15
	$             -	$    1,305	$          -	$          -	$    1,305

13_Subsequent_Events

13. Subsequent Events	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Resignation of Executive Officer. On April 6, 2015, the Company’s Vice President of Accounting/ Principal Accounting Officer/Secretary resigned on good terms with the Company with an effective date of May 31, 2015 in connection with the closure of the Charleston, South Carolina site. The Company has agreed to pay severance in connection with this resignation equivalent to one year of normal salary, less applicable deductions and withholdings on normal Company pay days and shall also pay one year of the monthly car allowance and will continue to pay the Company’s current premium contribution for this individual and her dependents if COBRA is elected, in exchange for reasonable assistance with the transition of the duties of this position during the severance period. Additionally, fully vested stock options of this individual on her termination date will not be cancelled and will retain their original expiration date. With respect to the unvested balance of 75,000 restricted stock units that this individual received on February 11, 2014, restrictions on 18,750 units shall lapse on February 11, 2016 and restrictions on 37,500 units shall lapse on the Severance End Date of May 31, 2016 and the balance of 18,750 units were cancelled. With respect to the unvested balance of 6,667 restricted stock units that this individual received on December 7, 2012, restrictions on these units shall lapse on December 7, 2015. The financial impact of these transactions have been accrued as of March 31, 2015.
	An individual has been hired as of April 6, 2015 to assume the positions of Vice President, Corporate Controller and Principal Accounting Officer effective as of May 31, 2015.
	Inducement Agreement. On April 16, 2015, the Company entered into an agreement (the “Inducement Agreement”) with all of the holders of its February 2014 Convertible Notes representing $65 million aggregate principal amount of the February 2014 Convertible Notes, pursuant to which such holders agreed to the removal of substantially all of the material restrictive covenants in the indenture governing the February 2014 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”), such Inducement Shares being in addition to the 18,055,556 shares of common stock underlying the February 2014 Convertible Notes which the Company shall issue upon conversion. The issuance of the Inducement Shares will be 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 February 2014 Convertible Notes for 145 days (the "lock-up period") subject to exceptions, including in connection with settling existing short positions with respect to the February 2014 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.
	$130 million 4.25% Convertible Senior Notes Due 2021. On April 17, 2015, the Company announced the pricing of the private offering of $130 million of 4.25% Convertible Senior Notes due 2021. The notes will pay interest semi-annually at a rate of 4.25% per annum and will mature on April 1, 2021, unless redeemed, repurchased or converted in accordance with their terms prior to such date. The notes will have an initial conversion rate, subject to adjustment, of 87.2030 shares of the Company’s common stock per $1,000 principal amount of the notes, representing a conversion price of approximately $11.47 per share of the Company’s common stock, based on the last reported sale price of $8.34 per share of the Company’s common stock on April 16, 2015. The gross proceeds from the offering will be $130 million. The Company used approximately $80.9 million of the gross proceeds from the offering to finance the cash consideration portion of the consideration necessary to consummate its previously announced acquisition of the Zohydro® ER franchise, and expects to use approximately $8.3 million to pay fees and expenses related to such acquisition and the offering, up to $2.2 million to pay the consent fee related to the Company’s previously announced consent solicitation of its 12.00% senior secured notes due 2020 and the remainder for working capital and other general corporate purposes, including to fund possible acquisitions of, or investments in, complementary businesses, products, services and technologies.
	Zohydro ER Acquisition. On April 24, 2015, the Company, through its wholly-owned subsidiary, Ferrimill, Limited (“Ferrimill”), an Irish corporation, completed its previously announced acquisition of the Zohydro® ER (hydrocodone bitartrate) franchise from Zogenix Inc., comprising three extended release hydrocodone products, including an abuse-deterrent pipeline and all related intellectual property. Under the terms of the Asset purchase Agreement, as amended (the “Asset Purchase Agreement”), Ferrimill (a) paid Zogenix $70 million in cash; (b) transferred 1,682,086 shares of Company common stock (with an approximate value of $20 million based on the $11.89 per share closing price of the Company’s common stock on March 9, 2015, the trading day immediately preceding the execution date of the Asset Purchase Agreement) to Zogenix (the “Stock Consideration”); and (c) deposited an additional $10 million in escrow to fund potential indemnification claims for a period of 12 months following the Closing Date.
	In addition to the consideration paid at Closing, Zogenix is eligible to receive additional cash payments of up to $283.5 million based on the achievement of pre-determined milestones, including a $12.5 million payment upon approval by the U.S. Food and Drug Administration of a third generation product currently in development in collaboration with Altus Formulation Inc. and up to $271 million in potential sales milestones. Under the terms of the Asset Purchase Agreement, over 80% of the value of the sales milestones is tied to the achievement of net sales targets ranging from $500 million to $1 billion, and Ferrimill has agreed to use Commercially Reasonable Efforts (as defined in the Asset Purchase Agreement) to meet such milestones. Following the Closing Date, Ferrimill will assume responsibility for Zogenix’s obligations under the purchased contracts and regulatory approvals, as well as other liabilities associated with the Zohydro ER business arising after the Closing Date, and Zogenix will retain all liabilities associated with the Zohydro ER business arising prior to the Closing Date.
	In connection with the acquisition of the Zohydro ER franchise, the Company will seek to hire certain employees of Zogenix, including the field sales force of approximately 100 sales professionals and additional personnel related to the Zohydro ER business.

14_Recent_Accounting_Pronounce

14. Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2015
Accounting Changes and Error Corrections [Abstract]
14. Recent Accounting Pronouncements	In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 will eliminate transaction- and industry-specific revenue recognition guidance under current GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and   changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016. Early application is not permitted. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the effect of the new revenue recognition guidance.

1_Company_Overview_Policies

1. Company Overview (Policies)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Principles of Consolidation	The condensed consolidated financial statements include the accounts of Pernix’s wholly-owned subsidiaries Pernix Therapeutics, LLC, GTA GP, Inc., GTA LP, Inc., Gaine, Inc., Macoven, Pernix Manufacturing, LLC, (“PML”) (closed on sale on April 21, 2014), Respicopea, Inc., Cypress, Cypress’ subsidiary, Hawthorn Pharmaceuticals, Inc., Pernix Sleep, Inc., also known as Somaxon Pharmaceuticals, Inc., or Somaxon and Pernix Ireland 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 (including our Regions Trust Account which invests in short-term securities consisting of sweep accounts, money market accounts and money market mutual funds), notes receivable, our credit facility and senior convertible notes. The carrying values of these assets and liabilities approximate their fair value.
Management's Estimates and Assumptions	The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. The Company reviews all significant estimates affecting the consolidated financial statements on a recurring basis and records the effect of any necessary adjustments prior to their issuance. 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.
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 months ended March 31, 2015 and 2014, or 10% of total accounts receivable as of March 31, 2015 and December 31, 2014.
Cost of Product Sales	Cost of product sales is comprised of (i) costs to manufacture or acquire products sold to customers; (ii) royalty, co-promotion and other revenue sharing payments under license and other agreements granting the Company rights to sell related products; (iii) direct and indirect distribution costs incurred in the sale of products; and (iv) the value of any write-offs or donations of obsolete or damaged inventory that cannot be sold. The Company acquired the rights to sell certain of its commercial products through license and assignment agreements with the original developers or other parties with interests in these products. These agreements obligate the Company to make payments under varying payment structures based on its net revenue from related products.
	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.  As a result, the Company recorded adjustments to increase the inventory to fair value in the amount of $8.6 million and $695,000 at the time of acquisition for Cypress and Somaxon, respectively.  For the three months ended March 31, 2015 and 2014, $97,000 and $1.6 million of the increase in the basis of the inventory was amortized and included in cost of product sales, as the inventory was subsequently sold.   The balance remaining of the increase in the basis of the inventory acquired was $0 as of March 31, 2015.

1_Company_Overview_Tables

1. Company Overview (Tables)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Significant Customers		Three Months Ended
		March 31,
		2015			2014
	McKesson Corporation		46	%		36	%
	AmerisourceBergen Drug Corporation		17	%		35	%
	Cardinal Health, Inc.		29	%		17	%
	Total		92	%		88	%
	Accounts Receivable:
		March 31,			December 31,
		2015			2014
	McKesson Corporation		46	%		29	%
	AmerisourceBergen Drug Corporation		20	%		42	%
	Cardinal Health, Inc.		27	%		18	%
	Total		93	%		89	%

2_Earnings_per_Share_Tables

2. Earnings per Share (Tables)	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
Earnings per Share		Three Months Ended
		March 31,
		2015			2014
	Numerator:
	Net loss	$	(23,674	)	$	(9,542	)
	Denominator:
	Weighted-average common shares, basic		38,453			37,271
	Dilutive effect of stock options	─			─
	Weighted-average common shares, diluted		38,453			37, 271
	Net loss per share, basic and diluted	$	(0.62	)	$	(0.26	)
Antidilutive securitites								Three Months Ended
								March 31,
								2015		2014
	Conversion of the February 2014 Convertible Notes								18,056		18,056
	Frontline warrants								241		─
	Pozen warrants								226		─
	Somaxon warrants								55		─
	Total potential dilutive effect of warrants								18,578		18,056

3_Fair_Value_Measurement_Table

3. Fair Value Measurement (Tables)	3 Months Ended
	Mar. 31, 2015
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	The following tables summarize the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 (in thousands):
			31-Mar-15
			Level 1		Level 2		Level 3		Total
	Assets
	Money market fund and trust cash sweep investments (1)		$	17,203	$	─	$	─	$	17,203
	Total Assets		$	17,203	$	─	$	─	$	17,203
			31-Dec-14
			Level 1		Level 2		Level 3		Total
	Assets
	Money market fund and trust cash sweep investments (1)		$	26,297	$	─	$	─	$	26,297
	Total Assets		$	26,297	$	─	$	─	$	26,297
	-1	The Company’s money market and trust cash sweep investments are included in cash and cash equivalents within the Condensed Consolidated Balance Sheet.

4_Inventory_Tables

4. Inventory (Tables)	3 Months Ended
	Mar. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory		March 31,		December 31,
		2015		2014
	Raw materials	$	3,065	$	417
	Packaging materials		61		82
	Samples		2,262		883
	Finished goods		9,648		12,200
	Inventory, gross		15,036		13,582
	Reserve for obsolescence		-2,295		(2,220	)
	I   Inventory, net	$	12,741	$	11,362

6_Intangible_Assets_and_Goodwi1

6. Intangible Assets and Goodwill (Tables)	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets	Intangible assets consist of the following (in thousands, except years):
					As of March 31, 2015
		Weighted		Gross Carrying Amount		Accumulated Amortization			Net Carrying
		Average Life							Amount
	Unamortized intangible assets:
	Trademark rights	Indefinite		$	400	$	─		$	400
	In-process research and development	Indefinite			48,300		─			48,300
	Total unamortized intangible assets				48,700		─			48,700
	Amortized intangible assets:
	Patents	11.0 years			500		(366	)		134
	Brand	8.0 years			3,887		(2,429	)		1,458
	Product licenses	11.0 years			17,581		(4,483	)		13,098
	Non-compete and supplier contracts	5.3 years			5,194		(4,490	)		704
	Acquired developed technologies	4.4 years			269,826		(51,795	)		218,031
	Total amortized intangible assets				296,988		(63,563	)		233,425
	Total intangible assets			$	345,688	$	(63,563	)	$	282,125
					As of December 31, 2014
		Weighted		Gross Carrying Amount		Accumulated Amortization			Net Carrying
		Average Life							Amount
	Unamortized intangible assets:
	Trademark rights	Indefinite		$	400	$	─		$	400
	In-process research and development	Indefinite			48,300		─			48,300
	Total unamortized intangible assets				48,700		─			48,700
	Amortized intangible assets:
	Patents	11.0 years			500		(355	)		145
	Brand	8.0 years			3,887		(2,308	)		1,579
	Product licenses	11.0 years			17,581		(4,058	)		13,523
	Non-compete and supplier contracts	5.3 years			5,194		(4,342	)		852
	Acquired developed technologies	4.4 years			269,826		(34,136	)		235,690
	Total amortized intangible assets				296,988		(45,199	)		251,789
	Total intangible assets			$	345,688	$	(45,199	)	$	300,489
Intangible Assets Estimated Amortization Expenses		Amount
	2015 (April – December)	$	55,353
	2016		72,864
	2017		71,198
	2018		12,887
	2019		4,347
	Thereafter		16,776
	Total	$	233,425

7_Accrued_Allowances_Tables

7. Accrued Allowances (Tables)	3 Months Ended
	Mar. 31, 2015
Accrued Liabilities [Abstract]
Accrued allowances		March 31,		December 31,
		2015		2014
	Accrued returns allowance	$	11,315	$	9,691
	Accrued price adjustments		35,438		32,945
	Accrued government program rebates		4,984		9,968
	Total	$	51,737	$	52,604

8_Debt_and_Lines_of_Credit_Tab

8. Debt and Lines of Credit (Tables)	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Debt consists			31-Mar-15		December 31,
					2014
	Amounts outstanding under the Midcap Credit Facility		$	10,659	$	7,345
	Senior secured notes (the “Treximet Notes”)			220,000		220,000
	February 2014 Convertible Notes			65,000		65,000
	Total debt		$	295,659	$	292,345
	Debt – current		$	14,543	$	7,345
	Debt – long term		$	281,116	$	285,000
Future maturity schedule of the outstanding debt and line of credit	As of March 31, 2015 (amounts in thousands)
	2015 (line of credit and current portion of Treximet Notes)	$	14,543
	2016		─
	2017		─
	2018		─
	2019		65,000
	Thereafter		216,116
	Total maturities	$	295,659

9_Stockholders_Equity_Tables

9. Stockholders’ Equity (Tables)	3 Months Ended
	Mar. 31, 2015
Stockholders Equity Tables
Stock option assumptions		Three Months Ended March 31,
		2015				2014
	Weighted average expected stock price volatility		73.7	%			74	%
	Estimated dividend yield		0	%			0	%
	Risk-free interest rate		1.6	%			1.8	%
	Expected life of option (in years)		6.3				6.1
	Weighted average grant date fair value per option	$	6.76			$	2.6
Stock option activity						Average Exercise Price			Weighted Average Remaining Contractual Life Years
											Aggregate Intrinsic Value
		Shares
	Options outstanding at December 31, 2014	4,551			$	5.35
	Granted	297				10.23
	Exercised	(39	)			3.92				$	211
	Cancelled	(91	)			7.43
	Expired	─				─
	Options outstanding at March 31, 2015	4,718			$	5.63			9	$	23,960
	Options vested and expected to vest as of March 31, 2015	3,936			$	5.57			8.9	$	20,204
	Options vested and exercisable as of March 31, 2015	680			$	4.45			7.8	$	4,248
Restricted stock activity					Weighted Average Grant Date Fair Value			Aggregate Intrinsic Value
		Shares
	Non-vested restricted stock outstanding at December 31, 2014	140			$	4.52
	Granted	─				─
	Vested	(56	)			6.09		$	539
	Forfeited	(19	)			3.09
	Non-vested restricted stock outstanding at March 31, 2015	65			$	3.58

12_Restructuring_Tables

12. Restructuring (Tables)	3 Months Ended
	Mar. 31, 2015
Restructuring and Related Activities [Abstract]
Accrued restructuring costs	31-Dec-14	Charges	Cash	Non-cash	31-Mar-15
	$             -	$    1,305	$          -	$          -	$    1,305

1_Company_Overview_Details

1. Company Overview (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	92.00%	88.00%
McKesson Corporation
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	46.00%	36.00%
Amerisource Bergen Drug Corporation
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	17.00%	35.00%
Cardinal Health Inc
Company's customers that individually comprised greater than 10% of total gross product sales
Percentage of gross product sales	29.00%	17.00%

1_Company_Overview_Details_1

1. Company Overview (Details 1)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Accounts Receivable
McKesson Corporation	46.00%	29.00%
AmerisourceBergen Drug Corporation	20.00%	42.00%
Cardinal Health, Inc.	27.00%	18.00%
Total	93.00%	89.00%

2_Earnings_per_Share_Details

2. Earnings per Share (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Numerator:
Net loss	($23,674)	($9,542)
Denominator:
Weighted-average common shares, basic	38,453	37,271
Dilutive effect of stock options	$0
Weighted-average common shares, diluted	38,453	37,271
Net loss per share, basic and diluted	($0.62)	($0.26)

2_Earnings_per_Share_Details_1

2. Earnings per Share (Details 1) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Accounting Policies [Abstract]
Conversion of the February 2014 Notes	$18,056	$18,056
Frontline warrants	241	0
Pozen warrants	226	0
Somaxon warrants	55	0
Total potential dilutive effect of warrants	$18,578	$18,056

3_Fair_Value_Measurement_Detai

3. Fair Value Measurement (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Assets
Money market fund and trust cash sweep investments (1)	$17,203	$26,297
Total Assets	17,203	26,297
Level 1 Member
Assets
Money market fund and trust cash sweep investments (1)	17,203	26,297
Total Assets	17,203	26,297
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

4_Inventories_Details

4. Inventories (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]
Raw materials	$3,065	$417
Packaging materials	61	82
Samples	2,262	883
Finished goods	9,648	12,200
Inventory gross	15,036	13,582
Reserve for obsolescence	-2,295	-2,220
Inventory, net	$12,741	$11,362

4_Inventories_Details_Narrativ

4. Inventories (Details Narrative) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Increase in raw materials	$0	$97,000

6_Intangible_Assets_and_Goodwi2

6. Intangible Assets and Goodwill (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Intangible assets consist of the following
Gross Carrying Amount	$345,688	$345,688
Accumulated Amortization	-63,563	-45,199
Net Carrying Amount	282,125	300,489
Trademark rights Member
Intangible assets consist of the following
Gross Carrying Amount	400	400
Accumulated Amortization	0	0
Net Carrying Amount	400	400
In Process Research And Development Member
Intangible assets consist of the following
Gross Carrying Amount	48,300	48,300
Accumulated Amortization	0	0
Net Carrying Amount	48,300	48,300
Total Indefinite Lived
Intangible assets consist of the following
Gross Carrying Amount	48,700	48,700
Accumulated Amortization	0	0
Net Carrying Amount	48,700	48,700
Patents Member
Intangible assets consist of the following
Weighted Average Life	11 years	11 years
Gross Carrying Amount	500	500
Accumulated Amortization	-366	-355
Net Carrying Amount	134	145
Brand Member
Intangible assets consist of the following
Weighted Average Life	8 years	8 years
Gross Carrying Amount	3,887	3,887
Accumulated Amortization	-2,429	-2,308
Net Carrying Amount	1,458	1,579
Product Licenses Member
Intangible assets consist of the following
Weighted Average Life	11 years	11 years
Gross Carrying Amount	17,581	17,581
Accumulated Amortization	-4,483	-4,058
Net Carrying Amount	13,098	13,523
Noncompete And Supplier Contracts Member
Intangible assets consist of the following
Weighted Average Life	5 years 3 months 18 days	5 years 3 months 18 days
Gross Carrying Amount	5,194	5,194
Accumulated Amortization	-4,490	-4,342
Net Carrying Amount	704	852
Acquired Developed Technology Member
Intangible assets consist of the following
Weighted Average Life	4 years 4 months 24 days	4 years 4 months 24 days
Gross Carrying Amount	269,826	269,826
Accumulated Amortization	-51,795	-34,136
Net Carrying Amount	218,031	235,690
Total Definite Lived
Intangible assets consist of the following
Gross Carrying Amount	296,988	296,988
Accumulated Amortization	-63,563	-45,199
Net Carrying Amount	$233,425	$251,789

6_Intangible_Assets_and_Goodwi3

6. Intangible Assets and Goodwill (Details 1) (USD $)	Mar. 31, 2015
In Thousands, unless otherwise specified
Estimated amortization expense related to intangible assets
2015 (April – December)	$55,353
2016	72,864
2017	71,198
2018	12,887
2019	4,347
Thereafter	16,776
Total	$233,425

6_Intangible_Assets_and_Goodwi4

6. Intangible Assets and Goodwill (Details Narrative) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$18,400	$2,000

7_Accrued_Allowances_Details

7. Accrued Allowances (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Accrued Allowances Details
Accrued returns allowance	$11,315	$9,691
Accrued price adjustments	35,438	32,945
Accrued government program rebates	4,984	9,968
Total	$51,737	$52,604

8_Debt_and_Lines_of_Credit_Det

8. Debt and Lines of Credit (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Total debt	$295,659	$292,345
Debt - current	14,543	7,345
Debt - long term	281,116	285,000
Amounts outstanding under the Credit Facility - MidCap Funding V, LLC [Member]
Total debt	10,659	7,345
Senior secured notes
Total debt	220,000	220,000
February 2014 Convertible Notes [Member]
Total debt	$65,000	$65,000

8_Debt_and_Lines_of_Credit_Det1

8. Debt and Lines of Credit (Details 1) (USD $)	Mar. 31, 2015
In Thousands, unless otherwise specified
Debt And Lines Of Credit Details 1
2015 (line of credit and current portion of Treximet Notes)	$14,543
2016	0
2017	0
2018	0
2019	65,000
Thereafter	216,116
Total maturities	$295,659

9_Stockholders_Equity_Details

9. Stockholders’ Equity (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Weighted average of the assumptions used to value stock options on the date of grant
Weighted average expected stock price volatility	73.70%	74.00%
Estimated dividend yield	0.00%	0.00%
Risk-free interest rate	1.60%	1.80%
Expected life of option (in years)	6 years 3 months 18 days	6 years 1 month 6 days
Weighted average fair value per share	$6.76	$2.60

9_Stockholders_Equity_Details_

9. Stockholders’ Equity (Details 1) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015
Shares
Outstanding at December 31, 2014	4,551
Granted	297
Exercised	-39
Cancelled	-91
Expired	0
Outstanding at March 31, 2015	4,718
Vested and expected to vest, end of period	3,936
Vested and exercisable, end of period	680
Average Exercise Price
Outstanding at December 31, 2014	$5.35
Granted	$10.23
Exercised	$3.92
Cancelled	$7.43
Expired
Outstanding at March 31, 2015	$5.63
Vested and expected to vest, end of period	$5.57
Vested and exercisable, end of period	$4.45
Weighted Average Remaining Contractual Life Years
Options outstanding at March 31, 2015	9 years
Options vested and expected to vest, end of period	8 years 10 months 24 days
Options vested and exercisable, end of period	7 years 9 months 18 days
Aggregate Intrinsic Value
Exercised	$211
Options outstanding at March 31, 2015	23,960
Options vested and expected to vest as of March 31, 2015	20,204
Options vested and exercisable, end of period	$4,248

9_Stockholders_Equity_Details_1

9. Stockholders’ Equity (Details 2) (Restricted shares, USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015
Restricted shares
Non-vested restricted stock outstanding at December 31, 2014	140
Granted	0
Vested	-56
Forfeited	-19
Non-vested restricted stock outstanding at March 31, 2015	65
Weighted Average Grant Date Fair Value	$4.52
Granted
Vested	$6.09
Forfeited	$3.09
Weighted Average Grant Date Fair Value	$3.58
Aggregate Intrinsic Value, Vested	$539

11_Commitments_and_Contingenci1

11. Commitments and Contingencies (Details Narrative) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015
Minimum quarterly royalty payments	$4,000
Somaxon
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 March 31, 2015, remaining payment obligations owed by Somaxon under these settlement agreements are $2.3 million, payable in equal annual installments of $250,000 through 2019, and equal installments of $500,000 through 2017.
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.
GSK
Settlement description	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 and GSK are currently negotiating the terms of an interim settlement agreement pursuant to which the parties will submit the disputed matters to arbitration and the Company will make certain payments to GSK and escrow additional funds in advance of resolution of the disputed matters in such arbitration. The Company made a payment of approximately $3.0 million to GSK and intends to deposit an additional approximately $1.8 million into an escrow account on account of the settlement of disputed amounts relating to calendar year 2014 and made a payment of approximately $573,000 and intends to escrow an additional approximately $344,000 related to January and February 2015. The amounts paid by the Company to GSK and escrowed represent approximately 57% of the amounts GSK claims are owed to them as a result of the CompanyÂ’s alleged breach. As it relates to these amounts, the Company had accrued $3.5 million at December 31, 2014 in connection with this dispute and recorded an additional $1.3 million during the three months ended March 31, 2015 related to GSKÂ’s 2014 claims. The amounts paid and to be escrowed by the Company for 2015 GSK claims are consistent the amounts accrued by the Company for managed care rebates and fees during the three months ended March 31, 2015. While the Company intends to vigorously contest GSK's allegations that its damages are a result of the CompanyÂ’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 CompanyÂ’s financial results.

12_Restructuring_Details

12. Restructuring (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Restructuring Details
Accrued restructuring costs	$1,305		$0
Restructuring charges	1,305	0
Restructuring cash	0
Restructuring noncash	$0