DURECT (DRRX) 10-Q 6 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Trading Symbol	DRRX
Entity Registrant Name	DURECT CORP
Entity Central Index Key	1,082,038
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		137,362,363

Condensed Balance Sheets

Condensed Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 3,853	$ 3,583
Short-term investments	20,181	25,457
Short-term restricted investments	100
Accounts receivable (net of allowances of $147 at March 31, 2016 and $161 at December 31, 2015)	1,722	2,222
Inventories	4,007	3,917
Prepaid expenses and other current assets	3,074	3,142
Total current assets	32,937	38,321
Property and equipment (net of accumulated depreciation of $21,065 and $20,971 at March 31, 2016 and December 31, 2015, respectively)	1,477	1,566
Goodwill	6,399	6,399
Long-term restricted investments	150	250
Other long-term assets	236	236
Total assets	41,199	46,772
Current liabilities:
Accounts payable	994	1,286
Accrued liabilities	4,552	4,970
Contract research liabilities	454	575
Deferred revenue, current portion	464	616
Current portion of long-term debt, net	1,826
Total current liabilities	8,290	7,447
Deferred revenue, non-current portion	2,206	2,269
Long-term debt, net	17,892	19,684
Other long-term liabilities	$ 2,585	$ 2,489
Commitments and contingencies
Stockholders' equity:
Preferred stock
Common stock	$ 12	$ 12
Additional paid-in capital	423,631	420,453
Accumulated other comprehensive income	3	(14)
Accumulated deficit	(413,420)	(405,568)
Stockholders' equity	10,226	14,883
Total liabilities and stockholders' equity	$ 41,199	$ 46,772

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowances for accounts receivable	$ 147	$ 161
Accumulated depreciation on property and equipment	$ 21,065	$ 20,971

Condensed Statements of Compreh

Condensed Statements of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Collaborative research and development and other revenue (see Note 2)	$ 419	$ 1,738
Product revenue, net	3,189	3,035
Total revenues	3,608	4,773
Operating expenses:
Cost of product revenues	1,242	1,006
Research and development	6,625	5,367
Selling, general and administrative	3,062	2,820
Total operating expenses	10,929	9,193
Loss from operations	(7,321)	(4,420)
Other income (expense):
Interest and other income	27	128
Interest expense	(558)	(561)
Net other income (expense)	(531)	(433)
Net loss	(7,852)	(4,853)
Net change in unrealized gain (loss) on available-for-sale securities, net of reclassification adjustments and taxes	17	(85)
Total comprehensive loss	$ (7,835)	$ (4,938)
Net loss per share
Basic	$ (0.06)	$ (0.04)
Diluted	$ (0.06)	$ (0.04)
Weighted-average shares used in computing net loss per share
Basic	122,149	113,793
Diluted	122,149	113,793

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net loss	$ (7,852)	$ (4,853)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	101	144
Stock-based compensation	710	650
Amortization of debt issuance cost	34	19
Realized gain from sale of marketable equity security, net of tax		(117)
Changes in assets and liabilities:
Accounts receivable	500	(121)
Inventories	(91)	(165)
Prepaid expenses and other assets	68	(368)
Accounts payable	(292)	(131)
Accrued and other liabilities	827	(729)
Contract research liabilities	(121)	(51)
Deferred revenue	(215)	376
Total adjustments	1,521	(493)
Net cash used in operating activities	(6,331)	(5,346)
Cash flows from investing activities
Purchases of property and equipment	(12)	(9)
Purchases of available-for-sale securities	(5,186)	(2,995)
Proceeds from maturities of available-for-sale securities	10,479	7,243
Proceeds from sales of short-term investment		178
Net cash provided by investing activities	5,281	4,417
Cash flows from financing activities
Payments on equipment financing obligations	(6)	(4)
Net proceeds from issuances of common stock	1,326	242
Net cash provided by financing activities	1,320	238
Net increase (decrease) in cash and cash equivalents	270	(691)
Cash and cash equivalents, beginning of the period	3,583	2,680
Cash and cash equivalents, end of the period	$ 3,853	$ 1,989

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1. Summary of Significant Accounting Policies Nature of Operations DURECT Corporation (the Company) was incorporated in the state of Delaware on February 6, 1998. The Company is a biopharmaceutical company with research and development programs broadly falling into two categories: (i) new chemical entities derived from our Epigenomics Regulator Program, in which we attempt to discover and develop molecules which have not previously been approved and marketed as therapeutics, and (ii) Drug Delivery Programs, in which we apply our formulation expertise and technologies largely to active pharmaceutical ingredients whose safety and efficacy have previously been established but which we aim to improve in some manner through a new formulation. The Company has several products under development by itself and with third party collaborators. The Company also manufactures and sells osmotic pumps used in laboratory research, and designs, develops and manufactures a wide range of standard and custom biodegradable polymers and excipients for pharmaceutical and medical device clients for use as raw materials in their products. In addition, the Company conducts research and development of pharmaceutical products in collaboration with third party pharmaceutical and biotechnology companies. Basis of Presentation The accompanying unaudited financial statements include the accounts of the Company. These financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC), and therefore do not include all the information and footnotes necessary for a complete presentation of the Company’s results of operations, financial position and cash flows in conformity with U.S. generally accepted accounting principles (U.S. GAAP). The unaudited financial statements reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position at March 31, 2016, the operating results and comprehensive loss for the three months ended March 31, 2016 and 2015, and cash flows for the three months ended March 31, 2016 and 2015. The balance sheet as of December 31, 2015 has been derived from audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements and notes should be read in conjunction with the Company’s audited financial statements and notes thereto, included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC. The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year. Inventories Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventories, in part, include certain excipients that are sold to a customer and included in products awaiting regulatory approval. These inventories are capitalized based on management’s judgment of probable sale prior to their expiration date which in turn is primarily based on non-binding forecasts from our customers as well as management’s internal estimates. The valuation of inventory requires management to estimate the value of inventory that may become expired prior to use. The Company may be required to expense previously capitalized inventory costs upon a change in management’s judgment, due to, among other potential factors, a denial or delay of approval of a customer’s product by the necessary regulatory bodies, or new information that suggests that the inventory will not be saleable. In addition, these circumstances may cause the Company to record a liability related to minimum purchase agreements that the Company has in place for raw materials. In 2014, the Company recorded charges to cost of goods sold of approximately $1.6 million, of which approximately $1.1 million related to the write-down of the cost basis of inventory and $500,000 related to the accrual of a liability for the minimum purchase commitment for the excipients. As of March 31, 2016, the remaining carrying value of the excipients in the Company’s inventory was $1.2 million. In addition, the Company has remaining unrecorded future purchase commitments totaling $1.5 million through 2018. In the event that management determines that the Company will not utilize all of these materials, there could be a potential write-off related to this inventory and a reserve for future purchase commitments. The Company’s inventories consisted of the following (in thousands): March 31, December 31, (unaudited) Raw materials $ 1,168 $ 1,168 Work in process 1,415 1,412 Finished goods 1,424 1,337 Total inventories $ 4,007 $ 3,917 Revenue Recognition Revenue from the sale of products is recognized when there is persuasive evidence that an arrangement exists, the product is shipped and title transfers to customers, provided no continuing obligation on the Company’s part exists, the price is fixed or determinable and the collectability of the amounts owed is reasonably assured. The Company enters into license and collaboration agreements under which it may receive upfront license fees, research funding and contingent milestone payments and royalties. The Company’s deliverables under these arrangements typically consist of granting licenses to intellectual property rights and providing research and development services. The accounting standards contain a presumption that separate contracts entered into at or near the same time with the same entity or related parties were negotiated as a package and should be evaluated as a single agreement. Comprehensive Income (Loss) Components of other comprehensive income (loss) are comprised entirely of unrealized gains and losses on the Company’s available-for-sale securities and marketable equity security for all periods presented. Total comprehensive loss has been disclosed in the Company’s Condensed Statements of Comprehensive Loss. Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and common stock equivalents (i.e., options to purchase common stock) outstanding during the period, if dilutive, using the treasury stock method for options and warrants. Options to purchase approximately 20.4 million and 23.3 million shares of common stock were excluded from the denominator in the calculation of diluted net loss per share for the three months ended March 31, 2016 and 2015, respectively, as the effect would be anti-dilutive. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition—Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance provides companies with two implementation methods. Companies can choose to apply the standard retrospectively to each prior reporting period presented (full retrospective application) or retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). The standard was to have been effective for public entities for annual and interim periods beginning after December 15, 2016. In July 2015, the FASB voted to delay the effective date for this guidance. This guidance will be effective for the Company in the first quarter of 2018. The Company is currently evaluating the impact of the provisions of ASC 606. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). This update is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments: (1) provide a definition of the term substantial doubt; (2) require an evaluation every reporting period including interim periods; (3) provide principles for considering the mitigating effect of management’s plans; (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans; (5) require an express statement and other disclosures when substantial doubt is not alleviated; and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 will be effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016, with early adoption permitted. ASU 2014-15 will be effective for the Company beginning with its annual report for fiscal 2016 and interim periods thereafter. The Company is currently evaluating the impact that ASU 2014-15 will have on its financial statements. In November 2015, the FASB issued Accounting Standards Update 2015-17(ASU 2015-17), Balance Sheet Classification of Deferred Taxes to simplify the presentation of deferred income taxes. The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The new guidance will be effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those years (i.e., in the first quarter of 2017 for calendar year-end companies). Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The guidance may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively (i.e., by reclassifying the comparative balance sheet). The Company has early adopted ASU 2015-17, on a prospective basis, for the year ended December 31, 2015.

Strategic Agreements

Strategic Agreements	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Strategic Agreements	Note 2. Strategic Agreements The collaborative research and development and other revenues associated with the Company’s major third-party collaborators are as follows (in thousands): Three months ended 2016 2015 Collaborator Zogenix, Inc. (Zogenix) (1) $ 246 $ 1,158 Santen Pharmaceutical Co. Ltd. (Santen) (2) 162 307 Pain Therapeutics, Inc. (Pain Therapeutics) 4 — Others 7 273 Total collaborative research and development and other revenue $ 419 $ 1,738 (1) Amounts related to ratable recognition of upfront fees were $52,000 and $64,000 for the three months ended March 31, 2016 and 2015, respectively. (2) Amounts related to ratable recognition of upfront fees were $57,000 and $71,000 for the three months ended March 31, 2016 and 2015, respectively. Agreement with Pain Therapeutics, Inc. In December 2002, the Company entered into an exclusive agreement with Pain Therapeutics, Inc. (Pain Therapeutics) to develop and commercialize on a worldwide basis REMOXY and other oral sustained release, abuse deterrent opioid products incorporating four specified opioid drugs, using the ORADUR technology. Total collaborative research and development revenue recognized under the agreements with Pain Therapeutics was $4,000 and zero for the three months ended March 31, 2016 and 2015, respectively. In May 2015, Pain Therapeutics sent a letter to the Company that provided the Company with formal written notice that Pain Therapeutics was deleting, effective as of January 12, 2015, the opioid drug hydrocodone (and only hydrocodone) as a licensed product under the agreement. The letter did not alter the terms of the agreement regarding the remaining three licensed products (REMOXY, hydromorphone or oxymorphone) or otherwise amend the agreement. Under the agreement with Pain Therapeutics, subject to and upon the achievement of predetermined development and regulatory milestones for the three drug candidates, the Company is entitled to receive milestone payments of up to $7.2 million in the aggregate. The cumulative aggregate payments received by the Company from Pain Therapeutics as of March 31, 2016 were $39.0 million under this agreement. Under the terms of this agreement, Pain Therapeutics paid the Company an upfront license fee of $1.0 million, with the potential for an additional $7.2 million in performance milestone payments based on the successful development and approval of the three ORADUR-based opioids. Of these potential milestones, all $7.2 million are development-based milestones. There are no sales-based milestones under the agreement. As of March 31, 2016, the Company had received $1.7 million in cumulative milestone payments. In March 2009, King Pharmaceuticals (King) assumed the responsibility for further development of REMOXY from Pain Therapeutics. As a result of this change, the Company continued to perform REMOXY-related activities in accordance with the terms and conditions set forth in the license agreement between the Company and Pain Therapeutics. King was substituted in lieu of Pain Therapeutics with respect to interactions with the Company in its performance of those activities including the obligation to pay the Company with respect to all REMOXY-related costs incurred by the Company. In February 2011, Pfizer acquired King and thereby assumed the rights and obligations of King with respect to REMOXY; accordingly, amounts attributed to King are shown as Pfizer figures. In October 2014, Pfizer notified Pain Therapeutics that Pfizer had decided to discontinue development of REMOXY, and that Pfizer would return all rights, including responsibility for regulatory activities, to Pain Therapeutics and that Pfizer would continue ongoing activities under the agreement until the scheduled termination date in April 2015. In July 2015, Pain Therapeutics stated that it had substantially completed the transition of REMOXY from Pfizer. In March 2016, Pain Therapeutics announced that it had resubmitted the NDA to the FDA, and in April 2016, Pain Therapeutics announced that the FDA had determined that the NDA was sufficiently complete to permit a substantive review. Pain Therapeutics further stated that September 25, 2016 is the target action date under the Prescription Drug User Fee Act (PDUFA). Total collaborative research and development revenue recognized for REMOXY-related work performed by the Company for Pfizer was zero for both three months ended March 31, 2016 and 2015. The cumulative aggregate payments received by the Company from Pfizer as of March 31, 2016 were $7.1 million under this agreement. Total collaborative research and development revenue recognized for REMOXY-related work performed by the Company for Pain Therapeutics was $4,000 and zero for the three months ended March 31, 2016 and 2015, respectively. Prior to March 2009 and after November 2014, the Company recognized collaborative research and development revenue for REMOXY-related work for Pain Therapeutics. The cumulative aggregate payments received by the Company from Pain Therapeutics as of March 31, 2016 were $39.0 million under this agreement. Long Term Supply Agreement with King (Pfizer) In August 2009, the Company signed an exclusive long term excipient supply agreement with respect to REMOXY with King. In February 2011, Pfizer acquired King and thereby assumed the rights and obligations of King with respect to this long term supply agreement. This agreement stipulated the terms and conditions under which the Company would supply to King, based on the Company’s manufacturing cost plus a specified percentage mark-up, two key excipients used in the manufacture of REMOXY. The term of the agreement commenced in August 2009 and continued in effect until April 2015, when the related development and license agreement between Pain Therapeutics and King terminated. Total revenues recognized related to these excipients was $279,000 and $96,000 for the three months ended March 31, 2016 and 2015, respectively. The associated cost of goods sold was $124,000 and $51,000 for the three months ended March 31, 2016 and 2015, respectively. Recent orders for these excipients from Pain Therapeutics have been processed through mutually agreeable purchase orders, in the absence of an existing long-term contract. Pursuant to the Company’s 2002 agreement with Pain Therapeutics, we are to be the exclusive supplier of certain defined excipients for products in our collaboration. Agreement with Zogenix, Inc. On July 11, 2011, the Company and Zogenix, Inc., (Zogenix), entered into a Development and License Agreement (the Zogenix Agreement). The Company and Zogenix had previously been working together under a feasibility agreement pursuant to which the Company’s research and development costs were reimbursed by Zogenix. Under the Zogenix Agreement, Zogenix will be responsible for the clinical development and commercialization of a proprietary, long-acting injectable formulation of risperidone using the Company’s SABER controlled-release formulation technology in combination with Zogenix’s DosePro ® Zogenix paid a non-refundable upfront fee to the Company of $2.25 million in July 2011. The Company’s research and development services are considered integral to utilizing the licensed intellectual property and, accordingly, the deliverables are accounted for as a single unit of accounting. The $2.25 million upfront fee is being recognized as collaborative research and development revenue ratably over the term of the Company’s continuing research and development involvement with Zogenix with respect to this product candidate. Zogenix is obligated to pay the Company up to $103 million in total future milestone payments with respect to the product subject to and upon the achievement of various developments, regulatory and sales milestones. Of these potential milestones, $28 million are development-based milestones (none of which has been achieved as of March 31, 2016), and $75 million are sales-based milestones (none of which had been achieved as of March 31, 2016). Zogenix is also required to pay a mid single-digit to low double-digit percentage patent royalty on annual net sales of the product determined on a jurisdiction-by-jurisdiction basis. The patent royalty term is equal to the later of the expiration of all DURECT technology patents or joint patent rights in a particular jurisdiction, the expiration of marketing exclusivity rights in such jurisdiction, or 15 years from first commercial sale in such jurisdiction. After the patent royalty term, Zogenix will continue to pay royalties on annual net sales of the product at a reduced rate for so long as Zogenix continues to sell the product in the jurisdiction. Zogenix is also required to pay to the Company a tiered percentage of fees received in connection with any sublicense of the licensed rights. The Company granted to Zogenix an exclusive worldwide license, with sub-license rights, to the Company’s intellectual property rights related to the Company’s proprietary polymeric and non-polymeric controlled-release formulation technology to make and have made, use, offer for sale, sell and import risperidone products, where risperidone is the sole active agent, for administration by injection in the treatment of schizophrenia, bipolar disorder or other psychiatric related disorders in humans. The Company retains the right to supply Zogenix’s Phase III clinical trial and commercial product requirements on the terms set forth in the Zogenix Agreement. Zogenix may terminate the Zogenix Agreement without cause at any time upon prior written notice, and either party may terminate the Zogenix Agreement upon certain circumstances including written notice of a material uncured breach. The following table provides a summary of collaborative research and development revenue recognized under the agreements with Zogenix (in thousands). The cumulative aggregate payments received by the Company as of March 31, 2016 were $19.7 million under these agreements. Three months ended 2016 2015 Ratable recognition of upfront payment $ 52 $ 64 Research and development expenses reimbursable by Zogenix 194 1,094 Total collaborative research and development revenue $ 246 $ 1,158 Agreement with Santen Pharmaceutical Co., Ltd. On December 11, 2014, the Company and Santen Pharmaceutical Co., Ltd. (Santen) entered into a definitive agreement (the Santen Agreement). Pursuant to the Santen Agreement, the Company granted Santen an exclusive worldwide license to the Company’s proprietary SABER formulation platform and other intellectual property to develop and commercialize a sustained release product utilizing the Company’s SABER technology to deliver an ophthalmology drug. Santen will control and fund the development and commercialization program, and the parties have established a joint management committee to oversee, review and coordinate the development activities of the parties under the Santen Agreement. In connection with the Santen agreement, Santen agreed to pay the Company an upfront fee of $2.0 million in cash and to make contingent cash payments to the Company of up to $76.0 million upon the achievement of certain milestones, of which $13.0 million are development-based milestones and $63.0 million are commercialization-based milestones including milestones requiring the achievement of certain product sales targets (none of which has been achieved as of March 31, 2016). Santen will also pay for certain Company costs incurred in the development of the licensed product. If the product is commercialized, the Company would also receive a tiered royalty on annual net product sales ranging from single-digit to the low double digits, determined on a country-by-country basis. Santen may terminate the Santen Agreement without cause at any time upon prior written notice, and either party may terminate the Santen Agreement upon certain circumstances including written notice of a material uncured breach. As of March 31, 2016, the cumulative aggregate payments received by the Company under this agreement were $2.7 million. The following table provides a summary of collaborative research and development revenue recognized under the Santen Agreement (in thousands). Three months ended 2016 2015 Ratable recognition of upfront payment $ 57 $ 71 Research and development expenses reimbursable by Santen 105 236 Total collaborative research and development revenue $ 162 $ 307

Financial Instruments

Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Financial Instruments	Note 3. Financial Instruments 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 Company’s valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The Company follows a fair value hierarchy 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. These levels of inputs are the following: • Level 1—Quoted prices in active markets for identical assets or liabilities. • 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. • 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 Company’s financial instruments are valued using quoted prices in active markets or based upon other observable inputs. Money market funds are classified as Level 1 financial assets. Certificates of deposit, commercial paper, corporate debt securities, and U.S. Government agency securities are classified as Level 2 financial assets. The fair value of the Level 2 assets is estimated using pricing models using current observable market information for similar securities. The Company’s Level 2 investments include U.S. government-backed securities and corporate securities that are valued based upon observable inputs that may include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. The fair value of commercial paper is based upon the time to maturity and discounted using the three-month treasury bill rate. The average remaining maturity of the Company’s Level 2 investments as of March 31, 2016 is less than twelve months and these investments are rated by S&P and Moody’s at AAA or AA- for securities and A1 or P1 for commercial paper. The following is a summary of available-for-sale securities as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 Amortized Unrealized Unrealized Estimated Money market funds $ 86 $ — $ — $ 86 Certificates of deposit 250 — — 250 Commercial paper 2,844 — — 2,844 Corporate debt 4,241 — (1 ) 4,240 U.S. Government agencies 14,570 6 (2 ) 14,574 $ 21,991 $ 6 $ (3 ) $ 21,994 Reported as: Cash and cash equivalents $ 1,563 $ — $ — $ 1,563 Short-term investments 20,178 6 (3 ) 20,181 Short-term restricted investments 100 — — 100 Long-term restricted investments 150 — — 150 $ 21,991 $ 6 $ (3 ) $ 21,994 December 31, 2015 Amortized Unrealized Unrealized Estimated Money market funds $ 81 $ — $ — $ 81 Certificates of deposit 250 — — 250 Commercial paper 898 — — 898 Corporate debt 5,215 1 (5 ) 5,211 U.S. Government agencies 19,558 1 (11 ) 19,548 $ 26,002 $ 2 $ (16 ) $ 25,988 Reported as: Cash and cash equivalents $ 281 $ — $ — $ 281 Short-term investments 25,471 2 (16 ) 25,457 Long-term restricted investments 250 — — 250 $ 26,002 $ 2 $ (16 ) $ 25,988 The following is a summary of the cost and estimated fair value of available-for-sale securities at March 31, 2016, by contractual maturity (in thousands): March 31, 2016 Amortized Estimated Mature in one year or less $ 21,905 $ 21,908 Mature after one year through five years — — $ 21,905 $ 21,908 There were no securities that have had an unrealized loss for more than 12 months as of March 31, 2016. As of March 31, 2016, unrealized losses on available-for-sale investments are not attributed to credit risk and are considered to be temporary. The Company believes that it is more-likely-than-not that investments in an unrealized loss position will be held until maturity or the recovery of the cost basis of the investment. To date, the Company has not recorded any impairment charges on marketable securities related to other-than-temporary declines in market value.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Note 4. Stock-Based Compensation As of March 31, 2016, the Company had three stock-based compensation plans. The stock-based compensation cost that has been included in the statements of comprehensive loss is shown as below (in thousands): Three months ended 2016 2015 Cost of product revenues $ 27 $ 29 Research and development 353 351 Selling, general and administrative 330 270 Total stock-based compensation $ 710 $ 650 As of March 31, 2016 and December 31, 2015, $15,000 and $13,000 of stock-based compensation cost was capitalized in inventory on the Company’s balance sheets, respectively. The Company uses the Black-Scholes option pricing model to value its stock options. The expected life computation is based on historical exercise patterns and post-vesting termination behavior. The Company considered its historical volatility in developing its estimate of expected volatility. The Company used the following assumptions to estimate the fair value of stock options granted (including fully vested options issued in January 2016 and 2015) and shares purchased under its employee stock purchase plan for the three months ended March 31, 2016 and 2015: Stock Options Employee Stock Three months ended Three months ended 2016 2015 2016 2015 Risk-free rate 1.6-1.9% 1.4-2.0% 0.3% 0.1% Expected dividend yield — — — — Expected life of option (in years) 6.5-9.3 6.5-10.0 0.5 0.5 Volatility 77-83% 78-85% 68% 95% Forfeiture rate 4.2% 6.0% — —

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Note 5. Long-Term Debt On June 26, 2014, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) with Oxford Finance LLC, pursuant to which Oxford provided a $20 million secured single-draw term loan to the Company with a maturity date of July 1, 2018. The term loan was fully drawn at close and the proceeds are to be used for working capital and general business requirements. The term loan repayment schedule provides for interest only payments for the first 18 months, followed by consecutive equal monthly payments of principal and interest in arrears starting on February 1, 2016 and continuing through the maturity date. The Loan Agreement provides for a 7.95% interest rate on the term loan, a $150,000 facility fee that was paid at closing and an additional payment equal to 8% of the principal amount of the term loan, which is due when the term loan becomes due or upon the prepayment of the facility. If the Company elects to prepay the loan, there is also a prepayment fee between 1% and 3% of the principal amount of the term loan depending on the timing and circumstances of prepayment. In connection with the term loan, the Company received proceeds of $19.8 million, net of debt offering/issuance costs. The debt offering/issuance costs have been recorded as debt discount on the Company’s balance sheet which together with the final $1.6 million payment and fixed interest rate payments will be amortized to interest expense throughout the life of the term loan using the effective interest rate method. The term loan is secured by substantially all of the assets of the Company, except that the collateral does not include any intellectual property (including licensing, collaboration and similar agreements relating thereto), and certain other excluded assets. The Loan Agreement contains customary representations, warranties and covenants by the Company, which covenants limit the Company’s ability to convey, sell, lease, transfer, assign or otherwise dispose of certain assets of the Company; engage in any business other than the businesses currently engaged in by the Company or reasonably related thereto; liquidate or dissolve; make certain management changes; undergo certain change of control events; create, incur, assume, or be liable with respect to certain indebtedness; grant certain liens; pay dividends and make certain other restricted payments; make certain investments; and make payments on any subordinated debt. The Loan Agreement also contains customary indemnification obligations and customary events of default, including, among other things, our failure to fulfill certain obligations of the Company under the Loan Agreement and the occurrence of a material adverse change which is defined as a material adverse change in the Company’s business, operations, or condition (financial or otherwise), a material impairment of the prospect of repayment of any portion of the loan, or a material impairment in the perfection or priority of lender’s lien in the collateral or in the value of such collateral. In the event of default by the Company under the Loan Agreement, the lender would be entitled to exercise its remedies thereunder, including the right to accelerate the debt, upon which the Company may be required to repay all amounts then outstanding under the Loan Agreement, which could harm the Company’s financial condition. The conditionally exercisable call option related to the event of default is considered to be an embedded derivative which is required to be bifurcated and accounted for as a separate financial instrument. In the periods presented, the value of the embedded derivative is not material, but could become material in future periods if an event of default became more probable than is currently estimated. In July 2015, the Company and Oxford Finance entered into the First Amendment of the Loan Agreement and modified the terms to the Loan Agreement to change the maturity date from July 1, 2018 to July 1, 2019 and to change the first principal payment date from February 1, 2016 to February 1, 2017. The interest rate remains unchanged, the Company paid a loan modification fee of $240,000 and the additional payment originally equal to 8% of the principal amount of the term loan, which is due when the term loan becomes due or upon the prepayment of the facility, was increased to 10%. Consistent with the accounting treatment noted above for the final payment, the loan modification fee has been recorded on the balance sheet as a debt discount and will be amortized to interest expense over the remaining life of the term loan using the effective interest method. As of March 31, 2016, the Company was in compliance with all material covenants under the Loan Agreement and there had been no material adverse change. As of March 31, 2016, the carrying value of the term loan approximated its fair value based on Level 3 unobservable inputs involving discounted cash flows and the estimated market rate of borrowing that could be obtained by companies with credit risk similar to the Company’s credit risk. Future maturities and interest payments under the term loan as of March 31, 2016, are as follows (in thousands): Nine months ended December 31, 2016 $ 1,193 2017 8,848 2018 8,848 2019 6,424 Total minimum payments 25,313 Less amount representing interest (5,313 ) Gross balance of long-term debt 20,000 Less unamortized debt discount (282 ) Carrying value of long-term debt 19,718 Less current portion of long-term debt (1,826 ) Long-term debt, less current portion and unamortized debt discount $ 17,892 Interest expense, including amortization of the debt discount, related to the long-term debt was $557,000 for both the three months ended March 31, 2016 and 2015, respectively. Accrued interest, which is included in other long-term liabilities, was approximately $952,000 as of March 31, 2016.

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Event	Note 6. Subsequent Event During April 2016, the Company raised net proceeds (net of commission) of approximately $948,000 from the sale of 730,048 shares of its common stock at a weighted average price of $1.34 per share in the open market through its Controlled Equity Offering SM SM In April 2016, the Company completed an underwritten public offering in which we sold an aggregate of 13.8 million shares of our common stock pursuant to an effective registration statement at a price to the public of $1.25. We received net proceeds of approximately $16.1 million after deducting underwriting discounts and commissions and offering expenses. As of May 2, 2016, the Company had up to $67.8 million of common stock available for sale under effective registration statement in addition to what is available under the Controlled Equity Offering program.

Summary of Significant Accoun12

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Nature of Operations	Nature of Operations DURECT Corporation (the Company) was incorporated in the state of Delaware on February 6, 1998. The Company is a biopharmaceutical company with research and development programs broadly falling into two categories: (i) new chemical entities derived from our Epigenomics Regulator Program, in which we attempt to discover and develop molecules which have not previously been approved and marketed as therapeutics, and (ii) Drug Delivery Programs, in which we apply our formulation expertise and technologies largely to active pharmaceutical ingredients whose safety and efficacy have previously been established but which we aim to improve in some manner through a new formulation. The Company has several products under development by itself and with third party collaborators. The Company also manufactures and sells osmotic pumps used in laboratory research, and designs, develops and manufactures a wide range of standard and custom biodegradable polymers and excipients for pharmaceutical and medical device clients for use as raw materials in their products. In addition, the Company conducts research and development of pharmaceutical products in collaboration with third party pharmaceutical and biotechnology companies.
Basis of Presentation	Basis of Presentation The accompanying unaudited financial statements include the accounts of the Company. These financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (SEC), and therefore do not include all the information and footnotes necessary for a complete presentation of the Company’s results of operations, financial position and cash flows in conformity with U.S. generally accepted accounting principles (U.S. GAAP). The unaudited financial statements reflect all adjustments (consisting only of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position at March 31, 2016, the operating results and comprehensive loss for the three months ended March 31, 2016 and 2015, and cash flows for the three months ended March 31, 2016 and 2015. The balance sheet as of December 31, 2015 has been derived from audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These financial statements and notes should be read in conjunction with the Company’s audited financial statements and notes thereto, included in the Company’s annual report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC. The results of operations for the interim periods presented are not necessarily indicative of results that may be expected for any other interim period or for the full fiscal year.
Inventories	Inventories Inventories are stated at the lower of cost or market, with cost determined on a first-in, first-out basis. Inventories, in part, include certain excipients that are sold to a customer and included in products awaiting regulatory approval. These inventories are capitalized based on management’s judgment of probable sale prior to their expiration date which in turn is primarily based on non-binding forecasts from our customers as well as management’s internal estimates. The valuation of inventory requires management to estimate the value of inventory that may become expired prior to use. The Company may be required to expense previously capitalized inventory costs upon a change in management’s judgment, due to, among other potential factors, a denial or delay of approval of a customer’s product by the necessary regulatory bodies, or new information that suggests that the inventory will not be saleable. In addition, these circumstances may cause the Company to record a liability related to minimum purchase agreements that the Company has in place for raw materials. In 2014, the Company recorded charges to cost of goods sold of approximately $1.6 million, of which approximately $1.1 million related to the write-down of the cost basis of inventory and $500,000 related to the accrual of a liability for the minimum purchase commitment for the excipients. As of March 31, 2016, the remaining carrying value of the excipients in the Company’s inventory was $1.2 million. In addition, the Company has remaining unrecorded future purchase commitments totaling $1.5 million through 2018. In the event that management determines that the Company will not utilize all of these materials, there could be a potential write-off related to this inventory and a reserve for future purchase commitments. The Company’s inventories consisted of the following (in thousands): March 31, December 31, (unaudited) Raw materials $ 1,168 $ 1,168 Work in process 1,415 1,412 Finished goods 1,424 1,337 Total inventories $ 4,007 $ 3,917
Revenue Recognition	Revenue Recognition Revenue from the sale of products is recognized when there is persuasive evidence that an arrangement exists, the product is shipped and title transfers to customers, provided no continuing obligation on the Company’s part exists, the price is fixed or determinable and the collectability of the amounts owed is reasonably assured. The Company enters into license and collaboration agreements under which it may receive upfront license fees, research funding and contingent milestone payments and royalties. The Company’s deliverables under these arrangements typically consist of granting licenses to intellectual property rights and providing research and development services. The accounting standards contain a presumption that separate contracts entered into at or near the same time with the same entity or related parties were negotiated as a package and should be evaluated as a single agreement.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Components of other comprehensive income (loss) are comprised entirely of unrealized gains and losses on the Company’s available-for-sale securities and marketable equity security for all periods presented. Total comprehensive loss has been disclosed in the Company’s Condensed Statements of Comprehensive Loss.
Net Income (Loss) Per Share	Net Income (Loss) Per Share Basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of common shares outstanding. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and common stock equivalents (i.e., options to purchase common stock) outstanding during the period, if dilutive, using the treasury stock method for options and warrants. Options to purchase approximately 20.4 million and 23.3 million shares of common stock were excluded from the denominator in the calculation of diluted net loss per share for the three months ended March 31, 2016 and 2015, respectively, as the effect would be anti-dilutive.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases In May 2014, the FASB issued guidance codified in ASC 606, Revenue Recognition—Revenue from Contracts with Customers, which amends the guidance in former ASC 605, Revenue Recognition. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The guidance provides companies with two implementation methods. Companies can choose to apply the standard retrospectively to each prior reporting period presented (full retrospective application) or retrospectively with the cumulative effect of initially applying the standard as an adjustment to the opening balance of retained earnings of the annual reporting period that includes the date of initial application (modified retrospective application). The standard was to have been effective for public entities for annual and interim periods beginning after December 15, 2016. In July 2015, the FASB voted to delay the effective date for this guidance. This guidance will be effective for the Company in the first quarter of 2018. The Company is currently evaluating the impact of the provisions of ASC 606. In August 2014, the FASB issued Accounting Standards Update 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (ASU 2014-15). This update is intended to define management’s responsibility to evaluate whether there is substantial doubt about an organization’s ability to continue as a going concern and to provide related footnote disclosures. ASU 2014-15 requires management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments: (1) provide a definition of the term substantial doubt; (2) require an evaluation every reporting period including interim periods; (3) provide principles for considering the mitigating effect of management’s plans; (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans; (5) require an express statement and other disclosures when substantial doubt is not alleviated; and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 will be effective for annual periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016, with early adoption permitted. ASU 2014-15 will be effective for the Company beginning with its annual report for fiscal 2016 and interim periods thereafter. The Company is currently evaluating the impact that ASU 2014-15 will have on its financial statements. In November 2015, the FASB issued Accounting Standards Update 2015-17(ASU 2015-17), Balance Sheet Classification of Deferred Taxes to simplify the presentation of deferred income taxes. The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. The new guidance will be effective for public business entities in fiscal years beginning after December 15, 2016, including interim periods within those years (i.e., in the first quarter of 2017 for calendar year-end companies). Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The guidance may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively (i.e., by reclassifying the comparative balance sheet). The Company has early adopted ASU 2015-17, on a prospective basis, for the year ended December 31, 2015.

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Summary of Components of Inventories	The Company’s inventories consisted of the following (in thousands): March 31, December 31, (unaudited) Raw materials $ 1,168 $ 1,168 Work in process 1,415 1,412 Finished goods 1,424 1,337 Total inventories $ 4,007 $ 3,917

Strategic Agreements (Tables)

Strategic Agreements (Tables)	3 Months Ended
	Mar. 31, 2016
Summary of Collaborative Research and Development and Other Revenues Associated with Company's Major Third-Party Collaborators	The collaborative research and development and other revenues associated with the Company’s major third-party collaborators are as follows (in thousands): Three months ended 2016 2015 Collaborator Zogenix, Inc. (Zogenix) (1) $ 246 $ 1,158 Santen Pharmaceutical Co. Ltd. (Santen) (2) 162 307 Pain Therapeutics, Inc. (Pain Therapeutics) 4 — Others 7 273 Total collaborative research and development and other revenue $ 419 $ 1,738 (1) Amounts related to ratable recognition of upfront fees were $52,000 and $64,000 for the three months ended March 31, 2016 and 2015, respectively. (2) Amounts related to ratable recognition of upfront fees were $57,000 and $71,000 for the three months ended March 31, 2016 and 2015, respectively.
Agreement with Zogenix, Inc. [Member]
Summary of Collaborative Research and Development Revenue Recognized	The following table provides a summary of collaborative research and development revenue recognized under the agreements with Zogenix (in thousands). The cumulative aggregate payments received by the Company as of March 31, 2016 were $19.7 million under these agreements. Three months ended 2016 2015 Ratable recognition of upfront payment $ 52 $ 64 Research and development expenses reimbursable by Zogenix 194 1,094 Total collaborative research and development revenue $ 246 $ 1,158
Agreement with Santen Pharmaceutical Co., Ltd. [Member]
Summary of Collaborative Research and Development Revenue Recognized	The following table provides a summary of collaborative research and development revenue recognized under the Santen Agreement (in thousands). Three months ended 2016 2015 Ratable recognition of upfront payment $ 57 $ 71 Research and development expenses reimbursable by Santen 105 236 Total collaborative research and development revenue $ 162 $ 307

Financial Instruments (Tables)

Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Summary of Money Market Funds and Available-for-Sale Securities	The following is a summary of available-for-sale securities as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 Amortized Unrealized Unrealized Estimated Money market funds $ 86 $ — $ — $ 86 Certificates of deposit 250 — — 250 Commercial paper 2,844 — — 2,844 Corporate debt 4,241 — (1 ) 4,240 U.S. Government agencies 14,570 6 (2 ) 14,574 $ 21,991 $ 6 $ (3 ) $ 21,994 Reported as: Cash and cash equivalents $ 1,563 $ — $ — $ 1,563 Short-term investments 20,178 6 (3 ) 20,181 Short-term restricted investments 100 — — 100 Long-term restricted investments 150 — — 150 $ 21,991 $ 6 $ (3 ) $ 21,994 December 31, 2015 Amortized Unrealized Unrealized Estimated Money market funds $ 81 $ — $ — $ 81 Certificates of deposit 250 — — 250 Commercial paper 898 — — 898 Corporate debt 5,215 1 (5 ) 5,211 U.S. Government agencies 19,558 1 (11 ) 19,548 $ 26,002 $ 2 $ (16 ) $ 25,988 Reported as: Cash and cash equivalents $ 281 $ — $ — $ 281 Short-term investments 25,471 2 (16 ) 25,457 Long-term restricted investments 250 — — 250 $ 26,002 $ 2 $ (16 ) $ 25,988
Summary of Cost and Estimated Fair Value of Available-for-Sale Securities by Contractual Maturity	The following is a summary of the cost and estimated fair value of available-for-sale securities at March 31, 2016, by contractual maturity (in thousands): March 31, 2016 Amortized Estimated Mature in one year or less $ 21,905 $ 21,908 Mature after one year through five years — — $ 21,905 $ 21,908

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock-Based Compensation Cost that has been Included in Statements of Comprehensive Loss	As of March 31, 2016, the Company had three stock-based compensation plans. The stock-based compensation cost that has been included in the statements of comprehensive loss is shown as below (in thousands): Three months ended 2016 2015 Cost of product revenues $ 27 $ 29 Research and development 353 351 Selling, general and administrative 330 270 Total stock-based compensation $ 710 $ 650
Summary of Assumptions Used to Estimate Fair Value of Options Granted and Shares Purchased	The Company used the following assumptions to estimate the fair value of stock options granted (including fully vested options issued in January 2016 and 2015) and shares purchased under its employee stock purchase plan for the three months ended March 31, 2016 and 2015: Stock Options Employee Stock Three months ended Three months ended 2016 2015 2016 2015 Risk-free rate 1.6-1.9% 1.4-2.0% 0.3% 0.1% Expected dividend yield — — — — Expected life of option (in years) 6.5-9.3 6.5-10.0 0.5 0.5 Volatility 77-83% 78-85% 68% 95% Forfeiture rate 4.2% 6.0% — —

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of Future Maturities and Interest Payments under Term Loan	Future maturities and interest payments under the term loan as of March 31, 2016, are as follows (in thousands): Nine months ended December 31, 2016 $ 1,193 2017 8,848 2018 8,848 2019 6,424 Total minimum payments 25,313 Less amount representing interest (5,313 ) Gross balance of long-term debt 20,000 Less unamortized debt discount (282 ) Carrying value of long-term debt 19,718 Less current portion of long-term debt (1,826 ) Long-term debt, less current portion and unamortized debt discount $ 17,892

Summary of Significant Accoun18

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) shares in Millions	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2015
Summary Of Significant Accounting Policies [Line Items]
State of incorporation	Delaware
Date of incorporation	Feb. 6, 1998
Cost of goods sold	$ 1,242,000	$ 1,006,000
Inventories	$ 4,007,000			$ 3,917,000
Options to purchase common stock excluded from computation of diluted net loss per share	20.4	23.3
Agreement with Pain Therapeutics, Inc. [Member]
Summary Of Significant Accounting Policies [Line Items]
Cost of goods sold			$ 1,600,000
Write-down of the cost basis of inventory			1,100,000
Minimum purchase commitment			$ 500,000
Inventories	$ 1,200,000
Remaining unrecorded future purchase commitments	$ 1,500,000

Summary of Significant Accoun19

Summary of Significant Accounting Policies - Summary of Components of Inventories (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Inventory, Net [Abstract]
Raw materials	$ 1,168	$ 1,168
Work in process	1,415	1,412
Finished goods	1,424	1,337
Total inventories	$ 4,007	$ 3,917

Strategic Agreements - Summary

Strategic Agreements - Summary of Collaborative Research and Development and Other Revenues Associated with Company's Major Third-Party Collaborators (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	$ 419	$ 1,738
Agreement with Zogenix, Inc. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	246	1,158
Agreement with Santen Pharmaceutical Co., Ltd. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	162	307
Agreement with Pain Therapeutics, Inc. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	4	0
Agreements With Other Third Party Collaborators [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue	$ 7	$ 273

Strategic Agreements - Summar21

Strategic Agreements - Summary of Collaborative Research and Development and Other Revenues Associated with Company's Major Third-Party Collaborators (Parenthetical) (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Agreement with Zogenix, Inc. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Amounts related to the ratable recognition of upfront fees	$ 52,000	$ 64,000
Agreement with Santen Pharmaceutical Co., Ltd. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Amounts related to the ratable recognition of upfront fees	$ 57,000	$ 71,000

Strategic Agreements - Agreemen

Strategic Agreements - Agreement with Pain Therapeutics, Inc. - Additional Information (Detail)	1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 31, 2002Drug	Mar. 31, 2016USD ($)DrugLicense	Mar. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue		$ 419,000	$ 1,738,000
Product revenue, net		3,189,000	3,035,000
Cost of goods sold		$ 1,242,000	1,006,000
Agreement with Pain Therapeutics, Inc. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Number of specified opioid drugs | Drug	4	3
Total collaborative research and development and other revenue		$ 4,000	0
Number of remaining licensed products | License		3
Performance milestone payments based on successful development		$ 7,200,000
Cumulative aggregate payments received by the Company		39,000,000
Upfront license fee		1,000,000
Cost of goods sold				$ 1,600,000
Agreement with Pain Therapeutics, Inc. [Member] | Development-Based Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Performance milestone payments based on successful development		7,200,000
Revenue recognition milestone achieved		1,700,000
Agreement with Pain Therapeutics, Inc. [Member] | Sales-Based Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Performance milestone payments based on successful development		0
Agreement with Pfizer [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development and other revenue		0	0
Cumulative aggregate payments received by the Company		7,100,000
Product revenue, net		279,000	96,000
Cost of goods sold		$ 124,000	$ 51,000

Strategic Agreements - Agreem23

Strategic Agreements - Agreement with Zogenix, Inc. - Additional Information (Detail) - Agreement with Zogenix, Inc. [Member] - USD ($)	1 Months Ended	3 Months Ended
	Jul. 31, 2011	Mar. 31, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Future milestone payments		$ 103,000,000
Patent royalty term		15 years
Cumulative aggregate payments received by the Company		$ 19,700,000
Development-Based Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Future milestone payments		28,000,000
Revenue recognition milestone achieved		0
Sales-Based Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Future milestone payments		75,000,000
Revenue recognition milestone achieved		0
Up-front Payment Arrangement [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Non-refundable upfront fee	$ 2,250,000	$ 2,250,000

Strategic Agreements - Summar24

Strategic Agreements - Summary of Collaborative Research and Development Revenue Recognized (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Total collaborative research and development revenue	$ 419,000	$ 1,738,000
Agreement with Zogenix, Inc. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Ratable recognition of upfront payment	52,000	64,000
Research and development expenses reimbursable by the Company	194,000	1,094,000
Total collaborative research and development revenue	246,000	1,158,000
Agreement with Santen Pharmaceutical Co., Ltd. [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Ratable recognition of upfront payment	57,000	71,000
Research and development expenses reimbursable by the Company	105,000	236,000
Total collaborative research and development revenue	$ 162,000	$ 307,000

Strategic Agreements - Agreem25

Strategic Agreements - Agreement with Santen Pharmaceutical Co., Ltd. - Additional Information (Detail) - Agreement with Santen Pharmaceutical Co., Ltd. [Member] - USD ($)	Dec. 11, 2014	Mar. 31, 2016
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Upfront license fee	$ 2,000,000
Future milestone payments	76,000,000
Cumulative aggregate payments received by the Company		$ 2,700,000
Development-Based Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Future milestone payments	13,000,000
Commercialization-Based Milestones [Member]
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items]
Future milestone payments	$ 63,000,000
Revenue recognition milestone achieved		$ 0

Financial Instruments - Summary

Financial Instruments - Summary of Money Market Funds and Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 21,991	$ 26,002
Unrealized Gain	6	2
Unrealized Loss	(3)	(16)
Estimated Fair Value	21,994	25,988
Money market funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	86	81
Estimated Fair Value	86	81
Certificates of deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	250	250
Estimated Fair Value	250	250
Commercial paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,844	898
Estimated Fair Value	2,844	898
Corporate debt [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	4,241	5,215
Unrealized Gain		1
Unrealized Loss	(1)	(5)
Estimated Fair Value	4,240	5,211
U.S. Government agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	14,570	19,558
Unrealized Gain	6	1
Unrealized Loss	(2)	(11)
Estimated Fair Value	14,574	19,548
Cash and cash equivalents [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,563	281
Estimated Fair Value	1,563	281
Short-term investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	20,178	25,471
Unrealized Gain	6	2
Unrealized Loss	(3)	(16)
Estimated Fair Value	20,181	25,457
Short-term restricted investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	100
Estimated Fair Value	100
Long-term restricted investments [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	150	250
Estimated Fair Value	$ 150	$ 250

Financial Instruments - Summa27

Financial Instruments - Summary of Cost and Estimated Fair Value of Available-for-Sale Securities by Contractual Maturity (Detail) $ in Thousands	Mar. 31, 2016USD ($)
Investments, Debt and Equity Securities [Abstract]
Mature in one year or less, Amortized Cost	$ 21,905
Mature after one year through five years, Amortized Cost	0
Amortized Cost	21,905
Mature in one year or less, Estimated Fair Value	21,908
Mature after one year through five years, Estimated Fair Value	0
Estimated Fair Value	$ 21,908

Financial Instruments - Additio

Financial Instruments - Additional Information (Detail)	Mar. 31, 2016USD ($)
Investments, Debt and Equity Securities [Abstract]
Unrealized loss of securities	$ 0

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock-Based Compensation Cost that has been Included in Statements of Comprehensive Loss (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation cost	$ 710	$ 650
Cost of product revenues [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation cost	27	29
Research and development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation cost	353	351
Selling, general and administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation cost	$ 330	$ 270

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation cost capitalized in inventory	$ 15,000	$ 13,000

Stock-Based Compensation - Su31

Stock-Based Compensation - Summary of Assumptions Used to Estimate Fair Value of Options Granted and Shares Purchased (Detail)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employees Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate	0.30%	0.10%
Expected dividend yield	0.00%	0.00%
Expected life of option (in years)	6 months	6 months
Volatility	68.00%	95.00%
Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free rate, minimum	1.60%	1.40%
Risk-free rate, maximum	1.90%	2.00%
Expected dividend yield	0.00%	0.00%
Volatility, minimum	77.00%	78.00%
Volatility, maximum	83.00%	85.00%
Forfeiture rate	4.20%	6.00%
Stock Option Plan [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of option (in years)	6 years 6 months	6 years 6 months
Stock Option Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected life of option (in years)	9 years 3 months 18 days	10 years

Long-Term Debt - Additional Inf

Long-Term Debt - Additional Information (Detail) - USD ($)	Jun. 26, 2014	Jul. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Debt Instrument [Line Items]
Loan modification fee		$ 240,000
Oxford Finance LLC Term Loan [Member]
Debt Instrument [Line Items]
Secured term loan	$ 20,000,000
Term loan, maturity date		Jul. 1, 2019	Jul. 1, 2018
Interest rate on term loan	7.95%
Percentage of an additional payment equal to principal amount	8.00%	10.00%	8.00%
Facility fee paid at final payment	$ 150,000
Term loan repayment description			The term loan repayment schedule provides for interest only payments for the first 18 months, followed by consecutive equal monthly payments of principal and interest in arrears starting on February 1, 2016
Proceeds from long term debt, net	19,800,000
Debt offering/issuance costs	$ 1,600,000
First principal payment date		Feb. 1, 2017	Feb. 1, 2016
Debt instrument, covenants in compliance			The Company was in compliance with all material covenants under the Loan Agreement and there had been no material adverse change.
Interest expense			$ 557,000	$ 557,000
Accrued interest			$ 952,000
Oxford Finance LLC Term Loan [Member] | Minimum [Member]
Debt Instrument [Line Items]
Percentage of prepayment fee	1.00%
Oxford Finance LLC Term Loan [Member] | Maximum [Member]
Debt Instrument [Line Items]
Percentage of prepayment fee	3.00%

Long-Term Debt - Schedule of Fu

Long-Term Debt - Schedule of Future Maturities and Interest Payments under Term Loan (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Future maturities and interest payments under the term loan:
Nine months ended December 31, 2016	$ 1,193
2,017	8,848
2,018	8,848
2,019	6,424
Total minimum payments	25,313
Total minimum payments	25,313
Less amount representing interest	(5,313)
Gross balance of long-term debt	20,000
Gross balance of long-term debt	20,000
Less unamortized debt discount	(282)
Carrying value of long-term debt	19,718
Carrying value of long-term debt:
Carrying value of long-term debt	19,718
Less current portion of long-term debt	(1,826)
Long-term debt, less current portion and unamortized debt discount	$ 17,892	$ 19,684

Subsequent Event - Additional I

Subsequent Event - Additional Information (Detail) - USD ($)	1 Months Ended	3 Months Ended
	Apr. 30, 2016	Mar. 31, 2016	Mar. 31, 2015	May. 02, 2016
Subsequent Event [Line Items]
Proceeds from sale of common stock, net of commission		$ 1,326,000	$ 242,000
Subsequent event [Member]
Subsequent Event [Line Items]
Proceeds from sale of common stock, net of commission	$ 948,000
Sale of common stock during period	730,048
Common stock weighted average price	$ 1.34
Subsequent event [Member] | Underwritten Public Offering [Member]
Subsequent Event [Line Items]
Proceeds from sale of common stock, net of commission	$ 16,100,000
Sale of common stock during period	13.8
Public offering price for common stock	$ 1.25
Subsequent event [Member] | Underwritten Public Offering [Member] | Maximum [Member]
Subsequent Event [Line Items]
Common stock available for sale under effective registration statement				$ 67,800,000
Subsequent event [Member] | Cantor Fitzgerald Co [Member]
Subsequent Event [Line Items]
Common stock available for sale under effective registration statement				$ 35,700,000